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<p>U.S. Border Patrol, San Diego, Calif. / AP</p>
<p>BY: <a href="" type="internal">Mary Lou Lang</a> March 18, 2013 4:59 am</p>
<p>The recent release of illegal immigrants in detention, the Obama administration’s renewed push for amnesty, and the planned furlough of thousands of border patrol agents will result in more illegal crossings, immigration experts and border officials say.</p>
<p>"It’s the perfect storm," said Stuart Harris, the vice president of Local 1929 of the National Border Patrol Council in El Paso, Texas.</p>
<p>The planned furloughs of border patrol guards and the push for immigration reform has now given illegal immigrants the perfect opportunity to come across the border, he said.</p>
<p>"Now’s the time to do it," Harris said.</p>
<p>Jessica Vaughan, director of policy studies at the nonpartisan Center for Immigration Studies, agreed.</p>
<p>"It’s a giant catch and release program," she said. "Why go through the expense of applying for a visa, when you can get turned down?"</p>
<p>Instead, said Vaughan,&#160;if you come here illegally, "you’ll get processed and get released and the worst that will happen to you is you will be turned back to Mexico."</p>
<p>The recent release of more than 2,200 illegal immigrants from detention centers sends a clear message that illegal immigrants will not be detained.</p>
<p>Immigration and Customs Enforcement’s (ICE) release of detainees would be communicated back to friends and family in Mexico.</p>
<p>"They send word back," Vaughan said. "Our policy decisions make people think they have much to gain and it is easy to get in."</p>
<p>Agents on the ground are already seeing an increase. Harris, who spoke to the Washington Free Beacon as a union representative, is also an agent. He said he has seen an "increase in illegals coming through the border recently."</p>
<p>In addition to those of Mexican descent, he said, there has been a "significant increase in OTMs [Other Than Mexican]."</p>
<p>Tucson, Ariz., has also experienced an increase in illegal immigration, locals say.</p>
<p>"As of the announcement being made that amnesty is on the horizon, that has raised the amount of illegals," said Art Del Cueto, president of the Local 2544 Border Patrol Union.</p>
<p>"Agents are announcing a much higher amount of illegals, and there a higher amount of violence on the border," Del Cueto said.</p>
<p>He went on to explain the conditions in his region. "The people cross dangerous terrain," he said, and "there are border bandits who attack children and rape women."</p>
<p>Cuts to border patrol could put the immigrants themselves at risk.</p>
<p>"Less security will also mean more people will die in the desert," Del Cueto said. "These people cross with their children, with their newborn babies."</p>
<p>"[After three to four hours in the desert,] some turn themselves into us, saying they need food and water," he said. "You’re going to see a lot more deaths in the desert."</p>
<p>The Department of Homeland Security’s Customs and Border Protection (CBP) has targeted border patrol agents for cuts. Border agents are facing furloughs beginning early next month of 14 days and major cuts in overtime. Union representatives say they are facing a 40 percent cut in pay due to furlough days and overtime cuts.</p>
<p>A Customs and Border Protection spokesman said in an email to the Free Beacon that they are trying to minimize the effects of the more than half a billion dollars in budget cuts due to sequestration and will "make every effort to minimize the sequester’s impact on public safety and national security."</p>
<p>"Even with these cuts, though, individuals apprehended illegally crossing the southwest border will still be processed as usual," a CBP spokesman said.</p>
<p>The CBP believes it can do more with less.</p>
<p>"Significant border-wide investments in additional enforcement resources and enhanced operational tactics and strategy have enabled CBP to address the changing composition of attempted border crossers, and maintain border security," the spokesman said in a statement.</p>
<p>A recent <a href="http://www.themonitor.com/news/local/article_ac516f36-85c0-11e2-b506-001a4bcf6878.html#user-comment-area" type="external">report</a> indicated that some illegal immigrants were actually turning themselves into patrol agents, knowing they would not be detained.</p>
<p>Harris confirmed those reports and said he was aware of 1,000 apprehensions in the McAllen, Texas, station last weekend, many of whom turned themselves over to agents knowing they would not be detained.</p>
<p>Vaughn said this has happened in the past.</p>
<p>"I do know from having watched over the years, I have seen this phenomenon before," she said.</p>
<p>When visa restrictions were eased on Brazilians by Mexico in 2005 a large influx of Brazilians came through Mexico into the U.S., she said.</p>
<p>"After arriving at either the border patrol stations or approaching the agents in the field, they said, I’m here, arrest me."</p>
<p>Government <a href="http://www.cbp.gov/linkhandler/cgov/border_security/border_patrol/usbp_statistics/usbp_fy12_stats/appr_otm.ctt/appr_otm.pdf" type="external">statistics</a> show that in 2005 there was a huge spike in apprehensions of illegal immigrants from the previous year. In some regions, such as the Rio Grande Valley and the Del Rio, the number of illegal immigrant apprehensions tripled.</p>
<p>Vaughn said the policy was for people not from Mexico to be released pending a hearing date, then "they would just disappear" and not be found.</p>
<p>History may soon repeat itself, as that policy of releasing OTMs on their own recognizance is increasing.</p>
<p>"The problem is that people are coming from different countries expecting to be released with no intention of reporting for their court dates," Harris said.</p>
<p>"They then will migrate to the interior of the United States where immigration enforcement is virtually nonexistent, with the intention of living out their lives until such time as immigration reform is passed, and they can get some sort of paperwork that allows them to be here legally."</p>
<p>"We have no way of checking criminal history in foreign countries," Harris said. "Essentially, we could be releasing very bad people into the general population of the U.S. with no hope of ever finding them again. … With the increase in illegal immigration, gangs are seeing more money, as are the drug cartels. None of this is in any way beneficial to the American public or to national security."</p>
<p>"It’s amazing that we’ve forgotten all the problems since 9/11," Del Cueto said. "We’re the first line of defense of this country, and we’re getting slapped in the face by our leaders. We’re being used as political pawns so politicians can further their careers."</p> | true | 0 | us border patrol san diego calif ap mary lou lang march 18 2013 459 recent release illegal immigrants detention obama administrations renewed push amnesty planned furlough thousands border patrol agents result illegal crossings immigration experts border officials say perfect storm said stuart harris vice president local 1929 national border patrol council el paso texas planned furloughs border patrol guards push immigration reform given illegal immigrants perfect opportunity come across border said nows time harris said jessica vaughan director policy studies nonpartisan center immigration studies agreed giant catch release program said go expense applying visa get turned instead said vaughan160if come illegally youll get processed get released worst happen turned back mexico recent release 2200 illegal immigrants detention centers sends clear message illegal immigrants detained immigration customs enforcements ice release detainees would communicated back friends family mexico send word back vaughan said policy decisions make people think much gain easy get agents ground already seeing increase harris spoke washington free beacon union representative also agent said seen increase illegals coming border recently addition mexican descent said significant increase otms mexican tucson ariz also experienced increase illegal immigration locals say announcement made amnesty horizon raised amount illegals said art del cueto president local 2544 border patrol union agents announcing much higher amount illegals higher amount violence border del cueto said went explain conditions region people cross dangerous terrain said border bandits attack children rape women cuts border patrol could put immigrants risk less security also mean people die desert del cueto said people cross children newborn babies three four hours desert turn us saying need food water said youre going see lot deaths desert department homeland securitys customs border protection cbp targeted border patrol agents cuts border agents facing furloughs beginning early next month 14 days major cuts overtime union representatives say facing 40 percent cut pay due furlough days overtime cuts customs border protection spokesman said email free beacon trying minimize effects half billion dollars budget cuts due sequestration make every effort minimize sequesters impact public safety national security even cuts though individuals apprehended illegally crossing southwest border still processed usual cbp spokesman said cbp believes less significant borderwide investments additional enforcement resources enhanced operational tactics strategy enabled cbp address changing composition attempted border crossers maintain border security spokesman said statement recent report indicated illegal immigrants actually turning patrol agents knowing would detained harris confirmed reports said aware 1000 apprehensions mcallen texas station last weekend many turned agents knowing would detained vaughn said happened past know watched years seen phenomenon said visa restrictions eased brazilians mexico 2005 large influx brazilians came mexico us said arriving either border patrol stations approaching agents field said im arrest government statistics show 2005 huge spike apprehensions illegal immigrants previous year regions rio grande valley del rio number illegal immigrant apprehensions tripled vaughn said policy people mexico released pending hearing date would disappear found history may soon repeat policy releasing otms recognizance increasing problem people coming different countries expecting released intention reporting court dates harris said migrate interior united states immigration enforcement virtually nonexistent intention living lives time immigration reform passed get sort paperwork allows legally way checking criminal history foreign countries harris said essentially could releasing bad people general population us hope ever finding increase illegal immigration gangs seeing money drug cartels none way beneficial american public national security amazing weve forgotten problems since 911 del cueto said first line defense country getting slapped face leaders used political pawns politicians careers | 576 |
<p>Shark Tank has obtained documents that shed further light on the outrageous hostage-taking of a Jacksonville, Florida company’s power plant by an Australian bank.</p>
<p>As we’ve previously reported, Jacksonville-based APR Energy had tens of millions of dollars in power generation equipment seized by ANZ Bank under an unusual and obscure Australian law that favors Australians called the Personal Property Securities Act (PPSA).&#160; The PPSA among other things, transfers the ownership of items that are leased to the creditors of the lessor if the lessor files for bankruptcy. It creates a situation as absurd as someone in the US leasing a car, filing for bankruptcy, and having the creditors of that bankrupt person get to keep the car.&#160; What?</p>
<p>While this dispute has been ongoing for years, prominent Florida Republicans – such as Jacksonville Mayor Lenny Curry – have begun speaking out on the issue, believing that President Trump might act to help a US business in a way that Obama never would.</p>
<p>A letter from the Australian government to APR’s lawyers crystallizes the urgency of executive action.</p>
<p>John Reid, First Assistant Secretary in Australia’s Office of International Law, responded to a letter from APR Energy in November 2016 that accused Australia of violating the terms of the Australia-US Free Trade Agreement (AUSFTA) in its handling of the APR-ANZ dispute. In the response, Mr. Reid tersely dispenses with the very premise that APR has any recourse under AUSFTA.</p>
<p>Mr. Reid writes, “The Australian government does not consider that APR Energy has jurisdiction to bring a dispute under AUSFTA…in relation to this matter.” He goes on to say that Australia has “complied with its obligations under AUSFTA” and then essentially tells APR that this is their own fault and to deal with it.</p>
<p><a href="" type="internal">Click here to read Reid’s letter</a></p>
<p>Here’s the kicker: The vague wording of the dispute resolution provisions of the AUSFTA—the product of poor negotiation on the part of the United States–permits Reid to make such an outrageous and unsupported statement.&#160; Reid tips the hand of Australia, indicating that it will seek to bleed APR through strong opposition to resolution of the dispute through arbitration, with full knowledge of the high legal fees APR will incur to overcome Australia’s unprincipled objections to jurisdiction.</p>
<p>Reid’s claim of no jurisdiction could only be made for claims raised by United States and Malaysian investors.&#160; Australia has Free Trade Agreements (FTAs) in place with eight nations (including the US) and bilateral investment treaties (BITs) with twenty-one others. Twenty-seven of the twenty-nine agreements establish unequivocal consent by Australia to submit to arbitration of claims with foreign investors.&#160; Only two make the path to consent more circuitous and expensive.&#160; One of those agreements is the AUSFTA, the other is with Malaysia.</p>
<p>In addition, of the nearly 60 FTAs and BITs to which the US is a party, Australia’s is one of the very few that deviates from the express consent model embodied in the state practice of the United States.&#160; For example, Canada has consented to arbitration with United States investors as the forum for resolution of foreign investment claims brought against it by United States investors.&#160; The United States-Singapore FTA has a similar provision, as well as United States FTAs with South Korea.</p>
<p>However, under the terms of AUSFTA, US business interests do have recourse to direct intervention by the United States in a dispute.&#160; The United States government can negotiate a more reasonable dispute resolution procedure for APR or even make APR’s claim directly against the Australian government.</p>
<p>Strategist and Trump confidante, Roger Stone, tells Shark Tank that, “this is a prime example of the kind of terrible trade deal that President Trump was elected to renegotiate. Australia has many trading partners, but the US is one of only two not directly offered legal rights under the agreement in the case of asset seizures like what’s happened to APR.”</p>
<p>Stone, like Mayor Curry, has been trying to bring the plight of APR – and potentially any US company doing business in Australia – to the attention of the President.</p>
<p>Steve List, APR’s General Counsel &amp; Chief Compliance Officer, described the company’s plight in stark terms, “The government of Australia, though financial institutions like ANZ bank, are undermining the AUSFTA, and hurting American companies, American jobs and American families. That is why we have asked Florida’s Governor Scott, who is a Republican and who is close to the President, to call the President and let him know how disruptive this policy has been for companies like ours.”</p>
<p>In addition to APR’s outreach efforts through Mayor Curry and Governor Scott, numerous other influential stakeholders have weighed in on behalf of the company.</p>
<p>“We have been working with members of Congress and other officials, who have already expressed their displeasure with this unfair business practice, and with dozens of other businesses and chambers of commerce across the country, who have contacted the office of Australia’s Attorney General to let him know that the PPSA will only further erode the US-Australia business partnership,” said Mr. List.</p>
<p>Indeed, they have, and through bipartisan efforts. Sens. Nelson and Rubio have both sent letters to US and Australian officials expressing their concerns about the treatment of this Florida company. And Reps. Curbelo and Murphy penned a joint letter to the US Trade Representative to the same effect in the Fall of 2015. Congressmen Curbelo and Alex Mooney (WV) likewise took the issue to the floor of the US House last summer, and expressed outrage at the disadvantage that Australian law places US businesses.</p>
<p>All of APR’s efforts – and the efforts of American elected officials, civic and business organizations – have been fruitless thus far. The robber barons at ANZ Bank have the protective veneer of this outrageous and parochial Australian law (the PPSA) to justify and maintain their continued extortion of APR. The Australian government itself – which holds “most favored nation” status as a US trading partner – is now on the record as telling APR that they have no recourse under our trade deal.</p>
<p>The silver bullet for this debacle is President Trump.&#160; We hope that he will see the sheer obscenity of what’s been happening and come to the rescue of this Florida company. APR would like to see the President “Make AUSFTA great again,” and any US interest that transacts business Down Under should be watching with bated breath for the outcome.&#160; The AUSFTA gives the President this power, and we hope that he will not hesitate to use it.</p> | true | 0 | shark tank obtained documents shed light outrageous hostagetaking jacksonville florida companys power plant australian bank weve previously reported jacksonvillebased apr energy tens millions dollars power generation equipment seized anz bank unusual obscure australian law favors australians called personal property securities act ppsa160 ppsa among things transfers ownership items leased creditors lessor lessor files bankruptcy creates situation absurd someone us leasing car filing bankruptcy creditors bankrupt person get keep car160 dispute ongoing years prominent florida republicans jacksonville mayor lenny curry begun speaking issue believing president trump might act help us business way obama never would letter australian government aprs lawyers crystallizes urgency executive action john reid first assistant secretary australias office international law responded letter apr energy november 2016 accused australia violating terms australiaus free trade agreement ausfta handling apranz dispute response mr reid tersely dispenses premise apr recourse ausfta mr reid writes australian government consider apr energy jurisdiction bring dispute ausftain relation matter goes say australia complied obligations ausfta essentially tells apr fault deal click read reids letter heres kicker vague wording dispute resolution provisions ausftathe product poor negotiation part united statespermits reid make outrageous unsupported statement160 reid tips hand australia indicating seek bleed apr strong opposition resolution dispute arbitration full knowledge high legal fees apr incur overcome australias unprincipled objections jurisdiction reids claim jurisdiction could made claims raised united states malaysian investors160 australia free trade agreements ftas place eight nations including us bilateral investment treaties bits twentyone others twentyseven twentynine agreements establish unequivocal consent australia submit arbitration claims foreign investors160 two make path consent circuitous expensive160 one agreements ausfta malaysia addition nearly 60 ftas bits us party australias one deviates express consent model embodied state practice united states160 example canada consented arbitration united states investors forum resolution foreign investment claims brought united states investors160 united statessingapore fta similar provision well united states ftas south korea however terms ausfta us business interests recourse direct intervention united states dispute160 united states government negotiate reasonable dispute resolution procedure apr even make aprs claim directly australian government strategist trump confidante roger stone tells shark tank prime example kind terrible trade deal president trump elected renegotiate australia many trading partners us one two directly offered legal rights agreement case asset seizures like whats happened apr stone like mayor curry trying bring plight apr potentially us company business australia attention president steve list aprs general counsel amp chief compliance officer described companys plight stark terms government australia though financial institutions like anz bank undermining ausfta hurting american companies american jobs american families asked floridas governor scott republican close president call president let know disruptive policy companies like addition aprs outreach efforts mayor curry governor scott numerous influential stakeholders weighed behalf company working members congress officials already expressed displeasure unfair business practice dozens businesses chambers commerce across country contacted office australias attorney general let know ppsa erode usaustralia business partnership said mr list indeed bipartisan efforts sens nelson rubio sent letters us australian officials expressing concerns treatment florida company reps curbelo murphy penned joint letter us trade representative effect fall 2015 congressmen curbelo alex mooney wv likewise took issue floor us house last summer expressed outrage disadvantage australian law places us businesses aprs efforts efforts american elected officials civic business organizations fruitless thus far robber barons anz bank protective veneer outrageous parochial australian law ppsa justify maintain continued extortion apr australian government holds favored nation status us trading partner record telling apr recourse trade deal silver bullet debacle president trump160 hope see sheer obscenity whats happening come rescue florida company apr would like see president make ausfta great us interest transacts business watching bated breath outcome160 ausfta gives president power hope hesitate use | 607 |
<p>In this episode of Motley Fool Money,Chris Hill, Jason Moser, Matt Argersinger, and David Kretzmann run down the big earnings reports from the likes of Walt Disney (NYSE: DIS), Twitter (NYSE: TWTR), Activision Blizzard (NASDAQ: ATVI), Hasbro (NASDAQ: HAS), Nvidia (NASDAQ: NVDA), and more. But while many of these companies reported upbeat or downright incredible results, the news was not all good.</p>
<p>A full transcript follows the video.</p>
<p>Continue Reading Below</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>This podcast was recorded on Feb. 10, 2017.</p>
<p>Chris Hill: It's The Motley Fool Radio Show. I'm Chris Hill and joining me in studio this week from Motley Fool Supernova, David Kretzmann, and from Million Dollar Portfolio, Jason Moser, and Matt Argersinger. Good to see you as always, gentlemen.</p>
<p>All: Hey, hey, Chris.</p>
<p>Hill: We've got the latest earnings from Wall Street and we'll talk with best-selling author, Beth Kobliner, and as always we'll give you an inside look at the stocks on our radar, but we begin this week with the Magic Kingdom. Walt Disney's first quarter profits came in higher than expected. Revenue was a little light though. David, I'll start with you. The ESPN narrative that we've seen the last few quarters continues, even though the parks and resorts are really kind of getting it done.</p>
<p>David Kretzmann: Beating a dead horse there. It's kind of Wall Street style with Disney at this point when it comes to ESPN but last quarter management set expectations for 2017. The company's going up against a very tough comparison largely due to the success of Star Wars: The Force Awakens last year which globally topped $2 billion at the box office. Rogue One, you know, came out in December. Did great. It hit a billion dollars but that's half of what Force Awakens brought, which is a great problem to have but still a problem.</p>
<p>Hill: I think you mean "only" a billion.</p>
<p>Kretzmann: Right. Only a billion. At this point that's a low mark for Disney. But all in all I think the quarter was good. You did see revenue down 3%. Operating income down 7%. But like you said, the parks and resorts segment you saw sales up 6%, operating income up 13%, Shanghai Disney Land is expected to break even this year. A lot of things to look forward to with Disney across all these different segments.</p>
<p>MattArgersinger: That is the beauty of the company, right? It's got its hands in so many of the premiere entertainment properties in the world and so when one's kind of down, and it's hard to call the studio business down when you've got a billion-dollar film come in, but when one's down, the others can pick it up and it's an extraordinary company and consistent.</p>
<p>Jason Moser: So would you say when Disney has a flop it's a little bit easier for them to . . . let it go?</p>
<p>Kretzmann: Oh, man. I would expect that with Simon . . .</p>
<p>Hill: I expect puns from Simon but . . .</p>
<p>Argersinger: Looked a little forced, Jason, looked a little forced, but it's good stuff.</p>
<p>Hill: Jason, we saw this story before the earnings report came out and it got confirmed by the man himself, this idea that Bob Iger who is due to leave the CEO office in June of 2018, may stay on a little longer. He has said, "I'm going to do what's best for the company. I'm going to listen to the Board." If you had to bet right now, do you think he stays on a little bit longer? Because it feels like the window for him to put someone in place is closing pretty quickly.</p>
<p>Moser: I think, yes, and the reason why I say that is many-fold honestly but I mean, I think this is going to be perhaps the most important transition of power for this company in many, many years to come. And I think that with all of the success that Mr. Iger has had to this point, and we were talking about this before taping, Wall Street is very persistent about this ESPN question and until he can really firmly I think and successfully answer it and really show the path to success with that, I think he wants to be able to do that and we're seeing the signs there. I mean, the Hulu relationship that's getting ready to launch additional over-the-top opportunities, all of the investment and time spent with BAMTech, I think there are seeds there that are starting to show some green shoots but I do think that Iger would love to be able to really prove that out.</p>
<p>So to give him a little bit more time, he seems to enjoy what he's doing and he does it really well and typically when you have that combination it's almost like you're not working anyways so I suspect for him he's just having a really good time doing what he's doing and I think shareholders wouldn't mind seeing him stick around.</p>
<p>Kretzmann: When you look at that media network segment, you really do need to keep it in perspective. I think this conference call, we saw Bob Iger and company talk about digital media, BAMTech more than they have in previous calls so that's clearly where their attention is focused and they're not being caught off guard with this transition from traditional cable bundles to digital streaming.</p>
<p>But when you look over the past five years, Disney is becoming increasingly diversified to Matty's point so when you go back to 2011, the media network segment made up 70% of Disney's total operating income. Last year it made up less than 50% so the company is growing and in the process becoming more diversified so I think if you're only focused on ESPN, you're overlooking a very quality and increasingly quality business.</p>
<p>Hill: Shares of Twitter falling more than 15% on Thursday and Friday in the wake of a fourth quarter report that was disappointing to say the least, Jason. Revenue was not only light, it was the slowest growth they've seen since they've gone public.</p>
<p>Moser: Yeah and I told Mac on Market Foolery, I think the Twitter investor relations feed needs to change their avatar on their Twitter feed back to the Twitter egg because these guys just lay egg quarter after quarter after quarter on the earnings side and they continue just to disappoint. It seems to be as regular as the sun coming up almost. But I do think that for all of their shortcomings and I've been extremely critical of a company that I was very bullish on for a long time, I'd say I'm still quasi-bullish. I mean, it's hard for me to imagine a world without Twitter. I mean, I think it does really serve a very important purpose, but I think it's been a very poorly run business for a long period of time.</p>
<p>There is maybe a little light at the end of the tunnel. I think you saw modest growth in users but I think more importantly you saw the third consecutive quarter of accelerating growth in daily active users and I think for something like Twitter, that speaks volumes because it is that type of a platform where more or less the users are using it and checking in on a daily basis. That's a sign that engagement is improving and engagement really is going to be something born of all of the new things that they roll out on to the platform.</p>
<p>So Jack Dorsey I think hit the nail on the head when he was talking about the fact that while Twitter remains very relevant, they're still not meeting those growth expectations that have been set for them. Again, hard to imagine a world without Twitter. I think for shareholders it's easy enough to sort of hang on to your shares because it's that ticket to the potential that still exists, but no question it seems like it's going to take a while for them to ultimately get there.</p>
<p>Hill: Yeah, because if you're an ad business and you're struggling during a presidential election, then you're not doing it right.</p>
<p>Kretzmann: That's what's brutal and that's what I really don't get with Twitter. So this quarter they had higher user engagement both with monthly active users and daily active users. Their ad engagement was up 151% for the quarter, which is accelerating, but ad revenue still fell year-over-year. I just don't get that. As far as an advertising company, they are really dropping the ball here.</p>
<p>Moser: Yeah, and I agree there. I think it's important to note that they've been very consistent, Dorsey's been very consistent when he said, "Listen. Revenue is going to trail user growth," so user growth is going to come first and once they can prove out the platform and engagement, that makes it more attractive for advertisers which then helps spur revenue along. So that remains to be seen. I mean, they have a lot of lofty goals for 2017 one of which is to become GAAP profitable, and if they can hit that, if they can become a profitable business, then I think all of a sudden you've got something there. You've got an actual business that has some promise and then you can sort of more traditionally value the stock and you can make a little bit more of a case for it as an investment.</p>
<p>Hill: Shares of Activision Blizzard up more than 18% on Friday after a blowout fourth quarter report. The video game maker's profits and revenue both higher than expected. What's driving it, Matty?</p>
<p>Argersinger: They absolutely crushed it. You know, going into the quarter a lot of investors including me were worried about the Call of Duty sales which really disappointed. That's usually their big game every year in the holiday season. Didn't do well. Had some bad competition with Battlefield 1 which everyone seemed to like but clearly Call of Duty did not matter because revenue in the fourth quarter was up 49% to over $2 billion. Here's what's really impressive that for the first time, Activision had at least $1.5 billion in sales each on PC, console, and mobile. So absolute home runs on every gaming platform, and of course we know the mobile story there is there because they purchased King Digital, the leader, about a year ago.</p>
<p>A few interesting points. consumers spent 43 billion hours playing or watching Activision games last year. That's on par with the number of hours watched on Netflix, and maybe this is Bobby Kotick throwing a little shade out there, but it's 1.5 times the amount of time spent on SnapChat, which we know is about to go public at about the same valuation as Activision Blizzard. So I'm just saying ... But the story here with the video games space and with Activision, it's just the move to digital that we've seen over the last several years. In-game content sales were $3.6 billion last year. That's a record. Even if you take out King Digital, that grew 30% year-over-year. They generated $2.2 billion operating cash flow and announced a $1 billion share buyback. I think Bobby Kotick's just dropped the mic there.</p>
<p>Hill: King Digital, the maker of Candy Crush, they paid a lot of money for King Digital and a bunch of people and myself . . .</p>
<p>Argersinger: Took on a lot of debt . . .</p>
<p>Hill:. . . included were very critical of that. It looks like, based on this latest report, I need to eat a little crow on that one.</p>
<p>Argersinger: I don't know about that but it's generating . . . That mobile business is now generating hundreds of millions of dollars in cash flow. If you look at King Digital, they might pay that back in about two years, and pay off all the debt they took out to do it. So very impressive buyout.</p>
<p>Kretzmann: One potential blemish with King Digital is the monthly active user count for King Digital has dropped from about 500 million at the time Activision bought them at the end of 2014 and now that number's down to "just" 355 million, so that number has steadily gone down each quarter. The users that they do have are increasingly engaged but at some point they need to come up with another Candy Crush-esque hit to bump up that user count again.</p>
<p>Hill: Sticking with gaming, Take-Two Interactive shares hit a new all-time high this week. David, they got a new partnership with the NBA?</p>
<p>Kretzmann: Yeah. So they're creating a joint venture with the NBA and this will be the first professional video game league with a US sports league, the NBA. So think e-Lakers and e-Knicks. Essentially the vision here is that each franchise in the NBA, whether you're talking about LA, New York, Sacramento, shout out to my Kings, they'll own or control their own e-sports team. So they'll draft players. These will be full-time salaried players. These different teams will deal with marketing, product licensing, and more. As someone who . . . my eyes glaze over whenever I play or watch a shooter game and I think this is something that will really broaden the market for e-sports and for a lot of people like me who might not be drawn to a shooter game, watching an e-sports tournament with basketball, football, hockey, I think that really does open up the market so I'm curious to see how this plays out.</p>
<p>Hill: Maybe your e-Kings can make the playoffs?</p>
<p>Kretzmann: I hope so, man. Better than the real Kings, hopefully.</p>
<p>Hill: Hasbro shareholders had their best day in more than two decades after fourth quarter profits came in much higher than expected. Jason, they also raised the dividend. That's always nice.</p>
<p>Moser: It sure is. Kind of continuing from the discussion there on Disney and its success, I think Hasbro is a very good example of a company that has figured out how to sort of hitch their wagon to the stars out there in the IP world, Disney being the main one, and I think in the face of what was obviously a very brutal retail season. I mean, we saw just it seemed like every retail stock just got peppered. Hasbro just went the other way. It was a phenomenal quarter for them. A phenomenal year really. I mean, you look at a company like this, they grew their top line 14%. They grew sales 14% for the year. Just phenomenal I think for a company like this when we've been talking so much about the secular challenges in the toy industry.</p>
<p>But I think they've made a very good shift there into the digital space and I think they've utilized a lot of the properties that Disney has to do that. We didn't really have any doubt here but we sort of were wondering would Hasbro winning that Disney princess partnership have a material effect on the business. It certainly has and we've seen on the other side of that coin, certainly Mattel has suffered, which just makes you wonder how leadership let that one slip from their fingers. But I also think this is a testament to Hasbro's leadership. Very smart and consistent leadership in CEO, Brian Goldner. He's been there since 2008. Look at the stock chart, Chris. The results speak for themselves.</p>
<p>Argersinger: Yeah, you wonder if we're always looking to see if Iger's going to make another acquisition. Obviously they've earned great licensing revenue for years if not decades from Hasbro but, you know, bring that in-house. Capture a lot more of that revenue.</p>
<p>Moser: Well, and they continue Disney trying to figure out how to make that consumer products part of the business, it's stronger. That can certainly be one way to do it.</p>
<p>Hill: Up next, earnings palooza rolls on. This is Motley Fool Money.</p>
<p>Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser, Matt Argersinger, and David Kretzmann.</p>
<p>Nvidia's fourth quarter revenue rose more than 50%. It is the second straight quarter the graphics chip maker has done that and it just wasn't enough to impress Wall Street, Matty.</p>
<p>Argersinger: Well the stock's had an incredible run but this isn't how it's supposed to work in the chip space. Nvidia has been around for a long time. They've made GP processors for as long as I can remember playing video games in the 80s and 90s, but it's experienced certainly a renaissance and its chips have become attached to a lot more interesting and compelling end markets. We talk about autonomous driving, virtual reality, and artificial intelligence and, as a result, their sales have boomed in recent years. Their gross margin has held up around 60% and generally you'll see with a lot of chip companies that gross margin, it's super hard to maintain. Usually comes down over time. Nvidia's been able to maintain it and I would just say, looking at the stock and what it's done, it gives me the heebie-jeebies about the hype cycle that we talk about sometimes, David Kretzmann. What do you think?</p>
<p>Kretzmann: You had CES in January. Nvidia really stole the show with its keynote and I couldn't help but wonder if we're nearing the peak of the hype cycle but, man, you look at . . . the company has its hands in all these different valuable segments and its biggest segment is still gaming which makes up over 60% of revenue but there are a lot of tail winds behind gaming. So we talk about e-sports, virtual reality, the performance demands for that hardware and software will continue to rise so I think Nvidia's in a good position with that, let alone with other categories like automotive or data centers or whatever it might be.</p>
<p>Hill: Fourth quarter results for Buffalo Wild Wings(NASDAQ: BWLD) were anything but spicy. Profits came in lower than expected and same-store sales fell more than 4% and yet, David, the stock didn't really suffer.</p>
<p>Kretzmann: Defying logic. I mean, Buffalo Wild Wings had a rough 2016 and the company consistently over estimated what its future results would be so it closed out 2016 with the worst quarter of the year, fittingly enough. Total sales were up less than 1%. Same-store sales down 4%. Net income down 38%. They do have a new CFO on board and I think they're starting to feel the pressure from activist investor, Marcato Capital, so you're seeing the company tone down the number of company-owned locations its expecting to open. They're refranchising about 10% of their company-owned restaurants this year. They're going to be taking on debt to buyback up to $500 million worth of stock this year and I'm not really sure about that strategy because the stock is near a 52-week high, the valuation is questionable, and the fact that they're going into debt to buy back stock rather than focus on the core operations gives me pause. But all in all, they are shifting their strategy a bit.</p>
<p>Hill: Shares of Panera Bread hitting a new all-time high this week after fourth-quarter profits came in higher than a year ago and, Jason, you look at what they're doing in terms of digital sales and it's really impressive.</p>
<p>Moser: Yeah, I've really enjoyed watching this turnaround, particularly, sitting at my desk, enjoying a delightful chicken Caesar salad from the Panera right across the street. I think, wow, I mean, they really have pulled this turnaround off and I think that Starbucks is going to be taking some lessons from these folks in the near future here given the challenges we've seen at Starbucks with mobile ordering and ordering in advance and throughput and whatnot. As you mentioned, digital sales a big key here now, a quarter of total sales in company-owned stores. They have 25 million MyPanera loyalty members. I think probably every one of us here at the table are members of that club. And at the year end, a little bit more than 2,000 stores. A nice healthy mix of franchise and company-owned.</p>
<p>So I think when you look at this . . . the stock is doing well because the business is doing well and that's because of founder, Ron Shaich, taking a step back, looking at this pragmatically. I think the mosh pit concept was really when things started to turn around because that was when they realized they had a problem and they needed to do something about it. I think the most attractive part of Panera is still the upside here. They can open more stores and I think the market opportunity is there, a much broader cross section of opportunity than maybe some of their competitors so I suspect we'll continue to talk about more upside for Panera for many quarters to come.</p>
<p>Hill: Whole Foods(NASDAQ: WFM) first quarter results were almost an after thought as the company said it is scaling back its expansion plans. Matty, we always mention its CEO, John Mackey, is on the Board of Directors here at the Motley Fool. That goal of 1,200 plus stores that they've put out there for a while, that is now a thing of the past.</p>
<p>Argersinger: Right. I think a lot of us started questioning that pretty regularly over the past couple years. It just didn't seem that a lot of the new markets they were going into were bringing a lot of success and now we see comparable store sales continue to decline. Guidance was very weak for this coming year. But I actually think it's the right move. I mean, I think this is what we've talked about, which is if they've committed back to their core customer and not worry about the value-conscious customer who's clipping coupons and going to Safeway or Kroger, I think that's the right customer.</p>
<p>Now, if this is a story where we don't have 1,200 stores but we have 700 or 800 stores that are very profitable, well positioned . . .</p>
<p>Hill: Because now they're in about 450.</p>
<p>Argersinger: Right. That's still a relatively compelling story. I expect the unit economics of each store to improve because of that so this could be still a valuable investment for investors. It just won't be the growth store we thought it was.</p>
<p>Moser: Yeah. I think that's key there and I think we've seen some signs that really surprised us yet also made a lot of sense. Ratcheting back that opportunity, they've closed down a few under performers and they've more or less put that 365 concept on hold to further assess it. They have some leases they're going to fulfill as they open up a few new ones but I think they really want to get a handful of them open, run them, study them, learn from them. But the 365 concept doesn't really fall in line with the strategy shift that we just found out about . . .</p>
<p>Argersinger: No, it doesn't.</p>
<p>Moser:. . . their core customer. So my suspicion is, we probably won't see the proliferation of those 365 stores that we anticipated maybe a year ago.</p>
<p>Hill: All right. Jason Moser. David Kretzmann. Matt Argersinger. Guys we'll see you later in the show.</p>
<p>Up next, best-selling author, Beth Kobliner, is going to make your kid a money genius. Stay right here. This is Motley Fool Money.</p>
<p>As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against so don't buy or sell stocks based solely on what you hear.</p>
<p>Welcome back to Motley Fool Money. Chris Hill here in studio once again with Jason Moser, Matt Argersinger, and David Kretzmann. You can check out past episodes of Motley Fool Money and all of our podcasts by going to podcast.fool.com. You can also subscribe on iTunes, Stitcher, Spotify, Google Play. Just click the "subscribe" button. It takes two seconds. Go ahead. We'll be with you.</p>
<p>All right. Let's get to the stocks on our radar and our man, Steve Broido from behind the glass. We'll hit you with a question. David Kretzmann, you're up first. What are you looking at?</p>
<p>Kretzmann: We're talking a lot about video games and I don't want to overlook Electronic Arts so I'm going to go with that once again. I just love the different franchises the company has under its belt. You have Battlefield, Mass Effect, Star Wars, Titanfall, EA Sports, and I think we will see more sports leagues look to shift to e-sports and if that happens, EA is just in a great position with Madden, FIFA, NHL, really across the board. So I think the company's in a good position if that trend continues. $3.2 billion in net cash, a really liked CEO, Andrew Wilson, so I think a lot of things to like here for this year and going forward.</p>
<p>Hill: Steve. A question about Electronic Arts.</p>
<p>Steve Broido: Are any of these phones I can play on my cellphone? I saw at the Super Bowl there were a lot of ads for them. Are any of these cellphone games any good these days?</p>
<p>Kretzmann: Yeah. They just launched NBA Live for mobile. They have Madden on mobile. So all those traditional franchises are on mobile and they keep seeing those user counts going up so you should try it out, Steve.</p>
<p>Hill: Jason Moser, what are you looking at?</p>
<p>Moser: Yeah, checking out Control4, ticker CTRL. This is one I've called out on the show before but it's been a while. Seems like this one was headed for mediocrity at best but perhaps we were just a little bit early to the game in looking at this stock but the company focuses on solutions, both on the hardware and software side for the connected home, which is becoming more and more a thing now with the success of Amazon's Echo and recently Control4 integrated with the Echo so it has I think opened them up to a much larger market opportunity. It makes ultimately what Control4 does more relatable to the every day person and easier to integrate into the home. Historically Control4 has focused more on the high end total solution and now that they are integrating with things like the Amazon Echo, this really I think expands their market opportunity in a very significant way. The stock had a phenomenal Friday after earnings of I think around 20%. Perhaps this is something on the road to recovery.</p>
<p>Hill: Steve. Question about Control4.</p>
<p>Broido: Are there security concerns here? I think about somebody opening my garage door while I'm at work, online, going to my phone and just opening up . . .</p>
<p>Argersinger: Hacking it.</p>
<p>Broido: Open the windows and . . .</p>
<p>Moser: I think there's many concerns as your mind will allow and I'm with you, Steve. I have security concerns myself, but we have an Echo at home where I've hooked up our lighting to the Echo but I'm not going to hook up our locks to the Echo. There's just a point where I just can't make that leap.</p>
<p>Hill: All right. Matt Argersinger, what are you looking at?</p>
<p>Argersinger: I'm going with American Tower, ticker AMT. It's a longtime rule breaker. We just added it recently to our MDP watch list. This is a real estate investment trust. They own 144,000 tower sites around the world including places like India where they have almost 60,000 sites, and Brazil where they have about 18,000. And this is all about wireless data and the growth of wireless data and they own one of the biggest, actually the largest wireless data footprint in the world. It pays a nice modest dividend, a growing dividend. Like the business.</p>
<p>Hill: Steve. A question about American Tower.</p>
<p>Broido: I'm a shareholder. What's their next move? What's the next big play? Can they just put in more towers, more American towers?</p>
<p>Argersinger: Well, they're mostly an acquisition company so I expect them to continue to make acquisitions but mostly outside the US, probably in emerging markets like Asia, Latin America.</p>
<p>Hill: Steve. Three stocks. You got one you want to add to your watch list?</p>
<p>Broido: I might play some video games this weekend. Let's go with Electronic Arts.</p>
<p>Argersinger: All right.</p>
<p>Hill: All right. David Kretzmann. Jason Moser. Matt Argersinger. Guys, thanks for being here.</p>
<p>All: Thanks.</p>
<p>Hill: That is going to do it for this week's edition of Motley Fool Money. Our engineer is Steve Broido. Our producer is Mac Greer. I'm Chris Hill.</p>
<p>Thanks for listening. We'll see you next week.</p>
<p>John Mackey, CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. <a href="http://my.fool.com/profile/TMFWizard/info.aspx" type="external">Chris Hill Opens a New Window.</a> owns shares of Amazon, Walt Disney, and Whole Foods Market. <a href="http://my.fool.com/profile/TMFPencils/info.aspx" type="external">David Kretzmann Opens a New Window.</a> owns shares of Activision Blizzard, Amazon, Buffalo Wild Wings, Electronic Arts, Hasbro, Netflix, Panera Bread, Take-Two Interactive, Twitter, Walt Disney, and Whole Foods Market. <a href="http://my.fool.com/profile/TMFJMo/info.aspx" type="external">Jason Moser Opens a New Window.</a> owns shares of Control4, Hasbro, Twitter, Walt Disney, and Whole Foods Market. <a href="http://my.fool.com/profile/TMFMattyA/info.aspx" type="external">Matthew Argersinger Opens a New Window.</a> owns shares of Activision Blizzard, Amazon, Netflix, Twitter, Walt Disney, and Whole Foods Market. <a href="http://my.fool.com/profile/TMFMattyA/info.aspx" type="external">Matthew Argersinger</a> has the following options: long January 2018 $25 calls on Twitter. The Motley Fool owns shares of and recommends Activision Blizzard, Amazon, American Tower, Buffalo Wild Wings, Hasbro, Netflix, Nvidia, Panera Bread, Take-Two Interactive, Twitter, Walt Disney, and Whole Foods Market. The Motley Fool has the following options: short April 2017 $110 calls on American Tower and long January 2019 $80 calls on American Tower. 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;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | episode motley fool moneychris hill jason moser matt argersinger david kretzmann run big earnings reports likes walt disney nyse dis twitter nyse twtr activision blizzard nasdaq atvi hasbro nasdaq nvidia nasdaq nvda many companies reported upbeat downright incredible results news good full transcript follows video continue reading 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 december 12 2016the authors may position stocks mentioned advertisement podcast recorded feb 10 2017 chris hill motley fool radio show im chris hill joining studio week motley fool supernova david kretzmann million dollar portfolio jason moser matt argersinger good see always gentlemen hey hey chris hill weve got latest earnings wall street well talk bestselling author beth kobliner always well give inside look stocks radar begin week magic kingdom walt disneys first quarter profits came higher expected revenue little light though david ill start espn narrative weve seen last quarters continues even though parks resorts really kind getting done david kretzmann beating dead horse kind wall street style disney point comes espn last quarter management set expectations 2017 companys going tough comparison largely due success star wars force awakens last year globally topped 2 billion box office rogue one know came december great hit billion dollars thats half force awakens brought great problem still problem hill think mean billion kretzmann right billion point thats low mark disney think quarter good see revenue 3 operating income 7 like said parks resorts segment saw sales 6 operating income 13 shanghai disney land expected break even year lot things look forward disney across different segments mattargersinger beauty company right got hands many premiere entertainment properties world ones kind hard call studio business youve got billiondollar film come ones others pick extraordinary company consistent jason moser would say disney flop little bit easier let go kretzmann oh man would expect simon hill expect puns simon argersinger looked little forced jason looked little forced good stuff hill jason saw story earnings report came got confirmed man idea bob iger due leave ceo office june 2018 may stay little longer said im going whats best company im going listen board bet right think stays little bit longer feels like window put someone place closing pretty quickly moser think yes reason say manyfold honestly mean think going perhaps important transition power company many many years come think success mr iger point talking taping wall street persistent espn question really firmly think successfully answer really show path success think wants able seeing signs mean hulu relationship thats getting ready launch additional overthetop opportunities investment time spent bamtech think seeds starting show green shoots think iger would love able really prove give little bit time seems enjoy hes really well typically combination almost like youre working anyways suspect hes really good time hes think shareholders wouldnt mind seeing stick around kretzmann look media network segment really need keep perspective think conference call saw bob iger company talk digital media bamtech previous calls thats clearly attention focused theyre caught guard transition traditional cable bundles digital streaming look past five years disney becoming increasingly diversified mattys point go back 2011 media network segment made 70 disneys total operating income last year made less 50 company growing process becoming diversified think youre focused espn youre overlooking quality increasingly quality business hill shares twitter falling 15 thursday friday wake fourth quarter report disappointing say least jason revenue light slowest growth theyve seen since theyve gone public moser yeah told mac market foolery think twitter investor relations feed needs change avatar twitter feed back twitter egg guys lay egg quarter quarter quarter earnings side continue disappoint seems regular sun coming almost think shortcomings ive extremely critical company bullish long time id say im still quasibullish mean hard imagine world without twitter mean think really serve important purpose think poorly run business long period time maybe little light end tunnel think saw modest growth users think importantly saw third consecutive quarter accelerating growth daily active users think something like twitter speaks volumes type platform less users using checking daily basis thats sign engagement improving engagement really going something born new things roll platform jack dorsey think hit nail head talking fact twitter remains relevant theyre still meeting growth expectations set hard imagine world without twitter think shareholders easy enough sort hang shares ticket potential still exists question seems like going take ultimately get hill yeah youre ad business youre struggling presidential election youre right kretzmann thats whats brutal thats really dont get twitter quarter higher user engagement monthly active users daily active users ad engagement 151 quarter accelerating ad revenue still fell yearoveryear dont get far advertising company really dropping ball moser yeah agree think important note theyve consistent dorseys consistent said listen revenue going trail user growth user growth going come first prove platform engagement makes attractive advertisers helps spur revenue along remains seen mean lot lofty goals 2017 one become gaap profitable hit become profitable business think sudden youve got something youve got actual business promise sort traditionally value stock make little bit case investment hill shares activision blizzard 18 friday blowout fourth quarter report video game makers profits revenue higher expected whats driving matty argersinger absolutely crushed know going quarter lot investors including worried call duty sales really disappointed thats usually big game every year holiday season didnt well bad competition battlefield 1 everyone seemed like clearly call duty matter revenue fourth quarter 49 2 billion heres whats really impressive first time activision least 15 billion sales pc console mobile absolute home runs every gaming platform course know mobile story purchased king digital leader year ago interesting points consumers spent 43 billion hours playing watching activision games last year thats par number hours watched netflix maybe bobby kotick throwing little shade 15 times amount time spent snapchat know go public valuation activision blizzard im saying story video games space activision move digital weve seen last several years ingame content sales 36 billion last year thats record even take king digital grew 30 yearoveryear generated 22 billion operating cash flow announced 1 billion share buyback think bobby koticks dropped mic hill king digital maker candy crush paid lot money king digital bunch people argersinger took lot debt hill included critical looks like based latest report need eat little crow one argersinger dont know generating mobile business generating hundreds millions dollars cash flow look king digital might pay back two years pay debt took impressive buyout kretzmann one potential blemish king digital monthly active user count king digital dropped 500 million time activision bought end 2014 numbers 355 million number steadily gone quarter users increasingly engaged point need come another candy crushesque hit bump user count hill sticking gaming taketwo interactive shares hit new alltime high week david got new partnership nba kretzmann yeah theyre creating joint venture nba first professional video game league us sports league nba think elakers eknicks essentially vision franchise nba whether youre talking la new york sacramento shout kings theyll control esports team theyll draft players fulltime salaried players different teams deal marketing product licensing someone eyes glaze whenever play watch shooter game think something really broaden market esports lot people like might drawn shooter game watching esports tournament basketball football hockey think really open market im curious see plays hill maybe ekings make playoffs kretzmann hope man better real kings hopefully hill hasbro shareholders best day two decades fourth quarter profits came much higher expected jason also raised dividend thats always nice moser sure kind continuing discussion disney success think hasbro good example company figured sort hitch wagon stars ip world disney main one think face obviously brutal retail season mean saw seemed like every retail stock got peppered hasbro went way phenomenal quarter phenomenal year really mean look company like grew top line 14 grew sales 14 year phenomenal think company like weve talking much secular challenges toy industry think theyve made good shift digital space think theyve utilized lot properties disney didnt really doubt sort wondering would hasbro winning disney princess partnership material effect business certainly weve seen side coin certainly mattel suffered makes wonder leadership let one slip fingers also think testament hasbros leadership smart consistent leadership ceo brian goldner hes since 2008 look stock chart chris results speak argersinger yeah wonder always looking see igers going make another acquisition obviously theyve earned great licensing revenue years decades hasbro know bring inhouse capture lot revenue moser well continue disney trying figure make consumer products part business stronger certainly one way hill next earnings palooza rolls motley fool money welcome back motley fool money chris hill studio jason moser matt argersinger david kretzmann nvidias fourth quarter revenue rose 50 second straight quarter graphics chip maker done wasnt enough impress wall street matty argersinger well stocks incredible run isnt supposed work chip space nvidia around long time theyve made gp processors long remember playing video games 80s 90s experienced certainly renaissance chips become attached lot interesting compelling end markets talk autonomous driving virtual reality artificial intelligence result sales boomed recent years gross margin held around 60 generally youll see lot chip companies gross margin super hard maintain usually comes time nvidias able maintain would say looking stock done gives heebiejeebies hype cycle talk sometimes david kretzmann think kretzmann ces january nvidia really stole show keynote couldnt help wonder nearing peak hype cycle man look company hands different valuable segments biggest segment still gaming makes 60 revenue lot tail winds behind gaming talk esports virtual reality performance demands hardware software continue rise think nvidias good position let alone categories like automotive data centers whatever might hill fourth quarter results buffalo wild wingsnasdaq bwld anything spicy profits came lower expected samestore sales fell 4 yet david stock didnt really suffer kretzmann defying logic mean buffalo wild wings rough 2016 company consistently estimated future results would closed 2016 worst quarter year fittingly enough total sales less 1 samestore sales 4 net income 38 new cfo board think theyre starting feel pressure activist investor marcato capital youre seeing company tone number companyowned locations expecting open theyre refranchising 10 companyowned restaurants year theyre going taking debt buyback 500 million worth stock year im really sure strategy stock near 52week high valuation questionable fact theyre going debt buy back stock rather focus core operations gives pause shifting strategy bit hill shares panera bread hitting new alltime high week fourthquarter profits came higher year ago jason look theyre terms digital sales really impressive moser yeah ive really enjoyed watching turnaround particularly sitting desk enjoying delightful chicken caesar salad panera right across street think wow mean really pulled turnaround think starbucks going taking lessons folks near future given challenges weve seen starbucks mobile ordering ordering advance throughput whatnot mentioned digital sales big key quarter total sales companyowned stores 25 million mypanera loyalty members think probably every one us table members club year end little bit 2000 stores nice healthy mix franchise companyowned think look stock well business well thats founder ron shaich taking step back looking pragmatically think mosh pit concept really things started turn around realized problem needed something think attractive part panera still upside open stores think market opportunity much broader cross section opportunity maybe competitors suspect well continue talk upside panera many quarters come hill whole foodsnasdaq wfm first quarter results almost thought company said scaling back expansion plans matty always mention ceo john mackey board directors motley fool goal 1200 plus stores theyve put thing past argersinger right think lot us started questioning pretty regularly past couple years didnt seem lot new markets going bringing lot success see comparable store sales continue decline guidance weak coming year actually think right move mean think weve talked theyve committed back core customer worry valueconscious customer whos clipping coupons going safeway kroger think thats right customer story dont 1200 stores 700 800 stores profitable well positioned hill theyre 450 argersinger right thats still relatively compelling story expect unit economics store improve could still valuable investment investors wont growth store thought moser yeah think thats key think weve seen signs really surprised us yet also made lot sense ratcheting back opportunity theyve closed performers theyve less put 365 concept hold assess leases theyre going fulfill open new ones think really want get handful open run study learn 365 concept doesnt really fall line strategy shift found argersinger doesnt moser core customer suspicion probably wont see proliferation 365 stores anticipated maybe year ago hill right jason moser david kretzmann matt argersinger guys well see later show next bestselling author beth kobliner going make kid money genius stay right motley fool money always people program may interest stocks talk motley fool may formal recommendations dont buy sell stocks based solely hear welcome back motley fool money chris hill studio jason moser matt argersinger david kretzmann check past episodes motley fool money podcasts going podcastfoolcom also subscribe itunes stitcher spotify google play click subscribe button takes two seconds go ahead well right lets get stocks radar man steve broido behind glass well hit question david kretzmann youre first looking kretzmann talking lot video games dont want overlook electronic arts im going go love different franchises company belt battlefield mass effect star wars titanfall ea sports think see sports leagues look shift esports happens ea great position madden fifa nhl really across board think companys good position trend continues 32 billion net cash really liked ceo andrew wilson think lot things like year going forward hill steve question electronic arts steve broido phones play cellphone saw super bowl lot ads cellphone games good days kretzmann yeah launched nba live mobile madden mobile traditional franchises mobile keep seeing user counts going try steve hill jason moser looking moser yeah checking control4 ticker ctrl one ive called show seems like one headed mediocrity best perhaps little bit early game looking stock company focuses solutions hardware software side connected home becoming thing success amazons echo recently control4 integrated echo think opened much larger market opportunity makes ultimately control4 relatable every day person easier integrate home historically control4 focused high end total solution integrating things like amazon echo really think expands market opportunity significant way stock phenomenal friday earnings think around 20 perhaps something road recovery hill steve question control4 broido security concerns think somebody opening garage door im work online going phone opening argersinger hacking broido open windows moser think theres many concerns mind allow im steve security concerns echo home ive hooked lighting echo im going hook locks echo theres point cant make leap hill right matt argersinger looking argersinger im going american tower ticker amt longtime rule breaker added recently mdp watch list real estate investment trust 144000 tower sites around world including places like india almost 60000 sites brazil 18000 wireless data growth wireless data one biggest actually largest wireless data footprint world pays nice modest dividend growing dividend like business hill steve question american tower broido im shareholder whats next move whats next big play put towers american towers argersinger well theyre mostly acquisition company expect continue make acquisitions mostly outside us probably emerging markets like asia latin america hill steve three stocks got one want add watch list broido might play video games weekend lets go electronic arts argersinger right hill right david kretzmann jason moser matt argersinger guys thanks thanks hill going weeks edition motley fool money engineer steve broido producer mac greer im chris hill thanks listening well see next week john mackey ceo whole foods market member motley fools board directors chris hill opens new window owns shares amazon walt disney whole foods market david kretzmann opens new window owns shares activision blizzard amazon buffalo wild wings electronic arts hasbro netflix panera bread taketwo interactive twitter walt disney whole foods market jason moser opens new window owns shares control4 hasbro twitter walt disney whole foods market matthew argersinger opens new window owns shares activision blizzard amazon netflix twitter walt disney whole foods market matthew argersinger following options long january 2018 25 calls twitter motley fool owns shares recommends activision blizzard amazon american tower buffalo wild wings hasbro netflix nvidia panera bread taketwo interactive twitter walt disney whole foods market motley fool following options short april 2017 110 calls american tower long january 2019 80 calls american tower motley fool recommends electronic arts motley fool disclosure policy opens new window | 2,757 |
<p>With the market pulling back, many of the stocks that have seen the biggest sell-offs are ones that had large and sustained growth priced into their valuations, but some of these beaten-down growth stocks could be poised for a major turnaround this year.</p>
<p>With that in mind, we asked four Motley Fool contributors to spotlight a growth stock that could see its value double in 2016.</p>
<p>Continue Reading Below</p>
<p><a href="http://my.fool.com/profile/TMFCheesehead/info.aspx" type="external">Brian Stoffel Opens a New Window.</a>(Twitter):Twitter is a strange, strange beast. The platform is an extremely valuable tool to many people. It acts as an immediate source of news and provides an opportunity to interact with high-profile figures you'd never otherwise have the chance to interact with and a chance to see what's trending in the world. And even thoughFacebook has tried to replicate those characteristics, Twitter appears to have a solid moat surrounding it.</p>
<p>But there's a problem: Though Twitter has over 300 million users, the company has had a helluva time trying to convince non-tweeters to jump on board. I'm not going to tell you that I know exactly how Twitter is going to fix that problem in 2016 -- though <a href="https://twitter.com/i/moments?lang=en" type="external">Moments Opens a New Window.</a> is a nice start, and bumping the character limit from 140 to 10,000 would be <a href="http://www.fool.com/investing/general/2016/01/06/would-longer-tweets-be-good-for-twitter.aspx?source=eptfxblnk0000004" type="external">transformational Opens a New Window.</a>.</p>
<p>Instead, I believe that with founder Jack Dorsey back on board as CEO, the company will find a way to make itself relevant again. Employees have already roundly given a thumbs-up to Dorsey's performance on <a href="https://www.glassdoor.com/index.htm" type="external">Glassdoor Opens a New Window.</a>, with a 94% approval rating from around 90 employees -- probably thanks in small measure to his generous donation of his own company stock to the employee equity pool.</p>
<p>For Twitter to double between now and the end of 2016, it would need to reach about $40 per share. I don't think that's too far fetched. It traded for that amount as recently as last April. The company is expected to earn $0.57 per share in 2016, but it has beat analyst expectations for earnings every quarter that it has been public.</p>
<p>Even if we assume the company only hits $0.60 per share, $40 per share would represent a pricey 66 times earnings. But if user growth can reaccelerate, I have no doubt that investors would be willing to pay a premium for a social media company with such a strong brand.</p>
<p><a href="http://my.fool.com/profile/TMFHobo/activity.aspx?source=iaasitlnk0000002" type="external">Jeremy Bowman Opens a New Window.</a>(Shake Shack):After flying out of the gate following its IPO in early 2015, Shake Shack Inc has been on a downward spiral since, falling about 60% over the last eight months. After a sell-off like that, there's a good chance the stock could bounce back just as quickly.</p>
<p>Wall Street seems to have consigned Shake Shack to the "overvalued" bin, and while Shake Shack carries a high valuation according to conventional metrics, analysts seem to be underestimating its growth potential. The company has crushed earnings estimates in each of its past four quarters, yet Wall Street refuses to increase its guidance more than a smidgen. The company posted EPS of $0.09 and $0.12 in its most recent second and third quarters, but the consensus is for a sequential downshift as profits are expected at just $0.07 for the following two quarters. That's a mistake. Though seasonality in restaurants generally means slower sales in the winter months, the company has been opening new restaurants at a blistering pace, which should overcome any headwinds from cold weather.</p>
<p>Beyond the next few quarters, Shake Shack's long-term prospects look just as strong. More than a few fast-casual IPOs have fizzled out, but Shake Shack is different from the bunch. Its restaurants bring in annual revenue of $5 million on average, nearly double that of any other competitor. That figure's a testament to the company's brand strength, and should ensure new restaurants openings continue to be strong. Shake Shack plans to open 14 stores this year, increasing its company-owned base by a third, and it plans to add about that many stores annually over the coming years. On a restaurant-operating level, the chain is hugely profitable. That success should trickle to the bottom line and the stock price eventually.</p>
<p><a href="http://my.fool.com/profile/TMFSocialME/featured.aspx" type="external">Tamara Walsh Opens a New Window.</a>(GoPro): Action-camera maker GoPro finished 2015 in the dumps, falling more than73%. Ouch. If you were unlucky enough to own the stock during that downturn you're likely hoping for a rebound in the new year. Fortunately, the unusually high short-interest in the stock combined withGoPro's attractive valuation equal the perfect recipe for a double-digit gain in 2016.</p>
<p>In addition to how poorly the stock performed last year, shares of GoPro have since plummeted an additional 40% year-to-date. While seemingly every investor on Wall Street is running toward the exit, I believe this creates an opportunity for patient investors. Sure, GoPro made some mistakes recently. However, this is a young company with plenty of potential left in its DNA.</p>
<p>As of this writing, the stock is trading below $11 a pop. Look at GoPro's <a href="http://www.investopedia.com/terms/p/pegratio.asp" type="external">price/earnings-to-growth ratio Opens a New Window.</a> of 0.82 and shares of the mountable-camera maker look even more attractivelypriced. Not to mention, GoPro's stock now trades at just 9 times earnings, which is one of the lowest P/E ratios in the industry. Not only is GoPro cheap today, but it also has incredibly high short-interest.</p>
<p>With more than 33% of GoPro's outstanding shares currently sold short, a lot of people are betting against the camera maker. This could work in shareholders' favor, as any upbeat news out of the company could trigger a short-squeeze -- meaning those who sold short have to buy shares to cover their position -- and send the stock higher. GoPro has exciting new technology coming out in 2016 including drones and a virtual reality rig. Investors also aren't wrong to anticipate new product refreshes, which if successful, could reboot investor confidence in GoPro stock.</p>
<p><a href="http://my.fool.com/profile/keithnoonan/activity.aspx?source=iaasitlnk0000002" type="external">Keith Noonan Opens a New Window.</a> (Ambarella):Ambarella stock has taken a beating, but the big sell-offs and a promising product lineup for 2016 give the stock explosive potential. The chip company's share price has dipped more than 35% over the last year, and trades down more than 70% from its 52-week-high of $129, but the small-cap company has a history of volatility, and a forward P/E value of roughly 12 could suggest that the stock is undervalued relative to its growth potential. The stock's price-to-earnings-growth (PEG) ratio sits at just 0.14 -- which is substantially below the PEG value of 1 that is typically used as a marker for pricing fairness.</p>
<p>Disappointing sales for GoPro's HERO4 Session camera have put significant negative pressure on Ambarella's stock, but GoPro will likely launch its HERO5 camera this year, and Ambarella should benefit from its largest customer debuting a major update to its core product line as opposed to the offshoot that was the HERO4 Session. Ambarella is also selling video chips to smart-home players including Alphabet and Comcast, and should see benefits as the smart-home market and Internet of Things integration takes off. Demand for drone and automobile imaging sensors could also be a driver in 2016.</p>
<p>Ambarella stock currently trades in the neighborhood of its 52-week low, and the company has enough potential avenues to out-performance to make doubling its share price in 2016 a realistic outcome.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/02/21/these-growth-stocks-could-double-in-2016.aspx" type="external">These Growth Stocks Could Double in 2016 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/TMFCheesehead/info.aspx?source=eptfxblnk0000004" type="external">Brian Stoffel Opens a New Window.</a> owns shares of GOOG, GOOGL, FB, GPRO, and TWTR. <a href="http://my.fool.com/profile/TMFHobo/info.aspx?source=eptfxblnk0000004" type="external">Jeremy Bowman Opens a New Window.</a> owns shares of SHAK. <a href="http://my.fool.com/profile/keithnoonan/info.aspx?source=eptfxblnk0000004" type="external">Keith Noonan Opens a New Window.</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/TMFSocialME/info.aspx?source=eptfxblnk0000004" type="external">Tamara Walsh Opens a New Window.</a> owns shares of TWTR. The Motley Fool owns shares of and recommends GOOG, GOOGL, AMBA, FB, GPRO, and TWTR. 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 | market pulling back many stocks seen biggest selloffs ones large sustained growth priced valuations beatendown growth stocks could poised major turnaround year mind asked four motley fool contributors spotlight growth stock could see value double 2016 continue reading brian stoffel opens new windowtwittertwitter strange strange beast platform extremely valuable tool many people acts immediate source news provides opportunity interact highprofile figures youd never otherwise chance interact chance see whats trending world even thoughfacebook tried replicate characteristics twitter appears solid moat surrounding theres problem though twitter 300 million users company helluva time trying convince nontweeters jump board im going tell know exactly twitter going fix problem 2016 though moments opens new window nice start bumping character limit 140 10000 would transformational opens new window instead believe founder jack dorsey back board ceo company find way make relevant employees already roundly given thumbsup dorseys performance glassdoor opens new window 94 approval rating around 90 employees probably thanks small measure generous donation company stock employee equity pool twitter double end 2016 would need reach 40 per share dont think thats far fetched traded amount recently last april company expected earn 057 per share 2016 beat analyst expectations earnings every quarter public even assume company hits 060 per share 40 per share would represent pricey 66 times earnings user growth reaccelerate doubt investors would willing pay premium social media company strong brand jeremy bowman opens new windowshake shackafter flying gate following ipo early 2015 shake shack inc downward spiral since falling 60 last eight months selloff like theres good chance stock could bounce back quickly wall street seems consigned shake shack overvalued bin shake shack carries high valuation according conventional metrics analysts seem underestimating growth potential company crushed earnings estimates past four quarters yet wall street refuses increase guidance smidgen company posted eps 009 012 recent second third quarters consensus sequential downshift profits expected 007 following two quarters thats mistake though seasonality restaurants generally means slower sales winter months company opening new restaurants blistering pace overcome headwinds cold weather beyond next quarters shake shacks longterm prospects look strong fastcasual ipos fizzled shake shack different bunch restaurants bring annual revenue 5 million average nearly double competitor figures testament companys brand strength ensure new restaurants openings continue strong shake shack plans open 14 stores year increasing companyowned base third plans add many stores annually coming years restaurantoperating level chain hugely profitable success trickle bottom line stock price eventually tamara walsh opens new windowgopro actioncamera maker gopro finished 2015 dumps falling than73 ouch unlucky enough stock downturn youre likely hoping rebound new year fortunately unusually high shortinterest stock combined withgopros attractive valuation equal perfect recipe doubledigit gain 2016 addition poorly stock performed last year shares gopro since plummeted additional 40 yeartodate seemingly every investor wall street running toward exit believe creates opportunity patient investors sure gopro made mistakes recently however young company plenty potential left dna writing stock trading 11 pop look gopros priceearningstogrowth ratio opens new window 082 shares mountablecamera maker look even attractivelypriced mention gopros stock trades 9 times earnings one lowest pe ratios industry gopro cheap today also incredibly high shortinterest 33 gopros outstanding shares currently sold short lot people betting camera maker could work shareholders favor upbeat news company could trigger shortsqueeze meaning sold short buy shares cover position send stock higher gopro exciting new technology coming 2016 including drones virtual reality rig investors also arent wrong anticipate new product refreshes successful could reboot investor confidence gopro stock keith noonan opens new window ambarellaambarella stock taken beating big selloffs promising product lineup 2016 give stock explosive potential chip companys share price dipped 35 last year trades 70 52weekhigh 129 smallcap company history volatility forward pe value roughly 12 could suggest stock undervalued relative growth potential stocks pricetoearningsgrowth peg ratio sits 014 substantially peg value 1 typically used marker pricing fairness disappointing sales gopros hero4 session camera put significant negative pressure ambarellas stock gopro likely launch hero5 camera year ambarella benefit largest customer debuting major update core product line opposed offshoot hero4 session ambarella also selling video chips smarthome players including alphabet comcast see benefits smarthome market internet things integration takes demand drone automobile imaging sensors could also driver 2016 ambarella stock currently trades neighborhood 52week low company enough potential avenues outperformance make doubling share price 2016 realistic outcome article growth stocks could double 2016 opens new window originally appeared foolcom suzanne frey executive alphabet member motley fools board directors brian stoffel opens new window owns shares goog googl fb gpro twtr jeremy bowman opens new window owns shares shak keith noonan opens new window position stocks mentioned tamara walsh opens new window owns shares twtr motley fool owns shares recommends goog googl amba fb gpro twtr 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 | 832 |
<p>Senate Republicans have reached a tentative budget deal that would set the parameters for a tax overhaul being pursued by the party and President Donald Trump.</p>
<p>"There is" a tentative deal, Sen. Bob Corker (R., Tenn.) told reporters.</p>
<p>Continue Reading Below</p>
<p>He said that the Senate GOP may provide details after a closed-door Republicans' lunch breaks up. Vice President Mike Pence is attending the lunch.</p>
<p>Mr. Corker is a pivotal vote on the Senate Budget Committee, where members have been considering writing a budget allowing up to $1.5 trillion in tax cuts over a decade.</p>
<p>For Republicans, the budget is a prerequisite to passing a tax bill through the Senate on a simple-majority vote without needing Democratic support.</p>
<p>WASHINGTON -- Senate Republicans reached a deal Tuesday that would allow tax cuts over the next decade, bridging party divides over trade-offs between tax cuts and budget deficits and taking an important step toward tax-overhaul legislation.</p>
<p>Sens. Pat Toomey (R., Pa.) and Bob Corker (R., Tenn.), representing opposing fiscal-policy viewpoints in the Senate Budget Committee, said Tuesday that they struck the agreement, which senators said could lead to a committee vote as early as next week.</p>
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<p>Mr. Toomey had been seeking tax cuts that might reduce revenues by as much as $2 trillion over a decade. Mr. Corker, more wary of budget deficits, had been arguing for a smaller number. The number could be up to $1.5 trillion in revenue-reducing tax cuts, but neither senator would confirm the figure in advance of a formal announcement.</p>
<p>Mr. Corker said he was willing to let the budget move ahead to get the tax bill started. He said he would judge the eventual tax plan by how much it encouraged economic growth and avoided increasing budget deficits.</p>
<p>"Those two guys had the biggest difference that we had to iron out, so I'm very encouraged," said Sen. David Perdue (R., Ga.), a Budget Committee member.</p>
<p>Democrats accused Republicans of abandoning their claims of fiscal probity in a country with $20 trillion in debt, about $10 trillion in projected additional deficits over the next decade and the prospect, eventually, of rising interest rates.</p>
<p>"If this was starting with a clean balance sheet, it would be problematic," said Sen. Mark Warner (D., Va.) "But it is exponentially more problematic."</p>
<p>The Republicans are eager to cut tax rates and rewrite the tax system before the 2018 midterm elections. If the House and Senate adopt the same fiscal 2018 budget, Republicans can use the fast-track process known as reconciliation to write and pass a tax bill with a simple majority -- instead of a 60-vote threshold that would require Democratic support.</p>
<p>The Toomey-Corker agreement would allow Republicans to lower tax rates while making fewer tough decisions on what tax breaks to eliminate to help pay for the cuts.</p>
<p>Republicans say their tax-cutting efforts will boost economic growth and generate revenue, reducing the actual impact on the deficit. Still, they may need to make some of the tax cuts expire after 10 years, leaving decisions to a future Congress they may not control.</p>
<p>They still have a long way to go. "While I know a lot of people read things into what this budget agreement does, the only thing it really does is begin the tax reform discussion," Mr. Corker said.</p>
<p>The full Senate would need to vote on the budget, and Republicans could lose only two votes from their 52 members. Then they would need to align it with the House budget that came out of committee in July.</p>
<p>As written, the House budget likely doesn't allow for as large a tax cut as the Toomey-Corker pact and is tied to more than $200 billion in cuts. Those gaps will require a House-Senate negotiation.</p>
<p>Then, using the size of the tax cut in the budget as the maximum, the House and Senate would each write their own tax bills. Those measures are likely to diverge from each other and force lawmakers into the trade-off debates and lobbying fights that have prevented a major rewrite of the tax code since 1986.</p>
<p>The tax-writing committees plan to work off a blueprint being released next week by top negotiators from the House, Senate and White House.</p>
<p>They face the challenge of offering enough detail to make congressional Republicans comfortable voting for the budget without placing too-tight constraints on the tax bill.</p>
<p>Republicans want to lower tax rates on corporations and other businesses, reduce middle-class taxes, repeal the estate tax, eliminate the alternative minimum tax and lighten the tax burden on U.S. companies' foreign earnings.</p>
<p>Achieving those goals would likely reduce revenue by more than $1.5 trillion over a decade, meaning that Republicans would still need to curtail or repeal tax breaks. They also could scale back some of their rate-cut goals. They have been placing less emphasis recently on significantly lowering the 39.6% top rate on income earned outside a business.</p>
<p>The Congressional Budget Office projects that the U.S. will collect about $43 trillion in tax revenue over the next decade.</p>
<p>Republicans would prefer to start with a slightly lower number, meaning a lower hurdle to get over when accounting for the impact of tax cuts, because there are more than $400 billion in expired or expiring tax breaks that they assume would be extended anyway. And they also want to assume that their tax plan, which isn't written yet, would increase economic growth and thus partly pay for itself with new tax revenue.</p>
<p>The Senate parliamentarian, Elizabeth MacDonough, balked at that accounting, said Sen. John Thune (R., S.D.).</p>
<p>Instead, Republicans will start with the CBO projection and set a tax-cut number that includes the cost of extending expiring tax cuts and an assumption about how much revenue from economic growth they might get.</p>
<p>Mr. Thune said added economic growth from tax cuts likely wouldn't be enough for the tax cut to pay for itself.</p>
<p>"Most of our members are willing to accept a certain amount of deficit if we think it's a very pro-growth tax bill that will accomplish our objectives and that's to grow the economy," he said.</p>
<p>That is a shift for some Republicans. As recently as May, Senate Majority Leader Mitch McConnell told Bloomberg News that the tax bill would have to be revenue-neutral, or raising as much money as the current tax code does.</p>
<p>Under the fast-track reconciliation rules, the tax bill can't increase deficits beyond what's likely to be a 10-year budget window. That means Republicans may have to set some tax cuts to expire, in a partial repeat of the 2001 and 2003 tax cuts under President George W. Bush.</p>
<p>Write to Siobhan Hughes at [email protected] and Richard Rubin at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>September 19, 2017 19:15 ET (23:15 GMT)</p> | true | 0 | senate republicans reached tentative budget deal would set parameters tax overhaul pursued party president donald trump tentative deal sen bob corker r tenn told reporters continue reading said senate gop may provide details closeddoor republicans lunch breaks vice president mike pence attending lunch mr corker pivotal vote senate budget committee members considering writing budget allowing 15 trillion tax cuts decade republicans budget prerequisite passing tax bill senate simplemajority vote without needing democratic support washington senate republicans reached deal tuesday would allow tax cuts next decade bridging party divides tradeoffs tax cuts budget deficits taking important step toward taxoverhaul legislation sens pat toomey r pa bob corker r tenn representing opposing fiscalpolicy viewpoints senate budget committee said tuesday struck agreement senators said could lead committee vote early next week advertisement mr toomey seeking tax cuts might reduce revenues much 2 trillion decade mr corker wary budget deficits arguing smaller number number could 15 trillion revenuereducing tax cuts neither senator would confirm figure advance formal announcement mr corker said willing let budget move ahead get tax bill started said would judge eventual tax plan much encouraged economic growth avoided increasing budget deficits two guys biggest difference iron im encouraged said sen david perdue r ga budget committee member democrats accused republicans abandoning claims fiscal probity country 20 trillion debt 10 trillion projected additional deficits next decade prospect eventually rising interest rates starting clean balance sheet would problematic said sen mark warner va exponentially problematic republicans eager cut tax rates rewrite tax system 2018 midterm elections house senate adopt fiscal 2018 budget republicans use fasttrack process known reconciliation write pass tax bill simple majority instead 60vote threshold would require democratic support toomeycorker agreement would allow republicans lower tax rates making fewer tough decisions tax breaks eliminate help pay cuts republicans say taxcutting efforts boost economic growth generate revenue reducing actual impact deficit still may need make tax cuts expire 10 years leaving decisions future congress may control still long way go know lot people read things budget agreement thing really begin tax reform discussion mr corker said full senate would need vote budget republicans could lose two votes 52 members would need align house budget came committee july written house budget likely doesnt allow large tax cut toomeycorker pact tied 200 billion cuts gaps require housesenate negotiation using size tax cut budget maximum house senate would write tax bills measures likely diverge force lawmakers tradeoff debates lobbying fights prevented major rewrite tax code since 1986 taxwriting committees plan work blueprint released next week top negotiators house senate white house face challenge offering enough detail make congressional republicans comfortable voting budget without placing tootight constraints tax bill republicans want lower tax rates corporations businesses reduce middleclass taxes repeal estate tax eliminate alternative minimum tax lighten tax burden us companies foreign earnings achieving goals would likely reduce revenue 15 trillion decade meaning republicans would still need curtail repeal tax breaks also could scale back ratecut goals placing less emphasis recently significantly lowering 396 top rate income earned outside business congressional budget office projects us collect 43 trillion tax revenue next decade republicans would prefer start slightly lower number meaning lower hurdle get accounting impact tax cuts 400 billion expired expiring tax breaks assume would extended anyway also want assume tax plan isnt written yet would increase economic growth thus partly pay new tax revenue senate parliamentarian elizabeth macdonough balked accounting said sen john thune r sd instead republicans start cbo projection set taxcut number includes cost extending expiring tax cuts assumption much revenue economic growth might get mr thune said added economic growth tax cuts likely wouldnt enough tax cut pay members willing accept certain amount deficit think progrowth tax bill accomplish objectives thats grow economy said shift republicans recently may senate majority leader mitch mcconnell told bloomberg news tax bill would revenueneutral raising much money current tax code fasttrack reconciliation rules tax bill cant increase deficits beyond whats likely 10year budget window means republicans may set tax cuts expire partial repeat 2001 2003 tax cuts president george w bush write siobhan hughes siobhanhugheswsjcom richard rubin richardrubinwsjcom end dow jones newswires september 19 2017 1915 et 2315 gmt | 693 |
<p>Zynga Inc's inexorable decline over the past six months, capped by a sharp reduction in its 2012 outlook on Thursday, has sharpened interest in what Chief Executive Mark Pincus will do next.</p>
<p>Wall Street's excitement over a game publisher once counted among the stars of the new social Internet has cooled since its December initial public offering. On Friday, analysts slashed their price targets on a stock that dived as much as 22 percent, to $2.21 - more than three-quarters off its $10 debut.</p>
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<p>The fate of the company now rests with Pincus, the 46-year-old co-founder who controls a majority voting stake. Analysts say he needs to downsize its current 3,000-strong global workforce and come up with a hit that can captivate the growing number of players now moving to mobile devices, where its presence is relatively weak.</p>
<p>Zynga did launch several such games this year, including "The Ville" and "ChefVille," and is working on several more. On Thursday, Pincus emphasized to employees in a company-wide memo that Zynga would be "continuing to invest in its mobile games business."</p>
<p>But he warned that the company will make "targeted cost reductions," which analysts interpreted to mean layoffs as Pincus shifts Zynga away from the "casual" Facebook games, like "FarmVille," that were the company's bread-and-butter for years.</p>
<p>"They have banked on the casual gaming segment, and to readjust the business to more core gaming, some casual heads probably have to roll," said P.J. McNealy, CEO of Digital World Research.</p>
<p>The transition will be jarring for a company that moved early to build a formidable business almost completely on top of Facebook's burgeoning platform. "FarmVille," "FrontierVille," "Zynga Poker," "Mafia Wars" and "CityVille" took off primarily as Facebook games on personal computers. They accounted for 83 percent of total revenue last year.</p>
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<p>Zynga has not been able to reverse the tide of users abandoning its previously lucrative Web-based games for offerings on smartphones or games from competing publishers.</p>
<p>Monthly-paying players rose to 4.1 million in the second quarter from 3.5 million. That number would have declined had it not been for new players attracted to "Draw Something," which Zynga purchased in March. The company said on Thursday it will write off about half the game's $183 million price tag.</p>
<p>One saving grace for Pincus may be Zynga's large cash holdings, which amount to roughly $1.6 billion and will stave off any talk of bankruptcy. And Zynga's revenues, while shrinking, remain substantial.</p>
<p>"This is an expectation game," McNealy said. "If people are looking for a possible turnaround in three months it's probably unlikely. If people are looking at the next 12 to 18 months, then it's possible."</p>
<p>KEY DEPARTURES</p>
<p>Pincus' attempt to revive his company has been undermined by an accelerating employee exodus.</p>
<p>On Friday, the two creators of "Words with Friends," one of Zynga's most popular mobile games, announced that they had departed, following more than a dozen key employees who have left in the past six months.</p>
<p>"The departures underscore our skepticism about ZNGA and its ability to address the challenges it faces as it pivots towards mobile and its in-house gaming platforms," Brian Pitz from Jefferies &amp; Co wrote in a research note on Friday. "Yesterday, CEO Mark Pincus asked employees to not lose sight of the bigger picture, but this may not be enough."</p>
<p>Besides betting big on mobile, Pincus hopes to capture growth in online gambling games, an effort that could take years to pay off. It could take 18 to 24 months for U.S. authorities to legalize it, McNealy said.</p>
<p>Zynga Poker, where players win virtual currency as opposed to real cash, is the world's largest online poker game. The game constituted 18 percent of Zynga's $332.4 million revenue last quarter, behind "FarmVille," which brought in about 29 percent.</p>
<p>Zynga plans to seek out overseas markets such as the United Kingdom and France, where online gambling is partially legal. Pincus told analysts on an earnings call last quarter that these first real-money gaming products would launch in the first half of 2013.</p>
<p>TAKEOVER CHATTER</p>
<p>Some on Wall Street now speculate about the possible takeover of a company whose stock has fallen more than 80 percent from its high earlier this year.</p>
<p>For most of Friday, Zynga traded below the company's book value of $2.30 a share according to Thomson Reuters data - the sum value of its assets including real estate holdings and roughly $1.6 billion in cash.</p>
<p>Tom Taulli, an editor at IPOPlaybook.com, said the names of potential acquirers being bandied about have included Amazon , Yahoo and Activision, the game publisher that has a small presence on Facebook and smartphones, two platforms where Zynga has invested heavily.</p>
<p>Even at such a discount, analysts warn that Zynga, valued at $1.88 billion, may not be a natural acquisition target for interactive media companies, given the uncertainty about Zynga's business and the mixed results of major social gaming deals generally.</p>
<p>Last July, Electronic Arts acquired PopCap Games for $650 million in cash plus stock but recently laid off employees and shuttered a PopCap studio. And analysts have continued to second-guess Walt Disney Co's $763 million deal for Playdom in 2010.</p>
<p>"Disney and EA have a pretty sour taste in their mouth," said Richard Greenfield, an analyst at BTIG. "Everyone who has tried to make a purchases in this sector is losing money."</p>
<p>Sterne Agee analyst Arvind Bhatia said most acquirers would probably wait a while longer to see how Zynga fares.</p>
<p>"In a situation where you have fundamental problems and the business is deteriorating, it's going to be tough" to negotiate a sale, Bhatia said. "What's needed is swift action to right-size the company."</p> | true | 0 | zynga incs inexorable decline past six months capped sharp reduction 2012 outlook thursday sharpened interest chief executive mark pincus next wall streets excitement game publisher counted among stars new social internet cooled since december initial public offering friday analysts slashed price targets stock dived much 22 percent 221 threequarters 10 debut continue reading fate company rests pincus 46yearold cofounder controls majority voting stake analysts say needs downsize current 3000strong global workforce come hit captivate growing number players moving mobile devices presence relatively weak zynga launch several games year including ville chefville working several thursday pincus emphasized employees companywide memo zynga would continuing invest mobile games business warned company make targeted cost reductions analysts interpreted mean layoffs pincus shifts zynga away casual facebook games like farmville companys breadandbutter years banked casual gaming segment readjust business core gaming casual heads probably roll said pj mcnealy ceo digital world research transition jarring company moved early build formidable business almost completely top facebooks burgeoning platform farmville frontierville zynga poker mafia wars cityville took primarily facebook games personal computers accounted 83 percent total revenue last year advertisement zynga able reverse tide users abandoning previously lucrative webbased games offerings smartphones games competing publishers monthlypaying players rose 41 million second quarter 35 million number would declined new players attracted draw something zynga purchased march company said thursday write half games 183 million price tag one saving grace pincus may zyngas large cash holdings amount roughly 16 billion stave talk bankruptcy zyngas revenues shrinking remain substantial expectation game mcnealy said people looking possible turnaround three months probably unlikely people looking next 12 18 months possible key departures pincus attempt revive company undermined accelerating employee exodus friday two creators words friends one zyngas popular mobile games announced departed following dozen key employees left past six months departures underscore skepticism znga ability address challenges faces pivots towards mobile inhouse gaming platforms brian pitz jefferies amp co wrote research note friday yesterday ceo mark pincus asked employees lose sight bigger picture may enough besides betting big mobile pincus hopes capture growth online gambling games effort could take years pay could take 18 24 months us authorities legalize mcnealy said zynga poker players win virtual currency opposed real cash worlds largest online poker game game constituted 18 percent zyngas 3324 million revenue last quarter behind farmville brought 29 percent zynga plans seek overseas markets united kingdom france online gambling partially legal pincus told analysts earnings call last quarter first realmoney gaming products would launch first half 2013 takeover chatter wall street speculate possible takeover company whose stock fallen 80 percent high earlier year friday zynga traded companys book value 230 share according thomson reuters data sum value assets including real estate holdings roughly 16 billion cash tom taulli editor ipoplaybookcom said names potential acquirers bandied included amazon yahoo activision game publisher small presence facebook smartphones two platforms zynga invested heavily even discount analysts warn zynga valued 188 billion may natural acquisition target interactive media companies given uncertainty zyngas business mixed results major social gaming deals generally last july electronic arts acquired popcap games 650 million cash plus stock recently laid employees shuttered popcap studio analysts continued secondguess walt disney cos 763 million deal playdom 2010 disney ea pretty sour taste mouth said richard greenfield analyst btig everyone tried make purchases sector losing money sterne agee analyst arvind bhatia said acquirers would probably wait longer see zynga fares situation fundamental problems business deteriorating going tough negotiate sale bhatia said whats needed swift action rightsize company | 582 |
<p>It's no secret that in the world of digital advertising there are Facebook (NASDAQ: FB) and Google, and then there's everyone else. While smaller companies like Twitter (NYSE: TWTR) and Snap (NYSE: SNAP) might take a piece of the pie from the big social network company and the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary, the two combine to take <a href="https://www.fool.com/investing/2017/05/01/nobody-can-stop-facebook-and-google.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">practically all of the growth Opens a New Window.</a> in the market these days.</p>
<p>What's impressive is that Facebook and Google aren't using brute strength to grow their businesses. They benefit from most of their customers, i.e. advertisers, coming to them and using their self-serve platforms. Twitter, Snap, and most other digital advertising businesses are still heavily reliant on a sales team reaching out directly to advertisers, despite efforts to copy the extremely effective strategies of Facebook and Google. It's hard to turn a profit without a significant amount of ad sales coming from scalable self-serve platforms.</p>
<p>Continue Reading Below</p>
<p>That fact is exemplified in just one number.</p>
<p>Over the last twelve months, Facebook and Google have spent just 13% of their ad revenue on sales and marketing. While not all sales and marketing efforts go toward selling advertising (Google notably stepped up marketing for its hardware division), it's likely the largest contributor to the line item, considering both derive the vast majority of their revenues from ads. Look how that compares to two of their biggest competitors:</p>
<p>To be fair, Snap's number is inflated somewhat due to its initial public offering in the first quarter this year, which resulted in a load of stock-based compensation for its employees. But Snap's <a href="https://www.fool.com/investing/2017/08/15/snaps-marketing-expense-is-exploding.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">marketing expenses still climbed significantly in the second quarter Opens a New Window.</a> as it launched its self-serve platform. Management is confident it will eventually reap efficiencies from self-serve platforms.</p>
<p>But Twitter may prove a cautionary tale for Snap. Twitter launched its self-serve platform in 2011. Nonetheless, direct sales to big advertisers remain its largest source of revenue. Twitter's sales and marketing expense as a percentage of revenue didn't start to come down until it underwent a major restructuring of its workforce about a year ago. And those job cuts came at the <a href="https://www.fool.com/investing/2017/02/11/twitters-revenue-is-already-starting-to-decline.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">immediate cost of further revenue growth Opens a New Window.</a>.</p>
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<p>It's very unlikely Snap or Twitter, or anyone else in the digital advertising market, will reach the same levels of efficiency in their sales teams as Facebook and Google. Advertisers actively seek out Facebook and Google; everyone else has to go seek out the advertisers. That's one reason we've seen Twitter's ad revenue decline as it pulls back on sales and marketing spend.</p>
<p>Advertisers are attracted to Facebook and Google because they command so much attention. Not only are their audiences massive, they're extremely well engaged. Google is to "internet search" what Kleenex is to "facial tissue," and <a href="https://www.fool.com/investing/2017/06/26/youtube-has-15-billion-viewers-watching-over-an-ho.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">1.5 billion people Opens a New Window.</a> watch videos on YouTube in an average month, with mobile viewers spending an average of one hour per day staring at their phones. Between Facebook, Instagram, and Messenger, billions of people spend another 50 minutes or so continuing to stare at their phones.</p>
<p>Some argue that comparing Facebook to Twitter, or Google to Snapchat, isn't useful. They all appeal to different audiences -- Twitter's and Snapchat's audiences are more focused.</p>
<p>The counterargument is that they're all vying for the same advertising dollars. In that sense, they all appeal to the exact same audience. And advertisers can simply get more for their money from Google and Facebook than from any of their competitors: Creating one ad campaign on either platform can reach billions of people. Not only that, the two companies have superior ad-targeting capabilities, enabling advertisers to use their ad dollars more effectively.</p>
<p>Snap is taking steps to lower the barriers to advertising on its platform, but it still requires someone to edit video and images to fit the format. Some of Snap's most innovative ad products, like sponsored filters, require immense upfront costs just to target a few million teenagers (who are likely also to be using Instagram and YouTube).</p>
<p>Facebook's and Google's competitive advantages show up in their sales and marketing expenses. Neither has to spend much to attract new advertisers, because they dominate time spent on the internet. At the same time, they make it very expensive for anyone else to compete in the market.</p>
<p>10 stocks we like better than FacebookWhen 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=71e1eb34-34fd-4aa8-8f19-38658d4dadee&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Facebook wasn't one of them! That's right -- they think these 10 stocks are even better buys.</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/TMFnCaffeine/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">Adam Levy Opens a New Window.</a> has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Facebook, and Twitter. 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=f9399c12-aa35-11e7-a4e7-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | secret world digital advertising facebook nasdaq fb google theres everyone else smaller companies like twitter nyse twtr snap nyse snap might take piece pie big social network company alphabet nasdaq goog nasdaq googl subsidiary two combine take practically growth opens new window market days whats impressive facebook google arent using brute strength grow businesses benefit customers ie advertisers coming using selfserve platforms twitter snap digital advertising businesses still heavily reliant sales team reaching directly advertisers despite efforts copy extremely effective strategies facebook google hard turn profit without significant amount ad sales coming scalable selfserve platforms continue reading fact exemplified one number last twelve months facebook google spent 13 ad revenue sales marketing sales marketing efforts go toward selling advertising google notably stepped marketing hardware division likely largest contributor line item considering derive vast majority revenues ads look compares two biggest competitors fair snaps number inflated somewhat due initial public offering first quarter year resulted load stockbased compensation employees snaps marketing expenses still climbed significantly second quarter opens new window launched selfserve platform management confident eventually reap efficiencies selfserve platforms twitter may prove cautionary tale snap twitter launched selfserve platform 2011 nonetheless direct sales big advertisers remain largest source revenue twitters sales marketing expense percentage revenue didnt start come underwent major restructuring workforce year ago job cuts came immediate cost revenue growth opens new window advertisement unlikely snap twitter anyone else digital advertising market reach levels efficiency sales teams facebook google advertisers actively seek facebook google everyone else go seek advertisers thats one reason weve seen twitters ad revenue decline pulls back sales marketing spend advertisers attracted facebook google command much attention audiences massive theyre extremely well engaged google internet search kleenex facial tissue 15 billion people opens new window watch videos youtube average month mobile viewers spending average one hour per day staring phones facebook instagram messenger billions people spend another 50 minutes continuing stare phones argue comparing facebook twitter google snapchat isnt useful appeal different audiences twitters snapchats audiences focused counterargument theyre vying advertising dollars sense appeal exact audience advertisers simply get money google facebook competitors creating one ad campaign either platform reach billions people two companies superior adtargeting capabilities enabling advertisers use ad dollars effectively snap taking steps lower barriers advertising platform still requires someone edit video images fit format snaps innovative ad products like sponsored filters require immense upfront costs target million teenagers likely also using instagram youtube facebooks googles competitive advantages show sales marketing expenses neither spend much attract new advertisers dominate time spent internet time make expensive anyone else compete market 10 stocks like better facebookwhen 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 facebook wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns september 5 2017 suzanne frey executive alphabet member motley fools board directors adam levy opens new window position stocks mentioned motley fool owns shares recommends alphabet shares alphabet c shares facebook twitter motley fool disclosure policy opens new window | 521 |
<p>What is one to do in the small town of Fairfield, Calif., the&#160;halfway point between Sacramento and San Francisco? Schedule a tour of Anheuser-Busch InBev's (NYSE: BUD) Budweiser factory, of course. My short tour during a recent business trip&#160;left me with a new appreciation for the world's largest brewer, along with some insight on the company's strategy to remain relevant in the fast-changing alcohol industry.</p>
<p>Continue Reading Below</p>
<p>The tour began with a review and tasting of some of the many products A-B InBev has to capitalize on differing global&#160;tastes. After its combination with rival giant SABMiller, the company has over 500 beer names spanning every continent, including seven of the 10 most valuable beer brands in the world.</p>
<p>For most of those brands, it's all about brewing consistency so that loyal drinkers will keep coming back. Such is the case with Budweiser, the primary brew made&#160;at the&#160;Fairfield plant. Five ingredients are strictly controlled to make sure batches of Bud taste the same: (1) water, a leading contributor to taste differences, thus there's a strict filtration process across all factories; (2) barley malt; (3) yeast; (4) hops, the "spice" that flavors the beer; and (5) rice, a unique Bud ingredient that helps with consistency and a "clean" flavor.</p>
<p>For A-B InBev's sprawling operations, the consistency equation is also paired with cost control. Thus the company's vertical integration, or ownership of multiple stages of production from raw materials to distribution. For example, Budweiser owns and sources hops from Elk Mountain Farms&#160;-- the world's largest hop farm&#160;-- in the Idaho panhandle in&#160;tiny Bonner's Ferry.</p>
<p>Beer is the third-most-popular beverage after water and tea, and A-B InBev makes the most of that fact (although it also has its fingers in tea, too, with a partnership with Starbucks involving America's largest ready-to-drink premium tea, Teavana). Huge factories around the globe have been dialed in for peak efficiency, producing about a third of all the beer consumed in the world. According to my tour, just the one factory in Fairfield -- the smallest of Budweiser's 12 in the U.S. -- can produce enough six packs in one production run for you to consume one a day for the next 250 or so years.</p>
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<p>Having that kind of scale and brand diversity has been a competitive advantage. Worldwide beer demand has been stagnant for years, but the Budweiser parent keeps finding ways to get bigger. That implies it's growing by gulping down market share, a testament to a brand's ability to roll with changes and elevate its image above that of its peers. Compare that with results from struggling small American beer maker <a href="https://www.fool.com/investing/2017/11/14/boston-beers-latest-numbers-fail-to-impress.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=e9024992-c4ad-11e7-b52e-0050569d32b9&amp;utm_source=foxbusiness" type="external">Boston Beer Company Opens a New Window.</a>(NYSE: SAM), which reported third-quarter revenue down 2.5% year over year.&#160;</p>
<p>Through the first nine months of 2017, A-B InBev reported 4.1% year-over-year organic revenue growth, which measures in-house generated growth unaided by acquisitions of other businesses. The contributing factors to that number included overseas growth and "premiumization&#160;-- adding new brands and flavors that the company can charge more for -- in developed markets like the U.S.</p>
<p>Global beer sales have slowed to a crawl and tastes within the overall market are changing. That is most evident in the U.S. with the craft beer movement. Craft beer sales volumes were up 6.2% in 2016, and the number of U.S. brewers has boomed from just over 1,500 a decade ago to over 5,300 at the end of 2016.</p>
<p>With U.S. consumers valuing variety and innovative product, A-B InBev has added 10 craft brewers to its arsenal in recent years. The moves have come under fire from critics. "Craft" is defined as less than 6 billion barrels of annual production and less than 25% owned or controlled by a non-craft company. Getting bought by the global giant effectively eliminates the brewers from this definition.</p>
<p>A-B InBev has nevertheless plugged its "craft" spoils into its own "high-end" portfolio, to great success. The beers have reportedly taken 0.3% more market share through the first half of 2017, helping offset Budweiser declines in the U.S. I was surprised, though, to see a Northwest favorite&#160;-- Seattle-based Elysian's Space Dust IPA&#160;-- on the production line during my tour in Fairfield. The company has been able to keep&#160;the label independent&#160;enough that demand for the brew is so strong that a bigger production facility than Space Dust's Seattle home was needed.</p>
<p>Regardless of your opinion of Budweiser or "corporate beer" in general, A-B InBev has muscled its way into the top spot in the world of brewing and is worthy of investment consideration. It has a forward price-to-earnings ratio of 23.5, reflecting short-term headwinds integrating SABMiller, and pays a 3.25% dividend yield.</p>
<p>10 stocks we like better than Anheuser-Busch InBev NVWhen 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=977de2bb-8fb9-45a7-b650-30e5e54a60d6&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=e9024992-c4ad-11e7-b52e-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Anheuser-Busch InBev NV wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
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<p><a href="http://my.fool.com/profile/nrossolillo/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=e9024992-c4ad-11e7-b52e-0050569d32b9&amp;utm_source=foxbusiness" type="external">Nicholas Rossolillo Opens a New Window.</a> has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV, Boston Beer, and Starbucks. 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=e9024992-c4ad-11e7-b52e-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | one small town fairfield calif the160halfway point sacramento san francisco schedule tour anheuserbusch inbevs nyse bud budweiser factory course short tour recent business trip160left new appreciation worlds largest brewer along insight companys strategy remain relevant fastchanging alcohol industry continue reading tour began review tasting many products ab inbev capitalize differing global160tastes combination rival giant sabmiller company 500 beer names spanning every continent including seven 10 valuable beer brands world brands brewing consistency loyal drinkers keep coming back case budweiser primary brew made160at the160fairfield plant five ingredients strictly controlled make sure batches bud taste 1 water leading contributor taste differences thus theres strict filtration process across factories 2 barley malt 3 yeast 4 hops spice flavors beer 5 rice unique bud ingredient helps consistency clean flavor ab inbevs sprawling operations consistency equation also paired cost control thus companys vertical integration ownership multiple stages production raw materials distribution example budweiser owns sources hops elk mountain farms160 worlds largest hop farm160 idaho panhandle in160tiny bonners ferry beer thirdmostpopular beverage water tea ab inbev makes fact although also fingers tea partnership starbucks involving americas largest readytodrink premium tea teavana huge factories around globe dialed peak efficiency producing third beer consumed world according tour one factory fairfield smallest budweisers 12 us produce enough six packs one production run consume one day next 250 years advertisement kind scale brand diversity competitive advantage worldwide beer demand stagnant years budweiser parent keeps finding ways get bigger implies growing gulping market share testament brands ability roll changes elevate image peers compare results struggling small american beer maker boston beer company opens new windownyse sam reported thirdquarter revenue 25 year year160 first nine months 2017 ab inbev reported 41 yearoveryear organic revenue growth measures inhouse generated growth unaided acquisitions businesses contributing factors number included overseas growth premiumization160 adding new brands flavors company charge developed markets like us global beer sales slowed crawl tastes within overall market changing evident us craft beer movement craft beer sales volumes 62 2016 number us brewers boomed 1500 decade ago 5300 end 2016 us consumers valuing variety innovative product ab inbev added 10 craft brewers arsenal recent years moves come fire critics craft defined less 6 billion barrels annual production less 25 owned controlled noncraft company getting bought global giant effectively eliminates brewers definition ab inbev nevertheless plugged craft spoils highend portfolio great success beers reportedly taken 03 market share first half 2017 helping offset budweiser declines us surprised though see northwest favorite160 seattlebased elysians space dust ipa160 production line tour fairfield company able keep160the label independent160enough demand brew strong bigger production facility space dusts seattle home needed regardless opinion budweiser corporate beer general ab inbev muscled way top spot world brewing worthy investment consideration forward pricetoearnings ratio 235 reflecting shortterm headwinds integrating sabmiller pays 325 dividend yield 10 stocks like better anheuserbusch inbev nvwhen 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 anheuserbusch inbev nv wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 6 2017 nicholas rossolillo opens new window position stocks mentioned motley fool owns shares recommends anheuserbusch inbev nv boston beer starbucks motley fool disclosure policy opens new window | 552 |
<p>When one thinks of typical childhood rites of passage, watching Cinderella&#160;or Bambi with your family, and a vacation to Disney World come to mind for many Americans. But did you know there's much more to The Walt Disney Company (NYSE: DIS) than that? Today, Disney is a sprawling juggernaut that owns many of the world's most powerful entertainment brands.</p>
<p>Under current CEO Bob Iger, Disney gobbled up Pixar, Marvel, and Lucasfilm, growing the company into the industry leader with a market capitalization of over $150 billion. Add in ESPN, the most popular sports channel worldwide, and one could say Disney has a dominant presence in just about every child's life, whether he or she wants to become a superhero, princess, sports star, or anything in between.</p>
<p>Continue Reading Below</p>
<p>Even with these all-powerful brands and massive scale, the company trades at just 16 times forward earnings, a discount to the broad S&amp;P 500. Moreover, shareholders collect a 1.6% dividend, which is almost certain to grow over the coming years.</p>
<p>So let's assume you want to buy shares of Walt Disney. How do you do it? First, make sure you understand the investing basics laid out in the Fool's guides on&#160; <a href="https://www.fool.com/how-to-invest/how-to-open-a-brokerage-account-a-step-by-step-gui.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">how to sign up for an online brokerage account Opens a New Window.</a> and <a href="https://www.fool.com/how-to-invest/how-to-buy-stocks-in-10-easy-steps.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">how to buy your first stocks Opens a New Window.</a>. Once you have the basics down, your priority shifts to researching the company and understanding why it remains a great stock to own for the long term.</p>
<p>Although Disney is well-known for Mickey, Dumbo, and Simba, its famous film studios only make up the company's third biggest division. Here's a breakdown of the Disney empire:</p>
<p>Of course, while media networks is the biggest division -- and ESPN the biggest part of that -- you can also think of the theme parks, studios, and consumer products business as all part of a Disney-branded operation.</p>
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<p>It is hard to understate just how dominant this "core" Disney business (studio + parks + consumer) has become under CEO Bob Iger. He first joined Disney in 1995 when the company acquired Capital Cities, owner of both ABC and ESPN. Iger was President of ABC, and&#160;at the time, Disney was seen a company in turmoil.&#160;Jeffrey Katzenberg, the creative force behind Disney's mid-90s revitalization, had left to form his own studio, Dreamworks Animation. To make matters worse, the company's number two executive, Frank Wells, had died in a tragic helicopter accident in 1994.</p>
<p>Iger would go on to succeed then-CEO Michael Eisner in 2005, and he quickly set about growing the company's branded portfolio with the acquisition of Pixar in 2006, including its creative genius John Lasseter. That move not only brought intellectual property such as&#160;Toy Story&#160;into the Disney fold, but Lasseter and his team also rejuvenated the company's core Disney franchise, leading to modern day hits such as Frozen.</p>
<p>Iger followed Pixar with the purchase of Marvel Entertainment in 2009, then the huge $4 billion acquisition of Lucasfilm in 2012. These acquisitions have been absolute home runs, with Marvel franchises becoming mainstays at the box office, and the two new Star Wars films becoming the biggest box office hits of both 2015 and 2016.&#160;In fact, seven out of the top-grossing 11 movies released last year all came from Disney brands.</p>
<p>And the good news doesn't stop there. Disney is also incredibly adept at leveraging its intellectual property, especially through its parks &amp; resorts division, which opened a brand new attraction in Shanghai last year. This segment is actually bigger than the studio business, with parks in Orlando, Paris, Tokyo, Hong Kong, and Shanghai, as well as its very own cruise line.</p>
<p>Despite all this good news, Disney's stock has declined over the past two years, largely due to weakness in its large media networks business. ESPN is the most expensive channel in the traditional cable bundle, which means it's heavily affected by <a href="https://www.fool.com/investing/2017/07/08/cord-cutting-is-just-getting-started.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">cord cutting Opens a New Window.</a>, which is only accelerating. Moreover, Disney has paid hefty prices to retain sports rights for the NBA and NFL, and the company's other networks such as The Disney Channel <a href="https://www.fool.com/investing/2017/09/12/is-walt-disney-co-losing-its-magic.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">have also experienced declining ratings Opens a New Window.</a>. As you can see, this has led to a significant drop in the large media networks segment's operating income in its fiscal year to date:</p>
<p>The good news is: Disney is not standing idly by. The company acquired <a href="https://www.fool.com/investing/2017/09/28/what-we-know-about-walt-disneys-upcoming-streaming.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">BAMTech Opens a New Window.</a> earlier this year, which makes technology for streaming live sports. Disney plans to use its capabilities to create its own <a href="https://www.fool.com/investing/2017/08/15/why-disney-had-to-launch-streaming-services.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">Disney-branded streaming channel Opens a New Window.</a> and an ESPN-branded offering as well. This may not only help offset the effects of cord cutting but also lead to even more profitability down the road. As Netflix&#160;has shown, a streaming channel with strong brands and proprietary content can be very successful, both in the U.S. as well as abroad.</p>
<p>Also, the drop in the studio and consumer segments is because Disney lapped the enormous return of Star Wars:&#160;The Force Awakens in late 2015, not because of any problems in its film division, which continues to churn out hit after hit.</p>
<p>Still, the uncertainty has caused Disney's stock price to languish, even as it's making prudent moves to position itself for the future. That makes today a great entry point for long-term investors in the House of Mouse.</p>
<p>Find out why Walt Disney is one of the 10 best stocks to buy now</p>
<p>Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)</p>
<p>Tom and David just revealed their ten top stock picks for investors to buy right now. Walt Disney <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-eg%3Faid%3D8867%26source%3Disaeditxt0000450%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6313%26ftm_veh%3Darticle_pitch&amp;impression=9de5bd0d-3847-41c1-868b-d9efd585c40c&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">is on the list Opens a New Window.</a> -- but there are nine others you may be overlooking.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-eg%3Faid%3D8867%26source%3Disaeditxt0000450%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6313%26ftm_veh%3Darticle_pitch&amp;impression=9de5bd0d-3847-41c1-868b-d9efd585c40c&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">Click here to get access to the full list! Opens a New Window.</a></p>
<p>*Stock Advisor returns as of October 9, 2017</p>
<p><a href="http://my.fool.com/profile/Dubs82/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">Billy Duberstein Opens a New Window.</a> owns shares of Netflix and Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. 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=0fe4fb5e-af00-11e7-bda9-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | one thinks typical childhood rites passage watching cinderella160or bambi family vacation disney world come mind many americans know theres much walt disney company nyse dis today disney sprawling juggernaut owns many worlds powerful entertainment brands current ceo bob iger disney gobbled pixar marvel lucasfilm growing company industry leader market capitalization 150 billion add espn popular sports channel worldwide one could say disney dominant presence every childs life whether wants become superhero princess sports star anything continue reading even allpowerful brands massive scale company trades 16 times forward earnings discount broad sampp 500 moreover shareholders collect 16 dividend almost certain grow coming years lets assume want buy shares walt disney first make sure understand investing basics laid fools guides on160 sign online brokerage account opens new window buy first stocks opens new window basics priority shifts researching company understanding remains great stock long term although disney wellknown mickey dumbo simba famous film studios make companys third biggest division heres breakdown disney empire course media networks biggest division espn biggest part also think theme parks studios consumer products business part disneybranded operation advertisement hard understate dominant core disney business studio parks consumer become ceo bob iger first joined disney 1995 company acquired capital cities owner abc espn iger president abc and160at time disney seen company turmoil160jeffrey katzenberg creative force behind disneys mid90s revitalization left form studio dreamworks animation make matters worse companys number two executive frank wells died tragic helicopter accident 1994 iger would go succeed thenceo michael eisner 2005 quickly set growing companys branded portfolio acquisition pixar 2006 including creative genius john lasseter move brought intellectual property as160toy story160into disney fold lasseter team also rejuvenated companys core disney franchise leading modern day hits frozen iger followed pixar purchase marvel entertainment 2009 huge 4 billion acquisition lucasfilm 2012 acquisitions absolute home runs marvel franchises becoming mainstays box office two new star wars films becoming biggest box office hits 2015 2016160in fact seven topgrossing 11 movies released last year came disney brands good news doesnt stop disney also incredibly adept leveraging intellectual property especially parks amp resorts division opened brand new attraction shanghai last year segment actually bigger studio business parks orlando paris tokyo hong kong shanghai well cruise line despite good news disneys stock declined past two years largely due weakness large media networks business espn expensive channel traditional cable bundle means heavily affected cord cutting opens new window accelerating moreover disney paid hefty prices retain sports rights nba nfl companys networks disney channel also experienced declining ratings opens new window see led significant drop large media networks segments operating income fiscal year date good news disney standing idly company acquired bamtech opens new window earlier year makes technology streaming live sports disney plans use capabilities create disneybranded streaming channel opens new window espnbranded offering well may help offset effects cord cutting also lead even profitability road netflix160has shown streaming channel strong brands proprietary content successful us well abroad also drop studio consumer segments disney lapped enormous return star wars160the force awakens late 2015 problems film division continues churn hit hit still uncertainty caused disneys stock price languish even making prudent moves position future makes today great entry point longterm investors house mouse find walt disney one 10 best stocks buy motley fool cofounders tom david gardner spent decade beating market fact newsletter run motley fool stock advisor tripled market tom david revealed ten top stock picks investors buy right walt disney list opens new window nine others may overlooking click get access full list opens new window stock advisor returns october 9 2017 billy duberstein opens new window owns shares netflix walt disney motley fool owns shares recommends netflix walt disney motley fool disclosure policy opens new window | 617 |
<p />
<p>Medicare is a lot more complicated than you may realize. Many Americans know that it has two parts -- Part A and Part B -- that cover most garden-variety health services and major operations. However, there are also other parts that cover a plethora of additional services. Understanding each part of Medicare can help you make smart healthcare decisions during retirement.</p>
<p>Continue Reading Below</p>
<p>Let's go over the various parts of Medicare and the benefits they provide.</p>
<p>Medicare Part A</p>
<p>Part A of Medicare provides hospital and hospice coverage. It will also cover some (but not many) types of long-term care. For example, Part A will cover the first 100 days in a semiprivate room in a nursing home, but only if you spent at least three days in the hospital first and were sent to the nursing home based on a doctor's recommendation.</p>
<p>Everyone who enrolls in Medicare is signed up for Part A by default. If you or your spouse earned enough in taxable wages during your working years to qualify for Social Security benefits, then there's no charge for this part of Medicare. Otherwise, you'll have to pay a monthly premium.</p>
<p>Medicare Part B</p>
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<p>Part B of Medicare provides non-hospital-related coverage. It breaks its coverage down into "medically necessary services," such as a visit to the doctor when you're feeling ill, and "preventative services" like your annual physical. In addition to paying various doctor-visit-related expenses, Part B also covers things like ambulances and lab tests.</p>
<p>As with Part A, everyone who signs up for Medicare gets Part B by default. Unlike Part A, Part B always comes with a premium, which is based partly on your income -- enrollees with a higher income may pay a higher premium. In 2017, the base premium is $134 per month. The maximum is $428.60 per month for enrollees making more than $214,000 per year (for individuals) or $428,000 per year (for married couples filing jointly). Most enrollees pay their Part B premiums out of their Social Security benefits.</p>
<p>Medicare Part C</p>
<p>Part C, also known as <a href="http://www.fool.com/investing/2016/10/15/whats-up-with-medicare-advantage-in-2017.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">Medicare Advantage Opens a New Window.</a>, is an optional part of Medicare, provided for enrollees who want more than minimal health insurance. Part C plans are provided by private insurance companies. They take the place of Part A and Part B, and they're required to cover the healthcare expenses that are included in these two parts plus additional services, which vary from plan to plan. For example, you may opt for a Medicare Part C plan if you'd like dental and vision coverage, which is not included in Part A or Part B.</p>
<p>Because Part C plans vary so widely, their costs also cover quite a range. You can look up the plans available in your area on the <a href="https://www.medicare.gov/find-a-plan/questions/home.aspx" type="external">Medicare website Opens a New Window.</a>. Premiums and other cost-related information, such as deductibles, are listed in the plan descriptions. If you enroll in Part C, you'll still need to pay the Part B premium, as well as any Part C premium.</p>
<p>Medicare Part D</p>
<p>Part D covers just one type of medical expense: prescription drugs. Many Part C plans already provide drug coverage, so if you have one of these plans, you won't need Part D. Given how expensive many drugs are today, most other enrollees will want to get a Part D plan.</p>
<p>Like Part C plans, Part D plans vary in both their coverage levels and their expenses. You can expect to pay a premium for any Part D plan, plus a deductible, a co-pay, and possibly other costs as well.</p>
<p>Medigap</p>
<p>If you choose not to sign up for Part C, you may want to get a <a href="http://www.fool.com/investing/2017/06/04/will-you-need-a-medigap-plan.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">Medigap plan Opens a New Window.</a> to cover healthcare expenses that aren't included under <a href="http://www.fool.com/retirement/general/2016/04/23/3-reasons-original-medicare-may-be-right-for-you.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">original Medicare Opens a New Window.</a>. Medigap policies are standardized and must follow one of 10 templates, each of which provides a different level of coverage.</p>
<p>Naturally, the Medigap templates that provide more coverage also tend to have higher premiums. But since Medigap policies are offered by private companies, the premiums can vary quite a bit, even between policies using the same plan template. Since policies under the same plan must have exactly the same coverage, it just makes sense to pick the one that's cheaper.</p>
<p>What's missing from Medicare</p>
<p>Nearly all healthcare-related expenses are covered by one or more parts of Medicare, with the notable exception being long-term care. Medicare does not consider long-term care to be a "medical expense," so aside from certain nursing-home and home-care services with a clear medical component, it doesn't provide any coverage. Therefore it's a good idea to supplement your Medicare policies with a <a href="http://www.fool.com/retirement/2017/03/02/do-you-need-long-term-care-insurance.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">long-term care insurance Opens a New Window.</a> policy. Given the <a href="http://www.fool.com/retirement/2017/05/09/69-of-americans-will-need-long-term-care-someday-h.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">likelihood that you'll need long-term care Opens a New Window.</a> at some point, such an insurance policy can save you from some pretty dire financial straits.</p>
<p>The $16,122 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.&#160; <a href="http://www.fool.com/mms/mark/ecap-foolcom-social-security?aid=8727&amp;source=irreditxt0000002&amp;ftm_cam=ryr-ss-intro-report&amp;ftm_pit=3186&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">Simply click here to discover how to learn more about these strategies Opens a New Window.</a>.</p>
<p>The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=974d62c2-8c30-11e7-8fdd-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | medicare lot complicated may realize many americans know two parts part part b cover gardenvariety health services major operations however also parts cover plethora additional services understanding part medicare help make smart healthcare decisions retirement continue reading lets go various parts medicare benefits provide medicare part part medicare provides hospital hospice coverage also cover many types longterm care example part cover first 100 days semiprivate room nursing home spent least three days hospital first sent nursing home based doctors recommendation everyone enrolls medicare signed part default spouse earned enough taxable wages working years qualify social security benefits theres charge part medicare otherwise youll pay monthly premium medicare part b advertisement part b medicare provides nonhospitalrelated coverage breaks coverage medically necessary services visit doctor youre feeling ill preventative services like annual physical addition paying various doctorvisitrelated expenses part b also covers things like ambulances lab tests part everyone signs medicare gets part b default unlike part part b always comes premium based partly income enrollees higher income may pay higher premium 2017 base premium 134 per month maximum 42860 per month enrollees making 214000 per year individuals 428000 per year married couples filing jointly enrollees pay part b premiums social security benefits medicare part c part c also known medicare advantage opens new window optional part medicare provided enrollees want minimal health insurance part c plans provided private insurance companies take place part part b theyre required cover healthcare expenses included two parts plus additional services vary plan plan example may opt medicare part c plan youd like dental vision coverage included part part b part c plans vary widely costs also cover quite range look plans available area medicare website opens new window premiums costrelated information deductibles listed plan descriptions enroll part c youll still need pay part b premium well part c premium medicare part part covers one type medical expense prescription drugs many part c plans already provide drug coverage one plans wont need part given expensive many drugs today enrollees want get part plan like part c plans part plans vary coverage levels expenses expect pay premium part plan plus deductible copay possibly costs well medigap choose sign part c may want get medigap plan opens new window cover healthcare expenses arent included original medicare opens new window medigap policies standardized must follow one 10 templates provides different level coverage naturally medigap templates provide coverage also tend higher premiums since medigap policies offered private companies premiums vary quite bit even policies using plan template since policies plan must exactly coverage makes sense pick one thats cheaper whats missing medicare nearly healthcarerelated expenses covered one parts medicare notable exception longterm care medicare consider longterm care medical expense aside certain nursinghome homecare services clear medical component doesnt provide coverage therefore good idea supplement medicare policies longterm care insurance opens new window policy given likelihood youll need longterm care opens new window point insurance policy save pretty dire financial straits 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 | 552 |
<p>If your investing decisions were based solely on past performance, Pfizer Inc. (NYSE: PFE) would be the better stock to buy than GlaxoSmithKline plc (NYSE: GSK). Over the past 12 months, three years, five years, and 10 years, Pfizer's stock performance has topped that of Glaxo.</p>
<p>But investing decisions shouldn't be based solely on past performance. What really matters are the future business prospects. Does Pfizer still have an advantage over GlaxoSmithKline -- or are the roles now reversed? Here's how the two big pharma stocks compare.</p>
<p>Continue Reading Below</p>
<p>Perhaps the best argument for buying Pfizer stock is that <a href="https://www.fool.com/investing/2018/01/09/the-1-word-that-explains-why-pfizers-future-look-2.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=eb05cce4-0ce4-11e8-a72c-0050569d4be0&amp;utm_source=foxbusiness" type="external">its future looks brighter than its past Opens a New Window.</a>. By "past," I'm referring to the last five to 10 years for the big drugmaker. Let's first take a look at Pfizer's recent past.</p>
<p>Between 2005 and 2010, Pfizer introduced two drugs that went on to become blockbusters. From 2011 through 2016, the company launched five blockbuster drugs. Over the past five years, Pfizer grew earnings by around 4% annually. During that period, the stock gained close to 30%. That might not seem horrible, but it was less than half of the gain the S&amp;P 500 index chalked up.</p>
<p>Now let's look at Pfizer's future prospects. The company believes it can win approval for up to 15 drugs over the next five years with blockbuster potential. That's more than double what Pfizer achieved over the past decade. It should be noted, though, that this number includes additional indications for some of the company's existing drugs, such as Ibrance and Xtandi.</p>
<p>One reason Pfizer could be on track for much better pipeline performance is the company is better now at evaluating risk and selecting its most promising assets. And Pfizer isn't just focused on evaluating its pipeline. The company is looking at all of its businesses to determine what to prune and what to nurture. As part of this effort, Pfizer is considering <a href="https://www.fool.com/investing/2017/10/11/3-reasons-why-pfizer-investors-will-win-with-a-con.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=eb05cce4-0ce4-11e8-a72c-0050569d4be0&amp;utm_source=foxbusiness" type="external">a possible sale or spin-off of its consumer healthcare business Opens a New Window.</a>. The big pharma company is also continually looking at potential acquisition and partnership opportunities.</p>
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<p>But will Pfizer really be able to grow earnings faster in the future than in its recent past? Wall Street thinks so. The consensus analyst estimate calls for annual earnings growth of nearly 7% over the next five years -- much higher than Pfizer's performance over the past few years.</p>
<p>Another strong case for buying Pfizer is its dividend. The dividend yield currently stands at 3.71%. Pfizer appears to be in solid financial shape to keep the dividends flowing and continuing to increase its dividend payout.</p>
<p>You could almost use the case for Pfizer to argue why GlaxoSmithKline is a stock to buy. Over the past few years, GSK has been weighed down by falling sales for older drugs. The company has been hit especially hard by declining revenue for its top-selling product, Seretide/Advair. The likely entrance of a generic version of the drug in the U.S. market soon will only make matters worse.</p>
<p>GlaxoSmithKline also has a long list of older legacy drugs that combined currently generate nearly one-fifth of the company's total revenue. Sales for all of these drugs are either stagnant or slipping.</p>
<p>Now for the good news. GSK also has a nice lineup of newer products that are enjoying solid sales growth. New respiratory drugs such as Anoro Ellipta, Relvar/Breo Ellipta, and Nucala are generating enough growth to offset the sales decline for Seretide/Advair.</p>
<p>The company has also gained significant market share in the HIV market with Tivicay and Triumeq. Technically, the drugs are marketed by Viiv Healthcare, a joint venture between Glaxo, Pfizer, and Japanese pharmaceutical company Shionogi. However, GSK is the majority stakeholder in Viiv.</p>
<p>With recent FDA approval for shingles vaccine Shingrix and promising triple-drug HIV combos in late-stage development, GlaxoSmithKline could see stronger growth in the future. Wall Street analysts project that the drugmaker could increase earnings by 9% annually over the next five years.</p>
<p>In addition, GSK's dividend yields 5.43%. That's one of the highest dividend yields among big pharma companies.</p>
<p>At first glance, GlaxoSmithKline might appear to be the better stock to buy right now. Its dividend yield beats Pfizer's. And Wall Street thinks the company will grow earnings more than Pfizer will. However, my view is that Pfizer is the better pick.</p>
<p>Why? For one thing, GSK's <a href="https://www.fool.com/investing/2017/12/02/is-a-dividend-cut-coming-from-glaxosmithkline-plc.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=eb05cce4-0ce4-11e8-a72c-0050569d4be0&amp;utm_source=foxbusiness" type="external">dividend could be in trouble Opens a New Window.</a>. The company currently spends a lot more to fund the dividend program than it earns. After this year, GlaxoSmithKline will switch to declaring dividend payouts on a quarter-by-quarter basis. My take is that a dividend cut is on the way.</p>
<p>I also am skeptical about the earnings growth projections for GSK. Gilead Sciences (NASDAQ: GILD) just won FDA approval for Biktarvy, its bictegravir/F/TAF HIV combo. Biktarvy seems likely to dominate the HIV market, hurting Tivicay in the process.</p>
<p>Pfizer has had its fair share of problems -- and still faces some with its essential health segment. However, I like the company's prospects. And I love its solid dividend. That makes Pfizer the better choice for me.</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=81462999-0da1-46ba-8392-67716dfb120d&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=eb05cce4-0ce4-11e8-a72c-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>
<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=81462999-0da1-46ba-8392-67716dfb120d&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=eb05cce4-0ce4-11e8-a72c-0050569d4be0&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of February 5, 2018</p>
<p><a href="http://my.fool.com/profile/TMFFishBiz/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=eb05cce4-0ce4-11e8-a72c-0050569d4be0&amp;utm_source=foxbusiness" type="external">Keith Speights Opens a New Window.</a> owns shares of Gilead Sciences and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences. 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=eb05cce4-0ce4-11e8-a72c-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | investing decisions based solely past performance pfizer inc nyse pfe would better stock buy glaxosmithkline plc nyse gsk past 12 months three years five years 10 years pfizers stock performance topped glaxo investing decisions shouldnt based solely past performance really matters future business prospects pfizer still advantage glaxosmithkline roles reversed heres two big pharma stocks compare continue reading perhaps best argument buying pfizer stock future looks brighter past opens new window past im referring last five 10 years big drugmaker lets first take look pfizers recent past 2005 2010 pfizer introduced two drugs went become blockbusters 2011 2016 company launched five blockbuster drugs past five years pfizer grew earnings around 4 annually period stock gained close 30 might seem horrible less half gain sampp 500 index chalked lets look pfizers future prospects company believes win approval 15 drugs next five years blockbuster potential thats double pfizer achieved past decade noted though number includes additional indications companys existing drugs ibrance xtandi one reason pfizer could track much better pipeline performance company better evaluating risk selecting promising assets pfizer isnt focused evaluating pipeline company looking businesses determine prune nurture part effort pfizer considering possible sale spinoff consumer healthcare business opens new window big pharma company also continually looking potential acquisition partnership opportunities advertisement pfizer really able grow earnings faster future recent past wall street thinks consensus analyst estimate calls annual earnings growth nearly 7 next five years much higher pfizers performance past years another strong case buying pfizer dividend dividend yield currently stands 371 pfizer appears solid financial shape keep dividends flowing continuing increase dividend payout could almost use case pfizer argue glaxosmithkline stock buy past years gsk weighed falling sales older drugs company hit especially hard declining revenue topselling product seretideadvair likely entrance generic version drug us market soon make matters worse glaxosmithkline also long list older legacy drugs combined currently generate nearly onefifth companys total revenue sales drugs either stagnant slipping good news gsk also nice lineup newer products enjoying solid sales growth new respiratory drugs anoro ellipta relvarbreo ellipta nucala generating enough growth offset sales decline seretideadvair company also gained significant market share hiv market tivicay triumeq technically drugs marketed viiv healthcare joint venture glaxo pfizer japanese pharmaceutical company shionogi however gsk majority stakeholder viiv recent fda approval shingles vaccine shingrix promising tripledrug hiv combos latestage development glaxosmithkline could see stronger growth future wall street analysts project drugmaker could increase earnings 9 annually next five years addition gsks dividend yields 543 thats one highest dividend yields among big pharma companies first glance glaxosmithkline might appear better stock buy right dividend yield beats pfizers wall street thinks company grow earnings pfizer however view pfizer better pick one thing gsks dividend could trouble opens new window company currently spends lot fund dividend program earns year glaxosmithkline switch declaring dividend payouts quarterbyquarter basis take dividend cut way also skeptical earnings growth projections gsk gilead sciences nasdaq gild fda approval biktarvy bictegravirftaf hiv combo biktarvy seems likely dominate hiv market hurting tivicay process pfizer fair share problems still faces essential health segment however like companys prospects love solid dividend makes pfizer better choice 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 february 5 2018 keith speights opens new window owns shares gilead sciences pfizer motley fool owns shares recommends gilead sciences motley fool disclosure policy opens new window | 603 |
<p>Image source: Fitbit.</p>
<p>Fitbit (NYSE: FIT) is the world's leading tech wearables company, but it faces several challenges that could knock it from the number one spot. Concerns over competition and profitability have caused the company's stock price to decline over 50% in the past year from its 52-week high of $45.25. Let's take a closer look at what investors are concerned about and three things threatening Fitbit's future.</p>
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<p>When Fitbit launched in 2007, it grew rapidly thanks to very little competition, but over the past several years established companies such as Apple (NASDAQ: AAPL), Xiaomi, and others launched products that have eroded Fitbit's market share. According to IDC, a global provider of market intelligence, Fitbit's wearables market share decreased from 32.6% in 2015 to 24.5% in the first quarter of 2016. Fitbit remained the top vendor in the category, but Xiaomi, with its 19% market share, and Apple, with 7.5%, aren't far behind. Recently launched products from both brands could continue to challenge Fitbit's future.</p>
<p>Apple's Watch Sport, which is priced at $299 and geared toward athletic users with its anodized aluminum case, could lure cost sensitive customers away from Fitbit.Apple also has the technology and resources to easily launch a lower-priced band device that would directly compete with Fitbit. Xiaomi, the world's 5th largest smartphone maker, launched the Mi Band 2 in June 2016. Although it's only sold in China, it can be easily bought from resellers on Amazon for around $50. Even though it's less than half the price of the Fitbit Alta, it provides similar features including an OLED display, iPhone and Android compatibility, activity tracking and heart rate monitoring.</p>
<p>Image source: Apple.</p>
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<p>Like most successful tech companies, Fitbit has faced its share of lawsuits over the past several years. It's currently the defendant in three separate suits with Jawbone, Valencell, and a class action suit filed earlier in 2016. Jawbone allegesthat Fitbit stole trade secrets when it hired former Jawbone employees and infringed on several of its patents. Jawbone hasaccused its former employees of stealing at least 335,191 files, which included schematics, manufacturing data, and product launch schedules, when Fitbit first hired them. Jawbone also claimsFitbit used the technology contained in some of the files in its recently launched Alta device. The judge hasn't issued rulings yet, but a judgment against Fitbit could be a major blow to the company.</p>
<p>The Jawbone lawsuit is the most significant to Fitbit, but the suit with Valencell and the class action filed on behalf of customers who purchased the Surge and Charge HR could cause also issues. Valencell, a company that makes biometric sensor technology used in heart-rate monitoring, allegesthat Fitbit and Apple copied its patented PerformTek sensor technology in the Apple Watch and Fitbit's Charge HR and Surge.</p>
<p>The class action lawsuit allegesthat Fitbit's heart-rate monitoring technology isn't as accurate as the company claimed. Funded by the plaintiff's legal team, a California State Polytechnic University study found an average difference of 20 beats per minute between Fitbit's devices and the results of an electrocardiogram. Judges haven't ruled on either of these cases yet.</p>
<p>Like most companies caught up in legal battles, Fitbit hasadamantly rejected the claims in all three lawsuits and plans to defend itself in court. Once judges have issued rulings in the cases, investors should have a better idea of the impact the lawsuits will have on Fitbit's future. Regardless of rulings, legal costs related to the lawsuits negatively affected Fitbit's bottom line in the second quarter. Fitbit had set aside $9.5 million to be used for legal costs last quarter, and expects additional legal costs in upcoming quarters.</p>
<p>The added legal costs from ongoing litigation aren't the only thing crushing Fitbit's bottom line. In the second quarter of 2016, Fitbit increased its warranty reservesfrom $50 million to $77 million, which caused gross margins to decrease from 47.2% to 42%. The warranty reserves line item is money the company sets aside to cover the estimated costs of repairing and replacing products under warranty. It doesn't include customer service-related costs, which added another $10 million in expenses in the second quarter. According to management, the increased reserves resulted primarily from legacy products and shouldn't need to be increased much in the next several quarters. But I'm concerned that as unit sales continue to increase, this won't be an isolated event and warranty-related costs could lead to decreased gross margins in the future.</p>
<p>As concerns go, rising competition is the biggest threat to Fitbit's core business, but investors should be aware of the potential for legal costs and warranty reserves to eat into the company's profitability.</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/TMFShazam/info.aspx" type="external">Ben Estep Opens a New Window.</a> owns shares of Fitbit. 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. The Motley Fool recommends Fitbit. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source fitbit fitbit nyse fit worlds leading tech wearables company faces several challenges could knock number one spot concerns competition profitability caused companys stock price decline 50 past year 52week high 4525 lets take closer look investors concerned three things threatening fitbits future continue reading fitbit launched 2007 grew rapidly thanks little competition past several years established companies apple nasdaq aapl xiaomi others launched products eroded fitbits market share according idc global provider market intelligence fitbits wearables market share decreased 326 2015 245 first quarter 2016 fitbit remained top vendor category xiaomi 19 market share apple 75 arent far behind recently launched products brands could continue challenge fitbits future apples watch sport priced 299 geared toward athletic users anodized aluminum case could lure cost sensitive customers away fitbitapple also technology resources easily launch lowerpriced band device would directly compete fitbit xiaomi worlds 5th largest smartphone maker launched mi band 2 june 2016 although sold china easily bought resellers amazon around 50 even though less half price fitbit alta provides similar features including oled display iphone android compatibility activity tracking heart rate monitoring image source apple advertisement like successful tech companies fitbit faced share lawsuits past several years currently defendant three separate suits jawbone valencell class action suit filed earlier 2016 jawbone allegesthat fitbit stole trade secrets hired former jawbone employees infringed several patents jawbone hasaccused former employees stealing least 335191 files included schematics manufacturing data product launch schedules fitbit first hired jawbone also claimsfitbit used technology contained files recently launched alta device judge hasnt issued rulings yet judgment fitbit could major blow company jawbone lawsuit significant fitbit suit valencell class action filed behalf customers purchased surge charge hr could cause also issues valencell company makes biometric sensor technology used heartrate monitoring allegesthat fitbit apple copied patented performtek sensor technology apple watch fitbits charge hr surge class action lawsuit allegesthat fitbits heartrate monitoring technology isnt accurate company claimed funded plaintiffs legal team california state polytechnic university study found average difference 20 beats per minute fitbits devices results electrocardiogram judges havent ruled either cases yet like companies caught legal battles fitbit hasadamantly rejected claims three lawsuits plans defend court judges issued rulings cases investors better idea impact lawsuits fitbits future regardless rulings legal costs related lawsuits negatively affected fitbits bottom line second quarter fitbit set aside 95 million used legal costs last quarter expects additional legal costs upcoming quarters added legal costs ongoing litigation arent thing crushing fitbits bottom line second quarter 2016 fitbit increased warranty reservesfrom 50 million 77 million caused gross margins decrease 472 42 warranty reserves line item money company sets aside cover estimated costs repairing replacing products warranty doesnt include customer servicerelated costs added another 10 million expenses second quarter according management increased reserves resulted primarily legacy products shouldnt need increased much next several quarters im concerned unit sales continue increase wont isolated event warrantyrelated costs could lead decreased gross margins future concerns go rising competition biggest threat fitbits core business investors aware potential legal costs warranty reserves eat companys profitability 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 ben estep opens new window owns shares fitbit motley fool owns shares recommends apple motley fool following options long january 2018 90 calls apple short january 2018 95 calls apple motley fool recommends fitbit 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 | 614 |
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<p>Investment bankers drooling over the prospect of earnings hundreds of millions of dollars in fees from <a href="" type="internal">Facebook</a>’s epic IPO might not want to get their hopes up.</p>
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<p>That’s because the social-networking king seems to have little appetite for the conventional road to going public, leading some to wonder if it may try to launch its IPO without <a href="" type="internal">Wall Street</a>’s help.</p>
<p><a href="" type="internal">See FOXBusiness.com's full Technology section for the latest updates and video clips on technology news.</a></p>
<p>But is it wise to make an offering of this magnitude -- reportedly $10 billion -- and in this turbulent environment without the aid of a skilled investment bank like <a href="" type="internal">Goldman Sachs</a> (NYSE:GS)?</p>
<p>“This is not a job for amateurs.&#160;Facebook should have an expert sitting on their side of the table,” said David Weild, former vice-chairman of the <a href="" type="internal">Nasdaq</a> Stock Market and head of Grant Thorton’s Capital Markets Group.</p>
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<p>Strong Brand, Name Recognition</p>
<p>Facebook co-founder and CEO <a href="" type="internal">Mark Zuckerberg</a> has already showed a willingness to be unconventional. He’s delayed pushing the IPO button much longer than some had anticipated -- his company is expected to generate $4 billion in revenue when it debuts. So it shouldn’t surprise anyone if he decides to limit the role of investment bankers in the offering.</p>
<p>Part of this thinking comes from the fact that investment banks are traditionally relied upon to gin up demand from institutional investors, high-net worth individuals and <a href="" type="internal">hedge funds</a> that might not have a deep knowledge of the company. That’s clearly not the case as Facebook has 800 million active users and is one of the most highly-anticipated <a href="" type="internal">IPOs</a> ever.</p>
<p>David Ebersman, Facebook’s CFO, has expressed skepticism to bankers over what “contributions investment banks could make” because the company’s shares are already in high demand, according to The <a href="" type="internal">Wall Street Journal</a>.</p>
<p>“Do they need it to get general awareness of the IPO or the plan? No,” said Steve Beck, founder of boutique management consultancy cg42. “They have arguably one of the strongest brands to come to market in a very long time. However, they may need outside council to articulate their long-term direction to potential investors.”</p>
<p>‘To Heck With the Banks’</p>
<p>Zuckerberg seems to realize this demand and brand awareness gives Facebook great leverage over investment banks, which are lining up to get a piece of the IPO. If the company offers $10 billion of stock, bankers, who typically split up 6% to 7% in underwriting fees, could rake in $600 million to $700 million.</p>
<p>These investment banks also stand to gain reputational and other benefits, such as higher commissions from investors who are angling for a slice of the IPO allocation.</p>
<p>Many believe Goldman had all of this in mind when it agreed to invest $450 million in Facebook and run a fundraising effort earlier this year.</p>
<p>“Most, including myself, believe that put them in the pole position to win Facebook’s business when it came time to file to go public,” said Scott Kessler, head of technology equity research at S&amp;P Capital IQ.</p>
<p>Facebook believes it can receive a $100 billion market cap at its IPO, instantly making it more valuable than <a href="" type="internal">Hewlett-Packard</a> (NYSE:HPQ) and <a href="" type="internal">eBay</a> (NASDAQ:EBAY) -- combined.</p>
<p>“Investment banks take a pretty big tithe for their involvement,” said Roger Kay, president of Endpoint Technologies, who acknowledged investment banks help with pricing. “The company ought to be satisfied with a $100 billion valuation out of the gate.&#160;If it can get that price directly, to heck with the banks.”</p>
<p>I-Bankers Bring Expertise</p>
<p>But Zuckerberg may be overlooking some of the other reasons why companies typically hire investment banks: access to a broad and deep investor base, a large scale sales force and experts who can handle roadshow logistics and investor communications.</p>
<p>Facebook needs to be concerned about exactly who is buying into its IPO. Weild notes that some social-networking companies have seen their share prices tumble after their initial offerings. He said that’s because too few long-term institutional investors have been identified, leaving the stock subject to selling by short-term investors who want to make a quick buck on the influx of retail after-market orders.</p>
<p>“Facebook would be well-served to position itself with all the necessary knowledge, data and controls to direct the IPO allocation or they will be treated as ‘product’ by the sales organizations -- not as the client,” said Weild.</p>
<p>Even when companies hire an investment bank, turbulence in the markets can throw off an IPO. For example, the debut of deals site <a href="" type="internal">Groupon</a> (NASDAQ:GRPN) failed to live up to initial hype as it suffered from a number of pre-IPO stumbles. Its stock has plummeted 33% over the past month.</p>
<p>“When everything is going smoothly, there may be little downside. But if the markets hiccup and there and bumps in the process…a seasoned banker is invaluable,” Jeffrey Bussgang, general partner at Flybridge Capital Partners and author of Mastering the VC Game, wrote in an e-mail.</p>
<p>“This is not a job for amateurs.&#160;Facebook should have an expert sitting on their side of the table."</p>
<p>There is a precedence for a high-profile tech company going public in an unconventional avenue. In 2004, <a href="" type="internal">Google</a> (NASDAQ:GOOG) stirred controversy on Wall Street by using an electronic “Dutch Auction.”</p>
<p>While Google became the most valuable U.S. Internet IPO ever, it priced at the bottom of a significantly downgraded estimated price range.</p>
<p>Kessler said that while Facebook is looking to differentiate itself during its IPO process, he wouldn’t be surprised if it ultimately hires investment banks, but at lower fees.</p>
<p>“Even though you have the big brand, the reality is that raising money on Wall Street is not something you can just re-engineer and change over the course of a couple of weeks and months,” said Kessler.</p> | true | 0 | investment bankers drooling prospect earnings hundreds millions dollars fees facebooks epic ipo might want get hopes continue reading thats socialnetworking king seems little appetite conventional road going public leading wonder may try launch ipo without wall streets help see foxbusinesscoms full technology section latest updates video clips technology news wise make offering magnitude reportedly 10 billion turbulent environment without aid skilled investment bank like goldman sachs nysegs job amateurs160facebook expert sitting side table said david weild former vicechairman nasdaq stock market head grant thortons capital markets group advertisement strong brand name recognition facebook cofounder ceo mark zuckerberg already showed willingness unconventional hes delayed pushing ipo button much longer anticipated company expected generate 4 billion revenue debuts shouldnt surprise anyone decides limit role investment bankers offering part thinking comes fact investment banks traditionally relied upon gin demand institutional investors highnet worth individuals hedge funds might deep knowledge company thats clearly case facebook 800 million active users one highlyanticipated ipos ever david ebersman facebooks cfo expressed skepticism bankers contributions investment banks could make companys shares already high demand according wall street journal need get general awareness ipo plan said steve beck founder boutique management consultancy cg42 arguably one strongest brands come market long time however may need outside council articulate longterm direction potential investors heck banks zuckerberg seems realize demand brand awareness gives facebook great leverage investment banks lining get piece ipo company offers 10 billion stock bankers typically split 6 7 underwriting fees could rake 600 million 700 million investment banks also stand gain reputational benefits higher commissions investors angling slice ipo allocation many believe goldman mind agreed invest 450 million facebook run fundraising effort earlier year including believe put pole position win facebooks business came time file go public said scott kessler head technology equity research sampp capital iq facebook believes receive 100 billion market cap ipo instantly making valuable hewlettpackard nysehpq ebay nasdaqebay combined investment banks take pretty big tithe involvement said roger kay president endpoint technologies acknowledged investment banks help pricing company ought satisfied 100 billion valuation gate160if get price directly heck banks ibankers bring expertise zuckerberg may overlooking reasons companies typically hire investment banks access broad deep investor base large scale sales force experts handle roadshow logistics investor communications facebook needs concerned exactly buying ipo weild notes socialnetworking companies seen share prices tumble initial offerings said thats longterm institutional investors identified leaving stock subject selling shortterm investors want make quick buck influx retail aftermarket orders facebook would wellserved position necessary knowledge data controls direct ipo allocation treated product sales organizations client said weild even companies hire investment bank turbulence markets throw ipo example debut deals site groupon nasdaqgrpn failed live initial hype suffered number preipo stumbles stock plummeted 33 past month everything going smoothly may little downside markets hiccup bumps processa seasoned banker invaluable jeffrey bussgang general partner flybridge capital partners author mastering vc game wrote email job amateurs160facebook expert sitting side table precedence highprofile tech company going public unconventional avenue 2004 google nasdaqgoog stirred controversy wall street using electronic dutch auction google became valuable us internet ipo ever priced bottom significantly downgraded estimated price range kessler said facebook looking differentiate ipo process wouldnt surprised ultimately hires investment banks lower fees even though big brand reality raising money wall street something reengineer change course couple weeks months said kessler | 552 |
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<p>Cyprus's government proposed on Tuesday to spare small savers from a divisive tax on bank deposits in a last-minute attempt to win parliamentary backing for an international bailout and avoid default and a banking collapse.</p>
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<p>Lawmakers still seem likely to reject the unprecedented levy, a government spokesman said, plunging one of the smallest European states closer to financial oblivion with potentially severe consequences for the rest of the troubled euro zone.</p>
<p>A weekend announcement that Cyprus would break with previous practice and impose a levy on bank accounts as part of a 10 billion euro ($13 billion) EU bailout sparked outrage among Cypriots and unsettled European financial markets.</p>
<p>Stunned by the backlash and fearing rejection by Cypriot lawmakers, euro zone finance ministers urged Nicosia on Monday to avoid hitting accounts with less than the EU-wide guaranteed 100,000 euros, and to raise the required 5.8 billion euros instead from a higher levy on larger accounts.</p>
<p>However, the Cypriot government has gone only part of the way. A revised draft bill seen by Reuters would exempt savings under 20,000 euros, charge a rate of 6.75 percent for amounts between 20,000 and 100,000 euros and maintain a 9.9. percent tax on deposits above that level.</p>
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<p>Cyprus's central bank chief said the new structure would raise less than the amount required by euro zone partners and the International Monetary Fund as a contribution to rescuing the island's shattered financial sector.</p>
<p>It was not clear how the government intends to plug the funding gap but French Finance Minister Pierre Moscovici said the euro zone could not lend Cyprus any more, since the country's debt would become unmanageable.</p>
<p>"Above 10 billion euros we are entering into a size of debt that is not sustainable," Moscovici told reporters in Paris.</p>
<p>Passage of the bill in the 56-member chamber, where no party has a majority, seemed unlikely and it was not clear if the vote would even go ahead later on Tuesday if leaders were sure it would be rejected.</p>
<p>"It looks like it won't pass," Cypriot government spokesman Christos Stylianides told state radio.</p>
<p>"TROJAN DONKEY?"</p>
<p>The House of Representatives was expected to meet at 1600 GMT. Rejection of the measure would effectively block a bailout that Cyprus needs to keep its banks afloat and the government paying wages and welfare.</p>
<p>Tuesday's vote, originally planned for Sunday, has been postponed twice already. Three parties have said outright they will not support the tax, while a fourth, in the governing coalition, said it cannot support it as it stands either.</p>
<p>IMF Managing Director Christine Lagarde said in Frankfurt that the global lender supported Cyprus's effort to achieve what she called "more progressive rates" in the levy on deposits.</p>
<p>New Cypriot President Nicos Anastasiades continues to resist raising the levy on big deposits - many held by foreigners including rich Russians - beyond 10 percent, fearing for the island's banking business model and reputation as a safe haven.</p>
<p>Anastasiades asked the EU for more aid during a telephone conversation with German Chancellor Angela Merkel on Monday, with a second call expected on Tuesday.</p>
<p>Stylianides said Anastasiades may also speak to Vladimir Putin, the Russian president, who described the tax on Monday as "unfair, unprofessional and dangerous."</p>
<p>The divided east Mediterranean island, home to two large British military bases key to Western power projection and eavesdropping on communications around the Middle East, is a pawn in geopolitical rivalry.</p>
<p>An influx of Russian money and influence since the collapse of the Soviet Union has led some Brussels officials to complain privately that Cyprus acts at times as a "Trojan donkey" for Moscow inside the European Union.</p>
<p>Cypriot Finance Minister Michael Sarris was due to hold meetings in Moscow on Wednesday, partly to try and get an extension to an existing 2.5 billion euro loan.</p>
<p>Russian authorities have denied rumours that the Kremlin might offer more money, possibly in return for a future stake in Cyprus's large but as yet undeveloped offshore gas reserves, which have further raised the island's strategic importance.</p>
<p>ATM RAID</p>
<p>Stunned Cypriots emptied cash machines over the weekend and banks are to remain shut on Tuesday and Wednesday to avoid a bank run. Hundreds of protesters rallied outside parliament on Monday, honking horns and holding banners saying "We are not your guinea pigs!"</p>
<p>"If they vote for this tax they will face the fury of the people," said Markos Economou, a 47-year-old physics teacher and father of two. "The banks and the politicians should pay for this mess, not the people."</p>
<p>The island's stock exchange also suspended trading for another two days.</p>
<p>International market reaction has been muted so far but if a vote was lost, or postponed, that could change. The uncertainty saw the euro drop 0.2 percent as it remained near a three-month low and European shares fall 0.4 percent in early trade.</p>
<p>While Brussels has emphasised that the measure is a one-off for a country that accounts for just 0.2 percent of European output, fears have grown that savers in other, larger European countries will be spurred to withdraw funds.</p> | true | 0 | cypruss government proposed tuesday spare small savers divisive tax bank deposits lastminute attempt win parliamentary backing international bailout avoid default banking collapse continue reading lawmakers still seem likely reject unprecedented levy government spokesman said plunging one smallest european states closer financial oblivion potentially severe consequences rest troubled euro zone weekend announcement cyprus would break previous practice impose levy bank accounts part 10 billion euro 13 billion eu bailout sparked outrage among cypriots unsettled european financial markets stunned backlash fearing rejection cypriot lawmakers euro zone finance ministers urged nicosia monday avoid hitting accounts less euwide guaranteed 100000 euros raise required 58 billion euros instead higher levy larger accounts however cypriot government gone part way revised draft bill seen reuters would exempt savings 20000 euros charge rate 675 percent amounts 20000 100000 euros maintain 99 percent tax deposits level advertisement cypruss central bank chief said new structure would raise less amount required euro zone partners international monetary fund contribution rescuing islands shattered financial sector clear government intends plug funding gap french finance minister pierre moscovici said euro zone could lend cyprus since countrys debt would become unmanageable 10 billion euros entering size debt sustainable moscovici told reporters paris passage bill 56member chamber party majority seemed unlikely clear vote would even go ahead later tuesday leaders sure would rejected looks like wont pass cypriot government spokesman christos stylianides told state radio trojan donkey house representatives expected meet 1600 gmt rejection measure would effectively block bailout cyprus needs keep banks afloat government paying wages welfare tuesdays vote originally planned sunday postponed twice already three parties said outright support tax fourth governing coalition said support stands either imf managing director christine lagarde said frankfurt global lender supported cypruss effort achieve called progressive rates levy deposits new cypriot president nicos anastasiades continues resist raising levy big deposits many held foreigners including rich russians beyond 10 percent fearing islands banking business model reputation safe anastasiades asked eu aid telephone conversation german chancellor angela merkel monday second call expected tuesday stylianides said anastasiades may also speak vladimir putin russian president described tax monday unfair unprofessional dangerous divided east mediterranean island home two large british military bases key western power projection eavesdropping communications around middle east pawn geopolitical rivalry influx russian money influence since collapse soviet union led brussels officials complain privately cyprus acts times trojan donkey moscow inside european union cypriot finance minister michael sarris due hold meetings moscow wednesday partly try get extension existing 25 billion euro loan russian authorities denied rumours kremlin might offer money possibly return future stake cypruss large yet undeveloped offshore gas reserves raised islands strategic importance atm raid stunned cypriots emptied cash machines weekend banks remain shut tuesday wednesday avoid bank run hundreds protesters rallied outside parliament monday honking horns holding banners saying guinea pigs vote tax face fury people said markos economou 47yearold physics teacher father two banks politicians pay mess people islands stock exchange also suspended trading another two days international market reaction muted far vote lost postponed could change uncertainty saw euro drop 02 percent remained near threemonth low european shares fall 04 percent early trade brussels emphasised measure oneoff country accounts 02 percent european output fears grown savers larger european countries spurred withdraw funds | 536 |
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<p>Image source: Verizon</p>
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<p>I was fortuitous enough to buy shares of Verizon (NYSE: VZ) right before it settled the union strikes, then they were trading at recent lows of $50 per share. The stock is now trading near $54 per share, but like any Foolish investor, I didn't buy shares for a quick 8% return: I'm holding on for the long haul.</p>
<p>With a focus on dividend growth, I had to make a decision between Verizon and AT&amp;T (NYSE: T) when it came to investing in the telecom space. AT&amp;T yields 4.8% versus Verizon's 4.3%, it has a longer track record of raising its dividend, and analysts expect its earnings and revenue to grow faster moving forward. On the surface AT&amp;T appears to be the better stock pick. But, after further research, AT&amp;T's business seems less apt for dividend growth investors. Here's why I bought shares of Verizon instead.</p>
<p>Both Verizon and AT&amp;T derive the majority of revenue and profits from their wireless businesses. There's no doubt that Verizon sports a stronger wireless business than AT&amp;T.</p>
<p>Over the last twelve months, AT&amp;T has lost about 2 million postpaid phone subscribers. While it's managed to convert a larger percentage of its postpaid subscribers to higher-value smartphones, all of its wireless subscriber growth is coming from connected devices.</p>
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<p>Comparatively, Verizon added 1.2 million postpaid phone customers. Overall, Verizon has added 4.5 million postpaid connections over the past year. Its postpaid <a href="http://www.fool.com/knowledge-center/what-is-churn-rate.aspx?source=eptfxblnk0000004" type="external">churn rate Opens a New Window.</a> fell to just 0.96% last quarter, whereas AT&amp;T's postpaid churn rate came in at 1.1%.</p>
<p>Despite the strong growth in subscribers, though, Verizon's wireless revenue declined 1.5% year over year, impacted largely by the shift to unsubsidized plans. AT&amp;T suffered a 2.3% decline in revenue for its mobility segment. While the shift to unsubsidized plans and longer upgrade cycles for smartphones will continue to be a drag on revenue growth, it allows Verizon to produce better margins.</p>
<p>Verizon profit margins are the best in the industry. Its wireless EBITDA margin of 46.2% last quarter (up 1.4 percentage points year over year) is significantly better than AT&amp;T's 41%.</p>
<p>AT&amp;T's acquisition of DirecTV made it the largest pay-TV provider in the United States. Meanwhile, Verizon sold a portion of its wireline assets to Frontier Communications, and it's all but halted new investment in that part of its business. While I'm not totally sold on the demise of the pay-TV industry, I'd rather be less exposed to it than AT&amp;T. What's more DirecTV is ceding ground back to traditional cable companies, and even AT&amp;T's unlimited wireless data bundle for DirecTV customers couldn't stop it from losing 300,000 U.S. subscribers over the past year.</p>
<p>AT&amp;T also operates a wireless business in Mexico, where it doesn't benefit from the same advantages of scale as it does in the States. It's a much smaller carrier than America Movil and Telefonica. The company's plans to invest $3 billion in Mexico will likely result in continued operating losses for the business through 2018.</p>
<p>Verizon hasn't spent as aggressively, but it's been expanding into digital video and advertising over the past two years. That's an area I'd much rather invest in compared to traditional pay-TV, as it has better prospects for growth. Still, the area is likely less profitable than its core wireless business.</p>
<p>As a result of all its spending, AT&amp;T has become much more leveraged than in the past. Its net-debt-to-adjusted-EBITDA ratio has climbed to 2.3, the same as Verizon since it acquired the other half of Verizon Wireless. As a result, AT&amp;T has lost its A- rating from the credit agencies. Verizon also has a BBB+ rating, but CFO Fran Shammo has <a href="http://www.fool.com/investing/2016/06/14/verizon-is-about-to-change-this-8-billion-piece-of.aspx?source=eptfxblnk0000004" type="external">a plan to get its A- rating back Opens a New Window.</a>. Borrowing costs will become important as bids come in for the upcoming FCC incentive spectrum auction.</p>
<p>With a dividend of $1.92 per share, AT&amp;T is planning to pay out 67% of its expected 2016 earnings as a dividend. That's not bad for a company with strong cash flows like AT&amp;T, but Verizon expects to pay out just 57% of expected 2016 earnings. What's more, Verizon's dividend as a percentage of free cash flow over the past twelve months is just 48% compared to AT&amp;T's 66%.</p>
<p>Those more favorable ratios give Verizon room to continue growing its dividend even if its earnings or cash flow don't grow as quickly as AT&amp;T's. Given the strength of its core wireless business and less aggressive investments outside of that business, however, I believe Verizon will be able to improve cash flow at a comparable rate, if not a better rate.</p>
<p>Verizon's price to free cash flow ratio of 12.1 represents a discount to AT&amp;T's 14.7 ratio. Even looking at a forward PE ratio, Verizon trades at just 13.7 times earnings compared to AT&amp;T's 14.2 ratio.</p>
<p>Despite a dividend yield about a half a percentage lower, I think the lower valuation and the stronger potential for dividend growth make Verizon the better buy.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/21/why-i-bought-shares-of-verizon-instead-of-att.aspx" type="external">Why I Bought Shares of Verizon Instead of AT&amp;T Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/adamlevy/info.aspx?source=eptfxblnk0000004" type="external">Adam Levy Opens a New Window.</a> owns shares of Verizon Communications. The Motley Fool owns shares of and recommends Verizon Communications. 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 verizon continue reading fortuitous enough buy shares verizon nyse vz right settled union strikes trading recent lows 50 per share stock trading near 54 per share like foolish investor didnt buy shares quick 8 return im holding long haul focus dividend growth make decision verizon atampt nyse came investing telecom space atampt yields 48 versus verizons 43 longer track record raising dividend analysts expect earnings revenue grow faster moving forward surface atampt appears better stock pick research atampts business seems less apt dividend growth investors heres bought shares verizon instead verizon atampt derive majority revenue profits wireless businesses theres doubt verizon sports stronger wireless business atampt last twelve months atampt lost 2 million postpaid phone subscribers managed convert larger percentage postpaid subscribers highervalue smartphones wireless subscriber growth coming connected devices advertisement comparatively verizon added 12 million postpaid phone customers overall verizon added 45 million postpaid connections past year postpaid churn rate opens new window fell 096 last quarter whereas atampts postpaid churn rate came 11 despite strong growth subscribers though verizons wireless revenue declined 15 year year impacted largely shift unsubsidized plans atampt suffered 23 decline revenue mobility segment shift unsubsidized plans longer upgrade cycles smartphones continue drag revenue growth allows verizon produce better margins verizon profit margins best industry wireless ebitda margin 462 last quarter 14 percentage points year year significantly better atampts 41 atampts acquisition directv made largest paytv provider united states meanwhile verizon sold portion wireline assets frontier communications halted new investment part business im totally sold demise paytv industry id rather less exposed atampt whats directv ceding ground back traditional cable companies even atampts unlimited wireless data bundle directv customers couldnt stop losing 300000 us subscribers past year atampt also operates wireless business mexico doesnt benefit advantages scale states much smaller carrier america movil telefonica companys plans invest 3 billion mexico likely result continued operating losses business 2018 verizon hasnt spent aggressively expanding digital video advertising past two years thats area id much rather invest compared traditional paytv better prospects growth still area likely less profitable core wireless business result spending atampt become much leveraged past netdebttoadjustedebitda ratio climbed 23 verizon since acquired half verizon wireless result atampt lost rating credit agencies verizon also bbb rating cfo fran shammo plan get rating back opens new window borrowing costs become important bids come upcoming fcc incentive spectrum auction dividend 192 per share atampt planning pay 67 expected 2016 earnings dividend thats bad company strong cash flows like atampt verizon expects pay 57 expected 2016 earnings whats verizons dividend percentage free cash flow past twelve months 48 compared atampts 66 favorable ratios give verizon room continue growing dividend even earnings cash flow dont grow quickly atampts given strength core wireless business less aggressive investments outside business however believe verizon able improve cash flow comparable rate better rate verizons price free cash flow ratio 121 represents discount atampts 147 ratio even looking forward pe ratio verizon trades 137 times earnings compared atampts 142 ratio despite dividend yield half percentage lower think lower valuation stronger potential dividend growth make verizon better buy article bought shares verizon instead atampt opens new window originally appeared foolcom adam levy opens new window owns shares verizon communications motley fool owns shares recommends 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 copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 590 |
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<p>FOX Business: The Power to Prosper</p>
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<p>The red-hot stock markets continued their October surge on Wednesday amid a growing sense that the U.S. will easily avert a double-dip recession and Europe’s debt mess won’t spiral out of control. However, a late-day slide halved the session's gains and prevented the blue chips from climbing back into the black for the year.</p>
<p>Today's Markets</p>
<p>The Dow Jones Industrial Average jumped 102.55 points, or 0.90%, to 11518.85, the Standard &amp; Poor's 500 gained 11.71 points, or 0.98%, to 1207.25 and the Nasdaq Composite leaped 21.70 points, or 0.84%, to 2604.73. The FOX 50 added 8.86 points, or 1.01%, to 883.31.</p>
<p>While the Dow failed to close above the 11577 level needed to recapture positive territory for 2011, the markets extended what has been an incredible stretch of trading as bearish sentiment has faded. Highlighted by a 330-point Columbus&#160;Day surge, the blue chips have soared 863 points, or 8.1%, since hitting 2011 lows on October 3. Wednesday's big gains left the benchmark index at its highest level since August 31.</p>
<p>“The overall move has been really dramatic. I think it caught most everyone by surprise,” said Peter Kenny, managing director at Knight Capital Group.</p>
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<p>There didn't appear to be any major triggers for the last-minute selloff from the day's highs, but some market players may have been attempting to lock in some gains after the big run up.</p>
<p>Most traders were more impressed by Wall Street's newfound resiliency, which was on full display Wednesday morning. The markets mostly shrugged off Alcoa's (NYSE:AA) earnings dud and Slovakia's initial failure to authorize the euro-zone's all-important rescue fund.</p>
<p>“I think that’s a testament to the shift in investor psychology in a week’s timeframe. If this had hit a week ago, we wouldn’t have seen the strength we started off with,” said Michael James, managing director of equity trading at Wedbush Securities. “The market continues to be dominated by traders and trader sentiment. As we’ve seen, that sentiment can shift from bearish to bullish in a pretty short time frame.”</p>
<p>Edward Dempsey, chief investment officer at Pension Partners, told FOX Business the market could be experiencing a melt-up. He pointed to a number of factors, including slumping bond markets, trailing defensive stocks and outperformance by high-risk stocks,</p>
<p>“The market was pricing in a Lehman like event…that hasn’t happened,” said Edward Dempsey, chief investment officer at Pension Partners. "You can have a melt-up in this environment, meaning the reaction off the low can be extremely violent.”</p>
<p>Buying really picked up steam after the Slovak opposition leader said his party has reached a deal to ratify the $600 billion rescue fund that is seen as crucial to stabilizing Europe's debt debacle. The comments come after the Slovak Parliament rejected the measure, which has been passed by 16 of the 17 euro-zone nations.</p>
<p>Underscoring expectations the rescue fund will eventually be approved, the euro rallied 1% to one-month highs against the dollar and European banks like Deutsche Bank (NYSE:DB) soared. Votes in favor of the stronger rescue fund and pledges to recapitalize the continent's banks have sent global stocks soaring in recent days.</p>
<p>While Alcoa started earnings season off on a disappointing note, many are still hoping for a better-than-expected performance from most of corporate America. Results from banking giant JPMorgan Chase (NYSE:JPM) and search titan Google (NASDAQ:GOOG) are expected later this week and PepsiCo's (NYSE:PEP) results beat the Street.</p>
<p>Wall Street continues to benefit from receding fears of a double-dip recession in the U.S. Those concerns have faded as recent indicators show stronger-than-expected growth in employment, manufacturing activity and retail sales.</p>
<p>“The economic data out of the U.S. has been pretty decent and suggests we are not in a recession,” David Joy, chief market strategist at Ameriprise Financial, told FOX Business. Joy, who said he has a year-end S&amp;P target of 1250, down from 1345 previously, added, “There is a chance to break out to the upside here, but we have some heavy lifting to do.”</p>
<p>The S&amp;P 500 has soared 9.83% since the October 3 lows, while the Nasdaq Composite is up 11.51% over that span. Almost all 30 Dow stocks advanced on Wednesday, led by Walt Disney (NYSE:DIS) and Bank of America (NYSE:BAC). The index's weakest players were McDonald's (NYSE:MCD) and Alcoa.</p>
<p>In the commodities complex, crude oil snapped a five-day winning streak, sinking 23 cents a barrel, or 0.27%, to $85.78. Gold jumped $21.60 a troy ounce, or 1.30%, to $1,681.90.</p>
<p>Corporate Movers</p>
<p>Research in Motion’s (NASDAQ:RIMM) BlackBerry outage spread to North and South America, deepening a third day of disruptions for the struggling company. Outages have also been reported in the U.K., Middle East, Africa, Brazil, Chile and Argentina.</p>
<p>PepsiCo (NYSE:PEP) narrowly surpassed estimates with a non-GAAP profit of $1.31 a share on a 13% rise in revenue to $17.58 billion. The food and beverage giant also backed its 2011 EPS growth target.</p>
<p>Liz Claiborne (NYSE:LIZ) leaped more than 30% after saying it has unloaded its namesake and Monet jewelry brands to J.C. Penney (NYSE:JCP) in a $267.5 million deal. Liz Claiborne said it is also exploring options for a new name.</p>
<p>Hewlett-Packard (NYSE:HPQ) is reconsidering a planned spinoff of its PC division due to new analyses that show it may be ill advised, The Wall Street Journal reported. The biggest concern is about the impact on H-P's buying power with component makers.</p>
<p>Global Markets</p>
<p>London's&#160;FTSE 100&#160;gained 0.85% to 5441.80, Germany's&#160;DAX&#160;jumped 2.21% to 5994.47&#160;and France's&#160;CAC 40&#160;soared 2.42% to 3229.76.</p>
<p>In Asia, the Japanese&#160;Nikkei 225&#160;fell 0.40% to 8738.90 and Hong Kong's&#160;Hang Seng&#160;leaped 1.04% to 18329.50.</p> | true | 0 | fox business power prosper continue reading redhot stock markets continued october surge wednesday amid growing sense us easily avert doubledip recession europes debt mess wont spiral control however lateday slide halved sessions gains prevented blue chips climbing back black year todays markets dow jones industrial average jumped 10255 points 090 1151885 standard amp poors 500 gained 1171 points 098 120725 nasdaq composite leaped 2170 points 084 260473 fox 50 added 886 points 101 88331 dow failed close 11577 level needed recapture positive territory 2011 markets extended incredible stretch trading bearish sentiment faded highlighted 330point columbus160day surge blue chips soared 863 points 81 since hitting 2011 lows october 3 wednesdays big gains left benchmark index highest level since august 31 overall move really dramatic think caught everyone surprise said peter kenny managing director knight capital group advertisement didnt appear major triggers lastminute selloff days highs market players may attempting lock gains big run traders impressed wall streets newfound resiliency full display wednesday morning markets mostly shrugged alcoas nyseaa earnings dud slovakias initial failure authorize eurozones allimportant rescue fund think thats testament shift investor psychology weeks timeframe hit week ago wouldnt seen strength started said michael james managing director equity trading wedbush securities market continues dominated traders trader sentiment weve seen sentiment shift bearish bullish pretty short time frame edward dempsey chief investment officer pension partners told fox business market could experiencing meltup pointed number factors including slumping bond markets trailing defensive stocks outperformance highrisk stocks market pricing lehman like eventthat hasnt happened said edward dempsey chief investment officer pension partners meltup environment meaning reaction low extremely violent buying really picked steam slovak opposition leader said party reached deal ratify 600 billion rescue fund seen crucial stabilizing europes debt debacle comments come slovak parliament rejected measure passed 16 17 eurozone nations underscoring expectations rescue fund eventually approved euro rallied 1 onemonth highs dollar european banks like deutsche bank nysedb soared votes favor stronger rescue fund pledges recapitalize continents banks sent global stocks soaring recent days alcoa started earnings season disappointing note many still hoping betterthanexpected performance corporate america results banking giant jpmorgan chase nysejpm search titan google nasdaqgoog expected later week pepsicos nysepep results beat street wall street continues benefit receding fears doubledip recession us concerns faded recent indicators show strongerthanexpected growth employment manufacturing activity retail sales economic data us pretty decent suggests recession david joy chief market strategist ameriprise financial told fox business joy said yearend sampp target 1250 1345 previously added chance break upside heavy lifting sampp 500 soared 983 since october 3 lows nasdaq composite 1151 span almost 30 dow stocks advanced wednesday led walt disney nysedis bank america nysebac indexs weakest players mcdonalds nysemcd alcoa commodities complex crude oil snapped fiveday winning streak sinking 23 cents barrel 027 8578 gold jumped 2160 troy ounce 130 168190 corporate movers research motions nasdaqrimm blackberry outage spread north south america deepening third day disruptions struggling company outages also reported uk middle east africa brazil chile argentina pepsico nysepep narrowly surpassed estimates nongaap profit 131 share 13 rise revenue 1758 billion food beverage giant also backed 2011 eps growth target liz claiborne nyseliz leaped 30 saying unloaded namesake monet jewelry brands jc penney nysejcp 2675 million deal liz claiborne said also exploring options new name hewlettpackard nysehpq reconsidering planned spinoff pc division due new analyses show may ill advised wall street journal reported biggest concern impact hps buying power component makers global markets londons160ftse 100160gained 085 544180 germanys160dax160jumped 221 599447160and frances160cac 40160soared 242 322976 asia japanese160nikkei 225160fell 040 873890 hong kongs160hang seng160leaped 104 1832950 | 592 |
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<p>"I think we have to look at the fact that we lose 90 people a day from gun violence. This has gone on too long, and it's time the entire country stood up against the NRA." -- <a href="http://mic.com/articles/126715/hillary-clinton-and-bernie-sanders-have-tense-exchange-over-guns-in-democratic-debate" type="external">Hillary Clinton Opens a New Window.</a></p>
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<p>"Unfortunately, our politics have conspired to make it as easy as possible for a terrorist or just a disturbed individual like those in Aurora and Newtown to buy extraordinarily powerful weapons." -- <a href="https://www.whitehouse.gov/the-press-office/2016/06/16/remarks-president-statement-press" type="external">President Obama Opens a New Window.</a></p>
<p>U.S. Army standard-issue M4A1 carbine. This is a true "assault rifle". Image Source: <a href="https://commons.wikimedia.org/wiki/File:M4_PEO_Soldier.jpg" type="external">U.S. Army Opens a New Window.</a></p>
<p>Early in the 2016 presidential campaign, Sen. Bernie Sanders and former Secretary of State Hillary Clinton feuded openly and often on the issue of gun control. Now, the tragic shootings in Orlando, Fla. have put gun control back at center stage.</p>
<p>This week, the U.S. Senate debated four separate bills to further regulate the use and sale of guns, touching on ideas ranging from beefing up the background check system to banning the sale of firearms to anyone on a terror watch list. None of the bills passed in the Senate, but gun control remains a major topic among the media and politicians.</p>
<p>In the immediate aftermath of Orlando, retired generals David Petraeus and Stanley McChrystal and former astronaut Mark Kelly joined a coalition of military veterans calling for new laws "to keep dangerous people from having easy access to guns." McChrystal in particular has averred, "I personally don't think there's any need for [assault weapons] on the streets and particularly around the schools in America."</p>
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<p>Firearms characterized as "assault weapons" played a role in the mass shootings at Cleveland Elementary School in California in 1989, at Columbine in 1999, at Sandy Hook Elementary School and in Aurora, Colo. in 2012, the Umpqua Community College shootings in Oregon in 2015, and now, in the attack in Orlando as well.</p>
<p>But what exactly are "assault weapons"?</p>
<p>According to popular pro-gun website <a href="http://www.assaultweapon.info/" type="external">assaultweapon.info Opens a New Window.</a>, the phrase "assault weapons" is often confused with the more precise term "assault rifle". Specifically, an assault rifle is a machine gun such as an M4A1 carbine (pictured above), which can fire both semi-automatically (pull the trigger once, and one bullet comes out) or automatically (hold the trigger, and the weapon keeps firing till empty).</p>
<p>With a few exceptions, the sale or purchase of assault rifles is illegal in the United States -- and has been tightly regulated since 1986.</p>
<p>This AR-556 carbine, in contrast, is not an assault rifle -- but you might not know from looking. Image Source: <a href="http://www.ruger.com/products/ar556/specSheets/8500.html" type="external">Sturm, Ruger Opens a New Window.</a></p>
<p>In contrast, weapons that resemble assault rifles cosmetically but are incapable of full-automatic fire havebeen popularly referred to as "assault weapons" -- a term that gained legal significance with the federal Assault Weapons Ban in 1994. In the U.S., this class of firearm includes such semi-automatic rifles as <a href="http://www.fool.com/investing/general/2014/11/23/ar-15-rifle-price-drops-is-this-gun-a-good-investm.aspx?source=eptfxblnk0000004" type="external">the AR-15 Opens a New Window.</a> and certain <a href="http://www.fool.com/investing/general/2014/11/29/ak-47-rifle-price-drops-is-this-gun-a-good-investm.aspx?source=eptfxblnk0000004" type="external">AK-47 variants Opens a New Window.</a>, as well as large semi-automatic pistols such as the TEC-9 and semi-automatic carbines firing pistol-caliber ammunition.</p>
<p><a href="http://online.wsj.com/article/SB10001424127887323723104578185271857424036.html" type="external">The Wall Street Journal Opens a New Window.</a> sums up the difference thusly: So-called assault weapons "look like machine guns, but they do not function like machine guns." Rather, they "function like every other normal firearm -- they fire only one bullet each time the trigger is pressed."</p>
<p>The 1994 Assault Weapons Ban expired in 2004 and was not renewed. Still, one question remains: If true assault rifles (i.e., machine guns) are already mostly illegal, why would the government also ban semi-automatic weapons that only resemble assault rifles while permitting the sale of .22-caliber target rifles, .308-caliber hunting rifles, and other firearms that operate exactly the same way?</p>
<p>Some critics see a difference in muzzle velocity. Citing data from gun manufacturer Sturm, Ruger , <a href="https://publichealthwatch.wordpress.com/2015/10/10/fact-check-the-gun-lobby-claims-assault-weapons-are-no-more-dangerous-than-hunting-rifles-the-human-body-begs-to-differ/" type="external">PublicHealthWatch Opens a New Window.</a> has argued that the muzzle velocity of an AR-15 rifle firing 5.56 NATO or .223 caliber ammunition can be several times higher than the velocity of a .22 target rifle, for example, with correspondingly greater destructive power.</p>
<p>Magazine capacity is another factor. Generally speaking, you can pack more 5.56 mm or .223-caliber ammunition into an "assault weapon" magazine than a similar-size magazine on a more powerful .308 hunting rifle. That said, there are .308 magazines for sale that can carry 50 rounds, and large-capacity .22 magazines can hold in excess of 100 rounds -- just as there are .223-caliber drum magazines holding 100 rounds. And keep in mind that the typical .308 bullet weighs two to three times as much as the 5.56 NATO.</p>
<p>Honestly, I think the <a href="http://www.vpc.org/studies/awaconc.htm" type="external">Violence Policy Center Opens a New Window.</a>, a gun control organization,hits closest to the mark when it argues in favor of banning "assault weapons", because those are the easiest targets. Says VPC: Assault weapons' "menacing looks, coupled with the public's confusion over fully automatic machine guns versus semi-automatic assault weapons ... increase the chance of public support for restrictions on these weapons."</p>
<p>Smith &amp; Wesson Model M&amp;P15. Source: <a href="http://www.smith-wesson.com/webapp/wcs/stores/servlet/Product4_750001_750051_802555_-1_757784_757784_757784_ProductDisplayErrorView_Y" type="external">Smith &amp; Wesson Opens a New Window.</a></p>
<p>So "menacing looks" may be the crux of the matter. When you get down to it, the movement to ban assault weapons begins to resemble a marketing campaign -- and, in fact, a marketing campaign that worked once before, in 1994.</p>
<p>Will it work again? And what would that mean for investors in the gun industry?</p>
<p>Last week's failed efforts to enact new firearms regulations in the immediate aftermath of Orlando suggests gun reform efforts will not succeed this year. But with a presidential election in the offing, and the potential for a change of control in the House and Senate, there's no telling what might happen next year.</p>
<p>Just the chance of new regulation could send gun owners stampeding to the gun store to <a href="http://www.fool.com/investing/general/2014/08/31/the-22-ammo-shortage-mystery-solved.aspx?source=eptfxblnk0000004" type="external">stock up on guns 'n' ammo Opens a New Window.</a> "before they ban them." And this, in turn, could send investors stampeding to <a href="http://www.fool.com/investing/general/2012/12/11/3-stocks-set-to-soar-2.aspx?source=eptfxblnk0000004" type="external">buy shares of gun stocks Opens a New Window.</a>. But which gun stocks in particular? Which companies make "assault weapons" anyway, and which companies' stocks are likely to benefit?</p>
<p>It's almost easier to tell you who doesn't make them. Sturm, Ruger, Smith &amp; Wesson , and even privately owned Bushmaster all make various versions of the AR-15. And while Bushmaster is not publicly traded, Sturm, Ruger and Smith &amp; Wesson most definitely are -- they're also the two most likely beneficiaries of surging demand for firearms.</p>
<p>Both Sturm, Ruger and Smith &amp; Wesson make AR-15 variants that fit the popular conception of what an assault weapon looks like -- even if their guns are not assault rifles. And while the average price-to-earnings ratio of stocks on the S&amp;P 500 is more than 24 times, both Sturm, Ruger and Smith &amp; Wesson sell for P/E multiples in the mid-teens -- making them attractive investment options.</p>
<p>As the drumbeat for gun regulation gets louder, the case for buying Sturm, Ruger and Smith &amp; Wesson stock will only get stronger.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/25/what-are-assault-weapons-and-who-makes-them.aspx" type="external">What Are Assault Weapons -- And Who Makes Them? Opens a New Window.</a> originally appeared on Fool.com.</p>
<p>Fool contributor <a href="http://my.fool.com/profile/TMFDitty/info.aspx?source=eptfxblnk0000004" type="external">Rich Smith Opens a New Window.</a>does not own shares of, nor is he short, any company named above. You can find him on <a href="http://caps.fool.com/?source=eptfxblnk0000004" type="external">Motley Fool CAPS Opens a New Window.</a>, publicly pontificating under the handle <a href="http://caps.fool.com/ViewPlayer.aspx?t=01002844399633209838&amp;source=eptfxblnk0000004" type="external">TMFDitty Opens a New Window.</a>, where he's currently ranked No. 288 out of more than 75,000 rated members.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>
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The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | think look fact lose 90 people day gun violence gone long time entire country stood nra hillary clinton opens new window continue reading unfortunately politics conspired make easy possible terrorist disturbed individual like aurora newtown buy extraordinarily powerful weapons president obama opens new window us army standardissue m4a1 carbine true assault rifle image source us army opens new window early 2016 presidential campaign sen bernie sanders former secretary state hillary clinton feuded openly often issue gun control tragic shootings orlando fla put gun control back center stage week us senate debated four separate bills regulate use sale guns touching ideas ranging beefing background check system banning sale firearms anyone terror watch list none bills passed senate gun control remains major topic among media politicians immediate aftermath orlando retired generals david petraeus stanley mcchrystal former astronaut mark kelly joined coalition military veterans calling new laws keep dangerous people easy access guns mcchrystal particular averred personally dont think theres need assault weapons streets particularly around schools america advertisement firearms characterized assault weapons played role mass shootings cleveland elementary school california 1989 columbine 1999 sandy hook elementary school aurora colo 2012 umpqua community college shootings oregon 2015 attack orlando well exactly assault weapons according popular progun website assaultweaponinfo opens new window phrase assault weapons often confused precise term assault rifle specifically assault rifle machine gun m4a1 carbine pictured fire semiautomatically pull trigger one bullet comes automatically hold trigger weapon keeps firing till empty exceptions sale purchase assault rifles illegal united states tightly regulated since 1986 ar556 carbine contrast assault rifle might know looking image source sturm ruger opens new window contrast weapons resemble assault rifles cosmetically incapable fullautomatic fire havebeen popularly referred assault weapons term gained legal significance federal assault weapons ban 1994 us class firearm includes semiautomatic rifles ar15 opens new window certain ak47 variants opens new window well large semiautomatic pistols tec9 semiautomatic carbines firing pistolcaliber ammunition wall street journal opens new window sums difference thusly socalled assault weapons look like machine guns function like machine guns rather function like every normal firearm fire one bullet time trigger pressed 1994 assault weapons ban expired 2004 renewed still one question remains true assault rifles ie machine guns already mostly illegal would government also ban semiautomatic weapons resemble assault rifles permitting sale 22caliber target rifles 308caliber hunting rifles firearms operate exactly way critics see difference muzzle velocity citing data gun manufacturer sturm ruger publichealthwatch opens new window argued muzzle velocity ar15 rifle firing 556 nato 223 caliber ammunition several times higher velocity 22 target rifle example correspondingly greater destructive power magazine capacity another factor generally speaking pack 556 mm 223caliber ammunition assault weapon magazine similarsize magazine powerful 308 hunting rifle said 308 magazines sale carry 50 rounds largecapacity 22 magazines hold excess 100 rounds 223caliber drum magazines holding 100 rounds keep mind typical 308 bullet weighs two three times much 556 nato honestly think violence policy center opens new window gun control organizationhits closest mark argues favor banning assault weapons easiest targets says vpc assault weapons menacing looks coupled publics confusion fully automatic machine guns versus semiautomatic assault weapons increase chance public support restrictions weapons smith amp wesson model mampp15 source smith amp wesson opens new window menacing looks may crux matter get movement ban assault weapons begins resemble marketing campaign fact marketing campaign worked 1994 work would mean investors gun industry last weeks failed efforts enact new firearms regulations immediate aftermath orlando suggests gun reform efforts succeed year presidential election offing potential change control house senate theres telling might happen next year chance new regulation could send gun owners stampeding gun store stock guns n ammo opens new window ban turn could send investors stampeding buy shares gun stocks opens new window gun stocks particular companies make assault weapons anyway companies stocks likely benefit almost easier tell doesnt make sturm ruger smith amp wesson even privately owned bushmaster make various versions ar15 bushmaster publicly traded sturm ruger smith amp wesson definitely theyre also two likely beneficiaries surging demand firearms sturm ruger smith amp wesson make ar15 variants fit popular conception assault weapon looks like even guns assault rifles average pricetoearnings ratio stocks sampp 500 24 times sturm ruger smith amp wesson sell pe multiples midteens making attractive investment options drumbeat gun regulation gets louder case buying sturm ruger smith amp wesson stock get stronger article assault weapons makes opens new window originally appeared foolcom fool contributor rich smith opens new windowdoes shares short company named find motley fool caps opens new window publicly pontificating handle tmfditty opens new window hes currently ranked 288 75000 rated membersthe 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 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<p>Image source: Nucor.</p>
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<p>Nucor Corporation (NYSE: NUE) is one of the largest U.S. steel mills. It's also one of the most profitable today, in the midst of a deep industry downturn that's been in place since the end of the Great Recession.Sound impressive? Here are eight reasons to buy Nucor Corporation and never sell.</p>
<p>So the first reason is really something that would apply to just about any steel mill, but it's important. Steel is one of the key foundations on which our modern society is built. It gets put in our buildings, our roads, our machines. Although aluminum has its benefits, it's unlikely that it will never replace steel. So, the first reason to own Nucor is the vital importance of what it creates.</p>
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<p>Making a vital product isn't enough to recommend a stock, though. But here's another notable fact: While Nucor lost money in 2009, the tail end of the recession, it has been profitable since. Competitor AK Steel (NYSE: AKS) has bled red ink every year since the recession, United States Steel (NYSE: X) has lost money in six of the last seven years, and ArcelorMittal's (NYSE: MT) bottom line has been in the red for the past four years.</p>
<p>You can argue that each of these companies is heavily weighted toward blast furnaces (more on that later), but even Steel Dynamics (NASDAQ: STLD), which focuses on electric arc technology like Nucor uses, lost money last year while Nucor remained in the black. To put it another way, Nucor has shown a resilience that competitors simply haven't.</p>
<p><a href="http://ycharts.com/companies/NUE/basic_continuous_operations_annual" type="external">NUE EPS Basic from Continuing Operations (Annual)</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>One of the reasons for the company's performance is its financial strength. At the end of the second quarter, Nucor's long-term debt made up around 35% or so of its capital structure. AK Steel's long-term debt is more than 100% of its capital structure because shareholder equity is negative. There are others in the steel space with strong balance sheets, but to put things simply, Nucor's debt burden sits at the low end of the industry. (AK Steel, not so much.)</p>
<p>Then there's the money Nucor has to burn. At the end of the second quarter it had nearly $1.8 billion of cash. It also had an undrawn credit facility that doesn't expire until 2021 worth another $1.5 billion. U.S. Steel had a billion less cash at its disposal -- not a good thing when you're bleeding on the bottom line. AK Steel had just $56 million in cash as of the second quarter, showing just how hard this downturn has been on the company.</p>
<p>I'm cherry-picking numbers, to some extent. But when you put Nucor up against some of the biggest names in the steel industry, it stands out financially, which gives it a lot of room to maneuver.</p>
<p>One of the big reasons Nucor has been able to shine while others haven't is its technology. The company, and competitor Steel Dynamics, makes heavy use of electric arc furnaces. These are smaller and easier to ramp up and down than the blast furnaces that are the backbone of ArcelorMittal, AK Steel, and U.S. Steel. So it's easier for Nucor to adjust to demand, which helps to keep costs down in bad times -- like today. (Blast furnaces are most economical when running at full capacity.)</p>
<p>Nucor's electric arc mills also make heavy use of scrap metal, which can help to keep costs in check. This is because the ability to use scrap provides an alternative to iron ore when commodity prices are high. Blast furnaces have to be fed iron ore, high prices or not.</p>
<p>In addition to Nucor's use of more flexible facilities, it also has a more flexible relationship with its employees. This is because it uses a profit-sharing system that rewards employees during the good times, but asks them to feel some pain during the bad times. Take a look at the company's SG&amp;A expenses over time, and you'll notice that Nucor is routinely at the bottom of the group, meaning it runs a leaner ship. Profit sharing is a big part of that.</p>
<p><a href="http://ycharts.com/companies/NUE/sga_expense_cs_rev" type="external">NUE SG&amp;A Expense (% of Quarterly Revenues)</a> data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>The next reason to buy Nucor is made possible by some of the items above, but that doesn't make it any less important. Nucor tends to invest during downturns so that it comes out the other side a stronger company. This can sound like management boilerplate, but it's more than that at Nucor. For example, the steel company has built two direct reduced iron (DRI) facilities during this downturn that will help it keep costs in check in the future.</p>
<p>Neither facility got off to a good start, losing money at the get go as they worked the kinks out. And then iron ore prices fell, leading Nucor to buy iron ore on the open market instead of using its new facilities for a spell. That's not such a good thing, but they weren't built for today's market. The DRI plants offer a cheaper alternative to iron ore when commodity prices are high. So when the cyclical commodity market picks up, and commodity prices aren't as favorable, Nucor will have additional options for keeping its costs down.</p>
<p>Long-term thinking like this is exactly what I like to see in my investments, even if the costs are higher over the short term.</p>
<p>The last reason, if one more is needed, is all about investors getting what they deserve. In this case, that's dividends. Nucor has increased its dividend for 43 consecutive years. That's not just impressive within the steel industry (no other steel company here comes close to matching the streak), it's impressive for any industry.</p>
<p>And this consistent return of value to shareholders is only possible because steel is so important to global commerce, Nucor has a solid balance sheet with low debt and plenty of cash, it has some of the best-run mills in the world making use of flexible technology and manned by flexible workers, and it uses this strength, and its ability to remain profitable during the most difficult times, to get better during downturns by investing in the future. You don't get to 43 years of annual dividend hikes on a fluke!</p>
<p>If you looked at these eight reasons to buy Nucor and never sell and were shocked at how it stands out from the pack, you might want to consider making it a part of your core portfolio. It's a key part of mine.</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/ReubenGBrewer/info.aspx" type="external">Reuben Brewer Opens a New Window.</a> owns shares of Nucor. The Motley Fool recommends Nucor. 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 nucor continue reading nucor corporation nyse nue one largest us steel mills also one profitable today midst deep industry downturn thats place since end great recessionsound impressive eight reasons buy nucor corporation never sell first reason really something would apply steel mill important steel one key foundations modern society built gets put buildings roads machines although aluminum benefits unlikely never replace steel first reason nucor vital importance creates advertisement making vital product isnt enough recommend stock though heres another notable fact nucor lost money 2009 tail end recession profitable since competitor ak steel nyse aks bled red ink every year since recession united states steel nyse x lost money six last seven years arcelormittals nyse mt bottom line red past four years argue companies heavily weighted toward blast furnaces later even steel dynamics nasdaq stld focuses electric arc technology like nucor uses lost money last year nucor remained black put another way nucor shown resilience competitors simply havent nue eps basic continuing operations annual data ycharts opens new window one reasons companys performance financial strength end second quarter nucors longterm debt made around 35 capital structure ak steels longterm debt 100 capital structure shareholder equity negative others steel space strong balance sheets put things simply nucors debt burden sits low end industry ak steel much theres money nucor burn end second quarter nearly 18 billion cash also undrawn credit facility doesnt expire 2021 worth another 15 billion us steel billion less cash disposal good thing youre bleeding bottom line ak steel 56 million cash second quarter showing hard downturn company im cherrypicking numbers extent put nucor biggest names steel industry stands financially gives lot room maneuver one big reasons nucor able shine others havent technology company competitor steel dynamics makes heavy use electric arc furnaces smaller easier ramp blast furnaces backbone arcelormittal ak steel us steel easier nucor adjust demand helps keep costs bad times like today blast furnaces economical running full capacity nucors electric arc mills also make heavy use scrap metal help keep costs check ability use scrap provides alternative iron ore commodity prices high blast furnaces fed iron ore high prices addition nucors use flexible facilities also flexible relationship employees uses profitsharing system rewards employees good times asks feel pain bad times take look companys sgampa expenses time youll notice nucor routinely bottom group meaning runs leaner ship profit sharing big part nue sgampa expense quarterly revenues data ycharts next reason buy nucor made possible items doesnt make less important nucor tends invest downturns comes side stronger company sound like management boilerplate nucor example steel company built two direct reduced iron dri facilities downturn help keep costs check future neither facility got good start losing money get go worked kinks iron ore prices fell leading nucor buy iron ore open market instead using new facilities spell thats good thing werent built todays market dri plants offer cheaper alternative iron ore commodity prices high cyclical commodity market picks commodity prices arent favorable nucor additional options keeping costs longterm thinking like exactly like see investments even costs higher short term last reason one needed investors getting deserve case thats dividends nucor increased dividend 43 consecutive years thats impressive within steel industry steel company comes close matching streak impressive industry consistent return value shareholders possible steel important global commerce nucor solid balance sheet low debt plenty cash bestrun mills world making use flexible technology manned flexible workers uses strength ability remain profitable difficult times get better downturns investing future dont get 43 years annual dividend hikes fluke looked eight reasons buy nucor never sell shocked stands pack might want consider making part core portfolio key part mine 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 reuben brewer opens new window owns shares nucor 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 | 697 |
<p>The&#160;iShares Nasdaq Biotechnology Index has tacked on a healthy gain of around 15% so far this year, without any help from&#160;Celldex Therapeutics, Inc. (NASDAQ: CLDX), Agenus Inc. (NASDAQ: AGEN), or Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX). All three of these relatively small biotechs have slipped by double-digit percentages in 2017.</p>
<p>Is the pessimism justified, or has the market underestimated the potential value drivers within these companies' drug development pipelines? Let's take a cool-headed look at each to see if there's something for long-term value investors to get excited about.</p>
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<p>This biotech took a <a href="https://www.fool.com/investing/2017/06/06/heres-why-celldex-therapeutics-inc-fell-today.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">few steps back Opens a New Window.</a> earlier this summer, when one of its clinical-stage candidates, varlilumab, generated less than thrilling results for 21 patients with advanced-stage colorectal and ovarian cancer when given in combination with Opdivo from Bristol-Myers Squibb.</p>
<p>Another study with its lead candidate, glemba, did a little better. Among 62 heavily pretreated melanoma patients given the antibody-drug conjugate, a type of drug that delivers chemo directly to cancer cells, 16% exhibited tumor shrinkage. That's an impressive result for patients who had exhausted existing treatment options, but it might not be enough to make waves in the increasingly crowded pool of new melanoma drugs.</p>
<p>It's a good thing glemba still has a chance to make a major splash for patients with an extremely difficult-to-treat form of breast cancer that lacks three common targets existing therapies aim for. In a previous study with glemba, triple-negative breast cancer patients who relapsed after taking other drugs showed an enormous survival benefit. An ongoing trial with a lot more patients from this well-defined group is expected to wrap up early next year.</p>
<p>Celldex Therapeutics stock has fallen about 31% this year, leaving the company with a tiny $145 million <a href="https://www.fool.com/knowledge-center/what-is-enterprise-value-and-why-is-it-important.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">enterprise value Opens a New Window.</a>. If results from glemba's ongoing triple-negative breast cancer study fall in line with previous observations, shares at this price will look like a tremendous bargain in retrospect.</p>
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<p>This biotech bargain isn't for the faint of heart, though. The current lack of enthusiasm out there for the rest of the company's clinical-stage candidates would make a surprise upset extremely painful.</p>
<p>Unfortunately for Agenus Inc., its lead candidates are in the same class as drugs that recently failed in a key combination study for AstraZeneca. Sure, the Mystic trial failure doesn't bode well for a similar combo from Agenus, but I think the stock is in deep value territory once you look at the bigger picture.</p>
<p>Agenus has lost about 33% of its value since Astra revealed that its PD-1 and CTLA-4 <a href="https://www.fool.com/investing/2017/07/27/did-the-checkpoint-inhibitor-bubble-just-burst.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">checkpoint inhibitors Opens a New Window.</a> didn't lead to a significant improvement over standard chemo for advanced-stage lung cancer patients that hadn't been treated with anything yet. Missing the mark for this large group of patients that tend to stay on therapy longer than those that have already relapsed suggests lower peak sales potential, but tiny Agenus doesn't need a megablockbuster to more than double your money.</p>
<p>At recent prices Agenus sports a market cap of just $351 million, which means moderate success with just one oncology candidate in its robust pipeline would lead to impressive gains for patient investors. The company's wholly owned PD-1 and CTLA-4 checkpoint inhibitors are still in early to midstage clinical trials, plus Incyte is funding development of candidates aimed at the GITR and OX40 checkpoints in return for a 15% royalty on any future sales if they succeed.</p>
<p>It will be years before we can better estimate the potential in Agenus' pipeline, but I expect the company to burn through cash a relatively slow pace. An application for a shingles vaccine from GlaxoSmithKline that contains an adjuvant Agenus developed is under review at the FDA, and a widely expected approval could lead to a steady royalty stream from the big pharma partner.</p>
<p>This small-cap biotech stock <a href="https://www.fool.com/investing/2017/08/09/heres-why-progenics-pharmaceuticals-inc-lost-groun.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">sold off Opens a New Window.</a> in response to lackluster sales growth for its first drug, but the most important announcement in its latest earnings report went largely unnoticed. In my mind, news that the company expects to complete a rolling submission for Azedra this August should have lifted the stock.</p>
<p>It's easy to understand the disappointment over Relistor sales. Progenics' marketing partner,&#160;Valeant Pharmaceuticals, had built up big expectations for a tablet version of the opioid-induced constipation treatment that just haven't materialized.</p>
<p>With all eyes on Relistor, Azedra has flown under the radar despite posting positive results in the adrenal gland cancer study supporting the application on its way to the FDA. The vast improvement over existing treatments the candidate appears to provide led the agency to offer Progenics an expedited review once the submission is complete.</p>
<p>If approved, annual Azedra sales could top out around $250 million. That isn't huge by today's standards, but neither is Progenics' recent enterprise value of about $297 million. With Relistor royalties steadily rolling in, and a solid chance of launching wholly owned Azedra next year, this might be the best bargain in biotech right now.</p>
<p>10 stocks we like better than Celldex TherapeuticsWhen 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=4fde7013-9649-45c3-b84a-ad020d4b4920&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Celldex Therapeutics 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=4fde7013-9649-45c3-b84a-ad020d4b4920&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of August 1, 2017</p>
<p><a href="http://my.fool.com/profile/crenauer/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">Cory Renauer Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends GlaxoSmithKline and Valeant Pharmaceuticals. The Motley Fool recommends AstraZeneca and Celldex Therapeutics. 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=a3e72b76-7e98-11e7-b273-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | the160ishares nasdaq biotechnology index tacked healthy gain around 15 far year without help from160celldex therapeutics inc nasdaq cldx agenus inc nasdaq agen progenics pharmaceuticals inc nasdaq pgnx three relatively small biotechs slipped doubledigit percentages 2017 pessimism justified market underestimated potential value drivers within companies drug development pipelines lets take coolheaded look see theres something longterm value investors get excited continue reading biotech took steps back opens new window earlier summer one clinicalstage candidates varlilumab generated less thrilling results 21 patients advancedstage colorectal ovarian cancer given combination opdivo bristolmyers squibb another study lead candidate glemba little better among 62 heavily pretreated melanoma patients given antibodydrug conjugate type drug delivers chemo directly cancer cells 16 exhibited tumor shrinkage thats impressive result patients exhausted existing treatment options might enough make waves increasingly crowded pool new melanoma drugs good thing glemba still chance make major splash patients extremely difficulttotreat form breast cancer lacks three common targets existing therapies aim previous study glemba triplenegative breast cancer patients relapsed taking drugs showed enormous survival benefit ongoing trial lot patients welldefined group expected wrap early next year celldex therapeutics stock fallen 31 year leaving company tiny 145 million enterprise value opens new window results glembas ongoing triplenegative breast cancer study fall line previous observations shares price look like tremendous bargain retrospect advertisement biotech bargain isnt faint heart though current lack enthusiasm rest companys clinicalstage candidates would make surprise upset extremely painful unfortunately agenus inc lead candidates class drugs recently failed key combination study astrazeneca sure mystic trial failure doesnt bode well similar combo agenus think stock deep value territory look bigger picture agenus lost 33 value since astra revealed pd1 ctla4 checkpoint inhibitors opens new window didnt lead significant improvement standard chemo advancedstage lung cancer patients hadnt treated anything yet missing mark large group patients tend stay therapy longer already relapsed suggests lower peak sales potential tiny agenus doesnt need megablockbuster double money recent prices agenus sports market cap 351 million means moderate success one oncology candidate robust pipeline would lead impressive gains patient investors companys wholly owned pd1 ctla4 checkpoint inhibitors still early midstage clinical trials plus incyte funding development candidates aimed gitr ox40 checkpoints return 15 royalty future sales succeed years better estimate potential agenus pipeline expect company burn cash relatively slow pace application shingles vaccine glaxosmithkline contains adjuvant agenus developed review fda widely expected approval could lead steady royalty stream big pharma partner smallcap biotech stock sold opens new window response lackluster sales growth first drug important announcement latest earnings report went largely unnoticed mind news company expects complete rolling submission azedra august lifted stock easy understand disappointment relistor sales progenics marketing partner160valeant pharmaceuticals built big expectations tablet version opioidinduced constipation treatment havent materialized eyes relistor azedra flown radar despite posting positive results adrenal gland cancer study supporting application way fda vast improvement existing treatments candidate appears provide led agency offer progenics expedited review submission complete approved annual azedra sales could top around 250 million isnt huge todays standards neither progenics recent enterprise value 297 million relistor royalties steadily rolling solid chance launching wholly owned azedra next year might best bargain biotech right 10 stocks like better celldex therapeuticswhen 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 celldex therapeutics wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 cory renauer opens new window position stocks mentioned motley fool owns shares recommends glaxosmithkline valeant pharmaceuticals motley fool recommends astrazeneca celldex therapeutics motley fool disclosure policy opens new window | 609 |
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<p>In 1991, director James Cameron brought Terminator 2: Judgment Day to theaters, and it quickly became one of the most iconic classics of the decade. The premise of the movie, and of the trilogy of Terminator movies for that matter, is that everyday machines had become self-aware. With humans turning over more and more control of day-to-day activities to machines, they become vulnerable to attack by SkyNet, the artificial intelligence that eventually does turn on them and attacks.</p>
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<p>Thankfully, humans are still very much in charge today. But, if consumers had their way, machines would be doing a lot more in their day-to-day lives...including investing.</p>
<p>Image source: Getty Images.</p>
<p>According to a <a href="https://newsroom.accenture.com/news/seven-out-of-10-consumers-globally-welcome-robo-advice-for-banking-insurance-and-retirement-services-according-to-accenture.htm" type="external">newly published survey Opens a New Window.</a> from Accentureof nearly 33,000 consumers in 18 countries and regions, a vast majority would consent to the use of robo-advice when it comes to a number of financial decisions. Here's how the results panned out:</p>
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<p>That's right, folks, nearly eight in 10 consumers would be willing to leave "SkyNet" in charge of their investment portfolios.</p>
<p>There are plenty of perceived benefits from entrusting your investment portfolio to a machine. Obviously, it would remove the element of emotion from the equation, thus eliminating any chance you'd have of making a rash investment decision to buy or sell an asset based on how you felt.</p>
<p>Additionally, robo-advisors would potentially help compensate for the lack of investing experience that new investors bring to the table. For example, the U.S. stock market has thousands of publicly traded companies to choose from, as well as complex asset structures (e.g., exchange-traded notes (ETN) or leveraged electronic-traded funds (ETFs)), which can make choosing an investment somewhat overwhelming for a new investor. Allowing a proverbial SkyNet to handle your investing strategy would remove the hassle of having little or no investing experience.</p>
<p>Image source: Pixabay.</p>
<p>As <a href="http://www.usatoday.com/story/money/personalfinance/2017/01/31/survey-most-consumers-welcome-robo-advice/96854916/" type="external">recently reported by USA TODAY Opens a New Window.</a>, a hybrid fund launched by Vanguard that pairs investing algorithms implemented by machines with readily accessible human financial advisors has netted more than $52 billion in assets under management since its May 2015 launch.</p>
<p>However, trusting a machine to invest for you based on algorithms could mean setting yourself up for disaster.</p>
<p>One of the biggest issues with trusting your money to a proverbial "SkyNet" is that you'll gain no true understanding of what you're investing in. Not understanding what you're investing in is a major cardinal sin -- and one of the easiest ways to lose money.</p>
<p>On the other side the coin, learning to invest for yourself means not having to pay fees to someone else to invest for you. Plus, with more than 1,000 ETFs to choose from, investors can spread their risk around, just like a mutual fund or hedge fund manager, while buying just a single security. Even beginning investors are liable to find that large ETFs are easier to understand than they probably realize.</p>
<p>Secondly, as pointed out by USA TODAY, robo-advisors don't take into account the social preferences of investors. In other words, if an investor has strong feelings against vice stocks (e.g., tobacco or alcohol companies), or they have ethical issues with a company or industry, a machine or software isn't going to recognize that. The only way to stay true to your social value is to invest for yourself or with the help of a financial advisor.</p>
<p>Image source: Getty Images.</p>
<p>Another problem with entrusting your money to algorithms is they overlook major life events that might alter your investment outlook. For instance, buying a home, starting a family, or having a large and unexpected medical bill are all things that can affect your saving and investing trajectory. If you were managing your own money, or you were dealing with a financial professional, it would be easy to manipulate your investing strategy to account for what could be new goals. Machines don't account for these life events.</p>
<p>However, the biggest issue with trusting a proverbial SkyNet is that it could kill your chance of allowing compounding do its work. Machines are based on algorithms, and those algorithms often mean lots, and lots, of trades. Algorithms are often looking to profit from fractional moves in a stock, perhaps dozens, hundreds, or thousands of times a day. Can you imagine the commission costs and short-term capital gains such as a strategy could entail (assuming you were lucky enough to turn a profit)?</p>
<p>The data shows, though, that holding high-quality stocks and other assets over the long term and not trading as often offers you the best chance to build your nest egg. For instance, hanging onto high-quality dividend stocks and reinvesting those dividends back into more shares of dividend-paying stock is a strategy that some of the smartest money managers use to build wealth for their clients.</p>
<p>In the words of Arnold Schwarzenegger, I'd suggest saying "hasta la vista" to the idea of allowing a robo-advisor to invest your money.</p>
<p>The $16,122 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: One easy trick could pay you as much as $16,122 more...each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. <a href="http://www.fool.com/mms/mark/ecap-foolcom-social-security?aid=8727&amp;source=irreditxt0000002&amp;ftm_cam=ryr-ss-intro-report&amp;ftm_pit=3186&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Simply click here to discover how to learn more about these strategies Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/TMFUltraLong/info.aspx" type="external">Sean Williams Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends Accenture. 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 | 1991 director james cameron brought terminator 2 judgment day theaters quickly became one iconic classics decade premise movie trilogy terminator movies matter everyday machines become selfaware humans turning control daytoday activities machines become vulnerable attack skynet artificial intelligence eventually turn attacks continue reading thankfully humans still much charge today consumers way machines would lot daytoday livesincluding investing image source getty images according newly published survey opens new window accentureof nearly 33000 consumers 18 countries regions vast majority would consent use roboadvice comes number financial decisions heres results panned advertisement thats right folks nearly eight 10 consumers would willing leave skynet charge investment portfolios plenty perceived benefits entrusting investment portfolio machine obviously would remove element emotion equation thus eliminating chance youd making rash investment decision buy sell asset based felt additionally roboadvisors would potentially help compensate lack investing experience new investors bring table example us stock market thousands publicly traded companies choose well complex asset structures eg exchangetraded notes etn leveraged electronictraded funds etfs make choosing investment somewhat overwhelming new investor allowing proverbial skynet handle investing strategy would remove hassle little investing experience image source pixabay recently reported usa today opens new window hybrid fund launched vanguard pairs investing algorithms implemented machines readily accessible human financial advisors netted 52 billion assets management since may 2015 launch however trusting machine invest based algorithms could mean setting disaster one biggest issues trusting money proverbial skynet youll gain true understanding youre investing understanding youre investing major cardinal sin one easiest ways lose money side coin learning invest means pay fees someone else invest plus 1000 etfs choose investors spread risk around like mutual fund hedge fund manager buying single security even beginning investors liable find large etfs easier understand probably realize secondly pointed usa today roboadvisors dont take account social preferences investors words investor strong feelings vice stocks eg tobacco alcohol companies ethical issues company industry machine software isnt going recognize way stay true social value invest help financial advisor image source getty images another problem entrusting money algorithms overlook major life events might alter investment outlook instance buying home starting family large unexpected medical bill things affect saving investing trajectory managing money dealing financial professional would easy manipulate investing strategy account could new goals machines dont account life events however biggest issue trusting proverbial skynet could kill chance allowing compounding work machines based algorithms algorithms often mean lots lots trades algorithms often looking profit fractional moves stock perhaps dozens hundreds thousands times day imagine commission costs shortterm capital gains strategy could entail assuming lucky enough turn profit data shows though holding highquality stocks assets long term trading often offers best chance build nest egg instance hanging onto highquality dividend stocks reinvesting dividends back shares dividendpaying stock strategy smartest money managers use build wealth clients words arnold schwarzenegger id suggest saying hasta la vista idea allowing roboadvisor invest money 16122 social security bonus retirees completely overlook youre like americans youre years behind retirement savings handful littleknown social security secrets could help ensure boost retirement income example one easy trick could pay much 16122 moreeach year learn maximize social security benefits think could retire confidently peace mind simply click discover learn strategies opens new window sean williams opens new window position stocks mentioned motley fool recommends accenture motley fool disclosure policy opens new window | 549 |
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<p>As companies like <a href="" type="internal">Netflix</a> (NFLX) and <a href="" type="internal">Facebook</a> have learned, having a rabid Internet fan base has its downsides. Probably no company is more aware of that than <a href="" type="internal">eBay</a> (EBAY), an Internet pioneer with 90 million active users. It's not always easy to satisfy them all.</p>
<p>Continue Reading Below</p>
<p>The site angered some of its devoted users this holiday season with its new slogan, "Buy it new. Buy it now." The company's first big marketing effort in two years aims to seduce shoppers using iPhones, Androids and other mobile devices with its wealth of brand-new, brand-name items. Many longtime sellers of used goods on eBay claim that the marketplace's focus on new products hurts their business.</p>
<p>EBay has come a long way since its days as an Internet flea market. Today, 62% of eBay listings are fixed price, not auctions, and 70% are new, eBay's CMO Richelle Parham told DailyFinance. By comparison, in 2008, only 43% of eBay listings were fixed price. But the brand's image has lagged behind. In the past few years, eBay has met with steep competition from other marketplaces like <a href="" type="internal">Amazon</a>, which offer new items as well as perks like free shipping.</p>
<p>So far, the app featured in the ads has been a hit with shoppers, downloaded 47 million times, according eBay. But sellers of used merchandise are less than thrilled. "It was a slap in the face for them to air that commercial," says Karen Drake, an eBay "Top Rated Seller" of used clothing for 15 of the company's 16 years. "I don't sell new items, but I pay eBay $500 a month in fees."</p>
<p>Drake remembers driving over to the "tiny, one-room" eBay office in 1997 to pay her selling fees on her lunch break. Times have changed since she called herself "eBay's biggest cheerleader," she says.</p>
<p>The End of an Auction Era</p>
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<p>While sellers may pay fees, which provide the marketplace component of eBay's revenue, eBay executives decide how they are spent. While eBay declined to say how much it paid for the ad campaign, it reported that its sales and marketing expenses increased 29% to $623.3 million in the third quarter.</p>
<p>In one commercial, a father at his child's school musical falls asleep and begins dreaming about a pair of <a href="" type="internal">chrome</a> rims for his car. Barely awake, he presses a few buttons on his smartphone and -- SNAP! -- buys them on eBay Motors.</p>
<p>Speedy mobile purchases are expected to bring eBay almost $5 billion in sales this year, more than enough to pay for the commercials. That's more than double that what mobile sales made the company last year, and what is expected for competitor Amazon (AMZN).</p>
<p>While the growth of mobile sales may be a recent phenomenon, eBay's shift toward new, fixed-price items has been under way for almost four years. In 2008, <a href="" type="internal">John Donahoe</a> took over as CEO and began altering policies to encourage buy-it-now sales and favor high-volume "Top Rated Sellers," a marketplace overhaul intended to improve buyer experience and safety.</p>
<p>This year, eBay has recruited some of its highest profile sellers yet, especially in the fashion category. <a href="" type="internal">Neiman Marcus</a> Last Call, Cole Haan and Timberland all now sell their wares directly through eBay's Fashion Outlet.</p>
<p>This year's campaign, which includes outdoor billboards and a recently opened "Inspiration Shop," promotes these new types of eBay products in addition to the mobile app. At the Inspiration Shop window display on New York City's Park Avenue, passersby can look up curated items -- like eco-friendly Hunter rain boots -- on their phones by scanning QR codes which take them to marketplace listings. EBay hopes shoppers will use the feature to check bar codes in stores and compare prices to those on the marketplace.</p>
<p>An eBay Vintage</p>
<p>Karen Drake, the longtime eBay seller, was better served by eBay's 2007 holiday campaign, where packs of shoppers on horseback chased through the brush in hot pursuit of a vintage Evel Knievel lunch box. Today, sellers like Drake are fast becoming rare items themselves. Drake says the company is partially responsible for their departures by airing ads that promote certain sellers and disadvantage others.</p>
<p>According to Ina Steiner, a former market research analyst and founder of AuctionBytes, which covers e-commerce news geared towards small businesses, many longtime sellers feel that they lose business when eBay pushes new, brand name products on consumers, both via ads and search features like "Best Match," which uses an algorithm to sort listings by seller size and rating, among other factors.</p>
<p>"Up until 2008, there was a contract between eBay and its sellers to have a level playing field," Steiner explains. "Longtime sellers and small sellers feel that [since] eBay has made trust violations."</p>
<p>Last week on AuctionBytes, one seller wrote to Steiner's blog to complain about Neiman Marcus's status as a "Top Rated Seller," despite its high number of negative feedback ratings.</p>
<p>"This is UNDENIABLE PROOF . . . that the rules are DIFFERENT FOR BIG BOX SELLERS on Ebay," the seller wrote.</p>
<p>Many small sellers left eBay after 2008, moving to other websites or even returning to in-person sales at flea markets and auction houses. But others have stayed, unable to find another marketplace with a comparable user base that also allows their types of listings. Etsy and Bonanza are much more niche than eBay, and Amazon doesn't do used clothing.</p>
<p>"If any other site existed, 95% of the sellers I know would leave eBay," Drake says. Drake, who regularly keeps up with about 150 other used clothing sellers via an email listserv, says that she and many of her peers called eBay to complain when they saw the ads.</p>
<p>Consumer-led Commerce</p>
<p>EBay says that its new ads aren't meant to alienate or disadvantage, but to show shoppers the diversity of merchandise available. "EBay has options of how to shop -- online at a computer or on the go with custom mobile apps -- and options of what to buy that include both new and used items," an eBay spokesperson told DailyFinance.</p>
<p>"The campaign is also raising awareness of our mobile offering," she wrote in an email. "eBay's aggressive innovation in Mobile commerce directly benefits and empowers sellers of all sizes as their inventory is showing up on mobile devices around the world."</p>
<p>While any listing -- auction or otherwise -- can be looked up by the app, sellers of used items doubt that they will get much of the $5 billion mobile sales pie. Antiques don't have QR codes that show up in searches, and hasty mobile shoppers often fail to read detailed descriptions or examine full sized photos. This results in dissatisfied customers, according to Steiner, as well as returns and bad feedback. (While the app also includes a selling function, it's not much of a help for professional sellers listing many items a day, Steiner adds.)</p>
<p>But the biggest issue for sellers like Drake is eBay deciding what consumers want on their behalf. "Long-time vendors I hear from aren't convinced that [the move to new, buy-it-now products] is an organic phenomenon," says Steiner. "They feel that eBay is pushing it on consumers."</p>
<p>EBay insists that all of its changes are inspired by its desire to help shoppers find what they want, how they want it. "Our company is focused on enabling commerce," Donahoe explained to analysts on the Q3 call. "Retail must be technology-enabled and consumer-led."</p>
<p>Shoppers looking for collectibles and vintage items also still come to eBay, though one-of-a-kind items are now harder to find beneath the flood of new goods.</p>
<p>"I would just like to know where to go online to get great vintage, antiques and collectibles," says Janel Scott, another long-time buyer and seller of used clothing and collectibles from Appleton, Wis. "For now, we still look on eBay."</p>
<p><a href="http://www.dailyfinance.com/2011/11/02/ebays-buy-it-new-rebranding-angers-devoted-used-goods-sellers/" type="external">This content was originally published on DailyFinance.com. Opens a New Window.</a></p>
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Stop Donating to Campaigns Opens a New Window.</a>- <a href="http://www.dailyfinance.com/2011/11/03/the-most-affordable-place-to-retire-in-2012/" type="external">The Most Affordable Place to Retire in 2012 Opens a New Window.</a>- <a href="http://www.dailyfinance.com/2011/11/03/average-student-debt-rises-to-record-in-2010/" type="external">Average Student Debt Rises to Record in 2010 Opens a New Window.</a></p> | true | 0 | companies like netflix nflx facebook learned rabid internet fan base downsides probably company aware ebay ebay internet pioneer 90 million active users always easy satisfy continue reading site angered devoted users holiday season new slogan buy new buy companys first big marketing effort two years aims seduce shoppers using iphones androids mobile devices wealth brandnew brandname items many longtime sellers used goods ebay claim marketplaces focus new products hurts business ebay come long way since days internet flea market today 62 ebay listings fixed price auctions 70 new ebays cmo richelle parham told dailyfinance comparison 2008 43 ebay listings fixed price brands image lagged behind past years ebay met steep competition marketplaces like amazon offer new items well perks like free shipping far app featured ads hit shoppers downloaded 47 million times according ebay sellers used merchandise less thrilled slap face air commercial says karen drake ebay top rated seller used clothing 15 companys 16 years dont sell new items pay ebay 500 month fees drake remembers driving tiny oneroom ebay office 1997 pay selling fees lunch break times changed since called ebays biggest cheerleader says end auction era advertisement sellers may pay fees provide marketplace component ebays revenue ebay executives decide spent ebay declined say much paid ad campaign reported sales marketing expenses increased 29 6233 million third quarter one commercial father childs school musical falls asleep begins dreaming pair chrome rims car barely awake presses buttons smartphone snap buys ebay motors speedy mobile purchases expected bring ebay almost 5 billion sales year enough pay commercials thats double mobile sales made company last year expected competitor amazon amzn growth mobile sales may recent phenomenon ebays shift toward new fixedprice items way almost four years 2008 john donahoe took ceo began altering policies encourage buyitnow sales favor highvolume top rated sellers marketplace overhaul intended improve buyer experience safety year ebay recruited highest profile sellers yet especially fashion category neiman marcus last call cole haan timberland sell wares directly ebays fashion outlet years campaign includes outdoor billboards recently opened inspiration shop promotes new types ebay products addition mobile app inspiration shop window display new york citys park avenue passersby look curated items like ecofriendly hunter rain boots phones scanning qr codes take marketplace listings ebay hopes shoppers use feature check bar codes stores compare prices marketplace ebay vintage karen drake longtime ebay seller better served ebays 2007 holiday campaign packs shoppers horseback chased brush hot pursuit vintage evel knievel lunch box today sellers like drake fast becoming rare items drake says company partially responsible departures airing ads promote certain sellers disadvantage others according ina steiner former market research analyst founder auctionbytes covers ecommerce news geared towards small businesses many longtime sellers feel lose business ebay pushes new brand name products consumers via ads search features like best match uses algorithm sort listings seller size rating among factors 2008 contract ebay sellers level playing field steiner explains longtime sellers small sellers feel since ebay made trust violations last week auctionbytes one seller wrote steiners blog complain neiman marcuss status top rated seller despite high number negative feedback ratings undeniable proof rules different big box sellers ebay seller wrote many small sellers left ebay 2008 moving websites even returning inperson sales flea markets auction houses others stayed unable find another marketplace comparable user base also allows types listings etsy bonanza much niche ebay amazon doesnt used clothing site existed 95 sellers know would leave ebay drake says drake regularly keeps 150 used clothing sellers via email listserv says many peers called ebay complain saw ads consumerled commerce ebay says new ads arent meant alienate disadvantage show shoppers diversity merchandise available ebay options shop online computer go custom mobile apps options buy include new used items ebay spokesperson told dailyfinance campaign also raising awareness mobile offering wrote email ebays aggressive innovation mobile commerce directly benefits empowers sellers sizes inventory showing mobile devices around world listing auction otherwise looked app sellers used items doubt get much 5 billion mobile sales pie antiques dont qr codes show searches hasty mobile shoppers often fail read detailed descriptions examine full sized photos results dissatisfied customers according steiner well returns bad feedback app also includes selling function much help professional sellers listing many items day steiner adds biggest issue sellers like drake ebay deciding consumers want behalf longtime vendors hear arent convinced move new buyitnow products organic phenomenon says steiner feel ebay pushing consumers ebay insists changes inspired desire help shoppers find want want company focused enabling commerce donahoe explained analysts q3 call retail must technologyenabled consumerled shoppers looking collectibles vintage items also still come ebay though oneofakind items harder find beneath flood new goods would like know go online get great vintage antiques collectibles says janel scott another longtime buyer seller used clothing collectibles appleton wis still look ebay content originally published 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<p>Last week a friend e-mailed me a link to an article about, as he put it, “a simple act changing the world.” It was <a href="http://www.time.com/time/world/article/0,8599,2043557,00.html" type="external">the piece in Time about Mohammed Bouazizi Opens a New Window.</a> in Tunisia and how he sacrificed himself because, in essence, he’d had it. A man selling vegetables who just wanted to earn an honest living found even that was being threatened. He set himself on fire and lingered in the hospital for weeks before dying.</p>
<p>Continue Reading Below</p>
<p>“There was so much outrage over his ordeal that even President Zine el Abidine Ben Ali, the dictator, visited Bouazizi on Dec. 28 to try to blunt the anger,” writes Rania Abouzeid. “But the outcry could not be suppressed and, on Jan. 14, just 10 days after Bouazizi died, Ben Ali’s 23-year rule of Tunisia was over.”Of course now we know Bouazizi’s actions are rippling around the <a href="" type="internal">Middle East</a> and continue to rattle the globe. I’d like to think there is an afterlife and that he is somewhere watching the results of his earthly death unfold and saying to himself, “Holy crow. Are you kidding me? There is power in one person taking action.”</p>
<p>At a time in our nation when so many are feeling squeezed, desperate, helpless or caught in a rut, it is making many of us more ripe for change, more open to flinging caution out the window and going for it, more willing to push the limits because we feel like we have nothing to lose. And because of that we gravitate to stories of those paving the way, in big ways and seemingly small.</p>
<p>I would be hard pressed to give you another example that comes close to Bouazizi’s in scope, for that is the giving over of one’s life. But trust me, if your eyes are open and you choose to see power in taking action, you will see it all around you.</p>
<p>Some found humor or even disrespect in comparisons of union members protesting in Wisconsin to the uprising in Egypt, but I chose to see the common thread that did lie at the heart of both: recognizing there is power in action. The idea that one person will show up for a cause and spur on another and another until whispers become a loud and clear unified shout is what sparks meaningful shifts and leaves marks.</p>
<p>Not everyone is meant to have the same level of impact, though, and while the aforementioned are sweeping examples, they can also be daunting to the average person whose desire is push through fear and see the power in making that one phone call or composing that one blog post. Maybe for some it’s not so much about effecting change in the world, but in their world. Anything else is a bonus.</p>
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<p>So for someone like Massachusetts Congressman <a href="" type="internal">Scott Brown</a>, it’s about standing up and running for office. And then it’s about getting the courage to publish his memoir and tell his story of an abusive childhood so that maybe even one person in a similar situation thinks they’ve got a shot to overcome it.</p>
<p>Or it’s in David Seidler making art. That’s all. Sitting at a desk and writing a story that took years, a story of a real king who overcame a stuttering problem that plagued him for years. This was a problem Seidler knew all too well, and one which prompted him to say last weekend, “I accept this on behalf of all the stutterers throughout the world” when he stood before that world with the Oscar statue for “Writing (Original Screenplay)” in his hand. The King’s Speech has resonated in a way that makes us feel his persistence in craft at a soul level; at age 73, he became the oldest recipient of that award to boot.</p>
<p>For anyone interested in looking beyond the fashion critiques and the running commentary on the hosts at the Oscars, there is always, always a moment or two that reinforces the notion that there is power in one’s own persistence of vision, one’s inherent faith. When Tom Hooper accepted the award for “Directing” – also for The King’s Speech -- he acknowledged his mother, not simply for her general support, but for seeing an unproduced reading of The King’s Speech in 2007 and making a phone call to him saying she thinks she found the next film he should direct.</p>
<p>Power lies in an action – hers for making that call and his for listening and setting the wheels in motion.</p>
<p>In the annual ‘power issue’ of Vogue (March), the “Letter from the Editor” by Anna Wintour says, “This year we’ve focused the issue on the power of the individual – the figures who compel and challenge us – and no one satisfies that brief more than [Lady Gaga].”</p>
<p>Writer Jonathan Van Meter’s story about spending time “embedded” with Lady Gaga on tour is engagingly written. I was particularly drawn to the part about what she is doing with her power.</p>
<p>“You have to reject all the evils of [fame] and try to turn all the positive things that you can use about fame into great things,” she said. “Like Don’t Ask, Don’t Tell.”</p>
<p>Van Meter goes on to say Gaga “used her visibility, her unusual connection with her fans, and her social-media prowess to agitate for the repeal of the law, tweeting senators, making protest videos, and speaking at rallies.” Then he quotes the Lady herself, “That’s me turning my fame into something that is positive and makes me feel good about my life.”</p>
<p>The power of the individual.</p>
<p>Ask Kristina Kuzmic-Crocco about that. She was one of thousands who sent in a video to the Oprah Winfrey Network [OWN] for a shot at getting a show. She made the top 10.</p>
<p>“A few years ago I was at a point in my life where I literally had nothing,” she says in an OWN video after making the cut. “I hit bottom. So I started serving tables and now that I’ve come this far I’m going to get this – no, no, no, no – I’m going to earn this and show my kids that no matter what life throws at you, no matter what people tell you you can or can’t do, you dream huge. You dream so big.”</p>
<p>Last week Kuzmic-Crocco was selected by Oprah Winfrey to be one of two winners and her fun, irreverent show Kristina’s Fearless Kitchen will be produced by the network. In an interview after she won, the new host elatedly expressed her excitement that no one will ever be able to tell her again that she thinks too big. Her words moved me spiritually.</p>
<p>So let’s recap. She made a video. That was her action. She sent it in. Another action. Took each task as it came in the fierce competition. More action. Weathered the bumps and powered through. Boom, she’s on Winfrey’s payroll and her kids get to see how dreaming big works.</p>
<p>A simple act, changing her world and theirs, and the world of anyone else who cares to pay attention. You just never know what will happen next.</p>
<p>Nancy Colasurdo is a practicing life coach and freelance writer. Her Web site is <a href="http://www.nancola.com" type="external">www.nancola.com Opens a New Window.</a>. Please direct all questions/comments to <a href="http://mailto:[email protected]" type="external">[email protected] Opens a New Window.</a>.</p> | true | 0 | last week friend emailed link article put simple act changing world piece time mohammed bouazizi opens new window tunisia sacrificed essence hed man selling vegetables wanted earn honest living found even threatened set fire lingered hospital weeks dying continue reading much outrage ordeal even president zine el abidine ben ali dictator visited bouazizi dec 28 try blunt anger writes rania abouzeid outcry could suppressed jan 14 10 days bouazizi died ben alis 23year rule tunisia overof course know bouazizis actions rippling around middle east continue rattle globe id like think afterlife somewhere watching results earthly death unfold saying holy crow kidding power one person taking action time nation many feeling squeezed desperate helpless caught rut making many us ripe change open flinging caution window going willing push limits feel like nothing lose gravitate stories paving way big ways seemingly small would hard pressed give another example comes close bouazizis scope giving ones life trust eyes open choose see power taking action see around found humor even disrespect comparisons union members protesting wisconsin uprising egypt chose see common thread lie heart recognizing power action idea one person show cause spur another another whispers become loud clear unified shout sparks meaningful shifts leaves marks everyone meant level impact though aforementioned sweeping examples also daunting average person whose desire push fear see power making one phone call composing one blog post maybe much effecting change world world anything else bonus advertisement someone like massachusetts congressman scott brown standing running office getting courage publish memoir tell story abusive childhood maybe even one person similar situation thinks theyve got shot overcome david seidler making art thats sitting desk writing story took years story real king overcame stuttering problem plagued years problem seidler knew well one prompted say last weekend accept behalf stutterers throughout world stood world oscar statue writing original screenplay hand kings speech resonated way makes us feel persistence craft soul level age 73 became oldest recipient award boot anyone interested looking beyond fashion critiques running commentary hosts oscars always always moment two reinforces notion power ones persistence vision ones inherent faith tom hooper accepted award directing also kings speech acknowledged mother simply general support seeing unproduced reading kings speech 2007 making phone call saying thinks found next film direct power lies action making call listening setting wheels motion annual power issue vogue march letter editor anna wintour says year weve focused issue power individual figures compel challenge us one satisfies brief lady gaga writer jonathan van meters story spending time embedded lady gaga tour engagingly written particularly drawn part power reject evils fame try turn positive things use fame great things said like dont ask dont tell van meter goes say gaga used visibility unusual connection fans socialmedia prowess agitate repeal law tweeting senators making protest videos speaking rallies quotes lady thats turning fame something positive makes feel good life power individual ask kristina kuzmiccrocco one thousands sent video oprah winfrey network shot getting show made top 10 years ago point life literally nothing says video making cut hit bottom started serving tables ive come far im going get im going earn show kids matter life throws matter people tell cant dream huge dream big last week kuzmiccrocco selected oprah winfrey one two winners fun irreverent show kristinas fearless kitchen produced network interview new host elatedly expressed excitement one ever able tell thinks big words moved spiritually lets recap made video action sent another action took task came fierce competition action weathered bumps powered boom shes winfreys payroll kids get see dreaming big works simple act changing world world anyone else cares pay attention never know happen next nancy colasurdo practicing life coach freelance writer web site wwwnancolacom opens new window please direct questionscomments foxgameplangmailcom opens new window | 625 |
<p>Image source: Apple.</p>
<p>Apple stock pays a modest dividend yield, and the company comes well behind other big tech players such as Microsoft , IBM , and Cisco in that regard. Make no mistake, though, Apple is positioned for big dividend growth in the years ahead, and this has huge implications for investors.</p>
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<p>Small dividends and big room for growthApple, Microsoft, IBM, and Cisco are fairly different companies, operating in their own sectors, and with their particular weaknesses and strengths. On the other hand, the four companies also offer some important similarities for investors. Apple, Microsoft, IBM, and Cisco are among the biggest and most stable tech corporations in the world, and they look quite attractive from a dividend investing perspective.</p>
<p>Apple comes well behind its peers in terms of dividend yield. The iPhone maker is yielding 2.1% at current prices, while Microsoft pays a dividend yield of 2.8% and both Cisco and IBM offer much higher yields in the neighborhood of 3.9%.</p>
<p>However, it's of utmost importance to note that Apple has enormous room to raise dividends in the future. Apple has a dividend payout ratio in the neighborhood of 23% of earnings forecasts for the current fiscal year, this is much lower than the payout ratios offered by comparable tech companies: Microsoft distributes nearly 52% of earnings as dividends, IBM ha a payout ratio around 39%, and Cisco is in the area of 36%.</p>
<p>Apple CEO promises to sustain dividend growthApple reinstated its dividends in 2012, and the company has raised payments every year since then. Speaking at the company's annual shareholder meeting last Friday, Apple CEO Tim Cook said that management is committed to increasing dividends annually, since Apple typically announces its dividend increases when it reports earnings for the March quarter, chances are that Apple's next earnings report will include a new and enlarged dividend.</p>
<p>Not only is Apple's dividend relatively low in comparison to the company's earnings, cash flows also provide enormous room to increase dividends in the future. Apple produced $27.5 billion in operating cash flow last quarter, and capital expenditures consumed $3.6 billion of that money, leaving Apple with almost $24 billion in free cash flow. Dividend payments during the period amounted to less than $3 billion, or a remarkably low 12.5% of free cash flow. In addition, Apple is sitting on a gargantuan cash hoard of nearly $216 billion in cash and investments on its balance sheet.</p>
<p>Management is clearly committed to raising dividends over the coming years, and Apple has more than enough financial resources to put its money where its mouth is, so the company has the willingness and the ability to sustain dividend growth.</p>
<p>Why dividend growth mattersDividends provide predictable cash payments to investors, and this can be a major advantage to keep in mind when analyzing investment decisions. Even more important, dividends say a lot about the health of the business. When a company has the financial strength to sustain dividend growth over the years, this shows that the business is healthy enough to produce consistently growing cash flows over time.</p>
<p>Goldman Sachs measured the returns of different kinds of companies based on their dividend policies over the long term, and the results are quite interesting. Dividend-paying stocks typically perform much better than stocks paying no dividends, and companies with consistently growing dividend payments materially outperform both those with stable dividends and companies paying no dividends at all.</p>
<p>According to this research report from Goldman Sachs, a $10,000 investment in non-dividend stocks on Jan. 31, 1972, would have turned into $30,316 at the end of 2014. The same amount of money invested in dividend-paying stocks would have an ending value of $461,904, while investing in companies starting new dividends or increasing their dividend payments every year would have resulted in a much bigger ending capital of $630,024.</p>
<p>Apple has the financial strength to continue increasing dividends in the future, and CEO Tim Cook has recently confirmed that the company is in fact planning to raise dividends on an annual basis. Considering the historical evidence about the positive impact of consistent dividend growth on investment returns, this is clearly a major positive for investors in Apple stock.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/02/29/apple-ceo-promises-to-increase-dividends-what-you.aspx" type="external">Apple CEO Promises to Increase Dividends: What You Need to Know Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/acardenal/info.aspx?source=eptfxblnk0000004" type="external">Andrs Cardenal Opens a New Window.</a> owns shares of Apple and International Business Machines. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends Cisco Systems. 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 | image source apple apple stock pays modest dividend yield company comes well behind big tech players microsoft ibm cisco regard make mistake though apple positioned big dividend growth years ahead huge implications investors continue reading small dividends big room growthapple microsoft ibm cisco fairly different companies operating sectors particular weaknesses strengths hand four companies also offer important similarities investors apple microsoft ibm cisco among biggest stable tech corporations world look quite attractive dividend investing perspective apple comes well behind peers terms dividend yield iphone maker yielding 21 current prices microsoft pays dividend yield 28 cisco ibm offer much higher yields neighborhood 39 however utmost importance note apple enormous room raise dividends future apple dividend payout ratio neighborhood 23 earnings forecasts current fiscal year much lower payout ratios offered comparable tech companies microsoft distributes nearly 52 earnings dividends ibm ha payout ratio around 39 cisco area 36 apple ceo promises sustain dividend growthapple reinstated dividends 2012 company raised payments every year since speaking companys annual shareholder meeting last friday apple ceo tim cook said management committed increasing dividends annually since apple typically announces dividend increases reports earnings march quarter chances apples next earnings report include new enlarged dividend apples dividend relatively low comparison companys earnings cash flows also provide enormous room increase dividends future apple produced 275 billion operating cash flow last quarter capital expenditures consumed 36 billion money leaving apple almost 24 billion free cash flow dividend payments period amounted less 3 billion remarkably low 125 free cash flow addition apple sitting gargantuan cash hoard nearly 216 billion cash investments balance sheet management clearly committed raising dividends coming years apple enough financial resources put money mouth company willingness ability sustain dividend growth dividend growth mattersdividends provide predictable cash payments investors major advantage keep mind analyzing investment decisions even important dividends say lot health business company financial strength sustain dividend growth years shows business healthy enough produce consistently growing cash flows time goldman sachs measured returns different kinds companies based dividend policies long term results quite interesting dividendpaying stocks typically perform much better stocks paying dividends companies consistently growing dividend payments materially outperform stable dividends companies paying dividends according research report goldman sachs 10000 investment nondividend stocks jan 31 1972 would turned 30316 end 2014 amount money invested dividendpaying stocks would ending value 461904 investing companies starting new dividends increasing dividend payments every year would resulted much bigger ending capital 630024 apple financial strength continue increasing dividends future ceo tim cook recently confirmed company fact planning raise dividends annual basis considering historical evidence positive impact consistent dividend growth investment returns clearly major positive investors apple stock article apple ceo promises increase dividends need know opens new window originally appeared foolcom andrs cardenal opens new window owns shares apple international business machines motley fool owns shares recommends apple motley fool recommends cisco systems 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 | 520 |
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<p>Image source: Fitbit.</p>
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<p>The market closed out the first half of the year in surprisingly ho-hum fashion. The S&amp;P 500 rose a mere 2.7% through the first six months of 2016, but some stocks haven't even treated their shareholders that well.</p>
<p>Let's take a look at some of the stocks that have shed at least a third of their value in the first half, yet are armed with the catalysts to turn things around during the final six months of 2016.</p>
<p>The undisputed top dog in fitness trackers is still growing sales at a heady clip, but investors have been spooked by sliding margins and heavy hitters in tech and athletic footwear making a move in Fitbit's space. Fitbit has responded by rolling out new products, and it succeeded in selling more than a million of its Alta fitness trackers and Blaze smartwatches during the first quarter of this year, accounting for nearly half of the 4.8 total connected health and fitness devices it sold through the first three months of the year.</p>
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<p>However, Fitbit warned in May that its earnings for the second quarter would fall well short of Wall Street expectations. Revenue growth remains strong -- up 50% in the first quarter and the midpoint of its guidance suggesting a 44% advance for the recently concluded second quarter -- but it's getting more expensive to stand out in this market.</p>
<p>Fitbit's turnaround could come from new products. It recently acquiredCoin's wearable payments assets, and any integration there into its bracelets later this year could establish a more forward-thinking narrative. It already has a couple of new products on tap for the second half of the year, and any potential integration could raise the ceiling. Fitbit can also keep trouncing analyst earnings estimates the way it has consistently done during its brief tenure as a public company, even if it wouldn't seem fair this time since it has already hosed down that target.</p>
<p>Fitbit isn't the only niche leader in wearable tech that has taken a beating this year. The difference here is that GoPro also got hammered in 2015. The top dog in wearable cameras plunged roughly 70% last year as slowing sales wrecked a former market darling fetching lofty market multiples. Things have only gotten worse in 2016 as a lull in sales has transformed into a bloodbath.</p>
<p>Revenue was nearly cut in half during GoPro's first quarter when pitted against the prior year. GoPro offered that reported revenue exaggerated the situation. Actual sell-through of its products to consumers was better than its shipments to retailers that were loaded with unsold inventory during the holiday quarter. Margins are still getting slammed, unfortunately. GoPro also spooked investors by delaying its entry into the drone market as well as the latest update to its flagship Hero line of cameras.</p>
<p>Investors can naturally use a break following last year's 70% tumble and a 40% slide so far this year adding up to a brutal 83% drop during the past 18 months. The catalysts can come in the form of the Karma drone and Hero 5 wearable camera that are now slated to hit the market in time for the critical holiday shopping season. The stock could shoot higher if just one of the two products generates positive buzz. Things can also get better for investors if GoPro was telling the truth about retailers merely clearing through excess inventory during the first quarter. Comparable results should also start improving later this year when its financial performance is stacked against last year's holiday quarter when revenue began to fall.</p>
<p>Shares of the airline carrier more than doubled in 2014, as cheap jet fuel and robust flying trends helped the entire industry take off. The stock ran into some turbulence last year, and now profits are going the wrong way.</p>
<p>Load factors are trending lower through the first five months of 2016, and it doesn't help that fares are also heading lower in this cutthroat market. The economic instability through Latin America and foreign currency fluctuations aren't helping, and that was before the Brexit referendum vote left investors wondering how airlines will hold up if there's global unrest.</p>
<p>American Airlines posted record results last year excluding net special credits, and adjusted earnings actually moved higher during this year's first quarter. Naturally the turnaround here will be made easier if there are fewer vacant seats on its planes or if folks are paying more to fly.These factors would materialize if there's any improvement in Latin America and Brexit fears subside, spurring interest in both corporate and leisure travel. Continued sector consolidation could also soothe investor fears when it comes to competitive pricing.</p>
<p>American Airlines joins Fitbit and GoPro as falling out of favor so far this year, but we still have another entire half to play in 2016.</p>
<p>The article <a href="http://www.fool.com/investing/2016/07/05/3-stocks-that-can-bounce-back-in-the-second-half.aspx" type="external">3 Stocks That Can Bounce Back in the Second Half 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> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends GoPro. The Motley Fool recommends Fitbit. 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 fitbit continue reading market closed first half year surprisingly hohum fashion sampp 500 rose mere 27 first six months 2016 stocks havent even treated shareholders well lets take look stocks shed least third value first half yet armed catalysts turn things around final six months 2016 undisputed top dog fitness trackers still growing sales heady clip investors spooked sliding margins heavy hitters tech athletic footwear making move fitbits space fitbit responded rolling new products succeeded selling million alta fitness trackers blaze smartwatches first quarter year accounting nearly half 48 total connected health fitness devices sold first three months year advertisement however fitbit warned may earnings second quarter would fall well short wall street expectations revenue growth remains strong 50 first quarter midpoint guidance suggesting 44 advance recently concluded second quarter getting expensive stand market fitbits turnaround could come new products recently acquiredcoins wearable payments assets integration bracelets later year could establish forwardthinking narrative already couple new products tap second half year potential integration could raise ceiling fitbit also keep trouncing analyst earnings estimates way consistently done brief tenure public company even wouldnt seem fair time since already hosed target fitbit isnt niche leader wearable tech taken beating year difference gopro also got hammered 2015 top dog wearable cameras plunged roughly 70 last year slowing sales wrecked former market darling fetching lofty market multiples things gotten worse 2016 lull sales transformed bloodbath revenue nearly cut half gopros first quarter pitted prior year gopro offered reported revenue exaggerated situation actual sellthrough products consumers better shipments retailers loaded unsold inventory holiday quarter margins still getting slammed unfortunately gopro also spooked investors delaying entry drone market well latest update flagship hero line cameras investors naturally use break following last years 70 tumble 40 slide far year adding brutal 83 drop past 18 months catalysts come form karma drone hero 5 wearable camera slated hit market time critical holiday shopping season stock could shoot higher one two products generates positive buzz things also get better investors gopro telling truth retailers merely clearing excess inventory first quarter comparable results also start improving later year financial performance stacked last years holiday quarter revenue began fall shares airline carrier doubled 2014 cheap jet fuel robust flying trends helped entire industry take stock ran turbulence last year profits going wrong way load factors trending lower first five months 2016 doesnt help fares also heading lower cutthroat market economic instability latin america foreign currency fluctuations arent helping brexit referendum vote left investors wondering airlines hold theres global unrest american airlines posted record results last year excluding net special credits adjusted earnings actually moved higher years first quarter naturally turnaround made easier fewer vacant seats planes folks paying flythese factors would materialize theres improvement latin america brexit fears subside spurring interest corporate leisure travel continued sector consolidation could also soothe investor fears comes competitive pricing american airlines joins fitbit gopro falling favor far year still another entire half play 2016 article 3 stocks bounce back second half opens new window originally appeared foolcom rick munarriz opens new window position stocks mentioned motley fool owns shares recommends gopro motley fool recommends fitbit 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 | 570 |
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<p>When Corning Inc. (NYSE: GLW) reported earnings in late January, it committed to continue to reward stockholders handsomely. Its stock price has appreciated nicely over the past 12 months (up roughly 50%) and now it has reiterated its plan to buy back its own shares over the next three years and continue to pay its shareholders a growing dividend. Total cost to the company is projected by management to be at least $12.5 billion through 2019, including annual dividend increases projected to be more than 10%.</p>
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<p>Senior VP and CFO Tony Tripeni said the company plans to spend $2 billion on share buybacks in 2017. The company's Feb. 1 announcement of a quarterly dividend hike from $0.135 per share per quarter to $0.155 (a 14.8% increase) indicates the company is delivering on its stated intent to raise the dividend at least 10% per year.</p>
<p>For a company to engage in a large return of capital to shareholders, the company must have a sustainable stream of earnings to draw from. Looking at Corning's business will shed some light on where the cash will come from.</p>
<p>Image source: Corning.</p>
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<p>A look at Corning's earnings for the past three years help us give context to the affordability of the company's capital allocation plan.</p>
<p>*Year ended Dec. 31, 2016, includes $2.7 billion non-taxable gain on the strategic realignment of Corning's ownership interest in Dow Corning. Data source: Corning. Chart by author.</p>
<p>Corning discloses a non-GAAP metric for investors that management refers to as core earnings. It is worth understanding this number in the context of 2016, when the company received a one-time $2.7 billion boost to earnings due to a strategic realignment of Corning's ownership interest in Dow Corning. Core earnings are the earnings contributed by each of Corning's five business segments adjusted to exclude currency changes associated with the Japanese yen and the Korean won, gains or losses from currency hedging,discrete tax items, restructuring charges, certain litigation-related expenses, pension mark-to-market adjustments, and other items which do not reflect ongoing operating results of the company. The purpose of the metric is to give investors a better view of how the operating businesses are performing.</p>
<p>Corning has 928 million shares outstanding and projects an annual dividend of $0.62 this year. A total dividend payout of $575 million would easily be covered by core earnings of $1.705 billion, which the company earned in 2016. Although the company does not provide full-year guidance, it is fair to assume, from management's comments at the end of Q4, that 2017 will be a year of growth for the company. The $2 billion opportunistic share buyback could come from somewhere other than conventional earnings. The company has stated that it may raise debt in order to cover some portion of the buyback.</p>
<p>The company exited 2016 with $5.291 billion in cash and cash equivalents and $3.646 billion in long-term debt as well as $2.805 billion in other liabilitieswhich consists of among other things a deficit of $662 million in its retirement program.</p>
<p>The company had previously stated that it may borrow moneyto help fund the share repurchases. and it appears that will happen in the next 12 months or so. Speaking at the Goldman Sachs Technology and Internet Conference on Feb. 14, CFO Tony Tripeni said the company felt that with its steady cash flow it could support taking on additional debt.</p>
<p>Corning, like many companies, keeps a portion of its cash in foreign countries. At the end of 2016 the company had $3.29 billion in cash and cash equivalents outside the United States.As long as the company keeps the money offshore, it is only liable for foreign taxes, but if the company wants to spend it on, say, buybacks, it would have to "repatriate" it to the U.S. and it would be subject to what is now a tax of approximately 35%.</p>
<p>The company said in its annual report that "we have sufficient U.S. liquidity, including borrowing capacity, to fund foreseeable U.S. cash needs without requiring the repatriation of foreign cash."</p>
<p>If, however, there is a change in corporate tax policy that lowers the repatriation tax -- as many hope will happen under the Trump administration -- that may affect how the company thinks about its foreign cash and it could bring that money back to the United States, pay a (lower) repatriation tax, and use it for buybacks, which could override the need for debt.</p>
<p>If no change in tax policy occurs and Corning decides to borrow to finance buybacks, taking on more debt would be a reasonable thing to do if earnings can service the interest payment for the additional debt load. Last year, the company paid $184 million in interest and ended the year with $3.646 billion in long-term debt.The company had $995 million in normalized earnings last year and so it should be able to support additional debt.</p>
<p>In light of the fact the company has cash sitting overseas, I am not concerned about the tactic of raising more debt to return capital to shareholders. In a low-interest-rate environment it is common for companies to raise debt against offshore cash knowing the worst-case scenario is the company has to repatriate the cash, pay the taxes, and then pay down the debt. Even better is the prospect of a repatriation tax holiday, in which case the money can be brought back onshore at a lower tax rate and used for debt repayment.</p>
<p>It would appear that the company has a reasonable plan to run its business and spend what is necessary to keep coming up with innovative products to meet customers' needs. In addition, the patient investor gets to collect a reasonable dividend (the stock is yielding 2.24% at recent prices) and benefit from share repurchases going forward. If the company continues to grow as it has in the recent past, stock price appreciation should follow.</p>
<p>The key focus management needs to have is on the ongoing results of Corning's operating businesses. These businesses will tell the tale as to whether the company can support both its dividend as well as its share buyback program. Investors should keep in mind that the company's board of directors sets the dividend on a quarterly basis and is not required to execute the share buyback authorization. This gives the company the flexibility to modify plans based on market conditions and ongoing business results.</p>
<p>Based on the information we have as of today the dividend looks to be quite safe and management's most recent comments would lead us to believe the buybacks will be executed as well.</p>
<p>10 stocks we like better than CorningWhen 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=d9572938-c2ec-47e8-910d-554bf376ea94&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks</a> for investors to buy right now... and Corning 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/CMFFrankDip/info.aspx" type="external">Frank DiPietro</a> has no position in any stocks mentioned. The Motley Fool recommends Corning. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy</a>.</p> | true | 0 | corning inc nyse glw reported earnings late january committed continue reward stockholders handsomely stock price appreciated nicely past 12 months roughly 50 reiterated plan buy back shares next three years continue pay shareholders growing dividend total cost company projected management least 125 billion 2019 including annual dividend increases projected 10 continue reading senior vp cfo tony tripeni said company plans spend 2 billion share buybacks 2017 companys feb 1 announcement quarterly dividend hike 0135 per share per quarter 0155 148 increase indicates company delivering stated intent raise dividend least 10 per year company engage large return capital shareholders company must sustainable stream earnings draw looking cornings business shed light cash come image source corning advertisement look cornings earnings past three years help us give context affordability companys capital allocation plan year ended dec 31 2016 includes 27 billion nontaxable gain strategic realignment cornings ownership interest dow corning data source corning chart author corning discloses nongaap metric investors management refers core earnings worth understanding number context 2016 company received onetime 27 billion boost earnings due strategic realignment cornings ownership interest dow corning core earnings earnings contributed cornings five business segments adjusted exclude currency changes associated japanese yen korean gains losses currency hedgingdiscrete tax items restructuring charges certain litigationrelated expenses pension marktomarket adjustments items reflect ongoing operating results company purpose metric give investors better view operating businesses performing corning 928 million shares outstanding projects annual dividend 062 year total dividend payout 575 million would easily covered core earnings 1705 billion company earned 2016 although company provide fullyear guidance fair assume managements comments end q4 2017 year growth company 2 billion opportunistic share buyback could come somewhere conventional earnings company stated may raise debt order cover portion buyback company exited 2016 5291 billion cash cash equivalents 3646 billion longterm debt well 2805 billion liabilitieswhich consists among things deficit 662 million retirement program company previously stated may borrow moneyto help fund share repurchases appears happen next 12 months speaking goldman sachs technology internet conference feb 14 cfo tony tripeni said company felt steady cash flow could support taking additional debt corning like many companies keeps portion cash foreign countries end 2016 company 329 billion cash cash equivalents outside united statesas long company keeps money offshore liable foreign taxes company wants spend say buybacks would repatriate us would subject tax approximately 35 company said annual report sufficient us liquidity including borrowing capacity fund foreseeable us cash needs without requiring repatriation foreign cash however change corporate tax policy lowers repatriation tax many hope happen trump administration may affect company thinks foreign cash could bring money back united states pay lower repatriation tax use buybacks could override need debt change tax policy occurs corning decides borrow finance buybacks taking debt would reasonable thing earnings service interest payment additional debt load last year company paid 184 million interest ended year 3646 billion longterm debtthe company 995 million normalized earnings last year able support additional debt light fact company cash sitting overseas concerned tactic raising debt return capital shareholders lowinterestrate environment common companies raise debt offshore cash knowing worstcase scenario company repatriate cash pay taxes pay debt even better prospect repatriation tax holiday case money brought back onshore lower tax rate used debt repayment would appear company reasonable plan run business spend necessary keep coming innovative products meet customers needs addition patient investor gets collect reasonable dividend stock yielding 224 recent prices benefit share repurchases going forward company continues grow recent past stock price appreciation follow key focus management needs ongoing results cornings operating businesses businesses tell tale whether company support dividend well share buyback program investors keep mind companys board directors sets dividend quarterly basis required execute share buyback authorization gives company flexibility modify plans based market conditions ongoing business results based information today dividend looks quite safe managements recent comments would lead us believe buybacks executed well 10 stocks like better corningwhen 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 corning wasnt one thats right think 10 stocks even better buys click learn picks stock advisor returns february 6 2017 frank dipietro position stocks mentioned motley fool recommends corning motley fool disclosure policy | 706 |
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<p>Babies, weddings, homes and taxes</p>
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<p>Taxes have been a part of your life since your parents welcomed you into this world.</p>
<p>From that beginning as a spanking new tax break for mom and dad, taxes have had an important role in all your major life events, from getting a job, saying "I do," buying and selling homes, having kids of your own, and even retiring.</p>
<p>In some cases, the involvement of the Internal Revenue Service is not such a good thing.</p>
<p>But in many ways, the tax code can be your best friend. You just need to know how it applies to your personal circumstances so you can take advantage of it. Read on to learn more about tax breaks for life's big events.</p>
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<p>Tax breaks at your job</p>
<p>Getting your first job</p>
<p>Uncle Sam gets a portion of your paycheck via payroll taxes. You do, however, have a bit of a say in how much comes out of your pay by adjusting your withholding.</p>
<p>If you have too much withheld, you'll get a refund when you file. That's not necessarily bad, but wouldn't you rather have your own money year-round instead of giving the IRS an interest-free loan?</p>
<p>On the other hand, if you don't have enough taken out, you could face a major tax bill, and possible underwithholding penalties, at filing time. Ask your boss for a new Form W-4 so you can run the numbers and adjust your withholding.</p>
<p>Your job likely offers several tax breaks. If your employer provides health care coverage, your medical insurance is a tax-free benefit to you. You'll find out how much that's worth on next year's W-2 earnings statement.</p>
<p>A flexible spending account, or FSA, also might be part of your job benefits. Here you can save pretax dollars to pay for medical care not covered by insurance.</p>
<p>You also want to take advantage of your workplace's tax-deferred 401(k) retirement plan.</p>
<p>And if you move to take a job, even your first one, you can write off many of your relocation costs.</p>
<p>Tax breaks with marriage</p>
<p>Getting married</p>
<p>Uncle Sam probably wasn't a guest at your wedding, but he becomes a big part of your life when you are a married taxpayer. Now that you've combined your personal lives, you likely will do the same with your tax filing.</p>
<p>Married filing jointly is the most common choice of married couples because it generally produces the best tax results. The once-dreaded marriage tax penalty has been largely eliminated thanks to the broadening of the tax bracket for that filing status. Plus, some tax breaks aren't allowed to a husband and wife who file separate returns.</p>
<p>If both husband and wife work, each should reassess withholding amounts. The IRS says it's generally better for the higher-earning spouse to claim all the couple's allowances on his or her W-4, with the lower wage earner claiming zero.</p>
<p>Reassess your individual retirement accounts. Income limits apply to tax-free Roth accounts and also with deductible traditional IRAs if you contribute to a workplace plan. So your combined income could affect your retirement contributions.</p>
<p>Update your flexible spending account. A new marriage is a change in family circumstances that allows you to make midyear changes to this tax-favored company benefit plan.</p>
<p>Tax breaks for new parents</p>
<p>Having children</p>
<p>Congratulations on your new baby. Let your Uncle Sam help cover some of your growing family's costs.</p>
<p>A dependent youngster is an added exemption. Kids also allow parents to claim the child tax credit as long as the youngster was 16 at the end of the tax year. Large families might be able to get money back from the IRS via the refundable additional child tax credit.</p>
<p>If your family grew via an adoption, there's a tax credit to cover some of the many costs of that process.</p>
<p>Working parents can use the child and dependent care credit to pay for some of the costs of caring for their kids while they are on the job.</p>
<p>And the tax code also offers several ways to save and pay for higher education costs, including 529 college savings plans, the Coverdell education savings account and the American opportunity and lifetime learning tax credits.</p>
<p>Tax breaks when starting a business</p>
<p>Starting a business</p>
<p>Once you decide it's time to break out of the corporate cubicle and start a new business, the tax code can help.</p>
<p>Filing is relatively easy for sole proprietors. They report their income as part of their annual individual tax filing by attaching Schedule C to Form 1040. Schedule C also offers many ways for individual entrepreneurs to write off many of their business expenses.</p>
<p>Among the deductible small-business costs are home office expenses. Business use of a vehicle also is deductible, as are health insurance premiums and contributions to self-employed retirement plans. New businesses also are allowed to deduct thousands in certain startup costs.</p>
<p>If you have kids, putting them to work in your sole proprietorship could be a tax-smart move. Depending on how much you pay them, they might not owe income taxes and you can deduct the salary as a business expense.</p>
<p>But starting a business is not all about tax breaks. Sole proprietors also must pay self-employment taxes. These are the equivalent of the payroll taxes collected from wage-earning employees. As both the employer and employee, a sole proprietor has to pay the boss and worker components of Social Security and Medicare taxes.</p>
<p>Tax breaks for homeownership</p>
<p>Buying a home</p>
<p>Your home is probably your biggest investment. Homeownership also provides many tax breaks.</p>
<p>Interest paid on a primary residence mortgage up to $1 million is deductible as an itemized expense. If you take out a home equity loan or line of credit, interest on those loans up to $100,000 also is deductible. Even the interest on a second home is tax deductible.</p>
<p>Property tax you pay on your main house and any other residences you own also is deductible.</p>
<p>The tax benefit of a home is even better when you sell it. Up to $250,000 in sales gain ($500,000 for married joint filers) on your home is tax-free as long as you owned the property for two years and lived in it for two of the five years before the sale.</p>
<p>Many home improvements, such as structural additions, kitchen modernization and landscaping, can increase the basis in your home. This is essentially your investment in the home. A larger basis means less profit that might be taxable.</p>
<p>And some home upgrades, such as installing solar energy systems, also will get you an immediate tax credit to help offset the high cost of this type of improvement.</p>
<p>Tax breaks in divorce situations</p>
<p>Dealing with divorce</p>
<p>As with marriage, your filing status is determined on the last day of the tax year. If your divorce is final Dec. 31, then you are considered unmarried for the full year.</p>
<p>One of the stickiest divorce issues is child custody. The parent who has physical custody of the children for most of the year usually gets to claim them as dependents. That means that parent gets the exemption, child tax credit and child care tax credit savings.</p>
<p>One spouse typically is granted sole ownership of the family home. This could, however, pose a problem for the solo owner. When the lone ex sells the property, the amount of profit exempt from capital gains is just $250,000 versus the $500,000 that married filing jointly homeowners can exclude. Because of that, some couples sell the house before they divorce and split the tax-free profits.</p>
<p>Similarly, take into account the cash the recipient partner will net after taxes when dividing other marital assets.</p>
<p>And note that alimony has tax implications for both ex-spouses. It is taxable income to the recipient and can be deducted by the paying ex. Child support, however, offers no tax breaks to the paying ex, as it is not deductible. However, to the recipient it isn't taxable.</p>
<p>Tax breaks for retirement</p>
<p>Retiring</p>
<p>Your golden years will be more enjoyable if you take advantage of the many tax breaks afforded by retirement plans.</p>
<p>A traditional IRA contribution could produce a tax deduction when you file your tax return. Remember, though, that you'll have to pay taxes on this account when you start taking out money in retirement.</p>
<p>With a Roth IRA, you put in already-taxed money, but that means eventual distributions from a Roth are tax-free. The biggest drawback to a Roth is that you can't open or contribute to a Roth if you make a lot of money. However, regardless of your income, you can convert a traditional IRA to a Roth.</p>
<p>Workplace retirement plans, usually known as 401(k)s or Roth 401(k)s, offer similar retirement saving options, but with a nice bonus. Many employers match some of your plan contributions, which helps your retirement savings grow more quickly.</p>
<p>Social Security benefits generally are tax-free as long as you don't have a lot of other income.</p>
<p>And if you do have to file a tax return when you're older, you can claim a larger standard deduction amount simply because you're age 65 or older.</p> | true | 0 | babies weddings homes taxes continue reading taxes part life since parents welcomed world beginning spanking new tax break mom dad taxes important role major life events getting job saying buying selling homes kids even retiring cases involvement internal revenue service good thing many ways tax code best friend need know applies personal circumstances take advantage read learn tax breaks lifes big events advertisement tax breaks job getting first job uncle sam gets portion paycheck via payroll taxes however bit say much comes pay adjusting withholding much withheld youll get refund file thats necessarily bad wouldnt rather money yearround instead giving irs interestfree loan hand dont enough taken could face major tax bill possible underwithholding penalties filing time ask boss new form w4 run numbers adjust withholding job likely offers several tax breaks employer provides health care coverage medical insurance taxfree benefit youll find much thats worth next years w2 earnings statement flexible spending account fsa also might part job benefits save pretax dollars pay medical care covered insurance also want take advantage workplaces taxdeferred 401k retirement plan move take job even first one write many relocation costs tax breaks marriage getting married uncle sam probably wasnt guest wedding becomes big part life married taxpayer youve combined personal lives likely tax filing married filing jointly common choice married couples generally produces best tax results oncedreaded marriage tax penalty largely eliminated thanks broadening tax bracket filing status plus tax breaks arent allowed husband wife file separate returns husband wife work reassess withholding amounts irs says generally better higherearning spouse claim couples allowances w4 lower wage earner claiming zero reassess individual retirement accounts income limits apply taxfree roth accounts also deductible traditional iras contribute workplace plan combined income could affect retirement contributions update flexible spending account new marriage change family circumstances allows make midyear changes taxfavored company benefit plan tax breaks new parents children congratulations new baby let uncle sam help cover growing familys costs dependent youngster added exemption kids also allow parents claim child tax credit long youngster 16 end tax year large families might able get money back irs via refundable additional child tax credit family grew via adoption theres tax credit cover many costs process working parents use child dependent care credit pay costs caring kids job tax code also offers several ways save pay higher education costs including 529 college savings plans coverdell education savings account american opportunity lifetime learning tax credits tax breaks starting business starting business decide time break corporate cubicle start new business tax code help filing relatively easy sole proprietors report income part annual individual tax filing attaching schedule c form 1040 schedule c also offers many ways individual entrepreneurs write many business expenses among deductible smallbusiness costs home office expenses business use vehicle also deductible health insurance premiums contributions selfemployed retirement plans new businesses also allowed deduct thousands certain startup costs kids putting work sole proprietorship could taxsmart move depending much pay might owe income taxes deduct salary business expense starting business tax breaks sole proprietors also must pay selfemployment taxes equivalent payroll taxes collected wageearning employees employer employee sole proprietor pay boss worker components social security medicare taxes tax breaks homeownership buying home home probably biggest investment homeownership also provides many tax breaks interest paid primary residence mortgage 1 million deductible itemized expense take home equity loan line credit interest loans 100000 also deductible even interest second home tax deductible property tax pay main house residences also deductible tax benefit home even better sell 250000 sales gain 500000 married joint filers home taxfree long owned property two years lived two five years sale many home improvements structural additions kitchen modernization landscaping increase basis home essentially investment home larger basis means less profit might taxable home upgrades installing solar energy systems also get immediate tax credit help offset high cost type improvement tax breaks divorce situations dealing divorce marriage filing status determined last day tax year divorce final dec 31 considered unmarried full year one stickiest divorce issues child custody parent physical custody children year usually gets claim dependents means parent gets exemption child tax credit child care tax credit savings one spouse typically granted sole ownership family home could however pose problem solo owner lone ex sells property amount profit exempt capital gains 250000 versus 500000 married filing jointly homeowners exclude couples sell house divorce split taxfree profits similarly take account cash recipient partner net taxes dividing marital assets note alimony tax implications exspouses taxable income recipient deducted paying ex child support however offers tax breaks paying ex deductible however recipient isnt taxable tax breaks retirement retiring golden years enjoyable take advantage many tax breaks afforded retirement plans traditional ira contribution could produce tax deduction file tax return remember though youll pay taxes account start taking money retirement roth ira put alreadytaxed money means eventual distributions roth taxfree biggest drawback roth cant open contribute roth make lot money however regardless income convert traditional ira roth workplace retirement plans usually known 401ks roth 401ks offer similar retirement saving options nice bonus many employers match plan contributions helps retirement savings grow quickly social security benefits generally taxfree long dont lot income file tax return youre older claim larger standard deduction amount simply youre age 65 older | 871 |
<p>U.S. worker productivity has picked up modestly from recent dismal readings, but shows little sign of breaking out from a sluggish trend that threatens to hold back U.S. standards of living.</p>
<p>Nonfarm business-sector productivity, measured as the goods and services produced per hour worked, increased at a 0.9% seasonally adjusted annual rate in the second quarter, up from a 0.1% growth rate for the first three months of 2017, the Labor Department said Wednesday. Economists surveyed by The Wall Street Journal had expected a 0.6% growth rate for the latest quarter.</p>
<p>Continue Reading Below</p>
<p>Output rose at a 3.4% rate from the first quarter, while hours worked were up at a 2.5% pace.</p>
<p>Compared with a year earlier, productivity was up 1.2% in the second quarter, an improvement from last year's stall but still well below historical levels.</p>
<p>A similar annual trend "is likely to persist in the near to medium term, " MFR Inc. chief U.S. economist Joshua Shapiro said in a note to clients.</p>
<p>Productivity data tend to be volatile from quarter to quarter, and Wednesday's report included revisions going back several years. The productivity trend was slightly stronger than earlier estimated in 2014 and 2015, and slightly weaker than initially thought in 2016. Productivity fell 0.1% last year, the first calendar-year decline since 1982.</p>
<p>Annual growth averaged 1.2% from 2007 to 2016, versus the long-term average of 2.1%.</p>
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<p>Unit labor costs at nonfarm businesses rose at a 0.6% rate in the second quarter; economists had expected a 1.0% growth pace. From a year earlier, unit labor costs fell 0.2%.</p>
<p>In theory, higher labor costs can be passed on to consumers in the form of higher prices, though wage growth and consumer-price inflation have both been sluggish in recent years.</p>
<p>Productivity is a critical factor for determining the future trajectory of wages, prices and overall economic output. Rapid productivity gains, as seen during the information technology-fueled boom of the late 1990s and early 2000s, can boost household incomes and economic growth.</p>
<p>Sluggish productivity growth, on the other hand, can cause slower economic growth and prevent wages from rising much without generating uncomfortably high inflation.</p>
<p>"If labor productivity grows an average of 2% per year, average living standards for our children's generation will be twice what we experienced," Federal Reserve Vice Chairman Stanley Fischer said in a July speech. "If labor productivity grows an average of 1% per year, the difference is dramatic: Living standards will take two generations to double."</p>
<p>In the U.S., productivity growth was slowing before the recession began in December 2007 and has been historically weak throughout the recovery that began in mid-2009. That may have restrained wage growth and overall growth in economic activity in recent years.</p>
<p>Looking forward, some forecasters think continued sluggish productivity gains will help keep overall economic growth from exceeding its modest recent pace of roughly 2% a year. President Donald Trump has said he wants to boost U.S. economic growth above 3% a year, which likely would require a significant pickup in productivity growth.</p>
<p>Government policies could help promote stronger productivity growth, Mr. Fischer said, mentioning the potential for investment in basic research, early childhood education programs, infrastructure and other priorities.</p>
<p>"Reasonable people can disagree about the right way forward, but if we as a society are to succeed, we need to follow policies that will support and advance productivity growth," Mr. Fischer said. "That is easier said than done. But it can be done."</p>
<p>Write to Ben Leubsdorf at [email protected]</p>
<p>U.S. worker productivity picked up modestly in the second quarter but showed little sign of breaking out of the sluggish trend that has prevailed for more than a decade, holding back economic growth and living standards.</p>
<p>Nonfarm business-sector productivity, a measure of the goods and services produced per hour worked by individuals, rose at a 0.9% seasonally adjusted annual rate in the second quarter compared with the first three months of 2017, up from a 0.1% growth pace in the first quarter.</p>
<p>Compared with a year earlier, which is how economists often look at the longer-term trend, productivity was up 1.2% in the second quarter. That was a pickup from last year, when productivity posted its first calendar-year decline since 1982. It also matched the average pace since 2007, but remained well below the post-World War II average of 2.1% annual growth.</p>
<p>Following an "unusually bad" stretch in 2016, "we're pretty much on track with where we've been," said economist Martin Baily, a senior fellow at the Brookings Institution in Washington. "That's a very slow rate of growth, and something that I think all of us would like to see going faster."</p>
<p>Productivity is a critical factor for determining the future trajectory of wages, prices, overall economic output and government budget balances. Rapid productivity gains, as seen during the information technology-fueled boom of the late 1990s and early 2000s, can boost household incomes, economic growth and government tax receipts.</p>
<p>Sluggish productivity growth, on the other hand, can slow economic growth and prevent wages from rising much.</p>
<p>"If labor productivity grows an average of 2% per year, average living standards for our children's generation will be twice what we experienced," Federal Reserve Vice Chairman Stanley Fischer said in a July speech. "If labor productivity grows an average of 1% per year, the difference is dramatic: Living standards will take two generations to double."</p>
<p>In the U.S., productivity growth was slowing before the recession began in December 2007 and has been historically weak throughout the recovery that began in mid-2009. That likely restrained wage growth and overall growth in economic activity.</p>
<p>Some forecasters think continued modest productivity gains will help keep overall economic growth from exceeding its recent pace of roughly 2% a year.</p>
<p>President Donald Trump has said he wants to boost U.S. economic growth above 3% a year.</p>
<p>"If we can't get productivity up, it's just not going to happen," said Glenn Hubbard, dean of Columbia Business School and a former top White House economist under President George W. Bush.</p>
<p>Mr. Hubbard said the government can help to boost productivity growth by overhauling business taxes, rolling back regulations and supporting basic research. Such steps could increase business investment and the know-how that helps to fuel growth.</p>
<p>"Those would be the ingredients," he said. "I would start with tax reform, and I hope that's coming."</p>
<p>Mr. Baily, who was chairman of the White House Council of Economic Advisers under President Bill Clinton, said a corporate-tax overhaul, deregulation and other actions by the Trump administration could help improve the productivity outlook, but likely not enough to generate sustained 3% growth in gross domestic product.</p>
<p>"Assuming they're able to do what they say they're going to do...I could imagine this could add perhaps a half percentage point to productivity growth," he said.</p>
<p>"That would be an achievement," he added, though "it's not going to give this administration the GDP growth rates that they're looking for."</p>
<p>Mr. Fischer, the U.S. central bank's No. 2 official, said in his speech last month that "reasonable people can disagree about the right way forward, but if we as a society are to succeed, we need to follow policies that will support and advance productivity growth."</p>
<p>"Government policy works best," he added, "when it can address a need that the private sector neglects, including investment in basic research, infrastructure, early childhood education, schooling, and public health."</p>
<p>Productivity data tend to be volatile from quarter to quarter, and the Labor Department released revisions going back several years. The productivity trend was slightly stronger than earlier estimated in 2014 and 2015, and slightly weaker than initially thought in 2016. Productivity fell 0.1% last year, the first calendar-year decline since 1982.</p>
<p>Unit labor costs at nonfarm businesses rose at a 0.6% rate in the second quarter, less than economists had expected. From a year earlier, unit labor costs fell 0.2%.</p>
<p>Write to Ben Leubsdorf at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>August 09, 2017 12:46 ET (16:46 GMT)</p> | true | 0 | us worker productivity picked modestly recent dismal readings shows little sign breaking sluggish trend threatens hold back us standards living nonfarm businesssector productivity measured goods services produced per hour worked increased 09 seasonally adjusted annual rate second quarter 01 growth rate first three months 2017 labor department said wednesday economists surveyed wall street journal expected 06 growth rate latest quarter continue reading output rose 34 rate first quarter hours worked 25 pace compared year earlier productivity 12 second quarter improvement last years stall still well historical levels similar annual trend likely persist near medium term mfr inc chief us economist joshua shapiro said note clients productivity data tend volatile quarter quarter wednesdays report included revisions going back several years productivity trend slightly stronger earlier estimated 2014 2015 slightly weaker initially thought 2016 productivity fell 01 last year first calendaryear decline since 1982 annual growth averaged 12 2007 2016 versus longterm average 21 advertisement unit labor costs nonfarm businesses rose 06 rate second quarter economists expected 10 growth pace year earlier unit labor costs fell 02 theory higher labor costs passed consumers form higher prices though wage growth consumerprice inflation sluggish recent years productivity critical factor determining future trajectory wages prices overall economic output rapid productivity gains seen information technologyfueled boom late 1990s early 2000s boost household incomes economic growth sluggish productivity growth hand cause slower economic growth prevent wages rising much without generating uncomfortably high inflation labor productivity grows average 2 per year average living standards childrens generation twice experienced federal reserve vice chairman stanley fischer said july speech labor productivity grows average 1 per year difference dramatic living standards take two generations double us productivity growth slowing recession began december 2007 historically weak throughout recovery began mid2009 may restrained wage growth overall growth economic activity recent years looking forward forecasters think continued sluggish productivity gains help keep overall economic growth exceeding modest recent pace roughly 2 year president donald trump said wants boost us economic growth 3 year likely would require significant pickup productivity growth government policies could help promote stronger productivity growth mr fischer said mentioning potential investment basic research early childhood education programs infrastructure priorities reasonable people disagree right way forward society succeed need follow policies support advance productivity growth mr fischer said easier said done done write ben leubsdorf benleubsdorfwsjcom us worker productivity picked modestly second quarter showed little sign breaking sluggish trend prevailed decade holding back economic growth living standards nonfarm businesssector productivity measure goods services produced per hour worked individuals rose 09 seasonally adjusted annual rate second quarter compared first three months 2017 01 growth pace first quarter compared year earlier economists often look longerterm trend productivity 12 second quarter pickup last year productivity posted first calendaryear decline since 1982 also matched average pace since 2007 remained well postworld war ii average 21 annual growth following unusually bad stretch 2016 pretty much track weve said economist martin baily senior fellow brookings institution washington thats slow rate growth something think us would like see going faster productivity critical factor determining future trajectory wages prices overall economic output government budget balances rapid productivity gains seen information technologyfueled boom late 1990s early 2000s boost household incomes economic growth government tax receipts sluggish productivity growth hand slow economic growth prevent wages rising much labor productivity grows average 2 per year average living standards childrens generation twice experienced federal reserve vice chairman stanley fischer said july speech labor productivity grows average 1 per year difference dramatic living standards take two generations double us productivity growth slowing recession began december 2007 historically weak throughout recovery began mid2009 likely restrained wage growth overall growth economic activity forecasters think continued modest productivity gains help keep overall economic growth exceeding recent pace roughly 2 year president donald trump said wants boost us economic growth 3 year cant get productivity going happen said glenn hubbard dean columbia business school former top white house economist president george w bush mr hubbard said government help boost productivity growth overhauling business taxes rolling back regulations supporting basic research steps could increase business investment knowhow helps fuel growth would ingredients said would start tax reform hope thats coming mr baily chairman white house council economic advisers president bill clinton said corporatetax overhaul deregulation actions trump administration could help improve productivity outlook likely enough generate sustained 3 growth gross domestic product assuming theyre able say theyre going doi could imagine could add perhaps half percentage point productivity growth said would achievement added though going give administration gdp growth rates theyre looking mr fischer us central banks 2 official said speech last month reasonable people disagree right way forward society succeed need follow policies support advance productivity growth government policy works best added address need private sector neglects including investment basic research infrastructure early childhood education schooling public health productivity data tend volatile quarter quarter labor department released revisions going back several years productivity trend slightly stronger earlier estimated 2014 2015 slightly weaker initially thought 2016 productivity fell 01 last year first calendaryear decline since 1982 unit labor costs nonfarm businesses rose 06 rate second quarter less economists expected year earlier unit labor costs fell 02 write ben leubsdorf benleubsdorfwsjcom end dow jones newswires august 09 2017 1246 et 1646 gmt | 871 |
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<p>Image source: Apple.</p>
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<p>Apple (NASDAQ: AAPL) is expected to announce its financial results for the fourth quarter of its fiscal year 2016 and, more importantly, provide a forecast for how it expects its business to perform in the first quarter of its fiscal year 2017.</p>
<p>The first quarter in every Apple fiscal year represents the company's peak quarter, as it's the first full quarter that incorporates sales of the company's newest iPhone models, and iPhone sales comprise the <a href="http://www.fool.com/investing/2016/10/13/apple-incs-iphone-business-3-things-investors-need.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">majority of the company's revenue Opens a New Window.</a>. Apple's performance in this quarter tends to set the pace for the remainder of the fiscal year, as it typically only does one flagship iPhone release in a given year.</p>
<p>With that in mind, here are three things that Apple management needs to address on its upcoming earnings call, after market close on Oct. 25.</p>
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<p>It is going to be absolutely critical for Apple to let investors in on how the iPhone 7 and iPhone 7 Plus are selling, in aggregate, relative to last year's iPhone 6s and iPhone 6s Plus. Apple has insight into both its build plans and the number of iPhones it's shipping to its distribution partners (known as "sell-in"), and it is very likely that the company has gotten enough feedback from said distribution partners to know how quickly those units are being sold to end customers (known as "sell-through").</p>
<p>Early on in the iPhone lifecycle, Apple's sell-in is pretty much limited to its ability to crank out the new phones (as demand tends to exceed supply). However, after a while Apple's production capabilities improve and the initial surge of demand usually moderates, leading to a situation in which supply and demand are in sync (or "balanced").</p>
<p>Is end demand for the iPhone 7 series of smartphones faring better than that for the iPhone 6s series of phones? If the answer is "yes," then that might indicate that iPhone demand bottomed with the iPhone 6s series, alleviating some of the fears that the iPhone 6 (which outsold the iPhone 6s series) represented "peak iPhone."</p>
<p>If not, then I suspect investors will watch the next iPhone cycle very closely, as Apple is expected to bring a substantially redesigned set of smartphones then. If those devices fail to stimulate demand growth (assuming the iPhone 7 and iPhone 7 Plus don't do the trick), the iPhone 6 may truly have been "peak iPhone."</p>
<p>Although much of the focus is going to be on how the flagship iPhones are doing, Apple still sells a reasonable quantity of mid-range smartphones (Apple now serves this market with the iPhone 6s and iPhone 6s Plus) and low-end smartphones (Apple uses the iPhone SE here).</p>
<p>It would be interesting to hear how demand for the iPhone SE, which Apple released back in March to tackle the $399 to $499 smartphone market, is holding up. Has this device been able to help push Apple's share in these price points meaningfully upwards?</p>
<p>Perhaps more important, though, would be commentary on how the iPhone 6s and iPhone 6s Plus sales are progressing, now that they have seen both price cuts and storage-capacity increases. In particular, how are sales of these phones progressing, relative to how the iPhone 6 and iPhone 6 Plus sold when they were Apple's mid-range offerings?</p>
<p>Insight into sales of these products may make it easier for investors to make educated guesses on how many iPhones the company will sell throughout fiscal year 2017.</p>
<p>The iPhone 7 cycle is unique in that the iPhone 7 Plus is far and away the superior phone to the vanilla iPhone 7. The camera is obviously superior on the iPhone 7 Plus (likely the biggest selling point for the larger phone over the smaller, for most people), and the display is sharper (while being just as color-accurate, according to several third-party tests).</p>
<p>Additionally, while the iPhone 7 seems to be in reasonable supply, many iPhone 7 Plus models are still quite hard to get hold of in a reasonable time frame.</p>
<p>Though it may simply be the case that the iPhone 7 Plus is much more difficult to manufacture than the iPhone 7, it may instead be that demand for the 7 Plus relative to the vanilla 7 this year is significantly higher than it has been for prior Plus models relative to their non-Plus counterparts.</p>
<p>That's something that I'd like to see Apple shine more light on.</p>
<p>If higher demand ultimately proves to be the cause, Apple could be looking at a boost in iPhone average selling prices, as iPhone 7 Plus models are $120 more expensive than their iPhone 7 counterparts. Such an average selling-price improvement from a mix shift would be amplified by the fact that this year's iPhone 7 Plus models sell for $20 more than their iPhone 6s Plus counterparts did, when they were Apple's flagships.</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/aeassa/info.aspx" type="external">Ashraf Eassa Opens a New Window.</a> has no position in any stocks mentioned. 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.</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 apple continue reading apple nasdaq aapl expected announce financial results fourth quarter fiscal year 2016 importantly provide forecast expects business perform first quarter fiscal year 2017 first quarter every apple fiscal year represents companys peak quarter first full quarter incorporates sales companys newest iphone models iphone sales comprise majority companys revenue opens new window apples performance quarter tends set pace remainder fiscal year typically one flagship iphone release given year mind three things apple management needs address upcoming earnings call market close oct 25 advertisement going absolutely critical apple let investors iphone 7 iphone 7 plus selling aggregate relative last years iphone 6s iphone 6s plus apple insight build plans number iphones shipping distribution partners known sellin likely company gotten enough feedback said distribution partners know quickly units sold end customers known sellthrough early iphone lifecycle apples sellin pretty much limited ability crank new phones demand tends exceed supply however apples production capabilities improve initial surge demand usually moderates leading situation supply demand sync balanced end demand iphone 7 series smartphones faring better iphone 6s series phones answer yes might indicate iphone demand bottomed iphone 6s series alleviating fears iphone 6 outsold iphone 6s series represented peak iphone suspect investors watch next iphone cycle closely apple expected bring substantially redesigned set smartphones devices fail stimulate demand growth assuming iphone 7 iphone 7 plus dont trick iphone 6 may truly peak iphone although much focus going flagship iphones apple still sells reasonable quantity midrange smartphones apple serves market iphone 6s iphone 6s plus lowend smartphones apple uses iphone se would interesting hear demand iphone se apple released back march tackle 399 499 smartphone market holding device able help push apples share price points meaningfully upwards perhaps important though would commentary iphone 6s iphone 6s plus sales progressing seen price cuts storagecapacity increases particular sales phones progressing relative iphone 6 iphone 6 plus sold apples midrange offerings insight sales products may make easier investors make educated guesses many iphones company sell throughout fiscal year 2017 iphone 7 cycle unique iphone 7 plus far away superior phone vanilla iphone 7 camera obviously superior iphone 7 plus likely biggest selling point larger phone smaller people display sharper coloraccurate according several thirdparty tests additionally iphone 7 seems reasonable supply many iphone 7 plus models still quite hard get hold reasonable time frame though may simply case iphone 7 plus much difficult manufacture iphone 7 may instead demand 7 plus relative vanilla 7 year significantly higher prior plus models relative nonplus counterparts thats something id like see apple shine light higher demand ultimately proves cause apple could looking boost iphone average selling prices iphone 7 plus models 120 expensive iphone 7 counterparts average sellingprice improvement mix shift would amplified fact years iphone 7 plus models sell 20 iphone 6s plus counterparts apples flagships 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 position stocks mentioned 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 | 575 |
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<p>The topic of car insurance comes up in a conversation with friends. You learn that you all have the same insurance company and coverage, but they pay hundreds of dollars more each year. You suspect that your friends are serial car-crashers - but you'd probably be wrong.</p>
<p>Continue Reading Below</p>
<p>Forces unknown to you -- and even to insurance regulators - are likely picking the lucky ones in the car insurance lottery. Your premiums might have as much to do with a utility bill as safe driving.</p>
<p>How does it work? Auto insurers predict the likelihood of how much you'll cost them before they determine your annual premium. To do this, they need to know as much as possible about you: specifically, whether you're likely to experience an accident, theft or fire. And they use numerous predictive indicators to figure it out.</p>
<p>You might think much of this data has little to do with your driving skills, but insurers say they have found correlations between data and the likelihood you'll file a claim.</p>
<p>FICO is old news</p>
<p>Many old-school rate-setting techniques are still used. Reaching age 65 may cost you more. Belonging to an affinity grouplike AARP could get you a betterpremium. Women are often quoted lower rates than men; married people usually get a better price than singles.</p>
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<p>Another traditional data source for insurers is FICO, an acronym for publicly held Fair Isaac Corp., which provides models used in credit scoring, including insurance scores used by insurers.</p>
<p>"All our models know is: If you assumed credit responsibilities, how are you managing those responsibilities," says Lamont Boyd, the insurance market director of analytics for FICO. "Each insurance company decides if and how they want to use these scores as part of their overall pricing."</p>
<p>The director of insurance for the Consumer Federation of America (CFA), Robert Hunter, says otherwise, charging that FICO's models inherently discriminate against the poor and minorities. But 46 out of 50 state insurance regulators allow insurers to use FICO models, and only California and Hawaii totally ban their use. One reason: FICO is an accepted yardstick.</p>
<p>"State regulators fully understand FICO's role in the industry," says Boyd.</p>
<p>But probing your life has gotten a lot more sophisticated than simply using credit history. Loads of consumer data, not ordinarily reported to credit agencies, now get harvested by "data miners" including Scorelogix, L2C and the LexisNexis unit ChoicePoint.</p>
<p>What these data miners know about you -- and share with insurers -- can seem very invasive. The Federal Insurance Office (FIO), formed as part of The Dodd-Frank Wall Street Reform and Consumer Protection Act, recently suggested that regulators not only watch the insurers, but also keep a close eye on the vendors that provide this information to the insurers to set rates.</p>
<p>More scores</p>
<p>Scorelogix provides a Job Security Score (JSS) that rates how likely a person is to keep his or her job. If you believe the JSS formula, then a university professor with tenure is far more insurable, and at a lower rate, than an independent contractor. And the JSS even factors in the local economy, according to Bloomberg.</p>
<p>The website fatwallet.com says that L2C checks your cell phone, rent and utility bills, as well as subscription payment data to evaluate credit risk.</p>
<p>Some data miners use publicly available sources, such as courthouse records, to find out anything about you: birthplace, age, marital status and current residence, and may even monitor your magazine subscriptions. Since some of this data could be part of your insurance application, it allows insurers to check for accuracy.</p>
<p>Catastrophe modeling provides insurers with an additional layer of data, showing how often an area is likely to experience extreme weather.</p>
<p>Some insurers may even factor in <a href="http://www.insure.com/car-insurance/unlikely-to-switch-might-be-charged-more.html?WT.qs_osrc=fxb-183009110" type="external">how likely you are to switch insurers Opens a New Window.</a> if they raise your rates, says the CFA's Hunter.</p>
<p>"We see insurers using auto theft rates, catastrophe modeling and a lot of information from third parties," says Nancy Kincaid, a spokesperson for the California Department of Insurance.</p>
<p>But you'll never know what cocktail of data has gone into setting your own rate. Every insurer keeps its own algorithm private, for competitive reasons.</p>
<p>'Judicial hellholes'</p>
<p>No one says data use is consistent. For example, since gay marriages are not recognized in about 30 states, same-sex partners won't get the better "married" prices. The director of the FIO, Michael McRaith, points out that same-sex couples could pay up to 20% more in those states.</p>
<p>The Insurance Information Institute (III), which represents property insurers, notes that another factor in determining rates is what the III refers to as "judicial hellholes."</p>
<p>"New Jersey has the most lawyers of any state," says III spokesperson Loretta Worters. "Couple that with large medicals costs and it's not surprising that it has some of the highest insurance rates in the country," she adds. (See Insure.com's state rankings of <a href="http://www.insure.com/car-insurance/car-insurance-rates.html?WT.qs_osrc=fxb-183009110" type="external">car insurance rates Opens a New Window.</a>.)</p>
<p>Challenging the status quo</p>
<p>Now some groups want to expose the rate-setting process.</p>
<p>Among them is the National Conference of Insurance Legislators or NCOIL, state representatives whose committees keep an eye on insurance regulators. NCOIL supports a "model act" that requires insurance companies to, among other things, give consumers the right to challenge their credit information based on extraordinary circumstances like divorce, serious illness, identity theft, job loss or military deployment. It would be up to each state whether to implement the model act.</p>
<p>The FIO is challenging the use of credit history. In December 2013 the office pointed out that a driver with a poor credit report could pay up to 40% more in premiums. While the FIO admits that insurance scoring is an "important tool," it says regulators should be aware of the dangers of data mining.</p>
<p>In an ominous warning to state regulators, who value their independence, the FIO says it will "monitor state regulatory activity and move for federal involvement" if it sees discrimination against the poor, minorities or gays.</p>
<p>Kincaid feels that this extra layer of regulation is unnecessary. "Simply regulating insurers gives us what we need to protect consumers," she says.</p>
<p>Insurers argue that looking at your credit, your utility bill, your job security or anything else is a viable predictor of your future claims. They're also making in-roads to take a closer look at your actual driving, with telematics programs that deliver a vast amount of information on how and when you use your car. Pretty soon they might actually know why you're a good driver.</p>
<p>The original article can be found at Insure.com: <a href="http://www.insure.com/car-insurance/good-driver-but-no-one-knows-why.html?WT.qs_osrc=fxb-183009110" type="external">You're a good driver but no one knows why Opens a New Window.</a></p> | true | 0 | topic car insurance comes conversation friends learn insurance company coverage pay hundreds dollars year suspect friends serial carcrashers youd probably wrong continue reading forces unknown even insurance regulators likely picking lucky ones car insurance lottery premiums might much utility bill safe driving work auto insurers predict likelihood much youll cost determine annual premium need know much possible specifically whether youre likely experience accident theft fire use numerous predictive indicators figure might think much data little driving skills insurers say found correlations data likelihood youll file claim fico old news many oldschool ratesetting techniques still used reaching age 65 may cost belonging affinity grouplike aarp could get betterpremium women often quoted lower rates men married people usually get better price singles advertisement another traditional data source insurers fico acronym publicly held fair isaac corp provides models used credit scoring including insurance scores used insurers models know assumed credit responsibilities managing responsibilities says lamont boyd insurance market director analytics fico insurance company decides want use scores part overall pricing director insurance consumer federation america cfa robert hunter says otherwise charging ficos models inherently discriminate poor minorities 46 50 state insurance regulators allow insurers use fico models california hawaii totally ban use one reason fico accepted yardstick state regulators fully understand ficos role industry says boyd probing life gotten lot sophisticated simply using credit history loads consumer data ordinarily reported credit agencies get harvested data miners including scorelogix l2c lexisnexis unit choicepoint data miners know share insurers seem invasive federal insurance office fio formed part doddfrank wall street reform consumer protection act recently suggested regulators watch insurers also keep close eye vendors provide information insurers set rates scores scorelogix provides job security score jss rates likely person keep job believe jss formula university professor tenure far insurable lower rate independent contractor jss even factors local economy according bloomberg website fatwalletcom says l2c checks cell phone rent utility bills well subscription payment data evaluate credit risk data miners use publicly available sources courthouse records find anything birthplace age marital status current residence may even monitor magazine subscriptions since data could part insurance application allows insurers check accuracy catastrophe modeling provides insurers additional layer data showing often area likely experience extreme weather insurers may even factor likely switch insurers opens new window raise rates says cfas hunter see insurers using auto theft rates catastrophe modeling lot information third parties says nancy kincaid spokesperson california department insurance youll never know cocktail data gone setting rate every insurer keeps algorithm private competitive reasons judicial hellholes one says data use consistent example since gay marriages recognized 30 states samesex partners wont get better married prices director fio michael mcraith points samesex couples could pay 20 states insurance information institute iii represents property insurers notes another factor determining rates iii refers judicial hellholes new jersey lawyers state says iii spokesperson loretta worters couple large medicals costs surprising highest insurance rates country adds see insurecoms state rankings car insurance rates opens new window challenging status quo groups want expose ratesetting process among national conference insurance legislators ncoil state representatives whose committees keep eye insurance regulators ncoil supports model act requires insurance companies among things give consumers right challenge credit information based extraordinary circumstances like divorce serious illness identity theft job loss military deployment would state whether implement model act fio challenging use credit history december 2013 office pointed driver poor credit report could pay 40 premiums fio admits insurance scoring important tool says regulators aware dangers data mining ominous warning state regulators value independence fio says monitor state regulatory activity move federal involvement sees discrimination poor minorities gays kincaid feels extra layer regulation unnecessary simply regulating insurers gives us need protect consumers says insurers argue looking credit utility bill job security anything else viable predictor future claims theyre also making inroads take closer look actual driving telematics programs deliver vast amount information use car pretty soon might actually know youre good driver original article found insurecom youre good driver one knows opens new window | 664 |
<p />
<p>Capital markets can’t work efficiently unless investors trust the process. They’ll put their hard-earned money under the mattress instead.</p>
<p>Continue Reading Below</p>
<p>With that in mind, investor trust in financial markets rises and falls in direct proportion to the levels of transparency and accountability found in those markets.</p>
<p>Consequently, it’s not surprising that both attributes are held up as key to the core mission of the <a href="" type="internal">Securities and Exchange Commission</a>, the regulatory agency that oversees U.S. securities markets.</p>
<p>However, a spate of recent insider trading cases and several well-publicized instances in which major investment banks have been accused of defrauding their clients for their own gain have raised concerns for transparency and accountability in U.S. securities markets.</p>
<p>Investor trust has been sorely tested by all of this.</p>
<p>A mission statement found on the SEC’s website elaborates at length on the powerful relationship between transparency, accountability and healthy markets. The statement includes the following sentence: “Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.”</p>
<p>How, then, to reconcile that core mission with the SEC’s long-standing policy of allowing financial institutions to settle enforcement actions without admitting or denying guilt?</p>
<p>Common sense suggests that no good purpose can be served if a company accused of financial wrongdoings can sweep those allegations away by paying a fine and “neither admitting nor denying” guilt.</p>
<p>If guilt is neither admitted nor denied then for all intents and purposes nothing really happened. There was no wrongdoing to acknowledge and business continues as usual.</p>
<p>So much for transparency and accountability.</p>
<p>U.S. District Judge Jed Rakoff took direct aim at that regulatory paradox in a ruling last November that threw out a $285 million settlement between the SEC and Citigroup (NYSE:C) over allegations the bank defrauded investors in a $1 billion deal tied to mortgage backed securities that eventually blew up.</p>
<p>Rakoff articulately made his point from the perspective of a judge trying to determine whether the $285 million settlement was fair. How could he know whether it was fair, he asked, if the settlement allowed Citigroup to remain silent on the SEC’s allegations.</p>
<p>The judge’s ruling can essentially be boiled down to this: if Citigroup agreed to pay $285 million to settle the SEC’s allegations, then presumably something happened to warrant such a fine. But if we don’t know what happened, how do we know whether the punishment fits the crime?</p>
<p>Rakoff wrote, “… most obviously, the proposed Consent Judgment does not serve the public interest, because it asks the Court to employ its power and assert its authority when it does not know the facts.”</p>
<p>The judge’s opinion taps into a related criticism of SEC settlements with big investment banks: that the multi-million dollar fines are eye-catching but amount to little more than spare change to the banks that agree to pay them.</p>
<p>In any case, the same reasoning used by the judge can also apply to investors. If Citigroup neither admitted nor denied doing anything wrong, how can investors who lost money in the alleged fraud know whether they were cheated or not? And if they don’t know whether they were cheated how can they go about fighting to be reimbursed for their losses?</p>
<p>“There are real dollar and sense reasons why this issue is so important.”</p>
<p>Rakoff’s was (and is) potentially a landmark ruling, one that put corporations and government regulatory bodies on notice that settlements of convenience reached for quick headlines and to expediently make charges go away might be on their way out.</p>
<p>The SEC is appealing Rakoff’s decision and has strongly defended itself and the four-decade-old ‘neither admit nor deny’ policy. In a nutshell, the agency has argued that the policy is a necessary tool in obtaining financial settlements with rogue companies. Without the wording, deep-pocketed companies would fight SEC enforcement actions in perpetuity and the SEC, with its limited funds, would be all but helpless to match the accused dollar for dollar.</p>
<p>The SEC seemed to relent a bit earlier this month, announcing a change to the policy that would block defendant companies from using the ‘neither admitted nor denied guilt’ working when the company in question has already been convicted of or admitted to related criminal charges.</p>
<p>Critics say the shift is virtually meaningless because it applies to so few companies facing SEC enforcement actions.</p>
<p>Andrew Stoltmann, a Chicago-based securities lawyer, said the new policy would apply only to the “most egregious criminal cases possible” and that he has trouble seeing how it helps restore investors’ badly shaken faith in U.S. markets.</p>
<p>Its impact will be “marginal, at best,” Stoltmann said.</p>
<p>SEC Enforcement Director Robert Khuzami has denied that the new policy came in response to Rakoff’s ruling.</p>
<p>Khuzami, who acknowledged that the new policy would apply to a minority of the SEC’s cases, said the change had been in the works well ahead of Rakoff’s ruling. “It … seemed unnecessary for there to be a 'neither admit' provision in those cases where a defendant had been criminally convicted of conduct that formed the basis of a parallel civil enforcement proceeding,” he said.</p>
<p>Stoltmann doubts that. “This is typical of the SEC. They basically got their arm twisted so hard and they were embarrassed so badly by Judge Rakoff that they had to do something.”</p>
<p>“If they really wanted to help investors they’d implement (the new policy) for virtually all of its cases,” he added.</p>
<p>In other words, very few companies that agree to settle SEC allegations of wrongdoing should be able to hide behind the "neither admitted nor denied guilt" phrase.</p>
<p>The benefits to investors by removing the phrase altogether from SEC settlements are tangible.For instance, it would make it much easier for investors involved in civil litigations against big investment banks to recoup their losses if those banks were forced to acknowledge liability in cases brought by the SEC.</p>
<p>“If companies have to admit to liability, that will make the loss recovery process infinitely easier,” said Stoltmann. “There are real dollar and sense reasons why this issue is so important.”</p>
<p>Advertisement</p> | true | 0 | capital markets cant work efficiently unless investors trust process theyll put hardearned money mattress instead continue reading mind investor trust financial markets rises falls direct proportion levels transparency accountability found markets consequently surprising attributes held key core mission securities exchange commission regulatory agency oversees us securities markets however spate recent insider trading cases several wellpublicized instances major investment banks accused defrauding clients gain raised concerns transparency accountability us securities markets investor trust sorely tested mission statement found secs website elaborates length powerful relationship transparency accountability healthy markets statement includes following sentence steady flow timely comprehensive accurate information people make sound investment decisions reconcile core mission secs longstanding policy allowing financial institutions settle enforcement actions without admitting denying guilt common sense suggests good purpose served company accused financial wrongdoings sweep allegations away paying fine neither admitting denying guilt guilt neither admitted denied intents purposes nothing really happened wrongdoing acknowledge business continues usual much transparency accountability us district judge jed rakoff took direct aim regulatory paradox ruling last november threw 285 million settlement sec citigroup nysec allegations bank defrauded investors 1 billion deal tied mortgage backed securities eventually blew rakoff articulately made point perspective judge trying determine whether 285 million settlement fair could know whether fair asked settlement allowed citigroup remain silent secs allegations judges ruling essentially boiled citigroup agreed pay 285 million settle secs allegations presumably something happened warrant fine dont know happened know whether punishment fits crime rakoff wrote obviously proposed consent judgment serve public interest asks court employ power assert authority know facts judges opinion taps related criticism sec settlements big investment banks multimillion dollar fines eyecatching amount little spare change banks agree pay case reasoning used judge also apply investors citigroup neither admitted denied anything wrong investors lost money alleged fraud know whether cheated dont know whether cheated go fighting reimbursed losses real dollar sense reasons issue important rakoffs potentially landmark ruling one put corporations government regulatory bodies notice settlements convenience reached quick headlines expediently make charges go away might way sec appealing rakoffs decision strongly defended fourdecadeold neither admit deny policy nutshell agency argued policy necessary tool obtaining financial settlements rogue companies without wording deeppocketed companies would fight sec enforcement actions perpetuity sec limited funds would helpless match accused dollar dollar sec seemed relent bit earlier month announcing change policy would block defendant companies using neither admitted denied guilt working company question already convicted admitted related criminal charges critics say shift virtually meaningless applies companies facing sec enforcement actions andrew stoltmann chicagobased securities lawyer said new policy would apply egregious criminal cases possible trouble seeing helps restore investors badly shaken faith us markets impact marginal best stoltmann said sec enforcement director robert khuzami denied new policy came response rakoffs ruling khuzami acknowledged new policy would apply minority secs cases said change works well ahead rakoffs ruling seemed unnecessary neither admit provision cases defendant criminally convicted conduct formed basis parallel civil enforcement proceeding said stoltmann doubts typical sec basically got arm twisted hard embarrassed badly judge rakoff something really wanted help investors theyd implement new policy virtually cases added words companies agree settle sec allegations wrongdoing able hide behind neither admitted denied guilt phrase benefits investors removing phrase altogether sec settlements tangiblefor instance would make much easier investors involved civil litigations big investment banks recoup losses banks forced acknowledge liability cases brought sec companies admit liability make loss recovery process infinitely easier said stoltmann real dollar sense reasons issue important advertisement | 573 |
<p>2016 has been a trial for stocks in general and technology stocks in particular.</p>
<p>As of mid-February, the technology sector of the S&amp;P 500 was down over 10% year-to-date. While not quite as bad as the recent 14% decline among Financials, it wouldn’t be considered good, either.</p>
<p>Continue Reading Below</p>
<p>Heck, even the energy sector was down “only” 7% over that same time frame.</p>
<p>Of note has been the early 2016 takedown of numerous tech favorites that were the Chosen Ones in 2015 as the market breadth narrowed, leaving a few winners–I’m looking at you, Amazon <a href="http://stocks.covestor.com/amzn" type="external">(AMZN) Opens a New Window.</a> and LinkedIn <a href="http://stocks.covestor.com/lnkd" type="external">(LKND) Opens a New Window.</a> while the rest of the market was already edging toward bear territory.</p>
<p>But as difficult as the recently concluded fourth quarter earnings season has been for some investors, quality has a way of asserting itself.</p>
<p>We believe the following three companies have the strength to navigate the turbulence better than others. (Note that while these are all small capitalization stocks, they all have analyst coverage from Wall Street investment banks and all have well over $1 million in daily trading volume.)</p>
<p>Insperity <a href="https://www.google.com/finance?cid=659894" type="external">(NSP) Opens a New Window.</a>; Market Cap: $1.1B</p>
<p>Insperity is a human resources firm that currently has over 153,000 ‘work site employees’ performing various tasks for its clients, including payroll administration, workers compensation programs and regulatory compliance.</p>
<p>Insperity actually ‘missed’ fourth quarter analyst estimates when it reported on February 12. But this was due to several non-repeating expenses.</p>
<p>Meanwhile, the company returned over $250 million to shareholders in 2015 via share buybacks and dividends. And outstanding cost control allowed them to credibly issue guidance for the March quarter and the full year of 2016 that was significantly above existing estimates.</p>
<p>NSP shares rose about 7% the day it reported. But 2016 EPS guidance was about 20% higher than existing consensus. So there’s more room for the stock to run.</p>
<p>FormFactor (FORM); Market Cap: $369m</p>
<p>FormFactor makes semiconductor test equipment for testing memory and logic chips between the wafer-stage of chip manufacturing and their ultimate packaging.</p>
<p>Although some segments of the semiconductor ecosystem (PCs) are weak, other segments (smart phones, drones, action cameras, etc.) are healthy and growing.</p>
<p>So while it’s business-as-usual at FormFactor, the company just announced the acquisition of Cascade Microtech, which has a similar but not overlapping product set.</p>
<p>So the deal, which has already been approved by each company’s Board of Directors, promises significant efficiencies.</p>
<p>For example, while FormFactor reported $0.38 in Non-GAAP EPS for all of 2015, the company’s own calculation is that pro-forma earnings (assuming the two companies were combined for all of 2015) would have been $0.65.</p>
<p>And that just takes into account the overlapping cost and tax synergies of the deal – not any future savings from eliminating overlapping R&amp;D and sales efforts.</p>
<p>Meanwhile FORM shares have hardly budged since the deal was announced, leaving plenty of time to do your own research.</p>
<p>Advanced Energy Industries (AEIS); Market Cap: $1.1 billion</p>
<p>Advanced Energy makes precision power equipment used by others in the manufacture of semiconductor, solar panel and others high technology end-products.</p>
<p>Even though the semiconductor industry overall has been in a cyclical downturn, AEIS has managed to power through the slump with their own semi-related revenue reaching record highs for the full year 2015.</p>
<p>And when the company reported its fourth quarter earnings on February 1, it issued earnings guidance for the first quarter (ending March 31) of $0.40 – $0.50 per share, solidly above the existing analyst consensus of $0.38 per share.</p>
<p>In short, it’s business as usual at AEIS, with lots of cash generation, share buybacks and market share gains. Shares of AEIS rose only 1% on February 2, the day after it announced earnings.</p>
<p>Of course, February 2 was one of the many days so far this year that the overall stock market was down sharply. That kind of relative strength bodes well for AEIS shares, something investors can keep in mind as they look over the company.</p>
<p>Photo Credit: <a href="https://www.flickr.com/photos/68397968@N07/" type="external">MattysFlicks Opens a New Window.</a>via <a href="https://www.flickr.com/" type="external">Flickr Creative Commons Opens a New Window.</a></p>
<p>Any investments discussed in this article are for illustrative purposes only and there is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments are presented for discussion purposes only and are not a reliable indicator of the performance or investment profile of any composite or client account. Further, the reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.</p>
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<p>The post <a href="http://investing.covestor.com/2016/02/tech-stocks-stormy-markets" type="external">3 tech stocks for stormy markets Opens a New Window.</a> appeared first on <a href="http://investing.covestor.com" type="external">Smarter Investing Opens a New Window.</a>Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.</p>
<p>Advertisement</p> | true | 0 | 2016 trial stocks general technology stocks particular midfebruary technology sector sampp 500 10 yeartodate quite bad recent 14 decline among financials wouldnt considered good either continue reading heck even energy sector 7 time frame note early 2016 takedown numerous tech favorites chosen ones 2015 market breadth narrowed leaving winnersim looking amazon amzn opens new window linkedin lknd opens new window rest market already edging toward bear territory difficult recently concluded fourth quarter earnings season investors quality way asserting believe following three companies strength navigate turbulence better others note small capitalization stocks analyst coverage wall street investment banks well 1 million daily trading volume insperity nsp opens new window market cap 11b insperity human resources firm currently 153000 work site employees performing various tasks clients including payroll administration workers compensation programs regulatory compliance insperity actually missed fourth quarter analyst estimates reported february 12 due several nonrepeating expenses meanwhile company returned 250 million shareholders 2015 via share buybacks dividends outstanding cost control allowed credibly issue guidance march quarter full year 2016 significantly existing estimates nsp shares rose 7 day reported 2016 eps guidance 20 higher existing consensus theres room stock run formfactor form market cap 369m formfactor makes semiconductor test equipment testing memory logic chips waferstage chip manufacturing ultimate packaging although segments semiconductor ecosystem pcs weak segments smart phones drones action cameras etc healthy growing businessasusual formfactor company announced acquisition cascade microtech similar overlapping product set deal already approved companys board directors promises significant efficiencies example formfactor reported 038 nongaap eps 2015 companys calculation proforma earnings assuming two companies combined 2015 would 065 takes account overlapping cost tax synergies deal future savings eliminating overlapping rampd sales efforts meanwhile form shares hardly budged since deal announced leaving plenty time research advanced energy industries aeis market cap 11 billion advanced energy makes precision power equipment used others manufacture semiconductor solar panel others high technology endproducts even though semiconductor industry overall cyclical downturn aeis managed power slump semirelated revenue reaching record highs full year 2015 company reported fourth quarter earnings february 1 issued earnings guidance first quarter ending march 31 040 050 per share solidly existing analyst consensus 038 per share short business usual aeis lots cash generation share buybacks market share gains shares aeis rose 1 february 2 day announced earnings course february 2 one many days far year overall stock market sharply kind relative strength bodes well aeis shares something investors keep mind look company photo credit mattysflicks opens new windowvia flickr creative commons opens new window investments discussed article illustrative purposes assurance adviser make investments similar characteristics investments presented investments presented discussion purposes reliable indicator performance investment profile composite client account reader assume investments identified profitable investment recommendations investment decisions make future profitable opens new window subscribe onceweekly email newsletter get best posts delivered one convenient place browse leisure post 3 tech stocks stormy markets opens new window appeared first smarter investing opens new windowcovestor ltd registered investment advisor covestor licenses investment strategies model managers establish investment models commentary provided general impersonal information construed recommendations advice information model managers thirdparty sources deemed reliable guaranteed past performance guarantee future results transaction histories covestor models available upon request additional important disclosures available httpsitecovestorcomhelpdisclosures advertisement | 530 |
<p>On October 16, Media Matters launched its all-out defense of its favored 2016 presidential candidate, Hillary Clinton, with an ebook wishfully titled The Benghazi Hoax. The ebook, written by Media Matters founder David Brock and senior fellow Ari Rabin-Havt, is a typical Media Matters screed, a deliberate misdirection from the central concerns about Benghazi by “debunking” supposed “hoaxes.”</p>
<p>No wonder Hillary Clinton said in 2007, “We are certainly better-prepared and more focused on taking our arguments, and making them effective, and disseminating them widely. We’re really putting together a network in the blogosphere, in a lot of the new progressive infrastructure, institutions that I helped to start and support like Media Matters and Center for American Progress.”</p>
<p>The Benghazi Hoax, a slim 103 page diatribe on behalf of the supposedly wronged former Secretary of State, takes on 15 supposed myths about Benghazi. It begins with a list of the supposed “hoaxers” ranging from Rep. Jason Chaffetz (R-UT) to Sen. Kelly Ayotte (R-NH) to Sen. John McCain (R-AZ) to Mitt Romney. Then it really kicks into high gear with the left’s favored attack on the Benghazi narrative: Mitt Romney.</p>
<p>According to Media Matters, the Benghazi story began with Mitt Romney desperately needing a boost before the presidential election. Then, Media Matters, Benghazi happened, and the right jumped quickly to exploit the deaths of four Americans: “No one could have imagined how quickly the murder of Stevens and three other Americans would become politicized by a hungry right-wing leviathan of savage punditry and pseudo-journalism.” Never mind that four Americans were dead. Never mind repeated warnings for months that security in Benghazi was insufficient. Never mind that the Obama administration pretended for weeks that a YouTube video had resulted in a Black Swan attack on the Benghazi consulate. It was all about Romney.</p>
<p>Hence “Hoax #1: Mitt Romney’s Statement.” Romney, you will recall, stated in the aftermath of the attacks on the American embassy in Cairo that “It's disgraceful that the Obama Administration's first response was not to condemn attacks on our diplomatic missions, but to sympathize with those who waged the attacks.” That was due to a tweet from the Cairo embassy offering apologies for the YouTube video “The Innocence of Muslims.” According to Media Matters, however, Romney’s statement was entirely inappropriate because moments before it was released to the press, Hillary Clinton and the White House had attempted to distance themselves from the tweet. That, of course, does not change the fact that the Obama administration is responsible for its State Department, and that the Cairo embassy was part of the Obama administration. And even in her attempt to separate from the Cairo embassy statement, Hillary Clinton ended up expressing sympathy for those upset by the YouTube video. But never mind: Romney’s statement was now a “hoax” according to the Hillary-defending Media Matters authors. Why? Because the media condemned Romney. The “hoax” sets a new world record for circular logic: the media hated Romney, and so wrote nasty things about Romney, proving that Romney was wrong because the media said so.</p>
<p>The other “hoaxes” are no better proved by Media Matters. Media Matters suggests that it was a “hoax” to say that Barack Obama did not label the Benghazi attacks terrorism at the time. Unfortunately for Media Matters, President Obama didn’t label them terrorist attacks, as acknowledged by CNN’s Candy Crowley, who originally wrongly said Obama did so, and as proved by CBS News’ interview with President Obama himself the day after the attacks, when he refused to call them terrorism when asked directly. Media Matters mentions neither of those relevant facts.</p>
<p>Other hoaxes include “The Attack on Susan Rice” (Media Matters never explains why Rice did not ask for clarification on talking points that were clearly flawed from the outset before fibbing to the American people about a spontaneous assault based on a YouTube video); “The Fake Concussion” and “Hillary Clinton Faked Her Emotion” (both “hoaxes” that never gained any sort of mainstream credibility); “A Disengaged Administration” (Media Matters never gives a timeline for President Obama or Hillary Clinton the evening of the attacks); “Attacks on the Accountability Review Board” (they never explain why Hillary was never interviewed, or why four out of the five members of the ARB were appointed by Hillary’s State Department, settling for an evidenceless dismissal: “these participants had no motivation to risk their credibility on behalf of the administration”); the list goes on and on.</p>
<p>But most of all, Media Matters never bothers to answer the most basic outstanding questions about Benghazi that must be answered if the entire story is to be considered a hoax: why did the administration routinely reject security requests from Benghazi? Why did the administration disarm security that was there? What did President Obama do that night? What did Hillary Clinton do that night? Why did the administration attempt to blame the attacks on spontaneous demonstrations based on a YouTube video, without a shred of evidence to support that? Why has no one been fired over the incident, let alone prosecuted?</p>
<p>The Benghazi Hoax is the real hoax, an attempt to bury the horror story that was Benghazi under a mountain of irrelevant detail – all to worship at the altar of Hillary Clinton (the ebook actually states, laughably, “It felt like the 1990s all over again, when conservatives – dubbed quite correctly, in hindsight, a ‘vast right-wing conspiracy’ by Hillary Clinton – spend years and ultimately millions of taxpayer dollars in an effort to take down the presidency of Bill Clinton…”). But that’s what Media Matters does so well. And Hillary Clinton can’t thank them enough.&#160;</p> | true | 0 | october 16 media matters launched allout defense favored 2016 presidential candidate hillary clinton ebook wishfully titled benghazi hoax ebook written media matters founder david brock senior fellow ari rabinhavt typical media matters screed deliberate misdirection central concerns benghazi debunking supposed hoaxes wonder hillary clinton said 2007 certainly betterprepared focused taking arguments making effective disseminating widely really putting together network blogosphere lot new progressive infrastructure institutions helped start support like media matters center american progress benghazi hoax slim 103 page diatribe behalf supposedly wronged former secretary state takes 15 supposed myths benghazi begins list supposed hoaxers ranging rep jason chaffetz rut sen kelly ayotte rnh sen john mccain raz mitt romney really kicks high gear lefts favored attack benghazi narrative mitt romney according media matters benghazi story began mitt romney desperately needing boost presidential election media matters benghazi happened right jumped quickly exploit deaths four americans one could imagined quickly murder stevens three americans would become politicized hungry rightwing leviathan savage punditry pseudojournalism never mind four americans dead never mind repeated warnings months security benghazi insufficient never mind obama administration pretended weeks youtube video resulted black swan attack benghazi consulate romney hence hoax 1 mitt romneys statement romney recall stated aftermath attacks american embassy cairo disgraceful obama administrations first response condemn attacks diplomatic missions sympathize waged attacks due tweet cairo embassy offering apologies youtube video innocence muslims according media matters however romneys statement entirely inappropriate moments released press hillary clinton white house attempted distance tweet course change fact obama administration responsible state department cairo embassy part obama administration even attempt separate cairo embassy statement hillary clinton ended expressing sympathy upset youtube video never mind romneys statement hoax according hillarydefending media matters authors media condemned romney hoax sets new world record circular logic media hated romney wrote nasty things romney proving romney wrong media said hoaxes better proved media matters media matters suggests hoax say barack obama label benghazi attacks terrorism time unfortunately media matters president obama didnt label terrorist attacks acknowledged cnns candy crowley originally wrongly said obama proved cbs news interview president obama day attacks refused call terrorism asked directly media matters mentions neither relevant facts hoaxes include attack susan rice media matters never explains rice ask clarification talking points clearly flawed outset fibbing american people spontaneous assault based youtube video fake concussion hillary clinton faked emotion hoaxes never gained sort mainstream credibility disengaged administration media matters never gives timeline president obama hillary clinton evening attacks attacks accountability review board never explain hillary never interviewed four five members arb appointed hillarys state department settling evidenceless dismissal participants motivation risk credibility behalf administration list goes media matters never bothers answer basic outstanding questions benghazi must answered entire story considered hoax administration routinely reject security requests benghazi administration disarm security president obama night hillary clinton night administration attempt blame attacks spontaneous demonstrations based youtube video without shred evidence support one fired incident let alone prosecuted benghazi hoax real hoax attempt bury horror story benghazi mountain irrelevant detail worship altar hillary clinton ebook actually states laughably felt like 1990s conservatives dubbed quite correctly hindsight vast rightwing conspiracy hillary clinton spend years ultimately millions taxpayer dollars effort take presidency bill clinton thats media matters well hillary clinton cant thank enough160 | 536 |
<p>Problem loans are a big issue in China, and no one has a good understanding of just how bad the banks' loan books really are. One analyst suggested that Chinese banks could work through their loans in just two years in the worst-case scenario, but others believe the problems may be deeper.</p>
<p>In this clip from <a href="http://www.fool.com/podcasts/industry-focus?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Industry Focus: Financials Opens a New Window.</a>, The Motley Fool's Gaby Lapera and Jordan Wathen discuss how policy changes affect Chinese bank reporting, and why rules intended to prevent capital flight are likely to be related to Chinese banks' bad loans.</p>
<p>Continue Reading Below</p>
<p>A full transcript follows the video.</p>
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<p>Gaby Lapera: It's interesting, because it does seem like China is starting to realize that this is not good for them. Sheng-Fu Lin, who is China'stop banking regulator, said that the hidden credit risk that's associated withinvestment receivables and other types of investments like this, it could be really bad for China's financial security. Which iscrazy. Normally, topChinese officials don't say, "Hey, we might have made an error in judgment, and this could be bad."</p>
<p>Jordan Wathen:Yeah. It's aparticularly big deal because,when you think about banking and China,it's a totally different world. Many of the loans that are underwritten there are underwritten on the basis of political favors, or because a company has an implicitguarantee from the government. In a lot of cases, these loans weren't made because someone thought, "Hey,this is a great credit risk." These loans were made because, "Oh, well,you know what, the government will probably bail this out later." Right? It's just -- I don't even know how to describe it -- it's just a heaping problem, atangled web of bad incentives.</p>
<p>Lapera:Yeah. So,now that we've brought you down about China, things could be a-changing. Butit's not super certain, so don't get excited. I was joking with Jordan earlier thatI am the best person for this show because I'm so risk-averse that I just fit in with all the financial stuff perfectly. So there's a company, PineBridge Investments,has said that China's big five banks could absorb the hit even if 15.5% of its loans are bad. Technically, the official number for how many loans are bad in China is 1.8%, butlike we said, we don't really know what the number is. So, good news: They couldsustain a loss of up to 15.5% of their loan value. Bad news: We have no idea what it actually is.</p>
<p>Wathen:Yeah. One of the things you have to understand is, what kills banks isn'tnecessarily solvency. There have beenplenty of examples, even in the United States, where banks have been insolvent. It'spretty much well understood thatCitigroup, at one point in timeor another, has been insolvent several times over the last century. What kills banks is a liquidity crisis. It's when people take out theirdeposits. So as long as the government says, "Hey,deposits are fine," andas long as the Chinese people think there's no risk to these banks going under, they can exist and basically earn enough money over time from their good loans to basically paper over their losses. As long as there's no run on the banks,so to speak, then these banks will exist -- whether or not they're good investmentsis a totally different matter.</p>
<p>Lapera:Yeah. And the idea of a run on the banks in Chinais a little bit more difficult, because the Chinese government could just say, "Sorry, the banks are closed."I mean, you can do that in the United States, too, but they can also trap all the foreign investments and everything in China and just be like, "It's all ours now. Don't worry about it."</p>
<p>Wathen:Exactly, and thatgoes back to what we were talking about earlier. Basically, China has, through a number of ways, made it much harder for capital to leave the country. If it doesn't leave the country,no one is going to take it out and put it in their closet or under the mattress; they'regoing to keep it in the banking system or securities or whatever. Preventing that capital flight, in some ways, flows through to the banking system.</p>
<p>Lapera:Yeah. Another thing that is apositive development, although it might not seem so at first on the surface,is that the Ministry of Finance in China is allowing banks to write off more bad loans. Originally, it was really difficult to write off a bad loan. Youhad to go to the Ministry of Finance and ask permission for each loan you wanted to write off. But, they've made it a lot easier, which is, I guess, bad in the sense that we're suddenlyseeing them right off a lot more loans -- it'sdoubled in the last couple years. On the other hand, it means that banks aregetting better at identifying bad loans quickly, and potentially, it could help out credit risk, because banks are going to be less likely to make bad loans, in theory, potentially.</p>
<p>Wathen:I think the thing here, too, is that investorsdon't necessarily demand of greatperformance all the time. But they do demand honest reporting. If a bank is coming out and saying its books are perfect all the time,no one wants to invest in it because obviouslyeveryone knows that banks write bad loans,it just happens, it's part of the business model that some loans will go bad. So if anything,investors are more fearful of the bank that reports no losses than the bank that reports a reasonable level of losses over time.</p>
<p><a href="http://my.fool.com/profile/TMFCaffeine/info.aspx" type="external">Gaby Lapera Opens a New Window.</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/TMFValueMagnet/info.aspx" type="external">Jordan Wathen Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | problem loans big issue china one good understanding bad banks loan books really one analyst suggested chinese banks could work loans two years worstcase scenario others believe problems may deeper clip industry focus financials opens new window motley fools gaby lapera jordan wathen discuss policy changes affect chinese bank reporting rules intended prevent capital flight likely related chinese banks bad loans continue reading full transcript follows video 10 stocks like better citigroup 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 citigroup wasnt one thats right think 10 stocks even better buys click opens new window learn picks advertisement stock advisor returns nov 7 2016 podcast recorded dec 12 2016 gaby lapera interesting seem like china starting realize good shengfu lin chinastop banking regulator said hidden credit risk thats associated withinvestment receivables types investments like could really bad chinas financial security iscrazy normally topchinese officials dont say hey might made error judgment could bad jordan wathenyeah aparticularly big deal becausewhen think banking chinaits totally different world many loans underwritten underwritten basis political favors company implicitguarantee government lot cases loans werent made someone thought heythis great credit risk loans made oh wellyou know government probably bail later right dont even know describe heaping problem atangled web bad incentives laperayeah sonow weve brought china things could achanging butits super certain dont get excited joking jordan earlier thati best person show im riskaverse fit financial stuff perfectly theres company pinebridge investmentshas said chinas big five banks could absorb hit even 155 loans bad technically official number many loans bad china 18 butlike said dont really know number good news couldsustain loss 155 loan value bad news idea actually wathenyeah one things understand kills banks isntnecessarily solvency beenplenty examples even united states banks insolvent itspretty much well understood thatcitigroup one point timeor another insolvent several times last century kills banks liquidity crisis people take theirdeposits long government says heydeposits fine andas long chinese people think theres risk banks going exist basically earn enough money time good loans basically paper losses long theres run banksso speak banks exist whether theyre good investmentsis totally different matter laperayeah idea run banks chinais little bit difficult chinese government could say sorry banks closedi mean united states also trap foreign investments everything china like dont worry wathenexactly thatgoes back talking earlier basically china number ways made much harder capital leave country doesnt leave countryno one going take put closet mattress theyregoing keep banking system securities whatever preventing capital flight ways flows banking system laperayeah another thing apositive development although might seem first surfaceis ministry finance china allowing banks write bad loans originally really difficult write bad loan youhad go ministry finance ask permission loan wanted write theyve made lot easier guess bad sense suddenlyseeing right lot loans itsdoubled last couple years hand means banks aregetting better identifying bad loans quickly potentially could help credit risk banks going less likely make bad loans theory potentially watheni think thing investorsdont necessarily demand greatperformance time demand honest reporting bank coming saying books perfect timeno one wants invest obviouslyeveryone knows banks write bad loansit happens part business model loans go bad anythinginvestors fearful bank reports losses bank reports reasonable level losses time gaby lapera opens new window position stocks mentioned jordan wathen 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 | 605 |
<p />
<p>The ratings agencies are making Bank of America sit in the corner. Image source: iStock/Thinkstock.</p>
<p>Continue Reading Below</p>
<p>When it comes to debt ratings, Bank of America (NYSE: BAC) isn't a star pupil. Its long-term debt rating, which influences a bank's cost of funds, is lower than many of its competitors, including JPMorgan Chase, Wells Fargo, and U.S. Bancorp.</p>
<p>I can't emphasize enough how much this matters. In the same way that your credit score influences the interest rate on your mortgage, a bank's debt rating bears on the rate it pays to borrow money -- especially on long-term debt. And keep in mind that borrowing money goes to the heart of a bank's business model: Buying money cheap from depositors and selling it dear to people and businesses that need loans.</p>
<p>Data source: Moody's. Chart by author.</p>
<p>In the second quarter of this year, Bank of America and Wells Fargo borrowed essentially the same amount of money -- around $1.3 trillion each from depositors and wholesale lenders -- but Wells Fargo paid $1 billion less to do so. This is the same as Wal-Mart buying produce for less than Target. Wal-Mart could then undercut Target's prices, clearing the way for Walmart to gain share in the grocery market.</p>
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<p>These same dynamics are active in banking. U.S. Bancorp's chairman and CEO Richard Davis has said in the past that his bank uses its cost advantages (it's one of the most efficient banks in the country) to grow market share. And it's reasonable to think that Wells Fargo (which is also very efficient) does the same thing, particularly in the mortgage market. Thus, in the consumer and commercial banking spaces, this means that Bank of America is probably either ceding existing share or foregoing new share.</p>
<p>This begs the question: Why is Bank of America's debt rating lower than many of its peers? For this, we turn to the latest credit update for Bank of America from Moody's, one of the three major ratings agencies. Moody's points to multiple things that influenced its rating for Bank of America, but it singled out two that had the biggest impact.</p>
<p>The first is that Bank of America's earnings since the financial crisis have been especially volatile. Thanks to a <a href="http://www.fool.com/investing/general/2015/09/26/we-finally-know-how-much-the-financial-crisis-cost.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">slew of substantial legal settlements Opens a New Window.</a>, it has been all but impossible over the last eight years to accurately forecast how much Bank of America will earn in any given quarter.</p>
<p>Fortunately, this is getting better. Last year was the <a href="http://www.fool.com/investing/general/2016/01/19/bank-of-america-reports-highest-annual-earnings-in.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">first time since the crisis Opens a New Window.</a> that Bank of America earned at least a marginally respectable profit in four consecutive calendar quarters. And despite a challenging macroeconomic environment, it's carried this through the first <a href="http://www.fool.com/investing/general/2016/04/14/an-overview-of-bank-of-americas-first-quarter-earn.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">two Opens a New Window.</a> <a href="http://www.fool.com/investing/2016/07/18/bank-of-americas-q2-earnings-one-of-its-best-perfo.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">quarters Opens a New Window.</a> of 2016.</p>
<p>The second, by contrast, will act as more of a long-term thorn in Bank of America's side. The issue here is that the North Carolina-based bank operates a large trading (or capital markets) business. At the end of the second quarter, its global markets segment accounted for $581 billion worth of assets, or 26% of the bank's total.</p>
<p>Data source: Bank of America's <a href="http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzQ0NTA1fENoaWxkSUQ9LTF8VHlwZT0z&amp;t=1&amp;cb=636042052823162995" type="external">2Q16 financial supplement Opens a New Window.</a>, page 15.</p>
<p>Moody's doesn't like this one bit:</p>
<p>You don't have to dig deep into the <a href="http://www.fool.com/investing/general/2014/08/28/7-lessons-about-bank-stocks-from-200-years-of-hist.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">annals of financial history Opens a New Window.</a> to see why ratings agencies would look askance at large trading operations. In 2012, JPMorgan Chase lost $6 billion from a trader's wrong-way bet on derivatives tied to the health of American corporations. The year before that, UBS' CEO resigned after the Swiss bank suffered a $2 billion trading loss. And in 1995, a single trader caused the 233-year-old Barings Bank to fail.</p>
<p>The point is that there's a good reason for Moody's, and presumably the other ratings agencies, to downgrade Bank of America because of its trading units. What's less clear is whether the benefits from trading outweigh the costs -- which, in addition to a lower credit rating, includes higher capital and liquidity requirements that reduce profitability. The bank's chairman and CEO, Brian Moynihan, has made the case that they do (though I'd characterize it as a half-hearted and unconvincing case), but it remains to be seen if he's right.</p>
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<p><a href="http://my.fool.com/profile/JohnMaxfield37/info.aspx" type="external">John Maxfield Opens a New Window.</a> owns shares of Bank of America, US Bancorp, and Wells Fargo. The Motley Fool owns shares of and recommends Wells Fargo. The Motley Fool recommends Bank of America and Moody's. 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 | ratings agencies making bank america sit corner image source istockthinkstock continue reading comes debt ratings bank america nyse bac isnt star pupil longterm debt rating influences banks cost funds lower many competitors including jpmorgan chase wells fargo us bancorp cant emphasize enough much matters way credit score influences interest rate mortgage banks debt rating bears rate pays borrow money especially longterm debt keep mind borrowing money goes heart banks business model buying money cheap depositors selling dear people businesses need loans data source moodys chart author second quarter year bank america wells fargo borrowed essentially amount money around 13 trillion depositors wholesale lenders wells fargo paid 1 billion less walmart buying produce less target walmart could undercut targets prices clearing way walmart gain share grocery market advertisement dynamics active banking us bancorps chairman ceo richard davis said past bank uses cost advantages one efficient banks country grow market share reasonable think wells fargo also efficient thing particularly mortgage market thus consumer commercial banking spaces means bank america probably either ceding existing share foregoing new share begs question bank americas debt rating lower many peers turn latest credit update bank america moodys one three major ratings agencies moodys points multiple things influenced rating bank america singled two biggest impact first bank americas earnings since financial crisis especially volatile thanks slew substantial legal settlements opens new window impossible last eight years accurately forecast much bank america earn given quarter fortunately getting better last year first time since crisis opens new window bank america earned least marginally respectable profit four consecutive calendar quarters despite challenging macroeconomic environment carried first two opens new window quarters opens new window 2016 second contrast act longterm thorn bank americas side issue north carolinabased bank operates large trading capital markets business end second quarter global markets segment accounted 581 billion worth assets 26 banks total data source bank americas 2q16 financial supplement opens new window page 15 moodys doesnt like one bit dont dig deep annals financial history opens new window see ratings agencies would look askance large trading operations 2012 jpmorgan chase lost 6 billion traders wrongway bet derivatives tied health american corporations year ubs ceo resigned swiss bank suffered 2 billion trading loss 1995 single trader caused 233yearold barings bank fail point theres good reason moodys presumably ratings agencies downgrade bank america trading units whats less clear whether benefits trading outweigh costs addition lower credit rating includes higher capital liquidity requirements reduce profitability banks chairman ceo brian moynihan made case though id characterize halfhearted unconvincing case remains seen hes 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 john maxfield opens new window owns shares bank america us bancorp wells fargo motley fool owns shares recommends wells fargo motley fool recommends bank america moodys 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 | 526 |
<p>The finalists in the arena were ready for their starting signals.</p>
<p>On your marks. Get set. Weld!</p>
<p>Continue Reading Below</p>
<p>And bake, dress hair, repair planes, lay tile, design clothes, code software and forward freight.</p>
<p>That's what 1,253 men and women aged 22 and under set off to do after their start signals at the 44th world championship of vocational skills earlier this month known as WorldSkills.</p>
<p>In a desert convention center, contestants from 58 countries -- a mix of vocational students and jobholders -- vied for the gold in simultaneous competitions to test their skills in 51 job categories over four days.</p>
<p>"It's a dream to be able to go to this competition," said 22-year-old Omkar Virendra Savant of India, who qualified to represent his nation in welding.</p>
<p>Athletes have the Olympics. Actors have the Oscars. Why shouldn't bricklayers, cooks and florists have their own world crowns? Even more so, say the competition's organizers, because these unsung jobs are mainstays of the global economy.</p>
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<p>"It creates enthusiasm around these skills," said Ranjan Choudhury, who oversees India's WorldSkills program, part of the country's National Skills Development Corporation, "and the other thing it creates is role models."</p>
<p>Mr. Savant, the welder, had trained two years for the starting signal that went off on the first day in Abu Dhabi. He dropped a protective mask over his face and fired up his welder. Sparks flew as he attacked his first task.</p>
<p>When the contest started for Jordyn Baker, 19, a puff of flour dust rose around her as she dove into her first dough preparation. A student at a California culinary school, she was America's entrant in bread-baking.</p>
<p>Within hours, she would produce four braided-bread loaves, six focaccia, 10 basil-pesto rolls, 15 quiches and enough dough for a dozen rye-bread loaves and several of orange-cranberry bread.</p>
<p>Representing the Netherlands in the "visual merchandising" category was Pien Hoveling, 21, a design-school student and two-time pan-European visual-merchandising champion.</p>
<p>As her event began, she unpacked "mystery materials" for a store-window display she was to design over the next four days. The task: Build a handbag display aimed at women aged 20 to 40 with the theme "Trip to LA."</p>
<p>These vocational games were the brainchild of a Spanish youth-group leader in the late 1940s. The first was in 1950 between Spain and Portugal. Today, the biennial event is organized by the private international WorldSkills committee and funded by governments, corporate sponsors and host countries. The 2015 championships were in Rio de Janeiro. In 2019, the host will be Kazan, Russia.</p>
<p>The group's stated mission: "Advocate the need, value, and results of skilled work and professional training for young people so that industries, regions, and countries will thrive in the global economy."</p>
<p>Winners get medals -- gold, silver, bronze -- and bragging rights. Some countries reward their winners with cash or scholarships for further training. Nearly all contestants get an edge in their professions, say contestants and country representatives.</p>
<p>For Mr. Savant from India, the goal was to beat his predecessor's sixth-place finish in Brazil and honorably represent his country and employer.</p>
<p>He emerged as a contender two years ago during an in-house competition at Mahindra Vehicle Manufacturers. A manager plucked him from the factory and put him into full-time training, Mahindra says.</p>
<p>For the past six months, he said, he has risen at 4:45 a.m. to run six kilometers and meditate before eight hours daily of welding different joints.</p>
<p>His tasks in Abu Dhabi would be an array of joints, ranging from perpendicular "fillets" to circular pipes to a "pressure vessel" welded from four positions that needed to hold 1,000 pounds of air pressure for a minute.</p>
<p>This year's contest was the largest so far, with about 10,000 people participating, including coaches, trainers, skill experts, government officials and corporate sponsors. Some 100,000 spectators -- including busloads of school children -- milled among competitions across the four days.</p>
<p>Ms. Baker, the baker, qualified by winning the bakery crown of her state of Alaska and then the U.S. national title. She practiced nearly daily for more than six months on bread-making techniques including, when necessary, how to "crash-laminate" croissant dough -- chilling it quickly when one isn't able to do it slowly overnight.</p>
<p>That knowledge came in handy when she fell behind in Abu Dhabi. She "blast chilled" dough in an ultracold freezer to make up time while baking 15 croissants.</p>
<p>Like an Olympics star, she was under the close eye of her coach. "Did you hydrate the cranberries?" fretted her coach, Kellie Puff, during one task. "Don't worry," Ms. Baker replied, "they weren't too hard."</p>
<p>As the contest played out into its fourth day, tensions were high. For Ms. Hoveling, the store-window designer, it had been grueling. The materials for one task, secret from competitors until the start, included a plastic pear and mango, fake flowers and the products: a bright-red women's handbag and backpack.</p>
<p>Armed with paints, a step ladder, drills, hammer, screwdriver, rulers and an Apple computer, she set to work.</p>
<p>She had spent thousands of hours practicing the technical skills of window display. "She's fanatical," said her father, Alex Hoveling, watching from the sidelines.</p>
<p>Seventeen hours, 59 minutes and 50 seconds of competition later, Ms. Hoveling put final touches on her display as the crowd counted down along with a large timing clock on the wall: "...10...9...8...."</p>
<p>On went a heat-protection glove for an adjustment to the light. "...3...2..."</p>
<p>A last quick fiddle to smooth a wrinkle in the fabric runner, and she pulled back her hand as the clock hit zero. A crowd gathered around the competitors and erupted in cheers.</p>
<p>Teams of experts gathered through the evening to add up scores and determine winners.</p>
<p>Ms. Hoveling's performance turned out to be good for gold. The next night on the podium, she accepted the medal, jumping up and down draped in the flag of the Netherlands.</p>
<p>"I'm so happy," she said in the winner's circle. The key to her victory: "Work very hard and believe in yourself."</p>
<p>Mr. Savant placed 24th of 34 in welding. Ms. Baker finished 12th of 34.</p>
<p>Despite the disappointment of seeing her bread centerpiece wilt in Abu Dhabi's climate -- conditions she said she had never encountered baking in Alaska or California -- Ms. Baker was thrilled to have taken part. "It was a mind blowing experience."</p>
<p>Write to Bill Spindle at [email protected]</p>
<p>ABU DHABI -- The finalists in the arena were ready for their starting signals.</p>
<p>On your marks. Get set. Weld!</p>
<p>And bake, dress hair, repair planes, lay tile, design clothes, code software and forward freight.</p>
<p>That's what 1,253 men and women aged 22 and under set off to do after their start signals at the 44th world championship of vocational skills earlier this month known as WorldSkills.</p>
<p>In a desert convention center, contestants from 59 countries -- a mix of vocational students and jobholders -- vied for the gold in simultaneous competitions to test their skills in 51 job categories over four days.</p>
<p>"It's a dream to be able to go to this competition," said 22-year-old Omkar Virendra Savant of India, who qualified to represent his nation in welding.</p>
<p>Athletes have the Olympics. Actors have the Oscars. Why shouldn't bricklayers, cooks and florists have their own world crowns? Even more so, say the competition's organizers, because these unsung jobs are mainstays of the global economy.</p>
<p>"It creates enthusiasm around these skills," said Ranjan Choudhury, who oversees India's WorldSkills program, part of the country's National Skills Development Corporation, "and the other thing it creates is role models."</p>
<p>Mr. Savant, the welder, had trained two years for the starting signal that went off on the first day in Abu Dhabi. He dropped a protective mask over his face and fired up his welder. Sparks flew as he attacked his first task.</p>
<p>When the contest started for Jordyn Baker, 19, a puff of flour dust rose around her as she dove into her first dough preparation. A student at a California culinary school, she was America's entrant in bread-baking.</p>
<p>Within hours, she would produce four braided-bread loaves, six focaccia, 10 basil-pesto rolls, 15 quiches and enough dough for a dozen rye-bread loaves and several of orange-cranberry bread.</p>
<p>Representing the Netherlands in the "visual merchandising" category was Pien Hoveling, 21, a design-school student and two-time pan-European visual-merchandising champion.</p>
<p>As her event began, she unpacked "mystery materials" for a store-window display she was to design over the next four days. The task: Build a handbag display aimed at women aged 20 to 40 with the theme "Trip to LA."</p>
<p>These vocational games were the brainchild of a Spanish youth-group leader in the late 1940s. The first was in 1950 between Spain and Portugal. Today, the biennial event is organized by the private international WorldSkills committee and funded by governments, corporate sponsors and host countries. The 2015 championships were in São Paulo, Brazil. In 2019, the host will be Kazan, Russia.</p>
<p>The group's stated mission: "Advocate the need, value, and results of skilled work and professional training for young people so that industries, regions, and countries will thrive in the global economy."</p>
<p>Winners get medals -- gold, silver, bronze -- and bragging rights. Some countries reward their winners with cash or scholarships for further training. Nearly all contestants get an edge in their professions, say contestants and country representatives.</p>
<p>For Mr. Savant from India, the goal was to beat his predecessor's sixth-place finish in Brazil and honorably represent his country and employer.</p>
<p>He emerged as a contender two years ago during an in-house competition at Mahindra Vehicle Manufacturers. A manager plucked him from the factory and put him into full-time training, Mahindra says.</p>
<p>For the past six months, he said, he has risen at 4:45 a.m. to run six kilometers and meditate before eight hours daily of welding different joints.</p>
<p>His tasks in Abu Dhabi would be an array of joints, ranging from perpendicular "fillets" to circular pipes to a "pressure vessel" welded from four positions that needed to hold 1,000 pounds of air pressure for a minute.</p>
<p>This year's contest was the largest so far, with about 10,000 people participating, including coaches, trainers, skill experts, government officials and corporate sponsors. Some 100,000 spectators -- including busloads of school children -- milled among competitions across the four days.</p>
<p>Ms. Baker, the baker, qualified by winning the bakery crown of her state of Alaska and then the U.S. national title. She practiced nearly daily for more than six months on bread-making techniques including, when necessary, how to "crash-laminate" croissant dough -- chilling it quickly when one isn't able to do it slowly overnight.</p>
<p>That knowledge came in handy when she fell behind in Abu Dhabi. She "blast chilled" dough in an ultracold freezer to make up time while baking 15 croissants.</p>
<p>Like an Olympics star, she was under the close eye of her coach. "Did you hydrate the cranberries?" fretted her coach, Kellie Puff, during one task. "Don't worry," Ms. Baker replied, "they weren't too hard."</p>
<p>As the contest played out into its fourth day, tensions were high. For Ms. Hoveling, the store-window designer, it had been grueling. The materials for one task, secret from competitors until the start, included a plastic pear and mango, fake flowers and the products: a bright-red women's handbag and backpack.</p>
<p>Armed with paints, a step ladder, drills, hammer, screwdriver, rulers and an Apple computer, she set to work.</p>
<p>She had spent thousands of hours practicing the technical skills of window display. "She's fanatical," said her father, Alex Hoveling, watching from the sidelines.</p>
<p>Seventeen hours, 59 minutes and 50 seconds of competition later, Ms. Hoveling put final touches on her display as the crowd counted down along with a large timing clock on the wall: "...10...9...8...."</p>
<p>On went a heat-protection glove for an adjustment to the light. "...3...2..."</p>
<p>A last quick fiddle to smooth a wrinkle in the fabric runner, and she pulled back her hand as the clock hit zero. A crowd gathered around the competitors and erupted in cheers.</p>
<p>Teams of experts gathered through the evening to add up scores and determine winners.</p>
<p>Ms. Hoveling's performance turned out to be good for gold. The next night on the podium, she accepted the medal, jumping up and down draped in the flag of the Netherlands.</p>
<p>"I'm so happy," she said in the winner's circle. The key to her victory: "Work very hard and believe in yourself."</p>
<p>Mr. Savant placed 24th of 34 in welding. Ms. Baker finished 12th of 34.</p>
<p>Despite the disappointment of seeing her bread centerpiece wilt in Abu Dhabi's climate -- conditions she said she had never encountered baking in Alaska or California -- Ms. Baker was thrilled to have taken part. "It was a mind blowing experience."</p>
<p>Write to Bill Spindle at [email protected]</p>
<p>Corrections &amp; Amplifications</p>
<p>This article was corrected October 30, 2017 at 0723 GMT to show that the WorldSkills competition in 2015 was held in São Paulo, Brazil. The original version of this article incorrectly said it was held in Rio.</p>
<p>Corrections &amp; Amplifications</p>
<p>This article was corrected Oct. 30, 2017 at 1156 GMT because it misstated that 58 countries competed, instead of 59, in the fifth paragraph.</p>
<p>The WorldSkills competition in 2015 was held in São Paulo, Brazil. "The Thrill of Victory in Welding, Baking and Bricklaying," at 1914 GMT, incorrectly stated it was in Rio de Janeiro in the 14th paragraph. (Oct. 30).</p>
<p>Fifty-nine countries and regions participated in the WorldSkills 2017 competition. "The Thrill of Victory in Welding, Baking and Bricklaying," at 1929 GMT, incorrectly stated it was 58 countries in the fifth paragraph. (Oct. 30).</p>
<p>(END) Dow Jones Newswires</p>
<p>October 30, 2017 08:08 ET (12:08 GMT)</p> | true | 0 | finalists arena ready starting signals marks get set weld continue reading bake dress hair repair planes lay tile design clothes code software forward freight thats 1253 men women aged 22 set start signals 44th world championship vocational skills earlier month known worldskills desert convention center contestants 58 countries mix vocational students jobholders vied gold simultaneous competitions test skills 51 job categories four days dream able go competition said 22yearold omkar virendra savant india qualified represent nation welding athletes olympics actors oscars shouldnt bricklayers cooks florists world crowns even say competitions organizers unsung jobs mainstays global economy advertisement creates enthusiasm around skills said ranjan choudhury oversees indias worldskills program part countrys national skills development corporation thing creates role models mr savant welder trained two years starting signal went first day abu dhabi dropped protective mask face fired welder sparks flew attacked first task contest started jordyn baker 19 puff flour dust rose around dove first dough preparation student california culinary school americas entrant breadbaking within hours would produce four braidedbread loaves six focaccia 10 basilpesto rolls 15 quiches enough dough dozen ryebread loaves several orangecranberry bread representing netherlands visual merchandising category pien hoveling 21 designschool student twotime paneuropean visualmerchandising champion event began unpacked mystery materials storewindow display design next four days task build handbag display aimed women aged 20 40 theme trip la vocational games brainchild spanish youthgroup leader late 1940s first 1950 spain portugal today biennial event organized private international worldskills committee funded governments corporate sponsors host countries 2015 championships rio de janeiro 2019 host kazan russia groups stated mission advocate need value results skilled work professional training young people industries regions countries thrive global economy winners get medals gold silver bronze bragging rights countries reward winners cash scholarships training nearly contestants get edge professions say contestants country representatives mr savant india goal beat predecessors sixthplace finish brazil honorably represent country employer emerged contender two years ago inhouse competition mahindra vehicle manufacturers manager plucked factory put fulltime training mahindra says past six months said risen 445 run six kilometers meditate eight hours daily welding different joints tasks abu dhabi would array joints ranging perpendicular fillets circular pipes pressure vessel welded four positions needed hold 1000 pounds air pressure minute years contest largest far 10000 people participating including coaches trainers skill experts government officials corporate sponsors 100000 spectators including busloads school children milled among competitions across four days ms baker baker qualified winning bakery crown state alaska us national title practiced nearly daily six months breadmaking techniques including necessary crashlaminate croissant dough chilling quickly one isnt able slowly overnight knowledge came handy fell behind abu dhabi blast chilled dough ultracold freezer make time baking 15 croissants like olympics star close eye coach hydrate cranberries fretted coach kellie puff one task dont worry ms baker replied werent hard contest played fourth day tensions high ms hoveling storewindow designer grueling materials one task secret competitors start included plastic pear mango fake flowers products brightred womens handbag backpack armed paints step ladder drills hammer screwdriver rulers apple computer set work spent thousands hours practicing technical skills window display shes fanatical said father alex hoveling watching sidelines seventeen hours 59 minutes 50 seconds competition later ms hoveling put final touches display crowd counted along large timing clock wall 1098 went heatprotection glove adjustment light 32 last quick fiddle smooth wrinkle fabric runner pulled back hand clock hit zero crowd gathered around competitors erupted cheers teams experts gathered evening add scores determine winners ms hovelings performance turned good gold next night podium accepted medal jumping draped flag netherlands im happy said winners circle key victory work hard believe mr savant placed 24th 34 welding ms baker finished 12th 34 despite disappointment seeing bread centerpiece wilt abu dhabis climate conditions said never encountered baking alaska california ms baker thrilled taken part mind blowing experience write bill spindle billspindlewsjcom abu dhabi finalists arena ready starting signals marks get set weld bake dress hair repair planes lay tile design clothes code software forward freight thats 1253 men women aged 22 set start signals 44th world championship vocational skills earlier month known worldskills desert convention center contestants 59 countries mix vocational students jobholders vied gold simultaneous competitions test skills 51 job categories four days dream able go competition said 22yearold omkar virendra savant india qualified represent nation welding athletes olympics actors oscars shouldnt bricklayers cooks florists world crowns even say competitions organizers unsung jobs mainstays global economy creates enthusiasm around skills said ranjan choudhury oversees indias worldskills program part countrys national skills development corporation thing creates role models mr savant welder trained two years starting signal went first day abu dhabi dropped protective mask face fired welder sparks flew attacked first task contest started jordyn baker 19 puff flour dust rose around dove first dough preparation student california culinary school americas entrant breadbaking within hours would produce four braidedbread loaves six focaccia 10 basilpesto rolls 15 quiches enough dough dozen ryebread loaves several orangecranberry bread representing netherlands visual merchandising category pien hoveling 21 designschool student twotime paneuropean visualmerchandising champion event began unpacked mystery materials storewindow display design next four days task build handbag display aimed women aged 20 40 theme trip la vocational games brainchild spanish youthgroup leader late 1940s first 1950 spain portugal today biennial event organized private international worldskills committee funded governments corporate sponsors host countries 2015 championships são paulo brazil 2019 host kazan russia groups stated mission advocate need value results skilled work professional training young people industries regions countries thrive global economy winners get medals gold silver bronze bragging rights countries reward winners cash scholarships training nearly contestants get edge professions say contestants country representatives mr savant india goal beat predecessors sixthplace finish brazil honorably represent country employer emerged contender two years ago inhouse competition mahindra vehicle manufacturers manager plucked factory put fulltime training mahindra says past six months said risen 445 run six kilometers meditate eight hours daily welding different joints tasks abu dhabi would array joints ranging perpendicular fillets circular pipes pressure vessel welded four positions needed hold 1000 pounds air pressure minute years contest largest far 10000 people participating including coaches trainers skill experts government officials corporate sponsors 100000 spectators including busloads school children milled among competitions across four days ms baker baker qualified winning bakery crown state alaska us national title practiced nearly daily six months breadmaking techniques including necessary crashlaminate croissant dough chilling quickly one isnt able slowly overnight knowledge came handy fell behind abu dhabi blast chilled dough ultracold freezer make time baking 15 croissants like olympics star close eye coach hydrate cranberries fretted coach kellie puff one task dont worry ms baker replied werent hard contest played fourth day tensions high ms hoveling storewindow designer grueling materials one task secret competitors start included plastic pear mango fake flowers products brightred womens handbag backpack armed paints step ladder drills hammer screwdriver rulers apple computer set work spent thousands hours practicing technical skills window display shes fanatical said father alex hoveling watching sidelines seventeen hours 59 minutes 50 seconds competition later ms hoveling put final touches display crowd counted along large timing clock wall 1098 went heatprotection glove adjustment light 32 last quick fiddle smooth wrinkle fabric runner pulled back hand clock hit zero crowd gathered around competitors erupted cheers teams experts gathered evening add scores determine winners ms hovelings performance turned good gold next night podium accepted medal jumping draped flag netherlands im happy said winners circle key victory work hard believe mr savant placed 24th 34 welding ms baker finished 12th 34 despite disappointment seeing bread centerpiece wilt abu dhabis climate conditions said never encountered baking alaska california ms baker thrilled taken part mind blowing experience write bill spindle billspindlewsjcom corrections amp amplifications article corrected october 30 2017 0723 gmt show worldskills competition 2015 held são paulo brazil original version article incorrectly said held rio corrections amp amplifications article corrected oct 30 2017 1156 gmt misstated 58 countries competed instead 59 fifth paragraph worldskills competition 2015 held são paulo brazil thrill victory welding baking bricklaying 1914 gmt incorrectly stated rio de janeiro 14th paragraph oct 30 fiftynine countries regions participated worldskills 2017 competition thrill victory welding baking bricklaying 1929 gmt incorrectly stated 58 countries fifth paragraph oct 30 end dow jones newswires october 30 2017 0808 et 1208 gmt | 1,380 |
<p>Few industries have had investors seeing green over the past year like legal marijuana. According to a recently released report by Marijuana Business Daily entitled "Marijuana Business Factbook 2017," the legal weed market in the U.S. could grow by about 30% in 2017 and by a cumulative 300% between 2016 and 2021 to more than $17 billion.&#160;These growth figures are more than enough incentive to drive investors to grab a pot stock or three for their portfolios.</p>
<p>These growth figures have also been backed by a notable shift in consumer opinion toward legalizing pot. In 1995, the year before California legalized medicinal cannabis for compassionate use, just 25% of those surveyed by Gallup wanted to see it legalized for adult use across the United States. But by October 2016, approval for the idea of a national legalization had spiked to 60%, an all-time high.</p>
<p>Continue Reading Below</p>
<p>At the other end the spectrum, the U.S. federal government continues to make life challenging for the industry and marijuana stocks in general. A Schedule I categorization for cannabis means it has no recognized medical benefits, placing it on par with heroin and LSD. This scheduling means that weed-based companies are unable to take corporate income tax deductions like normal businesses, nor are they often able to secure basic financial services like a checking account or line of credit. It's also exceptionally difficult for research companies to secure cannabis in order to run risk-versus-benefit studies that have the potential to alter marijuana's scheduling.</p>
<p>These <a href="https://www.fool.com/investing/2017/02/26/10-reasons-your-marijuana-stock-is-a-terrible-inve.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1f418cfa-9cb5-11e7-b6ec-0050569d4be0&amp;utm_source=foxbusiness" type="external">inherent disadvantages Opens a New Window.</a> for the legal weed industry put its companies in quite the bind. They're often stuck dealing with cash, which comes with growth restraints, and they're being forced to pay tax on their gross profits rather than their net profits, leaving less cash left over. That means less in the way of growth opportunities and hiring.</p>
<p>Because marijuana is an illegal substance at the federal level, the pot industry also faces challenges within legal states. Individual jurisdictions usually have the right to dictate whether a dispensary is allowed to open within a city or county. The result, as we've witnessed in Colorado, can be something of a Swiss-cheese-like legalization effort, where weed is unwelcome in more jurisdictions than welcome.</p>
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<p>However, Nevada is hoping to be a trailblazer of sorts on the marijuana front and turn this latter disadvantage on its head. The Silver State, which only voted to legalize recreational weed in the November 2016 elections, and began selling the product to adults ages 21 and up this past July, is tinkering with the idea of becoming the first state to legally allow pot lounges where consumers can smoke cannabis products in a public place. Colorado, Washington, Oregon, and Alaska only allow cannabis to be smoked in the privacy of one's residence, while California, Maine, and Massachusetts, the three other recreational marijuana states, have yet to begin selling adult-use weed.</p>
<p>According to a <a href="http://thehill.com/homenews/state-watch/350467-nevada-could-be-first-state-to-set-up-marijuana-lounges" type="external">report Opens a New Window.</a> from The Hill, Nevada's Legislative Counsel Bureau noted last week that its state law does not prohibit city or county governments from operating lounges where consumers can use marijuana. Considering how popular Nevada and more specifically Las Vegas are for tourists, the addition of marijuana lounges or cafes could dramatically boost tourism to the state.</p>
<p>For instance, a late 2015 study commissioned by the Colorado Tourism Office found that marijuana played a big role in boosting tourism to the state. The survey revealed that of those folks planning to visit during the summertime and who had also seen the state's "Come to Life" ad campaign, practically half (49%) were specifically influenced by the fact that recreational marijuana was legal.&#160;Nevada is aiming to have a similar effect on tourism in the state.</p>
<p>As you can probably surmise, though, not every lawmaker in Nevada is on board with the idea, including Gov. Brian Sandoval (R-Nev.) who noted, "I did not support them [pot lounges] previously. I don't support them now." Kevin Sabet, the head of anti-legalization movement group Smart Approaches to Marijuana, worries that pot lounges will lead to higher crime rates and not be a good thing for the state.</p>
<p>Pardon the pun, but there's still a lot to be hashed out with pot-lounge discussions still in the early stages.</p>
<p>Of course, Nevada may have a bit more to be concerned with than just whether it can regulate pot lounges. There's the possibility that the federal government could step up regulatory enforcement in the months to come.</p>
<p>In February, now-former White House press secretary Sean Spicer suggested that the Trump administration would take a tougher stance on federal regulatory enforcement of cannabis than the Obama administration. While he failed to outline the specifics of what that added enforcement might entail, it's had the industry on edge ever since.</p>
<p>Making matters worse, Attorney General Jeff Sessions appears to be itching to wage war on medical marijuana businesses. The man in charge of the Justice Department sent a letter to congressional leaders in May requesting that they repeal the legislation protecting marijuana businesses operating in legal states from federal prosecution. Sessions has made it <a href="https://www.fool.com/investing/2017/09/17/jeff-sessions-may-soon-have-a-green-light-to-wage.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1f418cfa-9cb5-11e7-b6ec-0050569d4be0&amp;utm_source=foxbusiness" type="external">abundantly clear Opens a New Window.</a> in previous speeches and Senate hearings that he doesn't care for marijuana one iota, and that he'll stop at nothing to halt or reverse its expansion.</p>
<p>It's also worth noting that Republicans are just one of two groups remaining to still have a negative view of cannabis (senior citizens being the other). With Republicans in control of the legislative branches of government, it's certainly not out of the question that we see a crackdown of sorts on the industry.</p>
<p>By the looks of things, the U.S. marijuana industry could have a very challenging year ahead, which serves as a warning to all weed-based companies and marijuana stock investors.</p>
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<p>*Stock Advisor returns as of September 5, 2017The author(s) may have a position in any stocks mentioned.</p>
<p>The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1f418cfa-9cb5-11e7-b6ec-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | industries investors seeing green past year like legal marijuana according recently released report marijuana business daily entitled marijuana business factbook 2017 legal weed market us could grow 30 2017 cumulative 300 2016 2021 17 billion160these growth figures enough incentive drive investors grab pot stock three portfolios growth figures also backed notable shift consumer opinion toward legalizing pot 1995 year california legalized medicinal cannabis compassionate use 25 surveyed gallup wanted see legalized adult use across united states october 2016 approval idea national legalization spiked 60 alltime high continue reading end spectrum us federal government continues make life challenging industry marijuana stocks general schedule categorization cannabis means recognized medical benefits placing par heroin lsd scheduling means weedbased companies unable take corporate income tax deductions like normal businesses often able secure basic financial services like checking account line credit also exceptionally difficult research companies secure cannabis order run riskversusbenefit studies potential alter marijuanas scheduling inherent disadvantages opens new window legal weed industry put companies quite bind theyre often stuck dealing cash comes growth restraints theyre forced pay tax gross profits rather net profits leaving less cash left means less way growth opportunities hiring marijuana illegal substance federal level pot industry also faces challenges within legal states individual jurisdictions usually right dictate whether dispensary allowed open within city county result weve witnessed colorado something swisscheeselike legalization effort weed unwelcome jurisdictions welcome advertisement however nevada hoping trailblazer sorts marijuana front turn latter disadvantage head silver state voted legalize recreational weed november 2016 elections began selling product adults ages 21 past july tinkering idea becoming first state legally allow pot lounges consumers smoke cannabis products public place colorado washington oregon alaska allow cannabis smoked privacy ones residence california maine massachusetts three recreational marijuana states yet begin selling adultuse weed according report opens new window hill nevadas legislative counsel bureau noted last week state law prohibit city county governments operating lounges consumers use marijuana considering popular nevada specifically las vegas tourists addition marijuana lounges cafes could dramatically boost tourism state instance late 2015 study commissioned colorado tourism office found marijuana played big role boosting tourism state survey revealed folks planning visit summertime also seen states come life ad campaign practically half 49 specifically influenced fact recreational marijuana legal160nevada aiming similar effect tourism state probably surmise though every lawmaker nevada board idea including gov brian sandoval rnev noted support pot lounges previously dont support kevin sabet head antilegalization movement group smart approaches marijuana worries pot lounges lead higher crime rates good thing state pardon pun theres still lot hashed potlounge discussions still early stages course nevada may bit concerned whether regulate pot lounges theres possibility federal government could step regulatory enforcement months come february nowformer white house press secretary sean spicer suggested trump administration would take tougher stance federal regulatory enforcement cannabis obama administration failed outline specifics added enforcement might entail industry edge ever since making matters worse attorney general jeff sessions appears itching wage war medical marijuana businesses man charge justice department sent letter congressional leaders may requesting repeal legislation protecting marijuana businesses operating legal states federal prosecution sessions made abundantly clear opens new window previous speeches senate hearings doesnt care marijuana one iota hell stop nothing halt reverse expansion also worth noting republicans one two groups remaining still negative view cannabis senior citizens republicans control legislative branches government certainly question see crackdown sorts industry looks things us marijuana industry could challenging year ahead serves warning weedbased companies marijuana stock investors 10 stocks like better than160walmartwhen investing geniuses david tom160gardner stock tip pay listen newsletter they160have run decade motley fool stock advisor tripled market david tom160just revealed believe the160 ten best stocks opens new window160for investors buy right walmart wasnt one thats right they160think 10 stocks even 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<p>Each fall, as foliage turns and Vermont teems with tourists, the state's farmers take pride in showing off their fetching fields of hay and corn. In the slanting sun, the crops call to mind the heyday of impressionist painters.</p>
<p>Take a closer look, and you may see something they're a little less proud off -- fields of milkweed, sometimes strategically tucked out of view.</p>
<p>Continue Reading Below</p>
<p>Thanks to Canadian clothing companies, some farmers in this bucolic state are setting aside acreage -- and their aesthetic biases -- to cultivate a homely weed they have long considered a menace to kill at all cost.</p>
<p>With its warts, a messy sap that can sicken livestock and a tendency to grow in tall, mangy clumps that crowd out other plants, milkweed doesn't enjoy a history of immortalization in oil paint.</p>
<p>Milkweed does eventually sprout fragrant flowers. But by season's end, notes one gardening website, it looks like it got "hit with the ugly stick."</p>
<p>Let the plant grow on purpose, Vermont farmer Andre Quintin says, and "it looks like you don't know what the hell you're doing."</p>
<p>That is, until harvest rolls around these days.</p>
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<p>Some makers of winter clothing are touting the white wispy floss in milkweed pods as a plant-based insulating material. Some forecasters say milkweed could yield $800 an acre this year, which Vermont farmers say is better than they get for most commodities.</p>
<p>Heather Darby, a University of Vermont agronomist who is pushing farmers to plant milkweed as protection against volatile milk and grain prices, gives a presentation to prospective growers on "the five stages of dealing with milkweed."</p>
<p>Her approach is modeled on a well-known psychological program for dealing with grief. "The biggest barrier the farmers have is trying to overcome how they feel about the plant itself," she says. As a crop, "it looks like hell."</p>
<p>Growers who let milkweed run rampant have long been considered poor farmers. Fretting about what passersby will think, Mr. Quintin, 46, tucks his milkweed crop on his "back 40," he says, "so no one can see it from the road."</p>
<p>Among milkweed skeptics is Ken Van Hazinga, 65, who grows grain and hay in Shoreham, Vt., and says he couldn't warm to farming it himself. He is trying not to judge peers who do. "There is no accounting for taste," he says. "Some people might like this plant."</p>
<p>Common milkweed, concentrated east of the Rockies and in southern Canada, has a burgeoning market thanks to a handful of Canadian companies and a farmers' co-op that have seized on the idea of stuffing jackets, mittens and other products with its fibers.</p>
<p>A new limited-edition milkweed-packed parka from Quartz Co., based near Montreal, did well enough last winter that the company will roll it out to 10 retailers this year, says its president, Jean-Philippe Robert.</p>
<p>Jaunty enough for the city and practical enough for the weekend cabin, he says, the "refined Canadian parka" sells for $850, the same as Quartz's duck-down jacket. He says down is still popular but milkweed attracts customers intrigued by a "plant-based" insulator. "We were shocked by the interest we got."</p>
<p>Another company has crafted a milkweed snow suit. The Canadian Coast Guard says it recently tested milkweed-insulated parkas, gloves, mittens and coveralls but hasn't yet disclosed its findings.</p>
<p>It's rare for farmers to intentionally grow what are otherwise considered weeds for commercial uses, says Lee Van Wychen, science policy director for the Weed Science Society of America.</p>
<p>Perhaps the "weed" in milkweed is no longer deserved, says John Hayden, a 60-year-old Jeffersonville, Vt., fruit farmer who is growing milkweed and says the plant needs an image makeover. After all, a weed is essentially a wild plant growing where it's not wanted. He isn't sure his willfully grown milkweed qualifies. "We should change the name to 'milkflower.' "</p>
<p>Milkweed's sartorial use harks at least to World War II, when overseas supplies of kapok, an insulating fiber, were cut off. As a wartime substitute, the U.S. rallied civilians to pick milkweed pods for life jackets, says Gerald Wykes, a historian at the Monroe County Museum in Michigan.</p>
<p>After the war, for the most part milkweed went "back to its roots" as a humble weed, he says, because the ornery plant proved challenging to tame as a crop that could be grown in rows and harvested mechanically. The handpicking that went on in the war "wasn't terribly efficient," he says, and the rising use of synthetics lessened interest in all natural fibers.</p>
<p>Recently, says Ms. Darby, farmers have improved machinery that is designed to gently pick off milkweed pods without damaging the whole plant.</p>
<p>And milkweed has recently sprouted back into favor in some quarters because of its role not just as a green stuffing option but also as the key source of food for caterpillars of the embattled monarch butterfly.</p>
<p>There are now more than 2,000 acres of milkweed planted in Vermont and Quebec, although in Vermont, where efforts are newer, "most of the fields are kind of hidden right now," Ms. Darby says.</p>
<p>"To be planting your biggest enemy," she says, "you don't really want people to know you're doing that."</p>
<p>Bob Buermann, 60, a sheep farmer in South Hero, Vt., says his milkweed is along a well-traveled road, and he isn't getting rave reviews. "It looks really grungy."</p>
<p>A milkweed nightmare jolted Vermont farmer Roger Rainville, 63, from sleep one night. Mr. Rainville, who has 60 acres of milkweed, raises cattle and grows hay along the Canadian border, dreamed he had devalued his land by blanketing it with weeds and that he had ventured outside into air filled with milkweed fluff.</p>
<p>In real life, after his dream, he broke down and mowed one of his milkweed plantings that was near the road. He couldn't stand the way it looked.</p>
<p>"If you drive by a farmer and see they've got milkweed growing everywhere, you think he's lost it," Mr. Rainville says. "My father is rolling over in his grave, I swear to God."</p>
<p>Write to Jennifer Levitz at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>September 27, 2017 13:04 ET (17:04 GMT)</p> | true | 0 | fall foliage turns vermont teems tourists states farmers take pride showing fetching fields hay corn slanting sun crops call mind heyday impressionist painters take closer look may see something theyre little less proud fields milkweed sometimes strategically tucked view continue reading thanks canadian clothing companies farmers bucolic state setting aside acreage aesthetic biases cultivate homely weed long considered menace kill cost warts messy sap sicken livestock tendency grow tall mangy clumps crowd plants milkweed doesnt enjoy history immortalization oil paint milkweed eventually sprout fragrant flowers seasons end notes one gardening website looks like got hit ugly stick let plant grow purpose vermont farmer andre quintin says looks like dont know hell youre harvest rolls around days advertisement makers winter clothing touting white wispy floss milkweed pods plantbased insulating material forecasters say milkweed could yield 800 acre year vermont farmers say better get commodities heather darby university vermont agronomist pushing farmers plant milkweed protection volatile milk grain prices gives presentation prospective growers five stages dealing milkweed approach modeled wellknown psychological program dealing grief biggest barrier farmers trying overcome feel plant says crop looks like hell growers let milkweed run rampant long considered poor farmers fretting passersby think mr quintin 46 tucks milkweed crop back 40 says one see road among milkweed skeptics ken van hazinga 65 grows grain hay shoreham vt says couldnt warm farming trying judge peers accounting taste says people might like plant common milkweed concentrated east rockies southern canada burgeoning market thanks handful canadian companies farmers coop seized idea stuffing jackets mittens products fibers new limitededition milkweedpacked parka quartz co based near montreal well enough last winter company roll 10 retailers year says president jeanphilippe robert jaunty enough city practical enough weekend cabin says refined canadian parka sells 850 quartzs duckdown jacket says still popular milkweed attracts customers intrigued plantbased insulator shocked interest got another company crafted milkweed snow suit canadian coast guard says recently tested milkweedinsulated parkas gloves mittens coveralls hasnt yet disclosed findings rare farmers intentionally grow otherwise considered weeds commercial uses says lee van wychen science policy director weed science society america perhaps weed milkweed longer deserved says john hayden 60yearold jeffersonville vt fruit farmer growing milkweed says plant needs image makeover weed essentially wild plant growing wanted isnt sure willfully grown milkweed qualifies change name milkflower milkweeds sartorial use harks least world war ii overseas supplies kapok insulating fiber cut wartime substitute us rallied civilians pick milkweed pods life jackets says gerald wykes historian monroe county museum michigan war part milkweed went back roots humble weed says ornery plant proved challenging tame crop could grown rows harvested mechanically handpicking went war wasnt terribly efficient says rising use synthetics lessened interest natural fibers recently says ms darby farmers improved machinery designed gently pick milkweed pods without damaging whole plant milkweed recently sprouted back favor quarters role green stuffing option also key source food caterpillars embattled monarch butterfly 2000 acres milkweed planted vermont quebec although vermont efforts newer fields kind hidden right ms darby says planting biggest enemy says dont really want people know youre bob buermann 60 sheep farmer south hero vt says milkweed along welltraveled road isnt getting rave reviews looks really grungy milkweed nightmare jolted vermont farmer roger rainville 63 sleep one night mr rainville 60 acres milkweed raises cattle grows hay along canadian border dreamed devalued land blanketing weeds ventured outside air filled milkweed fluff real life dream broke mowed one milkweed plantings near road couldnt stand way looked drive farmer see theyve got milkweed growing everywhere think hes lost mr rainville says father rolling grave swear god write jennifer levitz jenniferlevitzwsjcom end dow jones newswires september 27 2017 1304 et 1704 gmt | 611 |
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<p>United Technologies Corporation (NYSE: UTX) and Caterpillar Inc. (NYSE: CAT) are both world-renowned U.S. industrial companies withsignificant exposure to the construction industry. And it's right about there that the comparisons stop. Although President-elect Donald Trump's victory saw both companies' stock price jump on enthusiasm of favorable industrial conditions to come, the key drivers of the stock price of each company are significantly different. Here's a look at whatinvestors need to know before buying either stock.</p>
<p>Continue Reading Below</p>
<p>CATERPILLAR HAS HEAVY EXPOSURE TO COMMODITY SPENDING. IMAGE SOURCE: CATERPILLAR.</p>
<p>It's fair to say Trump isn't the biggest fan of the actions of United Technologies' management. During the course of his campaign he repeatedly criticized Carrier, a United Technologies company, for its decision to move production jobs to Mexico from Indiana. Indeed, Trump specifically mentioned an intent to talk to Carrier's management and persuade them to stay in the U.S. in the light of taxes he intends to impose on the company's air conditioning units manufactured in Mexico. So is Trump's victory a negative for United Technologies?</p>
<p>Not so fast. If industrial production and commercial construction picks up in the U.S., then you can be sure that Otis' elevators and Carrier's heating, ventilation, and air conditioning businesses will see benefits. In other words, Carrier's top line would benefit even if its margin were to be negatively affected by Trump's actions.</p>
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<p>UNITED TECHNOLOGIES NEEDS TOEFFECTIVELY RAMP UP PRODUCTION OF ITSGEARED TURBOFAN ENGINE. IMAGE SOURCE: UNITED TECHNOLOGIES.</p>
<p>However, it's hard to make the case that United Technologies would do better than Caterpillar under Donald Trump, at least if you believe that his intentions to revitalize America's coal, construction, and oil and gas industries are efficacious. A look at Caterpillar's <a href="http://www.fool.com/investing/general/2015/11/25/when-will-caterpillars-end-markets-recover.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">end-market exposure Opens a New Window.</a> demonstrates how reliant the company is on energy and mining, particularly in the United States. If Trump succeeds in revitalizing coal and oil and gas production in the U.S., then Caterpillar will surely benefit.</p>
<p>In fact, Caterpillar's exposure to energy is nicely illustrated by the following chart: The stock's performance seems to follow the price of oil rather than the S&amp;P 500 index. In a sense, Caterpillar is an industrial that you can consider as a way to play higher energy prices -- the idea being that energy capital spending will then increase and boost demand for Caterpillar's equipment.</p>
<p><a href="http://ycharts.com/companies/CAT" type="external">CAT</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>In contrast, United Technologies is an industrial stock with <a href="http://www.fool.com/investing/general/2016/03/17/oil.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">minimal energy exposure Opens a New Window.</a>. The key driver of United Technologies' stock price over the past year or so is summed up in the word "execution." The company is going through a year of transition in three of its four segments. Pricing action is being taken to grow market share with Otis elevators in China, while aerospace systems is trying to establish products on new aircraft platforms -- the products will be lower-margin initially. Both of these actions are reducing near-term earnings potential.</p>
<p>However, the most important single long-term earnings driver is the successful ramp-up in production of Pratt &amp; Whitney's geared turbofan engine. It's hardly been smooth sailing, with management forced to reduce its target for production in 2016 from 200 to 150. Bombardier has cited the production setbacks as the reason for delays in deliveries of its C Series aircraft.</p>
<p>The difficulties have made United Technologies stock one of the cheapest rated within its peer group.</p>
<p><a href="http://ycharts.com/companies/CAT/forward_ev_ebitda" type="external">CAT EV to EBITDA (Forward)</a> data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>The decision is based partly on the strength of your views on energy prices. If you're strongly bullish on oil, then Caterpillar would be the pick. However, if forced to choose, I would pick United Technologies.</p>
<p>There are plenty of other stocks out there that can give you exposure to the upside from the possibility of rising oil prices. However, United Technologies offers you something different. The valuation is compelling, particularly as this is a transition year in which earnings growth is being constrained because of long-term growth initiatives. Moreover, the upside in the stock comes largely from execution -- particularly with the geared turbofan -- rather than from the economy per se. For this reason, it would give many portfolios some much-needed diversification.</p>
<p>Forget the 2016 Election: 10 stocks we like better than United Technologies Donald Trump was just elected president, and volatility is up. But here's why you should ignore the election:</p>
<p>Investing geniuses Tom and David Gardner have spent a long time beating the market no matter who's in the White House. In fact, 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%2Fecap-foolcom-bbn-election%3Faid%3D8867%26source%3Disaeditxt0000468%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6454%26ftm_veh%3Dbbn_article_pitch&amp;impression=725f14c7-17b6-40fa-9e8d-1198612ad799&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 United Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fecap-foolcom-bbn-election%3Faid%3D8867%26source%3Disaeditxt0000468%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6454%26ftm_veh%3Dbbn_article_pitch&amp;impression=725f14c7-17b6-40fa-9e8d-1198612ad799&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of November 7, 2016</p>
<p><a href="http://my.fool.com/profile/TMFSaintGermain/info.aspx" type="external">Lee Samaha Opens a New Window.</a> has no position in any stocks mentioned.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | united technologies corporation nyse utx caterpillar inc nyse cat worldrenowned us industrial companies withsignificant exposure construction industry right comparisons stop although presidentelect donald trumps victory saw companies stock price jump enthusiasm favorable industrial conditions come key drivers stock price company significantly different heres look whatinvestors need know buying either stock continue reading caterpillar heavy exposure commodity spending image source caterpillar fair say trump isnt biggest fan actions united technologies management course campaign repeatedly criticized carrier united technologies company decision move production jobs mexico indiana indeed trump specifically mentioned intent talk carriers management persuade stay us light taxes intends impose companys air conditioning units manufactured mexico trumps victory negative united technologies fast industrial production commercial construction picks us sure otis elevators carriers heating ventilation air conditioning businesses see benefits words carriers top line would benefit even margin negatively affected trumps actions advertisement united technologies needs toeffectively ramp production itsgeared turbofan engine image source united technologies however hard make case united technologies would better caterpillar donald trump least believe intentions revitalize americas coal construction oil gas industries efficacious look caterpillars endmarket exposure opens new window demonstrates reliant company energy mining particularly united states trump succeeds revitalizing coal oil gas production us caterpillar surely benefit fact caterpillars exposure energy nicely illustrated following chart stocks performance seems follow price oil rather sampp 500 index sense caterpillar industrial consider way play higher energy prices idea energy capital spending increase boost demand caterpillars equipment cat data ycharts opens new window contrast united technologies industrial stock minimal energy exposure opens new window key driver united technologies stock price past year summed word execution company going year transition three four segments pricing action taken grow market share otis elevators china aerospace systems trying establish products new aircraft platforms products lowermargin initially actions reducing nearterm earnings potential however important single longterm earnings driver successful rampup production pratt amp whitneys geared turbofan engine hardly smooth sailing management forced reduce target production 2016 200 150 bombardier cited production setbacks reason delays deliveries c series aircraft difficulties made united technologies stock one cheapest rated within peer group cat ev ebitda forward data ycharts decision based partly strength views energy prices youre strongly bullish oil caterpillar would pick however forced choose would pick united technologies plenty stocks give exposure upside possibility rising oil prices however united technologies offers something different valuation compelling particularly transition year earnings growth constrained longterm growth initiatives moreover upside stock comes largely execution particularly geared turbofan rather economy per se reason would give many portfolios muchneeded diversification forget 2016 election 10 stocks like better united technologies 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 united technologies wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 7 2016 lee samaha opens new window position stocks mentionedthe 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 | 542 |
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<p>“If I don’t cooperate with them that they were going to do everything in their power to ensure that my mother would be deported.“ – US Marine threatened by military investigators.</p>
<p>As any Marine will tell you, it’s never a good thing when the enemy is making every attempt to kill you. And as the fighting Leathernecks of 1st Platoon, Fox Company will make equally clear, it’s worse when your own officers and government want you dead. Making the entire episode all the more disgusting, most Americans don’t even know anything about this.</p>
<p>As reported by <a href="http://abc7.com/news/marines-cleared-of-killing-afghan-civilians-say-murder-stigma-remains/1135963/" type="external">KABC</a> of Los Angeles, California, on Christmas day 2015, and also by the <a href="http://www.latimes.com/nation/la-na-special-ops-20150614-story.html" type="external">Los Angeles Times</a> earlier this summer, despite seven Marines cleared of charges that could have led to the death penalty, the stigma remains. As some of the Marines claim, the US government has done precious little to clear their names and reputations after wrongfully being accused of killing 19 Afghan civilians and wounding 50 more.</p>
<p>Now out of the Corps and free to speak his mind, Major Fred Galvin, USMC Retired, and two active-duty Marines who wished to remain anonymous due to still being on active duty are coming forth to the press to clear their names.&#160; As the Major told the LA Times, “‘The Marines were called into an office one at a time and interrogated for hours, with no Miranda warnings and no access to lawyers,’ Galvin says. ‘They were held incommunicado for days. They were publicly condemned by top military commanders.’</p>
<p>“‘We weren’t just abandoned — they tried to destroy us,’ he said recently near his Kansas City home, his hand resting on a file box containing thousands of pages of documents from the case.”</p>
<p>While deployed to the Taliban-infested Nangahar province in 2007, Fox Company’s 1st Platoon was in a six vehicle convoy heading into a meeting with village elders in the eastern district of Shinwar. With the small convoy rolling through the small Taliban-controlled village of Bati Kot that morning, they suddenly came under attack.</p>
<p>“The car bomb blew up right in front of our second vehicle. Having been involved in multiple explosions and roadside bombs, this was the largest I’d ever seen,” Galvin said. All five men inside were presumed dead, but through the smoke and flames – as enemy gunfire erupted – the Marines in the second vehicle showed they were very much alive.</p>
<p>As reported, “gunshots rang out from both sides of the road, [Galvin] recalled. Galvin said his Marines opened fire, disabling a Toyota SUV speeding toward them. In five minutes, Galvin said, his men had killed six to 10 combatants.” The whole ordeal was over in minutes. They had survived a suicide bomber and an ambush with only one Marine suffering a shrapnel wound.</p>
<p>As the Marines drove back to their base in Jalalabad, Galvin received what was described as the shock of his career: The BBC was reporting that the Marines had just killed 10 Afghan civilians. By sunset, the news reports from the Western media claimed “Afghan officials and villagers said some Marines were drunk and had shot wildly at civilians. They were accused of barging into homes to shoot inhabitants.”</p>
<p>Of the 120 men of Fox Company, seven Marines wound up facing charges, one of them being Galvin. They came to be known in the press as the “MARSOC 7” killers.</p>
<p>Besides being found guilty by the press, the Marines also faced US Army officers not only declaring them guilty, but Department of Defense (DoD) investigators engaged in tactics such as threatening one Marine from East Los Angeles that his mother would be deported if he didn’t “cooperate” with the government’s prosecution team.</p>
<p>“They were coming after the seven of us. It [official charges] said homicide, Article 138 of the Uniform Code of Military Justice: Negligent homicide, max punishment death,” Galvin said.</p>
<p>After more than three weeks of testimony at North Carolina’s Camp Lejeune, the Court of Inquiry concluded in January 2008 and decided not to bring charges. The findings weren’t made public until May 2008, buried late on a Friday of a holiday weekend. “Five months later on Memorial Day weekend, they [the US government] released a one-sentence statement, ‘The Marines acted appropriately,'” Galvin said.</p>
<p>As a prime example of left-leaning and an overtly bias media, Britain’s <a href="http://www.independent.co.uk/news/world/asia/rumsfelds-renegade-unit-blamed-for-afghan-deaths-1685704.html" type="external">The Independent</a> newspaper noted in a May 2009 article that despite reporting that the MARSOC (Marine Special Operations Command) members of Fox Company being cleared of all charges, The Independent still referred to the Marines as “Rumsfeld’s renegade unit” and was still printing that the Marines “fired indiscriminately at pedestrians and civilian cars, killing at least 19 people”.</p>
<p>The openly liberal paper did note that the US Army commander in Nangahar at the time, Colonel John Nicholson, did complain that the MARSOC Devil Dogs were guilty of “ignoring usual military courtesies.”</p>
<p><a href="http://kevinwhiteman.com/wp-content/uploads/2015/12/Marines.jpg" type="external" />A full two months after the Taliban attack on the Marines, the very same Army Colonel met with families of the alleged victims. He also briefed the Pentagon later that same day. Before the investigation was even complete, Nicholson went before the news cameras to state, “I stand before you today deeply, deeply ashamed and terribly sorry.”</p>
<p>Not quite done yet acting as judge, jury and executioner of the accused Marines, the Army officer added, “The death and wounding of innocent Afghans at the hands of Americans is a stain on our honor.”</p>
<p>Nicholson wasn’t the only Army officer to betray the Marines. The Army’s Lt. Gen. Frank Kearney, head of U.S. Special Operations Command-Central Command, said six weeks after the shootings that there was no evidence of insurgents among 10 dead and 33 wounded Afghans. Kearney had ordered Fox Company removed from Afghanistan six days after the attack.</p>
<p>Kearney, now retired, declined to comment for the LA Times article.</p>
<p>A month after the attack, Galvin was relieved of command. The same combat Marine was ordered to stand in front of his entire 120 Marine command and relieve himself from duty.</p>
<p>He and six other Marines on the convoy were investigated for negligent homicide and dereliction of duty. “After that, we were radioactive,” Galvin said. “These traditions — never leave a Marine behind — well, they left us behind.”</p>
<p>However, Major Gavin knew exactly what the stakes were against him and his Marines. “They were coming after the seven of us. It said homicide, Article 138 of the Uniform Code of Military Justice negligent homicide, max punishment – death,” Galvin said.</p>
<p>After more than three weeks of testimony at Camp Lejeune, NC, the Court of Inquiry concluded in January 2008 and decided not to bring charges. The findings weren’t made public until May 2008, buried late on a Friday of a holiday weekend “document dump”.</p>
<p>“Five months later on Memorial Day weekend, they [the US government] released a one-sentence statement, ‘The Marines acted appropriately,'” Galvin said.</p>
<p>Retired Marine Col. Steven Morgan, one of the three officers on the Marine jury that exonerated the unit, said in an interview: “These Marines still have this black mark on them that never should have been there. It’s an ugly story and it makes me angry.”</p>
<p>In the meantime the Army has promoted Nicholson to Lt. General (three stars) and has said through a spokesman that his “thoughts have not changed” since his testimony at the 2008 court hearing.</p>
<p>KABC also reported, “Those who are out say they can’t find jobs, many are in failing health and divorce is common, the stress too much for several marriages. They say the stigma of murder allegations follows them everywhere. ‘This has radically, adversely affected the lives of Marines, and we just want it to be known that we are innocent,’ Galvin said. He’s asking the Marine Corps for several things, among them that the commandant of the Marines publicly announce that the MARSOC 7 are 100 percent not guilty.</p>
<p>The LA television station also added, “When reached for comment, the Marine Corps told Eyewitness News that a Court of Inquiry is a fact-finding procedure that doesn’t have the power to determine guilty or innocence. They added that the commandant will have nothing further to add. Further requests for comment and clarification went unanswered.”</p>
<p>Retired Marine Capt. Vince Noble, formerly Fox Company’s Executive Office (second in command), said the military command buckled to political pressures and abandoned its own men. “I still ask myself: How could the military turn against its own like that?” said Noble, who now works in law enforcement in New York.</p>
<p>As the LA Times noted, During the trial, cracks appeared in the case against them, such as:</p>
<p>Among the most damning witness testimony was that of Haji Liwani Qumandan, who said he was driving a blue Toyota SUV — which the Marines said carried armed men who fired at them. Qumandan testified that everyone in the vehicle was an unarmed civilian.</p>
<p>Qumandan said the Marines fired “thousands of bullets” which killed his father and 12-year-old nephew, and wounded him in the back. Simply for his name not turning up on any US intelligence terrorist lists, Qumandan received a condolence payment for the deaths of his father and nephew as well as the supposed wound to his back.</p>
<p>Yet in a classified court session that was withheld from the media, a US intelligence report described Qumandan as an “active Taliban participant,” according to Colonel Morgan, the Marine jury member.</p>
<p>“He was bad news — we were dealing with the devil,” said Morgan, who had served as a Marine intelligence officer prior to his retirement.</p>
<p>Several other intelligence reports also said Qumandan actively supported Taliban efforts, retired Marine Master Sgt. James Crawford, the signals intelligence chief for Fox Company in 2007, said in an interview.</p>
<p>After 17 days of testimony, the three-officer jury cleared Galvin and the others. The court noted “unsubstantiated allegations” by military commanders about civilian casualties. It cited the undue influence of a “high level of command, media and governmental attention focused” on the incident.</p>
<p>Testimony by the Marines was “consistent, truthful and credible,” the court concluded. Afghans, on the other hand, were known to “fabricate statements and evidence” in hopes of receiving U.S. condolence payments, the court said.</p>
<p>Earlier this year, Rep. Walter B. Jones (R-N.C.) demanded a public apology from then-Marine Corps commandant, Gen. Joseph F. Dunford, who is now serving as the Chairman of the Joint Chiefs of Staff.</p>
<p>Jones, whose district includes Camp Lejeune, said Fox Company had been the victim of “a witch hunt” in which “senior leaders of our Armed Forces publicly denounced Maj. Galvin and his Marines before an investigation of the matter was made.”</p>
<p>The Tar Heel Congressman demanded that the Marines’ service records be corrected “to remove the stains of being wrongly accused of homicide.”</p>
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<p>&#160;</p> | true | 0 | dont cooperate going everything power ensure mother would deported us marine threatened military investigators marine tell never good thing enemy making every attempt kill fighting leathernecks 1st platoon fox company make equally clear worse officers government want dead making entire episode disgusting americans dont even know anything reported kabc los angeles california christmas day 2015 also los angeles times earlier summer despite seven marines cleared charges could led death penalty stigma remains marines claim us government done precious little clear names reputations wrongfully accused killing 19 afghan civilians wounding 50 corps free speak mind major fred galvin usmc retired two activeduty marines wished remain anonymous due still active duty coming forth press clear names160 major told la times marines called office one time interrogated hours miranda warnings access lawyers galvin says held incommunicado days publicly condemned top military commanders werent abandoned tried destroy us said recently near kansas city home hand resting file box containing thousands pages documents case deployed talibaninfested nangahar province 2007 fox companys 1st platoon six vehicle convoy heading meeting village elders eastern district shinwar small convoy rolling small talibancontrolled village bati kot morning suddenly came attack car bomb blew right front second vehicle involved multiple explosions roadside bombs largest id ever seen galvin said five men inside presumed dead smoke flames enemy gunfire erupted marines second vehicle showed much alive reported gunshots rang sides road galvin recalled galvin said marines opened fire disabling toyota suv speeding toward five minutes galvin said men killed six 10 combatants whole ordeal minutes survived suicide bomber ambush one marine suffering shrapnel wound marines drove back base jalalabad galvin received described shock career bbc reporting marines killed 10 afghan civilians sunset news reports western media claimed afghan officials villagers said marines drunk shot wildly civilians accused barging homes shoot inhabitants 120 men fox company seven marines wound facing charges one galvin came known press marsoc 7 killers besides found guilty press marines also faced us army officers declaring guilty department defense dod investigators engaged tactics threatening one marine east los angeles mother would deported didnt cooperate governments prosecution team coming seven us official charges said homicide article 138 uniform code military justice negligent homicide max punishment death galvin said three weeks testimony north carolinas camp lejeune court inquiry concluded january 2008 decided bring charges findings werent made public may 2008 buried late friday holiday weekend five months later memorial day weekend us government released onesentence statement marines acted appropriately galvin said prime example leftleaning overtly bias media britains independent newspaper noted may 2009 article despite reporting marsoc marine special operations command members fox company cleared charges independent still referred marines rumsfelds renegade unit still printing marines fired indiscriminately pedestrians civilian cars killing least 19 people openly liberal paper note us army commander nangahar time colonel john nicholson complain marsoc devil dogs guilty ignoring usual military courtesies full two months taliban attack marines army colonel met families alleged victims also briefed pentagon later day investigation even complete nicholson went news cameras state stand today deeply deeply ashamed terribly sorry quite done yet acting judge jury executioner accused marines army officer added death wounding innocent afghans hands americans stain honor nicholson wasnt army officer betray marines armys lt gen frank kearney head us special operations commandcentral command said six weeks shootings evidence insurgents among 10 dead 33 wounded afghans kearney ordered fox company removed afghanistan six days attack kearney retired declined comment la times article month attack galvin relieved command combat marine ordered stand front entire 120 marine command relieve duty six marines convoy investigated negligent homicide dereliction duty radioactive galvin said traditions never leave marine behind well left us behind however major gavin knew exactly stakes marines coming seven us said homicide article 138 uniform code military justice negligent homicide max punishment death galvin said three weeks testimony camp lejeune nc court inquiry concluded january 2008 decided bring charges findings werent made public may 2008 buried late friday holiday weekend document dump five months later memorial day weekend us government released onesentence statement marines acted appropriately galvin said retired marine col steven morgan one three officers marine jury exonerated unit said interview marines still black mark never ugly story makes angry meantime army promoted nicholson lt general three stars said spokesman thoughts changed since testimony 2008 court hearing kabc also reported say cant find jobs many failing health divorce common stress much several marriages say stigma murder allegations follows everywhere radically adversely affected lives marines want known innocent galvin said hes asking marine corps several things among commandant marines publicly announce marsoc 7 100 percent guilty la television station also added reached comment marine corps told eyewitness news court inquiry factfinding procedure doesnt power determine guilty innocence added commandant nothing add requests comment clarification went unanswered retired marine capt vince noble formerly fox companys executive office second command said military command buckled political pressures abandoned men still ask could military turn like said noble works law enforcement new york la times noted trial cracks appeared case among damning witness testimony haji liwani qumandan said driving blue toyota suv marines said carried armed men fired qumandan testified everyone vehicle unarmed civilian qumandan said marines fired thousands bullets killed father 12yearold nephew wounded back simply name turning us intelligence terrorist lists qumandan received condolence payment deaths father nephew well supposed wound back yet classified court session withheld media us intelligence report described qumandan active taliban participant according colonel morgan marine jury member bad news dealing devil said morgan served marine intelligence officer prior retirement several intelligence reports also said qumandan actively supported taliban efforts retired marine master sgt james crawford signals intelligence chief fox company 2007 said interview 17 days testimony threeofficer jury cleared galvin others court noted unsubstantiated allegations military commanders civilian casualties cited undue influence high level command media governmental attention focused incident testimony marines consistent truthful credible court concluded afghans hand known fabricate statements evidence hopes receiving us condolence payments court said earlier year rep walter b jones rnc demanded public apology thenmarine corps commandant gen joseph f dunford serving chairman joint chiefs staff jones whose district includes camp lejeune said fox company victim witch hunt senior leaders armed forces publicly denounced maj galvin marines investigation matter made tar heel congressman demanded marines service records corrected remove stains wrongly accused homicide related havent checked liked facebook page please go 160 160 | 1,060 |
<p>After Bristol-Myers Squibb (NYSE: BMY) claimed Merck &amp; Co.'s (NYSE: MRK)cancer-fighting Keytruda infringed upon patents protecting Opdivo, Merck &amp; Co. has agreed to pay Bristol-Myers Squibb $625 million up-front, plus future royalties, in exchange for a non-exclusive license to Opdivo's intellectual property. Does this deal make Bristol-Myers Squibb shares a buy?</p>
<p>In this clip from The Motley Fool's <a href="http://www.fool.com/podcasts/industry-focus?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Industry Focus: Healthcare Opens a New Window.</a>podcast, analyst Kristine Harjes sits down with Todd Campbell to discuss what was behind the deal, and how big the royalty payments may be.</p>
<p>Continue Reading Below</p>
<p>A full transcript follows the video.</p>
<p>10 stocks we like better than Bristol-Myers Squibb 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>*Stock Advisor returns as of January 4, 2017</p>
<p>This podcast was recorded on Jan. 25, 2017.</p>
<p>Kristine Harjes: Let's kick it off with Merck, and also Bristol-Myers.</p>
<p>Todd Campbell:Somevery interesting news here this week, Kristine. Wouldn't you like to be able to add nine figures in revenue with just the stroke of a pen?</p>
<p>Harjes:Yeah, that would be nice. My bank account would love it.</p>
<p>Campbell:That'sessentially what's happened here with Bristol-Myers and Merck. Essentially, these twocompanies have settleda patent dispute,Bristol-Myers coming out on top. Merck has now agreed to give them a pile of money up front tomake up for royalties that they hadn't been paying for infringing on the patent. And,according to the settlement, Merck is going to giveBristol-Myers a healthy 6.5% dividend from here until 2023, and then another 2.5% from 2024 to 2026.</p>
<p>Harjes:And that'sspecifically on one drug named Opdivo and Keytruda.</p>
<p>Campbell:Yes. Both these drugs work inthe same way, theytarget a protein called the PD-1, which is expressed on T-cells, in which cancer cells sneakily use to evade the immune system's detection.</p>
<p>Harjes:Right. This is a completely novel way oftreating cancer, which is whyyou have Bristol-Myers saying here, "Hey, wait,you have infringed upon the patent that we have." So this willeffectually endall of the patent infringement litigationagainst Merck's Keytruda, andas you mentioned, Bristol will get a whole pile of money to make up for the past, and then they'll get royalties going forwards. Thepayments will actually be split 75% toBristol-Myers and 25% to a company calledOno Pharmaceutical, it's aJapanese partner on the drug. This is still a very hefty sum forBristol-Myers.</p>
<p>Campbell:Right. They're getting $625 million right up front. Merry Christmas; here's $625 million! Then,if you look at the potential market opportunity for these checkpoint inhibitors, these PD-1 drugs, it'stremendous, it's huge. These are billions and billions dollar drugs. Justout of the gate,assuming no additional growth on Keytruda, you'd belooking at right around $100 million in royalties stream heading toward Bristol.</p>
<p>Harjes:Right,so this is huge news. Most likely, the drug will continueto expand, making it even bigger and bigger newsgoing forward. And that 6.5% royalty will lastall the way through the end of 2023.</p>
<p>Campbell:Right. Youjust mentioned to the ability to expand. A lot of cancers use this PD-1 toescape detection. What they're finding is,as they do more and more trials indifferent types of cancer, that these drugs are very effective, very high response rates in patients. This was especiallyinteresting, to see them come to this agreement, becausein the last year or so,both drugs, Opdivo and Keytruda, they've diverged in what'shappened in their clinical trials, with Merck havinga lot of success and Bristol-Myers mostly,in my view, because of the way they designed their trials, having less success,especially in lung cancer.</p>
<p>Harjes:Right. This issomething we have talked about on a previous episode ofIndustry Focus, so our long-timelisteners will hopefully remember. Itbasically had to do, as you mentioned, with the trial design, where Opdivo failed its trailin which it was looking at pretty much all levels of PD-1expression 5% or above as opposed to,when they did the Keytruda study, it was 50% PD-1 expression and above. Of course, it's a drug that works on PD-1, so if you'retargeting patients that have a higher expression of it, you'retilting the odds in your favor.</p>
<p>Campbell:Yeah, it's almost like Merck went the safe route, andBristol-Myers tried to jump the shark.</p>
<p>Harjes:Right,and it backfired.</p>
<p>Campbell:Bygoing the safe route, Merck was able to nab an FDA approval for the use of Keytruda in the first line setting for high-expressing PDL patients. What's really interesting is that they also have recently filed for first line use of Keytruda pluschemotherapy in patients who don't express PD-1,after seeing some pretty solid trials. So,if Bristol-Myers had eitherdesigned the trials so that was only high-expressing patients initially, or had combined it withchemotherapy, who knows if Keytruda would have theadvantage in lung cancer heading into 2017 versus Opdivo. Obviously,I think that probably made Bristol-Myers a bit more willing to agree to that royalty stream, because they looked at it and said, "Well,if we can't get the first line, and the first line could be worth up to $1 billion, at least maybe we can share in some of Keytruda's success."</p>
<p>Harjes:Absolutely. It isnot a bad consolation prize.</p>
<p>Campbell:No,and it's all high-margin money. They're not actually producing anything, they already produced the IP for it.</p>
<p><a href="http://my.fool.com/profile/TMFAnchor/info.aspx" type="external">Kristine Harjes Opens a New Window.</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/EBCapitalMarkets/info.aspx" type="external">Todd Campbell Opens a New Window.</a> has no position in any stocks mentioned. 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 | bristolmyers squibb nyse bmy claimed merck amp cos nyse mrkcancerfighting keytruda infringed upon patents protecting opdivo merck amp co agreed pay bristolmyers squibb 625 million upfront plus future royalties exchange nonexclusive license opdivos intellectual property deal make bristolmyers squibb shares buy clip motley fools industry focus healthcare opens new windowpodcast analyst kristine harjes sits todd campbell discuss behind deal big royalty payments may continue reading full transcript follows video 10 stocks like better bristolmyers squibb 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 bristolmyers squibb wasnt one thats right think 10 stocks even better buys click opens new window learn picks advertisement stock advisor returns january 4 2017 podcast recorded jan 25 2017 kristine harjes lets kick merck also bristolmyers todd campbellsomevery interesting news week kristine wouldnt like able add nine figures revenue stroke pen harjesyeah would nice bank account would love campbellthatsessentially whats happened bristolmyers merck essentially twocompanies settleda patent disputebristolmyers coming top merck agreed give pile money front tomake royalties hadnt paying infringing patent andaccording settlement merck going givebristolmyers healthy 65 dividend 2023 another 25 2024 2026 harjesand thatsspecifically one drug named opdivo keytruda campbellyes drugs work inthe way theytarget protein called pd1 expressed tcells cancer cells sneakily use evade immune systems detection harjesright completely novel way oftreating cancer whyyou bristolmyers saying hey waityou infringed upon patent willeffectually endall patent infringement litigationagainst mercks keytruda andas mentioned bristol get whole pile money make past theyll get royalties going forwards thepayments actually split 75 tobristolmyers 25 company calledono pharmaceutical ajapanese partner drug still hefty sum forbristolmyers campbellright theyre getting 625 million right front merry christmas heres 625 million thenif look potential market opportunity checkpoint inhibitors pd1 drugs itstremendous huge billions billions dollar drugs justout gateassuming additional growth keytruda youd belooking right around 100 million royalties stream heading toward bristol harjesrightso huge news likely drug continueto expand making even bigger bigger newsgoing forward 65 royalty lastall way end 2023 campbellright youjust mentioned ability expand lot cancers use pd1 toescape detection theyre finding isas trials indifferent types cancer drugs effective high response rates patients especiallyinteresting see come agreement becausein last year soboth drugs opdivo keytruda theyve diverged whatshappened clinical trials merck havinga lot success bristolmyers mostlyin view way designed trials less successespecially lung cancer harjesright issomething talked previous episode ofindustry focus longtimelisteners hopefully remember itbasically mentioned trial design opdivo failed trailin looking pretty much levels pd1expression 5 opposed towhen keytruda study 50 pd1 expression course drug works pd1 youretargeting patients higher expression youretilting odds favor campbellyeah almost like merck went safe route andbristolmyers tried jump shark harjesrightand backfired campbellbygoing safe route merck able nab fda approval use keytruda first line setting highexpressing pdl patients whats really interesting also recently filed first line use keytruda pluschemotherapy patients dont express pd1after seeing pretty solid trials soif bristolmyers eitherdesigned trials highexpressing patients initially combined withchemotherapy knows keytruda would theadvantage lung cancer heading 2017 versus opdivo obviouslyi think probably made bristolmyers bit willing agree royalty stream looked said wellif cant get first line first line could worth 1 billion least maybe share keytrudas success harjesabsolutely isnot bad consolation prize campbellnoand highmargin money theyre actually producing anything already produced ip kristine harjes opens new window position stocks mentioned todd campbell opens new window position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 574 |
<p>You may not think of your 20s as a time to get serious about finances. After all, your 20s are when you're first starting out in your career, and you probably won't be earning nearly the same salary as when you're older. But believe it or not, your 20s are actually the perfect time to establish smart money-related practices. If you're in your 20s, here are some specific moves you'll definitely want to make.</p>
<p>Continue Reading Below</p>
<p><a href="https://www.fool.com/retirement/2016/12/12/budgeting-in-2017-5-tips-everyone-should-know.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">Budgeting Opens a New Window.</a> is one of the easiest ways to keep track of your spending and ensure that you're not going overboard in any particular category. If you really want to get your finances on the right track, map out a budget and review it every few months to make sure it's something you can actually stick to. If not, you may need to look at cutting some expenses to avoid debt or cripple your savings efforts.</p>
<p>No matter how much you earn, one of the most important money moves to tackle is establishing an <a href="https://www.fool.com/investing/general/2015/11/14/how-do-you-calculate-your-emergency-fund.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">emergency fund Opens a New Window.</a>. You never know when you might lose your job, fall ill, or encounter any sort of situation where you suddenly need money. Emergency savings can protect you from these and other unknowns, so start working toward the goal of amassing enough cash to cover three to six months' worth of living expenses.</p>
<p>Though your emergency savings should trump retirement savings, once you have the former in place, it's time to start setting money aside for the future. If your employer offers a 401(k), be sure to sign up and contribute what you can -- especially since most companies that provide 401(k)s also offer some sort of matching incentive to participants. Don't have access to a 401(k)? You can still save in an <a href="https://www.fool.com/retirement/ira/compare.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">IRA Opens a New Window.</a>, and while you're currently capped at $5,500 a year in contributions, that's a more than respectable start to your nest egg.</p>
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<p>Not only is credit card debt among the worst kind to have, but it's also usually the costliest. Any time you carry a balance on a credit card, you're automatically signing up to throw away money on interest -- interest that, in some cases, can compound daily, thus trapping you in a seemingly endless cycle. That's why it pays to do what it takes to rid yourself of credit card debt, whether it's cutting your monthly expenses to free up more cash, or working a <a href="https://www.fool.com/retirement/2017/07/16/heres-how-44-million-americans-are-getting-richer.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">side gig Opens a New Window.</a> and using your earnings to chip away at what you owe.</p>
<p>The average 20-something who borrowed money for college is on the hook for a monthly payment of $351 -- not exactly pocket change. The sooner you pay off those loans, the more cash you'll have available for other things, whether it's retirement savings or a near-term goal. If you're no longer carrying a costly credit card balance, focus on accelerating your student loan repayment plan so that your college debt is eliminated faster.</p>
<p>Though not everyone aims to own a home, if that's a goal of yours, it's critical to start saving as early as possible. While some folks make the leap into homeownership without having enough cash for a 20% down payment, going this route will open the door to <a href="https://www.fool.com/mortgages/what-is-private-mortgage-insurance.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">private mortgage insurance Opens a New Window.</a>, which will only add to your costs. Furthermore, while there's technically no such thing as being too old to buy a home, since most people take out 30-year loans, the sooner you sign your mortgage, the greater your chances of paying it off by the time retirement rolls around. Therefore, if your goal is to buy your home by age 30, you'll need to save some serious money in your 20s.</p>
<p>You might think you don't need a will in your 20s, especially if you're single or don't have children, but ignoring this crucial estate-planning document is actually a huge mistake. Without a will, there's no telling who might wind up with your assets once you pass, limited as they may be. If you can't afford to hire an attorney for a will, you should at least look into creating one online.</p>
<p>It's a frightening statistic that nearly 12% of U.S. adults don't have a health insurance plan. But even if you're the type who rarely gets sick, going without insurance is a risky financial move. Though you'll be savings hundreds of dollars each month by not paying a premium, the moment you get injured or hospitalized, you could wind up on the hook for thousands of dollars in bills. If you can't swing a more comprehensive plan, at the very least, buy yourself a policy that protects against catastrophic costs. You might face a hefty <a href="https://www.fool.com/knowledge-center/what-is-a-health-insurance-deductible.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">deductible Opens a New Window.</a> and high copayments, but you'll at least somewhat cap your out-of-pocket liability.</p>
<p>Going back to school can be a worthwhile move for your career, but it's one that comes at a cost. So the sooner you come to a decision about graduate school, the better equipped you'll be to make other financial choices, like whether to buy a home right away. Furthermore, while you typically have the option to borrow money for an advanced degree, grad school might also be the sort of thing you want to save for, so if you're certain you'll be going, work on putting money aside in advance.</p>
<p>Contrary to what you may have been led to believe, raises at work aren't always a given. Sometimes, you need to <a href="https://www.fool.com/careers/2017/07/27/why-you-must-ask-for-a-raise.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">fight for that raise Opens a New Window.</a>, and the sooner you do, the more you stand to benefit. Not only will scoring a raise put more money in your pocket immediately, but it'll open the door to higher compensation should you choose to move on to another company. And since you really have nothing to lose by asking, it pays to have that conversation with your manager.</p>
<p>The money moves you make in your 20s could pave the way to a lifetime of financial health. Take these critical steps, and you'll come to be thankful for them later on.</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=0eaf93ee-76dd-11e7-875d-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | may think 20s time get serious finances 20s youre first starting career probably wont earning nearly salary youre older believe 20s actually perfect time establish smart moneyrelated practices youre 20s specific moves youll definitely want make continue reading budgeting opens new window one easiest ways keep track spending ensure youre going overboard particular category really want get finances right track map budget review every months make sure something actually stick may need look cutting expenses avoid debt cripple savings efforts matter much earn one important money moves tackle establishing emergency fund opens new window never know might lose job fall ill encounter sort situation suddenly need money emergency savings protect unknowns start working toward goal amassing enough cash cover three six months worth living expenses though emergency savings trump retirement savings former place time start setting money aside future employer offers 401k sure sign contribute especially since companies provide 401ks also offer sort matching incentive participants dont access 401k still save ira opens new window youre currently capped 5500 year contributions thats respectable start nest egg advertisement credit card debt among worst kind also usually costliest time carry balance credit card youre automatically signing throw away money interest interest cases compound daily thus trapping seemingly endless cycle thats pays takes rid credit card debt whether cutting monthly expenses free cash working side gig opens new window using earnings chip away owe average 20something borrowed money college hook monthly payment 351 exactly pocket change sooner pay loans cash youll available things whether retirement savings nearterm goal youre longer carrying costly credit card balance focus accelerating student loan repayment plan college debt eliminated faster though everyone aims home thats goal critical start saving early possible folks make leap homeownership without enough cash 20 payment going route open door private mortgage insurance opens new window add costs furthermore theres technically thing old buy home since people take 30year loans sooner sign mortgage greater chances paying time retirement rolls around therefore goal buy home age 30 youll need save serious money 20s might think dont need 20s especially youre single dont children ignoring crucial estateplanning document actually huge mistake without theres telling might wind assets pass limited may cant afford hire attorney least look creating one online frightening statistic nearly 12 us adults dont health insurance plan even youre type rarely gets sick going without insurance risky financial move though youll savings hundreds dollars month paying premium moment get injured hospitalized could wind hook thousands dollars bills cant swing comprehensive plan least buy policy protects catastrophic costs might face hefty deductible opens new window high copayments youll least somewhat cap outofpocket liability going back school worthwhile move career one comes cost sooner come decision graduate school better equipped youll make financial choices like whether buy home right away furthermore typically option borrow money advanced degree grad school might also sort thing want save youre certain youll going work putting money aside advance contrary may led believe raises work arent always given sometimes need fight raise opens new window sooner stand benefit scoring raise put money pocket immediately itll open door higher compensation choose move another company since really nothing lose asking pays conversation manager money moves make 20s could pave way lifetime financial health take critical steps youll come thankful later 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 | 609 |
<p>Private sector businesses, government agencies, and private citizens are losing the war to keep their digital data from being stolen. Every day brings reports of new data breaches, identity theft, stolen intellectual property, military and diplomatic secrets divulged, financial fraud, or humiliating disclosures made by some hacktivist collective. Data breaches are projected to cost the US economy an estimated half a trillion dollars in 2016, and if the current rate of growth continues, losses will top two trillion dollars by 2020. In addition to the economic harm, wholesale data theft erodes our constitutional protections in a way that’s not well understood.</p>
<p>Fortunately, the problem of data theft is eminently solvable, and really, it’s not even that hard—if you understand the root cause of the problem and the engineering and politics required to fix it. Politics are a factor because the unsolved problem aggregates political power to a few, and the fix returns power to the many. We’ll look first at the engineering (in non-technical language) and then consider the politics.</p>
<p>The Root Cause</p>
<p>First, let’s define what’s being stolen. The vast majority of digital information is unstructured data—individual files like Microsoft Word documents or Excel spreadsheets, images, videos, music, email, and datasets. Structured data is information stored in huge relational databases, but structured data only accounts for a small percentage of all digital data. That percentage is rapidly shrinking because new technologies enable processing of unstructured data as if it were structured, while avoiding the cost of data entry. Dataset files are the results of a database query. Huge relational databases are nearly impossible to steal, but datasets are stolen frequently. The point is files are stolen, individual files that can be seen on your computer. Files are stolen by making a copy of the original, then transporting the copy to another device under the thief’s control.</p>
<p>Given that files are the target, you can say that data theft is prevented when: 1) bad guys who get copies of your files can’t do anything with them, and 2) when you share your file by sending a copy of it to someone, you can control what they can do with that copy and how long they can keep it.</p>
<p>This definition is about files, not networks, because bad guys don’t steal networks. They sneak into them to steal files, something we’ve learned is impossible to prevent. No responsible cybersecurity professional will ever tell you that even the best perimeter security is now, or ever can be, perfect.</p>
<p>Why are files stealable? The answer is surprising. Software applications take inputs from users and manufacture files. The attributes that applications give files must be common so other applications can read them.</p>
<p>Even though computers and software have grown exponentially in power, speed, complexity, and reliability, applications today still manufacture files the same way they did in the 1950’s. Back then, the focus was simply figuring out how to create and store a digital file; adding security and control attributes to files as they were created wasn’t even an afterthought—and that is the root cause of the current dilemma.</p>
<p>Every time an application creates a file with only 1950’s-era primitive attributes, a new stealable file is born. Anyone, be they bad guy or good, who gets a copy of that file can read it, play it, alter it, or send new copies of it to anyone, anywhere, at any time. You can’t see them doing it, and you can’t stop them from doing it. Those same bad guys who you can’t keep out of your network no matter how hard you try, can ring the cash register, steal military secrets and intellectual property, or reveal embarrassing emails, all merely by gaining possession of copies of your files.</p>
<p>Given the trillions of dollars of monetary value and political power stored in unsecure/uncontrollable-by-default files, the incredible volume, sophistication, and diverse motivations of data thievery really isn’t surprising, is it? If Willie Sutton was alive, he‘d be a cyber thief and so would Genghis Khan. Files are where the money and power are.</p>
<p>If we don’t fix files, stopping data theft is impossible.</p>
<p>The Fix</p>
<p>The fix is for applications to manufacture files that are secured and controllable by default, so if bad guys get them, it doesn’t matter. Here’s a non-geeky, step-by-step explanation of how applications can do this.</p>
<p>Secured by Default</p>
<p>First, when creating a new file, the application generates a unique encryption key (a file containing a long random string of characters used to scramble and unscramble files) for that specific file.</p>
<p>Second, the application would lock the file (strongly encrypt) with that unique key. Strong encryption means supercomputers would take years to brute force decrypt a single file. After the file is created and locked, it can only be opened (decrypted) with the correct decryption key.</p>
<p>Third, the application would hide the file’s true name so that if a bad guy gets access to it, he can’t tell what kind of file it is, much less whether it’s valuable or not. Let’s say the true name of one of your valuable files is MyAdministratorPasswordsList.xlsx. You can see the true name when you log into your application because it has a list of the true names. If a bad guy gets that file, since he can’t access the true name list, all he can see is a file named something like 0f6fxvcgbgnr4y. Since all your files are strongly encrypted with their own unique key, it doesn’t matter if bad guys get them, does it? Not even nation-states have the computing power to brute force decrypt all of your files one-by-one in hopes of finding just the ones that are valuable.</p>
<p>Fourth, the application stores your keys with the same sort of random, nonsensical name used for every other file. If the bad guy steals your computer, or uses malware to make copies of all your files, so what? He can’t tell which files are valuable and which are not.</p>
<p>Fifth, when you share a file, the application automatically makes a special shared key that will unlock the file for you and for the person you shared the file with, but won’t unlock the file for anyone else. Like other keys, the shared key file’s name is random and nonsensical. If a bad guy gets the shared key, he can’t tell that it’s a key or what file it unlocks.</p>
<p>Sixth, applications automatically make a special file keyed to the user that has to be present for the rightful user to log in and then stores that special file with a random nonsensical name. (Are you sensing a theme here?) Applications check for the special file, and if it’s not present, the bad guy who’s stolen your credentials can’t log as you on his device, so it doesn’t matter if he has them.</p>
<p>Seventh, encrypted internet connections have been hacked repeatedly and will be again. Applications like email or file sharing apps should only transmit strongly encrypted and nonsensically-named files through an encrypted connection. If the encrypted connection is hacked, bad guys won’t get usable files.</p>
<p>Five things to note:</p>
<p>Controllable by Default</p>
<p>Applications can also bind various “controls” to each file as it is being created. Any kind of control can be bound to a file, but the two most common types are action controls, which tell the application what it’s allowed to do with the file, and time controls, which control the lifespan of the file. A simple example is action- and time-controlled email. With controls, the sender could decide in advance whether or not the recipient can print, forward, copy from, or save an email or attachment as an uncontrolled file. The sender could also set an expiration date or recall emails. When they expire or are recalled, they would be deleted from the recipients’ device.</p>
<p>Ruining the Economics of Data Theft</p>
<p>As this is being written, data thieves are sitting at a comfy desk down the street or on the other side of the planet profitably stealing files wholesale with very nearly zero risk of being caught or punished. With widespread adoption of secured/controllable-by-default files, bad guys would have to resort to retail theft, like having to steal your login credentials and your device to get your data. That’s an expensive operation to steal far less data with a much higher risk of capture and imprisonment. Secured/controllable-by-default files ruin the economics of data theft.</p>
<p>Limits</p>
<p>Secured/controllable-by-default files aren’t a panacea. They don’t do away with the need for other sorts of cyber and physical security measures. For example:</p>
<p>Keys and Liberty</p>
<p>The good news is that technology to do what I’ve described already exists. The bad news is that fixing the problem will be fought by government officials who think that they should be able to examine your digital life as they please.</p>
<p>Their excuse is, “For your personal safety, we must have unfettered access to everyone’s digital life to protect you from terrorists, drug cartels, and pedophiles” or some such. If you say, “No, you cannot obtain digital information in a manner that violates our Constitutional rights,” you are likely to be tarred as a tacit supporter of whatever flavor of bad guy the government is, ostensibly, protecting you from. That’s how Apple CEO Tim Cook was characterized when he refused to give the FBI the master key to all encrypted iPhones.</p>
<p>The problem with that logic is that bad guys use every technology available to do bad things. They use cars and planes to transport terrorists and kidnapping victims, medicines and surgical instruments to heal Jihadis, cell phones to set off IEDs, and social media to lure tots and teens into life-threatening situations. It is the job of law enforcement and the rest of the government to adapt and adjust to an ever-changing threat landscape without depriving citizens of their rights. The late Antonin Scalia framed this necessary limitation well:</p>
<p>“There is nothing new in the realization that the Constitution sometimes insulates the criminality of a few in order to protect the privacy of us all.”</p>
<p>Being able to secure our data with our own keys and control how it’s used supports our:</p>
<p>Interestingly, it’s likely that the more authoritarian the government, the more they’ll be panicked by the fix. Most of the world’s infrastructure can’t run without the internet; they can’t shut it off without also bringing their own infrastructure to a grinding halt. As internet traffic grows more opaque because more files flowing through it are encrypted with keys the government doesn’t have, and usable files are more difficult to get from devices, the harder it will be for authoritarians to suppress freedom of speech, religion, assembly, and association without also wrecking their own economy.</p>
<p>Free Markets, Metrics, and Motivation</p>
<p>Free market participants invest hoping for a return. Metrics correlate investments to returns. There hasn’t been a reliable metric for correlating investment in stopping data theft to actually stopping data theft. That’s hindering the market’s ability to sort this problem out for itself.</p>
<p>Currently, an organization can spend lots of money on cybersecurity and still hemorrhage data; another can spend nothing and not be robbed. As a result, boards and the C-suite are not highly motivated to spend money to stop data theft and won’t be until they have some way to measure their return on the investment. They’ll minimize their spending and hope it’s the other guy who gets stung. Insurers, normally thought and technical leaders in helping organizations manage risk, are similarly hamstrung. Their ability to tie risk management practices to return on investment, “Do this, this, and that, and it will lower your risk and premium by X amount, and we’ll cover the rest” is stymied.</p>
<p>Secured/controllable-by-default files provide the missing key risk metric: the degree to which data is secure is the ratio of secured/controlled-by-default files to unsecure/uncontrolled-by-default files. The closer that ratio is to 100%, the lower the risk.</p>
<p>With an understanding of the root cause of data theft, how to fix it, and the ability to measure return on investment, buyers of application software, particularly large buyers, are in a position to push providers to incorporate the fix—and regular citizens will share in the benefits. Will this get done overnight? No, there are a lot of applications that need to be updated, a lot of existing data to convert, and political battles to fight—but this is a problem that can and should be remedied in a few short years.</p>
<p>David A. Kruger is one of the founders of a Denver-based cybersecurity software company. Twitter: @dkcybersecurity</p> | true | 0 | private sector businesses government agencies private citizens losing war keep digital data stolen every day brings reports new data breaches identity theft stolen intellectual property military diplomatic secrets divulged financial fraud humiliating disclosures made hacktivist collective data breaches projected cost us economy estimated half trillion dollars 2016 current rate growth continues losses top two trillion dollars 2020 addition economic harm wholesale data theft erodes constitutional protections way thats well understood fortunately problem data theft eminently solvable really even hardif understand root cause problem engineering politics required fix politics factor unsolved problem aggregates political power fix returns power many well look first engineering nontechnical language consider politics root cause first lets define whats stolen vast majority digital information unstructured dataindividual files like microsoft word documents excel spreadsheets images videos music email datasets structured data information stored huge relational databases structured data accounts small percentage digital data percentage rapidly shrinking new technologies enable processing unstructured data structured avoiding cost data entry dataset files results database query huge relational databases nearly impossible steal datasets stolen frequently point files stolen individual files seen computer files stolen making copy original transporting copy another device thiefs control given files target say data theft prevented 1 bad guys get copies files cant anything 2 share file sending copy someone control copy long keep definition files networks bad guys dont steal networks sneak steal files something weve learned impossible prevent responsible cybersecurity professional ever tell even best perimeter security ever perfect files stealable answer surprising software applications take inputs users manufacture files attributes applications give files must common applications read even though computers software grown exponentially power speed complexity reliability applications today still manufacture files way 1950s back focus simply figuring create store digital file adding security control attributes files created wasnt even afterthoughtand root cause current dilemma every time application creates file 1950sera primitive attributes new stealable file born anyone bad guy good gets copy file read play alter send new copies anyone anywhere time cant see cant stop bad guys cant keep network matter hard try ring cash register steal military secrets intellectual property reveal embarrassing emails merely gaining possession copies files given trillions dollars monetary value political power stored unsecureuncontrollablebydefault files incredible volume sophistication diverse motivations data thievery really isnt surprising willie sutton alive hed cyber thief would genghis khan files money power dont fix files stopping data theft impossible fix fix applications manufacture files secured controllable default bad guys get doesnt matter heres nongeeky stepbystep explanation applications secured default first creating new file application generates unique encryption key file containing long random string characters used scramble unscramble files specific file second application would lock file strongly encrypt unique key strong encryption means supercomputers would take years brute force decrypt single file file created locked opened decrypted correct decryption key third application would hide files true name bad guy gets access cant tell kind file much less whether valuable lets say true name one valuable files myadministratorpasswordslistxlsx see true name log application list true names bad guy gets file since cant access true name list see file named something like 0f6fxvcgbgnr4y since files strongly encrypted unique key doesnt matter bad guys get even nationstates computing power brute force decrypt files onebyone hopes finding ones valuable fourth application stores keys sort random nonsensical name used every file bad guy steals computer uses malware make copies files cant tell files valuable fifth share file application automatically makes special shared key unlock file person shared file wont unlock file anyone else like keys shared key files name random nonsensical bad guy gets shared key cant tell key file unlocks sixth applications automatically make special file keyed user present rightful user log stores special file random nonsensical name sensing theme applications check special file present bad guy whos stolen credentials cant log device doesnt matter seventh encrypted internet connections hacked repeatedly applications like email file sharing apps transmit strongly encrypted nonsensicallynamed files encrypted connection encrypted connection hacked bad guys wont get usable files five things note controllable default applications also bind various controls file created kind control bound file two common types action controls tell application allowed file time controls control lifespan file simple example action timecontrolled email controls sender could decide advance whether recipient print forward copy save email attachment uncontrolled file sender could also set expiration date recall emails expire recalled would deleted recipients device ruining economics data theft written data thieves sitting comfy desk street side planet profitably stealing files wholesale nearly zero risk caught punished widespread adoption securedcontrollablebydefault files bad guys would resort retail theft like steal login credentials device get data thats expensive operation steal far less data much higher risk capture imprisonment securedcontrollablebydefault files ruin economics data theft limits securedcontrollablebydefault files arent panacea dont away need sorts cyber physical security measures example keys liberty good news technology ive described already exists bad news fixing problem fought government officials think able examine digital life please excuse personal safety must unfettered access everyones digital life protect terrorists drug cartels pedophiles say obtain digital information manner violates constitutional rights likely tarred tacit supporter whatever flavor bad guy government ostensibly protecting thats apple ceo tim cook characterized refused give fbi master key encrypted iphones problem logic bad guys use every technology available bad things use cars planes transport terrorists kidnapping victims medicines surgical instruments heal jihadis cell phones set ieds social media lure tots teens lifethreatening situations job law enforcement rest government adapt adjust everchanging threat landscape without depriving citizens rights late antonin scalia framed necessary limitation well nothing new realization constitution sometimes insulates criminality order protect privacy us able secure data keys control used supports interestingly likely authoritarian government theyll panicked fix worlds infrastructure cant run without internet cant shut without also bringing infrastructure grinding halt internet traffic grows opaque files flowing encrypted keys government doesnt usable files difficult get devices harder authoritarians suppress freedom speech religion assembly association without also wrecking economy free markets metrics motivation free market participants invest hoping return metrics correlate investments returns hasnt reliable metric correlating investment stopping data theft actually stopping data theft thats hindering markets ability sort problem currently organization spend lots money cybersecurity still hemorrhage data another spend nothing robbed result boards csuite highly motivated spend money stop data theft wont way measure return investment theyll minimize spending hope guy gets stung insurers normally thought technical leaders helping organizations manage risk similarly hamstrung ability tie risk management practices return investment lower risk premium x amount well cover rest stymied securedcontrollablebydefault files provide missing key risk metric degree data secure ratio securedcontrolledbydefault files unsecureuncontrolledbydefault files closer ratio 100 lower risk understanding root cause data theft fix ability measure return investment buyers application software particularly large buyers position push providers incorporate fixand regular citizens share benefits get done overnight lot applications need updated lot existing data convert political battles fightbut problem remedied short years david kruger one founders denverbased cybersecurity software company twitter dkcybersecurity | 1,154 |
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<p>Shares of AMD soared more than 50% on April 22 after the chipmaker's first quarter earnings beat expectations. The stock has since given up some of those gains, but investors might be wondering if it's finally time to buy some shares of the beaten-down chipmaker. Let's take a look at its key numbers, guidance, and new announcements to decide.</p>
<p>Continue Reading Below</p>
<p>Image source: AMD.</p>
<p>The key numbersAMD's revenue fell 19% annually to $832 million, which beat expectations by $13.8 million. Computing and Graphics revenue, which accounted for 55% of that total, fell 14% due to lower sales of PC processors and lower average selling prices for both CPUs and GPUs. However, the unit's operating loss narrowed slightly from $75 million a year ago to $70 million. EESC (Enterprise, Embedded, and Semi-Custom) revenue, which accounted for the remaining 45% of its sales, fell 25% due to lower sales of semi-custom SoCs. The unit's operating income plunged 64% to $16 million due to higher R&amp;D expenses.</p>
<p>On the bottom line, AMD posted a non-GAAP net loss of $96 million, or $0.12 per share, which was wider than its loss of $0.09 a year earlier but a penny higher than expectations. On a GAAP basis, AMD's net loss narrowed from $180 million in the prior year quarter to $109 million.</p>
<p>Positive developmentsAMD expects its revenue to rise 15% sequentially during the current quarter, which exceeds expectations for 7% growth. That would also equal 2% year-over-year growth -- which would represent its first quarter of annual sales growth since the second quarter of 2014.</p>
<p>CEO Lisa Su attributes that rebound to "new product introductions and design wins," whichmight include new consoles like Sony's 4K-capable " <a href="http://www.fool.com/investing/general/2016/03/22/instant-analysis-sony-corp-is-developing-the-plays.aspx?source=eptfxblnk0000004" type="external">PlayStation NEO Opens a New Window.</a>" and Nintendo'snext-gen "NX" console. Those design wins are expected to boost its EESC revenue with higher orders of semi-custom SoCs. Su alsobelieves that launching new 14nm FinNET-based Polaris GPUs in mid-2016 will provide AMD "with significant opportunities to gain share" against Nvidia . Su claims that Polaris will deliver "double the performance per watt" of its current GPUs.</p>
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<p>AMD also disclosed a new joint venture with Chinese firm THATIC to "develop SoCs tailored to the Chinese server market that will complement AMD's own offerings." This deal includes a $293 million licensing agreement, in which payments will depend on the SoCs "achieving certain milestones," as well as royalty payments on SoC sales. That partnership is a vote of confidence for AMD's ARM-licensed server CPU, which it introduced in January, and could also boost its EESC revenue.</p>
<p>But competition remains fierceAMD's forecast looks rosy, but investors should remember that Intel and Nvidia still respectively dominate the CPU and high-end GPU markets.</p>
<p>AMD's best shot at catching up to Intel is Zen, its next-gen CPU, which will arrive at the end of the year. AMD claims that Zen chips will offera 40% improvement in IPC (instructions per cycle) over its maligned Bulldozer chips. However, it's still unclear how the 14nm Zen chips will fare against Intel's comparable 14nm Skylake chips. Intel will also update Skylake with the Kaby Lake revision in the second half of 2016, followed by 10nm Cannonlake chips in 2017. Those two updates could render Zen obsolete by the time it arrives. Intel also still controls about 99% of the worldwide data center market with its Xeon chips, so the impact of ARM-based AMD server CPUscould be minimal.</p>
<p>In the add-in graphics board market, Nvidia will launch <a href="http://wccftech.com/nvidia-geforce-gtx-1080-1070-computex-2016/" type="external">Opens a New Window.</a>new Pascal GPUs this summer to counter AMD's Polaris. Nvidia has also been integrating its GPUs with its mobile Tegra CPUs in its Drive PX2 platform for autonomous cars -- which givesit additional growth opportunities beyond professional graphics and gaming. We won't know how Polaris fares against Pascal until both GPUs arrive, but AMD must make a huge splash to gain market share against Nvidia, which controlled <a href="http://jonpeddie.com/publications/add-in-board-report" type="external">Opens a New Window.</a>over 80% of the add-in graphics board market at the end of 2015.</p>
<p>Look but don't touchEven after its recent rally, AMD's EV/Sales ratio of 1.2 is much lower than Intel's ratio of 2.7 and Nvidia's ratio of 3.2. While that makes AMD look "cheaper", it also faces a less certain future than both rivals. AMD has carved out a nice niche market in consoles, but demand remains seasonal, and its dependence on console makers likely gives it less clout in price negotiations. Higher R&amp;D expenses could also prevent AMD from becoming profitable again, even as revenue growth improves.</p>
<p>Therefore, I'm adding AMD to my watchlist for now, but I'm not planning to pick up shares anytime soon. The company's first quarter report was good and its guidance was solid, but I don't think a 50% rally was justified or sustainable.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/27/should-you-buy-advanced-micro-devices-inc-after-it.aspx" type="external">Should You Buy Advanced Micro Devices Inc. After Its Earnings Beat? 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 Nvidia. 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 | shares amd soared 50 april 22 chipmakers first quarter earnings beat expectations stock since given gains investors might wondering finally time buy shares beatendown chipmaker lets take look key numbers guidance new announcements decide continue reading image source amd key numbersamds revenue fell 19 annually 832 million beat expectations 138 million computing graphics revenue accounted 55 total fell 14 due lower sales pc processors lower average selling prices cpus gpus however units operating loss narrowed slightly 75 million year ago 70 million eesc enterprise embedded semicustom revenue accounted remaining 45 sales fell 25 due lower sales semicustom socs units operating income plunged 64 16 million due higher rampd expenses bottom line amd posted nongaap net loss 96 million 012 per share wider loss 009 year earlier penny higher expectations gaap basis amds net loss narrowed 180 million prior year quarter 109 million positive developmentsamd expects revenue rise 15 sequentially current quarter exceeds expectations 7 growth would also equal 2 yearoveryear growth would represent first quarter annual sales growth since second quarter 2014 ceo lisa su attributes rebound new product introductions design wins whichmight include new consoles like sonys 4kcapable playstation neo opens new window nintendosnextgen nx console design wins expected boost eesc revenue higher orders semicustom socs su alsobelieves launching new 14nm finnetbased polaris gpus mid2016 provide amd significant opportunities gain share nvidia su claims polaris deliver double performance per watt current gpus advertisement amd also disclosed new joint venture chinese firm thatic develop socs tailored chinese server market complement amds offerings deal includes 293 million licensing agreement payments depend socs achieving certain milestones well royalty payments soc sales partnership vote confidence amds armlicensed server cpu introduced january could also boost eesc revenue competition remains fierceamds forecast looks rosy investors remember intel nvidia still respectively dominate cpu highend gpu markets amds best shot catching intel zen nextgen cpu arrive end year amd claims zen chips offera 40 improvement ipc instructions per cycle maligned bulldozer chips however still unclear 14nm zen chips fare intels comparable 14nm skylake chips intel also update skylake kaby lake revision second half 2016 followed 10nm cannonlake chips 2017 two updates could render zen obsolete time arrives intel also still controls 99 worldwide data center market xeon chips impact armbased amd server cpuscould minimal addin graphics board market nvidia launch opens new windownew pascal gpus summer counter amds polaris nvidia also integrating gpus mobile tegra cpus drive px2 platform autonomous cars givesit additional growth opportunities beyond professional graphics gaming wont know polaris fares pascal gpus arrive amd must make huge splash gain market share nvidia controlled opens new windowover 80 addin graphics board market end 2015 look dont toucheven recent rally amds evsales ratio 12 much lower intels ratio 27 nvidias ratio 32 makes amd look cheaper also faces less certain future rivals amd carved nice niche market consoles demand remains seasonal dependence console makers likely gives less clout price negotiations higher rampd expenses could also prevent amd becoming profitable even revenue growth improves therefore im adding amd watchlist im planning pick shares anytime soon companys first quarter report good guidance solid dont think 50 rally justified sustainable article buy advanced micro devices inc earnings beat opens new window originally appeared foolcom leo sun opens new window position stocks mentioned motley fool owns shares recommends nvidia 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 | 601 |
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<p>If your company has just purchased a <a href="http://www.pcmag.com/review/343777/microsoft-surface-hub" type="external">Microsoft Surface Hub Opens a New Window.</a> and you've been tasked with deciding which applications to download, you're in the right place. This article details the best apps that come preinstalled on the Surface Hub, a few apps you'll need to download from the Windows Store, and how they will help to ensure more effective <a href="http://www.pcmag.com/article2/0,2817,2489110,00.asp" type="external">business collaboration Opens a New Window.</a>, productivity, and even some fun.</p>
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<p>Regardless of whether you've bought the $8,999, 55-inch, full HD model or the $21,999, 84-inch, 4K model, the Surface Hub will undoubtedly <a href="http://www.pcmag.com/article/345682/5-ways-the-microsoft-surface-hub-will-change-how-you-work" type="external">change the way you work Opens a New Window.</a>. By the way, if you have no idea what the Surface Hub is, I suggest you read this <a href="http://www.pcmag.com/article/345646/what-is-the-microsoft-surface-hub" type="external">primer Opens a New Window.</a> first. But if you're familiar with the Surface Hub and you just need some direction on what apps to download and why, the following apps are a perfect place to start.</p>
<p>Keep in mind that the Surface Hub can run any <a href="http://www.pcmag.com/article2/0,2817,2488631,00.asp" type="external">Microsoft Windows 10 Opens a New Window.</a> <a type="external" href="" /> Universal app but it can't run apps specific for desktops and tablets, so your list of available tools is relatively small. The following apps are, in my opinion, the best available tools for business users or anyone who wants to make the Surface Hub a one-stop-shop for team collaboration.</p>
<p>Microsoft Skype for Business The Surface Hub is primarily a note-taking and <a href="http://www.pcmag.com/article2/0,2817,2388678,00.asp" type="external">videoconferencing Opens a New Window.</a> solution. There are a million different things you can do with the device but, at its core, it is designed to let you connect people and ideas. With your <a href="http://www.pcmag.com/article2/0,2817,2486508,00.asp" type="external">Microsoft Skype for Business Opens a New Window.</a> <a type="external" href="" /> app (which is already installed on the device), you'll be able to meet with up to 250 people, extend your screen to two additional apps for taking notes or conducting demonstrations, and share documents and instant messages (IMs).</p>
<p>Once you've got Skype all tricked out on your Surface Hub and your team's email addresses are added to the system, Surface Hub users will be able to schedule video calls (the way you would schedule a conference room) or just walk right up to the Surface Hub and call anyone with a Skype for Business account. Calling regular Skype users is a bit of a pain (as your Skype for Business server needs to be able to confederate with Skype for consumer accounts, or you have to set up a Skype for Business meeting and have a regular Skype customer join the meeting as a guest). But once you get rolling, the Surface Hub makes videoconferencing crisp, clear, and adaptive.</p>
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<p>That's because the Surface Hub has two wide-angle (i.e., 100-degree field of view) HD cameras, a four-element microphone array, and passive infrared presence and ambient light sensors that know the side of the Surface Hub from which you're presenting. This means remote viewers won't see your nostrils or armpits when you get up close to the Surface Hub to start writing or drawing, as the sensors will force the Surface Hub to activate the second, distant camera.</p>
<p>The Surface Hub's Whiteboard App The whiteboard app is the crown jewel of the Surface Hub. Already installed on the Surface Hub and available on the Surface Hub's home screen, the whiteboard will be one of your most-used Surface Hub apps. It has got an infinite canvas that lets you scroll to your heart's content as your team conducts brainstorming sessions. Do you know how you need to erase your whiteboard when it gets crowded? Not anymore. You also won't need to snap photos of the whiteboard for posterity. The Surface Hub lets you email the contents of your whiteboard directly from the interface in a PNG document.</p>
<p>One thing you'll really love about the whiteboard app is that it automatically launches whenever someone lifts one of the two digital ink pens that sit along the side of the Surface Hub. So, if you need to take notes quickly, there's no need to go back to the desktop or search for the app; it'll just appear when you get ready to start writing. The whiteboard is also your final destination if you need to take a screengrab of anything on the Surface Hub. You can take images from other apps alongside the whiteboard, which you can drag into the whiteboard for marking or further analysis, or you can close the whiteboard, take a screengrab of a single full-screen app, and dump the image into the whiteboard app.</p>
<p>Microsoft Office 365, OneDrive, and SharePointBecause the Surface Hub is designed as a community-based tool, it's not built to support file storage or personal settings. This means that, if you want to save files created or edited during a Surface Hub session, you'll need to log into your personal <a href="http://www.pcmag.com/article2/0,2817,2383731,00.asp" type="external">Microsoft Office 365</a> <a type="external" href="" /> account every time you use the Surface Hub in order to save files to <a href="http://www.pcmag.com/article2/0,2817,2409569,00.asp" type="external">Microsoft OneDrive Opens a New Window.</a> <a type="external" href="" /> and <a href="http://www.pcmag.com/article2/0,2817,2490933,00.asp" type="external">Microsoft SharePoint Opens a New Window.</a> <a type="external" href="" />. There are also more obvious reasons to activate and access an Office 365 account on the Surface Hub, such as cloud-based versions of Microsoft Word, Excel, and PowerPoint (which is particularly awesome on such a large and dynamic screen), but this is the primary workaround for anyone who is frustrated by the Surface Hub's lack of native storage. Standard Office apps are available on the Surface Hub but, if you want to give your team access to their files and the ability to save files, download the Office 365 app and tell them to log into their personal accounts every time they use the Surface Hub.</p>
<p>With these three apps working in concert on the Surface Hub, your teams will have access to all Office collaboration apps, email and calendar apps, cloud-based file sharing, and up to 1 TB of cloud-based storage per user (which is perfect for saving an abundant amount of PowerPoints and <a href="http://www.pcmag.com/article2/0,2817,2491994,00.asp" type="external">Excel Opens a New Window.</a> spreadsheets).</p>
<p>Microsoft OneNote If you're in need of a more powerful note-taking app than the whiteboard, try using Microsoft's OneNote digital note-taking tool. With OneNote, you'll be able to share your OneNote notebooks with remote team members and colleagues in front of the Surface Hub in order to simultaneously edit or analyze content. You can also share websites and documents that you view on the Surface Hub to your OneNote account for later or remote analysis.</p>
<p>Other features that OneNote has that the whiteboard app doesn't are check boxes that let you go over to-do lists or pros and cons lists, plus you can add a grid or ruled lines or customize formatting (like you would in a Word document). The whiteboard is meant for quick and easy brainstorm note-taking, while OneNote is built for more comprehensive and thoughtful meeting minutes and assignments.</p>
<p>Mural for Windows If even OneNote isn't enough for your more creative and conscientious note-takers, the Surface Hub's <a href="https://mural.co/" type="external">Mural app Opens a New Window.</a> is sure to satisfy their demand. With Mural, you'll be able to place sticky notes on an infinite grid-lined or blank canvas, adjust the background color, shift the size of specific images, form multiple canvases within one canvas, and let remote team members vote on ideas via the cloud.</p>
<p>This is only a must-have app for teams that have steroid-level creatives on staff. Otherwise, the whiteboard and OneNote apps should be good enough. But, if you want to empower your team with the best note-taking solution available on the Surface Hub, install Mural and see what they can do.</p>
<p>Microsoft Cortana <a href="http://www.pcmag.com/slideshow/story/344639/11-cortana-tricks-for-a-master-chief" type="external">Cortana Opens a New Window.</a>, Microsoft's voice assistant, can search the web and give you stock prices, weather reports, and flight information on the Surface Hub. It can also control the device to do things such as start and end meetings or ask when the next meeting is.</p>
<p>But Cortana is different on the Surface Hub than it is on a PC. For example: On a PC, Cortana can search your files and your email to provide you with personal information. Because the Surface Hub is a communal device, Cortana lacks the customized, personal interaction you'll find elsewhere. That's okay though; Cortana's still useful for launching apps and pulling in web-based data that you'd typically have to use a web browser to locate.</p>
<p>Microsoft Power BIFor the hardcore business user, <a href="http://www.pcmag.com/article2/0,2817,2494375,00.asp" type="external">Microsoft Power BI</a> <a type="external" href="" /> is a must-have on the Surface Hub. Although you'll have to get an account to download and use the app, once it's live, it makes data visualization absolutely stunning. For those who've never used the tool, it's a suite of business analytics tools that analyze corporate data in real time. Power BI's dashboards are designed to help you locate and organize data in visually appealing and easy to consume ways. Power BI integrates with <a href="https://powerbi.microsoft.com/en-us/#connect-wrapper" type="external">50 apps Opens a New Window.</a> and includes prebuilt dashboards that sort data intuitively.</p>
<p>With Power BI, you can slice and dice data in multiple ways to show it as, say, graphs and maps. You can display data in story format, moving viewers through charts and graphs via dashboard builds. For our review of the Surface Hub, we were given an interactive dashboard depicting unemployment numbers from the Truman administration through Obama's current administration. We were able to click into each president's term to see how unemployment trended during his tenure, narrow down and look at each specific year, click on red buttons that offer detailed information (such as "Recession, 1980" and a text-based explanation of why the recession occurred), and view the data in sequential order by hitting the forward arrow.</p>
<p>Crossy Road and NetflixIf you want to give your employees a chance to cut loose after hours, there's no better way to let off steam than by playing video games and watching movies on the Surface Hub's gorgeous screen. <a href="http://www.crossyroad.com/" type="external">Crossy Road Opens a New Window.</a> is an easy-to-play knockoff of Frogger. In Crossy Road, you control a chicken and try to get it to cross the road without getting hit by cars and trains or by falling into bodies of water. Users can tap the screen to control the chicken or they can use the wireless keyboard that comes with the Surface Hub. Either way, they'll have a blast trying to beat each other's high scores (we certainly did).</p>
<p>If you've got a less interactive office, you could always turn on Netflix after hours and binge-watch a few TV shows or movies. There isn't any unique functionality here; it's just Netflix on a giant screen. But it's something that your employees will enjoy, especially if you opted for the 84-inch, 4K Surface Hub.</p>
<p>This article <a href="http://www.pcmag.com/article/345829/microsoft-surface-hub-a-dream-setup-of-apps" 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 | company purchased microsoft surface hub opens new window youve tasked deciding applications download youre right place article details best apps come preinstalled surface hub apps youll need download windows store help ensure effective business collaboration opens new window productivity even fun continue reading regardless whether youve bought 8999 55inch full hd model 21999 84inch 4k model surface hub undoubtedly change way work opens new window way idea surface hub suggest read primer opens new window first youre familiar surface hub need direction apps download following apps perfect place start keep mind surface hub run microsoft windows 10 opens new window universal app cant run apps specific desktops tablets list available tools relatively small following apps opinion best available tools business users anyone wants make surface hub onestopshop team collaboration microsoft skype business surface hub primarily notetaking videoconferencing opens new window solution million different things device core designed let connect people ideas microsoft skype business opens new window app already installed device youll able meet 250 people extend screen two additional apps taking notes conducting demonstrations share documents instant messages ims youve got skype tricked surface hub teams email addresses added system surface hub users able schedule video calls way would schedule conference room walk right surface hub call anyone skype business account calling regular skype users bit pain skype business server needs able confederate skype consumer accounts set skype business meeting regular skype customer join meeting guest get rolling surface hub makes videoconferencing crisp clear adaptive advertisement thats surface hub two wideangle ie 100degree field view hd cameras fourelement microphone array passive infrared presence ambient light sensors know side surface hub youre presenting means remote viewers wont see nostrils armpits get close surface hub start writing drawing sensors force surface hub activate second distant camera surface hubs whiteboard app whiteboard app crown jewel surface hub already installed surface hub available surface hubs home screen whiteboard one mostused surface hub apps got infinite canvas lets scroll hearts content team conducts brainstorming sessions know need erase whiteboard gets crowded anymore also wont need snap photos whiteboard posterity surface hub lets email contents whiteboard directly interface png document one thing youll really love whiteboard app automatically launches whenever someone lifts one two digital ink pens sit along side surface hub need take notes quickly theres need go back desktop search app itll appear get ready start writing whiteboard also final destination need take screengrab anything surface hub take images apps alongside whiteboard drag whiteboard marking analysis close whiteboard take screengrab single fullscreen app dump image whiteboard app microsoft office 365 onedrive sharepointbecause surface hub designed communitybased tool built support file storage personal settings means want save files created edited surface hub session youll need log personal microsoft office 365 account every time use surface hub order save files microsoft onedrive opens new window microsoft sharepoint opens new window also obvious reasons activate access office 365 account surface hub cloudbased versions microsoft word excel powerpoint particularly awesome large dynamic screen primary workaround anyone frustrated surface hubs lack native storage standard office apps available surface hub want give team access files ability save files download office 365 app tell log personal accounts every time use surface hub three apps working concert surface hub teams access office collaboration apps email calendar apps cloudbased file sharing 1 tb cloudbased storage per user perfect saving abundant amount powerpoints excel opens new window spreadsheets microsoft onenote youre need powerful notetaking app whiteboard try using microsofts onenote digital notetaking tool onenote youll able share onenote notebooks remote team members colleagues front surface hub order simultaneously edit analyze content also share websites documents view surface hub onenote account later remote analysis features onenote whiteboard app doesnt check boxes let go todo lists pros cons lists plus add grid ruled lines customize formatting like would word document whiteboard meant quick easy brainstorm notetaking onenote built comprehensive thoughtful meeting minutes assignments mural windows even onenote isnt enough creative conscientious notetakers surface hubs mural app opens new window sure satisfy demand mural youll able place sticky notes infinite gridlined blank canvas adjust background color shift size specific images form multiple canvases within one canvas let remote team members vote ideas via cloud musthave app teams steroidlevel creatives staff otherwise whiteboard onenote apps good enough want empower team best notetaking solution available surface hub install mural see microsoft cortana cortana opens new window microsofts voice assistant search web give stock prices weather reports flight information surface hub also control device things start end meetings ask next meeting cortana different surface hub pc example pc cortana search files email provide personal information surface hub communal device cortana lacks customized personal interaction youll find elsewhere thats okay though cortanas still useful launching apps pulling webbased data youd typically use web browser locate microsoft power bifor hardcore business user microsoft power bi musthave surface hub although youll get account download use app live makes data visualization absolutely stunning whove never used tool suite business analytics tools analyze corporate data real time power bis dashboards designed help locate organize data visually appealing easy consume ways power bi integrates 50 apps opens new window includes prebuilt dashboards sort data intuitively power bi slice dice data multiple ways show say graphs maps display data story format moving viewers charts graphs via dashboard builds review surface hub given interactive dashboard depicting unemployment numbers truman administration obamas current administration able click presidents term see unemployment trended tenure narrow look specific year click red buttons offer detailed information recession 1980 textbased explanation recession occurred view data sequential order hitting forward arrow crossy road netflixif want give employees chance cut loose hours theres better way let steam playing video games watching movies surface hubs gorgeous screen crossy road opens new window easytoplay knockoff frogger crossy road control chicken try get cross road without getting hit cars trains falling bodies water users tap screen control chicken use wireless keyboard comes surface hub either way theyll blast trying beat others high scores certainly youve got less interactive office could always turn netflix hours bingewatch tv shows movies isnt unique functionality netflix giant screen something employees enjoy especially opted 84inch 4k surface hub article originally appeared opens new window pcmagcom opens new window | 1,035 |
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<p>Being out of the foreign tax-shelter loop isn't such a bad thing. Uncle Sam recently signed a new tax treaty with that Alpine nation that should help U.S. collectors crack down on tax-evading owners of foreign bank accounts.</p>
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<p>But there still are plenty of legal tax havens for law-abiding taxpayers. Even better, most regular Joe and Jane taxpayers can easily take advantage of them.</p>
<p>Gimme Shelter</p>
<p>If you own a home, your actual shelter is probably your best tax shelter. Your house's tax-cutting opportunities start as soon as you buy it and continue until you sell it.</p>
<p>You get deductions for all or part of your mortgage interest, points paid to get the loan, interest on certain home equity loans, and your annual property tax payments. These write-offs can help reduce your tax bill each filing season.</p>
<p>Then there is the profit on your home's sale. That's money the IRS can't touch.</p>
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<p>"The biggest thing in real estate that would apply to most people is the primary residence sale exclusion," says Mark Luscombe, principal federal tax analyst at CCH in Riverwoods, Ill., a provider of tax information and services.</p>
<p>Under this tax code provision, up to $250,000 in sale profit for a single taxpayer, twice that for a married couple filing a joint return, is not taxed. "If you sell before your gain gets to that point, you can avoid ever having to pay tax on the residence," says Luscombe.</p>
<p>The beauty of this home-related tax shelter is that it applies to every principal residence you ever own as long as you meet the IRS rules. The key requirement is that you live in the home two of the five years before you sell.</p>
<p>"There are instances where people will buy a fixer-upper and live there for two years while fixing it up and then sell it at a profit. And though a lot of that profit can be attributable to their sweat equity, they still qualify for home sale exclusion," says Bob D. Scharin, senior tax analyst from the Tax &amp; Accounting business of Thomson Reuters in New York City.</p>
<p>Investment Opportunities</p>
<p>Investment real estate also offers some tax-shelter opportunities.</p>
<p>"One thing with real estate that puts it in that tax category as a more conventional shelter is that you can make a small down payment on real estate yet base your depreciation deduction on the entire purchase price," says Scharin.</p>
<p>Along with the depreciation on the investment property, you also get mortgage interest and real estate tax deductions, as well as a write-off for upkeep and maintenance costs.advertisement</p>
<p>Of course, when you sell investment real estate, you will owe capital gains on the profit. But you might be able to delay that bill by taking advantage of another tax law.</p>
<p>Exchange Advantages</p>
<p>Internal Revenue Code Section 1031 offers you a chance to postpone paying taxes on investment property by swapping it for another. Also known as a like-kind exchange, you sell a property and then use those proceeds to purchase another like one.</p>
<p>"Instead of recognized gain on the sold property, you roll it into new property and essentially reduce your cost basis in the new property by that gain," says Dawn Greenberg, CPA and tax principal at Toms River, N.J.-based Cowan, Gunteski &amp; Co.</p>
<p>When you eventually sell the new property, you'll recognize the originally deferred gain plus any additional accrued since you purchased the replacement property. But if you don't need the proceeds and just want to get rid of the property, says Greenberg, a 1031 exchange could help postpone an investment tax bill. In effect, you get an interest-free loan from Uncle Sam in the amount you would have paid in taxes.</p>
<p>While like-kind exchanges are often used by real estate investors, the technique is available for any investment or business property. If you're interested in a 1031 exchange, consult an expert in the area. It can get complicated and there are strict rules, such as the requirement that any swap be made by a qualified intermediary rather than by the property owner. If you make a misstep in the exchange process, it could invalidate any tax benefits.</p>
<p>Municipal Bonds</p>
<p>If you prefer more traditional investments, there are some tax shelter opportunities there, too."If bonds fit into your financial plan, look at municipal bonds," says Luscombe. These instruments are issued primarily by state or local governments, or state-related organizations.</p>
<p>The tax benefit? Some states don't tax interest on bonds issued by their municipalities. As for the IRS, municipal bond income is not taxed at the federal level.</p>
<p>Business Tax Breaks</p>
<p>Business owners, including those who set up a sideline to supplement full-time wage income, can use several IRS-approved tax shelters.</p>
<p>Section 179 of the tax code allows you to deduct substantial costs of business property purchases in the tax year they are made. Without this provision, the costs of items such as furniture and other equipment special to your business would have to be recovered through depreciation over several years, says Scharin.</p>
<p>If you operate your business out of your home, you could be entitled to a home office deduction. With this tax break, you can convert some of the maintenance cost of your home to tax deductions.</p>
<p>"The insurance on your house or if you need a new roof, a percentage of these costs would be deductible," says Scharin. The amount is figured using the percentage of space that your home office represents.</p>
<p>A business owner also can hire the spouse and kids as long as they do real work for the company. "That gets additional income to them and provides deductions to the business," says Luscombe.</p>
<p>Workplace Benefits</p>
<p>You don't have to be an entrepreneur to shelter income from Uncle Sam.</p>
<p>Greenberg says employees should take advantage of workplace benefits. Flexible spending accounts, to help pay child care costs and out-of-pocket medical expenses, allow workers to contribute money to the accounts before payroll taxes are figured. "You never pay taxes on that money," says Greenberg.</p>
<p>That same pretax break is available for workplace 401(k) retirement plans.</p>
<p>Retirement Plans</p>
<p>Other outside-the-office retirement savings also can help you shelter income. Some traditional IRA owners might get an immediate tax deduction on their returns, along with a deferral of taxes on the IRA earnings.</p>
<p>A Roth IRA is great way for some folks to avoid tax. You don't get any deduction for Roth contributions, but when you eventually take money out of the account, it will be tax-free.</p>
<p>And entrepreneurs have a variety of retirement plans -- SEP and SIMPLE IRAs, Keoghs, Solo 401(k)s -- that can help reduce their taxable business income as well as help prepare for eventual life after work.</p>
<p>With each of these various tax shelters, from your home to investments to your job to retirement savings, the IRS offers ways to hang onto more of your money. And when the tax man says it's OK to keep money out of his hands, who's going to argue?</p> | true | 0 | foreign taxshelter loop isnt bad thing uncle sam recently signed new tax treaty alpine nation help us collectors crack taxevading owners foreign bank accounts continue reading still plenty legal tax havens lawabiding taxpayers even better regular joe jane taxpayers easily take advantage gim shelter home actual shelter probably best tax shelter houses taxcutting opportunities start soon buy continue sell get deductions part mortgage interest points paid get loan interest certain home equity loans annual property tax payments writeoffs help reduce tax bill filing season profit homes sale thats money irs cant touch advertisement biggest thing real estate would apply people primary residence sale exclusion says mark luscombe principal federal tax analyst cch riverwoods ill provider tax information services tax code provision 250000 sale profit single taxpayer twice married couple filing joint return taxed sell gain gets point avoid ever pay tax residence says luscombe beauty homerelated tax shelter applies every principal residence ever long meet irs rules key requirement live home two five years sell instances people buy fixerupper live two years fixing sell profit though lot profit attributable sweat equity still qualify home sale exclusion says bob scharin senior tax analyst tax amp accounting business thomson reuters new york city investment opportunities investment real estate also offers taxshelter opportunities one thing real estate puts tax category conventional shelter make small payment real estate yet base depreciation deduction entire purchase price says scharin along depreciation investment property also get mortgage interest real estate tax deductions well writeoff upkeep maintenance costsadvertisement course sell investment real estate owe capital gains profit might able delay bill taking advantage another tax law exchange advantages internal revenue code section 1031 offers chance postpone paying taxes investment property swapping another also known likekind exchange sell property use proceeds purchase another like one instead recognized gain sold property roll new property essentially reduce cost basis new property gain says dawn greenberg cpa tax principal toms river njbased cowan gunteski amp co eventually sell new property youll recognize originally deferred gain plus additional accrued since purchased replacement property dont need proceeds want get rid property says greenberg 1031 exchange could help postpone investment tax bill effect get interestfree loan uncle sam amount would paid taxes likekind exchanges often used real estate investors technique available investment business property youre interested 1031 exchange consult expert area get complicated strict rules requirement swap made qualified intermediary rather property owner make misstep exchange process could invalidate tax benefits municipal bonds prefer traditional investments tax shelter opportunities tooif bonds fit financial plan look municipal bonds says luscombe instruments issued primarily state local governments staterelated organizations tax benefit states dont tax interest bonds issued municipalities irs municipal bond income taxed federal level business tax breaks business owners including set sideline supplement fulltime wage income use several irsapproved tax shelters section 179 tax code allows deduct substantial costs business property purchases tax year made without provision costs items furniture equipment special business would recovered depreciation several years says scharin operate business home could entitled home office deduction tax break convert maintenance cost home tax deductions insurance house need new roof percentage costs would deductible says scharin amount figured using percentage space home office represents business owner also hire spouse kids long real work company gets additional income provides deductions business says luscombe workplace benefits dont entrepreneur shelter income uncle sam greenberg says employees take advantage workplace benefits flexible spending accounts help pay child care costs outofpocket medical expenses allow workers contribute money accounts payroll taxes figured never pay taxes money says greenberg pretax break available workplace 401k retirement plans retirement plans outsidetheoffice retirement savings also help shelter income traditional ira owners might get immediate tax deduction returns along deferral taxes ira earnings roth ira great way folks avoid tax dont get deduction roth contributions eventually take money account taxfree entrepreneurs variety retirement plans sep simple iras keoghs solo 401ks help reduce taxable business income well help prepare eventual life work various tax shelters home investments job retirement savings irs offers ways hang onto money tax man says ok keep money hands whos going argue | 679 |
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<p>For many people, simply walking into a room full of strangers can be terrifying—let alone one packed with potentially valuable work contacts … and maybe even a future boss.</p>
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<p>But since savvy networking can be one of the best moves you can make for your career, it’s time to learn how to fearlessly bust through the doors of any work event—and own it.</p>
<p>That’s why we challenged three networking veterans to divulge the clever opening lines that will enable you to strike up a conversation with just about anyone, whether you’re mingling with hundreds of people at a convention center or a more intimate group at an after-work mixer.</p>
<p>Conversation Starter #1: “I just tried a slider from the buffet table, and I think I’m going to grab another. Care to join me?”</p>
<p>Hey, a networker’s gotta eat, right? And if half of the room is as starving as you are after a long day at the office, the action is likely happening over by the food, says Barbara Safani of Career Solvers and the author of “Happy About My Job Search.”</p>
<p>Conversation Starter #2: “I was just on LinkedIn and saw that we went to the same college.” Or … “I saw on LinkedIn that you also worked with so-and-so!”</p>
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<p>The most effective opening line is something that’s personal to the person, says LinkedIn’s career expert Nicole Williams, who’s also the author of “Girl on Top: Your Guide to Turning Dating Rules into Career Success.”</p>
<p>And while digging up info on other guests was hard before the advent of LinkedIn, Twitter and other social-networking sites, it’s now easy to find an opener that connects you to a fellow networker. Just ask the event organizer for a list of attendees a few days beforehand, and then do a quick internet search.</p>
<p>Conversation Starter #3: “How long have you been a member of this organization?”</p>
<p>Sometimes less really is more, says Kathleen Brady, a career coach and the author of “Get a Job! 10 Steps to Career Success.” This simple, open-ended question can work wonders to engage that shy someone who, by virtue of being at the same networking event, is there to meet people just like you. But try not to fire off too many questions at once—you don’t want your conversation to suddenly feel like an interrogation.</p>
<p>Conversation Starter #4: “I read your book!” Or … “I was really impressed by the speech you gave at an event last year.”</p>
<p>According to Williams, there’s no greater compliment than to play up your knowledge of someone and their work. They’re sure to be flattered and eager to hear your opinion of their writing or other accomplishment—and you can even use their talking points as a kicking-off point for an ice-breaker.</p>
<p>RELATED: <a href="http://www.learnvest.com/2013/07/10-questions-for-a-career-coach/" type="external">&#160;10 Questions For a … Career Coach Opens a New Window.</a></p>
<p>Conversation Starter #5: “What do you love about your job?”</p>
<p>This is another simple one-liner—but it’s one of Williams’ favorites. “Whenever someone gets the opportunity to talk about themselves, they not only love it,” she says, “but they also feel closer to you by virtue of your hearing their story.” Bottom line: “The more they’re encouraged to talk about themselves,” she adds, “the more likely they’ll walk away going, ‘I really like that person!’ ”</p>
<p>Conversation Starter #6: “I’ve worked here for several months, but I’ve never been to the penthouse floor before. Great views!”</p>
<p>According to Brady, disclosing something about yourself from the outset helps to establish vulnerability and approachability, and it will encourage others to do the same. But be careful not to get too personal—like sharing your real feelings about upper management—because the point isn’t to leave your listener speechless.</p>
<p>Conversation Starter #7: “Are you from [insert locale]?”</p>
<p>This one-liner establishes both a personal and professional connection, says Williams. It’s professional in that your shared industry brought you to the same city or town, and then you can compare notes on how you each arrived at point B from point A in your career.</p>
<p>And it’s personal because you’re attaching something emotional to the other person’s story by finding out the individual’s hometown and what exactly pulled them to where they are now—effectively helping you reach the next level of conversation.</p>
<p>RELATED:&#160; <a href="http://www.learnvest.com/2013/03/8-mistakes-not-to-make-on-linkedin/" type="external">8 Mistakes Not to Make on LinkedIn Opens a New Window.</a></p>
<p>Conversation Starter #8: “Did you see all the wacky stuff they’re giving away at the sponsor tables?”</p>
<p>Do you often find yourself at conferences and expos where overeager organizers have plastered their faces, logos and catchphrases on everything from toothbrushes to fly swatters? Next time, hold up that glow-in-the-dark foam finger for a shared chuckle with the closest attendee, and then lead the way to the table with the best—and most usable—swag.</p>
<p>Simple Steps to Seal the Networking Deal</p>
<p>Once you’ve got the conversation going, says Brady, keep the person engaged by playing equal parts listener and engager—and don’t linger too long with any one fellow networker.</p>
<p>“The goal is to meet as many people as possible, so you have to be tactful about when to break away,” says Williams. “Try excusing yourself to make a quick call. Or pull the person standing next to you into the conversation, so you can make another connection, and then move on as they become immersed in a topic.”</p>
<p>Of course, none of these killer lines are worth using if you forget the most vital step of networking: the follow-up.</p>
<p>Instead of exchanging business cards that can be misplaced, “I use an app to request a connection right then and there on LinkedIn,” says Williams. “This way, I can send a note the next day that says, ‘I enjoyed meeting you last night, and this was a great topic.’ And they can then look into you further if they want.”</p>
<p>But the real benefit of using an electronic follow-up, adds Williams, is that the next time you see an article about something you talked about—be it business-related or something tied to that Thailand trip the other person was taking—you can zap it over to keep the connection going.</p>
<p>Read More from LearnVest:</p>
<p><a href="http://www.learnvest.com/2013/10/accidental-networking-how-to-use-luck-to-land-yourself-a-new-gig/" type="external">Accidental Networking: How to Use Luck to Land Yourself a New Gig Opens a New Window.</a></p>
<p><a href="http://www.learnvest.com/2014/02/10-apps-that-could-supercharge-your-career/" type="external">10 Apps That Could Supercharge Your Career Opens a New Window.</a></p>
<p><a href="http://www.learnvest.com/2014/04/fearless-job-hunting/" type="external">8 Traits You’ll Find in Every Fearless Job Hunter Opens a New Window.</a></p> | true | 0 | many people simply walking room full strangers terrifyinglet alone one packed potentially valuable work contacts maybe even future boss continue reading since savvy networking one best moves make career time learn fearlessly bust doors work eventand thats challenged three networking veterans divulge clever opening lines enable strike conversation anyone whether youre mingling hundreds people convention center intimate group afterwork mixer conversation starter 1 tried slider buffet table think im going grab another care join hey networkers got ta eat right half room starving long day office action likely happening food says barbara safani career solvers author happy job search conversation starter 2 linkedin saw went college saw linkedin also worked soandso advertisement effective opening line something thats personal person says linkedins career expert nicole williams whos also author girl top guide turning dating rules career success digging info guests hard advent linkedin twitter socialnetworking sites easy find opener connects fellow networker ask event organizer list attendees days beforehand quick internet search conversation starter 3 long member organization sometimes less really says kathleen brady career coach author get job 10 steps career success simple openended question work wonders engage shy someone virtue networking event meet people like try fire many questions onceyou dont want conversation suddenly feel like interrogation conversation starter 4 read book really impressed speech gave event last year according williams theres greater compliment play knowledge someone work theyre sure flattered eager hear opinion writing accomplishmentand even use talking points kickingoff point icebreaker related 16010 questions career coach opens new window conversation starter 5 love job another simple onelinerbut one williams favorites whenever someone gets opportunity talk love says also feel closer virtue hearing story bottom line theyre encouraged talk adds likely theyll walk away going really like person conversation starter 6 ive worked several months ive never penthouse floor great views according brady disclosing something outset helps establish vulnerability approachability encourage others careful get personallike sharing real feelings upper managementbecause point isnt leave listener speechless conversation starter 7 insert locale oneliner establishes personal professional connection says williams professional shared industry brought city town compare notes arrived point b point career personal youre attaching something emotional persons story finding individuals hometown exactly pulled noweffectively helping reach next level conversation related160 8 mistakes make linkedin opens new window conversation starter 8 see wacky stuff theyre giving away sponsor tables often find conferences expos overeager organizers plastered faces logos catchphrases everything toothbrushes fly swatters next time hold glowinthedark foam finger shared chuckle closest attendee lead way table bestand usableswag simple steps seal networking deal youve got conversation going says brady keep person engaged playing equal parts listener engagerand dont linger long one fellow networker goal meet many people possible tactful break away says williams try excusing make quick call pull person standing next conversation make another connection move become immersed topic course none killer lines worth using forget vital step networking followup instead exchanging business cards misplaced use app request connection right linkedin says williams way send note next day says enjoyed meeting last night great topic look want real benefit using electronic followup adds williams next time see article something talked aboutbe businessrelated something tied thailand trip person takingyou zap keep connection going read learnvest accidental networking use luck land new gig opens new window 10 apps could supercharge career opens new window 8 traits youll find every fearless job hunter opens new window | 564 |
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<p>Many bond-fund investors are anxious about the effects on their holdings as the Federal Reserve boosts short-term interest rates, a process the central bank may start this month.</p>
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<p>For good reason: When rates in the marketplace rise, the prices of older bonds with lower rates fall.</p>
<p>But over a period of years, bond-fund investors will do better in an environment of rising interest rates than in one in which rates stay at today's unusually low levels.</p>
<p>That because as the bonds in funds' portfolios mature, managers will reinvest in newer issues with higher interest rates, and investors will benefit from increased income. In addition, the interest payments from the bonds in the portfolio will be reinvested at higher rates.</p>
<p>"An initial rate increase could cause pain in the short term," says Joshua Barrickman, head of fixed-income indexing, Americas, at Vanguard Group. "But over the long term, it will act to your benefit."</p>
<p>At The Wall Street Journal's request, Vanguard looked at the math for a hypothetical investor in intermediate-term bond funds. These are one of the most popular types of bond funds, generally investing in investment-grade bonds which mature within four to 10 years. For simplicity, the Malvern, Pa., fund company assumed the Fed raises short-term interest rates by 0.25 percentage point in January, and then makes a similar-sized increase every other quarter through July 2019, for a total climb of two percentage points spread over eight increases.</p>
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<p>Under that scenario, a typical intermediate-term bond fund would lose a modest 0.15% next year but generate positive yearly returns thereafter, Vanguard found. The figures are total returns including price change and income.</p>
<p>Over the first several years, investors would earn less than if rates remained at current levels. But starting in the second quarter of 2023--more than three years after the end of the rate increases--investors in such a fund would be ahead of where they would have been had there been no rate increase, Vanguard found.</p>
<p>If rates were to climb more quickly, the funds could suffer steeper initial losses. But that's unlikely as the Fed has repeatedly indicated that rate increases will be gradual.</p>
<p>"Intermediate-term bond-fund investors may feel a little sting, but it's certainly not going to be a bleed-out," says Marilyn Cohen, chief executive at Envision Capital Management Inc., a registered investment adviser that specializes in individual bonds.</p>
<p>She notes that the Fed has telegraphed a rate increase so well that few investors should be surprised. If investors were taken by surprise, they might be more likely to pull large sums out of bond funds, which could have the effect of exacerbating bond price declines.</p>
<p>Investors in bond funds are generally very long-term investors who hold the funds for their ability to absorb volatility and/or for the income they throw off, says Mr. Barrickman of Vanguard. Vanguard investors didn't do any meaningful selling in prior periods of rising rates, the firm says, and no panicky selling is expected this time.</p>
<p>The Fed is well aware of the importance of setting investors' expectations, says Jeff Tjornehoj, head of Americas research at Thomson Reuters Lipper. The central bank was clear about its intentions when it raised interest rates "pretty aggressively" from May 2004 through July 2006, and there were "fairly steady, if not heavy, inflows" into taxable bond funds, he says. But in 1994, when the Fed didn't communicate it was interested in raising rates and did so quickly, investors pulled $33.3 billion overall from taxable bond funds, Mr. Tjornehoj says.</p>
<p>"That's the period the Fed does not want to relive," he says.</p>
<p>It's impossible to know exactly how various types of bonds will perform when the Fed raises its target for short-term rates. One question is whether long-term rates follow short-term rates upward. While the Fed controls short-term rates, supply and demand in the market determine long-term rates.</p>
<p>Bonds of varying credit quality also may perform differently.</p>
<p>"To predict how these bond funds will react is really a difficult game to play," says Sumit Desai, senior fixed-income analyst at Morningstar Inc. "It's important for advisers and individual investors to at least understand that there's a little bit of uncertainty within the space."</p>
<p>"Whether investors believe the Fed is acting too quickly, too slowly, or perhaps not enough can make all the difference," Eric Jacobson, a senior analyst at Morningstar, wrote recently. Other factors at play today include "a relatively weak global economic outlook and strong overseas demand for long-term Treasurys," he said. "That makes it extra tricky to predict how funds will fare when the Fed chooses to act."</p>
<p>Another factor to consider: Many bond-fund managers have bought shorter-term bonds and taken other steps to make their portfolios less sensitive to an interest-rate increase than they might have been otherwise, says Lee Partridge, chief investment officer at Salient, an asset manager based in Houston.</p>
<p>Investors should keep in mind that the Fed may not raise rates at all this year; it has surprised pundits before.</p>
<p>Write to Daisy Maxey at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>December 02, 2015 07:00 ET (12:00 GMT)</p>
<p>Copyright (c) 2015 Dow Jones &amp; Company, Inc.</p> | true | 0 | many bondfund investors anxious effects holdings federal reserve boosts shortterm interest rates process central bank may start month continue reading good reason rates marketplace rise prices older bonds lower rates fall period years bondfund investors better environment rising interest rates one rates stay todays unusually low levels bonds funds portfolios mature managers reinvest newer issues higher interest rates investors benefit increased income addition interest payments bonds portfolio reinvested higher rates initial rate increase could cause pain short term says joshua barrickman head fixedincome indexing americas vanguard group long term act benefit wall street journals request vanguard looked math hypothetical investor intermediateterm bond funds one popular types bond funds generally investing investmentgrade bonds mature within four 10 years simplicity malvern pa fund company assumed fed raises shortterm interest rates 025 percentage point january makes similarsized increase every quarter july 2019 total climb two percentage points spread eight increases advertisement scenario typical intermediateterm bond fund would lose modest 015 next year generate positive yearly returns thereafter vanguard found figures total returns including price change income first several years investors would earn less rates remained current levels starting second quarter 2023more three years end rate increasesinvestors fund would ahead would rate increase vanguard found rates climb quickly funds could suffer steeper initial losses thats unlikely fed repeatedly indicated rate increases gradual intermediateterm bondfund investors may feel little sting certainly going bleedout says marilyn cohen chief executive envision capital management inc registered investment adviser specializes individual bonds notes fed telegraphed rate increase well investors surprised investors taken surprise might likely pull large sums bond funds could effect exacerbating bond price declines investors bond funds generally longterm investors hold funds ability absorb volatility andor income throw says mr barrickman vanguard vanguard investors didnt meaningful selling prior periods rising rates firm says panicky selling expected time fed well aware importance setting investors expectations says jeff tjornehoj head americas research thomson reuters lipper central bank clear intentions raised interest rates pretty aggressively may 2004 july 2006 fairly steady heavy inflows taxable bond funds says 1994 fed didnt communicate interested raising rates quickly investors pulled 333 billion overall taxable bond funds mr tjornehoj says thats period fed want relive says impossible know exactly various types bonds perform fed raises target shortterm rates one question whether longterm rates follow shortterm rates upward fed controls shortterm rates supply demand market determine longterm rates bonds varying credit quality also may perform differently predict bond funds react really difficult game play says sumit desai senior fixedincome analyst morningstar inc important advisers individual investors least understand theres little bit uncertainty within space whether investors believe fed acting quickly slowly perhaps enough make difference eric jacobson senior analyst morningstar wrote recently factors play today include relatively weak global economic outlook strong overseas demand longterm treasurys said makes extra tricky predict funds fare fed chooses act another factor consider many bondfund managers bought shorterterm bonds taken steps make portfolios less sensitive interestrate increase might otherwise says lee partridge chief investment officer salient asset manager based houston investors keep mind fed may raise rates year surprised pundits write daisy maxey daisymaxeywsjcom end dow jones newswires december 02 2015 0700 et 1200 gmt copyright c 2015 dow jones amp company inc | 534 |
<p>Cleaning products that may contain ammonia are being recalled because they are mislabeled and may pose a chemical hazard. Other recalled products include potentially defective fitness equipment and hunter's tree stands.</p>
<p>Here's a more detailed look:</p>
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<p>CLEANING PRODUCTS</p>
<p>DETAILS: Mean Green cleaning products which came in white plastic spray bottles and white or green plastic containers. The words "Mean Green Super Strength Cleaner &amp; Degreaser" or "Mean Green Industrial Strength Cleaner &amp; Degreaser" are on a label on the front and the UPC number is on the back. The recall involves products with date codes 4225, 4226, 4227, 4228, 4229 and 4230. The date code is printed on the back of the bottle near the QR code. The recalled units include: Mean Green Super Strength Spray 20-ounce with UPC 720547001208, Mean Green Super Strength Spray 40-ounce with 720547001406, Mean Green Super Strength 128-ounce with UPC 720547001017, and Mean Green Industrial Strength 128-ounce with UPC 720547001024. They were sold at Dollar General, Dollar Tree, Family Dollar, Fred's, Walmart and small retailers nationwide from August 2014 to November 2014.</p>
<p>WHY: The products are mislabeled and may contain ammonia, despite a label saying otherwise. This can pose a chemical hazard to consumers. If ammonia is mixed with bleach or other household chemicals, irritating or toxic gases could be produced.</p>
<p>INCIDENTS: None reported.</p>
<p>HOW MANY: About 83,800.</p>
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<p>FOR MORE: Call CR Brands at 866-447-3369 from 9 a.m. to 4 p.m. ET Mondays through Fridays or visit www.crbrandsinc.com and click on Safety Letters for more information.</p>
<p>LA-Z-BOY CONTROL WANDS</p>
<p>DETAILS: La-Z-Boy Control Wands sold with Silver Luxury Lift Chairs. The recalled control wands were sold with the La-Z-Boy Silver Luxury Lift model chairs only. The rectangular-shaped black plastic wands have a large round circle on the top of the wand with two circle-shaped graphics that read "LIFT" and "RECLINE" and the La-Z-Boy logo printed in white lettering at the bottom of the wand. The words "La-Z-Boy," ''REV: 0" and S/N number 37205143800005310 are printed on a label on the back of the wand. They were sold at La-Z-Boy Furniture Galleries stores and independent furniture stores nationwide from August 2014 through November 2014.</p>
<p>WHY: The wand that controls the chair's movements can overheat, posing a burn hazard.</p>
<p>INCIDENTS: Three reports of the control wands on floor samples becoming warm. No injuries have been reported.</p>
<p>HOW MANY: About 4,000.</p>
<p>FOR MORE: Call La-Z-Boy at 855-592-9087 from 9 a.m. to 5 p.m. ET Monday through Friday or visit www.la-z-boy.com and click on the Recall Alert button for more information.</p>
<p>FITNESS MACHINES</p>
<p>DETAILS: Matrix Fitness Varsity series strength training machines. This recall involves five models of the Matrix Fitness series strength training machines with chrome frames, stacked weights, overhead pulleys, and some with black or blue vinyl seats and thigh supports. Models include VY-6021 Lat Pulldown, VY-6042 Bicep/Triceps Press, VY-6046 Lat Pulldown/Low Row, VY-6099 Total Body Trainer, and the J7021 Special Order Lat Pull. "Matrix" and the model number are printed on a white sticker at the base of the machines. They are used in commercial fitness facilities such as health clubs, hotels, apartment complexes and rehabilitation centers, schools and municipal facilities. They were sold at Johnson Health Tech North America and its fitness equipment dealers nationwide from July 2013 through October 2014.</p>
<p>WHY: The handle attachment on the strength training machines can detach during use and hit the user with force and/or cause the user to lose balance and fall. This poses a risk of impact injury, laceration and fall hazards.</p>
<p>INCIDENTS: Two injuries, including a man who was hit and cut on the head when the handle detached and another man who fell when the handle detached on his machine.</p>
<p>HOW MANY: About 140.</p>
<p>FOR MORE: Call Johnson Health Tech North America at 866-218-3674 from 8 a.m. to 5 p.m. CT Monday through Friday, or visit www.matrixfitness.com and click on Safety Notice at the bottom of the page for more information.</p>
<p>HUNTERS' TREE STANDS</p>
<p>DETAILS: Ameristep Hyde Cliff Hanger and Sky Walker Tree Stands. This recall involves two 2014 models of hang-on tree stands used by hunters. They include the Ameristep Hyde Cliff Hanger with model number 2RX1H008C and date code JH-2014-3-6 and the Ameristep Hyde Sky Walker with model number 2RX1H009C and date code JH-2014-3-6. The date code is stamped on the back of the tree stand's aluminum seat frame. The model number is printed on the packaging and in the instruction manual. "Hyde" is printed in red on the vertical aluminum bar between the seat and the foot platform. They were sold at Bass Pro Shops and other sporting goods stores nationwide from July 2014 through November 2014.</p>
<p>WHY: The cast aluminum platform can break, causing the user to fall to the ground and suffer serious injuries.</p>
<p>INCIDENTS: Six reports of the tree stand's aluminum platform breaking. No injuries have been reported.</p>
<p>HOW MANY: About 1,000.</p>
<p>FOR MORE: Call Primal Vantage at 866-972-6168 between 9:30 a.m. and 4:30 p.m. CT Monday through Friday, or visit www.primalvantage.com and click on "For Hyde Recall Click Here" on the home page or go to the Customer Service tab for more information.</p> | true | 0 | cleaning products may contain ammonia recalled mislabeled may pose chemical hazard recalled products include potentially defective fitness equipment hunters tree stands heres detailed look continue reading cleaning products details mean green cleaning products came white plastic spray bottles white green plastic containers words mean green super strength cleaner amp degreaser mean green industrial strength cleaner amp degreaser label front upc number back recall involves products date codes 4225 4226 4227 4228 4229 4230 date code printed back bottle near qr code recalled units include mean green super strength spray 20ounce upc 720547001208 mean green super strength spray 40ounce 720547001406 mean green super strength 128ounce upc 720547001017 mean green industrial strength 128ounce upc 720547001024 sold dollar general dollar tree family dollar freds walmart small retailers nationwide august 2014 november 2014 products mislabeled may contain ammonia despite label saying otherwise pose chemical hazard consumers ammonia mixed bleach household chemicals irritating toxic gases could produced incidents none reported many 83800 advertisement call cr brands 8664473369 9 4 pm et mondays fridays visit wwwcrbrandsinccom click safety letters information lazboy control wands details lazboy control wands sold silver luxury lift chairs recalled control wands sold lazboy silver luxury lift model chairs rectangularshaped black plastic wands large round circle top wand two circleshaped graphics read lift recline lazboy logo printed white lettering bottom wand words lazboy rev 0 sn number 37205143800005310 printed label back wand sold lazboy furniture galleries stores independent furniture stores nationwide august 2014 november 2014 wand controls chairs movements overheat posing burn hazard incidents three reports control wands floor samples becoming warm injuries reported many 4000 call lazboy 8555929087 9 5 pm et monday friday visit wwwlazboycom click recall alert button information fitness machines details matrix fitness varsity series strength training machines recall involves five models matrix fitness series strength training machines chrome frames stacked weights overhead pulleys black blue vinyl seats thigh supports models include vy6021 lat pulldown vy6042 biceptriceps press vy6046 lat pulldownlow row vy6099 total body trainer j7021 special order lat pull matrix model number printed white sticker base machines used commercial fitness facilities health clubs hotels apartment complexes rehabilitation centers schools municipal facilities sold johnson health tech north america fitness equipment dealers nationwide july 2013 october 2014 handle attachment strength training machines detach use hit user force andor cause user lose balance fall poses risk impact injury laceration fall hazards incidents two injuries including man hit cut head handle detached another man fell handle detached machine many 140 call johnson health tech north america 8662183674 8 5 pm ct monday friday visit wwwmatrixfitnesscom click safety notice bottom page information hunters tree stands details ameristep hyde cliff hanger sky walker tree stands recall involves two 2014 models hangon tree stands used hunters include ameristep hyde cliff hanger model number 2rx1h008c date code jh201436 ameristep hyde sky walker model number 2rx1h009c date code jh201436 date code stamped back tree stands aluminum seat frame model number printed packaging instruction manual hyde printed red vertical aluminum bar seat foot platform sold bass pro shops sporting goods stores nationwide july 2014 november 2014 cast aluminum platform break causing user fall ground suffer serious injuries incidents six reports tree stands aluminum platform breaking injuries reported many 1000 call primal vantage 8669726168 930 430 pm ct monday friday visit wwwprimalvantagecom click hyde recall click home page go customer service tab information | 555 |
<p>While President Obama and his aides insist that Muslim extremists have nothing to do with Islam the religion, other world leaders are leaving that approach behind.</p>
<p>British Home Secretary <a href="/topics/theresa-may/" type="external">Theresa May</a> on Monday announced a get-tough policy that includes a comprehensive strategy to combat what she called “Islamist extremists,” a phrase the Obama administration officials have repeatedly refused to use.</p>
<p><a href="/topics/theresa-may/" type="external">Ms. May</a> said the new counter-extremism measures include the power to close sites “that are owned or occupied by extremists or are used to host extremist meetings or speakers.” It was widely interpreted in Britain to mean closing Islamic centers and mosques that foment intolerance and violence.</p>
<p><a href="/news/2015/mar/25/afghanistans-ghani-islams-leaders-must-speak-out-t/" type="external">SEE ALSO: Afghanistan’s Ghani: Islam’s leaders must speak out on terror threat</a></p>
<p>She also announced new scrutiny of religious figures trying to enter Britain and a requirement that they speak English when speaking to followers. The policies would take effect if a new <a href="/topics/conservative-government/" type="external">Conservative government</a> is elected in <a href="/topics/theresa-may/" type="external">May</a>.</p>
<p>Tunisia, site of two horrendous terror attacks in recent months, has been closing mosques since last summer. This week, the North African country, seen as one of the few success stories of the so-called “Arab Spring,” issued a report identifying scores of additional mosques as catering to Islamic extremists.</p>
<p>And in France, Prime Minister Manuel Valls told The Wall Street Journal in late February, “France has been struck very much at its heart by terrorism — jihadist terrorism and radical Islamism, because let us call things like they are.”</p>
<p>France has enacted tougher and more intrusive counterterrorism laws in the wake of the Jan. 7 Charlie Hebdo massacre carried out by two Islamists against a satirical magazine that had lampooned Islam.</p>
<p>In Egypt, President Abdel Fattah el-Sisi on Sunday expanded a campaign to forcefully urge his country’s Muslim leaders to purge an ideology of violence from its ranks. The president, a former head of Egypt’s military forces, does not hesitate to say the religion of Islam has an extremist problem.</p>
<p>Even Afghanistan President Ashraf Ghani, addressing a joint session of Congress Wednesday at the end of a four-day Washington visit, said leaders in Muslim-majority countries must do more publicly to condemn terror movements such as the Islamic State, even as Mr. Ghani denied jihadi terror groups were a true reflection of Islam as a faith.</p>
<p>For public officials and Islamic leaders in Muslim-majority countries, “silence is not acceptable,” Mr. Ghani said.</p>
<p>The United States is home to a relatively small, but growing, Muslim population of 5 million to 8 million people, or about 2 percent, compared to 4 percent in Britain and France’s 8 percent. But the U.S. too has witnessed the kind of incidents seen in Europe. American Muslim residents have traveled to Syria to try to join the ultraviolent Islamic State terror army. Authorities have stopped a number of homegrown terror plots. Some, such as the Fort Hood massacre and the first attack on the World Trade Center, were carried out by self-proclaimed jihadis in this country.</p>
<p>Soeren Kern, an analyst at the Gatestone Institute, which tracks radical Islam, said domestic politics are at work in Britain and France just as much as security concerns. Britain has general elections set for early <a href="/topics/theresa-may/" type="external">May</a>.</p>
<p>“The flurry of counterterrorism activity in recent months is an attempt by the <a href="/topics/conservative-government/" type="external">Conservative government</a> to stanch the flow of votes to right-wing parties such as the United Kingdom Independence Party, which has long warned of the danger posed by radical Islam, and which is now the third-most-popular political party in Britain,” Mr. Kern said.</p>
<p>In France, presidential elections are two years away, but the security issue is already playing into the jockeying for advantage.</p>
<p>“In the wake of the jihadist attacks in Paris in January, we can expect all presidential candidates to take tough positions against radical Islam and Islamic terrorism as the election draws near,” Mr. Kern said.</p>
<p>Focused on Islam</p>
<p>It was the Theresa May speech on Monday that will perhaps usher in a new era in Britain of directly combating homegrown extremism. And while she spoke of all types, her focus was clearly on Islam, whose radical members seem to be on the march in the U.K.</p>
<p><a href="/topics/theresa-may/" type="external">Ms. May</a> acknowledged that unauthorized courts that follow harsh Shariah law have been springing up outside the British court system and making rulings, some of them particularly anti-woman.</p>
<p>“There is increasing evidence that a small but significant number of people living in Britain — almost all of whom are British citizens — reject our values,” she said. “We have seen the Trojan Horse plot to take over state schools in Birmingham. Some concerns about religious supplementary schools. Widespread allegations of corruption, cronyism, extremism, homophobia and anti-Semitism in Tower Hamlets. Hate speakers invited to speak at British colleges and universities. Segregation by gender allowed at universities and even endorsed by Universities UK. Charities and the generosity of the giving public abused by extremists. Examples of Shariah law being used to discriminate against women. Thousands of ‘honor’ crimes committed every year. And hundreds of British citizens who have traveled to fight in Syria and Iraq.”</p>
<p>The “Trojan Horse” scandal, uncovered by a special government investigation last year, involved a plot by Muslim faculty to turn Birmingham public schools into essentially Islamic institutions. Tower Hamlets is a predominantly Muslim neighborhood in East London.</p>
<p>“Islamist extremists believe in a clash of civilizations,” <a href="/topics/theresa-may/" type="external">Ms. May</a> said. “They promote a fundamental incompatibility between Islamic and Western values, an inevitable divide between ‘them and us.’ They demand a caliphate, or a new Islamic state, governed by a harsh interpretation of Sharia law. They utterly reject British and Western values, including democracy, the rule of law and equality between citizens, regardless of their gender, ethnicity, religion or sexuality. They believe that it’s impossible to be a good Muslim and a good British citizen.”</p>
<p>In defending the <a href="/topics/conservative-government/" type="external">conservative government</a>’s decision to call out “Islamist extremists,” <a href="/topics/theresa-may/" type="external">Ms. May</a> said:</p>
<p>“I know there are some people who disagree with me. They say what I describe as Islamist extremism is simply social conservatism. But if anybody else discriminated against women, denounced people on the basis of their religious beliefs, rejected the democratic process, attacked people on the basis of their sexuality or gave a nod and a wink in favor of violence and terrorism, we wouldn’t hesitate to challenge them or — if the law was broken — call for their prosecution and punishment.”</p>
<p>In Tunisia, the Ministry of Religious Affairs disclosed this month that 149 mosques are under the control of radical Salafists, a hard-line version of Islam, reported the Tunis Times. The Salafists took over scores of mosques in 2011, evicting more moderate imams, while other militants set up or controlled additional places of worship.</p>
<p>Since the fall of Tunisian strongman Zine El Abidine Ben Ali, whose regime exerted control on all mosques, “over 1,000 have fallen into the hands of radicals,” said a Ministry of Interior spokesman.</p>
<p>Last July, the <a href="/topics/conservative-government/" type="external">government</a> began closing scores of mosques tied to militants, including al Qaeda, in the aftermath of an extremist attack that killed 14 soldiers near the Algerian border.</p>
<p>Amid the mosque crackdown, the country suffered one of its worst terrorists attacks on March 18, when gunmen trained by the Islamic State in Libya opened fire inside the Bardo museum, killing 24 people, 20 of them foreign tourists.</p>
<p>In January, Egypt’s President el-Sisi delivered what could turn out to be a landmark address on an Islamic reformation.</p>
<p>He went to the heart of Sunni Islam, the Al-Azhar University in Cairo, and spoke directly to senior scholars and imams.</p>
<p>“I am addressing the religious scholars and clerics. We must take a long, hard look at the current situation,” he said. “It is inconceivable that the ideology we sanctify should make our entire nation a source of concern, danger, killing and destruction all over the world.”</p>
<p>CIA Director John Brennan is the most recent senior Obama official to reject the use of the phrase “Islamic extremists.”</p>
<p>At a forum at the Council on Foreign Relations on March 13, he said he was “amused” by the intense focus on what label President Obama and his aides used. Calling the terrorists “Islamic,” Mr. Brennan argued, plays into the enemy’s hands.</p>
<p>Terrorism, he said, “is totally inconsistent with what the overwhelming majority of Muslims throughout the world [believe],” he said. “And so by ascribing it as, you know, Muslim terrorism or Islamic extremism, I think it really does give them the type of Islamic legitimacy that they are so desperately seeking, but which they don’t deserve at all.</p>
<p>“They are terrorists. They’re criminals. Many of them are psychopathic thugs, murderers, who use a religious concept and masquerade and mask themselves in that religious construct. And I do think it does injustice to the tenets of religion when we attach a religious moniker to them.”</p>
<p>Copyright © 2018 The Washington Times, LLC. <a href="http://license.icopyright.net/3.7280?icx_id=/news/2015/mar/25/islamist-extremists-phrase-rejected-by-obama-embra/" type="external">Click here for reprint permission</a>.</p>
<p>&#160;</p> | true | 0 | president obama aides insist muslim extremists nothing islam religion world leaders leaving approach behind british home secretary theresa may monday announced gettough policy includes comprehensive strategy combat called islamist extremists phrase obama administration officials repeatedly refused use ms may said new counterextremism measures include power close sites owned occupied extremists used host extremist meetings speakers widely interpreted britain mean closing islamic centers mosques foment intolerance violence see also afghanistans ghani islams leaders must speak terror threat also announced new scrutiny religious figures trying enter britain requirement speak english speaking followers policies would take effect new conservative government elected may tunisia site two horrendous terror attacks recent months closing mosques since last summer week north african country seen one success stories socalled arab spring issued report identifying scores additional mosques catering islamic extremists france prime minister manuel valls told wall street journal late february france struck much heart terrorism jihadist terrorism radical islamism let us call things like france enacted tougher intrusive counterterrorism laws wake jan 7 charlie hebdo massacre carried two islamists satirical magazine lampooned islam egypt president abdel fattah elsisi sunday expanded campaign forcefully urge countrys muslim leaders purge ideology violence ranks president former head egypts military forces hesitate say religion islam extremist problem even afghanistan president ashraf ghani addressing joint session congress wednesday end fourday washington visit said leaders muslimmajority countries must publicly condemn terror movements islamic state even mr ghani denied jihadi terror groups true reflection islam faith public officials islamic leaders muslimmajority countries silence acceptable mr ghani said united states home relatively small growing muslim population 5 million 8 million people 2 percent compared 4 percent britain frances 8 percent us witnessed kind incidents seen europe american muslim residents traveled syria try join ultraviolent islamic state terror army authorities stopped number homegrown terror plots fort hood massacre first attack world trade center carried selfproclaimed jihadis country soeren kern analyst gatestone institute tracks radical islam said domestic politics work britain france much security concerns britain general elections set early may flurry counterterrorism activity recent months attempt conservative government stanch flow votes rightwing parties united kingdom independence party long warned danger posed radical islam thirdmostpopular political party britain mr kern said france presidential elections two years away security issue already playing jockeying advantage wake jihadist attacks paris january expect presidential candidates take tough positions radical islam islamic terrorism election draws near mr kern said focused islam theresa may speech monday perhaps usher new era britain directly combating homegrown extremism spoke types focus clearly islam whose radical members seem march uk ms may acknowledged unauthorized courts follow harsh shariah law springing outside british court system making rulings particularly antiwoman increasing evidence small significant number people living britain almost british citizens reject values said seen trojan horse plot take state schools birmingham concerns religious supplementary schools widespread allegations corruption cronyism extremism homophobia antisemitism tower hamlets hate speakers invited speak british colleges universities segregation gender allowed universities even endorsed universities uk charities generosity giving public abused extremists examples shariah law used discriminate women thousands honor crimes committed every year hundreds british citizens traveled fight syria iraq trojan horse scandal uncovered special government investigation last year involved plot muslim faculty turn birmingham public schools essentially islamic institutions tower hamlets predominantly muslim neighborhood east london islamist extremists believe clash civilizations ms may said promote fundamental incompatibility islamic western values inevitable divide us demand caliphate new islamic state governed harsh interpretation sharia law utterly reject british western values including democracy rule law equality citizens regardless gender ethnicity religion sexuality believe impossible good muslim good british citizen defending conservative governments decision call islamist extremists ms may said know people disagree say describe islamist extremism simply social conservatism anybody else discriminated women denounced people basis religious beliefs rejected democratic process attacked people basis sexuality gave nod wink favor violence terrorism wouldnt hesitate challenge law broken call prosecution punishment tunisia ministry religious affairs disclosed month 149 mosques control radical salafists hardline version islam reported tunis times salafists took scores mosques 2011 evicting moderate imams militants set controlled additional places worship since fall tunisian strongman zine el abidine ben ali whose regime exerted control mosques 1000 fallen hands radicals said ministry interior spokesman last july government began closing scores mosques tied militants including al qaeda aftermath extremist attack killed 14 soldiers near algerian border amid mosque crackdown country suffered one worst terrorists attacks march 18 gunmen trained islamic state libya opened fire inside bardo museum killing 24 people 20 foreign tourists january egypts president elsisi delivered could turn landmark address islamic reformation went heart sunni islam alazhar university cairo spoke directly senior scholars imams addressing religious scholars clerics must take long hard look current situation said inconceivable ideology sanctify make entire nation source concern danger killing destruction world cia director john brennan recent senior obama official reject use phrase islamic extremists forum council foreign relations march 13 said amused intense focus label president obama aides used calling terrorists islamic mr brennan argued plays enemys hands terrorism said totally inconsistent overwhelming majority muslims throughout world believe said ascribing know muslim terrorism islamic extremism think really give type islamic legitimacy desperately seeking dont deserve terrorists theyre criminals many psychopathic thugs murderers use religious concept masquerade mask religious construct think injustice tenets religion attach religious moniker copyright 2018 washington times llc click reprint permission 160 | 884 |
<p>It’s not an Olympics, World Cup, or Ryder Cup year, but 2013 promises to deliver on the field and off, just as sport has done since the first Olympic Games convened in Ancient Greece. Here are the top 10 sports business stories to watch in 2013: 1) Will the NHL lockout cause a freeze out? &#160;The NHL lockout topped our 2012 list and will shape 2013 as well. While the league will receive $200 million in national media revenue from NBC even if it never drops a puck, at stake is the long-term health of a $3.3 billion business and the NHL’s reputation with its stakeholders.</p>
<p>If the league can settle its labor impasse by mid-January in time to salvage a 48-game season, then its fan base may stay intact. However, when a recent survey revealed that 58% of Canadians, for whom hockey is as essential as virgin forest and beer, don’t care if the season is saved, the NHL may have rough ice ahead.</p>
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<p>2) I-5 MLB Arms Race. The Los Angeles Dodgers sold for $2.15 billion, but that’s just the beginning of the SoCal baseball money dance. Agreements with pitchers Zack Greinke and Hyun-Jin Ryu send the Dodgers’ 2013 payroll north of $230 million, a MLB record.</p>
<p>Not to be passed like a Prius in the carpool lane, neighboring L.A. Angels of Anaheim sign slugger Josh Hamilton to a five-year, $125 million deal, bringing their 2013 payroll to $114 million, with $500 million in salary commitments through 2021.</p>
<p>The locally-farmed golden goose, of course, is TV money. The Dodgers may receive up to $6 billion over 25 years in a new regional deal with Fox — potentially raising cries of preferential treatment from other teams if only a portion of the funds are subject to MLB revenue-sharing. The Angels are negotiating a lucrative TV deal of their own.</p>
<p>3) World Baseball Classic. 2013 is a WBC year, and this time around, the tournament has expanded to 28 teams in a new qualifying and pool play format. The U.S. will host games in every round, with first-round games at the Diamondbacks’ Chase Field and spring training ballpark they share with the Rockies, Salt River Fields at Talking Stick. Miami hosts second round matchups, while San Francisco will host the finals; Mayor Ed Lee anticipate a $100 million economic impact there.</p>
<p>Delta Air Lines and Brand USA have signed on as sponsors, and MLB is creating a special edition of its “Fan Cave” for the tournament. Will WBC finally catch on with fans?</p>
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<p>4) The NBA revisits Jersey. Outside of MLS, corporate sponsor logos are almost entirely absent from American pro sports jerseys. While most leagues have gotten comfortable with practice jersey logos, a longstanding mindset about the sanctity of sport and concern over sponsor leverage have thus far prevented official game jerseys from becoming, as the New York Times put it, “a running, passing, shooting and dunking billboard.”</p>
<p>Now, the NBA is seriously considering becoming the first of North America’s four major sports leagues to put sponsors’ logos on game uniforms. Even if the NBA took in only a fraction of the revenues generated by EPL shirt sponsors such as Chevy, Emirates, and Samsung, that has to be near irresistible to the owners and Commissioner David Stern. We may see corporate brands on NBA game jerseys by October.</p>
<p>5) Conference musical chairs continue. 2013-2014 will likely see the end of the Big East, as Forbes notes, since its widespread members, such as San Diego State, Boise State and Tulane have lost the perceived benefits of joining the conference in the first place after the departure of Syracuse, Louisville, Pitt, and the like.</p>
<p>Further, in the Big East, the new Catholic school basketball super conference, and elsewhere, many schools that have announced that they’re switching affiliations will do so sooner than planned. Legal proceedings involving West Virginia and Rutgers will affect the pace at which change occurs.</p>
<p>6) Você fala português? Brazil will be the epicenter of the sports business world in 2013, both physically and digitally. While Latin America is booming from a sports perspective, Brazil is readying for both the 2014 World Cup, building 10 new arenas, and the 2016 Summer Olympics. At the same time, thanks to 24/7 digital access, American sports fans are paying more attention to international sports properties such as the EPL, cricket, and F1, another Brazilian obsession.</p>
<p>7) Social media continues to spread. For sports as for other industries, much growth is happening on social media networks. Fast Company notes that Facebook users grew by 47% in Latin America alone last year, and total social media users are forecast to grow by 12.6% in Latin America, 21.1% in Asia, and 23.3% in the Middle East (compared to 4.1% in the U.S.). American sports brands will implement better social media management tools and continue to see a strong return on their global digital investments.</p>
<p>8) Rory rockets. Golfer Rory McIlroy reached #1 in 2012; in 2013 he will stay there. McIlroy finally looks like the true heir to Tiger Woods, with the wherewithal to pass Jack Nicklaus’ record of 18 Majors. In 2012 he won $8 million on course, added a second Major, was Player of the Year, and signed a $250 million deal with Nike.</p>
<p>The just-filed Oakley breach of contract suit is a mere leaf in McIlroy’s 2013 lie. Look for the Northern Irishman to add at least one more major, with nary a slump in sight.</p>
<p>9) America’s Cup sails into SF. Not only does the City by the Bay welcome the World Baseball Classic Finals in 2013, six months later, it plays host to the America’s Cup Finals.</p>
<p>Oracle founder Larry Ellison brought the America’s Cup back to the U.S. in a runaway victory off the coast of Spain. Ever since, San Francisco has been busily preparing for a series of major events that bring glamorous sponsors and a heady economic impact. From the Marina Green Moet &amp; Chandon Champagne Lounge to on-the-water opportunities sponsored by Lexus and Red Bull, the Bay Area should see around $1.4 billion in economic benefits from America’s Cup events.</p>
<p>10) Court gestures. 2013 is a critical year for hobbled tennis star Rafael Nadal, trying to return to his prior form, and the ATP, locked in a battle of wills with the USTA over a Monday night U.S. Open final they don’t want (they’re losing) and bigger purses at the Slams (they’re winning—next month’s Australian Open is ponying up US $31.5 million, a 14% increase). Will Andy Murray win another major? Will an American woman not named Williams finally break through?</p>
<p>Rick Horrow is the president of Horrow Sports Ventures.</p> | true | 0 | olympics world cup ryder cup year 2013 promises deliver field sport done since first olympic games convened ancient greece top 10 sports business stories watch 2013 1 nhl lockout cause freeze 160the nhl lockout topped 2012 list shape 2013 well league receive 200 million national media revenue nbc even never drops puck stake longterm health 33 billion business nhls reputation stakeholders league settle labor impasse midjanuary time salvage 48game season fan base may stay intact however recent survey revealed 58 canadians hockey essential virgin forest beer dont care season saved nhl may rough ice ahead continue reading 2 i5 mlb arms race los angeles dodgers sold 215 billion thats beginning socal baseball money dance agreements pitchers zack greinke hyunjin ryu send dodgers 2013 payroll north 230 million mlb record passed like prius carpool lane neighboring la angels anaheim sign slugger josh hamilton fiveyear 125 million deal bringing 2013 payroll 114 million 500 million salary commitments 2021 locallyfarmed golden goose course tv money dodgers may receive 6 billion 25 years new regional deal fox potentially raising cries preferential treatment teams portion funds subject mlb revenuesharing angels negotiating lucrative tv deal 3 world baseball classic 2013 wbc year time around tournament expanded 28 teams new qualifying pool play format us host games every round firstround games diamondbacks chase field spring training ballpark share rockies salt river fields talking stick miami hosts second round matchups san francisco host finals mayor ed lee anticipate 100 million economic impact delta air lines brand usa signed sponsors mlb creating special edition fan cave tournament wbc finally catch fans advertisement 4 nba revisits jersey outside mls corporate sponsor logos almost entirely absent american pro sports jerseys leagues gotten comfortable practice jersey logos longstanding mindset sanctity sport concern sponsor leverage thus far prevented official game jerseys becoming new york times put running passing shooting dunking billboard nba seriously considering becoming first north americas four major sports leagues put sponsors logos game uniforms even nba took fraction revenues generated epl shirt sponsors chevy emirates samsung near irresistible owners commissioner david stern may see corporate brands nba game jerseys october 5 conference musical chairs continue 20132014 likely see end big east forbes notes since widespread members san diego state boise state tulane lost perceived benefits joining conference first place departure syracuse louisville pitt like big east new catholic school basketball super conference elsewhere many schools announced theyre switching affiliations sooner planned legal proceedings involving west virginia rutgers affect pace change occurs 6 você fala português brazil epicenter sports business world 2013 physically digitally latin america booming sports perspective brazil readying 2014 world cup building 10 new arenas 2016 summer olympics time thanks 247 digital access american sports fans paying attention international sports properties epl cricket f1 another brazilian obsession 7 social media continues spread sports industries much growth happening social media networks fast company notes facebook users grew 47 latin america alone last year total social media users forecast grow 126 latin america 211 asia 233 middle east compared 41 us american sports brands implement better social media management tools continue see strong return global digital investments 8 rory rockets golfer rory mcilroy reached 1 2012 2013 stay mcilroy finally looks like true heir tiger woods wherewithal pass jack nicklaus record 18 majors 2012 8 million course added second major player year signed 250 million deal nike justfiled oakley breach contract suit mere leaf mcilroys 2013 lie look northern irishman add least one major nary slump sight 9 americas cup sails sf city bay welcome world baseball classic finals 2013 six months later plays host americas cup finals oracle founder larry ellison brought americas cup back us runaway victory coast spain ever since san francisco busily preparing series major events bring glamorous sponsors heady economic impact marina green moet amp chandon champagne lounge onthewater opportunities sponsored lexus red bull bay area see around 14 billion economic benefits americas cup events 10 court gestures 2013 critical year hobbled tennis star rafael nadal trying return prior form atp locked battle wills usta monday night us open final dont want theyre losing bigger purses slams theyre winningnext months australian open ponying us 315 million 14 increase andy murray win another major american woman named williams finally break rick horrow president horrow sports ventures | 710 |
<p>European energy firms pledged Monday to finance half the cost of a natural-gas link from Russia to Germany, lending support to a pipeline plan that is fueling tensions within the European Union.</p>
<p>A consortium of five companies -- Engie SA, OMV AG, Royal Dutch Shell PLC, Uniper SE and Wintershall Holding GmbH -- said they would provide up to EUR4.75 billion ($5.1 billion) in long-term financing to Nord Stream 2 AG, a wholly owned subsidiary of Russia's state-owned PAO Gazprom.</p>
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<p>The move highlights Europe's complicated relationship with Russia, and comes just days after U.S. President Donald Trump rejected Exxon Mobil Corp.'s request for a waiver of sanctions so it could resume an oil venture with a Russian partner.</p>
<p>While European firms seek to protect access to Russia's market and resources, most EU countries oppose the Kremlin's intervention in Ukraine and fear its push to project more power across the world. That dichotomy has pitted EU nations against each other, with some calling Nord Stream 2 a Trojan horse put forth by Russia to exploit European disagreements while others, led by Germany, are championing the project as a key energy initiative.</p>
<p>About a dozen EU countries claim that allowing Gazprom to double the existing Nord Stream pipeline's capacity would increase Europe's reliance on Russian gas while enabling Moscow to cut back on eastern routes through Ukraine and Belarus. That would threaten the bloc's energy security, while also undermining a key diplomatic objective for Brussels: supporting Kiev amid its conflict with Moscow.</p>
<p>"There will need to be a very tough discussion," an EU official said Monday. "Nord Stream is clearly a divisive project; we'll need to do some kind of damage control."</p>
<p>EU sanctions against Russia are not an obstacle to the funding agreement between Gazprom and its European partners, said Nord Stream 2's representative to Brussels, Sebastian Sass.</p>
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<p>Each European firm will provide up to EUR950 million in long- and short-term loans, according to the deal. The Russian gas giant will tap more than EUR1.4 billion of the cash this year, and access the rest as it decides on how to finance the pipeline, the lenders said.</p>
<p>"The financial commitment by the European companies underscores the Nord Stream 2 project's strategic importance for the European gas market," Gazprom, its European partners and the pipeline company said in a joint statement.</p>
<p>Monday's agreement follows the EU's admission last month that Brussels cannot legally block the proposed pipeline, which would be ready by the end of 2019. Nord Stream 2 would add another 55 billion cubic meters to annual gas flows to Germany, about 14% of the EU's yearly consumption.</p>
<p>Polish competition authorities previously blocked the five European companies from taking a 50% stake in Nord Stream 2. Undeterred, the firms continued to support the project. By guaranteeing half the funds Gazprom needs to bankroll the link, European firms have signaled their confidence that the project won't be halted by EU bureaucrats.</p>
<p>In an attempt to find a political solution to the divisive issue, the European Commission, the bloc's executive arm, said it will seek a mandate from EU governments to negotiate with Russia on terms that would govern use of Nord Stream 2.</p>
<p>It remains unclear whether the commission will get a green light to approach Moscow for an agreement. German Foreign Minister Sigmar Gabriel had told Russian President Vladimir Putin that Berlin would strive to prevent EU involvement in Nord Stream 2.</p>
<p>"Nord Stream 2 is a business undertaking that, as usual, we won't comment on," said Economy Ministry spokeswoman Tanja Alemany Sanchez de León.</p>
<p>Berlin has long argued that the pipeline is a commercial project, with no room for government interference as long as it complies with German and EU laws.</p>
<p>"What is certain is that this project is of great importance for Germany, certainly they will be very much involved in pushing it through," a European diplomat in Brussels said. "The discussion has reached a point where all the sides voiced their concerns...I'm not quite sure what might happen next."</p>
<p>Write to Emre Peker at [email protected]</p>
<p>BRUSSELS -- European energy firms pledged Monday to finance half the cost of a natural-gas link from Russia to Germany, lending support to a pipeline plan that is fueling tensions within the European Union.</p>
<p>A consortium of five companies -- Engie SA, OMV AG, Royal Dutch Shell PLC, Uniper SE and Wintershall Holding GmbH -- said they would provide up to EUR4.75 billion ($5.1 billion) in long-term financing to Nord Stream 2 AG, a wholly owned subsidiary of Russia's state-owned PAO Gazprom.</p>
<p>The move highlights Europe's complicated relationship with Russia, and comes just days after U.S. President Donald Trump rejected Exxon Mobil Corp.'s request for a waiver of sanctions so it could resume an oil venture with a Russian partner.</p>
<p>While European firms seek to protect access to Russia's market and resources, most EU countries oppose the Kremlin's intervention in Ukraine and fear its push to project more power across the world. That dichotomy has pitted EU nations against each other, with some calling Nord Stream 2 a Trojan horse put forth by Russia to exploit European disagreements while others, led by Germany, are championing the project as a key energy initiative.</p>
<p>About a dozen EU countries claim that allowing Gazprom to double the existing Nord Stream pipeline's capacity would increase Europe's reliance on Russian gas while enabling Moscow to cut back on eastern routes through Ukraine and Belarus. That would threaten the bloc's energy security, while also undermining a key diplomatic objective for Brussels: supporting Kiev amid its conflict with Moscow.</p>
<p>"There will need to be a very tough discussion," an EU official said Monday. "Nord Stream is clearly a divisive project; we'll need to do some kind of damage control."</p>
<p>EU sanctions against Russia are not an obstacle to the funding agreement between Gazprom and its European partners, said Nord Stream 2's representative to Brussels, Sebastian Sass.</p>
<p>Each European firm will provide up to EUR950 million in long- and short-term loans, according to the deal. The Russian gas giant will tap more than EUR1.4 billion of the cash this year, and access the rest as it decides on how to finance the pipeline, the lenders said.</p>
<p>"The financial commitment by the European companies underscores the Nord Stream 2 project's strategic importance for the European gas market," Gazprom, its European partners and the pipeline company said in a joint statement.</p>
<p>Monday's agreement follows the EU's admission last month that Brussels cannot legally block the proposed pipeline, which would be ready by the end of 2019. Nord Stream 2 would add another 55 billion cubic meters to annual gas flows to Germany, about 14% of the EU's yearly consumption.</p>
<p>Polish competition authorities previously blocked the five European companies from taking a 50% stake in Nord Stream 2. Undeterred, the firms continued to support the project. By guaranteeing half the funds Gazprom needs to bankroll the link, European firms have signaled their confidence that the project won't be halted by EU bureaucrats.</p>
<p>In an attempt to find a political solution to the divisive issue, the European Commission, the bloc's executive arm, said it will seek a mandate from EU governments to negotiate with Russia on terms that would govern use of Nord Stream 2.</p>
<p>It remains unclear whether the commission will get a green light to approach Moscow for an agreement. German Foreign Minister Sigmar Gabriel had told Russian President Vladimir Putin that Berlin would strive to prevent EU involvement in Nord Stream 2.</p>
<p>"Nord Stream 2 is a business undertaking that, as usual, we won't comment on," said German Economy Ministry spokeswoman Tanja Alemany Sanchez de León on Monday.</p>
<p>Berlin has long argued that the pipeline is a commercial project, with no room for government interference as long as it complies with German and EU laws.</p>
<p>"What is certain is that this project is of great importance for Germany, certainly they will be very much involved in pushing it through," a European diplomat in Brussels said. "The discussion has reached a point where all the sides voiced their concerns...I'm not quite sure what might happen next."</p>
<p>--Zeke Turner contributed to this article.</p>
<p>Write to Emre Peker at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>April 24, 2017 14:38 ET (18:38 GMT)</p> | true | 0 | european energy firms pledged monday finance half cost naturalgas link russia germany lending support pipeline plan fueling tensions within european union consortium five companies engie sa omv ag royal dutch shell plc uniper se wintershall holding gmbh said would provide eur475 billion 51 billion longterm financing nord stream 2 ag wholly owned subsidiary russias stateowned pao gazprom continue reading move highlights europes complicated relationship russia comes days us president donald trump rejected exxon mobil corps request waiver sanctions could resume oil venture russian partner european firms seek protect access russias market resources eu countries oppose kremlins intervention ukraine fear push project power across world dichotomy pitted eu nations calling nord stream 2 trojan horse put forth russia exploit european disagreements others led germany championing project key energy initiative dozen eu countries claim allowing gazprom double existing nord stream pipelines capacity would increase europes reliance russian gas enabling moscow cut back eastern routes ukraine belarus would threaten blocs energy security also undermining key diplomatic objective brussels supporting kiev amid conflict moscow need tough discussion eu official said monday nord stream clearly divisive project well need kind damage control eu sanctions russia obstacle funding agreement gazprom european partners said nord stream 2s representative brussels sebastian sass advertisement european firm provide eur950 million long shortterm loans according deal russian gas giant tap eur14 billion cash year access rest decides finance pipeline lenders said financial commitment european companies underscores nord stream 2 projects strategic importance european gas market gazprom european partners pipeline company said joint statement mondays agreement follows eus admission last month brussels legally block proposed pipeline would ready end 2019 nord stream 2 would add another 55 billion cubic meters annual gas flows germany 14 eus yearly consumption polish competition authorities previously blocked five european companies taking 50 stake nord stream 2 undeterred firms continued support project guaranteeing half funds gazprom needs bankroll link european firms signaled confidence project wont halted eu bureaucrats attempt find political solution divisive issue european commission blocs executive arm said seek mandate eu governments negotiate russia terms would govern use nord stream 2 remains unclear whether commission get green light approach moscow agreement german foreign minister sigmar gabriel told russian president vladimir putin berlin would strive prevent eu involvement nord stream 2 nord stream 2 business undertaking usual wont comment said economy ministry spokeswoman tanja alemany sanchez de león berlin long argued pipeline commercial project room government interference long complies german eu laws certain project great importance germany certainly much involved pushing european diplomat brussels said discussion reached point sides voiced concernsim quite sure might happen next write emre peker emrepekerwsjcom brussels european energy firms pledged monday finance half cost naturalgas link russia germany lending support pipeline plan fueling tensions within european union consortium five companies engie sa omv ag royal dutch shell plc uniper se wintershall holding gmbh said would provide eur475 billion 51 billion longterm financing nord stream 2 ag wholly owned subsidiary russias stateowned pao gazprom move highlights europes complicated relationship russia comes days us president donald trump rejected exxon mobil corps request waiver sanctions could resume oil venture russian partner european firms seek protect access russias market resources eu countries oppose kremlins intervention ukraine fear push project power across world dichotomy pitted eu nations calling nord stream 2 trojan horse put forth russia exploit european disagreements others led germany championing project key energy initiative dozen eu countries claim allowing gazprom double existing nord stream pipelines capacity would increase europes reliance russian gas enabling moscow cut back eastern routes ukraine belarus would threaten blocs energy security also undermining key diplomatic objective brussels supporting kiev amid conflict moscow need tough discussion eu official said monday nord stream clearly divisive project well need kind damage control eu sanctions russia obstacle funding agreement gazprom european partners said nord stream 2s representative brussels sebastian sass european firm provide eur950 million long shortterm loans according deal russian gas giant tap eur14 billion cash year access rest decides finance pipeline lenders said financial commitment european companies underscores nord stream 2 projects strategic importance european gas market gazprom european partners pipeline company said joint statement mondays agreement follows eus admission last month brussels legally block proposed pipeline would ready end 2019 nord stream 2 would add another 55 billion cubic meters annual gas flows germany 14 eus yearly consumption polish competition authorities previously blocked five european companies taking 50 stake nord stream 2 undeterred firms continued support project guaranteeing half funds gazprom needs bankroll link european firms signaled confidence project wont halted eu bureaucrats attempt find political solution divisive issue european commission blocs executive arm said seek mandate eu governments negotiate russia terms would govern use nord stream 2 remains unclear whether commission get green light approach moscow agreement german foreign minister sigmar gabriel told russian president vladimir putin berlin would strive prevent eu involvement nord stream 2 nord stream 2 business undertaking usual wont comment said german economy ministry spokeswoman tanja alemany sanchez de león monday berlin long argued pipeline commercial project room government interference long complies german eu laws certain project great importance germany certainly much involved pushing european diplomat brussels said discussion reached point sides voiced concernsim quite sure might happen next zeke turner contributed article write emre peker emrepekerwsjcom end dow jones newswires april 24 2017 1438 et 1838 gmt | 883 |
<p>Missouri probes giant, which had avoided scrutiny at home despite inquiry abroad</p>
<p>This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 14, 2017).</p>
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<p>Google is facing a new front in its regulatory battles after Missouri's attorney general launched a broad investigation into whether the internet giant's business practices violate the state's consumer-protection and antitrust laws.</p>
<p>Missouri Attorney General Josh Hawley on Monday said he issued an investigative subpoena to probe Google's collection of user data, its use of other sites' content, and its alleged manipulation of search results to favor its own services.</p>
<p>Google, a unit of Alphabet Inc., has so far skirted the scrutiny in the U.S. that it has faced in Europe, where regulators levied a record $2.7 billion fine against Google in June for allegedly favoring its shopping ads in its search results. Mr. Hawley said his investigation was in part prompted by the European fine. "We're concerned they're engaged in a similar pattern of behavior in the United States," he told reporters.</p>
<p>Google said in a statement: "We have not yet received the subpoena, however, we have strong privacy protections in place for our users and continue to operate in a highly competitive and dynamic environment." It has disputed European regulators' charges.</p>
<p>The Federal Trade Commission ended a nearly two-year antitrust investigation into Google in early 2013 after the company agreed to make some changes to its business practices for five years -- a period that is about to expire. In the U.S., some federal lawmakers such as Sen. Al Franken (D., Minn.) have called for new probes into the company's power. Congressional committees are also investigating how Russian agents allegedly used Google, Facebook Inc. and Twitter Inc. to try to influence last year's election.</p>
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<p>Mr. Hawley said the FTC went too easy on Google. "That seemed to me to be short even of a slap on the wrist. Now this is why I think there needs to be a fuller inquiry," he said in an interview. "I don't see a lot of action coming out of Washington. I don't see a lot of action coming out of the FTC....So I think that it's important that some law enforcement agency actually steps forward."</p>
<p>The FTC pointed to past comments from commissioners that stated its "exhaustive investigation" into Google found the company's practices weren't "on balance, demonstrably anticompetitive."</p>
<p>Mr. Hawley, a 37-year-old Republican lawyer who was elected as Missouri's attorney general last year, announced last month that he is running for Democratic U.S. Sen. Claire McCaskill's seat in 2018.</p>
<p>Some critics and competitors of Google see state attorneys general as potentially the most likely route to regulatory action in the U.S.</p>
<p>Mississippi Attorney General Jim Hood has sued Google several times, including in January over its collection and use of data on Mississippi public-school students who use its services. Mr. Hood is looking closely at other aspects of Google's business and considering further action, a person familiar with the matter said.</p>
<p>Utah Attorney General Sean Reyes and District of Columbia Attorney General Karl Racine last year called on the FTC to reopen its antitrust investigation into Google. This year, when Mr. Reyes was a candidate for FTC chairman, Google deployed Republican lobbyists to dissuade Trump administration officials from naming him to the post, according to people familiar with the matter.</p>
<p>Mr. Reyes said in an email that the FTC never replied to his call for a new federal probe. "We may have to take matters into our own hands as state attorneys general on those and possibly other issues," he said. "In many ways, we can be more effective investigating and if necessary, holding companies accountable at the state level." He declined to say whether his office was investigating Google.</p>
<p>States usually team up to prosecute large corporations like Google, with bigger states like New York or California leading the way, said New York University economics professor Nicholas Economides. He predicted Missouri would try to recruit other states if it seeks charges. "Google is going to be a significant case," he said. "If it's going to be just Missouri, that would be a very unequal fight."</p>
<p>States can be effective regulators. In 1998, after years of lawsuits, 46 states agreed to a $206 billion settlement with tobacco companies that required the firms to change their marketing practices, among other changes.</p>
<p>The federal government's antitrust case against Microsoft Corp. in 2001 began with an investigation by the Texas attorney general, said Gary Reback, a key attorney who persuaded the Justice Department to sue Microsoft.</p>
<p>European Union officials have been the most aggressive regulators of Google in recent years, with four separate probes ongoing.</p>
<p>Google has disputed antitrust allegations and said the internet remains a competitive marketplace. The company says it has several webpages that shows users what data it has on them and enables them to delete data and opt out of future collection.</p>
<p>Mr. Hawley's examination focuses on allegations that regulators and academics have scrutinized for years. A 2012 staff report that was part of the FTC's investigation concluded Google illegally pulled content from other sites and recommended the commission file a lawsuit, The Wall Street Journal reported. Three commissioners said they had "strong concerns" about Google's so-called scraping behavior but opted against filing a suit.</p>
<p>The staff report also said Google's practice of favoring its own services in its search results harmed competitors but would be difficult to prosecute.</p>
<p>In September, reviews site Yelp Inc. sent a letter to the FTC alleging Google was using Yelp photos for its local-business listings, breaking a promise to not scrape content from certain sites that was part of its FTC settlement. Yelp also sent the letter to all the state attorneys general, and Mr. Hawley said Monday that he would be investigating the Yelp example. Mississippi's Mr. Hood also sent a letter on Oct. 31 asking the FTC to investigate Yelp's claims, according to a copy of the letter viewed by the Journal.</p>
<p>Google said at the time that if Yelp went to Google before regulators "we would have immediately taken steps to look at the issue and update these results -- as we're doing now."</p>
<p>Write to Jack Nicas at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>November 14, 2017 02:47 ET (07:47 GMT)</p> | true | 0 | missouri probes giant avoided scrutiny home despite inquiry abroad article republished part daily reproduction wsjcom articles also appeared us print edition wall street journal november 14 2017 continue reading google facing new front regulatory battles missouris attorney general launched broad investigation whether internet giants business practices violate states consumerprotection antitrust laws missouri attorney general josh hawley monday said issued investigative subpoena probe googles collection user data use sites content alleged manipulation search results favor services google unit alphabet inc far skirted scrutiny us faced europe regulators levied record 27 billion fine google june allegedly favoring shopping ads search results mr hawley said investigation part prompted european fine concerned theyre engaged similar pattern behavior united states told reporters google said statement yet received subpoena however strong privacy protections place users continue operate highly competitive dynamic environment disputed european regulators charges federal trade commission ended nearly twoyear antitrust investigation google early 2013 company agreed make changes business practices five years period expire us federal lawmakers sen al franken minn called new probes companys power congressional committees also investigating russian agents allegedly used google facebook inc twitter inc try influence last years election advertisement mr hawley said ftc went easy google seemed short even slap wrist think needs fuller inquiry said interview dont see lot action coming washington dont see lot action coming ftcso think important law enforcement agency actually steps forward ftc pointed past comments commissioners stated exhaustive investigation google found companys practices werent balance demonstrably anticompetitive mr hawley 37yearold republican lawyer elected missouris attorney general last year announced last month running democratic us sen claire mccaskills seat 2018 critics competitors google see state attorneys general potentially likely route regulatory action us mississippi attorney general jim hood sued google several times including january collection use data mississippi publicschool students use services mr hood looking closely aspects googles business considering action person familiar matter said utah attorney general sean reyes district columbia attorney general karl racine last year called ftc reopen antitrust investigation google year mr reyes candidate ftc chairman google deployed republican lobbyists dissuade trump administration officials naming post according people familiar matter mr reyes said email ftc never replied call new federal probe may take matters hands state attorneys general possibly issues said many ways effective investigating necessary holding companies accountable state level declined say whether office investigating google states usually team prosecute large corporations like google bigger states like new york california leading way said new york university economics professor nicholas economides predicted missouri would try recruit states seeks charges google going significant case said going missouri would unequal fight states effective regulators 1998 years lawsuits 46 states agreed 206 billion settlement tobacco companies required firms change marketing practices among changes federal governments antitrust case microsoft corp 2001 began investigation texas attorney general said gary reback key attorney persuaded justice department sue microsoft european union officials aggressive regulators google recent years four separate probes ongoing google disputed antitrust allegations said internet remains competitive marketplace company says several webpages shows users data enables delete data opt future collection mr hawleys examination focuses allegations regulators academics scrutinized years 2012 staff report part ftcs investigation concluded google illegally pulled content sites recommended commission file lawsuit wall street journal reported three commissioners said strong concerns googles socalled scraping behavior opted filing suit staff report also said googles practice favoring services search results harmed competitors would difficult prosecute september reviews site yelp inc sent letter ftc alleging google using yelp photos localbusiness listings breaking promise scrape content certain sites part ftc settlement yelp also sent letter state attorneys general mr hawley said monday would investigating yelp example mississippis mr hood also sent letter oct 31 asking ftc investigate yelps claims according copy letter viewed journal google said time yelp went google regulators would immediately taken steps look issue update results write jack nicas jacknicaswsjcom end dow jones newswires november 14 2017 0247 et 0747 gmt | 650 |
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<p>Image source: AveXis, Inc.</p>
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<p>Shares ofIonis Pharmaceuticals, Inc.(NASDAQ: IONS)have lost about 12.1% of their value since AveXis, Inc.(NASDAQ: AVXS) shared early evidence that its gene therapy benefited infants with spinal muscular atrophy (SMA). One of the most important drugs emerging from Ionis' pipeline, nusinersen, is intended to treat the same rare geneticcondition.</p>
<p>Up close, thevirus shell that delivers AveXis' AVXS-101 certainly looks threatening (just take a peek at the image above).Step back, though, and it seems like a much smaller threat to Ionis' nusinersen than recent stock movements suggest.</p>
<p>In September, Ionis' partner,Biogen(NASDAQ: BIIB), completed the submission of nusinersen's new drug application to the FDA for treatment of spinal muscular atrophy.In earlier times (before electronic filings), new drug applications could fill a small bedroom from floor to ceiling. AveXis finished 2015 with just 18 employees, and simply proofreading a new drug application would keep them all busy for weeks.</p>
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<p>AveXis recently presented highly positive data, but it could be years before it has an application to look at. The little biotech's SMA drug, AVXS-101, is partway through a phase 1 trial expected to wrap up around the end of next year.The company hopes to begin a second trial, designed to support an application, in the first half of next year.</p>
<p>The Agency hasn't officially accepted the application Biogen submitted, but that announcement should come any day now.Biogen applied for a shortened review of six months, instead of the standard 10-month process, and it will probably get one.Babies born with infantile-onset SMA typically require help breathing before their second birthday.Without any effective treatments available at the moment, a priority review for the first is well justified.</p>
<p>Image source: Getty Images.</p>
<p>If all goes well for Ionis and Biogen, nusinersen could become available for the most severe form of SMA as soon as next April.That would be several months before AveXis intends to begin its pivotal trial for the same patient population.If nusinersen is already available when AveXis is ready to submit an AVXS-101 application, there's little chance the FDA would stretch its limited resources to speed along a second SMA treatment.</p>
<p>The FDA is willing to expedite reviews for drugs that are a vast improvement over available therapies, but it doesn't look like AVXS-101 is going to hit this target, either. It hasn't been tested head to head with nusinersen, but the data so far doesn't point in the right direction for AveXis.</p>
<p>In 111-patient phase 3 trial, infants receiving nusinersen showed a highly significant improvement over the placebo group in activities such as kicking their feet, crawling, and standing. Just as importantly, there were no adverse side effects related to treatment.</p>
<p>Image source: Getty Images.</p>
<p>AveXis hasn't performed a placebo-controlled trial, but interim results from an a 15-patient study show impressive achievement of motor milestones. Children with infantile-onset SMA almost never develop an ability to sit unassisted, but eight of 12 treated with a higher dosage of AVXS-101 reached this milestone. Unfortunately, four patients experienced treatment-related side effects. These events were limited to heightened liver enzymes and were easily resolved with an anti-inflammatory steroid.</p>
<p>Nusinersen is expected to reach peak annual sales between $1 billion and $2.5 billion depending on potential expansion from infantile-onset SMA to less severe forms. Although nusinersen andAXVS-101 are designed to increase production of the same protein, they go about it in an entirely different manner. Ionis' drug alters the expression of the SMN2 gene so it produces functional SMN protein, but AVXS-101 uses a virus to basically "infect" cells with a working SMN1 gene to achieve the same goal.</p>
<p>This difference might allow AVXS-101 to eventually gain some traction with some SMA patients, but I wouldn't hold your breath. Ionis and Biogen already have encouraging data in less severe forms of SMA,while AveXis hasn't started looking.</p>
<p>Ionis Pharmaceuticals has little to worry about with nusinersen's position on the development timeline, a risk-reducing partnership with Biogen, and plenty of other <a href="http://www.fool.com/investing/2016/09/19/3-ways-ionis-pharmaceuticals-inc-is-beating-the-co.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">shots on goal Opens a New Window.</a>. In fact, without any revenue expected for years to come, AveXis investors should be the nervous bunch.</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>
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<p>The Motley Fool owns shares of and recommends Biogen and Ionis Pharmaceuticals. 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 avexis inc continue reading shares ofionis pharmaceuticals incnasdaq ionshave lost 121 value since avexis incnasdaq avxs shared early evidence gene therapy benefited infants spinal muscular atrophy sma one important drugs emerging ionis pipeline nusinersen intended treat rare geneticcondition close thevirus shell delivers avexis avxs101 certainly looks threatening take peek image abovestep back though seems like much smaller threat ionis nusinersen recent stock movements suggest september ionis partnerbiogennasdaq biib completed submission nusinersens new drug application fda treatment spinal muscular atrophyin earlier times electronic filings new drug applications could fill small bedroom floor ceiling avexis finished 2015 18 employees simply proofreading new drug application would keep busy weeks advertisement avexis recently presented highly positive data could years application look little biotechs sma drug avxs101 partway phase 1 trial expected wrap around end next yearthe company hopes begin second trial designed support application first half next year agency hasnt officially accepted application biogen submitted announcement come day nowbiogen applied shortened review six months instead standard 10month process probably get onebabies born infantileonset sma typically require help breathing second birthdaywithout effective treatments available moment priority review first well justified image source getty images goes well ionis biogen nusinersen could become available severe form sma soon next aprilthat would several months avexis intends begin pivotal trial patient populationif nusinersen already available avexis ready submit avxs101 application theres little chance fda would stretch limited resources speed along second sma treatment fda willing expedite reviews drugs vast improvement available therapies doesnt look like avxs101 going hit target either hasnt tested head head nusinersen data far doesnt point right direction avexis 111patient phase 3 trial infants receiving nusinersen showed highly significant improvement placebo group activities kicking feet crawling standing importantly adverse side effects related treatment image source getty images avexis hasnt performed placebocontrolled trial interim results 15patient study show impressive achievement motor milestones children infantileonset sma almost never develop ability sit unassisted eight 12 treated higher dosage avxs101 reached milestone unfortunately four patients experienced treatmentrelated side effects events limited heightened liver enzymes easily resolved antiinflammatory steroid nusinersen expected reach peak annual sales 1 billion 25 billion depending potential expansion infantileonset sma less severe forms although nusinersen andaxvs101 designed increase production protein go entirely different manner ionis drug alters expression smn2 gene produces functional smn protein avxs101 uses virus basically infect cells working smn1 gene achieve goal difference might allow avxs101 eventually gain traction sma patients wouldnt hold breath ionis biogen already encouraging data less severe forms smawhile avexis hasnt started looking ionis pharmaceuticals little worry nusinersens position development timeline riskreducing partnership biogen plenty shots goal opens new window fact without revenue expected years come avexis investors nervous bunch 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 cory renauer opens new window position stocks mentioned follow cory twitter tmfang4apples opens new window linkedin opens new window healthcare industry insight motley fool owns shares recommends biogen ionis pharmaceuticals 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 | 548 |
<p />
<p>The firearms business might have hit record highs in 2016, but you'd never know it by looking at the stock of Smith &amp; Wesson Holding (NASDAQ: SWHC) -- its shares are down about 1% in 2016. So as the year winds to a close, it might be worthwhile to look at what Smith &amp; Wesson did right even though the market didn't seem to appreciate it.</p>
<p>Continue Reading Below</p>
<p>Here were the best moves the gunslinger made this year that strengthened the business, and ought to position it for even better returns next year and beyond.</p>
<p>Image source: Getty Images.</p>
<p>Smith &amp; Wesson started off the year announcing a major restructuring of the company. No longer would it rely upon volatile gun sales for the bulk of its revenues, but would instead move in a different direction that would create three new divisions: firearms, manufacturing services, and accessories.</p>
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<p>Separating itself from the firearms industry pure-plays likeSturm, Ruger (NYSE: RGR), Smith &amp; Wesson laid the groundwork for the move into accessories with its acquisition of Battenfeld Technologies, which introduced outdoors products from brands like Hooyman, Caldwell, and Wheeler. The new manufacturing services would let it introduce business-to-business services such as forging, heat-treating, plating, and finishing, to third parties that were countercyclical and counter-seasonal to the firearms business -- which would continue on as it had been selling Smith &amp; Wesson-branded guns.</p>
<p>The realignment represented a fresh way of thinking at Smith &amp; Wesson as it diversifies its revenue streams and smooths out the boom and bust gyrations of the firearms industry.</p>
<p>Image source: Getty Images.</p>
<p>The restructuring meant Smith &amp; Wesson would need to find additional resources to fill these new divisions. The gunmaker went on a shopping spree, picking up knife maker Taylor Brands, laser sight manufacturer Crimson Trace, and rugged outdoors equipment maker Ultimate Survival Technologies (UST). It also expanded its borrow capacity indicating there was a lot more acquisitions coming in the future.</p>
<p>Although Taylor Brands and Crimson Trace were known quantities to Smith &amp; Wesson because they were also suppliers to it, the purchase of the latter opened up a new avenue for the company as it subsequently created a fourth division, electro-optics, of which Crimson Trace would be the centerpiece. UST, though relatively small and unknown, is a key supplier to the survivalist and extreme outdoors market.</p>
<p>Considering the businesses it purchased and the restructuring it made, the holding company name no longer represented its focus. It wasn't just a gunmaker anymore, but over time would become a diverse retailer of goods and services that ran parallel to firearms, a meaning the name Smith &amp; Wesson name could no longer convey. It proposed changing it to American Outdoor Brands and shareholders just overwhelming approved it, effective Jan. 1.</p>
<p>That makes it more like Vista Outdoor (NYSE: VSTO), which also has an outdoors gear and firearms mix, though whether the name change is a smart move remains to be seen. There's a lot more competition and Smith &amp; Wesson is a small, untested player, but as it will continue to manufacture its firearms under the Smith &amp; Wesson brand, the most important aspect of its financial statements remains intact.</p>
<p>Image source: Flickr via Kyle Post.</p>
<p>The new businesses may be exciting developments, but they still represent just a tiny portion of Smith &amp; Wesson's overall financial picture. Management believes it may take around five years before it builds out these ancillary ventures to become meaningful components of the business. In the meantime, it needs to rely upon its core strengths, and that includes introducing new products that meet the ever-changing needs of gun buyers.</p>
<p>In 2016, there were three new products in particular that carried the day (or year) for the gunslinger:</p>
<p>New product introductions remained key to Smith &amp; Wesson's performance all year long. In its fiscal fourth quarter earlier this year, the target pistols and rifles represented 19.2% of total revenues after they were introduced in January and then they took off from there, accounting for 30.4% of total firearms revenues in the fiscal first quarter and 28.9% in the second.</p>
<p>Smith &amp; Wesson has had troubles meshing the Thompson/Center business into the fold, and the rifles were subsequently subject to a recall, but in all new products remained an important factor in the gunmaker's performance.</p>
<p>Smith &amp; Wesson's business shouldn't be judged by its stock performance, which reacted more to external forces than what the company was trying to achieve. Indeed, if nothing else, the stock's movement across 2016 underscores the very reason Smith &amp; Wesson took these actions and that means the discounted value those shares trade at ought to make them very attractive to long-term investors.</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 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 | firearms business might hit record highs 2016 youd never know looking stock smith amp wesson holding nasdaq swhc shares 1 2016 year winds close might worthwhile look smith amp wesson right even though market didnt seem appreciate continue reading best moves gunslinger made year strengthened business ought position even better returns next year beyond image source getty images smith amp wesson started year announcing major restructuring company longer would rely upon volatile gun sales bulk revenues would instead move different direction would create three new divisions firearms manufacturing services accessories advertisement separating firearms industry pureplays likesturm ruger nyse rgr smith amp wesson laid groundwork move accessories acquisition battenfeld technologies introduced outdoors products brands like hooyman caldwell wheeler new manufacturing services would let introduce businesstobusiness services forging heattreating plating finishing third parties countercyclical counterseasonal firearms business would continue selling smith amp wessonbranded guns realignment represented fresh way thinking smith amp wesson diversifies revenue streams smooths boom bust gyrations firearms industry image source getty images restructuring meant smith amp wesson would need find additional resources fill new divisions gunmaker went shopping spree picking knife maker taylor brands laser sight manufacturer crimson trace rugged outdoors equipment maker ultimate survival technologies ust also expanded borrow capacity indicating lot acquisitions coming future although taylor brands crimson trace known quantities smith amp wesson also suppliers purchase latter opened new avenue company subsequently created fourth division electrooptics crimson trace would centerpiece ust though relatively small unknown key supplier survivalist extreme outdoors market considering businesses purchased restructuring made holding company name longer represented focus wasnt gunmaker anymore time would become diverse retailer goods services ran parallel firearms meaning name smith amp wesson name could longer convey proposed changing american outdoor brands shareholders overwhelming approved effective jan 1 makes like vista outdoor nyse vsto also outdoors gear firearms mix though whether name change smart move remains seen theres lot competition smith amp wesson small untested player continue manufacture firearms smith amp wesson brand important aspect financial statements remains intact image source flickr via kyle post new businesses may exciting developments still represent tiny portion smith amp wessons overall financial picture management believes may take around five years builds ancillary ventures become meaningful components business meantime needs rely upon core strengths includes introducing new products meet everchanging needs gun buyers 2016 three new products particular carried day year gunslinger new product introductions remained key smith amp wessons performance year long fiscal fourth quarter earlier year target pistols rifles represented 192 total revenues introduced january took accounting 304 total firearms revenues fiscal first quarter 289 second smith amp wesson troubles meshing thompsoncenter business fold rifles subsequently subject recall new products remained important factor gunmakers performance smith amp wessons business shouldnt judged stock performance reacted external forces company trying achieve indeed nothing else stocks movement across 2016 underscores reason smith amp wesson took actions means discounted value shares trade ought make attractive longterm investors 10 stocks like better smith wesson holding 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 smith wesson holding wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns nov 7 2016 rich duprey 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 | 591 |
<p />
<p>Warren Buffett can hand-pick the CEOs of the companies Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) owns outright, but that's not the case with the stocks in Berkshire Hathaway's portfolio. Since Buffett is a big believer that great management is key to long-term business success, let's see how employees rate the CEOs of his five biggest stock positions on Glassdoor.</p>
<p>Continue Reading Below</p>
<p>Buffett owns a massive 326 million-share stake inThe Kraft Heinz Company (NASDAQ: KHC) that's worth $29.8 billion. That makes it Berkshire Hathaway's largest stock holding, but Buffett doesn't run Kraft Heinz. CEO Bernardo Hees does, and cost-cutting appears to have taken a toll on Hees' reputation with employees, based on their 25% approval rating on Glassdoor.</p>
<p>IMAGE SOURCE: KRAFTHEINZ</p>
<p>In 2013, Berkshire Hathaway teamed up with venture-capital firm 3G Capital to buy H.J. Heinz, and in 2015, Heinz merged with Kraft Foods Group to create The Kraft Heinz Company. Hees, a partner of 3G Capital who left the top spot at Burger King to serve as Heinz's CEO in 2013, was awarded the top spot at the combined company, and at the time, his management team predicted $1.5 billion in cost savings from the merger by the end of 2017.</p>
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<p>By investors' measures, management's delivering on that promise. In the company's fourth-quarter earnings press release, cost savings were cited as a big reason operating income increased 22.8% year over year, despite slipping sales. Since its merger, KraftHeinz's operating margin has improved to the low twenties from the mid-teens, and its annualized net income has swelled to a record $3.63 billion. Unsurprisingly, that bottom-line performance has had KraftHeinz shares outperforming the S&amp;P 500, with its shares returning 21% compared with the index's 15% return.</p>
<p>Undeniably, competition in the bare-knuckle food industry is fierce, and consolidation to eke out savings is common. However, investors who believe that a company's long-term potential is best measured by happy and productive employees could be right to worry about employees' low approval rating of Hees on Glassdoor.</p>
<p>Berkshire Hathaway recently trimmed its stake in Wells Fargo (NYSE: WFC) to keep ownership south of 10%, thus avoiding more stringent regulatory requirements. Yet Berkshire Hathaway's position in Wells Fargo remains huge, at over $20 billion.</p>
<p>Buffett's stuck by his big bet on Wells Fargo, despite a high-profile scandal last year in which Wells Fargo branches created accounts for customers without their permission. Sincenews broke of the scandal, the company's replaced its CEO, but its financial results have lost momentum.</p>
<p>Paying incentives on cross-selling consumers may have boosted pay for some workers, but it's also damaged relationships with other workers.</p>
<p>In 2014, one employee wrote on Glassdoor that "cross-selling is the only focus now, firing employees who are great at their job in every area that should matter, but if the cross-selling results are not meeting the ever ridiculous quota (which continues to rise) than you may not have a job next month. Expectation for customers to say yes to cross-selling, leaving you with no real control of your job security. Stress!"</p>
<p>The ouster of former CEO John Stumpf, who once trumpeted himself as "keeper of our company's culture,"is the right move. His replacement, Tim Sloan, is a senior manager with over 25 years at the bank, so he certainly knows enough about the company's culture to make decisions necessary to get Wells Fargo back on track.However, it remains to be seen ifhe can keep employees happy and maintain that high CEO approval rating.</p>
<p>Berkshire Hathaway is a longtime investor in Coca Cola Company (NYSE: KO), and CEO Muhtar Kent has a 75% approval rating among employees, according to Glassdoor.</p>
<p>IMAGE SOURCE: COCA-COLA.</p>
<p>Kent started working for Coke in 1978, and he's been the company's CEO since 2008. He deserves a lot of credit for successfully managing Coca-Cola through the Great Recession. However, he's retiring soon, and his successor, James Quincey, is inheriting a business that's been seeing sales drop as consumers shift away from sugary drinks to healthier alternatives.</p>
<p>Quincey's been the company's president and chief operating officer, and he'll take the reins from Kent on May 1. His long tenure at Coca-Cola means he has experience, but it doesn't guarantee he'll enjoy the same support from employees that Kent did.</p>
<p>Investors should learn more about Quincey's plans for the future over the coming quarters, and until then, it's probably best to wait a while to see if the CEO approval rating changes after his first year on the job. Quincey does, however, appear to have the support of Buffett, who in December said,"I know James and like him, and believe the company has made a smart investment in its future with his selection."</p>
<p>Berkshire Hathaway's got $13.7 billion riding on IBM (NYSE: IBM) CEO Virginia Rometty's success, and she's got a lot on her plate. IBM is in the midst of transforming itself into a growth technology company again, but declining demand for legacy products is still weighing down its top line.</p>
<p>While IBM's revenue was topping $100 billion five years ago, its sales last year were below $80 billion.</p>
<p><a href="http://ycharts.com/companies/IBM/revenues_ttm" type="external">IBM Revenue (TTM)</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a></p>
<p>Rometty won IBM's top spot in 2012, and since then, she's been investing considerably into fast-growing markets like cloud computing that management dubs "strategic imperatives."</p>
<p>Her big push into growing technology markets is gaining traction, and double-digitsales growth in those markets means that their revenue now represents over 40% of companywide sales; however, there's still work to do. The company faces stiff competition from Amazon.com, MIcrosoft, and others, and despitean 11% increase in strategic imperative sales in the fourth quarter, total revenue still declined 1% year over year.</p>
<p>American Express (NYSE: AXP), the global credit card giant, is Buffett's fifth biggest position, and his interest in American Express dates all the way back to the mid-1960s. Unquestionably, it's been a big winner for him.</p>
<p>American Express has survived multiple banking crises over the decades, including the Great Recession, when bad debt and charge-offs soared, and Buffett's been an unwavering shareholder, owning a position worth $10 billion that makes him the company's biggest investor. His cost basis is about $1.3 billion, so he's got plenty of reason to be a fan of CEO Ken Chenault.</p>
<p><a href="http://ycharts.com/companies/AXP" type="external">AXP</a> data by <a href="http://ycharts.com" type="external">YCharts</a></p>
<p>Based on Glassdoor's 85% approval rating, Chenault's also got a lot of fans working for him. He'll be relying heavily on those employees this year as he continues efforts to return the company's top line to growth following the loss of an exclusivity deal with Costco. The loss of Costco revenue means Chenault's having to balance cost-cutting with increased marketing spending to maintain earnings and win more cardholders to boost sales.</p>
<p>Although Chenault faces headwinds because of Costco,Buffett appears to remain confident in Chenault's leadership, and fortunately for him, Glassdoor's rating suggests workers remain confident too. Certainly, there are some good reasons for optimism. The U.S. economy is growing, wages are up, and charge-offs and delinquency's on credit cards are down. Assuming those trends hold up, it's probably wise to bet on Chenault's success.</p>
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<p><a href="http://my.fool.com/profile/EBCapitalMarkets/info.aspx" type="external">Todd Campbell Opens a New Window.</a> has no position in any stocks mentioned. His clients may have positions in the companies mentioned.The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Costco Wholesale. The Motley Fool recommends American Express. 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 | warren buffett handpick ceos companies berkshire hathaway nyse brkanyse brkb owns outright thats case stocks berkshire hathaways portfolio since buffett big believer great management key longterm business success lets see employees rate ceos five biggest stock positions glassdoor continue reading buffett owns massive 326 millionshare stake inthe kraft heinz company nasdaq khc thats worth 298 billion makes berkshire hathaways largest stock holding buffett doesnt run kraft heinz ceo bernardo hees costcutting appears taken toll hees reputation employees based 25 approval rating glassdoor image source kraftheinz 2013 berkshire hathaway teamed venturecapital firm 3g capital buy hj heinz 2015 heinz merged kraft foods group create kraft heinz company hees partner 3g capital left top spot burger king serve heinzs ceo 2013 awarded top spot combined company time management team predicted 15 billion cost savings merger end 2017 advertisement investors measures managements delivering promise companys fourthquarter earnings press release cost savings cited big reason operating income increased 228 year year despite slipping sales since merger kraftheinzs operating margin improved low twenties midteens annualized net income swelled record 363 billion unsurprisingly bottomline performance kraftheinz shares outperforming sampp 500 shares returning 21 compared indexs 15 return undeniably competition bareknuckle food industry fierce consolidation eke savings common however investors believe companys longterm potential best measured happy productive employees could right worry employees low approval rating hees glassdoor berkshire hathaway recently trimmed stake wells fargo nyse wfc keep ownership south 10 thus avoiding stringent regulatory requirements yet berkshire hathaways position wells fargo remains huge 20 billion buffetts stuck big bet wells fargo despite highprofile scandal last year wells fargo branches created accounts customers without permission sincenews broke scandal companys replaced ceo financial results lost momentum paying incentives crossselling consumers may boosted pay workers also damaged relationships workers 2014 one employee wrote glassdoor crossselling focus firing employees great job every area matter crossselling results meeting ever ridiculous quota continues rise may job next month expectation customers say yes crossselling leaving real control job security stress ouster former ceo john stumpf trumpeted keeper companys cultureis right move replacement tim sloan senior manager 25 years bank certainly knows enough companys culture make decisions necessary get wells fargo back trackhowever remains seen ifhe keep employees happy maintain high ceo approval rating berkshire hathaway longtime investor coca cola company nyse ko ceo muhtar kent 75 approval rating among employees according glassdoor image source cocacola kent started working coke 1978 hes companys ceo since 2008 deserves lot credit successfully managing cocacola great recession however hes retiring soon successor james quincey inheriting business thats seeing sales drop consumers shift away sugary drinks healthier alternatives quinceys companys president chief operating officer hell take reins kent may 1 long tenure cocacola means experience doesnt guarantee hell enjoy support employees kent investors learn quinceys plans future coming quarters probably best wait see ceo approval rating changes first year job quincey however appear support buffett december saidi know james like believe company made smart investment future selection berkshire hathaways got 137 billion riding ibm nyse ibm ceo virginia romettys success shes got lot plate ibm midst transforming growth technology company declining demand legacy products still weighing top line ibms revenue topping 100 billion five years ago sales last year 80 billion ibm revenue ttm data ycharts opens new window rometty ibms top spot 2012 since shes investing considerably fastgrowing markets like cloud computing management dubs strategic imperatives big push growing technology markets gaining traction doubledigitsales growth markets means revenue represents 40 companywide sales however theres still work company faces stiff competition amazoncom microsoft others despitean 11 increase strategic imperative sales fourth quarter total revenue still declined 1 year year american express nyse axp global credit card giant buffetts fifth biggest position interest american express dates way back mid1960s unquestionably big winner american express survived multiple banking crises decades including great recession bad debt chargeoffs soared buffetts unwavering shareholder owning position worth 10 billion makes companys biggest investor cost basis 13 billion hes got plenty reason fan ceo ken chenault axp data ycharts based glassdoors 85 approval rating chenaults also got lot fans working hell relying heavily employees year continues efforts return companys top line growth following loss exclusivity deal costco loss costco revenue means chenaults balance costcutting increased marketing spending maintain earnings win cardholders boost sales although chenault faces headwinds costcobuffett appears remain confident chenaults leadership fortunately glassdoors rating suggests workers remain confident certainly good reasons optimism us economy growing wages chargeoffs delinquencys credit cards assuming trends hold probably wise bet chenaults success 10 stocks like better american expresswhen 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 american express wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns april 3 2017 todd campbell opens new window position stocks mentioned clients may positions companies mentionedthe motley fool owns shares recommends berkshire hathaway b shares costco wholesale motley fool recommends american express motley fool disclosure policy opens new window | 842 |
<p>(CNN) –&#160;Latest developments:</p>
<p>• 8:39 a.m.: Marseille prosecutor Brice Robin said he was not thinking of the Germanwings crash as a suicide, explaining, “When you are responsible for 150 people, I don’t call it a suicide.”</p>
<p>• 8:39: a.m.: The bodies of the victims won’t be released to families until all the DNA identification work has been done, the prosecutor said.</p>
<p>•&#160;8:20 a.m.:&#160;As of now, there’s “nothing to allow us to say that it was a terrorist attack,” Robin said.</p>
<p><a href="" type="internal">FAX BLAST SPECIAL: Audit The I.R.S</a></p>
<p>• 8:20 a.m.: Screaming could be heard on the audio recording only in the last few minutes, and death was instantaneous for those on board when the plane crashed, he said.</p>
<p>•&#160;8:20 a.m.:&#160;The name of the co-pilot was Andreas Lubitz, and he was 28 years old, Robin said.</p>
<p>• 7:55 a.m.: The co-pilot of the doomed Germanwings flight “activated the descent” of the plane when he was alone in the cockpit, Robin said Thursday. That can only be done deliberately, he said.</p>
<p>• 7:55 a.m.: The co-pilot was alive until impact, Robin said, citing the sound of steady breathing in the cockpit.</p>
<p>• 7:55 a.m.: There was a “deliberate attempt to destroy the aircraft,” Robin said.</p>
<p>Full story:</p>
<p>Audio from the mangled voice recorder of Germanwings Flight 9525 reveals the captain was locked out of the cockpit while the co-pilot appeared to make a deliberate attempt to destroy the plane, Marseille prosecutor Brice Robin said Thursday.</p>
<p>The co-pilot of the doomed Germanwings flight “activated the descent” of the plane when he was alone in the cockpit, Robin said. That can only be done deliberately, he said.</p>
<p>From what investigators have found, it seems the co-pilot “wanted to destroy the aircraft,” the prosecutor said.</p>
<p>However, as of now, there’s “nothing to allow us to say that it was a terrorist attack,” he said.</p>
<p>Robin said the co-pilot was a German national and not on any terrorism list. He named him as Andreas Lubitz.</p>
<p>When a reporter asked Robin whether he knew Lubitz’s religion, Robin said that he did not know.</p>
<p>The most plausible explanation of the crash is that the co-pilot “through deliberate abstention, refused to open the cabin door … to the chief pilot, and used the button” to cause the plane to lose altitude, Robin said.</p>
<p>Screaming could be heard on the audio recording only in the last few minutes, and death was instantaneous for those on board, he said.</p>
<p>Robin said he was not thinking of the Germanwings crash as a suicide, explaining: “When you are responsible for 150 people, I don’t call it a suicide.”</p>
<p>Bodies won’t be released yet</p>
<p>Robin said he did not know if the co-pilot planned his actions in advance, saying only that he “took advantage” of the pilot leaving the cockpit.</p>
<p>The co-pilot was “fully qualified to pilot the aircraft on his own,” Robin added. The audio recording showed his breathing to be steady, with no sign that he had a heart attack or other medical issue.</p>
<p>He only had about 100 hours of experience on the type of aircraft he was flying, but he had all the necessary certifications and qualifications to pilot the aircraft alone, the prosecutor said.</p>
<p>The bodies of the Germanwings crash victims will not be released until all DNA identification work has been done — a process likely to last several weeks, Robin said.</p>
<p>Robin said he had told the families of the crash victims all the same information he was telling reporters at the news conference.</p>
<p>The families of the two pilots are also in France but are not in the same place as the relatives, he said.</p>
<p>Robin emphasized that his conclusions were preliminary.</p>
<p>‘Terribly shocking’ revelation</p>
<p>The revelation about the cockpit audio was first reported by The New York Times and Agence France-Presse.</p>
<p>“You can hear he is trying to smash the door down,” a senior military official involved in the investigation told The New York Times.</p>
<p>“We don’t know yet the reason why one of the guys went out. But what is sure is that at the very end of the flight, the other pilot is alone and does not open the door.”</p>
<p>AFP also reported that a pilot was locked out, citing a source close to the investigation.</p>
<p>Lufthansa, the parent company of low-cost airline Germanwings, said then it was looking into the reports.</p>
<p>“We have no information from the bodies investigating the incident that would corroborate the report in The New York Times,” spokesman Boris Ogursky said. “We will not participate in speculation, but we will follow up on the matter.”</p>
<p>The Times’ report is a “terribly shocking revelation,” CNN aviation analyst Peter Goelz said. But he and other experts cautioned that it’s still unclear what could have been going on inside the cockpit.</p>
<p>An array of theories</p>
<p>Possibilities range from a medical emergency to something more nefarious, such as a suicide mission, CNN aviation analysts said before the prosecutor’s news conference.</p>
<p>Geoffrey Thomas, editor-in-chief of airlineratings.com, said the cockpit door has three positions, citing A320 captains and the aircraft manual — unlocked, normal and locked.</p>
<p>The door would usually be in the “normal” position, but if the Times report is true, it would appear that after one of the pilots left the cockpit, it was switched to the “locked” position. This prevents the other pilot from using a keypad and emergency code to get in from the outside, he said.</p>
<p>The chances of this happening accidentally if the pilot became incapacitated, at the same time as him knocking the side stick to put the plane into a dive, would appear to be “beyond the realms of mathematical possibility,” Thomas said.</p>
<p>Officials previously said they hadn’t ruled out terrorism, but that it seems unlikely.</p>
<p>Second ‘black box’ still lost</p>
<p>Finding the plane’s second “black box” will also be critical to understanding the mystery of what went on inside the jet.</p>
<p>That box, the flight data recorder, hasn’t been found yet, but Lufthansa CEO Carsten Spohr said Wednesday that there’s a high probability it will be.</p>
<p>Senior executives from Germanwings and Lufthansa are also due to give a news conference Thursday.</p>
<p>The Germanwings media office told CNN the captain of Flight 9525 had more than 6,000 hours of flight time. He has been with Germanwings since May 2014 and had worked with Lufthansa and Condor before then.</p>
<p>The co-pilot has been with Germanwings since September 2013 and had completed 630 hours of flight time, the media office said. The co-pilot had trained at the Lufthansa flight training center in Bremen, Germany.</p>
<p>A dangerous search</p>
<p>Relatives and friends of the victims embarked on an emotional trip Thursday: traveling close to the mountainous spot where their loved ones perished.</p>
<p>Special Lufthansa flights from Germany and Spain are taking relatives and friends of the victims to southern France. The airline has offered to take them as close to the crash site as possible “within the safety parameters of the investigation,” Lufthansa said in a statement.</p>
<p>They are first expected to stop in the town of Le Vernet for a “moment of reverence,”&#160;Seyne-les-Alpes Mayor Francis Hermitte said.</p>
<p>They will then carry on to the village of Seyne-les-Alpes, which has become a staging post for the recovery operation. A further ceremony is expected there, Hermitte said.</p>
<p>He said he anticipated 200 to 300 people would come to the area Thursday, not just relatives of the victims but also people close to the families.</p>
<p>Most are not expected to stay overnight, he said. But in case they do, he said, local residents have spontaneously offered accommodations for them to stay.</p>
<p>While some human remains have been recovered from the crash scene, many have not. And the task is treacherous for search crews.</p>
<p>The plane crashed in the French Alps, where slopes are steep and the weather has been icy.</p>
<p>The only way workers could get to the site was to drop from helicopters. Jouty, the head of the French team leading the investigation, said they had to be together for safety.</p>
<p>Victims from 18 countries&#160;</p>
<p>The doomed flight was traveling from Barcelona, Spain, to Dusseldorf, Germany, when it crashed Tuesday.</p>
<p>There were 150 people from 18 countries on board.</p>
<p>Teams have begun the daunting task of identifying the victims’ bodies but caution that it could take time to complete.</p>
<p>Clues in the debris</p>
<p>Investigators are still trying to piece together what caused the crash.</p>
<p>Remi Jouty, head of the BEA, the French aviation investigative arm leading the probe, said the debris suggests the plane hit the ground and then broke apart, instead of exploding in flight.</p>
<p>Radar followed the plane “virtually to the point of impact,” Jouty said.</p>
<p>FBI agents based in France, Germany and Spain are looking through intelligence sources and cross-referencing the passenger manifest, two senior law enforcement officials said.</p>
<p>So far, one official said, the search hasn’t turned up anything that “stands out” or anything linking the passengers to criminal activity.</p>
<p>http://www.cnn.com/2015/03/26/europe/france-germanwings-plane-crash-main/index.html</p> | true | 0 | cnn 160latest developments 839 marseille prosecutor brice robin said thinking germanwings crash suicide explaining responsible 150 people dont call suicide 839 bodies victims wont released families dna identification work done prosecutor said 160820 am160as theres nothing allow us say terrorist attack robin said fax blast special audit irs 820 screaming could heard audio recording last minutes death instantaneous board plane crashed said 160820 am160the name copilot andreas lubitz 28 years old robin said 755 copilot doomed germanwings flight activated descent plane alone cockpit robin said thursday done deliberately said 755 copilot alive impact robin said citing sound steady breathing cockpit 755 deliberate attempt destroy aircraft robin said full story audio mangled voice recorder germanwings flight 9525 reveals captain locked cockpit copilot appeared make deliberate attempt destroy plane marseille prosecutor brice robin said thursday copilot doomed germanwings flight activated descent plane alone cockpit robin said done deliberately said investigators found seems copilot wanted destroy aircraft prosecutor said however theres nothing allow us say terrorist attack said robin said copilot german national terrorism list named andreas lubitz reporter asked robin whether knew lubitzs religion robin said know plausible explanation crash copilot deliberate abstention refused open cabin door chief pilot used button cause plane lose altitude robin said screaming could heard audio recording last minutes death instantaneous board said robin said thinking germanwings crash suicide explaining responsible 150 people dont call suicide bodies wont released yet robin said know copilot planned actions advance saying took advantage pilot leaving cockpit copilot fully qualified pilot aircraft robin added audio recording showed breathing steady sign heart attack medical issue 100 hours experience type aircraft flying necessary certifications qualifications pilot aircraft alone prosecutor said bodies germanwings crash victims released dna identification work done process likely last several weeks robin said robin said told families crash victims information telling reporters news conference families two pilots also france place relatives said robin emphasized conclusions preliminary terribly shocking revelation revelation cockpit audio first reported new york times agence francepresse hear trying smash door senior military official involved investigation told new york times dont know yet reason one guys went sure end flight pilot alone open door afp also reported pilot locked citing source close investigation lufthansa parent company lowcost airline germanwings said looking reports information bodies investigating incident would corroborate report new york times spokesman boris ogursky said participate speculation follow matter times report terribly shocking revelation cnn aviation analyst peter goelz said experts cautioned still unclear could going inside cockpit array theories possibilities range medical emergency something nefarious suicide mission cnn aviation analysts said prosecutors news conference geoffrey thomas editorinchief airlineratingscom said cockpit door three positions citing a320 captains aircraft manual unlocked normal locked door would usually normal position times report true would appear one pilots left cockpit switched locked position prevents pilot using keypad emergency code get outside said chances happening accidentally pilot became incapacitated time knocking side stick put plane dive would appear beyond realms mathematical possibility thomas said officials previously said hadnt ruled terrorism seems unlikely second black box still lost finding planes second black box also critical understanding mystery went inside jet box flight data recorder hasnt found yet lufthansa ceo carsten spohr said wednesday theres high probability senior executives germanwings lufthansa also due give news conference thursday germanwings media office told cnn captain flight 9525 6000 hours flight time germanwings since may 2014 worked lufthansa condor copilot germanwings since september 2013 completed 630 hours flight time media office said copilot trained lufthansa flight training center bremen germany dangerous search relatives friends victims embarked emotional trip thursday traveling close mountainous spot loved ones perished special lufthansa flights germany spain taking relatives friends victims southern france airline offered take close crash site possible within safety parameters investigation lufthansa said statement first expected stop town le vernet moment reverence160seynelesalpes mayor francis hermitte said carry village seynelesalpes become staging post recovery operation ceremony expected hermitte said said anticipated 200 300 people would come area thursday relatives victims also people close families expected stay overnight said case said local residents spontaneously offered accommodations stay human remains recovered crash scene many task treacherous search crews plane crashed french alps slopes steep weather icy way workers could get site drop helicopters jouty head french team leading investigation said together safety victims 18 countries160 doomed flight traveling barcelona spain dusseldorf germany crashed tuesday 150 people 18 countries board teams begun daunting task identifying victims bodies caution could take time complete clues debris investigators still trying piece together caused crash remi jouty head bea french aviation investigative arm leading probe said debris suggests plane hit ground broke apart instead exploding flight radar followed plane virtually point impact jouty said fbi agents based france germany spain looking intelligence sources crossreferencing passenger manifest two senior law enforcement officials said far one official said search hasnt turned anything stands anything linking passengers criminal activity httpwwwcnncom20150326europefrancegermanwingsplanecrashmainindexhtml | 809 |
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<p>RUSH: “A .50-caliber rifle found at Joaquin ‘El Chapo’ Guzman’s hideout in Mexico was funneled through [Obama’s] gun-smuggling operation known as Fast and Furious, sources confirmed Tuesday to Fox News. … Former Attorney General Eric Holder was held in contempt after he refused to divulge documents for a congressional investigation into the matter,” if you recall.</p>
<p>“A .50-caliber is a massive rifle that can stop a car, or as it was intended, take down a helicopter.” El Chapo was found to have one in his possession, and it was part of Obama’s Fast and Furious operation. Now, for those of you new to the program or people with short memories, let me give you the CliffNotes version of Fast and Furious. It is something that Obama and Eric Holder initiated in their first term. Eric Holder was the attorney general. They desperately, like all liberals, wanted massive new gun control legislation or executive orders.</p>
<p>They wanted to get guns out of the hands of law-abiding citizens, because, by definition, that’s the only people you can take them away from. By definition. You’re not gonna get guns out of the hands of criminals because, by definition, criminals are breaking the law and will do whatever it takes to get a gun. The only guns you can go get are held by the law-abiding. But it’s a rite of passage, an article of faith in liberalism that guns are bad in the hands of people. The Second Amendment’s stupid and folly.</p>
<p>It shouldn’t be there, and we gotta go get people’s guns.</p>
<p>So we hatched a program, which was actually something that got started during the Bush administration but was abandoned. What Obama and Holder did was build on the Bush program. The Bush program was nothing at all like Fast and Furious ended up to be. It just provided the foundation. And it was very simple. The Obama administration allowed guns like this — assault rifles, .50 caliber rifles, massively huge/powerful weapons — to be sold in gun stores in the Southwest (Phoenix, for example) and they were then allowed to be taken across the border into Mexico.</p>
<p>The plan was — it really was — that these guns purchased legally in American gun stores, would then be used in horrible crimes south of the border. When these horrible crimes took place featuring much murder and mayhem, the news media was supposed to react with outrage, report the details, and focus on the fact that this wouldn’t have happened if it weren’t for gun laws in America which makes the sale of these weapons perfectly legal. So mayhem was supposed to ensue after the Regime allowed these guns to cross the border after having been sold.</p>
<p>The desired result was that the American people would be so mad and express such outrage that they would stand up in unison and demand that the government do something about all these guns. That didn’t happen. Fast and Furious was an absolute failure because the Regime continually then, as now, misunderstands the American people and the relationship they have with the Second Amendment and the role of guns legally in people’s lives. So it didn’t happen, and the program , after all this, was then discovered, and it had a name: Fast and Furious.</p>
<p>And the short version is that when it was discovered for what it was, people such as me here on this program and many other, sstarted describing it. The Regime started to deny. “No, no, no. It didn’t happen, it’s crazy!” They made it sound like there was nothing to it. I think a border agent ended up dead as a result of Fast and Furious. There was one American death, and it was a Border Patrol agent. So, anyway, it was a total bomb from the Regime standpoint. The guns are still in the hands of criminals, as the evidence in this story.</p>
<p>A .50 caliber rifle purchased in an American gun store ends up in the arsenal of El Chapo, who happens to be the drug kingpin of Mexico. Did you see they discovered another tunnel? Some people were digging another tunnel this prison the other day. Just right out in the middle of the day, they found some people digging another tunnel to get the guy out of there. They weren’t even waiting to do it under cover of darkness. And then there’s a companion story from The Politico: An Obama-appointed federal judge has rejected “Obama’s assertion of executive privilege over documents pertaining to Operation Fast and Furious…”</p>
<p>“US District Court Judge Amy Berman Jackson ruled Tuesday that the Justice Department’s public disclosures … undercut Obama’s executive privilege claim” to deny Congress access to records pertaining to the operation, which is essentially… It was a gunrunning operation run by the United States government to get guns into the hands of criminals in Mexico so they could raise hell, mayhem, and cause outrage in the American media that was supposed to bleed over to the American public, and public would demand something get done.</p>
<p>Now, people want to see the records of the program. Obama says, “No, no, no, no. You guys in Congress don’t have the right! It’s executive privilege.”</p>
<p>And the judge told him to go pound sand. One of the judges he appointed. By the way, Fast and Furious involved thousands of weapons. Not just a handful of guns, not just a few .50 caliber rifles, but thousands of guns were allowed to cross the border. There’s nothing “alleged” about Fast and Furious. It did allow thousands of weapons to be sold to drug dealers in Mexico. The only question is whether this was the sole purpose of the program.</p>
<p>A lot of experts think that Obama wanted the drug cartels to commit such heinous crimes with these US weapons, so the public would demand more gun control laws.</p>
<p>Count me in that camp.</p>
<p>That’s what people are trying to get to the bottom of.</p> | true | 0 | rush 50caliber rifle found joaquin el chapo guzmans hideout mexico funneled obamas gunsmuggling operation known fast furious sources confirmed tuesday fox news former attorney general eric holder held contempt refused divulge documents congressional investigation matter recall 50caliber massive rifle stop car intended take helicopter el chapo found one possession part obamas fast furious operation new program people short memories let give cliffnotes version fast furious something obama eric holder initiated first term eric holder attorney general desperately like liberals wanted massive new gun control legislation executive orders wanted get guns hands lawabiding citizens definition thats people take away definition youre gon na get guns hands criminals definition criminals breaking law whatever takes get gun guns go get held lawabiding rite passage article faith liberalism guns bad hands people second amendments stupid folly shouldnt got ta go get peoples guns hatched program actually something got started bush administration abandoned obama holder build bush program bush program nothing like fast furious ended provided foundation simple obama administration allowed guns like assault rifles 50 caliber rifles massively hugepowerful weapons sold gun stores southwest phoenix example allowed taken across border mexico plan really guns purchased legally american gun stores would used horrible crimes south border horrible crimes took place featuring much murder mayhem news media supposed react outrage report details focus fact wouldnt happened werent gun laws america makes sale weapons perfectly legal mayhem supposed ensue regime allowed guns cross border sold desired result american people would mad express outrage would stand unison demand government something guns didnt happen fast furious absolute failure regime continually misunderstands american people relationship second amendment role guns legally peoples lives didnt happen program discovered name fast furious short version discovered people program many sstarted describing regime started deny didnt happen crazy made sound like nothing think border agent ended dead result fast furious one american death border patrol agent anyway total bomb regime standpoint guns still hands criminals evidence story 50 caliber rifle purchased american gun store ends arsenal el chapo happens drug kingpin mexico see discovered another tunnel people digging another tunnel prison day right middle day found people digging another tunnel get guy werent even waiting cover darkness theres companion story politico obamaappointed federal judge rejected obamas assertion executive privilege documents pertaining operation fast furious us district court judge amy berman jackson ruled tuesday justice departments public disclosures undercut obamas executive privilege claim deny congress access records pertaining operation essentially gunrunning operation run united states government get guns hands criminals mexico could raise hell mayhem cause outrage american media supposed bleed american public public would demand something get done people want see records program obama says guys congress dont right executive privilege judge told go pound sand one judges appointed way fast furious involved thousands weapons handful guns 50 caliber rifles thousands guns allowed cross border theres nothing alleged fast furious allow thousands weapons sold drug dealers mexico question whether sole purpose program lot experts think obama wanted drug cartels commit heinous crimes us weapons public would demand gun control laws count camp thats people trying get bottom | 512 |
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<p>Image source: Getty Images.</p>
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<p>Pfizer Inc. (NYSE: PFE) came up strong last quarter, topping analysts' estimates by a hefty margin. In particular, the world's second biggest drugmaker by revenue is gaining traction in the therapeutic market of cancer -- one of the most intriguing and most lucrative areas in medicine. Pfizer's global oncology revenues soared 54% year over year to $1.1 billion last quarter, driven in large part by strong sales of Pfizer's first-in-class cancer treatment, Ibrance.</p>
<p>Ibrance left thelaunch pad a year and a half ago, but the drug has already zoomed to theNo. 1 spot as the preferred treatment for advanced breast cancer. The new drug hauled in $514 million last quarter, meaning it isclearly going to break into billion-dollar blockbuster territory this year. Ibrance has been a huge win for Pfizer, but that's not all the company is working on in oncology. Indeed, Pfizer's cancer therapy pipeline is deep, and the company appears to be on track to be a driving force in oncology going forward.</p>
<p>A scant decade ago,Pfizer wasn't even a player in cancer therapy.Butwith Lipitor and Viagra -- the two drugs bringing in the biggest chunk of its sales at the time -- headed for the <a href="http://www.fool.com/knowledge-center/what-is-a-patent-cliff.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">patent cliff Opens a New Window.</a>,the company switched gears andmade a bold decision to tackle cancer witha two-pronged attack. The first phase includeddeveloping traditional chemotherapy agents, but the follow-on R&amp;D wasmore important: researching a promising new class called immuno-oncology.</p>
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<p>Immuno-oncologydrugsstimulate the immune system to mount a stronger defense against cancer through a variety of mechanisms.Ibrance is thefirst in a brand new subgroup of these drugs,CDK4/6 inhibitors, whichplay a vital role inhibiting the growth of tumor cells. While both Novartisand Eli Lilly have similar drugs in development, Pfizer's leadjust got bigger a few days ago,when one of the contendershit a pothole.</p>
<p>What happened? Atrial monitoring committee decided Lilly's late-stage CDK4/6inhibitor, ademaciclib, had fallen short of its efficacy criteria necessary for halting the trial early. That puts ademaciclib way behind Ibrance, sinceLilly probably won't be able to launch the drug until 2018.</p>
<p>But Pfizer's bid to become an oncology powerhouse goes far beyond Ibrance. The company has an extremely broad portfolio of immuno-oncology therapies, and even a collaborative cancer research strategy with a former big competitor, Merck &amp; Co. Inc. (NYSE: MRK).</p>
<p>Pfizer's partnership with Merck revolves around exploring the potential of using the companies' drugs in combination, or "cocktail," treatments. Currently, most advanced cancer meds only prolong life for a few months. But the new "cocktails" promise to add years to survival, and perhaps even someday provide a cure. According to Liz Barrett, Pfizer's president of global oncology, "Ultimately, many researchers believe that to cure cancer you'll have to have combinations, and we feel like we have the broadest portfolio of immuno-oncology compounds."</p>
<p>Barrett also made it clear that Pfizer's new recipe for success will focus highly on collaboration. In particular, she claims the Merck partnership has already helped both companies up their game in cancer. "We have to hold each other accountable, which is a good thing," she said. "That's really the foundation of our [immuno-oncology] strategy."</p>
<p>One example is Inlyta, Pfizer's kidney cancer chemotherapy that was approved in 2012. As part of an older class of drugs, Inlyta is already facing competition from new immuno-oncology drugs. But Pfizer isn't trying to beat those meds -- it will instead join them. Inlyta is being studied as a combo drug with both Pfizer's own drugs and Keytruda, the blockbuster immunotherapy from Merck.</p>
<p>Given the excitement around cocktail therapies, Barrett sees a huge role for Inlyta. "We expect it to be the preferred agent for combinations," she said.</p>
<p>Pfizer has seen both ups and downs in its quest to cure cancer, but it has ultimately ended up with a very strong pipeline in the area. Currently, the company has over 25 clinical trials in oncology, including more than a dozen compounds in stage 3, where the chance of FDA approval is greatest. Targeted therapies that focus on specific subgroups of patients now make up about 46% of all cancer treatment sales, a huge leap from 11% just a decade ago. This bodes well for FDA approval of Pfizer's targeted drug candidates.</p>
<p>The upshot is that Ashtyn Evans, an analyst with Edward Jones,thinks Pfizer could increase cancer drug sales to about 10% of revenue by 2020, up from a mere 4% in annual revenue last year.</p>
<p>Beyond the numbers, there's another story. The newer targeted drugs from companies such as Pfizer are generally less toxic and provide better patient outcomes, according to the National Cancer Institute. And as cancer treatment moves away from a one-size-fits-all approach to more options for personalized treatment, Pfizer clearly hopes it will someday be leading the way to dramatic improvements for all cancer patients.</p>
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<p><a href="http://my.fool.com/profile/CherylSwanson/info.aspx" type="external">Cheryl Swanson Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading pfizer inc nyse pfe came strong last quarter topping analysts estimates hefty margin particular worlds second biggest drugmaker revenue gaining traction therapeutic market cancer one intriguing lucrative areas medicine pfizers global oncology revenues soared 54 year year 11 billion last quarter driven large part strong sales pfizers firstinclass cancer treatment ibrance ibrance left thelaunch pad year half ago drug already zoomed theno 1 spot preferred treatment advanced breast cancer new drug hauled 514 million last quarter meaning isclearly going break billiondollar blockbuster territory year ibrance huge win pfizer thats company working oncology indeed pfizers cancer therapy pipeline deep company appears track driving force oncology going forward scant decade agopfizer wasnt even player cancer therapybutwith lipitor viagra two drugs bringing biggest chunk sales time headed patent cliff opens new windowthe company switched gears andmade bold decision tackle cancer witha twopronged attack first phase includeddeveloping traditional chemotherapy agents followon rampd wasmore important researching promising new class called immunooncology advertisement immunooncologydrugsstimulate immune system mount stronger defense cancer variety mechanismsibrance thefirst brand new subgroup drugscdk46 inhibitors whichplay vital role inhibiting growth tumor cells novartisand eli lilly similar drugs development pfizers leadjust got bigger days agowhen one contendershit pothole happened atrial monitoring committee decided lillys latestage cdk46inhibitor ademaciclib fallen short efficacy criteria necessary halting trial early puts ademaciclib way behind ibrance sincelilly probably wont able launch drug 2018 pfizers bid become oncology powerhouse goes far beyond ibrance company extremely broad portfolio immunooncology therapies even collaborative cancer research strategy former big competitor merck amp co inc nyse mrk pfizers partnership merck revolves around exploring potential using companies drugs combination cocktail treatments currently advanced cancer meds prolong life months new cocktails promise add years survival perhaps even someday provide cure according liz barrett pfizers president global oncology ultimately many researchers believe cure cancer youll combinations feel like broadest portfolio immunooncology compounds barrett also made clear pfizers new recipe success focus highly collaboration particular claims merck partnership already helped companies game cancer hold accountable good thing said thats really foundation immunooncology strategy one example inlyta pfizers kidney cancer chemotherapy approved 2012 part older class drugs inlyta already facing competition new immunooncology drugs pfizer isnt trying beat meds instead join inlyta studied combo drug pfizers drugs keytruda blockbuster immunotherapy merck given excitement around cocktail therapies barrett sees huge role inlyta expect preferred agent combinations said pfizer seen ups downs quest cure cancer ultimately ended strong pipeline area currently company 25 clinical trials oncology including dozen compounds stage 3 chance fda approval greatest targeted therapies focus specific subgroups patients make 46 cancer treatment sales huge leap 11 decade ago bodes well fda approval pfizers targeted drug candidates upshot ashtyn evans analyst edward jonesthinks pfizer could increase cancer drug sales 10 revenue 2020 mere 4 annual revenue last year beyond numbers theres another story newer targeted drugs companies pfizer generally less toxic provide better patient outcomes according national cancer institute cancer treatment moves away onesizefitsall approach options personalized treatment pfizer clearly hopes someday leading way dramatic improvements cancer patients 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 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 | 593 |
<p>After their health care bill collapsed in spectacular fashion last week, Republican congressional leaders insist they won’t make the same mistakes with tax reform, the other big-ticket promise they made to voters, and to which they will turn next.</p>
<p>But there are enough similarities between the two issues that lawmakers are worried.</p>
<p>Republicans go into the debate with only vague principles, have struggled to pique Democrats’ interest and have received conflicting signals from the White House about priorities.</p>
<p>Still searching for their first major legislative win under President Trump, Republican leaders said they have to surmount those problems and deliver reform.</p>
<p>“We looked at health care and said, ‘Let’s make sure we do tax reform better and differently,’” House Speaker Paul D. Ryan, Wisconsin Republican, said in an interview that aired Sunday on Fox News.</p>
<p>He joined other top Republicans on Capitol Hill, as well as the Treasury secretary and White House economic adviser, to release a broad set of goals and a vague timeline for tax reform and promised to put legislation through committees in the fall.</p>
<p>Mr. Ryan and Ways and Means Committee Chairman Kevin Brady, Texas Republican, also abandoned their push for a $1 trillion tax on imports.</p>
<p>But some members of the tax-writing Ways and Means Committee said dropping the border adjustment raises questions about how to make up an estimated $1 trillion in revenue that Republicans were going to use to pay for lowering other rates.</p>
<p>“As I’ve always said, without border adjustment you’re going to have a lot higher rates, and I think it makes it complicated to solve the overseas issues,” said Rep. Devin Nunes, California Republican and a Ways and Means Committee member.</p>
<p>Republicans were also counting on repealing Obamacare first, including erasing $1 trillion in taxes on items such as investment income to pay for the law.</p>
<p>Axing those taxes, as part of a bill that lowered the overall deficit, would significantly lower the federal budget baseline and give leaders more wiggle room on the ultimate cost of their tax package.</p>
<p>That option is no longer viable because of the failure of the health care legislation last week.</p>
<p>“If the representations we got earlier in the year are true that you cannot have tax reform without health care reform, then it gets harder,” said Rep. Mo Brooks, Alabama Republican.</p>
<p>Mr. Brady said Congress could try to repeal Obamacare levies as part of the tax code overhaul, but that would disrupt what is already a tightrope walk.</p>
<p>“I want those $1 trillion of taxes out of the economy — that’s what that repeal bill is designed to do,” Mr. Brady said. “We can’t afford to import those into tax reform [because] the result would be higher tax rates for more families and local businesses.”</p>
<p>Under fast-track budget rules, Republicans can pass a broad tax code overhaul with a simple majority in the House and Senate, bypassing a Democratic filibuster, as long as it doesn’t add to the deficit in the long run.</p>
<p>But a revenue-neutral bill almost certainly means a much more limited set of reforms.</p>
<p>Rep. James B. Renacci, Ohio Republican and another Ways and Means Committee member, said he hasn’t given up hope for a big deal, even without the extra room that could have been bought with the border adjustment tax or Obamacare repeal.</p>
<p>“I think we need to come up with something where we [can] get enough votes to pass it and move it forward even if that means it’s not revenue-neutral in some cases,” he said.</p>
<p>First up for Republicans, however, will be passing a budget so they have a framework for tax reform.</p>
<p>A plan passed the House Budget Committee this month but has stalled as committee Chairman Diane Black searches for support.</p>
<p>“We look forward to having continued conversations with Chairman Black on the budget, but there are still not enough votes to pass” it, Rep. Mark Meadows, the North Carolina Republican who chairs the influential House Freedom Caucus, said last week.</p>
<p>Lawmakers need a budget vehicle in order to unlock fast-track procedures known as reconciliation, which can avoid a potential Senate filibuster — though it also places limits on what can be done legislatively.</p>
<p>Republicans found that out during the Obamacare debate, which was also conducted under reconciliation. Rank-and-file Republicans chafed at having to scratch some ideas because they didn’t fit under the strict rules governing budget debates.</p>
<p>Republicans also have spent essentially half the year trying to pass health care reform, adding pressure to deliver a legislative win and have something they can take back to voters for the midterm elections next year.</p>
<p>“We’re just going straight ahead,” Mr. Brady said. “Despite the setback, the letdown on health care, I think people are awfully excited about being able to unify behind this in August and through the fall.”</p>
<p>Democrats have been left out of tax negotiations. Republican leaders saying the two parties can’t even agree on goals. Republicans say they want a more competitive code but that Democrats want to use a tax overhaul to soak the rich and increase government revenue.</p>
<p>“Republicans are dripping tax ideas out like a leaky faucet with no specifics to back them up,” said Sen. Ron Wyden of Oregon, the top Democrat on the tax-writing Finance Committee. “We need sustainable, comprehensive tax reform, not a massive tax cut for the wealthy.”</p>
<p>Copyright © 2018 The Washington Times, LLC. <a href="http://license.icopyright.net/3.7280?icx_id=/news/2017/jul/30/republican-tax-reform-rhetoric-echoes-obamacare-re/" type="external">Click here for reprint permission</a>.</p>
<p>&#160;</p> | true | 0 | health care bill collapsed spectacular fashion last week republican congressional leaders insist wont make mistakes tax reform bigticket promise made voters turn next enough similarities two issues lawmakers worried republicans go debate vague principles struggled pique democrats interest received conflicting signals white house priorities still searching first major legislative win president trump republican leaders said surmount problems deliver reform looked health care said lets make sure tax reform better differently house speaker paul ryan wisconsin republican said interview aired sunday fox news joined top republicans capitol hill well treasury secretary white house economic adviser release broad set goals vague timeline tax reform promised put legislation committees fall mr ryan ways means committee chairman kevin brady texas republican also abandoned push 1 trillion tax imports members taxwriting ways means committee said dropping border adjustment raises questions make estimated 1 trillion revenue republicans going use pay lowering rates ive always said without border adjustment youre going lot higher rates think makes complicated solve overseas issues said rep devin nunes california republican ways means committee member republicans also counting repealing obamacare first including erasing 1 trillion taxes items investment income pay law axing taxes part bill lowered overall deficit would significantly lower federal budget baseline give leaders wiggle room ultimate cost tax package option longer viable failure health care legislation last week representations got earlier year true tax reform without health care reform gets harder said rep mo brooks alabama republican mr brady said congress could try repeal obamacare levies part tax code overhaul would disrupt already tightrope walk want 1 trillion taxes economy thats repeal bill designed mr brady said cant afford import tax reform result would higher tax rates families local businesses fasttrack budget rules republicans pass broad tax code overhaul simple majority house senate bypassing democratic filibuster long doesnt add deficit long run revenueneutral bill almost certainly means much limited set reforms rep james b renacci ohio republican another ways means committee member said hasnt given hope big deal even without extra room could bought border adjustment tax obamacare repeal think need come something get enough votes pass move forward even means revenueneutral cases said first republicans however passing budget framework tax reform plan passed house budget committee month stalled committee chairman diane black searches support look forward continued conversations chairman black budget still enough votes pass rep mark meadows north carolina republican chairs influential house freedom caucus said last week lawmakers need budget vehicle order unlock fasttrack procedures known reconciliation avoid potential senate filibuster though also places limits done legislatively republicans found obamacare debate also conducted reconciliation rankandfile republicans chafed scratch ideas didnt fit strict rules governing budget debates republicans also spent essentially half year trying pass health care reform adding pressure deliver legislative win something take back voters midterm elections next year going straight ahead mr brady said despite setback letdown health care think people awfully excited able unify behind august fall democrats left tax negotiations republican leaders saying two parties cant even agree goals republicans say want competitive code democrats want use tax overhaul soak rich increase government revenue republicans dripping tax ideas like leaky faucet specifics back said sen ron wyden oregon top democrat taxwriting finance committee need sustainable comprehensive tax reform massive tax cut wealthy copyright 2018 washington times llc click reprint permission 160 | 549 |
<p>Once dubbed a crisis currency, the euro has outperformed its peers against the dollar and investors are betting there are gains to come.</p>
<p>The euro is up 10% against the greenback so far this year, as the local economy rebounds and the threat from populist politicians calling for the currency zone's demise recedes.</p>
<p>Continue Reading Below</p>
<p>With the risk of breakup fading, analysts are asking whether the currency can reclaim some of the global standing it held before 2009 and the sovereign debt crisis, not least as central banks place more of the currency into their reserves.</p>
<p>Multiple indicators suggest that investors are more positive about the euro than for many years and on Wednesday the currency traded at $1.149, its highest level in over a year.</p>
<p>"Political threats to the euro have definitely reduced its status, and from a historical perspective the rest of the world is underweight Europe," said Carl Hammer, head of global macro and foreign exchange research at Swedish bank SEB.</p>
<p>Three-month euro-dollar risk reversals, which measure the cost of hedging against drops in currencies, broke into positive territory at the end of June for the first time since at least 2010. A positive figure suggests investors are no longer asking to be paid a premium to hold euros, a sharp change from the recent past.</p>
<p>Investors also have a net long position in the euro--a bet that the currency will appreciate--for the first time in three years. The U.S. Commodity Futures Trading Commission data shows investors held 77,464 more long than short contracts on the euro in the week to July 3.</p>
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<p>The European Union has long hankered for a greater role in global markets. As far back as the 1960s, Valéry Giscard d'Estaing, France's then finance minister, complained of the U.S. dollar's "exorbitant privilege" as the pre-eminent reserve currency. Following its launch 18 years ago, the single currency reached a high of around $1.60 in 2008.</p>
<p>But the currency has lost ground even since the sovereign debt crisis ended in 2012.</p>
<p>Its share of daily turnover in foreign exchange markets has dropped from 39% in 2010 to 31% in 2016, according to the Bank for International Settlements.</p>
<p>The European Central Bank estimates that the share of international bonds denominated in euros has dropped from as high as 29.3% in 2004 to 22% at the end of last year.</p>
<p>In the first quarter of the year, slightly less than 20% of global official foreign exchange reserves were held in euros, according to the International Monetary Fund. At its peak in 2009, the euro's share of international reserves reached nearly 28%.</p>
<p>Aside from prestige, a greater international role would help eurozone companies raise funds while potentially reducing exchange rate volatility. The dollar's role as the most important global reserve currency has typically been seen as a boon for the U.S.</p>
<p>The lingering risk that the currency won't survive has reduced the euro's position in foreign currency reserves held by governments and central banks while putting off some investors.</p>
<p>"If you're a reserve manager, say in Asia, you would think twice about investing over the very long term in a currency that might not exist in five years," said Dhaval Joshi, chief European strategist at BCA Research.</p>
<p>That risk has abated recently. Elections in the Netherlands and France saw pro-EU candidates win convincingly, and support for Germany's main anti-euro party has dwindled.</p>
<p>Expectations that a country will leave the eurozone have fallen. Investors currently assign an 8.6% probability to a country exiting the eurozone in the next 12 months, against over 25% early in the year, according to the Sentix euro breakup index, which polls investors on their expectations for the bloc.</p>
<p>The brighter outlook for regional growth, which has recently outstripped the U.S., helps the euro on multiple fronts. It reduces the risk of breakup by helping to bolster the weaker southern European economies, whose debts and stagnant growth helped to fuel the sovereign debt crisis. It makes the region more attractive for outside investors.</p>
<p>It also means the ECB will be quicker to jettison the bond-buying and negative interest rate policies that have capped the currency's gains. Such so-called quantitative easing, QE, policies keep bond yields low, reducing long-term returns for investors and stemming the flow of foreign exchange that would boost the euro.</p>
<p>It may even see other central banks stock up their reserves.</p>
<p>"It could be that the first quarter represents something close to the low in the euro's share of reserves," said Stephen Saywell, head of foreign exchange strategy at BNP Paribas.</p>
<p>To be sure, factors such as less monetary stimulus and a brighter economy could end up hurting the euro if the pace of both disappoint. The region's anti-euro politicians could also stage a comeback.</p>
<p>But the prospect of higher interest rates and other factors have already led many analysts to hike their forecasts for the euro in the short term.</p>
<p>Earlier this year Deutsche Bank and Morgan Stanley expected the euro to drop below parity with the dollar. Both have now raised their projections by 21 cents to $1.16 and $1.18 respectively. HSBC analysts who began the year with a $1.10 forecast now believe their current $1.20 projection may be a conservative estimate.</p>
<p>"Before Europe started the QE program we were comfortably above $1.20, so if that's going to be withdrawn, you've got to ask why the euro can't go much higher by this time next year," said Steve Jefferies, head of currencies and emerging markets in Europe, the Middle East and Africa at J.P. Morgan.</p>
<p>Write to Mike Bird at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>July 12, 2017 08:00 ET (12:00 GMT)</p> | true | 0 | dubbed crisis currency euro outperformed peers dollar investors betting gains come euro 10 greenback far year local economy rebounds threat populist politicians calling currency zones demise recedes continue reading risk breakup fading analysts asking whether currency reclaim global standing held 2009 sovereign debt crisis least central banks place currency reserves multiple indicators suggest investors positive euro many years wednesday currency traded 1149 highest level year political threats euro definitely reduced status historical perspective rest world underweight europe said carl hammer head global macro foreign exchange research swedish bank seb threemonth eurodollar risk reversals measure cost hedging drops currencies broke positive territory end june first time since least 2010 positive figure suggests investors longer asking paid premium hold euros sharp change recent past investors also net long position euroa bet currency appreciatefor first time three years us commodity futures trading commission data shows investors held 77464 long short contracts euro week july 3 advertisement european union long hankered greater role global markets far back 1960s valéry giscard destaing frances finance minister complained us dollars exorbitant privilege preeminent reserve currency following launch 18 years ago single currency reached high around 160 2008 currency lost ground even since sovereign debt crisis ended 2012 share daily turnover foreign exchange markets dropped 39 2010 31 2016 according bank international settlements european central bank estimates share international bonds denominated euros dropped high 293 2004 22 end last year first quarter year slightly less 20 global official foreign exchange reserves held euros according international monetary fund peak 2009 euros share international reserves reached nearly 28 aside prestige greater international role would help eurozone companies raise funds potentially reducing exchange rate volatility dollars role important global reserve currency typically seen boon us lingering risk currency wont survive reduced euros position foreign currency reserves held governments central banks putting investors youre reserve manager say asia would think twice investing long term currency might exist five years said dhaval joshi chief european strategist bca research risk abated recently elections netherlands france saw proeu candidates win convincingly support germanys main antieuro party dwindled expectations country leave eurozone fallen investors currently assign 86 probability country exiting eurozone next 12 months 25 early year according sentix euro breakup index polls investors expectations bloc brighter outlook regional growth recently outstripped us helps euro multiple fronts reduces risk breakup helping bolster weaker southern european economies whose debts stagnant growth helped fuel sovereign debt crisis makes region attractive outside investors also means ecb quicker jettison bondbuying negative interest rate policies capped currencys gains socalled quantitative easing qe policies keep bond yields low reducing longterm returns investors stemming flow foreign exchange would boost euro may even see central banks stock reserves could first quarter represents something close low euros share reserves said stephen saywell head foreign exchange strategy bnp paribas sure factors less monetary stimulus brighter economy could end hurting euro pace disappoint regions antieuro politicians could also stage comeback prospect higher interest rates factors already led many analysts hike forecasts euro short term earlier year deutsche bank morgan stanley expected euro drop parity dollar raised projections 21 cents 116 118 respectively hsbc analysts began year 110 forecast believe current 120 projection may conservative estimate europe started qe program comfortably 120 thats going withdrawn youve got ask euro cant go much higher time next year said steve jefferies head currencies emerging markets europe middle east africa jp morgan write mike bird mikebirdwsjcom end dow jones newswires july 12 2017 0800 et 1200 gmt | 576 |
<p>Today&#160;Amazon.com Inc.&#160;(NASDAQ: AMZN) closed its much-heralded purchase of Whole Foods Market (NASDAQ: WFM), and it's entered the grocery market with guns blazing. Effective immediately, Whole Foods is slashing prices on at least 13 popular staples, with more to come.</p>
<p>As announced late last week, Amazon will soon make Whole Foods products available on its Amazon.com, AmazonFresh, Prime Pantry and Prime Now sites. The company plans to place Amazon lockers in Whole Foods stores, allowing shoppers to pick up items ordered online when they stop in for groceries.</p>
<p>Continue Reading Below</p>
<p>In addition, Amazon is integrating Amazon Prime into Whole Foods' point of sale system, which will soon enable millions of Prime members to enjoy a deeper range of in-store discounts at Whole Foods locations. Eventually, Whole Foods' loyalty platform will be rolled into the Amazon Prime service.</p>
<p>While competitors are rightfully unnerved by the commencement of the new partnership, in all likelihood, the actions announced thus far won't kill the grocery industry as we know it overnight. After all, Whole Foods presently operates only 446 locations across the U.S.&#160;Nonetheless, the merger's impact may run deeper, and hit sooner, than is apparent at first glance.</p>
<p>Think of Amazon as a sort of grocery traffic controller. Per research cited by Bloomberg last week, Amazon may boast as many as 85 million Prime members, or roughly a quarter of the U.S. population. Thus it can send members into stores with targeted Prime deals, curbing traffic to other grocers' stores that lie in proximity to Whole Foods locations.</p>
<p>Now, the subset of Prime members who aren't core Whole Foods shoppers is presumably a large one, given Whole Foods' relatively tiny physical footprint in the industry. &#160;If Amazon entices these Prime customers into trying, and regularly purchasing items online, it can eat into conventional grocers' average basket size and customer visit frequency irrespective of Whole Foods' physical locations.</p>
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<p>Such a strategy can't be executed on the cheap. As my Foolish colleague Anders Bylund points out, new discounts and future promotions <a href="https://www.fool.com/investing/2017/08/25/stop-the-presses-amazoncom-will-own-whole-foods-on.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0b277774-8ad2-11e7-9994-0050569d4be0&amp;utm_source=foxbusiness" type="external">will cut into Whole Foods' profits Opens a New Window.</a>, but the grocer's industry-leading margins reveal that it has room to cut prices to gain market share.</p>
<p>And as I described recently, Amazon will <a href="https://www.fool.com/investing/2017/06/17/amazon-and-whole-foods-upend-the-grocery-aisle.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0b277774-8ad2-11e7-9994-0050569d4be0&amp;utm_source=foxbusiness" type="external">eventually recapture some of the pricing Opens a New Window.</a> Whole Foods gives up through warehouse automation, distribution optimization, and by applying its technology expertise to Whole Foods' inventory handling.</p>
<p>Traffic control via Prime may also ripple through non-grocery companies that don't appear to be obvious victims at first blush. Take&#160;PepsiCo, Inc. (NYSE: PEP), for example. Grocery stores and convenience stores ("C-stores") are the primary retail selling channels for PepsiCo's Frito-Lay North America (FLNA) and Quaker Oats North America (QFNA) snack divisions, not to mention its beverage business.</p>
<p>Walking into a conventional grocery store or C-store, it's difficult to avoid PepsiCo's prominent promotional displays. The company has prided itself for years as being one of the largest drivers of food retail growth in the U.S., and retailers tend to grant PepsiCo valuable real estate at the front of stores and on endcaps (the displays at end of each aisle).</p>
<p>The purpose of these displays is capture impulse revenue as customers make their way toward the goods on the shelves. That's right: Your snacking weakness is PepsiCo's incremental sale.</p>
<p>But what happens if grocery ordering habits increasingly shift online due to the Amazon Prime/Whole Foods effect? PepsiCo then loses these impulse buys which it so successfully snares in a physical environment.</p>
<p>Recently, PepsiCo's CEO Indra Nooyi mentioned that company management has been reviewing next-generation tools such as virtual reality displays which simulate grocery aisles, to determine how to stimulate impulse demand for its products online.</p>
<p>While this represents necessary forward-thinking, it might be more germane to reach out to Amazon and offer innovative partnering strategies to offset future loss of in-store revenue. For instance, the company could manufacture private label goods which can be sold online under Whole Foods' "365" brand.</p>
<p>This isn't so far-fetched when you consider the evolution of global consumer packaged goods (CPG) companies' food and beverage ingredients. PepsiCo has invested heavily in recent years to develop products around the concepts of "guilt-free" and "everyday nutrition," some of which wouldn't be out of place in a Whole Foods aisle.</p>
<p>The same can be said of PepsiCo's competitor Mondelez International Inc. (NASDAQ: MDLZ), which plans to garner at least half of total revenue from "well-being" products by 2020, and has even come out with an organic version of Triscuits.</p>
<p>Ultimately, global CPG companies are better positioned than grocers to weather the disruption from Whole Foods' new incarnation as the vehicle for Amazon's grocery ambitions. They can at least try to strengthen their positions as Whole Foods suppliers. PepsiCo's products are already found in Whole Foods (think Tropicana orange juice), though its penetration is currently just a fraction of what it enjoys within conventional grocery chains.</p>
<p>As for those competing grocers, however, the process of adapting will be fraught with much more difficulty. Within just a few business quarters, we'll have some idea of the steps they're taking, and how they're holding up.</p>
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<p>*Stock Advisor returns as of August 1, 2017</p>
<p>John Mackey, CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. <a href="http://my.fool.com/profile/TMFfinosus/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=0b277774-8ad2-11e7-9994-0050569d4be0&amp;utm_source=foxbusiness" type="external">Asit Sharma Opens a New Window.</a> has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool owns shares of Whole Foods Market. The Motley Fool recommends PepsiCo. 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=0b277774-8ad2-11e7-9994-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | today160amazoncom inc160nasdaq amzn closed muchheralded purchase whole foods market nasdaq wfm entered grocery market guns blazing effective immediately whole foods slashing prices least 13 popular staples come announced late last week amazon soon make whole foods products available amazoncom amazonfresh prime pantry prime sites company plans place amazon lockers whole foods stores allowing shoppers pick items ordered online stop groceries continue reading addition amazon integrating amazon prime whole foods point sale system soon enable millions prime members enjoy deeper range instore discounts whole foods locations eventually whole foods loyalty platform rolled amazon prime service competitors rightfully unnerved commencement new partnership likelihood actions announced thus far wont kill grocery industry know overnight whole foods presently operates 446 locations across us160nonetheless mergers impact may run deeper hit sooner apparent first glance think amazon sort grocery traffic controller per research cited bloomberg last week amazon may boast many 85 million prime members roughly quarter us population thus send members stores targeted prime deals curbing traffic grocers stores lie proximity whole foods locations subset prime members arent core whole foods shoppers presumably large one given whole foods relatively tiny physical footprint industry 160if amazon entices prime customers trying regularly purchasing items online eat conventional grocers average basket size customer visit frequency irrespective whole foods physical locations advertisement strategy cant executed cheap foolish colleague anders bylund points new discounts future promotions cut whole foods profits opens new window grocers industryleading margins reveal room cut prices gain market share described recently amazon eventually recapture pricing opens new window whole foods gives warehouse automation distribution optimization applying technology expertise whole foods inventory handling traffic control via prime may also ripple nongrocery companies dont appear obvious victims first blush take160pepsico inc nyse pep example grocery stores convenience stores cstores primary retail selling channels pepsicos fritolay north america flna quaker oats north america qfna snack divisions mention beverage business walking conventional grocery store cstore difficult avoid pepsicos prominent promotional displays company prided years one largest drivers food retail growth us retailers tend grant pepsico valuable real estate front stores endcaps displays end aisle purpose displays capture impulse revenue customers make way toward goods shelves thats right snacking weakness pepsicos incremental sale happens grocery ordering habits increasingly shift online due amazon primewhole foods effect pepsico loses impulse buys successfully snares physical environment recently pepsicos ceo indra nooyi mentioned company management reviewing nextgeneration tools virtual reality displays simulate grocery aisles determine stimulate impulse demand products online represents necessary forwardthinking might germane reach amazon offer innovative partnering strategies offset future loss instore revenue instance company could manufacture private label goods sold online whole foods 365 brand isnt farfetched consider evolution global consumer packaged goods cpg companies food beverage ingredients pepsico invested heavily recent years develop products around concepts guiltfree everyday nutrition wouldnt place whole foods aisle said pepsicos competitor mondelez international inc nasdaq mdlz plans garner least half total revenue wellbeing products 2020 even come organic version triscuits ultimately global cpg companies better positioned grocers weather disruption whole foods new incarnation vehicle amazons grocery ambitions least try strengthen positions whole foods suppliers pepsicos products already found whole foods think tropicana orange juice though penetration currently fraction enjoys within conventional grocery chains competing grocers however process adapting fraught much difficulty within business quarters well idea steps theyre taking theyre holding 10 stocks like better amazonwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right amazon wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 john mackey ceo whole foods market member motley fools board directors asit sharma opens new window position stocks mentioned motley fool owns shares recommends amazon motley fool owns shares whole foods market motley fool recommends pepsico motley fool disclosure policy opens new window | 649 |
<p>With interest rates still close to record-low levels, and major market benchmarks seemingly bumping up near all-time highs on a daily basis, there are fewer places where income-focused investors can find a compelling yield these days. That said, one place that still offers a generous income stream is the oil and gas sector. While there's an added risk associated with the industry due to its ties to volatile oil prices, there are several lower-risk options that can provide investors with plenty of income. Here are five top ideas that all yield more than 3%.</p>
<p>Continue Reading Below</p>
<p>Schlumberger is the world's largest oil-field services company. That scale is important because it enabled the services giant to leverage its global operations during the oil market downturn and squeeze out costs so that it remained profitable at a time when smaller competitors were losing money. In fact, Schlumberger generated a whopping $2.5 billion of free cash flow last year, which was almost enough to cover its dividend. While the company did have to dip into its cash position a bit, it still had $7.4 billion in cash on its balance sheet at the end of the first quarter, giving it plenty of cushion in the turbulent market. Because of that cash cushion and cash flow, Schlumberger has the financial strength to maintain its dividend while it waits for market conditions to improve.</p>
<p>Oil giant Chevron generates a boatload of cash flow each year. In fact, last year the company produced $12.8 billion in cash flow from operations despite turbulent oil prices. Because of that cash flow, and its top-tier balance sheet, Chevron was able to increase its dividend once again last year, marking the 29th&#160;straight year it raised the payout, enabling it to keep its title of <a href="https://www.fool.com/knowledge-center/what-is-a-dividend-aristocrat.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=2352ada2-5f2e-11e7-bf12-0050569d4be0&amp;utm_source=foxbusiness" type="external">Dividend Aristocrat Opens a New Window.</a>. Meanwhile, with several large growth projects starting up in the near term, Chevron's cash flow should expand even if oil prices flatten out, which positions the company to continue paying a <a href="https://www.fool.com/investing/2017/06/14/chevrons-management-looks-like-its-changing-its-ca.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=2352ada2-5f2e-11e7-bf12-0050569d4be0&amp;utm_source=foxbusiness" type="external">growing dividend in the coming years Opens a New Window.</a>.</p>
<p>Leading independent refiner Valero Energy paid its investors $1.1 billion in dividends last year despite a challenging year for the refining sector. In fact, the company fully covered that dividend since it generated $4.8 billion in cash flow from operating activities. It used the remaining money to buy back $1.3 billion in stock and reinvested $2 billion into maintaining and expanding its business. Meanwhile, with a strong balance sheet and a balanced approach to capital allocation, Valero remains positioned to continue growing its dividend and has already increased it 17% for 2017.</p>
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<p>Unlike the others on this list, pipeline and processing company MPLX generates very predictable cash flow since fee-based contracts support 95% of its earnings. Because of that stability, and the fact that MPLX has a healthy distribution coverage ratio of 1.3 in the first quarter, and an excellent balance sheet backed with a low leverage ratio of 4.0 times debt to EBITDA, it has the financial strength to sustain its distribution over the long term. In fact, thanks to several growth initiatives currently underway, MPLX expects to deliver 12% to 15% distribution growth in 2017 and double-digit growth next year.</p>
<p>Plains All American Pipeline shares many similarities with MPLX, though it's not on quite as secure a financial footing since it won't completely cover its payout this year and it has a higher debt-to-EBITDA ratio of 4.8. That said, thanks to a repositioning transaction with its parent company last year, its <a href="https://www.fool.com/investing/2017/06/13/have-investors-been-overlooking-plains-all-america.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=2352ada2-5f2e-11e7-bf12-0050569d4be0&amp;utm_source=foxbusiness" type="external">financial metrics should strengthen over the next year Opens a New Window.</a> after it completes a slew of growth projects. The growth from these expansion projects should fuel 17% earnings growth next year and as much as a 33% increase in profitability over the next several years. That growing earnings stream will further stabilize Plains All American Pipeline's financial metrics, which should eventually put it in the position where it can start increasing its already very generous payout.</p>
<p>All five of these companies share one thing in common: Each generates healthy cash flow despite operating in the volatile energy sector. For Schlumberger, Chevron, and Valero, the key to their ability to produce such robust cash flow stems from their large-scale operations, which enables them to keep a lid on costs. MPLX and Plains All American Pipeline, on the other hand, generate gobs of cash flow by collecting stable fees as they process, transport, and store oil and gas. Because these companies generate so much cash flow, they have ample left over to pay a generous dividend at a time when it's tough for investors to find a compelling yield.</p>
<p>10 stocks we like better than Plains All American PipelineWhen 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=1404f2b6-7afb-4850-af37-5168871e9630&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=2352ada2-5f2e-11e7-bf12-0050569d4be0&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Plains All American Pipeline 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 June 5, 2017</p>
<p><a href="http://my.fool.com/profile/TMFmd19/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=2352ada2-5f2e-11e7-bf12-0050569d4be0&amp;utm_source=foxbusiness" type="external">Matt DiLallo Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends Chevron. 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=2352ada2-5f2e-11e7-bf12-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | interest rates still close recordlow levels major market benchmarks seemingly bumping near alltime highs daily basis fewer places incomefocused investors find compelling yield days said one place still offers generous income stream oil gas sector theres added risk associated industry due ties volatile oil prices several lowerrisk options provide investors plenty income five top ideas yield 3 continue reading schlumberger worlds largest oilfield services company scale important enabled services giant leverage global operations oil market downturn squeeze costs remained profitable time smaller competitors losing money fact schlumberger generated whopping 25 billion free cash flow last year almost enough cover dividend company dip cash position bit still 74 billion cash balance sheet end first quarter giving plenty cushion turbulent market cash cushion cash flow schlumberger financial strength maintain dividend waits market conditions improve oil giant chevron generates boatload cash flow year fact last year company produced 128 billion cash flow operations despite turbulent oil prices cash flow toptier balance sheet chevron able increase dividend last year marking 29th160straight year raised payout enabling keep title dividend aristocrat opens new window meanwhile several large growth projects starting near term chevrons cash flow expand even oil prices flatten positions company continue paying growing dividend coming years opens new window leading independent refiner valero energy paid investors 11 billion dividends last year despite challenging year refining sector fact company fully covered dividend since generated 48 billion cash flow operating activities used remaining money buy back 13 billion stock reinvested 2 billion maintaining expanding business meanwhile strong balance sheet balanced approach capital allocation valero remains positioned continue growing dividend already increased 17 2017 advertisement unlike others list pipeline processing company mplx generates predictable cash flow since feebased contracts support 95 earnings stability fact mplx healthy distribution coverage ratio 13 first quarter excellent balance sheet backed low leverage ratio 40 times debt ebitda financial strength sustain distribution long term fact thanks several growth initiatives currently underway mplx expects deliver 12 15 distribution growth 2017 doubledigit growth next year plains american pipeline shares many similarities mplx though quite secure financial footing since wont completely cover payout year higher debttoebitda ratio 48 said thanks repositioning transaction parent company last year financial metrics strengthen next year opens new window completes slew growth projects growth expansion projects fuel 17 earnings growth next year much 33 increase profitability next several years growing earnings stream stabilize plains american pipelines financial metrics eventually put position start increasing already generous payout five companies share one thing common generates healthy cash flow despite operating volatile energy sector schlumberger chevron valero key ability produce robust cash flow stems largescale operations enables keep lid costs mplx plains american pipeline hand generate gobs cash flow collecting stable fees process transport store oil gas companies generate much cash flow ample left pay generous dividend time tough investors find compelling yield 10 stocks like better plains american pipelinewhen 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 plains american pipeline wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns june 5 2017 matt dilallo opens new window position stocks mentioned motley fool recommends chevron motley fool disclosure policy opens new window | 552 |
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<p>It's hard to imagine that with the stock market running at such a high valuation that there are stocks that Wall Street doesn't view favorably, but there are a few companies that have fallen from grace over the past year for one reason or another. What's even more surprising is when some of those companies hitting rough patches are great businesses that even pay dividends.</p>
<p>Continue Reading Below</p>
<p>Two attractive but out-of-favor businesses are oil refiner HollyFrontier (NYSE: HFC) and grocer Kroger (NYSE: KR). Here's a quick look at why they're going through a tough time and why you may want to consider buying them now.</p>
<p>Image source: Getty Images.</p>
<p>The oil refining business has been anything but good lately. Throughout 2016, rising crude prices and high costs for ethanol credits to comply with the U.S. Environmental Protection Agency's renewable fuel standards cut into refiners margins. Unfortunately, that situation hasn't improved much, as high levels of refined product inventory are keeping gasoline and diesel prices lower. As a result, shares of HollyFrontier have been hit with a few body blows and are now down 23% over the past year.</p>
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<p>It's true that the oil refining business is cyclical, but there are two reasons that make HollyFrontier rise above the fray: its most recent acquisition and its conservative management team.</p>
<p>The cyclical nature of the refining business means that management teams need to take measured steps when growing the business so that they don't stretch themselves too thinly with capital investments. Too much spending when times are flush can come back and bite a company if the market turns quickly. HollyFrontier's management has been adept at managing the ups and downs of the cycle. Keeping a very modest balance sheet has provided the firepower to make an acquisition when opportunities present themselves, and avoiding top-of-the-cycle investments has helped the company maintain one of the best returns on invested capital in the business.</p>
<p>This was on full display with its most recent acquisition of a 15,000-barrels-per-day lubricants manufacturing plant from Suncor Energy. Unlike fuels, lubricants is a much higher-margin product and doesn't fall under the same ethanol compliance regulations. What's even more encouraging is that the company bought the facility for an annual EBITDA multiple range of2.9-5.8 times depending on the synergies it can pull. Even if it is on the low end, that is a good deal.</p>
<p>These are moves that make HollyFrontier the kind of stock you want to be on when the industry cycle takes a turn for the worse. Today, HollyFrontier's stock trades at an enterprise value to EBITDA of seven times and a dividend yield of 4.8%. That EBITDA multiple is good but not great for a cyclicalstock, but do keep in mind that this is in the trough of the cycle. So, as the refiningmarket returns to a more normal margin environment, it will look pretty good.</p>
<p>The past year has been a tough go for Kroger as its stock has declined close to 25%. Much of the losses are related to the fact that the grocery business has been struggling with price deflation. There are also some concerns as the company's debt levels are getting a bit higher than what we are used to seeing with this grocer -- total debt to EBITDA at the end of 2016 was 2.44 times. While that may sound like a palatable figure, keep in mind that the grocery business is notorious for thin margins, and any increase in interest expense is going to be felt on the bottom line.</p>
<p>While these issues may raise an eyebrow, Kroger has earned a reputation as a very solid operator in this competitive industry. Despite the less-than-ideal price deflation environment, Kroger gained market share at its stores for the 12th consecutive year and held net income per share more or less flat for the fiscal year.</p>
<p>It should also be encouraging to investors that Kroger's management isn't just resting on its laurels. It sees the changing dynamics of food delivery and online ordering, so it's using the cash flow machine that is its core supermarket to invest in its digital ordering business. Kroger now has 640 locations from its acquisition of Harris Teeterthat can be used to fulfill online orders. The company is now testing last-mile delivery options with ride-sharing companies for delivery. Management even admitted on its most recent call that it is taking a few financial hits with some new initiatives, but it believes that the company needs to make these investments for the long-term strength of the company.</p>
<p>This looks like a company that is going through difficult times, but remains well positioned to grow and return value to shareholders. With an enterprise value-to-EBITDA ratio of seven times and a dividend yield of 1.7%, this seems like an opportune time to make an investment in this temporarily unpopular stock.</p>
<p>10 stocks we like better than HollyFrontierWhen 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=fb9c79f4-64b3-482c-9b3b-68b0eacad715&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 HollyFrontier 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/TMFDirtyBird/info.aspx" type="external">Tyler Crowe Opens a New Window.</a> owns shares of Kroger. 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 | hard imagine stock market running high valuation stocks wall street doesnt view favorably companies fallen grace past year one reason another whats even surprising companies hitting rough patches great businesses even pay dividends continue reading two attractive outoffavor businesses oil refiner hollyfrontier nyse hfc grocer kroger nyse kr heres quick look theyre going tough time may want consider buying image source getty images oil refining business anything good lately throughout 2016 rising crude prices high costs ethanol credits comply us environmental protection agencys renewable fuel standards cut refiners margins unfortunately situation hasnt improved much high levels refined product inventory keeping gasoline diesel prices lower result shares hollyfrontier hit body blows 23 past year advertisement true oil refining business cyclical two reasons make hollyfrontier rise fray recent acquisition conservative management team cyclical nature refining business means management teams need take measured steps growing business dont stretch thinly capital investments much spending times flush come back bite company market turns quickly hollyfrontiers management adept managing ups downs cycle keeping modest balance sheet provided firepower make acquisition opportunities present avoiding topofthecycle investments helped company maintain one best returns invested capital business full display recent acquisition 15000barrelsperday lubricants manufacturing plant suncor energy unlike fuels lubricants much highermargin product doesnt fall ethanol compliance regulations whats even encouraging company bought facility annual ebitda multiple range of2958 times depending synergies pull even low end good deal moves make hollyfrontier kind stock want industry cycle takes turn worse today hollyfrontiers stock trades enterprise value ebitda seven times dividend yield 48 ebitda multiple good great cyclicalstock keep mind trough cycle refiningmarket returns normal margin environment look pretty good past year tough go kroger stock declined close 25 much losses related fact grocery business struggling price deflation also concerns companys debt levels getting bit higher used seeing grocer total debt ebitda end 2016 244 times may sound like palatable figure keep mind grocery business notorious thin margins increase interest expense going felt bottom line issues may raise eyebrow kroger earned reputation solid operator competitive industry despite lessthanideal price deflation environment kroger gained market share stores 12th consecutive year held net income per share less flat fiscal year also encouraging investors krogers management isnt resting laurels sees changing dynamics food delivery online ordering using cash flow machine core supermarket invest digital ordering business kroger 640 locations acquisition harris teeterthat used fulfill online orders company testing lastmile delivery options ridesharing companies delivery management even admitted recent call taking financial hits new initiatives believes company needs make investments longterm strength company looks like company going difficult times remains well positioned grow return value shareholders enterprise valuetoebitda ratio seven times dividend yield 17 seems like opportune time make investment temporarily unpopular stock 10 stocks like better hollyfrontierwhen 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 hollyfrontier wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 tyler crowe opens new window owns shares kroger motley fool position stocks mentioned motley fool disclosure policy opens new window | 527 |
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<p>For the first time in six quarters, Lumber Liquidators reported comparable customer growth. Image source: Lumber Liquidators.</p>
<p>Continue Reading Below</p>
<p>It's been a tough couple of years forLumber Liquidators Holdings, Inc(NYSE: LL). And one would think that finally returning to sales growth after six ugly quarters would be fantastic news. Unfortunately, the high rate of cash consumption at the company, which continues to repair its image following a scathing60 Minutesreport and months of bad press, has weighed heavily on Lumber Liquidators' results.</p>
<p>The market clearly didn't like the company's third-quarter earnings, sending shares down 16% on October 31 following the release, but long-term investors are better served digging into the details, and not buying and selling based on the headlines. Let's take a closer look at Lumber Liquidators' third-quarter results.</p>
<p>Revenue and net income in millions. Source: Lumber Liquidators.</p>
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<p>This was the first quarter since Q4 of 2014 that Lumber Liquidators reported an increase in same-store or comparable-store sales, which were up slightly versus last year. However, it's worth noting that last year's third quarter, as you can see above, saw a massive decline in sales as numerous lawsuit filings and investigations into the company's Chinese-sourced laminate flooring kept "Lumber Liquidators" and "cancer" in headlines on a regular basis.</p>
<p>Management also pointed out on the earnings call that the company's product mix looks substantially different now than it did one-year ago. Last year, Lumber Liquidators was still working to replace its Chinese-manufactured laminate flooring with products made in North America and Europe, and it's only been in recent quarters that the company has optimized its sourcing and been offering the mix of products that it wants to sell.</p>
<p>While these improvements in store-level sales and gross-margin percent are positive, the big issue for Lumber Liquidators remains its very high expenses:</p>
<p>For a business like Lumber Liquidators, particularly with its relatively high expenses right now, it's important to understand which are cash-based expenses and which are non-cash expenses, such as stock-based items or depreciation/amortization, which are tied to prior capital spending. It's also a good idea to discern how working capital changes play a role in supporting the company as it works through its ongoing issues.</p>
<p>Here's a look at some key asset items for the company at the end of the third quarter as compared to at the end of the second quarter:</p>
<p>In millions. Source: Lumber Liquidators.</p>
<p>And here are key liabilities:</p>
<p>In millions. Source: Lumber Liquidators.</p>
<p>Note the bottom row in both sections --total current assets and current liabilities. The net difference here is the company's working capital. At the end of the second quarter, Lumber Liquidators had $173.2 million in working capital. At the end of the third quarter, it had $147.83 million. That's a $25.4 million reduction in working capital -- a bigger "negative" result than the $18 million <a href="http://www.fool.com/knowledge-center/importance-of-accounting-principles-for-wiki.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">GAAP Opens a New Window.</a>net loss.</p>
<p>What does this tell us? In short, the company used up a significant portion of its available resources over the course of the third quarter -- primarily, cash and "other current assets," which are primarily made up of refundable income tax and a deferred tax asset.</p>
<p>Frankly, investors should pay very close attention to this, because it's not sustainable. At some point, Lumber Liquidators must either lower operating costs, grow sales, or -- most likely -- some combination of the two, enough to at least get to cash-flow breakeven.</p>
<p>But it's not all bad news. In addition to the assets on its balance sheet, Lumber Liquidators ended the quarter with $95.7 million in available borrowing capacity on its revolving credit facility, which was negotiated this past August. This gives management some breathing room.</p>
<p>At the same time, the reduction in inventory on a sequential basis, according to management, is an intentional step. The company continues to fine tune its store inventory levels, and "reflects a shift forward in the timing of planned inventory increases ahead of the spring selling season." In other words, the company plans to build inventories later in the year in preparation for the first quarter, which is historically the company's biggest.</p>
<p>As the numbers above indicate, it's likely that the company will have to both find ways to reduce operating expenses and continue improving sales before profitability recovers. In the interim, investors will have to accept the reality that the company is likely to continue consuming cash and working capital, and will almost certainly have to tap its credit facility to make ends meet in coming quarters.</p>
<p>There's also the ongoing overhang of litigation that could result in further costs above and beyond ongoing legal expenses. The good news is that essentially all of the evidence supports Lumber Liquidators' assertions that its products didn't create any significant risk for consumers, but until the litigation is over, SG&amp;A will remain elevated, and the uncertainty of a negative ruling will likely weigh on the company.</p>
<p>For investors today, there's probably huge upside. But there's still measurable risk when a company is forced to spend more than it brings in. That's the case for Lumber Liquidators today, and it's just not clear how long before that changes.</p>
<p>A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, <a href="http://www.fool.com/mms/mark/ecap-foolcom-apple-wearable?aid=6965&amp;source=irbeditxt0000017&amp;ftm_cam=rb-wearable-d&amp;ftm_pit=2667&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">just click here Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/elihpaudio/info.aspx" type="external">Jason Hall Opens a New Window.</a> owns shares of Lumber Liquidators. The Motley Fool recommends Lumber Liquidators. 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 | first time six quarters lumber liquidators reported comparable customer growth image source lumber liquidators continue reading tough couple years forlumber liquidators holdings incnyse one would think finally returning sales growth six ugly quarters would fantastic news unfortunately high rate cash consumption company continues repair image following scathing60 minutesreport months bad press weighed heavily lumber liquidators results market clearly didnt like companys thirdquarter earnings sending shares 16 october 31 following release longterm investors better served digging details buying selling based headlines lets take closer look lumber liquidators thirdquarter results revenue net income millions source lumber liquidators advertisement first quarter since q4 2014 lumber liquidators reported increase samestore comparablestore sales slightly versus last year however worth noting last years third quarter see saw massive decline sales numerous lawsuit filings investigations companys chinesesourced laminate flooring kept lumber liquidators cancer headlines regular basis management also pointed earnings call companys product mix looks substantially different oneyear ago last year lumber liquidators still working replace chinesemanufactured laminate flooring products made north america europe recent quarters company optimized sourcing offering mix products wants sell improvements storelevel sales grossmargin percent positive big issue lumber liquidators remains high expenses business like lumber liquidators particularly relatively high expenses right important understand cashbased expenses noncash expenses stockbased items depreciationamortization tied prior capital spending also good idea discern working capital changes play role supporting company works ongoing issues heres look key asset items company end third quarter compared end second quarter millions source lumber liquidators key liabilities millions source lumber liquidators note bottom row sections total current assets current liabilities net difference companys working capital end second quarter lumber liquidators 1732 million working capital end third quarter 14783 million thats 254 million reduction working capital bigger negative result 18 million gaap opens new windownet loss tell us short company used significant portion available resources course third quarter primarily cash current assets primarily made refundable income tax deferred tax asset frankly investors pay close attention sustainable point lumber liquidators must either lower operating costs grow sales likely combination two enough least get cashflow breakeven bad news addition assets balance sheet lumber liquidators ended quarter 957 million available borrowing capacity revolving credit facility negotiated past august gives management breathing room time reduction inventory sequential basis according management intentional step company continues fine tune store inventory levels reflects shift forward timing planned inventory increases ahead spring selling season words company plans build inventories later year preparation first quarter historically companys biggest numbers indicate likely company find ways reduce operating expenses continue improving sales profitability recovers interim investors accept reality company likely continue consuming cash working capital almost certainly tap credit facility make ends meet coming quarters theres also ongoing overhang litigation could result costs beyond ongoing legal expenses good news essentially evidence supports lumber liquidators assertions products didnt create significant risk consumers litigation sgampa remain elevated uncertainty negative ruling likely weigh company investors today theres probably huge upside theres still measurable risk company forced spend brings thats case lumber liquidators today clear long changes 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 jason hall opens new window owns shares lumber liquidators motley fool recommends lumber liquidators try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 589 |
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<p>Is your small business website a potential target for state-sponsored hackers?</p>
<p>Continue Reading Below</p>
<p>As President Obama meets with Chinese president Xi Jinping this week to discuss the growing cyberespionage problem affecting many Fortune 500s, one business group has been largely overlooked in the discussion about US cybersecurity - SMBs.</p>
<p>While cyber attacks against Google, Lockheed Martin, Bank of America and other major US companies rule the news headlines, smaller businesses with less than 250 employees are increasingly in the cross-hairs of sophisticated hacker groups from around the world, including China, according to recent reports. In fact, Symantec found that almost one-third of all cyber attacks now target small businesses - a 72% increase in the last year.</p>
<p>In the past, SMBs have often dismissed cybersecurity threats as something that only happens to big companies. After all, why would a state-sponsored hacker or Eastern European organized crime group care about a small business that isn’t holding state secrets or a multi-million dollar bank account? But security researchers have found that hackers are increasingly targeting SMBs because they have something else of value - unique visitors to their websites.</p>
<p>It’s a tactic known as the “ <a href="http://threatpost.com/why-watering-hole-attacks-work-032013/" type="external">watering hole Opens a New Window.</a>” attack. Small business websites are often visited by large corporate clients or the vendors of a larger company. The website is trusted by these organizations and not considered a risk, so they let their guards down. Since many SMBs don’t have sophisticated security programs in place, their websites are easy to break into - and hackers can use them as a “spring board” to attack a larger company. After all, hacking into a Fortune 500 company isn’t easy&#160; - but if a hacker can get them to voluntarily visit an infected website, they simply bypass all of these corporate cybersecurity protections.</p>
<p>Here’s how a watering hole works: A state-sponsored hacker group wants to target a company like Lockheed Martin. They find it difficult to break into Lockheed directly, so instead they go down the supply chain to find a weak link. Maybe it’s an SMB that does business directly with Lockheed - or maybe it’s the vendor of a vendor of a vendor, and the hacker can use each smaller company as a stepping stone to make its way up the chain.</p>
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<p>Supply chains are so intertwined these days, many SMBs may not even realize all the supply chains they’re in. Since small businesses often make basic mistakes with website and network security - due to smaller budgets, inexperience and lack of awareness about the risks - it becomes the perfect place to launch an attack. The hacker breaks into the SMB’s website, installs malware and then waits. The next time the site is visited, the malware secretly attacks that person’s computer and infects their organization. This is what happened to Apple, Facebook and Twitter - these companies were hacked after their software engineers visited a popular mobile developer forum that had been turned into a watering hole by hackers.</p>
<p>The same method can also be used by organized crime groups to target consumers and steal their credit card numbers or online banking credentials.</p>
<p>A watering hole attack can be extremely damaging to a small business. It can ruin a company’s reputation - causing it to lose current and future business. Even if it’s able to keep its clients, the SMB will still suffer disruption to its business operations, downtime and possible blacklisting by the search engines (a death sentence for SEO). It could also potentially be hit with fines and lawsuits.</p>
<p>Since many small businesses don’t have security monitoring on their websites, it could take a long time before they even realize they’ve been corrupted - meanwhile, they’re an unwitting accomplice in the infection of countless customers and visitors.</p>
<p>Is your website a potential watering hole for hackers? Here are five things you need to do:</p>
<p>No. 1: Before Going Live, Ask This Question</p>
<p>If you’re in the process of launching a new website, make sure the web developer, or website template you’re using, is checking the design against the OWASP Top 10 list of most common web security flaws. You can start by asking this person to explain how your web applications are not vulnerable to the OWASP Top 10. If they don’t have a solid answer, you need to find another developer.</p>
<p>No. 2: Get Your Website Checked</p>
<p>You can sign up for a service that will scan your website daily for basic vulnerabilities and malware. Some of the more popular services are the Nessus Vulnerability Scanner, Symantec Safe Site and McAfee SECURE for Websites. Just keep in mind that these scans don’t cover everything - they’re only one step in making your&#160;website secure.</p>
<p>No. 3: Have Security Monitoring in Place</p>
<p>Make sure you’re using a “security information and event management” (SIEM) tool. These will monitor your website for active attacks. Here are a few examples of SIEMs:&#160;Splunk, AlienVault and&#160;HP Arcsight.</p>
<p>No. 4: Hire a Hacker</p>
<p>“White hat” or “ethical hacking” is a popular profession these days and there are plenty of firms out there. This isn’t cheap, but if you have the ability, consider hiring an ethical hacker to take a look at your website and network to see if a hacker would be able to break in. Be sure to check the qualifications of the company first, however: how long they’ve been in business and client references. Those references are more important than fancy certifications, which don't necessarily tell you much about the person's&#160;technical&#160;ability or professionalism.</p>
<p>No. 5: Check for Blacklisting</p>
<p>It’s also a good idea to check the popular blacklist directories to see if your website has been flagged. This is another way to see if your website is being used by hackers, but more importantly it will help you determine if the search engines are flagging your site as malicious. You can check your site on <a href="http://blacklist.org/" type="external">BlackList.org Opens a New Window.</a>,&#160; <a href="http://mxtoolbox.com/" type="external">MXToolBox.com Opens a New Window.</a> or <a href="http://whatismyipaddress.com/" type="external">WhatIsMyIPAddress.com Opens a New Window.</a>. If your website is flagged, you need to figure out why - then contact the database that is blacklisting your site and ask them to take it off the list.</p>
<p>Rohit Sethi is vice president of <a href="http://www.securitycompass.com/" type="external">Security Compass Opens a New Window.</a> and specializes in web and mobile application security for major companies, banks and technology services. Sethi has spoken and taught at leading cybersecurity conferences, including RSA and OWASP, and has spoken on television about information security.</p> | true | 0 | small business website potential target statesponsored hackers continue reading president obama meets chinese president xi jinping week discuss growing cyberespionage problem affecting many fortune 500s one business group largely overlooked discussion us cybersecurity smbs cyber attacks google lockheed martin bank america major us companies rule news headlines smaller businesses less 250 employees increasingly crosshairs sophisticated hacker groups around world including china according recent reports fact symantec found almost onethird cyber attacks target small businesses 72 increase last year past smbs often dismissed cybersecurity threats something happens big companies would statesponsored hacker eastern european organized crime group care small business isnt holding state secrets multimillion dollar bank account security researchers found hackers increasingly targeting smbs something else value unique visitors websites tactic known watering hole opens new window attack small business websites often visited large corporate clients vendors larger company website trusted organizations considered risk let guards since many smbs dont sophisticated security programs place websites easy break hackers use spring board attack larger company hacking fortune 500 company isnt easy160 hacker get voluntarily visit infected website simply bypass corporate cybersecurity protections heres watering hole works statesponsored hacker group wants target company like lockheed martin find difficult break lockheed directly instead go supply chain find weak link maybe smb business directly lockheed maybe vendor vendor vendor hacker use smaller company stepping stone make way chain advertisement supply chains intertwined days many smbs may even realize supply chains theyre since small businesses often make basic mistakes website network security due smaller budgets inexperience lack awareness risks becomes perfect place launch attack hacker breaks smbs website installs malware waits next time site visited malware secretly attacks persons computer infects organization happened apple facebook twitter companies hacked software engineers visited popular mobile developer forum turned watering hole hackers method also used organized crime groups target consumers steal credit card numbers online banking credentials watering hole attack extremely damaging small business ruin companys reputation causing lose current future business even able keep clients smb still suffer disruption business operations downtime possible blacklisting search engines death sentence seo could also potentially hit fines lawsuits since many small businesses dont security monitoring websites could take long time even realize theyve corrupted meanwhile theyre unwitting accomplice infection countless customers visitors website potential watering hole hackers five things need 1 going live ask question youre process launching new website make sure web developer website template youre using checking design owasp top 10 list common web security flaws start asking person explain web applications vulnerable owasp top 10 dont solid answer need find another developer 2 get website checked sign service scan website daily basic vulnerabilities malware popular services nessus vulnerability scanner symantec safe site mcafee secure websites keep mind scans dont cover everything theyre one step making your160website secure 3 security monitoring place make sure youre using security information event management siem tool monitor website active attacks examples siems160splunk alienvault and160hp arcsight 4 hire hacker white hat ethical hacking popular profession days plenty firms isnt cheap ability consider hiring ethical hacker take look website network see hacker would able break sure check qualifications company first however long theyve business client references references important fancy certifications dont necessarily tell much persons160technical160ability professionalism 5 check blacklisting also good idea check popular blacklist directories see website flagged another way see website used hackers importantly help determine search engines flagging site malicious check site blacklistorg opens new window160 mxtoolboxcom opens new window whatismyipaddresscom opens new window website flagged need figure contact database blacklisting site ask take list rohit sethi vice president security compass opens new window specializes web mobile application security major companies banks technology services sethi spoken taught leading cybersecurity conferences including rsa owasp spoken television information security | 616 |
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<p>Image source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>Texas' legendary <a href="http://www.fool.com/investing/2016/07/16/the-5-companies-dominating-the-permian-basin.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Permian Basin Opens a New Window.</a> has been the <a href="http://www.fool.com/investing/2016/08/24/this-oil-play-is-scorching-hot-right-now.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">hottest oil play this year Opens a New Window.</a> thanks to its abundance of cheap oil. The basin only grew hotter in November with robust production growth reports by Permian-focused producers. Meanwhile, the announcement that OPEC had decided to end its war on shale by cutting output only added more fuel to the fire, sending Permian drillers surging on the last day of the month. Leading the way were Laredo Petroleum (NYSE: LPI), PDC Energy (NASDAQ: PDCE), Clayton Williams Energy (NYSE: CWEI) Diamondback Energy (NASDAQ: FANG), and Parsley Energy (NYSE: PE):</p>
<p><a href="http://ycharts.com/companies/LPI" type="external">LPI</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>Here's what fueled these moves.</p>
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<p>Laredo Petroleum got an early boost after it reported solid third-quarter results at the beginning of the month. The driller earned $28.4 million, or $0.12 per share, thanks to record quarterly production of 51,276 barrels of oil equivalent per day (BOE/d), which was above the top end of its guidance range. On top of that, it reported a 13% decrease in unit lease operating expenses (LOE) from the prior quarter, with costs now down 37% over the past year. These successes put Laredo Petroleum on pace to boost output by 10% this year. Meanwhile, with a growing inventory of high-return wells, the company expected to keep growing even at lower oil prices. However, OPEC's aim to boost prices should accelerate Laredo's growth potential and improve the returns it can earn on future wells.</p>
<p>PDC Energy also reported solid third-quarter results in early November. The company's production was up 39% year over year to 65,263 BOE/d, while LOE declined 27% year over year. However, the highlight of the quarter was a transformational $1.5 billion transaction to boost the driller's acreage area in the Permian Basin. That deal positioned PDC Energy to deliver 31% compound annual production growth over the next three years. That said, there is now more upside potential to that plan given OPEC's decision to support oil prices.</p>
<p>Clayton Williams Energy, likewise, reported third-quarter results in November, though it was not the company's results that got investors excited. The company reported an adjusted net loss of $35.1 million, or $2.50 per share, due in part to a sharp increase in interest expenses after it refinanced some debt earlier this year. That said, the company has since taken several steps to reposition so that it can thrive at lower oil prices, including announcing the sale of its Giddings area assets, which will transform Clayton Williams Energy into a pure-play Permian Basin producer. As a result, the company moved back into the position, where it could start drilling again, with the potential of being able to accelerateits drilling activities as a result of the OPEC deal.</p>
<p>Image source: Getty Images.</p>
<p>Diamondback Energy also reported its third-quarter results in early November. The driller noted that production was up 22% from just the prior quarter and 32% year over year. Diamondback Energy does not see that growth slowing down, and issued preliminary 2017 guidance projecting production growth of more than 30% next year, with plans to live within cash flow as long as oil remained above $45 per barrel. That is a near certainty now that OPEC has stepped in to put a solid floor underneath crude, which could enable Diamondback to accelerate production growth going forward.</p>
<p>Sticking with those same themes, Parsley Energy reported its third-quarter results at the beginning of the month. The Permian driller deliveredan excellent quarter, noting that production was up 20% sequentially and a stunning 99% year over year, to go along with a 37% year-over-year decline in LOE. Meanwhile, thanks to strong drilling results this year, Parsley increased its full-year production guidance. The driller expects more of the same in 2017, and plans to add another drilling rig to position itself for "rapid and efficient growth in 2017." Given Parsley's liquidity and healthydrilling returns, it would not be surprising to see the company add even more rigs in 2017 and beyond now that OPEC is back to supporting oil prices.</p>
<p>Permian Basin drillers have thrived during the downturn because of that basin's combination of oil-saturated rocks and low drilling costs, which has resulted in exceptional drilling returns at lower oil prices. Because of those returns, most Permian drillers had already forecast robust growth in 2017 and beyond. However, given that oil prices will likely run higher than the levels those companies expected, it is quite possible that the drillers' growth rates will also start accelerating.</p>
<p>10 stocks we like better than Laredo Petroleum 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=c4b1959a-99a0-4389-8d71-cf98f2177067&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 Laredo Petroleum wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=c4b1959a-99a0-4389-8d71-cf98f2177067&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of November 7, 2016</p>
<p><a href="http://my.fool.com/profile/TMFmd19/info.aspx" type="external">Matt DiLallo Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading texas legendary permian basin opens new window hottest oil play year opens new window thanks abundance cheap oil basin grew hotter november robust production growth reports permianfocused producers meanwhile announcement opec decided end war shale cutting output added fuel fire sending permian drillers surging last day month leading way laredo petroleum nyse lpi pdc energy nasdaq pdce clayton williams energy nyse cwei diamondback energy nasdaq fang parsley energy nyse pe lpi data ycharts opens new window heres fueled moves advertisement laredo petroleum got early boost reported solid thirdquarter results beginning month driller earned 284 million 012 per share thanks record quarterly production 51276 barrels oil equivalent per day boed top end guidance range top reported 13 decrease unit lease operating expenses loe prior quarter costs 37 past year successes put laredo petroleum pace boost output 10 year meanwhile growing inventory highreturn wells company expected keep growing even lower oil prices however opecs aim boost prices accelerate laredos growth potential improve returns earn future wells pdc energy also reported solid thirdquarter results early november companys production 39 year year 65263 boed loe declined 27 year year however highlight quarter transformational 15 billion transaction boost drillers acreage area permian basin deal positioned pdc energy deliver 31 compound annual production growth next three years said upside potential plan given opecs decision support oil prices clayton williams energy likewise reported thirdquarter results november though companys results got investors excited company reported adjusted net loss 351 million 250 per share due part sharp increase interest expenses refinanced debt earlier year said company since taken several steps reposition thrive lower oil prices including announcing sale giddings area assets transform clayton williams energy pureplay permian basin producer result company moved back position could start drilling potential able accelerateits drilling activities result opec deal image source getty images diamondback energy also reported thirdquarter results early november driller noted production 22 prior quarter 32 year year diamondback energy see growth slowing issued preliminary 2017 guidance projecting production growth 30 next year plans live within cash flow long oil remained 45 per barrel near certainty opec stepped put solid floor underneath crude could enable diamondback accelerate production growth going forward sticking themes parsley energy reported thirdquarter results beginning month permian driller deliveredan excellent quarter noting production 20 sequentially stunning 99 year year go along 37 yearoveryear decline loe meanwhile thanks strong drilling results year parsley increased fullyear production guidance driller expects 2017 plans add another drilling rig position rapid efficient growth 2017 given parsleys liquidity healthydrilling returns would surprising see company add even rigs 2017 beyond opec back supporting oil prices permian basin drillers thrived downturn basins combination oilsaturated rocks low drilling costs resulted exceptional drilling returns lower oil prices returns permian drillers already forecast robust growth 2017 beyond however given oil prices likely run higher levels companies expected quite possible drillers growth rates also start accelerating 10 stocks like better laredo petroleum 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 laredo petroleum wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 7 2016 matt dilallo 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 | 590 |
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<p>Many investors have wondered when Chinese smartphone giant Xiaomi , the world's most valuable start-up with a $46 billion valuation, will go public. But back in March, Xiaomi's global VP Hugo Barra told Reuters that the company had "no need to raise more money" and no plans to file an IPO.</p>
<p>Continue Reading Below</p>
<p>Xiaomi's Mi 5. Image source: Xiaomi.</p>
<p>Barra also noted that Xiaomi, which generated $12.5 billion in sales last year, is "self-funded" and the funds it raised during six funding rounds have been "allocated to investments." The company has already invested in over 50 start-ups to expand its ecosystem and diversify its business away from smartphones.</p>
<p>But if Xiaomi eventually goes public, its initial investors will likely profit, and the start-ups it invested in will be thrust into the spotlight. Let's get better acquainted with those companies.</p>
<p>11 companies and investment firmshave invested in Xiaomi. That list includes Morningside Group, Qiming Venture Partners, and IDG Capital Partners -- which are all private firms that are off-limits to mainstream investors.</p>
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<p>But it also includes Qualcomm Ventures, the investment arm of the world's biggest mobile chip maker. Qualcomm's stake in Xiaomi is unknown, but the Series B funding round it participated in raised$90 million and included five other investors. That round, completed in late 2011, valued Xiaomi at just $1 billion.</p>
<p>Qualcomm's investment in Xiaomi has proven useful before. Xiaomi's flagship devices have always been powered by Qualcomm's Snapdragon SoCs. Xiaomi also <a href="http://www.fool.com/investing/general/2015/12/04/this-startup-just-saved-qualcomm-inc-from-a-5-year.aspx?source=eptfxblnk0000004" type="external">quickly inked Opens a New Window.</a> a new 3G/4G licensing agreement with Qualcomm after the chipmaker claimed that Chinese OEMs were underreporting shipments to pay lower licensing fees. But that investment doesn't ensure long-term loyalty -- Xiaomi recently developed its own <a href="http://www.fool.com/investing/general/2016/05/03/qualcomm-incs-new-headache-xiaomis-first-party-chi.aspx?source=eptfxblnk0000004" type="external">first-party chip Opens a New Window.</a>for its lower-end devices to cut costsand put cheaper chipsfrom MediaTek in its low-end devices in India. Both moves could cause Qualcomm to lose market share.</p>
<p>Xiaomi's investment portfolio includes a broad range of companies focusing on mobile games, payments, videos, and online-to-offline (O2O) initiatives. Notable investments in that category include a stake in Chinese gamemaker Kingsoft, an investment in Andon's connected fitness device maker iHealth, a stake in Baidu-owned video site iQiyi, and a partnership with Uber. Xiaomi had hoped that revenue from those services would hit $1 billion last year, but it onlyreached $564 million.</p>
<p>Xiaomi owns a major stake incamera maker Yi Technology, which created the action cameras that it sells online in China. Yi's cameras are frequently compared to GoPro's , because they offer nearly identical hardware specs at <a href="http://www.fool.com/investing/general/2016/05/18/gopro-inc-should-worry-about-these-new-cameras.aspx?source=eptfxblnk0000004" type="external">much lower prices Opens a New Window.</a>. Xiaomi also invested in wearables maker Misfit, which was acquired by Fossil for $260 million last year. That investment complements its Mi Bands, which offer similar features as Fitbit's low-end trackers for a fraction of the price.</p>
<p>Yi's Action Camera (L) and Xiaomi's Mi Band (R). Image source: Company websites.</p>
<p>Xiaomi signed a mobile payments partnership with chipmaker NXP earlier this year, which puts NXP's NFC (near field communication) chips into its flagship Mi 5 phones for payment and transportation purposes across China. It also bought about 1,500 patents from Microsoftin June, which could finally give it the IP muscle to launch its smartphones in new markets like the U.S. and Europe.</p>
<p>It could be tough for Xiaomi to generate excitement for an IPO after its annual sales growth slowed from 135% in 2014 to just 5% in 2015. Smartphone sales in China are slowing down, and rivals like Huawei are successfully copying Xiaomi's core strategy of selling low-margin devices online with minimal advertising.</p>
<p>As its core smartphone market gets saturated, Xiaomi will likely boost its investments in other companies to diversify its business. U.S. investors should watch these moves carefully, since they could cause international headwinds for companies like Fitbit and GoPro, and also give it the momentum to challenge smartphone giants like Apple and Samsung in additional overseas markets.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/10/who-owns-xiaomi-technology-and-what-does-it-own.aspx" type="external">Who Owns Xiaomi Technology, and What Does It Own? 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> owns shares of Qualcomm. The Motley Fool owns shares of and recommends Apple, Baidu, GoPro, NXP Semiconductors, 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 Fitbit and Fossil. 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 | many investors wondered chinese smartphone giant xiaomi worlds valuable startup 46 billion valuation go public back march xiaomis global vp hugo barra told reuters company need raise money plans file ipo continue reading xiaomis mi 5 image source xiaomi barra also noted xiaomi generated 125 billion sales last year selffunded funds raised six funding rounds allocated investments company already invested 50 startups expand ecosystem diversify business away smartphones xiaomi eventually goes public initial investors likely profit startups invested thrust spotlight lets get better acquainted companies 11 companies investment firmshave invested xiaomi list includes morningside group qiming venture partners idg capital partners private firms offlimits mainstream investors advertisement also includes qualcomm ventures investment arm worlds biggest mobile chip maker qualcomms stake xiaomi unknown series b funding round participated raised90 million included five investors round completed late 2011 valued xiaomi 1 billion qualcomms investment xiaomi proven useful xiaomis flagship devices always powered qualcomms snapdragon socs xiaomi also quickly inked opens new window new 3g4g licensing agreement qualcomm chipmaker claimed chinese oems underreporting shipments pay lower licensing fees investment doesnt ensure longterm loyalty xiaomi recently developed firstparty chip opens new windowfor lowerend devices cut costsand put cheaper chipsfrom mediatek lowend devices india moves could cause qualcomm lose market share xiaomis investment portfolio includes broad range companies focusing mobile games payments videos onlinetooffline o2o initiatives notable investments category include stake chinese gamemaker kingsoft investment andons connected fitness device maker ihealth stake baiduowned video site iqiyi partnership uber xiaomi hoped revenue services would hit 1 billion last year onlyreached 564 million xiaomi owns major stake incamera maker yi technology created action cameras sells online china yis cameras frequently compared gopros offer nearly identical hardware specs much lower prices opens new window xiaomi also invested wearables maker misfit acquired fossil 260 million last year investment complements mi bands offer similar features fitbits lowend trackers fraction price yis action camera l xiaomis mi band r image source company websites xiaomi signed mobile payments partnership chipmaker nxp earlier year puts nxps nfc near field communication chips flagship mi 5 phones payment transportation purposes across china also bought 1500 patents microsoftin june could finally give ip muscle launch smartphones new markets like us europe could tough xiaomi generate excitement ipo annual sales growth slowed 135 2014 5 2015 smartphone sales china slowing rivals like huawei successfully copying xiaomis core strategy selling lowmargin devices online minimal advertising core smartphone market gets saturated xiaomi likely boost investments companies diversify business us investors watch moves carefully since could cause international headwinds companies like fitbit gopro also give momentum challenge smartphone giants like apple samsung additional overseas markets article owns xiaomi technology opens new window originally appeared foolcom leo sun opens new window owns shares qualcomm motley fool owns shares recommends apple baidu gopro nxp semiconductors qualcomm motley fool owns shares microsoft following options long january 2018 90 calls apple short january 2018 95 calls apple motley fool recommends fitbit fossil 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 | 536 |
<p />
<p>The past decade wasn't kind to AMD (NASDAQ: AMD), which ceded the x86 CPU market to Intel (NASDAQ: INTC) and lost the GPU market to Nvidia (NASDAQ: NVDA). AMD's CPUs and GPUs were cheaper, but they always seemed to lag behind Intel and Nvidia in terms of architecture and power efficiency.</p>
<p>Continue Reading Below</p>
<p>Image source: AMD investor presentation.</p>
<p>Between 2005 and2015, AMD's annual revenue dropped from $5.85 billion to $3.99 billion. During that same period, Intel's annual revenue rose 43% and Nvidia's revenue more than doubled. AMD lost nearly 70% of its market value over the past decade and went through three CEOs before Lisa Su took over in late 2014.</p>
<p>But under Su, AMD recently scored a major victory during its second quarter by achieving its first period of annual sales growth since the second quarter of 2014. Sales rose 9% to $1.03 billion during the quarter, beating estimates by about $75 million. AMD expects that growth to continue with about 18% sales growth for the third quarter. That news lifted AMD stock to four-year highs.</p>
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<p>Over the past few years, AMD realized that attacking Intel and Nvidia head-on was futile, since both companies had superior cash flows and higher R&amp;D and marketing budgets. Instead, AMD pivoted toward certain niche markets which its rivals had overlooked.</p>
<p>In 2013, it scored design wins with Sony and Microsoft to respectively power the PS4 and Xbox One with its semi-custom APUs -- which combine the functions of a CPU and GPU on a single SoC (system on chip). It also supplied the GPU for Nintendo's Wii U, which effectively locked Nvidia out of the eighth generation of gaming consoles.</p>
<p>All powered by AMD. Image source: Company websites.</p>
<p>Sales of semi-custom SoCs for consoles became a pillar of growth for AMD's EESC (Enterprise, Embedded, and Semi-Custom) business, which generated 58% of its sales last quarter. Revenue at the unit rose 5% annually and operating income more than tripled to $84 million. That growth offset an $81 million operating loss at its computing and graphics business. Looking ahead, the EESC business will likely get a boost from new <a href="http://www.fool.com/investing/2016/06/19/microsoft-and-sony-battle-for-vr-console-supremacy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">updated consoles Opens a New Window.</a> like Sony's PS4 Neo and Microsoft's Xbox One S and Scorpio.</p>
<p>AMD also sees niche growth potential in data centers, a market which Intel dominates with its Xeon processors. Instead of competing against Intel with x86 CPUs for high-end servers, AMD has started shipping ARMlicensed chips for lower-end servers. To complement that move, AMD formed a joint venture withChinese firm THATIC <a href="http://www.fool.com/investing/general/2016/04/27/should-you-buy-advanced-micro-devices-inc-after-it.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">earlier this year Opens a New Window.</a> to develop SoCs for the Chinese server market. It also formed another joint venture with Nantong Fujitsu Microelectronics to expand its ATMP (assembly, test, mark, and pack) capabilities in China.</p>
<p>Tech M&amp;A advisory firm Digi-Capital estimates that the fledgling virtual reality market could grow from practically nothingtoday to $30 billion by 2020. That growth could benefit AMD in two major ways.</p>
<p>When the Oculus Rift and HTC Vive were launched earlier this year, consumers had to buy a $1,000 PC to use the headsets. Since the Rift costs $600 and the Vive costs $800, VR remained a hobby for rich tech enthusiasts instead of mainstream consumers. However, AMD recently lowered the price of VR-ready PCs considerably with its $200 RX 480, thecheapest VR-capable card on the market. Current PC builds using theRX 480 have reduced the price of a VR-ready PC to just $600.</p>
<p>The Rift and Vive currently depend on the PC's GPU power, but companies will likely launch stand-alone headsets which aren't tethered to desktops in the near future. Like gaming consoles, these devices will run better on efficient semi-custom APUs instead of stand-alone CPUs and GPUs. AMD's market-dominating position in semi-custom APUs for consoles gives it a major advantage in this market.</p>
<p>Posting 9% sales growth might not seem like a huge victory, but it's certainly AMD's biggest win of the year so far. However, investors shouldn't ignore three upcoming challenges that could derail AMD's turnaround.</p>
<p>First, Nvidia's new GTX cards offer a lot of power for just a little more cash. The new <a href="http://www.fool.com/investing/2016/07/22/amd-vs-nvidia-who-will-win-the-low-end-vr-gpu-mark.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">GTX 1060 Opens a New Window.</a>, for example, offers better performance than theRX 480 for just $50 more. Second, AMD must prove that its <a href="http://www.fool.com/investing/general/2015/09/22/advanced-micro-devices-incs-zen-could-be-in-deep-t.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Zen x86 chips Opens a New Window.</a>, which willarrive at the end of the year, can effectively compete against Intel's upcoming Kaby Lake andstop the bleeding at its CPU business. Lastly, Nintendo has reportedly selected Nvidia's Tegra to power its upcoming <a href="http://www.fool.com/investing/2016/07/28/will-nintendo-bring-nvidia-back-to-the-console-mar.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">NX console Opens a New Window.</a>, which will likely arrive nextMarch. If the NX is a surprise hit like the original Wii, it could hurt sales of the PS4 and Xbox One and AMD's EESC sales.</p>
<p>I think AMD's outlook is improving, but I'd be hesitant to call it a "turnaround" until it can overcome those challenges. But if AMD's revenues can continue growing year-over-year for the next few quarters, it could be the start of a major comeback for the beaten-down chipmaker.</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> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool owns shares of Microsoft. 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://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 | past decade wasnt kind amd nasdaq amd ceded x86 cpu market intel nasdaq intc lost gpu market nvidia nasdaq nvda amds cpus gpus cheaper always seemed lag behind intel nvidia terms architecture power efficiency continue reading image source amd investor presentation 2005 and2015 amds annual revenue dropped 585 billion 399 billion period intels annual revenue rose 43 nvidias revenue doubled amd lost nearly 70 market value past decade went three ceos lisa su took late 2014 su amd recently scored major victory second quarter achieving first period annual sales growth since second quarter 2014 sales rose 9 103 billion quarter beating estimates 75 million amd expects growth continue 18 sales growth third quarter news lifted amd stock fouryear highs advertisement past years amd realized attacking intel nvidia headon futile since companies superior cash flows higher rampd marketing budgets instead amd pivoted toward certain niche markets rivals overlooked 2013 scored design wins sony microsoft respectively power ps4 xbox one semicustom apus combine functions cpu gpu single soc system chip also supplied gpu nintendos wii u effectively locked nvidia eighth generation gaming consoles powered amd image source company websites sales semicustom socs consoles became pillar growth amds eesc enterprise embedded semicustom business generated 58 sales last quarter revenue unit rose 5 annually operating income tripled 84 million growth offset 81 million operating loss computing graphics business looking ahead eesc business likely get boost new updated consoles opens new window like sonys ps4 neo microsofts xbox one scorpio amd also sees niche growth potential data centers market intel dominates xeon processors instead competing intel x86 cpus highend servers amd started shipping armlicensed chips lowerend servers complement move amd formed joint venture withchinese firm thatic earlier year opens new window develop socs chinese server market also formed another joint venture nantong fujitsu microelectronics expand atmp assembly test mark pack capabilities china tech mampa advisory firm digicapital estimates fledgling virtual reality market could grow practically nothingtoday 30 billion 2020 growth could benefit amd two major ways oculus rift htc vive launched earlier year consumers buy 1000 pc use headsets since rift costs 600 vive costs 800 vr remained hobby rich tech enthusiasts instead mainstream consumers however amd recently lowered price vrready pcs considerably 200 rx 480 thecheapest vrcapable card market current pc builds using therx 480 reduced price vrready pc 600 rift vive currently depend pcs gpu power companies likely launch standalone headsets arent tethered desktops near future like gaming consoles devices run better efficient semicustom apus instead standalone cpus gpus amds marketdominating position semicustom apus consoles gives major advantage market posting 9 sales growth might seem like huge victory certainly amds biggest win year far however investors shouldnt ignore three upcoming challenges could derail amds turnaround first nvidias new gtx cards offer lot power little cash new gtx 1060 opens new window example offers better performance therx 480 50 second amd must prove zen x86 chips opens new window willarrive end year effectively compete intels upcoming kaby lake andstop bleeding cpu business lastly nintendo reportedly selected nvidias tegra power upcoming nx console opens new window likely arrive nextmarch nx surprise hit like original wii could hurt sales ps4 xbox one amds eesc sales think amds outlook improving id hesitant call turnaround overcome challenges amds revenues continue growing yearoveryear next quarters could start major comeback beatendown chipmaker 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 position stocks mentioned motley fool owns shares recommends nvidia motley fool owns shares microsoft 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 | 651 |
<p>As recently as 2003, Kenmore -- a private brand owned by Sears Holdings (NASDAQ: SHLD) -- held a 27% share of the U.S. appliance market. However, with customer traffic and sales in a long-term downward spiral at Sears, Kenmore's market share has plunged. Kenmore's very limited distribution outside of Sears stores has clearly had a dramatic impact on its sales.</p>
<p>In this episode of <a href="https://www.fool.com/podcasts/industry-focus?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=ad2b9256-7918-11e7-8c93-0050569d4be0&amp;utm_source=foxbusiness" type="external">Industry Focus: Consumer Goods Opens a New Window.</a>, the team discusses Sears Holdings' recent decision to start selling Kenmore appliances through Amazon.com (NASDAQ: AMZN). This desperation move will introduce the Kenmore brand to a new set of consumers, which could boost sales. However, in the long run, it will further undermine the viability of Sears' struggling retail franchise.</p>
<p>Continue Reading Below</p>
<p>A full transcript follows the video.</p>
<p>10 stocks we like better than AmazonWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
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<p>*Stock Advisor returns as of August 1, 2017</p>
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<p>This video was recorded on Aug. 1, 2017.</p>
<p>Vincent Shen: A couple of weeks ago, Sears&#160;announced&#160;that it would make its&#160;Kenmore appliances available through Amazon. Kenmore is one of the last remaining high-value brands&#160;propping the company up at this point. They used to have a leading share of the&#160;appliance market, but it's deteriorated&#160;quite a bit along with the department-store chain. Even then,&#160;I think it's still one of the biggest and most popular brands in the industry.&#160;This is a pretty strange partnership here&#160;between Sears and the company that&#160;a lot of people would say is most responsible for its woes&#160;over the last decade. What's&#160;your take, Adam? The word you mentioned to me before the show was "surrender," and I thought that was interesting.</p>
<p>Adam Levine-Weinberg: Yeah,&#160;I really do see this as surrender on the part of Sears to Amazon. And&#160;to be honest, I think it's actually rational for Sears to be surrendering to Amazon.com at this point.&#160;I think it's been proven over many, many years that Sears does not have what it takes&#160;as a standalone company to compete with Amazon.com, or with other department-store chains,&#160;even the ones that are struggling a bit themselves. If&#160;you look at Sears' results, their&#160;revenue has plunged in recent years. Right now, they've been posting pretty steady&#160;high-single-digit to even double-digit&#160;comparable store sales declines regularly, and&#160;that's even while closing hundreds of stores. If&#160;you look at their total sales line,&#160;it's down 20% in a lot of quarters.</p>
<p>They're&#160;floundering. They don't have much of a future as a retailer. At that point, their main&#160;assets are really their real estate,&#160;which they've been selling off, and their house brands that are still popular. They were&#160;able to get about $900 million of value for Craftsman, their tool brand,&#160;earlier this year. And Kenmore is probably the next most valuable brand they have still remaining with the company.&#160;I think selling Kenmore appliances on Amazon.com is going to be good for the Kenmore brand,&#160;because it's something that's been done a disservice by being stuck in&#160;Sears and Kmart stores only,&#160;because it was a great brand&#160;not even that long ago, 20 years ago, when people still went to Sears sometimes.&#160;Kenmore was a top appliance brand. A big reason why it's lost market share&#160;is because people simply aren't going to Sears. They're&#160;not seeing it.</p>
<p>Shen: It's&#160;a limited-distribution issue.</p>
<p>Levine-Weinberg: So getting distribution out to Amazon.com will definitely get it in front of more people. However, millennials might not even know the Kenmore brand as much as their parents do,&#160;just because they haven't been shopping in Sears and so they don't see it in the same way that,&#160;maybe if they're walking through&#160;Home Depot,&#160;they see other brands of appliances. So that's definitely a concern. But better late than never&#160;to get this&#160;broader distribution.</p>
<p>Now, the problem for Sears is,&#160;once you can go buy Kenmore appliances on Amazon.com,&#160;why would you go to Sears for anything? So that's really the issue. To some extent, they'll&#160;win some market share for Kenmore against other appliance makers. But really, what they're going to do is drive more share of Kenmore sales out of the Sears stores and into Amazon.com, which is going to make the lack of profitability for the Sears stores get even worse, forcing more store closures. In my opinion,&#160;this story is going to end with Sears going bankrupt. At the end of the day, they can still sell or keep the Kenmore brand, and&#160;that may actually be one of their&#160;most valuable assets. And&#160;getting out of the retail industry entirely&#160;might be the best play in the long run for Sears Holdings.</p>
<p><a href="http://my.fool.com/profile/TMFGemHunter/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=ad2b9256-7918-11e7-8c93-0050569d4be0&amp;utm_source=foxbusiness" type="external">Adam Levine-Weinberg Opens a New Window.</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/TMFJourneyMan/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=ad2b9256-7918-11e7-8c93-0050569d4be0&amp;utm_source=foxbusiness" type="external">Vincent Shen Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends Home Depot. 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=ad2b9256-7918-11e7-8c93-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | recently 2003 kenmore private brand owned sears holdings nasdaq shld held 27 share us appliance market however customer traffic sales longterm downward spiral sears kenmores market share plunged kenmores limited distribution outside sears stores clearly dramatic impact sales episode industry focus consumer goods opens new window team discusses sears holdings recent decision start selling kenmore appliances amazoncom nasdaq amzn desperation move introduce kenmore brand new set consumers could boost sales however long run undermine viability sears struggling retail franchise continue reading full transcript follows video 10 stocks like better amazonwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right amazon wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 advertisement video recorded aug 1 2017 vincent shen couple weeks ago sears160announced160that would make its160kenmore appliances available amazon kenmore one last remaining highvalue brands160propping company point used leading share the160appliance market deteriorated160quite bit along departmentstore chain even then160i think still one biggest popular brands industry160this pretty strange partnership here160between sears company that160a lot people would say responsible woes160over last decade whats160your take adam word mentioned show surrender thought interesting adam levineweinberg yeah160i really see surrender part sears amazon and160to honest think actually rational sears surrendering amazoncom point160i think proven many many years sears takes160as standalone company compete amazoncom departmentstore chains160even ones struggling bit if160you look sears results their160revenue plunged recent years right theyve posting pretty steady160highsingledigit even doubledigit160comparable store sales declines regularly and160thats even closing hundreds stores if160you look total sales line160its 20 lot quarters theyre160floundering dont much future retailer point main160assets really real estate160which theyve selling house brands still popular were160able get 900 million value craftsman tool brand160earlier year kenmore probably next valuable brand still remaining company160i think selling kenmore appliances amazoncom going good kenmore brand160because something thats done disservice stuck in160sears kmart stores only160because great brand160not even long ago 20 years ago people still went sears sometimes160kenmore top appliance brand big reason lost market share160is people simply arent going sears theyre160not seeing shen its160a limiteddistribution issue levineweinberg getting distribution amazoncom definitely get front people however millennials might even know kenmore brand much parents do160just havent shopping sears dont see way that160maybe theyre walking through160home depot160they see brands appliances thats definitely concern better late never160to get this160broader distribution problem sears is160once go buy kenmore appliances amazoncom160why would go sears anything thats really issue extent theyll160win market share kenmore appliance makers really theyre going drive share kenmore sales sears stores amazoncom going make lack profitability sears stores get even worse forcing store closures opinion160this story going end sears going bankrupt end day still sell keep kenmore brand and160that may actually one their160most valuable assets and160getting retail industry entirely160might best play long run sears holdings adam levineweinberg opens new window position stocks mentioned vincent shen opens new window position stocks mentioned motley fool owns shares recommends amazon motley fool recommends home depot motley fool disclosure policy opens new window | 512 |
<p><a href="/topics/carter-page/" type="external">Carter Page</a>, the Trump campaign’s onetime volunteer adviser on <a href="/topics/russia/" type="external">Russia</a>, views with amazement how much a Democratic opposition research dossier has been increasingly embraced by the liberal power structure in <a href="/topics/washington/" type="external">Washington</a>.</p>
<p>He told The Washington Times that he is stunned because the dossier is “completely false” and “full of lies” about his supposed conduct vis-a-vis <a href="/topics/russia/" type="external">Russia</a> last summer. The <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a>, which obtained a copy of the dossier, has been investigating the conduct since July.</p>
<p>“The mistakes are so laughable and humorous they’re beyond words,” <a href="/topics/carter-page/" type="external">Mr. Page</a> said of a dossier that has him meeting with Russians whom he insists he has never met. “It’s just so wild that it’s amazing.”</p>
<p>Not one of the sensational allegations in the Democrat-financed memos from former British spy <a href="/topics/christopher-steele/" type="external">Christopher Steele</a> has been verified independently, at least publicly. Yet Democrats are citing the dossier as a reason to achieve their major political objective — an independent investigative commission on <a href="/topics/donald-trump/" type="external">Trump</a>- <a href="/topics/russia/" type="external">Russia</a>.</p>
<p>Democrats say routinely on cable news channels that some of <a href="/topics/christopher-steele/" type="external">Mr. Steele</a>’s findings have been confirmed, but they do not specify which ones.</p>
<p><a href="/topics/christopher-steele/" type="external">Mr. Steele</a>’s gossipy, thirdhand anecdotes contain a central allegation: There was an elaborate conspiracy between <a href="/topics/donald-trump/" type="external">Trump</a> campaign aides and the highest levels of the Kremlin to hack the Hillary Clinton campaign computers, release stolen emails and spread disinformation.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> was smack dab in the middle, said chief accuser <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> and his Orbis Business Intelligence firm in London.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> runs investment firm Global Energy Capital LLC in New York City. Before that, he was an investment banker for Merrill Lynch and spent three years in <a href="/topics/moscow/" type="external">Moscow</a> last decade making deals with Russian businesses. His knowledge of and communications with Russians is part of his livelihood.</p>
<p>He has been doing exactly what then-Secretary of State Hillary Clinton urged American entrepreneurs to do in 2012 as she stood next to then-Prime Minister Vladimir Putin.</p>
<p>“We are committed to broadening and deepening ties between our two economies,” she said in <a href="/topics/moscow/" type="external">Moscow</a>.</p>
<p>The Steele dossier, written as a series of memos during the summer and fall, hit the streets Jan. 10 via the news website Buzzfeed, whose editor publicly doubted its veracity. The memos contained sensational charges that <a href="/topics/carter-page/" type="external">Mr. Page</a> colluded with Putin oligarchs. In The Times interview, <a href="/topics/carter-page/" type="external">Mr. Page</a> specifically rebutted all of the accusations.</p>
<p>There are four main charges concerning <a href="/topics/carter-page/" type="external">Mr. Page</a>:</p>
<p>• <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> wrote that Paul Manafort, <a href="/topics/donald-trump/" type="external">Mr. Trump</a>’s summertime campaign manager, and <a href="/topics/carter-page/" type="external">Mr. Page</a> formed an alliance to work with Russian intelligence to hack the Clinton campaign.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> called this assertion “ridiculous.” Referring to himself as a “junior paid volunteer,” he said he has never met Mr. Manafort.</p>
<p>“ <a href="/topics/christopher-steele/" type="external">Steele</a> is saying I’m conspiring with Manafort. It’s so fictional,” he said.</p>
<p>• Second, <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> wrote that during <a href="/topics/carter-page/" type="external">Mr. Page</a>’s July trip to <a href="/topics/moscow/" type="external">Moscow</a> to give a speech at the New Economic School, he held a secret meeting with Igor Sechin, president of the state-owned Rosneft oil company and a close ally of President Putin.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> said he delivered an unpaid speech at the university, a talk that was covered by the news media that day. <a href="/topics/carter-page/" type="external">Mr. Page</a> said he has never met Mr. Sechin.</p>
<p>“No, I have never met him,” he said. “It’s totally false.”</p>
<p>• <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> also wrote that Mr. Sechin offered <a href="/topics/carter-page/" type="external">Mr. Page</a> a brokerage fee when <a href="/topics/russia/" type="external">Russia</a> sold a 19 percent stake in Rosneft to outside investors. In exchange, the Trump adviser was to urge the candidate to end economic sanctions against <a href="/topics/russia/" type="external">Russia</a>.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> said no one ever made such an offer.</p>
<p>• In his fourth charge against <a href="/topics/carter-page/" type="external">Mr. Page</a>, <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> wrote that, while in <a href="/topics/moscow/" type="external">Moscow</a>, <a href="/topics/carter-page/" type="external">Mr. Page</a> also met with a man named Igor Divyekin, a Russian official. He supposedly told <a href="/topics/carter-page/" type="external">Mr. Page</a> that the Kremlin had compromising information on Hillary Clinton, the Democratic presidential nominee, as well as <a href="/topics/donald-trump/" type="external">Mr. Trump</a>.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> said the first he ever heard of Mr. Divyekin was from the dossier.</p>
<p>He told The Times: “I had never heard of him. I asked a lot of people I knew in <a href="/topics/moscow/" type="external">Moscow</a>, all people from the university, some business friend people, ‘Have you ever heard of this guy?’</p>
<p>“I’m very careful that the things I say are accurate. If I’m going to say I did not meet him, I may have said hello to someone, right? So I wanted to be double, triple, quadruple sure that what I’m saying is accurate, right?</p>
<p>“Not only had I never heard of him, everyone I asked had never heard the guy’s name. He’s not a known person. He’s like someone in the bureaucracy who may have an important position but not someone who is publicly known and not someone I met with.”</p>
<p>Intel committee ‘facts’</p>
<p>The Steele paper, financed by Democrats via the opposition research firm Fusion GPS, has been denounced as inaccurate by some in the news media, by former Obama administration intelligence officials and by the Trump team.</p>
<p>James R. Clapper, former director of national intelligence, said his agency could not verify any of <a href="/topics/christopher-steele/" type="external">Mr. Steele</a>’s sources.</p>
<p>Former Deputy CIA Director Michael J. Morell, a Clinton adviser, said he learned that <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> did not talk to sources directly but with paid intermediaries.</p>
<p>“On the question of the Trump campaign conspiring with the Russians here, there is smoke but there is no fire, at all,” Mr. Morell said at an event sponsored by security analysis website The Cipher Brief. “There’s no little campfire, there’s no little candle, there’s no spark. And there’s a lot of people looking for it.”</p>
<p>In his most sensational allegation, <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> wrote that <a href="/topics/donald-trump/" type="external">Mr. Trump</a>’s attorney, Michael Cohen, met in Prague with Russian intelligence officials.</p>
<p>Mr. Cohen has presented evidence that he was in Southern California at the time. He said he has never been to Prague and showed the campaign his passport to prove it.</p>
<p>In other words, a critical meeting evincing a <a href="/topics/donald-trump/" type="external">Trump</a> conspiracy could not have happened, casting doubt on <a href="/topics/christopher-steele/" type="external">Mr. Steele</a>’s investigative methods and other claims of secret get-togethers.</p>
<p>What’s more, Russian tech CEO Aleksej Gubard is suing <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> for charging that his firm was involved in Russian-sponsored hacking into Democrats’ emails.</p>
<p>Yet <a href="/topics/carter-page/" type="external">Mr. Page</a> watched with amazement on March 20 as Democrats on the House Permanent Select Committee on Intelligence read portions of the Steele dossier into the record as certified facts.</p>
<p>They were led by Rep. Adam B. Schiff of California, the committee’s ranking Democrat. At the committee’s first public hearing in its probe into Russian interference in the Nov. 8 election, Mr. Schiff read <a href="/topics/christopher-steele/" type="external">Mr. Steele</a>’s version of <a href="/topics/carter-page/" type="external">Mr. Page</a>’s visit to <a href="/topics/moscow/" type="external">Moscow</a>. He offered no independent verification.</p>
<p>Mr. Schiff gave <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> credit for knowing the precise share — 19 percent — that oil company Rosneft planned to sell, when in fact the Russian government had announced that percentage months before <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> wrote the memo. It was public knowledge.</p>
<p>At the March 20 hearing, FBI Director James B. Comey announced that he had been authorized by the Justice Department to disclose that the bureau was investigating any collusion between the Trump campaign and Russian officials.</p>
<p>The Washington Post reported this month that the Obama Justice Department obtained a Foreign Intelligence Surveillance Act court warrant to surveil <a href="/topics/carter-page/" type="external">Mr. Page</a> as a foreign agent, beginning in July.</p>
<p>This was about the same time the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> obtained the Steele dossier.</p>
<p>Questions for the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a></p>
<p>The question some Republicans are asking is: Did the Steele dossier prompt the Obama administration to open the investigation into candidate <a href="/topics/donald-trump/" type="external">Trump</a>" And did the administration cite information in the dossier as evidence to obtain the warrant"</p>
<p>The intrigue grows deeper. The Post reported Feb. 28 that the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> reached a financial agreement with <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> to continue investigating <a href="/topics/donald-trump/" type="external">Mr. Trump</a>.</p>
<p>If true, the agreement created the odd marriage of a partisan Democrat-paid investigator being hired by the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> to investigate the future president a few weeks before the election. The deal never went through because the dossier and <a href="/topics/christopher-steele/" type="external">Mr. Steele</a>’s name had become public, The Post reported.</p>
<p>The timeline (the dossier went public in January) would mean that the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> wanted <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> to investigate President-elect <a href="/topics/donald-trump/" type="external">Trump</a> and ultimately President <a href="/topics/donald-trump/" type="external">Trump</a>.</p>
<p>The Washington Times asked the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> to confirm or deny that it had made such a deal. The public affairs office declined.</p>
<p>The New York Times reported that Fusion GPS and <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> spread the dossier to journalists and to the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a>.</p>
<p>Senate Judiciary Committee Chairman Chuck Grassley, Iowa Republican, has begun pressing the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> for answers on what role the dossier played as the bureau made decisions to investigate and surveil <a href="/topics/donald-trump/" type="external">Trump</a> aides.</p>
<p>“The idea that the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> and associates of the Clinton campaign would pay <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> to investigate the Republican nominee for president in the run-up to the election raises further questions about the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a>’s independence from politics, as well as the Obama administration’s use of law enforcement and intelligence agencies for political ends,” Mr. Grassley said in a March 6 letter to Mr. Comey, the bureau’s director.</p>
<p>He demanded a reply by March 20 and asked for documentation of agents’ interviews with <a href="/topics/christopher-steele/" type="external">Mr. Steele</a>. A subsequent Grassley letter said the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> had missed the March 20 deadline.</p>
<p>A key Grassley question: “Has the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> relied on or otherwise referenced the memos or any information in the memos in seeking a FISA warrant, other search warrant or any other judicial process?”</p>
<p>He also asked: “Has the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> verified or corroborated any of the allegations made in the memos? Were any allegations or other information from the memo included in any documents created by the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a>, or which the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> helped to create, without having been independently verified or corroborated by the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> beforehand? If so, why?”</p>
<p>Mr. Grassley on March 24 targeted Democratic Party-linked Fusion GPS, run by former Wall Street Journal reporter Glenn R. Simpson.</p>
<p>“When political opposition research becomes the basis for law enforcement or intelligence efforts, it raises substantial questions about the independence of law enforcement and intelligence from politics,” Mr. Grassley wrote to Mr. Simpson.</p>
<p>On April 7, Fusion’s attorneys of the <a href="/topics/washington/" type="external">Washington</a> firm Cunningham, Levy, Muse LLP wrote to Mr. Grassley saying the company would not answer the chairman’s questions.</p>
<p>‘Under surveillance’</p>
<p>“The March 24 letter calls for information and documents protected by the First Amendment rights, attorney-client privilege, attorney work product, and contractual rights (e.g., confidentiality agreements) of Fusion GPS and/or its clients,” the letter said. “Thus, so as to preserve those privileges and rights, we will not otherwise be responding to the questions enumerated within the March 24 letter.”</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> told The Washington Times that he, too, would like to know what role the unproven dossier played in the Obama administration persuading a judge to approve a wiretap on him.</p>
<p>“When you lie to a court, the FISA court is a court, that is a crime,” he said.</p>
<p>The Steele dossier appears to have made its way into intelligence briefings to members of Congress and then into news stories, though the Steele memos were not identified as the source.</p>
<p>In September, months before Buzzfeed published the raw <a href="/topics/christopher-steele/" type="external">Steele</a> memos, a story appeared in Yahoo News. It cited intelligence sources as saying they were investigating whether <a href="/topics/carter-page/" type="external">Mr. Page</a> secretly met in <a href="/topics/moscow/" type="external">Moscow</a> with Igor Sechin and Igor Divyekin — the two names found in the Steele dossier.</p>
<p>Again, <a href="/topics/carter-page/" type="external">Mr. Page</a> told The Times that he had never met with those two Russians.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> said that story spelled the end to his volunteer work for <a href="/topics/donald-trump/" type="external">Mr. Trump</a>. Campaign representatives said he was not part of the Trump team.</p>
<p>Before the Yahoo story, then-Sen. Harry Reid wrote a letter to Mr. Comey in August. He did not name <a href="/topics/carter-page/" type="external">Mr. Page</a> but referred to a “ <a href="/topics/donald-trump/" type="external">Trump</a> adviser” who was accused of meeting with “high-ranking sanctioned individuals while in <a href="/topics/moscow/" type="external">Moscow</a>.” The charge appears to come right out of the Steele investigation which had been turned over to the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a>.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> was an ideal suspect for liberals to accuse of <a href="/topics/moscow/" type="external">Moscow</a> collusion, given his pro- <a href="/topics/moscow/" type="external">Moscow</a> stances, his opposition to economic sanctions and his investments in Gazprom, the Russian natural gas firm.</p>
<p>Mr. Reid said it was a conflict of interest for a <a href="/topics/donald-trump/" type="external">Trump</a> surrogate and investor in <a href="/topics/russia/" type="external">Russia</a> to be promoting an end to sanctions.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> said the focus of his investments since founding Global Energy in 2008 has been the Middle East, Africa, Asia and North America.</p>
<p><a href="/topics/carter-page/" type="external">Mr. Page</a> served as a Navy officer from 1993 to 1998, achieving the rank of lieutenant. He received the Joint Service Commendation Medal as a U.N. military observer in the Western Sahara. He received the Navy Achievement Medal for his work with the USS America aircraft carrier battle group in the Adriatic Sea during the Bosnia conflict.</p>
<p>After Mr. Schiff read portions of the Steele dossier at the March 20 intelligence committee hearing, <a href="/topics/carter-page/" type="external">Mr. Page</a> sent a letter to him and committee Chairman Devin Nunes, California Republican.</p>
<p>“I would eagerly welcome the chance to speak with the committee to help finally set the record straight following the false evidence, illegal activities as well as other lies distributed by certain politically motivated suspects in coordination with the Obama administration, which defamed me and other Americans,” he wrote.</p>
<p>Directly responding to Mr. Schiff’s reliance on the unproven dossier, <a href="/topics/carter-page/" type="external">Mr. Page</a> wrote: “Amongst many other complete lies, this excerpt from the highly inaccurate dossier concocted by the political consultant <a href="/topics/christopher-steele/" type="external">Mr. Steele</a> remained one of the primary false allegations against me throughout much of last year.</p>
<p>“Extensive recent reporting by The New York Times and other news organizations has been built on a foundation of many falsehoods with potential support from members of the Obama administration,” he wrote.</p>
<p>In a separate letter to the Senate Select Committee on Intelligence last month, <a href="/topics/carter-page/" type="external">Mr. Page</a> described his business routine: He works from an office building attached to the Trump Tower on Fifth Avenue, dines at the Trump Grille, meets associates in the Trump Tower Starbucks and has attended campaign events there.</p>
<p>Thus, he charged, the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> surveillance of him by the Obama administration amounted to surveilling the Trump campaign.</p>
<p>“So if prior media reports may be believed that surveillance was indeed undertaken against me and other <a href="/topics/donald-trump/" type="external">Trump</a> supporters, it should be essentially deemed as a proven fact that the American people’s concerns that Trump Tower was under surveillance last year is entirely correct,” he said, a reference to President <a href="/topics/donald-trump/" type="external">Trump</a>’s assertion that his office was “wiretapped” by the Obama administration.</p>
<p>Asked about the status of the <a href="/topics/federal-bureau-of-investigation/" type="external">FBI</a> investigation, <a href="/topics/carter-page/" type="external">Mr. Page</a> told The Washington Times, “I’m quite optimistic in the direction this is heading.”</p>
<p>Copyright © 2018 The Washington Times, LLC. <a href="https://goo.gl/forms/xGjXcUKYsKxMeCUl1" type="external">Click here for reprint permission</a>.</p>
<p>&#160;</p> | true | 0 | carter page trump campaigns onetime volunteer adviser russia views amazement much democratic opposition research dossier increasingly embraced liberal power structure washington told washington times stunned dossier completely false full lies supposed conduct visavis russia last summer fbi obtained copy dossier investigating conduct since july mistakes laughable humorous theyre beyond words mr page said dossier meeting russians insists never met wild amazing one sensational allegations democratfinanced memos former british spy christopher steele verified independently least publicly yet democrats citing dossier reason achieve major political objective independent investigative commission trump russia democrats say routinely cable news channels mr steeles findings confirmed specify ones mr steeles gossipy thirdhand anecdotes contain central allegation elaborate conspiracy trump campaign aides highest levels kremlin hack hillary clinton campaign computers release stolen emails spread disinformation mr page smack dab middle said chief accuser mr steele orbis business intelligence firm london mr page runs investment firm global energy capital llc new york city investment banker merrill lynch spent three years moscow last decade making deals russian businesses knowledge communications russians part livelihood exactly thensecretary state hillary clinton urged american entrepreneurs 2012 stood next thenprime minister vladimir putin committed broadening deepening ties two economies said moscow steele dossier written series memos summer fall hit streets jan 10 via news website buzzfeed whose editor publicly doubted veracity memos contained sensational charges mr page colluded putin oligarchs times interview mr page specifically rebutted accusations four main charges concerning mr page mr steele wrote paul manafort mr trumps summertime campaign manager mr page formed alliance work russian intelligence hack clinton campaign mr page called assertion ridiculous referring junior paid volunteer said never met mr manafort steele saying im conspiring manafort fictional said second mr steele wrote mr pages july trip moscow give speech new economic school held secret meeting igor sechin president stateowned rosneft oil company close ally president putin mr page said delivered unpaid speech university talk covered news media day mr page said never met mr sechin never met said totally false mr steele also wrote mr sechin offered mr page brokerage fee russia sold 19 percent stake rosneft outside investors exchange trump adviser urge candidate end economic sanctions russia mr page said one ever made offer fourth charge mr page mr steele wrote moscow mr page also met man named igor divyekin russian official supposedly told mr page kremlin compromising information hillary clinton democratic presidential nominee well mr trump mr page said first ever heard mr divyekin dossier told times never heard asked lot people knew moscow people university business friend people ever heard guy im careful things say accurate im going say meet may said hello someone right wanted double triple quadruple sure im saying accurate right never heard everyone asked never heard guys name hes known person hes like someone bureaucracy may important position someone publicly known someone met intel committee facts steele paper financed democrats via opposition research firm fusion gps denounced inaccurate news media former obama administration intelligence officials trump team james r clapper former director national intelligence said agency could verify mr steeles sources former deputy cia director michael j morell clinton adviser said learned mr steele talk sources directly paid intermediaries question trump campaign conspiring russians smoke fire mr morell said event sponsored security analysis website cipher brief theres little campfire theres little candle theres spark theres lot people looking sensational allegation mr steele wrote mr trumps attorney michael cohen met prague russian intelligence officials mr cohen presented evidence southern california time said never prague showed campaign passport prove words critical meeting evincing trump conspiracy could happened casting doubt mr steeles investigative methods claims secret gettogethers whats russian tech ceo aleksej gubard suing mr steele charging firm involved russiansponsored hacking democrats emails yet mr page watched amazement march 20 democrats house permanent select committee intelligence read portions steele dossier record certified facts led rep adam b schiff california committees ranking democrat committees first public hearing probe russian interference nov 8 election mr schiff read mr steeles version mr pages visit moscow offered independent verification mr schiff gave mr steele credit knowing precise share 19 percent oil company rosneft planned sell fact russian government announced percentage months mr steele wrote memo public knowledge march 20 hearing fbi director james b comey announced authorized justice department disclose bureau investigating collusion trump campaign russian officials washington post reported month obama justice department obtained foreign intelligence surveillance act court warrant surveil mr page foreign agent beginning july time fbi obtained steele dossier questions fbi question republicans asking steele dossier prompt obama administration open investigation candidate trump administration cite information dossier evidence obtain warrant intrigue grows deeper post reported feb 28 fbi reached financial agreement mr steele continue investigating mr trump true agreement created odd marriage partisan democratpaid investigator hired fbi investigate future president weeks election deal never went dossier mr steeles name become public post reported timeline dossier went public january would mean fbi wanted mr steele investigate presidentelect trump ultimately president trump washington times asked fbi confirm deny made deal public affairs office declined new york times reported fusion gps mr steele spread dossier journalists fbi senate judiciary committee chairman chuck grassley iowa republican begun pressing fbi answers role dossier played bureau made decisions investigate surveil trump aides idea fbi associates clinton campaign would pay mr steele investigate republican nominee president runup election raises questions fbis independence politics well obama administrations use law enforcement intelligence agencies political ends mr grassley said march 6 letter mr comey bureaus director demanded reply march 20 asked documentation agents interviews mr steele subsequent grassley letter said fbi missed march 20 deadline key grassley question fbi relied otherwise referenced memos information memos seeking fisa warrant search warrant judicial process also asked fbi verified corroborated allegations made memos allegations information memo included documents created fbi fbi helped create without independently verified corroborated fbi beforehand mr grassley march 24 targeted democratic partylinked fusion gps run former wall street journal reporter glenn r simpson political opposition research becomes basis law enforcement intelligence efforts raises substantial questions independence law enforcement intelligence politics mr grassley wrote mr simpson april 7 fusions attorneys washington firm cunningham levy muse llp wrote mr grassley saying company would answer chairmans questions surveillance march 24 letter calls information documents protected first amendment rights attorneyclient privilege attorney work product contractual rights eg confidentiality agreements fusion gps andor clients letter said thus preserve privileges rights otherwise responding questions enumerated within march 24 letter mr page told washington times would like know role unproven dossier played obama administration persuading judge approve wiretap lie court fisa court court crime said steele dossier appears made way intelligence briefings members congress news stories though steele memos identified source september months buzzfeed published raw steele memos story appeared yahoo news cited intelligence sources saying investigating whether mr page secretly met moscow igor sechin igor divyekin two names found steele dossier mr page told times never met two russians mr page said story spelled end volunteer work mr trump campaign representatives said part trump team yahoo story thensen harry reid wrote letter mr comey august name mr page referred trump adviser accused meeting highranking sanctioned individuals moscow charge appears come right steele investigation turned fbi mr page ideal suspect liberals accuse moscow collusion given pro moscow stances opposition economic sanctions investments gazprom russian natural gas firm mr reid said conflict interest trump surrogate investor russia promoting end sanctions mr page said focus investments since founding global energy 2008 middle east africa asia north america mr page served navy officer 1993 1998 achieving rank lieutenant received joint service commendation medal un military observer western sahara received navy achievement medal work uss america aircraft carrier battle group adriatic sea bosnia conflict mr schiff read portions steele dossier march 20 intelligence committee hearing mr page sent letter committee chairman devin nunes california republican would eagerly welcome chance speak committee help finally set record straight following false evidence illegal activities well lies distributed certain politically motivated suspects coordination obama administration defamed americans wrote directly responding mr schiffs reliance unproven dossier mr page wrote amongst many complete lies excerpt highly inaccurate dossier concocted political consultant mr steele remained one primary false allegations throughout much last year extensive recent reporting new york times news organizations built foundation many falsehoods potential support members obama administration wrote separate letter senate select committee intelligence last month mr page described business routine works office building attached trump tower fifth avenue dines trump grille meets associates trump tower starbucks attended campaign events thus charged fbi surveillance obama administration amounted surveilling trump campaign prior media reports may believed surveillance indeed undertaken trump supporters essentially deemed proven fact american peoples concerns trump tower surveillance last year entirely correct said reference president trumps assertion office wiretapped obama administration asked status fbi investigation mr page told washington times im quite optimistic direction heading copyright 2018 washington times llc click reprint permission 160 | 1,477 |
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<p>Quick question: Who is the CEO of Charles Schwab Corp.? If you guessed Charles Schwab, you'd be wrong. But you'd have plenty of company. Schwab started his company in 1971, but for the past five years the CEO has been Walt Bettinger.</p>
<p>Continue Reading Below</p>
<p>From Schwab's San Francisco headquarters, Bettinger leads nearly 14,000 full-time employees who manage $2.2 trillion in client assets.</p>
<p>Bettinger spoke recently about a looming retirement crisis for Americans and he suggests "two relatively simple steps" to address the challenges facing 401(k) plans.</p>
<p>Fast facts:</p>
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<p>He says all participants in 401(k) plans "should be automatically enrolled in customized, objective, unbiased advice in how much they should save and how that money should be invested, given their personal and unique circumstances." Secondly, Bettinger says, "We need to dramatically lower the level of fees associated with the management of 401(k) accounts."</p>
<p>Bankrate spoke to Bettinger about his 401(k) ideas and whether individual investors can get a fair shake in the stock market.</p>
<p>You have a lot of ambitious ideas regarding 401(k) plans. Do you think there should be a government solution involved at all?</p>
<p>I do not think we need a government solution. I think we need courage across the industry --individuals like myself who have been in this business for three decades to stand up and speak with truth and objectivity about what we need to do differently. I think that is all it takes, but it has got to start.</p>
<p>You referenced social and financial challenges arising from underfunded retirements. Can you talk about those a little bit more? Are we experiencing those challenges already?</p>
<p>I think we are. And of course, there are many factors contributing to that -- demographics, improving health care. Today one of the great challenges we face as a country is we expect in a 40-year working career -- and I am using round numbers, of course -- to fund a 30-year retirement. The math just does not work. So it is part of the overall challenges that we face.</p>
<p>What are challenges facing pension plans and their recipients?</p>
<p>The challenges facing pension plans are linked exactly to why we have seen, for the most part, the demise of the pension plan. And that is, a long-term promise made in an uncertain world. You know, think of the interest rate environment today where most pension plans had interest assumptions of 7% to 9% earnings and it is just not realistic to attain. And it is not realistic to fund those monthly benefits funds to people far out in the future without taking enormous risk as to whether the company will have to put a lot more money in the plan. And you have seen, to a great extent, the demise of the pension program.</p>
<p>Would you agree that saving for retirement is most difficult for young people? And do you treat that problem differently when you are advising individuals?</p>
<p>What our research has shown is that one of the major reasons young people hesitate to save is because they feel even less prepared than someone who may be older to make all these decisions that we are foisting upon them. When you offer professional counsel for them that is objective and they know that they can trust, they are more willing to sign up than if they have to try to do it all on their own.</p>
<p>For 50% of the people, they have no idea what to do. For one-third (of the people), this is causing major stress in their life. Is it any wonder that a younger person, with all the other pressures they are dealing with, and without the benefit of maybe managing money ever for themselves, that they would be hesitant to put money away to something where they are clueless as to what decisions they should make?</p>
<p>Can the average person get a fair shake in the market?</p>
<p>I think that if you are an investor, you can definitely get a fair shake. An investor is someone who has a plan, takes a long-term perspective and is not trying to guess. If you are someone who believes that you are going to beat the market by timing it, by guessing, by trading on a highly different basis, you must be exceptional. And there are some people who are exceptional at that, but that is a very, very tiny percent. The vast majority of people are far better served by not trying to time the market, not trying to beat those dark pools, not trying to beat the algorithm of high-frequency traders. Have a plan. Take a long-term view. Be in an ownership position. Owners generally are paid better than lenders and stocks generally outperform bonds over the long term. And stick to a plan.</p>
<p>I certainly personally would never try to time and beat the market and beat those folks. I would have no chance.</p>
<p>What is one decision either regarding your personal finances or an investment as an individual that you really regret making?</p>
<p>How much time do we have? I do not know that I can boil it down to one. I guess I would say looking back to the Internet bubble, I probably held onto a few stocks a little longer than probably made sense. But there are too many that I can speak to. If I had just had that professional advice and a plan, I would have been a whole lot better off.</p>
<p>We went through a flash crash in the stock market and there have been regulatory responses to that. Are these kinds of things keeping you up at night?</p>
<p>We live in an imperfect world. And we live in an imperfect world because it is a world operated by human beings. And as long as that is the case, we will have things periodically go wrong, whether it is technology related or whatever you want to fill in the blank on. With respect to hack attacks, certainly there is a burgeoning form of conflict among us as a country and a society and among those who have beliefs that are very different than ours. And the battlefield of the future may be very different than the battlefields of the past. Fortunately, we have extraordinary professionals across our government assisting here. But we should not kid ourselves. That is a battle that is going on every day and every minute and I can assure you, it is going on in the services of Charles Schwab at this very moment.</p>
<p>How much of a priority is it for you to ensure as perfect a system as you can, knowing that there are a lot of things you cannot know?</p>
<p>Well, a lot of the things I know I cannot talk about. It is a high priority, of course. But I just want to always provide the context -- the honest and transparent context of the reality that we will live in an imperfect world and there will periodically be issues that will be, for the most part, impossible to prevent, despite all best efforts.</p>
<p>I think what our goal needs to be and what my goal needs to be, is to minimize the frequency and the severity of those as opposed to believe that I have some way to prevent them entirely. The bad guys are smart, too. And the idea that we are going to win at every turn is not realistic.</p>
<p>Copyright 2014, Bankrate Inc.</p> | true | 0 | quick question ceo charles schwab corp guessed charles schwab youd wrong youd plenty company schwab started company 1971 past five years ceo walt bettinger continue reading schwabs san francisco headquarters bettinger leads nearly 14000 fulltime employees manage 22 trillion client assets bettinger spoke recently looming retirement crisis americans suggests two relatively simple steps address challenges facing 401k plans fast facts advertisement says participants 401k plans automatically enrolled customized objective unbiased advice much save money invested given personal unique circumstances secondly bettinger says need dramatically lower level fees associated management 401k accounts bankrate spoke bettinger 401k ideas whether individual investors get fair shake stock market lot ambitious ideas regarding 401k plans think government solution involved think need government solution think need courage across industry individuals like business three decades stand speak truth objectivity need differently think takes got start referenced social financial challenges arising underfunded retirements talk little bit experiencing challenges already think course many factors contributing demographics improving health care today one great challenges face country expect 40year working career using round numbers course fund 30year retirement math work part overall challenges face challenges facing pension plans recipients challenges facing pension plans linked exactly seen part demise pension plan longterm promise made uncertain world know think interest rate environment today pension plans interest assumptions 7 9 earnings realistic attain realistic fund monthly benefits funds people far future without taking enormous risk whether company put lot money plan seen great extent demise pension program would agree saving retirement difficult young people treat problem differently advising individuals research shown one major reasons young people hesitate save feel even less prepared someone may older make decisions foisting upon offer professional counsel objective know trust willing sign try 50 people idea onethird people causing major stress life wonder younger person pressures dealing without benefit maybe managing money ever would hesitant put money away something clueless decisions make average person get fair shake market think investor definitely get fair shake investor someone plan takes longterm perspective trying guess someone believes going beat market timing guessing trading highly different basis must exceptional people exceptional tiny percent vast majority people far better served trying time market trying beat dark pools trying beat algorithm highfrequency traders plan take longterm view ownership position owners generally paid better lenders stocks generally outperform bonds long term stick plan certainly personally would never try time beat market beat folks would chance one decision either regarding personal finances investment individual really regret making much time know boil one guess would say looking back internet bubble probably held onto stocks little longer probably made sense many speak professional advice plan would whole lot better went flash crash stock market regulatory responses kinds things keeping night live imperfect world live imperfect world world operated human beings long case things periodically go wrong whether technology related whatever want fill blank respect hack attacks certainly burgeoning form conflict among us country society among beliefs different battlefield future may different battlefields past fortunately extraordinary professionals across government assisting kid battle going every day every minute assure going services charles schwab moment much priority ensure perfect system knowing lot things know well lot things know talk high priority course want always provide context honest transparent context reality live imperfect world periodically issues part impossible prevent despite best efforts think goal needs goal needs minimize frequency severity opposed believe way prevent entirely bad guys smart idea going win every turn realistic copyright 2014 bankrate inc | 575 |
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<p>"And when these things begin to come to pass, then look up, and lift up your heads; for your redemption draweth nigh" The Pretribulation Rapture. NTEB has started a series making the historical and biblical case for the existience of the Pretribulation Rapture of the Church. We believe it is stated time and time again in the bible, in no uncertain terms, and we are proud to take a stand to defend this exciting End Times Bible prophecy. Does the bible teach a Pretribulation Rapture? Yes, we believe it does, and present evidence for proof of a Pretribulation Rapture. It Is Written "Because thou hast kept the word of my patience, I also will keep thee from the hour of temptation, which shall come upon all the world, to try them that dwell upon the earth." <a href="http://www.blueletterbible.org/Bible.cfm?b=Rev&amp;c=3" type="external">Revelation 3:10</a></p>
<p>Scriptural Evidence for the Pretribulation Rapture This section is used by permission from <a href="http://www.raptureready.com/rr-pretribulation-rapture.html" type="external">RaptureReady.com</a> The Unknown Hour When we search the Scriptures and read the passages describing the Lord Jesus' return, we find verses that tell us we won't know the day and hour of that event. Matthew 25:13 says Jesus will return at an unknown time, while Revelation 12:6 indicates that the Jews will have to wait on the Lord 1,260 days, starting when the Antichrist stands in the Temple of God and declares himself to be God (2 Thes 2:4). This event will take place at the mid-point of the seven-year tribulation (Dan 9:27).</p>
<p>Note that some people only see a three-and-a-half-year tribulation. In a way, they are correct because the first half of the tribulation will be relatively peaceful compared to the second half. Nonetheless, peaceful or not, there still remains a seven-year period called the tribulation. When the Jews flee into the wilderness, they know that all they have to do is wait out those 1,260 days (Mat 24:16). There is no way to apply the phrase "neither the day nor the hour" to this situation. The only way for these two viewpoints to be true is to separate the two distinct events transpiring here: 1) the rapture of the Church, which comes before the tribulation; and 2) the return of Jesus to the earth, which takes place roughly seven years later. The Pretribulation Rapture: The Marriage Supper of the Lamb In Luke 12:36, the Word states that when Christ returns, He will be returning from a wedding. In Revelation 19:7-8, we read about the marriage itself. The marriage supper takes place before the marriage. According to Jewish custom, the marriage contract, which often includes a dowry, is drawn up first. The contract parallels the act of faith we use when we trust Jesus to be our Savior. The dowry is His life, which was used to purchase us. When it's time for the wedding, the groom goes to the bride's house unannounced. She comes out to meet him, and then he takes her to his father's house. This precisely correlates with the events according to the pre-trib scenario. Jesus, the Groom, comes down from heaven and calls up the Church, His Bride. After meeting in the air, He and His Bride return to His Father's house, heaven. The marriage supper itself will take place there, while down here on earth the final events of the tribulation will be playing out. After the marriage supper of Jewish tradition, the bride and groom are presented to the world as man and wife. This corresponds to the time when Jesus returns to earth accompanied by an army "clothed in fine linen, white and clean" (Rev 19:14). The Pretribulation Rapture: What They Didn't Teach You in History Class Many groups try to discredit the pre-trib rapture by saying most of the end-time events in the Bible have already taken place. A group of people called preterists claims that the Book of Revelation was mostly fulfilled by 70 AD. If the events described in the Book of Revelation took place in the past, I'm at a loss to explain some of the current situations I see around us: the rebirth of Israel, the reunification of Europe, the number of global wars that have occurred, and the development of nuclear weapons. During history class, I must have slept through the part where the teacher talked about the time when a third of the trees were burned up, 100-pound hailstones fell from the sky, and the sea turned into blood (Rev 8:7-8, 16:21). I think several people would have to question their opposition to the pre-trib rapture doctrine if they knew that the evidence provided to them was based on the understanding that most tribulation prophecies have already occurred. The Pretribulation Rapture: The Time of Jacob's Trouble In several passages, the Bible refers to the tribulation as a time of trouble for the Jews. The phrase "Jacob's trouble" pertains to the descendants of Jacob. Jeremiah 30:7 says that this time of trouble will come just before the Lord returns to save His people. The final week of Daniel's 70th week is yet to take place. An angel told Daniel that, "70 weeks are determined unto thy people" (Dan 9:24). Scripture never mentions that the tribulation is meant to be a time of testing for Christians. However, some post-tribbers try to claim that they are the ones being tested during the tribulation. To make this so, they need to spiritualize the 144,000 Jewish believers in Revelation 7:2-8 who receive God's protective seal. Placing the Church dispensation into the same time frame as the seven-year Jewish dispensation, as the post-tribbers do, raises one good question: Can two dispensations transpire at the same time? In the past, God has only dealt with one at a time. Having both present during the tribulation would have to be an exception. The Pretribulation Rapture: God Hath Not Appointed Us to Wrath In 1 Thessalonians 5:9, Paul assures us that God has not appointed His people to wrath. This wrath is plainly God's anger that will be poured out during the tribulation. Pre-trib believers interpret this as meaning that Christians will be removed from the earth. Post-trib believers tell a different story. They describe this as meaning that God will protect Christians during the tribulation and pour this wrath out on the unbelievers only. This idea runs against the statement made in Revelation 13:7, in which the Antichrist is given power to make war with the saints and to overcome them. A post-trib view would make God's promise of protection from wrath into a lie. In years past, it was possible to think of being protected from the guns and swords of that day. Today, when any major war would involve nuclear and chemical weapons, it's impossible to expect that same kind of protection. When Nagasaki, Japan was bombed during World War II, the bomb exploded over a Catholic church. Everyone who was in the center of the explosion died--both Christians and non-Christians. The only way to validly interpret God's promise of protection from wrath is by viewing 1 Thessalonians 5:9 as the bodily removal of the Church from this world. The Pretribulation Rapture: Noah and Lot as Examples The tribulation period is compared to the times of Noah and Lot by Jesus in Luke 17:28. Most people argue over whether the time frame Jesus was talking about in that passage was pre-trib or post-trib. In doing so, they miss an important point. The two circumstances that the Noah and Lot situations have in common are the removal of the righteous and the judgment of the unbelievers. From these two accounts, we see that God prefers to remove His own when danger is involved. <a href="javascript:;" type="external">source - Rapture Ready</a></p>
<p>The Pretribulation Rapture: The Unknown Hour</p>
<p>When we search the Scriptures and read the passages describing the Lord Jesus' return, we find verses that tell us we won't know the day and hour of that event. Matthew 25:13 says Jesus will return at an unknown time, while Revelation 12:6 indicates that the Jews will have to wait on the Lord 1,260 days, starting when the Antichrist stands in the Temple of God and declares himself to be God (2 Thes 2:4). This event will take place at the mid-point of the seven-year tribulation (Dan 9:27). Note that some people only see a three-and-a-half-year tribulation.</p>
<p>In a way, they are correct because the first half of the tribulation will be relatively peaceful compared to the second half. Nonetheless, peaceful or not, there still remains a seven-year period called the tribulation. When the Jews flee into the wilderness, they know that all they have to do is wait out those 1,260 days (Mat 24:16). There is no way to apply the phrase "neither the day nor the hour" to this situation. The only way for these two viewpoints to be true is to separate the two distinct events transpiring here: 1) the rapture of the Church, which comes before the tribulation; and 2) the return of Jesus to the earth, which takes place roughly seven years later.</p> It Is Written click here | true | 0 | things begin come pass look lift heads redemption draweth nigh pretribulation rapture nteb started series making historical biblical case existience pretribulation rapture church believe stated time time bible uncertain terms proud take stand defend exciting end times bible prophecy bible teach pretribulation rapture yes believe present evidence proof pretribulation rapture written thou hast kept word patience also keep thee hour temptation shall come upon world try dwell upon earth revelation 310 scriptural evidence pretribulation rapture section used permission rapturereadycom unknown hour search scriptures read passages describing lord jesus return find verses tell us wont know day hour event matthew 2513 says jesus return unknown time revelation 126 indicates jews wait lord 1260 days starting antichrist stands temple god declares god 2 thes 24 event take place midpoint sevenyear tribulation dan 927 note people see threeandahalfyear tribulation way correct first half tribulation relatively peaceful compared second half nonetheless peaceful still remains sevenyear period called tribulation jews flee wilderness know wait 1260 days mat 2416 way apply phrase neither day hour situation way two viewpoints true separate two distinct events transpiring 1 rapture church comes tribulation 2 return jesus earth takes place roughly seven years later pretribulation rapture marriage supper lamb luke 1236 word states christ returns returning wedding revelation 1978 read marriage marriage supper takes place marriage according jewish custom marriage contract often includes dowry drawn first contract parallels act faith use trust jesus savior dowry life used purchase us time wedding groom goes brides house unannounced comes meet takes fathers house precisely correlates events according pretrib scenario jesus groom comes heaven calls church bride meeting air bride return fathers house heaven marriage supper take place earth final events tribulation playing marriage supper jewish tradition bride groom presented world man wife corresponds time jesus returns earth accompanied army clothed fine linen white clean rev 1914 pretribulation rapture didnt teach history class many groups try discredit pretrib rapture saying endtime events bible already taken place group people called preterists claims book revelation mostly fulfilled 70 ad events described book revelation took place past im loss explain current situations see around us rebirth israel reunification europe number global wars occurred development nuclear weapons history class must slept part teacher talked time third trees burned 100pound hailstones fell sky sea turned blood rev 878 1621 think several people would question opposition pretrib rapture doctrine knew evidence provided based understanding tribulation prophecies already occurred pretribulation rapture time jacobs trouble several passages bible refers tribulation time trouble jews phrase jacobs trouble pertains descendants jacob jeremiah 307 says time trouble come lord returns save people final week daniels 70th week yet take place angel told daniel 70 weeks determined unto thy people dan 924 scripture never mentions tribulation meant time testing christians however posttribbers try claim ones tested tribulation make need spiritualize 144000 jewish believers revelation 728 receive gods protective seal placing church dispensation time frame sevenyear jewish dispensation posttribbers raises one good question two dispensations transpire time past god dealt one time present tribulation would exception pretribulation rapture god hath appointed us wrath 1 thessalonians 59 paul assures us god appointed people wrath wrath plainly gods anger poured tribulation pretrib believers interpret meaning christians removed earth posttrib believers tell different story describe meaning god protect christians tribulation pour wrath unbelievers idea runs statement made revelation 137 antichrist given power make war saints overcome posttrib view would make gods promise protection wrath lie years past possible think protected guns swords day today major war would involve nuclear chemical weapons impossible expect kind protection nagasaki japan bombed world war ii bomb exploded catholic church everyone center explosion diedboth christians nonchristians way validly interpret gods promise protection wrath viewing 1 thessalonians 59 bodily removal church world pretribulation rapture noah lot examples tribulation period compared times noah lot jesus luke 1728 people argue whether time frame jesus talking passage pretrib posttrib miss important point two circumstances noah lot situations common removal righteous judgment unbelievers two accounts see god prefers remove danger involved source rapture ready pretribulation rapture unknown hour search scriptures read passages describing lord jesus return find verses tell us wont know day hour event matthew 2513 says jesus return unknown time revelation 126 indicates jews wait lord 1260 days starting antichrist stands temple god declares god 2 thes 24 event take place midpoint sevenyear tribulation dan 927 note people see threeandahalfyear tribulation way correct first half tribulation relatively peaceful compared second half nonetheless peaceful still remains sevenyear period called tribulation jews flee wilderness know wait 1260 days mat 2416 way apply phrase neither day hour situation way two viewpoints true separate two distinct events transpiring 1 rapture church comes tribulation 2 return jesus earth takes place roughly seven years later written click | 784 |
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<p>Investors hoping to suss out the next Amgen or Gilead Sciences -- that is, companies that start small but grow into multi-billion dollar entities -- can be in for rough ride. After all, most early life cycle biotechs tend to meet one of two less glamorous fates: bankruptcy or buyout. Armed with this insight, let's take a look at two high-profile biotech companies that appear destined to vanish from the public markets within the next year or two.</p>
<p>Continue Reading Below</p>
<p>Image source: Getty Images.</p>
<p>Acadia Pharmaceuticals (NASDAQ: ACAD) has officially launched its FDA-approved Parkinson's disease psychosis (PDP) drug Nuplazid (pimavanserin) in the United States. As a result, investors are eagerly awaiting the drug's initial sales data to be announced during the company's upcoming third-quarter earnings release in early November. Despite Nuplazid's multi-billion dollar sales projections, though, Acadia's stock has steadily declined since the drug hit the market earlier this year:</p>
<p><a href="http://ycharts.com/companies/ACAD" type="external">ACAD</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
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<p>The overarching concern seems to be Acadia's lack of experience in terms of handling a commercial launch. Nuplazid, after all, is the company's maiden voyage into the complex world of pharmaceutical sales, and the biotech is up against a host of bigger competitors that sell a variety of products commonly used off-label to treat PDP.</p>
<p>That said, Nuplazid's estimated target market of 400,000 Parkinson's patients in just the U.S., combined with its annual wholesale price of <a href="http://www.fool.com/investing/2016/06/12/is-acadia-pharmaceuticals-stock-still-a-buy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">$23,400 Opens a New Window.</a>, gives it a real shot at eventually reaching blockbuster status. However, it might take a company with deeper ties to the Parkinson's disease market and a more robust commercial infrastructure to turn these lofty sales projections into reality. So, if Nuplazid gets off to a slower than expected start and Acadia's valuation continues to trend lower as a result, this mid-cap biotech might prove to be a particularly compelling buyout target.</p>
<p>And perhaps as an added buyout trigger, Acadia is close to releasing the results of a mid-stage study assessing pimavanserin inAlzheimer's disease psychosis (ADP) -- an indication that could easily bring in another billion or so in sales. In fact, pimavanserin's overall clinical program has the potential to make it one of the top-selling drugs in the world well before it loses patent protection in the U.S. in 2028:</p>
<p>Image source: Acadia Pharmaceuticals.</p>
<p>As drugs with mega-blockbuster potential and over a decade of market exclusivity ahead are exceedingly rare, it's hard to imagine Acadia existing beyond 2018 as an independent entity, especially in this M&amp;A-rich environment. Indeed, Nuplazid's commercial launch would probably have to defy most expectations by a wide margin to the downside in order to deter possible buyers.</p>
<p>MannKind Corp. (NASDAQ: MNKD) is quickly running out of cash, and sales of its inhaled insulin product Afrezza have continued to underwhelm this year, despite the company's innovative efforts to reenergize its launch following Sanofi's decision to return the drug's commercial rights. Making matters worse, the biotech recently received aNASDAQ de-listing notice, perhaps necessitating a sizable <a href="http://www.fool.com/knowledge-center/whats-a-reverse-stock-split-and-can-it-really-help.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">reverse split Opens a New Window.</a> (when a company reduces its share count by several fold to up its price per share) to meet the exchange's listing requirements.</p>
<p>Cutting to the chase, this struggling biotech has been averaging a quarterly cash burn rate of $21 million over the last year -- and that's before the company took on Afrezza's commercialization, meaning that MannKind probably has less than two quarters remaining in terms of a rock solid cash runway. Now,MannKind does have some additional financing options available to extend its runway, such as its $50 million or so in at-the-market (ATM) stock offerings, as well as a $30 million loan agreement with The Mann Group. But there's no guarantee that the company will be able to access the entirety of these remaining funds. After all, it's not exactly feasible to tap a $50 million ATM facility with a share price below a buck.</p>
<p>The bottom line is that without a white knightriding in to save the day sometime soon, MannKind probably won't be able to postpone a dreaded bankruptcy filing that much longer.</p>
<p>While the biotech industry is rife with jaw-dropping growth opportunities, it also contains a fair number of potential landmines. Acadia, for example, made it through the perils of clinical trials and a regulatory review to reach the commercial phase of its life cycle, only to be met with doubt about its ability to properly execute Nuplazid's commercial launch. MannKind, for its part, appeared primed to prove its detractors wrong following the somewhat unexpected approval of Afrezza, but then ran into the harsh reality of commercializing a novel pharma product. Acadia and MannKind thus clearly illustrate the substantial risks associated with investing in early life cycle biotechs and are a good reminder that it's not always smooth sailing after FDA approval.</p>
<p>Even with these risks in mind, though, Acadia does look like a worthwhile buy right now in light of Nuplazid's commercial prospects -- even if they aren't realized immediately out of the gate. MannKind, by contrast, doesn't appear to have the necessary elements in place to reverse course, meaning that investors would probably be wise to avoid this falling knife.</p>
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<p><a href="http://my.fool.com/profile/gbudwell/info.aspx" type="external">George Budwell Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on Gilead Sciences. 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 | investors hoping suss next amgen gilead sciences companies start small grow multibillion dollar entities rough ride early life cycle biotechs tend meet one two less glamorous fates bankruptcy buyout armed insight lets take look two highprofile biotech companies appear destined vanish public markets within next year two continue reading image source getty images acadia pharmaceuticals nasdaq acad officially launched fdaapproved parkinsons disease psychosis pdp drug nuplazid pimavanserin united states result investors eagerly awaiting drugs initial sales data announced companys upcoming thirdquarter earnings release early november despite nuplazids multibillion dollar sales projections though acadias stock steadily declined since drug hit market earlier year acad data ycharts opens new window advertisement overarching concern seems acadias lack experience terms handling commercial launch nuplazid companys maiden voyage complex world pharmaceutical sales biotech host bigger competitors sell variety products commonly used offlabel treat pdp said nuplazids estimated target market 400000 parkinsons patients us combined annual wholesale price 23400 opens new window gives real shot eventually reaching blockbuster status however might take company deeper ties parkinsons disease market robust commercial infrastructure turn lofty sales projections reality nuplazid gets slower expected start acadias valuation continues trend lower result midcap biotech might prove particularly compelling buyout target perhaps added buyout trigger acadia close releasing results midstage study assessing pimavanserin inalzheimers disease psychosis adp indication could easily bring another billion sales fact pimavanserins overall clinical program potential make one topselling drugs world well loses patent protection us 2028 image source acadia pharmaceuticals drugs megablockbuster potential decade market exclusivity ahead exceedingly rare hard imagine acadia existing beyond 2018 independent entity especially mamparich environment indeed nuplazids commercial launch would probably defy expectations wide margin downside order deter possible buyers mannkind corp nasdaq mnkd quickly running cash sales inhaled insulin product afrezza continued underwhelm year despite companys innovative efforts reenergize launch following sanofis decision return drugs commercial rights making matters worse biotech recently received anasdaq delisting notice perhaps necessitating sizable reverse split opens new window company reduces share count several fold price per share meet exchanges listing requirements cutting chase struggling biotech averaging quarterly cash burn rate 21 million last year thats company took afrezzas commercialization meaning mannkind probably less two quarters remaining terms rock solid cash runway nowmannkind additional financing options available extend runway 50 million atthemarket atm stock offerings well 30 million loan agreement mann group theres guarantee company able access entirety remaining funds exactly feasible tap 50 million atm facility share price buck bottom line without white knightriding save day sometime soon mannkind probably wont able postpone dreaded bankruptcy filing much longer biotech industry rife jawdropping growth opportunities also contains fair number potential landmines acadia example made perils clinical trials regulatory review reach commercial phase life cycle met doubt ability properly execute nuplazids commercial launch mannkind part appeared primed prove detractors wrong following somewhat unexpected approval afrezza ran harsh reality commercializing novel pharma product acadia mannkind thus clearly illustrate substantial risks associated investing early life cycle biotechs good reminder always smooth sailing fda approval even risks mind though acadia look like worthwhile buy right light nuplazids commercial prospects even arent realized immediately gate mannkind contrast doesnt appear necessary elements place reverse course meaning investors would probably wise avoid falling knife 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 george budwell opens new window position stocks mentioned motley fool owns shares recommends gilead sciences motley fool following options short october 2016 85 calls gilead sciences 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 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<p>Sitting like an imposing fortress built in a style known as Brutalist architecture, the spawning ground of the policies and curriculum that form the basis of education in Ontario looms as an evil presence on a quiet stretch of Bloor Street in Toronto's Annex neighborhood. &#160;Inside are bitter academics and angry students who are actively trying to undermine the basic values upon which Canadian society was formed.</p>
<p>It's the Ontario Institute for Studies in Education, or as it's known by its acronym,&#160;OISE. This faculty of the University of Toronto has been&#160; <a href="http://eyecrazy.blogspot.ca/2013/05/u-of-toronto-professor-claims-canadian.html" type="external">the center of controversy for years</a>. Criticism of practices there has become more intensified since 2010, when&#160; <a href="http://www.thestar.com/news/gta/2010/12/08/minister_slams_student_thesis_on_holocaust_education.html" type="external">an anti-Semitic thesis produced at OISE</a>&#160;was condemned across party lines in the Ontario Legislature.</p>
<p>OISE was the home of Professor Ben Levin, the architect of a highly controversial sex education curriculum which was criticized for introducing highly sexualized content to children at an inappropriately young age. Levin was one of OISE's "stars" up until his arrest for producing child pornography and counselling the sexual abuse of a minor; charges to which he plead guilty in April of this year.</p>
<p>So far, much of the focus related to Levin's position at OISE has concerned his role&#160; <a href="http://eyecrazy.blogspot.ca/2013/07/ontarios-premier-dissembles-wynne-tries.html" type="external">as an advisor to Ontario Premier Kathleen Wynne</a>. The question is an apt one, as Wynne has pledged to impose the same curriculum that was withdrawn by her predecessor, Dalton McGuinty, after it succumbed to widespread denunciation from parents across Ontario.</p>
<p>Wynne,&#160; <a href="http://eyecrazy.blogspot.ca/2013/01/liberals-inflict-oise-asshole-on.html" type="external">a graduate of OISE</a>, was Education Minister&#160; <a href="http://www.sunnewsnetwork.ca/sunnews/straighttalk/archives/2013/07/20130709-190755.html" type="external">while Levin was Deputy Education Minister</a>. A Deputy Minister is the most senior civil servant in a Ministry, usually appointed directly by the Minister, and is responsible for all the day-to-day operations and ongoing strategic development. To compare respective roles in the private sector, the Deputy Minister would be the CEO, while the Minister would be the Chairman of the Board who holds final authority and sets general direction, but has little involvement in the daily running of the organization.</p>
<p>In effect, Kathleen Wynne, as Chair of the Board,&#160; <a href="http://books.google.ca/books?hl=en&amp;lr=&amp;id=402k3JvksZUC&amp;oi=fnd&amp;pg=PA7&amp;dq=Curriculum+Policy+and+the+Politics+of+What+Should+be+Learned+in+Schools+&amp;ots=b9gu5XxTvs&amp;sig=y91hSOx-dNjmdPytLOSrrgs8AZg#v=onepage&amp;q=Curriculum%20Policy%20and%20the%20Politics%20of%20What%20Should%20be%20Learned%20in%20Schools&amp;f=false" type="external">made Ben Levin CEO of a multi-billion dollar corporation charged with providing public education</a>,&#160;and one of their top priorities was to teach children about anal sex and masturbation. As emails uncovered by a Freedom of Information request by The Rebel revealed, Ben Levin's direct involvement with the Ministry of Education and the Sex Ed curriculum&#160; <a href="" type="internal">continued until just a few weeks prior to his arrest</a>.</p>
<p>However, apparently, according to Kathleen Wynne, pointing out any of that makes you "homophobic." That of itself is both ironic and homophobic, since the vast majority of pedophiles, including Levin, are heterosexual males expressing interest in young girls.</p>
<p>Between 1995 and 2005, covering most of the period since the last change to Ontario's Sex Ed curriculum,&#160; <a href="http://www.sexualityandu.ca/sexual-health/statistics1/statistics-on-canadian-teen-pregnancies" type="external">teen pregnancy rates in Ontario declined by an enormous 51.5 percent.&#160;</a>It was the best result for any province in Canada, demonstrating that the current Sex Ed curriculum is working extremely well, despite Wynne's charge that it was not.</p>
<p>So if something is working that well, why do Wynne and the cohorts at OISE have the anxious, histrionic urge to fix it? One of the most telling aspects to the Sex Education controversy in Ontario is that many of the most ardent proponents of the new, contentious curriculum are childless.</p>
<p>To understand their mindset, one needs to understand the culture and the overarching operational philosophy at OISE.</p>
<p>The culture there is one&#160; <a href="http://eyecrazy.blogspot.ca/2012/08/white-terror-new-lunacy-from-race_2.html" type="external">of people who identify primarily with their activism.</a></p>
<p>The school itself has programs that ostensibly are supposed to teach how to educate, but their actual stated goals are to create activists to promote very particular agendas in public schools.&#160; <a href="http://eyecrazy.blogspot.ca/2013/12/why-you-must-read-one-of-most-awful.html" type="external">These agendas are rooted in Marxist theory</a>&#160;and based in large measure upon&#160; <a href="http://www.amazon.ca/gp/product/0826412769/ref=as_li_qf_sp_asin_tl?ie=UTF8&amp;camp=212553&amp;creative=381305&amp;creativeASIN=0826412769&amp;link_code=as3&amp;tag=thereb00-20" type="external">Pedagogy of the Oppressed</a>,&#160;the seminal work by the late Brazilian Maoist educator, Paulo Friere.</p>
<p>The instructors at OISE are in large measure made up of Marxists who deplore capitalism and despise the current federal Conservative government. They see most of the world's ills deriving from capitalism and what they refer to as "the patriarchy." To combat these perceived ills, they are determined to produce generations of students as soldiers to do battle against their ideological enemies.</p>
<p>Many, if not most who support Gay Rights and believe in the right to Gay marriage would be scandalized by&#160; <a href="http://eyecrazy.blogspot.ca/2011/01/new-oise-ma-thesis-says-western.html" type="external">OISE's twisted dogmas</a>. Gay advocates and their supporters have long accepted the scientific evidence that sexual orientation is a predetermined characteristic. But at OISE, gender is not biologically pre-determined, but a choice.</p>
<p>OISE, the center of education policy planning for Ontario, actually wants people&#160; <a href="http://eyecrazy.blogspot.ca/2014/02/university-of-toronto-professor-says.html" type="external">to celebrate and emulate people like David Stocker, who conducted a bizarre social experiment on one of his own children by raising it to be "genderless."</a></p>
<p>This is a place where they worship someone like the radical fanatic Judith Butler, a founder of "Queer Theory" who thinks the terror group Hezbollah is a part of the "progressive left." The ranks of groups like the polemical nitwits of the&#160; <a href="http://eyecrazy.blogspot.ca/2013/06/while-collaborating-with-holocaust.html" type="external">Coalition Against Israeli Apartheid&#160;</a>are harvested from the crops at OISE.</p>
<p>That is the ideological foundation from which the Ontario Sex Ed and other radical components of the curriculum was derived. They operate with the goal of conditioning children to create a world as OISE wants it, where boys can choose to be girls and vice versa, and where terrorists,&#160; <a href="http://eyecrazy.blogspot.ca/2012/08/todays-dose-of-stupid-from-ontario.html" type="external">should they be from non-western cultures</a>, are automatically oppressed victims. And for OISE, the earlier the age some of the surrounding aspects of sexuality can be instilled in the psyche of children, the better. Since someone has to understand sexual function in order to understand 'the oppression of a heterosexist, gendernormative society.'</p>
<p>Those familiar with what goes on at OISE know that Ben Levin was far from being the most radical teacher in that institution.&#160;Incredibly, only a couple of months after Levin's arrest for child pornography and exploitation,&#160;OISE&#160; <a href="http://eyecrazy.blogspot.ca/2013/09/this-isnt-good-university-of-torontos.html" type="external">co-sponsored a symposium&#160;</a>with a keynote speaker who came to promote the&#160; <a href="http://eyecrazy.blogspot.ca/2013/10/oises-bodies-at-play-symposium.html" type="external">theory that adult sexual attraction to children is normal</a>.</p>
<p>If there ever was a place where the lunatics are running the asylum, it is the Ontario Institute for Studies in Education, and that is in the most literal of terms. PhDs there have been awarded&#160; <a href="http://blazingcatfur.blogspot.ca/2013/06/oise-as-white-italian-male-settler.html" type="external">to people with severe, diagnosed mental illnesses,</a>&#160;and many whose Doctoral theses have been&#160; <a href="http://eyecrazy.blogspot.ca/2010/11/university-of-torontos-department-of.html" type="external">barely coherent gibberish.</a>&#160;&#160;Armed with their OISE-provided weaponry, they then become "qualified" to disseminate their lunacy further in the guise of being "accredited experts."</p>
<p>In fairness, not every OISE instructor is a walking self-parody. They do have people like the brilliant Kang Lee, one of the world's leading researchers in child psychology, who is fortunate that the Institute of Child Study with which he is affiliated is separate from the main OISE campus. But far more numerous at OISE are the types like Abigail Bakan, who is the head of OISE's so-called Social Justice Education department.</p>
<p>Bakan&#160;is a&#160; <a href="http://eyecrazy.blogspot.ca/2013/08/more-conspiracy-lunacy-from-ontario.html" type="external">conspiracy theorist</a>&#160;who was&#160; <a href="http://eyecrazy.blogspot.ca/2013/08/oises-new-social-justice-department.html" type="external">a featured speaker at an&#160;al Quds Day&#160;event,&#160;</a>the anti-Semitic "holiday" invented by the depraved Iranian dictator Ayatollah Khomeini as a call for the destruction of Israel. That's just one example of what masquerades as "social justice" at OISE.&#160;</p>
<p>Another proponent of OISE's brand of "social justice" is Sheryl Nestel,&#160;who made a preposterous claim that sounds like it could have come out of the mouth of a neo-Nazi. She alleges that Canadian Jews support Prime Minister Stephen Harper&#160; <a href="http://eyecrazy.blogspot.ca/2013/05/u-of-toronto-professor-claims-canadian.html" type="external">in order to maintain their place in the "racial order.</a>"</p>
<p>The&#160; <a href="http://eyecrazy.blogspot.ca/2015/02/the-bizarre-extremists-responsible-for.html" type="external">examples of OISE's extremism</a>&#160;are too numerous to list in a single article..&#160;</p>
<p>A Toronto blogger known as&#160;Blazing Cat Fur&#160;once&#160;received a visit from police&#160; <a href="http://www.torontosun.com/2013/03/13/tdsb-sics-police-on-sarcastic-blogger" type="external">for ironically musing</a>&#160;that "OISE...needs to be purged or burnt to the ground, whichever is more effective." The tragedy is that more attention was paid to what&#160;Blazing Cat Fur&#160;wrote than the depravity at OISE which caused such a comment. &#160;The more one knows about OISE, the more it becomes apparent that is a diseased place that infects anyone inside its Brutalist walls.</p>
<p>&#160;</p>
<p><a href="" type="internal">JOIN TheRebel.media</a>&#160;for more news and commentary you won't find anywhere else.</p> | true | 0 | sitting like imposing fortress built style known brutalist architecture spawning ground policies curriculum form basis education ontario looms evil presence quiet stretch bloor street torontos annex neighborhood 160inside bitter academics angry students actively trying undermine basic values upon canadian society formed ontario institute studies education known acronym160oise faculty university toronto been160 center controversy years criticism practices become intensified since 2010 when160 antisemitic thesis produced oise160was condemned across party lines ontario legislature oise home professor ben levin architect highly controversial sex education curriculum criticized introducing highly sexualized content children inappropriately young age levin one oises stars arrest producing child pornography counselling sexual abuse minor charges plead guilty april year far much focus related levins position oise concerned role160 advisor ontario premier kathleen wynne question apt one wynne pledged impose curriculum withdrawn predecessor dalton mcguinty succumbed widespread denunciation parents across ontario wynne160 graduate oise education minister160 levin deputy education minister deputy minister senior civil servant ministry usually appointed directly minister responsible daytoday operations ongoing strategic development compare respective roles private sector deputy minister would ceo minister would chairman board holds final authority sets general direction little involvement daily running organization effect kathleen wynne chair board160 made ben levin ceo multibillion dollar corporation charged providing public education160and one top priorities teach children anal sex masturbation emails uncovered freedom information request rebel revealed ben levins direct involvement ministry education sex ed curriculum160 continued weeks prior arrest however apparently according kathleen wynne pointing makes homophobic ironic homophobic since vast majority pedophiles including levin heterosexual males expressing interest young girls 1995 2005 covering period since last change ontarios sex ed curriculum160 teen pregnancy rates ontario declined enormous 515 percent160it best result province canada demonstrating current sex ed curriculum working extremely well despite wynnes charge something working well wynne cohorts oise anxious histrionic urge fix one telling aspects sex education controversy ontario many ardent proponents new contentious curriculum childless understand mindset one needs understand culture overarching operational philosophy oise culture one160 people identify primarily activism school programs ostensibly supposed teach educate actual stated goals create activists promote particular agendas public schools160 agendas rooted marxist theory160and based large measure upon160 pedagogy oppressed160the seminal work late brazilian maoist educator paulo friere instructors oise large measure made marxists deplore capitalism despise current federal conservative government see worlds ills deriving capitalism refer patriarchy combat perceived ills determined produce generations students soldiers battle ideological enemies many support gay rights believe right gay marriage would scandalized by160 oises twisted dogmas gay advocates supporters long accepted scientific evidence sexual orientation predetermined characteristic oise gender biologically predetermined choice oise center education policy planning ontario actually wants people160 celebrate emulate people like david stocker conducted bizarre social experiment one children raising genderless place worship someone like radical fanatic judith butler founder queer theory thinks terror group hezbollah part progressive left ranks groups like polemical nitwits the160 coalition israeli apartheid160are harvested crops oise ideological foundation ontario sex ed radical components curriculum derived operate goal conditioning children create world oise wants boys choose girls vice versa terrorists160 nonwestern cultures automatically oppressed victims oise earlier age surrounding aspects sexuality instilled psyche children better since someone understand sexual function order understand oppression heterosexist gendernormative society familiar goes oise know ben levin far radical teacher institution160incredibly couple months levins arrest child pornography exploitation160oise160 cosponsored symposium160with keynote speaker came promote the160 theory adult sexual attraction children normal ever place lunatics running asylum ontario institute studies education literal terms phds awarded160 people severe diagnosed mental illnesses160and many whose doctoral theses been160 barely coherent gibberish160160armed oiseprovided weaponry become qualified disseminate lunacy guise accredited experts fairness every oise instructor walking selfparody people like brilliant kang lee one worlds leading researchers child psychology fortunate institute child study affiliated separate main oise campus far numerous oise types like abigail bakan head oises socalled social justice education department bakan160is a160 conspiracy theorist160who was160 featured speaker an160al quds day160event160the antisemitic holiday invented depraved iranian dictator ayatollah khomeini call destruction israel thats one example masquerades social justice oise160 another proponent oises brand social justice sheryl nestel160who made preposterous claim sounds like could come mouth neonazi alleges canadian jews support prime minister stephen harper160 order maintain place racial order the160 examples oises extremism160are numerous list single article160 toronto blogger known as160blazing cat fur160once160received visit police160 ironically musing160that oiseneeds purged burnt ground whichever effective tragedy attention paid what160blazing cat fur160wrote depravity oise caused comment 160the one knows oise becomes apparent diseased place infects anyone inside brutalist walls 160 join therebelmedia160for news commentary wont find anywhere else | 744 |
<p>Republican opposition to the GOP health care bill swelled to near-fatal numbers Sunday as Sen. Susan Collins all but closed the door on supporting the last-ditch effort to scrap the Obama health care law and Sen. Ted Cruz said that "right now" he doesn't back it.</p>
<p>In a late bid to win votes and stave off defeat, Republicans were adding $14.5 billion to the measure for states, according to documents obtained late Sunday by The Associated Press.</p>
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<p>White House legislative liaison Marc Short and Sen. Lindsey Graham, R-S.C., one of the measure's sponsors, said Republicans would press ahead with a vote this week. But the comments by Collins and Cruz left the Republican drive to uproot President Barack Obama's Affordable Care Act dangling by an increasingly fraying thread.</p>
<p>A vote must occur this week for Republicans to prevail with their narrow Senate majority. Next Sunday, protections expire against a Democratic filibuster, bill-killing delays that Republicans lack the votes to overcome.</p>
<p>President Donald Trump seemed to distance himself from the showdown, saying his "primary focus" was his party's drive to cut taxes.</p>
<p>"I don't know what they're doing," Trump told reporters about the bill's GOP opponents as he prepared to fly back to Washington after a weekend at his New Jersey golf club. "But you know what? Eventually we'll win, whether it's now or later."</p>
<p>Two GOP senators, Rand Paul of Kentucky and John McCain of Arizona, have already said they oppose the legislation. All Democrats will vote against it. "No" votes from three of the 52 GOP senators would kill the party's effort to deliver on its perennial vow to repeal "Obamacare" and would reprise the party's politically jarring failure to accomplish that this summer.</p>
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<p>Collins cited the bill's cuts in the Medicaid program for low-income people and the likelihood that it would result in many losing health coverage and paying higher premiums. The Maine moderate also criticized a provision letting states make it easier for insurers to raise premiums on people with pre-existing medical conditions.</p>
<p>"It's very difficult for me to envision a scenario where I would end up voting for this bill," said Collins.</p>
<p>The conservative Cruz also voiced opposition, underscoring the bill's problems with both ends of the GOP spectrum.</p>
<p>"Right now, they don't have my vote," Cruz said at a festival in Austin, Texas. He suggested the measure doesn't do enough to reduce premiums by allowing insurers to sell less comprehensive coverage than Obama's law allows.</p>
<p>Cruz said he doesn't think fellow conservative Sen. Mike Lee, R-Utah, backs the GOP bill. Lee spokesman Conn Carroll said Lee wants "technical changes" but hasn't finalized his position.</p>
<p>A chart Republicans circulated Sunday said the legislation's grants would provide 14 percent more for Arizona than under Obama's law, 4 percent more for Kentucky 49 percent more for Texas and 3 percent more for Alaska, home to home to undecided GOP Sen. Lisa Murkowski, and Maine, home to Sen. Collins, would get 43 percent more." Some extra money is specifically directed at sparsely populated states.</p>
<p>The numbers are misleading, partly because they omit GOP Medicaid cuts from clamping per-person spending caps on the program, said Matt House, spokesman for Senate Minority Leader Chuck Schumer, D-N.Y. In a statement, Schumer said the measure would "throw our health insurance system into chaos."</p>
<p>"We're moving forward and we'll see what happens next week," Graham said earlier Sunday.</p>
<p>Paul said even though the bill transforms federal health care dollars into block grants states would control, the GOP bill left too much of that spending intact.</p>
<p>"Block granting Obamacare doesn't make it go away," Paul said.</p>
<p>McCain has complained that Republicans should have worked with Democrats in reshaping the country's $3 trillion-a-year health care system and cited uncertainty over the bill's impact on consumers.</p>
<p>Murkowski has remained uncommitted, saying she's studying the bill's impact on Alaska. Her state's officials released a report Friday citing "unique challenges" and deep cuts the measure would impose on the state. She and Collins were the only Republicans who voted "no" on four pivotal votes on earlier versions of the GOP legislation in July.</p>
<p>Senate Majority Leader Mitch McConnell, R-Ky., has said he intends to have a vote this week but has stopped short of firmly committing to it. The White House's Short said he expects a vote Wednesday.</p>
<p>The bill would repeal much of the 2010 law, including its tax penalties on people who don't buy insurance and on larger employers not offering coverage to workers. States could loosen coverage requirements under the law's mandates, including prohibiting insurers from charging seriously ill people higher premiums and letting them sell policies covering fewer services.</p>
<p>It would eliminate Obama's expansion of Medicaid and the subsidies the law provides millions of people to reduce their premiums and out of pocket costs, substituting block grants to states.</p>
<p>Collins was on CBS' "Face the Nation" and CNN's "State of the Union," Graham appeared on ABC's "This Week" and Paul was on NBC's "Meet the Press," and Short was on CBS, NBC and "Fox News Sunday."</p>
<p>___</p>
<p>Associated Press writer Catherine Lucey in Somerset, New Jersey, contributed to this report.</p> | true | 0 | republican opposition gop health care bill swelled nearfatal numbers sunday sen susan collins closed door supporting lastditch effort scrap obama health care law sen ted cruz said right doesnt back late bid win votes stave defeat republicans adding 145 billion measure states according documents obtained late sunday associated press continue reading white house legislative liaison marc short sen lindsey graham rsc one measures sponsors said republicans would press ahead vote week comments collins cruz left republican drive uproot president barack obamas affordable care act dangling increasingly fraying thread vote must occur week republicans prevail narrow senate majority next sunday protections expire democratic filibuster billkilling delays republicans lack votes overcome president donald trump seemed distance showdown saying primary focus partys drive cut taxes dont know theyre trump told reporters bills gop opponents prepared fly back washington weekend new jersey golf club know eventually well win whether later two gop senators rand paul kentucky john mccain arizona already said oppose legislation democrats vote votes three 52 gop senators would kill partys effort deliver perennial vow repeal obamacare would reprise partys politically jarring failure accomplish summer advertisement collins cited bills cuts medicaid program lowincome people likelihood would result many losing health coverage paying higher premiums maine moderate also criticized provision letting states make easier insurers raise premiums people preexisting medical conditions difficult envision scenario would end voting bill said collins conservative cruz also voiced opposition underscoring bills problems ends gop spectrum right dont vote cruz said festival austin texas suggested measure doesnt enough reduce premiums allowing insurers sell less comprehensive coverage obamas law allows cruz said doesnt think fellow conservative sen mike lee rutah backs gop bill lee spokesman conn carroll said lee wants technical changes hasnt finalized position chart republicans circulated sunday said legislations grants would provide 14 percent arizona obamas law 4 percent kentucky 49 percent texas 3 percent alaska home home undecided gop sen lisa murkowski maine home sen collins would get 43 percent extra money specifically directed sparsely populated states numbers misleading partly omit gop medicaid cuts clamping perperson spending caps program said matt house spokesman senate minority leader chuck schumer dny statement schumer said measure would throw health insurance system chaos moving forward well see happens next week graham said earlier sunday paul said even though bill transforms federal health care dollars block grants states would control gop bill left much spending intact block granting obamacare doesnt make go away paul said mccain complained republicans worked democrats reshaping countrys 3 trillionayear health care system cited uncertainty bills impact consumers murkowski remained uncommitted saying shes studying bills impact alaska states officials released report friday citing unique challenges deep cuts measure would impose state collins republicans voted four pivotal votes earlier versions gop legislation july senate majority leader mitch mcconnell rky said intends vote week stopped short firmly committing white houses short said expects vote wednesday bill would repeal much 2010 law including tax penalties people dont buy insurance larger employers offering coverage workers states could loosen coverage requirements laws mandates including prohibiting insurers charging seriously ill people higher premiums letting sell policies covering fewer services would eliminate obamas expansion medicaid subsidies law provides millions people reduce premiums pocket costs substituting block grants states collins cbs face nation cnns state union graham appeared abcs week paul nbcs meet press short cbs nbc fox news sunday ___ associated press writer catherine lucey somerset new jersey contributed report | 566 |
<p>“Nobody has more respect for women than me,” <a href="http://thehill.com/blogs/ballot-box/presidential-races/274374-trump-nobody-has-more-respect-for-women-than-me" type="external">says</a> Republican presidential frontrunner Donald Trump.</p>
<p>Trump “respects” women so much, it’ll make your head spin! Believe me! Just as he loves and "respects" “The Blacks,” “The Hispanics” and “The Evangelicals,” the Manhattan socialite loves and “respects” The Women! I mean, he even married three of them…</p>
<p>Yeah, that isn’t true, at all.</p>
<p>Here are twelve examples of Trump disrespecting women.</p>
<p>1 That time Trump reduced women down to sex objects, well, a “piece of ass,” as he puts it.</p>
<p>Super-respectful Trump, lamenting the media scrutiny he was receiving, once explained that all that doesn’t really matter so long as you have a “ <a href="http://www.thedailybeast.com/articles/2015/06/30/the-dumbest-stuff-donald-trump-has-ever-said.html" type="external">beautiful piece of ass</a>.”</p>
<p>“You know, it doesn’t really matter what [the media] write as long as you’ve got a young and beautiful piece of ass.”</p>
<p>2 That time Trump cheated on his wife, possibly wives.</p>
<p>Trump’s respect for women became so overwhelming that he wound up <a href="http://www.dailymail.co.uk/news/article-3378905/Trump-says-personal-indiscretions-including-cheating-wife-fair-game-politics.html" type="external">sleeping with another woman</a> (whom he respected), Marla Maples, while he was married to his first wife Ivana. Trump then allegedly pursued his most recent wife, Melania, while he was still legally married to Maples.</p>
<p>3 That time Trump disrespected both his wife and Texas Senator Ted Cruz’s wife by reducing them to their looks.</p>
<p>Reducing women to superficial measures, the real estate mogul <a href="" type="internal">retweeted</a> an unflattering, ill-timed photo of Heidi Cruz next to a retouched photo of his supermodel wife. “An image is worth a thousand words” reads the caption. Respectfully, Trump was communicating that his wife is hotter—and isn’t that all that really matters?</p>
<p>4 That time Trump was accused of raping his ex-wife Ivana. (Respectfully, of course.)</p>
<p>As The Daily Wire previously <a href="" type="internal">reported</a>, Ivana Trump once accused the respectful real estate mogul of raping her during their marriage:“[F]ormer Newsweek reporter Harry Hurt III, in <a href="https://www.amazon.com/dp/0393030296/?tag=slatmaga-20" type="external">The Lost Tycoon: The Many Lives of Donald J. Trump</a>, tells the story of a violent incident in 1989, when Trump returned home from scalp-reduction surgery to remove a bald spot. Blaming his ex-wife Ivana for the pain, he allegedly grabbed her arms, tore off her clothes and ravaged her.”</p>
<p>“Then he jams his penis inside her for the first time in more than sixteen months. Ivana is terrified … It is a violent assault,” wrote hurt. “According to versions she repeats to some of her closest confidantes, ‘he raped me.’ Ivana later said, ‘As a woman, I felt violated, as the love and tenderness, which he normally exhibited towards me, was absent. I referred to this as a ‘rape,’ but I do not want my words to be interpreted in a literal or criminal sense.’”</p>
<p>5 That time Trump respected his ex-wife’s “tits.” Her brain? Not so much.</p>
<p>Trump, respecting the hell out of his ex-wife Marla Maples, the mother of his daughter, Tiffany, respectfully proclaimed that she had <a href="" type="internal">“nice tits,” but “no brains.”</a></p>
<p>6 That time Trump suggested that Megyn Kelly was incapable of asking Trump-deemed “fair” questions because she has a uterus.</p>
<p>Trump turned on Kelly after she dared to ask him a question concerning his past sexist remarks; ironically, Trump responded by spewing disrespectful, sexist remarks at Kelly…for bringing up his sexist remarks?</p>
<p>Respectfully, the Manhattan socialite <a href="" type="internal">accused</a> Kelly of being unable to ask fair questions because she menstruates: Kelly had “blood coming out of her eyes, blood coming out of her… wherever,” said Trump. He then proceeded to call Kelly--a successful lawyer-turned-journalist-turned-hit cable news host--a “bimbo,” a “lightweight,” “not very sharp” and “crazy.” He also said he doesn’t want to “woo” her…</p>
<p>7 That time Trump ridiculed Carly Fiorina on her policies. Oh, wait, I mean her face.</p>
<p>Trump personally attacked former presidential hopeful Carly Fiorina for “that face,” because, again, the only thing that makes a woman worthy is what she looks like.</p>
<p>“Look at that face!” <a href="http://www.usatoday.com/story/news/nation-now/2015/09/10/trump-fiorina-look-face/71992454/" type="external">said</a> Trump, “Would anyone vote for that?”</p>
<p>Trump attacked Fiorina because she was rising in the polls and outperforming in the Republican debates; Fiorina was a threat because of her substance, so Trump respectfully attacked her appearance.</p>
<p>8 That time Trump explained that you must “treat women like shit.”</p>
<p>Back in the ‘90s Trump told <a href="https://news.vice.com/article/women-you-have-to-treat-them-like-shit-new-ad-highlights-trumps-statements-on-women/" type="external">New York magazine</a>, “Women, you have to treat them like shit.” So respectful.</p>
<p>9 That time he told a female journalist she has a “Face of a Dog!”</p>
<p>Trump’s feelings were hurt by a female journalist who was critical of him, The New York Times’ <a href="https://www.nytimes.com/2011/04/02/opinion/02collins.html" type="external">Gail Collins</a>. So, Trump sent Collins the column she wrote about him, circled her face, and <a href="http://www.slate.com/articles/news_and_politics/politics/2016/03/donald_trump_has_one_core_philosophy_misogyny.html" type="external">wrote</a>: “The Face of a Dog!”</p>
<p>10 That time Trump told a woman that he’d like to see her “dropping to her knees."</p>
<p><a href="https://www.youtube.com/watch?v=urReg9O6MwA" type="external">“It must be a pretty picture, you dropping to your knees</a>,” he respectfully told a contestant on this reality show, “The Apprentice.”</p>
<p>11 That time Trump expressed his “love” for movie lines that refer to women as bitches and command that they “shut up.”</p>
<p>“My favorite part [of the movie Pulp Fiction] is when Sam has his gun out in the diner and he tells the guy to tell his girlfriend to shut up. Tell that bitch to be cool. Say: ‘Bitch be cool.’ I love those lines,” Trump <a href="" type="internal">told</a> journalist Timothy L. O’Brien.</p>
<p>12 That time Trump called a woman “disgusting” for breastfeeding.</p>
<p>Trump <a href="" type="internal">called</a> Elisabeth Beck, an attorney employee of his, “disgusting” for asking to take a break to breastfeed her child. Beck said that Trump began to “shake, his face got really red, he pointed his finger and shook it and said, ‘You’re disgusting! You’re disgusting!'”</p>
<p>Trump’s respect for women is overwhelming.</p> | true | 0 | nobody respect women says republican presidential frontrunner donald trump trump respects women much itll make head spin believe loves respects blacks hispanics evangelicals manhattan socialite loves respects women mean even married three yeah isnt true twelve examples trump disrespecting women 1 time trump reduced women sex objects well piece ass puts superrespectful trump lamenting media scrutiny receiving explained doesnt really matter long beautiful piece ass know doesnt really matter media write long youve got young beautiful piece ass 2 time trump cheated wife possibly wives trumps respect women became overwhelming wound sleeping another woman respected marla maples married first wife ivana trump allegedly pursued recent wife melania still legally married maples 3 time trump disrespected wife texas senator ted cruzs wife reducing looks reducing women superficial measures real estate mogul retweeted unflattering illtimed photo heidi cruz next retouched photo supermodel wife image worth thousand words reads caption respectfully trump communicating wife hotterand isnt really matters 4 time trump accused raping exwife ivana respectfully course daily wire previously reported ivana trump accused respectful real estate mogul raping marriageformer newsweek reporter harry hurt iii lost tycoon many lives donald j trump tells story violent incident 1989 trump returned home scalpreduction surgery remove bald spot blaming exwife ivana pain allegedly grabbed arms tore clothes ravaged jams penis inside first time sixteen months ivana terrified violent assault wrote hurt according versions repeats closest confidantes raped ivana later said woman felt violated love tenderness normally exhibited towards absent referred rape want words interpreted literal criminal sense 5 time trump respected exwifes tits brain much trump respecting hell exwife marla maples mother daughter tiffany respectfully proclaimed nice tits brains 6 time trump suggested megyn kelly incapable asking trumpdeemed fair questions uterus trump turned kelly dared ask question concerning past sexist remarks ironically trump responded spewing disrespectful sexist remarks kellyfor bringing sexist remarks respectfully manhattan socialite accused kelly unable ask fair questions menstruates kelly blood coming eyes blood coming wherever said trump proceeded call kellya successful lawyerturnedjournalistturnedhit cable news hosta bimbo lightweight sharp crazy also said doesnt want woo 7 time trump ridiculed carly fiorina policies oh wait mean face trump personally attacked former presidential hopeful carly fiorina face thing makes woman worthy looks like look face said trump would anyone vote trump attacked fiorina rising polls outperforming republican debates fiorina threat substance trump respectfully attacked appearance 8 time trump explained must treat women like shit back 90s trump told new york magazine women treat like shit respectful 9 time told female journalist face dog trumps feelings hurt female journalist critical new york times gail collins trump sent collins column wrote circled face wrote face dog 10 time trump told woman hed like see dropping knees must pretty picture dropping knees respectfully told contestant reality show apprentice 11 time trump expressed love movie lines refer women bitches command shut favorite part movie pulp fiction sam gun diner tells guy tell girlfriend shut tell bitch cool say bitch cool love lines trump told journalist timothy l obrien 12 time trump called woman disgusting breastfeeding trump called elisabeth beck attorney employee disgusting asking take break breastfeed child beck said trump began shake face got really red pointed finger shook said youre disgusting youre disgusting trumps respect women overwhelming | 539 |
<p>President Barack Obama and Chinese President Xi Jinping’s <a href="http://www.whitehouse.gov/the-press-office/2014/11/11/fact-sheet-us-china-joint-announcement-climate-change-and-clean-energy-c" type="external">deal</a> to dramatically reduce greenhouse gas emissions in both countries couldn’t have come at a more ironic time.</p>
<p>Their Nov. 11, announcement came just days before the fifth anniversary of ClimateGate, which cast a pall over the credibility of major climate research institutions. On Nov. 17, 2009, it was discovered that hundreds of emails and files were either hacked or leaked from the Climatic Research Unit (CRU) of the University of East Anglia (UEA). According to Roger Pielke, Jr., months before ClimateGate, CRU admitted it did not have the raw data its climate science is based on.</p>
<p>“We, therefore, do not hold the original raw data but only the value-added (i.e. quality controlled and homogenized) data.,” CRU said on its website, according to <a href="http://rogerpielkejr.blogspot.com/2009/08/we-lost-original-data.html" type="external">Pielke</a> [Emphasis his]. Pielke’s response was, “Say what?! CRU has lost track of the original data that it uses to create its global temperature record!? Can this be serious?”</p>
<p>The ClimateGate files shed further light into the problems with CRU data, but media coverage of the scandal didn’t. The three broadcast networks ignored the breaking news for a full 13 days in November 2009. Since then, the networks have mentioned it just nine stories (the most recent was in May 2010) and never mentioned the Harry Read Me file, according to Nexis searches. <a href="" type="internal">Later the networks</a> sought to “exonerate” accused scientists.</p>
<p>One of the most disturbing files was a more than 200-page document called <a href="http://www.anenglishmanscastle.com/HARRY_READ_ME.txt" type="external">HARRY_READ_ME.txt</a>. Darrel Ince, professor of computing at the Open University, wrote in <a href="http://www.theguardian.com/technology/2010/feb/05/science-climate-emails-code-release" type="external">The Guardian</a> (UK) that it is imperative that scientists relying on computer programs release their programs given that “a slip of a keyboard could create an error in programs that will be used to make financial decisions which involve billions of pounds and, moreover, that the probability of such errors is quite high.”</p>
<p><a href="http://pjmedia.com/blog/climategates-harry_read_me-txt-we-all-really-should/" type="external">PJ Media</a>and others said it appears to have been written by Ian “Harry” Harris who worked tirelessly to fix CRU’s convoluted data. While working on the project, he catalogued his many challenges between 2006 and 2009 in the <a href="http://www.anenglishmanscastle.com/HARRY_READ_ME.txt" type="external">file</a>, the most extensive single document released.</p>
<p>His frustrations did not inspire confidence in CRUs data given his many exclamations like, “This whole project is SUCH A MESS. No wonder I needed therapy!!” “Harry” complains that every time he seemed to make progress “it ends worse than before.” At another point, he exclaims, “Just another thing I cannot understand, and another reason why this should all have been rewritten from scratch a year ago!”</p>
<p>The HARRY_READ_ME file was a long-running commentary, describing the disconcerting breath of problems he encountered while attempting to edit and organize his climate data sets at CRU.</p>
<p>These challenges included CRU loss of data, predecessors accidentally deleting important calculations, receiving poorly organized data from various parts of the world, and having to work with a glitchy array of customized computer programs.</p>
<p>In circumstances such as these, the writer was forced to make many judgment calls on how to proceed, despite admitting, “I haven't had any training in stats in my entire life.”</p>
<p>Despite these revelations, CRU’s climate models have been defended by the U.S. government’s <a href="http://www.epa.gov/climatechange/endangerment/petitions/volume1.html#1-3-3-3" type="external">Environmental Protection Agency (EPA)</a> and the United Nation’s <a href="http://hotair.com/archives/2009/12/07/video-head-of-ipcc-dismisses-climategate-relies-on-peer-review/" type="external">Intergovernmental Panel on Climate Change (IPCC)</a>.</p>
<p>BBC <a href="http://news.bbc.co.uk/2/hi/8370282.stm" type="external">reported</a> on Nov. 20, 2009, that researchers at CRU “played a key role” in IPCC findings. The IPCC’s conclusions on climate change in turn heavily influenced the EPA’s ruling that it has the authority to regulate carbon dioxide in order to prevent global warming, <a href="http://www.newsmax.com/Newsfront/epa-ruling-climate-emails/2009/12/14/id/342344/" type="external">according</a> to NewsMax on Dec. 9, 2009.</p>
<p>Yet to critics, the file demonstrated the muddled state of CRU’s climate data and illustrated the vast complexity required to generate climate models. Christopher Booker, a columnist with The Telegraph (UK), wrote, “What is tragically evident from the Harry Read Me file is the picture it gives of the CRU scientists hopelessly at sea with the complex computer programmes [sic] they had devised” to model purported global warming.</p>
<p>In February 2010, the minority staff of the U.S. Senate Committee on Environment and Public Works released a <a href="http://www.inhofe.senate.gov/download/?id=ce35055e-8922-417f-b416-800183ab7272&amp;download=1" type="external">report</a> on the ClimateGate scandal. Sen. James Inhofe, R-Okla., was the committee’s ranking minority member at the time. Minority staff said in the report that the Harry Read Me File “raises several serious questions as to the reliability and integrity of CRU‘s data compilation and quality assurance protocols.”</p>
<p>That report also said, “Moreover, we believe the emails and accompanying documents seriously compromise the IPCC-based consensus and its central conclusion that anthropogenic emissions are inexorably leading to environmental catastrophes.”</p>
<p>Here are just the are 10 most stunning quotes from the HARRY_READ_ME file. WARNING: EXPLICIT LANGUAGE:</p>
<p>“OH FUCK THIS. It's Sunday evening, I've worked all weekend, and just when I thought it was done I'm hitting yet another problem that's based on the hopeless state of our databases. There is no uniform data integrity, it's just a catalogue of issues that continues to grow as they're found.”</p>
<p>“So, once again I don't understand statistics. Quel surprise, given that I haven't had any training in stats in my entire life, unless you count A-level maths.”</p>
<p>“I am seriously close to giving up, again. The history of this is so complex that I can't get far enough into it before by head hurts and I have to stop. Each parameter has a tortuous history of manual and semi-automated interventions that I simply cannot just go back to early versions and run the update prog. I could be throwing away all kinds of corrections - to lat/lons, to WMOs (yes!), and more.”</p>
<p>“Bear in mind that there is no working synthetic method for cloud, because Mark New lost the coefficients file and never found it again (despite searching on tape archives at UEA) and never recreated it.”</p>
<p>“So.. should I really go to town (again) and allow the Master database to be ‘fixed’ by this program? Quite honestly I don't have time - but it just shows the state our data holdings have drifted into. Who added those two series together? When? Why? Untraceable, except anecdotally. It's the same story for many other Russian stations, unfortunately - meaning that (probably) there was a full Russian update that did no data integrity checking at all. I just hope it's restricted to Russia!!”</p>
<p>“Had a hunt and found an identically-named temperature database file which did include normals lines at the start of every station. How handy – naming two different files with exactly the same name and relying on their location to differentiate! Aaarrgghh!!”</p>
<p>"Here, the expected 1990-2003 period is MISSING - so the correlations aren't so hot! Yet the WMO codes and station names /locations are identical (or close). What the hell is supposed to happen here? Oh yeah - there is no 'supposed', I can make it up. So I have :-)"</p>
<p>“Now looking at the dates.. something bad has happened, hasn't it. COBAR AIRPORT AWS cannot star[t] in 1962, it didn't open until 1993!”</p>
<p>"So with a somewhat cynical shrug, I added the nuclear option - to match every WMO possible, and turn the rest into new stations (er, CLIMAT excepted). In other words, what CRU usually do. It will allow bad databases to pass unnoticed, and good databases to become bad, but I really don't think people care enough to fix 'em, and it's the main reason the project is nearly a year late."</p> | true | 0 | president barack obama chinese president xi jinpings deal dramatically reduce greenhouse gas emissions countries couldnt come ironic time nov 11 announcement came days fifth anniversary climategate cast pall credibility major climate research institutions nov 17 2009 discovered hundreds emails files either hacked leaked climatic research unit cru university east anglia uea according roger pielke jr months climategate cru admitted raw data climate science based therefore hold original raw data valueadded ie quality controlled homogenized data cru said website according pielke emphasis pielkes response say cru lost track original data uses create global temperature record serious climategate files shed light problems cru data media coverage scandal didnt three broadcast networks ignored breaking news full 13 days november 2009 since networks mentioned nine stories recent may 2010 never mentioned harry read file according nexis searches later networks sought exonerate accused scientists one disturbing files 200page document called harry_read_metxt darrel ince professor computing open university wrote guardian uk imperative scientists relying computer programs release programs given slip keyboard could create error programs used make financial decisions involve billions pounds moreover probability errors quite high pj mediaand others said appears written ian harry harris worked tirelessly fix crus convoluted data working project catalogued many challenges 2006 2009 file extensive single document released frustrations inspire confidence crus data given many exclamations like whole project mess wonder needed therapy harry complains every time seemed make progress ends worse another point exclaims another thing understand another reason rewritten scratch year ago harry_read_me file longrunning commentary describing disconcerting breath problems encountered attempting edit organize climate data sets cru challenges included cru loss data predecessors accidentally deleting important calculations receiving poorly organized data various parts world work glitchy array customized computer programs circumstances writer forced make many judgment calls proceed despite admitting havent training stats entire life despite revelations crus climate models defended us governments environmental protection agency epa united nations intergovernmental panel climate change ipcc bbc reported nov 20 2009 researchers cru played key role ipcc findings ipccs conclusions climate change turn heavily influenced epas ruling authority regulate carbon dioxide order prevent global warming according newsmax dec 9 2009 yet critics file demonstrated muddled state crus climate data illustrated vast complexity required generate climate models christopher booker columnist telegraph uk wrote tragically evident harry read file picture gives cru scientists hopelessly sea complex computer programmes sic devised model purported global warming february 2010 minority staff us senate committee environment public works released report climategate scandal sen james inhofe rokla committees ranking minority member time minority staff said report harry read file raises several serious questions reliability integrity crus data compilation quality assurance protocols report also said moreover believe emails accompanying documents seriously compromise ipccbased consensus central conclusion anthropogenic emissions inexorably leading environmental catastrophes 10 stunning quotes harry_read_me file warning explicit language oh fuck sunday evening ive worked weekend thought done im hitting yet another problem thats based hopeless state databases uniform data integrity catalogue issues continues grow theyre found dont understand statistics quel surprise given havent training stats entire life unless count alevel maths seriously close giving history complex cant get far enough head hurts stop parameter tortuous history manual semiautomated interventions simply go back early versions run update prog could throwing away kinds corrections latlons wmos yes bear mind working synthetic method cloud mark new lost coefficients file never found despite searching tape archives uea never recreated really go town allow master database fixed program quite honestly dont time shows state data holdings drifted added two series together untraceable except anecdotally story many russian stations unfortunately meaning probably full russian update data integrity checking hope restricted russia hunt found identicallynamed temperature database file include normals lines start every station handy naming two different files exactly name relying location differentiate aaarrgghh expected 19902003 period missing correlations arent hot yet wmo codes station names locations identical close hell supposed happen oh yeah supposed make looking dates something bad happened hasnt cobar airport aws start 1962 didnt open 1993 somewhat cynical shrug added nuclear option match every wmo possible turn rest new stations er climat excepted words cru usually allow bad databases pass unnoticed good databases become bad really dont think people care enough fix em main reason project nearly year late | 702 |
<p />
<p>Treating diseases that have a genetic component by altering the expression of the responsible genes is a promising new field of medicine, but it has been much less straightforward than biopharmaceutical companies had expected. Two contenders in this area, Alnylam Pharmaceuticals (NASDAQ: ALNY) and Ionis Pharmaceuticals (NASDAQ: IONS), saw a mix of setbacks and success in 2016.</p>
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<p>Image source: Getty Images.</p>
<p>In 2016, these two stocks have taken paths as varied as their approaches to drug development, and the past few months have been a wild ride. Since the beginning of October, shares of Alnylam have dropped more than 40%, while Ionis has gained 35%. In light of the recent market-moving events, investors are right to wonder which stock is the better pick at recent prices. Let's compare the two to see how they stack up at the moment.</p>
<p>The bull thesis for Alnylam took a major hit in October when the company shuttered its revusiran program due to safety issues. The candidate was intended to alleviate heart damage caused by buildup of a misfolded protein called transthyretin. If the halted late-stage trial had led to approval, then revusiran might have eventually generated roughly $1 billion in annual sales at its peak.</p>
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<p>Alnylam's second drug in late-stage development is also aimed at transthyretin amyloidosis, but patisiran is intended to reduce nerve damage caused by its buildup. This is a far less common symptom than heart damage, and peak annual sales estimates for the drug candidate top out around $700 million. Luckily, a recent safety analysis suggests patisiran isn't causing the same side effects that doomed revusiran.</p>
<p>It's also fortunate that Alnylam has two more candidates ready to enter phase 3 trials in 2017 that sport an arguably safer delivery technology than revusiran. Givosiran is a candidate for treatment of acute hepatic porphyrias, a series of enzymatic disorders that affect an estimated 5,000 patients throughout the U.S. and Europe who lack effective preventative treatment options. Fitusiran is a unique hemophilia candidate aimed at lowering antithrombin activity, rather than replacing factors associated with the bleeding disorder. If successful, it could find a small niche among roughly 6,000 hemophilia patients worldwide who have developed inhibitors to current factor-replacement therapies.</p>
<p>While Alnylam's RNA interference approach is far different from Ionis' antisense approach, it also has a transthyretin-related program with ongoing safety issues. In May, Ionis stock was pummeled after its partner,GlaxoSmithKline, announced it would delay advancing IONIS-TTRrx into a phase 3 heart damage study in light of dangerously low platelet levels associated with its use.</p>
<p>Unlike Alnylam, Ionis and Glaxo are developing the same candidate for treatment of transthyretin-related nerve damage. If its safety profile holds up through a phase 3 trial in this group, its big pharma partner might allow the delayed study to continue.</p>
<p>Also in stark contrast to Alnylam, Ionis has earned FDA approval for two drugs already. Kynamro -- for treatment of a rare, inherited form of super-high cholesterol -- flopped in the face of competing drugs. Luckily, its second drug to earn the green light has a much better chance in the commercial stage. Its collaboration partner Biogen will launch recently approved Spinraza unopposed as the first treatment for the most common genetic cause of infant mortality in America, spinal muscular atrophy (SMA).</p>
<p>The disease is most severe when it affects newborns, but a much larger population doesn't begin showing symptoms until later in life. A single approval for all SMA patients could allow the drug to reach peak annual sales of around $2 billion sooner than expected, and Ionis will receive a tiered royalty percentage up to the mid-teens.</p>
<p>In the meantime, the approval triggers a $60 million milestone payment from Biogen, which will help fund development of a candidate that Ionis owns outright. Volanesorsen recently smashed through its main goal in a phase 3 trial with severe hypertriglyceridemia patients, which suggests it has a clear shot at becoming the first effective therapy for two rare metabolic disorders.</p>
<p>Investing in the pioneer of RNA interference today seems like a risky proposition. It will be at least a year before we know whether Alnylam has a chance of launching patisiran, at which time it may have to compete with IONIS-TTRrx for share of an already small space.</p>
<p>Image source: Getty Images.</p>
<p>Ionis Pharmaceuticals stock is hardly risk-free. Its valuation suggests success well beyond Spinraza, which is still far from certain. Its entire lineup is based on RNA antisense technology that still lacks enough real-world data to boast a squeaky-clean safety profile.</p>
<p>We'll know more within a couple of years as the Spinraza launch unfolds, which is a lot more than we can say for Alnylam at the moment. Despite its higher valuation, a much clearer path to profitability makes Ionis Pharmaceuticals the better stock pick right now.</p>
<p>10 stocks we like better than Ionis Pharmaceuticals 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=98682290-505d-456a-999f-f41278ea066f&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 Ionis Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
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<p>The Motley Fool owns shares of and recommends Alnylam Pharmaceuticals, Biogen, and Ionis Pharmaceuticals. 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 | treating diseases genetic component altering expression responsible genes promising new field medicine much less straightforward biopharmaceutical companies expected two contenders area alnylam pharmaceuticals nasdaq alny ionis pharmaceuticals nasdaq ions saw mix setbacks success 2016 continue reading image source getty images 2016 two stocks taken paths varied approaches drug development past months wild ride since beginning october shares alnylam dropped 40 ionis gained 35 light recent marketmoving events investors right wonder stock better pick recent prices lets compare two see stack moment bull thesis alnylam took major hit october company shuttered revusiran program due safety issues candidate intended alleviate heart damage caused buildup misfolded protein called transthyretin halted latestage trial led approval revusiran might eventually generated roughly 1 billion annual sales peak advertisement alnylams second drug latestage development also aimed transthyretin amyloidosis patisiran intended reduce nerve damage caused buildup far less common symptom heart damage peak annual sales estimates drug candidate top around 700 million luckily recent safety analysis suggests patisiran isnt causing side effects doomed revusiran also fortunate alnylam two candidates ready enter phase 3 trials 2017 sport arguably safer delivery technology revusiran givosiran candidate treatment acute hepatic porphyrias series enzymatic disorders affect estimated 5000 patients throughout us europe lack effective preventative treatment options fitusiran unique hemophilia candidate aimed lowering antithrombin activity rather replacing factors associated bleeding disorder successful could find small niche among roughly 6000 hemophilia patients worldwide developed inhibitors current factorreplacement therapies alnylams rna interference approach far different ionis antisense approach also transthyretinrelated program ongoing safety issues may ionis stock pummeled partnerglaxosmithkline announced would delay advancing ionisttrrx phase 3 heart damage study light dangerously low platelet levels associated use unlike alnylam ionis glaxo developing candidate treatment transthyretinrelated nerve damage safety profile holds phase 3 trial group big pharma partner might allow delayed study continue also stark contrast alnylam ionis earned fda approval two drugs already kynamro treatment rare inherited form superhigh cholesterol flopped face competing drugs luckily second drug earn green light much better chance commercial stage collaboration partner biogen launch recently approved spinraza unopposed first treatment common genetic cause infant mortality america spinal muscular atrophy sma disease severe affects newborns much larger population doesnt begin showing symptoms later life single approval sma patients could allow drug reach peak annual sales around 2 billion sooner expected ionis receive tiered royalty percentage midteens meantime approval triggers 60 million milestone payment biogen help fund development candidate ionis owns outright volanesorsen recently smashed main goal phase 3 trial severe hypertriglyceridemia patients suggests clear shot becoming first effective therapy two rare metabolic disorders investing pioneer rna interference today seems like risky proposition least year know whether alnylam chance launching patisiran time may compete ionisttrrx share already small space image source getty images ionis pharmaceuticals stock hardly riskfree valuation suggests success well beyond spinraza still far certain entire lineup based rna antisense technology still lacks enough realworld data boast squeakyclean safety profile well know within couple years spinraza launch unfolds lot say alnylam moment despite higher valuation much clearer path profitability makes ionis pharmaceuticals better stock pick right 10 stocks like better ionis pharmaceuticals 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 ionis pharmaceuticals wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns nov 7 2016 cory renauer opens new window position stocks mentioned follow cory twitter coryrenauer opens new window linkedin opens new window biotech investing insights motley fool owns shares recommends alnylam pharmaceuticals biogen ionis pharmaceuticals 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 | 631 |
<p>A powerful earthquake that struck the heart of California's wine country caught many people sound asleep, sending dressers, mirrors and pictures crashing down around them and toppling wine bottles in vineyards around the region. Scores were injured as the temblor knocked out power to thousands, caused gas and water lines to rupture, sparked fires and buckled roads.</p>
<p>The magnitude 6.0-quake struck at 3:20 a.m. PDT Sunday near the city of Napa, an oasis of Victorian-era buildings nestled in the vineyard-studded hills of Northern California. The fires also flared in a mobile home park where four homes were destroyed and two others were damaged, officials said.</p>
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<p>By midday Sunday, the fires were out and power was starting to be restored, said Mark Ghilarducci, director of the California Governor's Office of Emergency Services.</p>
<p>"While it was bad, it wasn't as bad as it could be, and it was very manageable from a regional perspective," Ghilarducci said.</p>
<p>The quake struck about six miles south of Napa and lasted 10 to 20 seconds depending on proximity to the epicenter, according to the U.S. Geological Survey. It was the largest to shake the San Francisco Bay Area since the magnitude-6.9 Loma Prieta quake struck in 1989, collapsing part of the Bay Bridge roadway and killing more than 60 people, most when an Oakland freeway fell.</p>
<p>It was felt widely throughout the region, from more than 200 miles south of Napa and as far east as the Nevada border.</p>
<p>For many, the quake struck at the worst time possible, rousing them in the middle of the night and sending them fumbling in darkness to take cover and find loved ones. A number of the injuries were caused by people stepping on broken glass, falling down or being hit by furniture.</p>
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<p>The quake's timing was also bad for Napa Valley's famed vineyards, where winemakers were just getting ready to harvest the 2014 crop. The quake broke thousands of bottles of wine and toppled barrels.</p>
<p>Omar Rodriguez, 23, of Napa, was treated for a gash on his forehead in one of the triage tents outside a hospital that handled the victims.</p>
<p>"We woke up to the earthquake and I thought I was dreaming because I fell off my bed, you know, it was all dark, and I just got back up. She noticed it was all bleeding," he said, referring to his girlfriend.</p>
<p>Officials were still assessing the damage late Sunday in hopes of getting a cost estimate they could submit for possible federal assistance. The initial assessment found that dozens of homes and buildings in the region were unsafe to occupy, including a historic Napa County courthouse, where a 10-foot wide hole opened a view of the offices inside.</p>
<p>Queen of the Valley Medical Center in Napa reported treating 172 people in the emergency room, although hospital officials could not say how many of them were there for injuries suffered in the quake and how many for more routine injuries and illnesses, hospital CEO Walt Mickens said.</p>
<p>Twelve people were admitted for broken bones and other medical problems directly related to the earthquake, including an adult who remained in critical condition on Sunday night and a 13-year-old boy.</p>
<p>The teen was hit by flying debris from a collapsed fireplace and had to be airlifted to the children's hospital at the University of California Davis Medical Center for a neurological evaluation. He condition was listed as serious, hospital spokeswoman Phyllis Brown said.</p>
<p>While inspecting the shattered glass at her husband's storefront office in downtown Napa, Chris Malloy described calling for her two children in the dark as the quake rumbled under the family's home, tossing heavy pieces of furniture for several feet.</p>
<p>"It was shaking and I was crawling on my hands and knees in the dark, looking for them," the 45-year-old woman said, wearing flip flops on feet left bloodied from crawling through broken glass.</p>
<p>About 70,000 customers lost power after the quake hit, but Pacific Gas and Electric spokeswoman Nicole Liebelt said early Monday that the number was down to about 150 by 4 a.m.</p>
<p>An earthquake early warning system currently being tested issued a 10-second warning before the quake struck, said Richard Allen, director of the University of California, Berkeley, Seismological Laboratory. California is working to implement a statewide system, though Allen said funding has not been secured.</p>
<p>The timing of the quake was bad for business in Napa as well.</p>
<p>Vintner Richard Ward of Saintsbury Winery south of Napa watched Sunday afternoon as workers righted toppled barrels and rescued a 500-pound grape de-stemmer that the quake had thrown to the ground.</p>
<p>"That's what happens when you're a mile from the epicenter," said Ward, who lost 300 to 400 bottles in the winery's basement.</p>
<p>The grape harvest was supposed to start overnight Monday, but it would now be pushed off a few days, he said. Had the harvest started a day earlier, the quake could have caught the workers among the heavy barrels when it struck, Ward said.</p>
<p>Aftershocks were expected to continue for several weeks, though State Geologist John Parrish said they would decrease in magnitude and it was unlikely that there would be a large follow-up earthquake. Still, he warned people to be careful because buildings that were damaged by the quake were now more susceptible to collapse from aftershocks.</p>
<p>___</p>
<p>Associated Press writers Juliet Williams in Napa, Lisa Leff in San Francisco, Courtney Bonnell in Phoenix and Daisy Nguyen in Los Angeles contributed to this report.</p> | true | 0 | powerful earthquake struck heart californias wine country caught many people sound asleep sending dressers mirrors pictures crashing around toppling wine bottles vineyards around region scores injured temblor knocked power thousands caused gas water lines rupture sparked fires buckled roads magnitude 60quake struck 320 pdt sunday near city napa oasis victorianera buildings nestled vineyardstudded hills northern california fires also flared mobile home park four homes destroyed two others damaged officials said continue reading midday sunday fires power starting restored said mark ghilarducci director california governors office emergency services bad wasnt bad could manageable regional perspective ghilarducci said quake struck six miles south napa lasted 10 20 seconds depending proximity epicenter according us geological survey largest shake san francisco bay area since magnitude69 loma prieta quake struck 1989 collapsing part bay bridge roadway killing 60 people oakland freeway fell felt widely throughout region 200 miles south napa far east nevada border many quake struck worst time possible rousing middle night sending fumbling darkness take cover find loved ones number injuries caused people stepping broken glass falling hit furniture advertisement quakes timing also bad napa valleys famed vineyards winemakers getting ready harvest 2014 crop quake broke thousands bottles wine toppled barrels omar rodriguez 23 napa treated gash forehead one triage tents outside hospital handled victims woke earthquake thought dreaming fell bed know dark got back noticed bleeding said referring girlfriend officials still assessing damage late sunday hopes getting cost estimate could submit possible federal assistance initial assessment found dozens homes buildings region unsafe occupy including historic napa county courthouse 10foot wide hole opened view offices inside queen valley medical center napa reported treating 172 people emergency room although hospital officials could say many injuries suffered quake many routine injuries illnesses hospital ceo walt mickens said twelve people admitted broken bones medical problems directly related earthquake including adult remained critical condition sunday night 13yearold boy teen hit flying debris collapsed fireplace airlifted childrens hospital university california davis medical center neurological evaluation condition listed serious hospital spokeswoman phyllis brown said inspecting shattered glass husbands storefront office downtown napa chris malloy described calling two children dark quake rumbled familys home tossing heavy pieces furniture several feet shaking crawling hands knees dark looking 45yearold woman said wearing flip flops feet left bloodied crawling broken glass 70000 customers lost power quake hit pacific gas electric spokeswoman nicole liebelt said early monday number 150 4 earthquake early warning system currently tested issued 10second warning quake struck said richard allen director university california berkeley seismological laboratory california working implement statewide system though allen said funding secured timing quake bad business napa well vintner richard ward saintsbury winery south napa watched sunday afternoon workers righted toppled barrels rescued 500pound grape destemmer quake thrown ground thats happens youre mile epicenter said ward lost 300 400 bottles winerys basement grape harvest supposed start overnight monday would pushed days said harvest started day earlier quake could caught workers among heavy barrels struck ward said aftershocks expected continue several weeks though state geologist john parrish said would decrease magnitude unlikely would large followup earthquake still warned people careful buildings damaged quake susceptible collapse aftershocks ___ associated press writers juliet williams napa lisa leff san francisco courtney bonnell phoenix daisy nguyen los angeles contributed report | 539 |
<p>Seven months after a racially charged email put the Atlanta Hawks on the market, there's an agreement to sell the NBA team for $850 million.</p>
<p>A group headed by billionaire Antony Ressler, which also includes former NBA star Grant Hill and Spanx founder Sara Blakely, signed off on a deal Wednesday to purchase the team that made a surprising run to the top of the Eastern Conference this season.</p>
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<p>The Hawks announced the sale, which also includes the operating rights to Philips Arena, during the first half of their playoff game against the Brooklyn Nets. Atlanta held on for a 96-91 victory and a 2-0 lead in the series.</p>
<p>The deal still must be approved by three-fourths of the NBA's other 29 owners. That shouldn't be a problem, given that Ressler is a minority owner of baseball's Milwaukee Brewers and is familiar to the NBA after he attempted to buy the Los Angeles Clippers last year.</p>
<p>"We are honored and thrilled to have been chosen to become the new stewards of the Hawks," said Ressler, who was not at Game 2 but issued a statement through the team. "We respect the NBA's approval process and, accordingly, can say no more other than we are incredibly excited by the Hawks' success and wish them luck in the playoffs."</p>
<p>Hill, a seven-time NBA All-Star who is African-American, and Blakely, whose undergarment company has made her one of the country's most influential businesswomen, bring diversity to the new ownership group. It also includes Blakely's husband, entrepreneur Jesse Itzler, and Rick Schnall, a partner in the equity investment firm Clayton Dubilier &amp; Rice.</p>
<p>The sale price was not released. But a person familiar with the deal, speaking to The Associated Press on condition of anonymity because the two sides did not reveal that information, said Ressler's group would pay $850 million, including debt the team owes.</p>
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<p>In September, co-owner Bruce Levenson announced he was selling his stake in the team after writing an email two years earlier in which he complained that the Hawks struggled with attendance because "the black crowd scared away the whites." It was another blow to the NBA's reputation, coming on the heels of Donald Sterling's forced ouster as owner of the Clippers after he was recorded telling his girlfriend not to bring blacks to his team's games.</p>
<p>Making matters worse for the Hawks, Levenson's email was uncovered during the team's internal investigation of general manager Danny Ferry, who made racially derogatory comments about potential free agent signee Luol Deng during a conference call with the ownership group. Ferry went on indefinite leave shortly afterward and hasn't been with the Hawks all season, his future expected to be decided by the new owner.</p>
<p>Despite the uncertainty over the team's future, the Hawks set a franchise record by going 60-22 this season and earned a top seed for the first time since 1994. They also had a 21 percent increase in attendance, averaging 17,412 per game — the most in team history.</p>
<p>"We've done a good job all year of putting this story on the backburner," guard Kyle Korver said. "We'll continue to do the same."</p>
<p>The Hawks' price falls between two NBA teams sold last year. The Milwaukee Bucks went for $550 million, while Steve Ballmer landed the Clippers for a staggering $2 billion — an unprecedented figure for a U.S. sports franchise.</p>
<p>Forbes valued the Hawks at $425 million last year, but the sales of the Clippers and Bucks changed the market. With the NBA landing lucrative new television deals, the value of all franchises has skyrocketed.</p>
<p>The 55-year-old Ressler, whose net worth was estimated by Forbes at $1.4 billion, was part of the investment group led by Mark Attanasio that bought the Brewers in 2005.</p>
<p>Based in Los Angeles, Ressler is co-founder of the private equity fund Ares Management. He married actress Jami Gertz in 1987.</p>
<p>Hill's presence in the group could be good news for Ferry. Both played their college ball at Duke, though not at the same time.</p>
<p>"We are excited to welcome this new ownership group and are deeply gratified by its commitment to the Hawks and the Atlanta community," said Steve Koonin, the Hawks' chief executive officer.</p>
<p>The current ownership group, known as Atlanta Spirit, bought the Hawks, the NHL's Atlanta Thrashers and operating rights to Philips Arena for $250 million in 2004.</p>
<p>Four years ago, the Thrashers were hastily sold for $170 million and relocated to Winnipeg as the Jets. When added to the much more lucrative sale of the Hawks, the ownership group will get a huge return on its initial investment even through plenty of bickering and complaints of mismanagement.</p>
<p>Atlanta Mayor Kasim Reed has said the city might offer concessions to any new owner to ensure the Hawks commit to remaining in Atlanta for another 30 years. NBA Commissioner Adam Silver had told prospective owners that he wants the team to remain in the city where it's been based since moving from St. Louis in 1968.</p>
<p>"I do want to see the Hawks stay in Atlanta, and we've made that clear to the market," Silver said in January.</p>
<p>___</p>
<p>AP Sports Writer Charles Odum and freelance writer Amy Jinkner-Lloyd contributed to this report.</p>
<p>___</p>
<p>Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963</p> | true | 0 | seven months racially charged email put atlanta hawks market theres agreement sell nba team 850 million group headed billionaire antony ressler also includes former nba star grant hill spanx founder sara blakely signed deal wednesday purchase team made surprising run top eastern conference season continue reading hawks announced sale also includes operating rights philips arena first half playoff game brooklyn nets atlanta held 9691 victory 20 lead series deal still must approved threefourths nbas 29 owners shouldnt problem given ressler minority owner baseballs milwaukee brewers familiar nba attempted buy los angeles clippers last year honored thrilled chosen become new stewards hawks said ressler game 2 issued statement team respect nbas approval process accordingly say incredibly excited hawks success wish luck playoffs hill seventime nba allstar africanamerican blakely whose undergarment company made one countrys influential businesswomen bring diversity new ownership group also includes blakelys husband entrepreneur jesse itzler rick schnall partner equity investment firm clayton dubilier amp rice sale price released person familiar deal speaking associated press condition anonymity two sides reveal information said resslers group would pay 850 million including debt team owes advertisement september coowner bruce levenson announced selling stake team writing email two years earlier complained hawks struggled attendance black crowd scared away whites another blow nbas reputation coming heels donald sterlings forced ouster owner clippers recorded telling girlfriend bring blacks teams games making matters worse hawks levensons email uncovered teams internal investigation general manager danny ferry made racially derogatory comments potential free agent signee luol deng conference call ownership group ferry went indefinite leave shortly afterward hasnt hawks season future expected decided new owner despite uncertainty teams future hawks set franchise record going 6022 season earned top seed first time since 1994 also 21 percent increase attendance averaging 17412 per game team history weve done good job year putting story backburner guard kyle korver said well continue hawks price falls two nba teams sold last year milwaukee bucks went 550 million steve ballmer landed clippers staggering 2 billion unprecedented figure us sports franchise forbes valued hawks 425 million last year sales clippers bucks changed market nba landing lucrative new television deals value franchises skyrocketed 55yearold ressler whose net worth estimated forbes 14 billion part investment group led mark attanasio bought brewers 2005 based los angeles ressler cofounder private equity fund ares management married actress jami gertz 1987 hills presence group could good news ferry played college ball duke though time excited welcome new ownership group deeply gratified commitment hawks atlanta community said steve koonin hawks chief executive officer current ownership group known atlanta spirit bought hawks nhls atlanta thrashers operating rights philips arena 250 million 2004 four years ago thrashers hastily sold 170 million relocated winnipeg jets added much lucrative sale hawks ownership group get huge return initial investment even plenty bickering complaints mismanagement atlanta mayor kasim reed said city might offer concessions new owner ensure hawks commit remaining atlanta another 30 years nba commissioner adam silver told prospective owners wants team remain city based since moving st louis 1968 want see hawks stay atlanta weve made clear market silver said january ___ ap sports writer charles odum freelance writer amy jinknerlloyd contributed report ___ follow paul newberry twitter wwwtwittercompnewberry1963 | 533 |
<p>Skyworks Solutions (NASDAQ: SWKS) and Cypress Semiconductor (NASDAQ: CY) have captured investors' imagination in recent months thanks to their rapidly growing revenue.</p>
<p>Both chipmakers have taken advantage of smartphones and other consumer electronic items, most notably by <a href="https://www.fool.com/investing/2017/04/27/3-apple-suppliers-for-investors-to-consider.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">supplying chips Opens a New Window.</a> to Apple. But they are now diversifying into new areas such as automotive, virtual assistants, and the Internet of Things to ensure long-term growth, while also tracking emerging technologies in consumer electronic devices. But are the catalysts and valuations enough to warrant a long-term investment? I think so.</p>
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<p>Skyworks has been trying hard to wean itself from being seen as predominantly an Apple supplier. This is not going to happen in the blink of an eye, though, as <a href="https://www.fool.com/investing/2017/07/18/5-things-you-didnt-know-about-skyworks-solutions-i.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">Cupertino supplies 40% Opens a New Window.</a> of its total revenue. But the chip specialist has already set the wheels of diversification in motion.</p>
<p>By targeting automotive connectivity and virtual assistant devices, Skyworks has been able to enhance its non-mobile revenue to 27% of the top line. This is just the beginning as both these markets are still in their early phases of growth. For instance, connected car sales could grow at an annual pace of over 35% until 2022, and this will boost demand for vehicle-to-vehicle connectivity chips.</p>
<p>More specifically, vehicles will need more semiconductor chips to talk to each other or to the cloud, with one estimate saying chip content will jump from $332 per vehicle to $374 per vehicle in 2019. The good news is that Skyworks has already started volume shipments of its 802.11p vehicle-to-vehicle connectivity modules, which is the most widely accepted standard for this application.</p>
<p>Skyworks, however, hasn't gone into the specifics of its automotive business, making it difficult to pinpoint its exact value. But the company's expertise and experience in making radio frequency chips should help it tap the secular growth available.</p>
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<p>But Skyworks management seems more excited about its improving traction in smart-home systems. The company recently revealed that it has launched motion detectors and home security sensors for Honeywell and Bosch, setting itself up to tap a market that's expected to clock an 18% growth rate per year.</p>
<p>More importantly, Skyworks' focus on security systems from Honeywell could be a big deal in the long run as the industrial giant has been aggressively improving its presence in this space. Honeywell made two major acquisitions last year to boost its presence in the home security market, apart from acquiring some mid-sized companies at the dealer level, which could eventually enhance Skyworks' sales.</p>
<p>Just like Skyworks, Cypress is also focusing on the automotive opportunity to accelerate long-term growth. But the difference lies in the fact that it has already made some tangible progress. For instance, the company already counts&#160; Toyota, Audi, Bosch, and Continental as customers for its automotive microcontrollers, believing that these partnerships will increase its addressable market by an average of 10% over the next five years.</p>
<p>But automotive is just one of the many avenues that could power Cypress' long-term growth. The company has a massive opportunity in USB-C connectivity, which is fast gaining traction in consumer electronic items as it reduces charging time, increases data transfer speeds, and has a slim profile.</p>
<p>Cypress is <a href="https://www.fool.com/investing/2017/03/17/how-cypress-semiconductor-could-benefit-from-the-n.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">rumored to supply Opens a New Window.</a> the USB-C chip to Apple, but there is a huge opportunity in this space even if it fails to land this spot. Cypress controls 35% of the USB-C market thanks to a strong client base that consists of five of the top six PC OEMs (original equipment manufacturer), apart from smartphone giants such as Samsung.</p>
<p>What's more, even mid-range smartphones are now being equipped with USB-C technology. Not surprisingly, ABI Research believes that sales of USB-C-equipped smartphones could jump to 830 million units in 2021 from just 60 million last year. This excludes the uptake of the technology by notebook&#160; PCs, which present another potentially fertile ground for Cypress.</p>
<p>Meanwhile, Cypress has also decided to jump into the smart-home space with its Wi-Fi and Bluetooth Low Energy (BLE) chips. The company claims that its recently launched ultra-low-power microcontrollers for smart-home and Internet of Things applications provide 26% <a href="https://www.fool.com/investing/2017/05/24/why-cypress-semiconductors-consumer-business-is-se.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">more battery life Opens a New Window.</a> than the closest rival. This could be a strong selling point for its products.</p>
<p>But what do investors have to pay for the potential growth of both these companies? Both Skyworks and Cypress look like value picks. Skyworks has a trailing&#160; price-to-earnings ratio of 20 and a forward price-to-earnings ratio of 14, indicating expected earnings growth.</p>
<p>The chipmaker's current valuation is almost equivalent to its median P/E ratio over the past 13 years. Furthermore, Skyworks' current P/E ratio is lower than the industry average of 23.2, making it a good value pick.</p>
<p>Cypress, on the other hand, isn't yet profitable so it doesn't have a P/E ratio as it has no earnings. However, investors won't have to pay through their nose for this stock, either, as its trailing <a href="https://www.fool.com/knowledge-center/using-the-price-to-sales-ratio-to-value-stocks.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">price-to-sales ratio Opens a New Window.</a> is lower than peers'.</p>
<p>More specifically, Cypress Semiconductor has a P/S ratio of just 2, which is exactly half of the industry average. Furthermore, the company's P/S ratio is currently lower than its five-year average of 2.3, indicating that it is still a good bet despite the impressive stock market rally.</p>
<p>Both chipmakers&#160;look like value plays when compared to the potential growth that they can deliver based on the huge end-market opportunities that they can tap. On one hand, Skyworks has numerous catalysts in smartphones, automotive chips, and smart homes. Meanwhile, Cypress can take advantage of the secular growth in the USB-C market and applications in the automotive space.</p>
<p>Investors can safely consider these two stocks from a long-term perspective given their massive growth opportunities and attractive valuation levels.</p>
<p>10 stocks we like better than Skyworks SolutionsWhen 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=cfaa7d16-78ec-4968-aa9f-3e2715d79c2b&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Skyworks Solutions 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=cfaa7d16-78ec-4968-aa9f-3e2715d79c2b&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of August 1, 2017</p>
<p><a href="http://my.fool.com/profile/TechJunk13/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">Harsh Chauhan Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Apple and Skyworks Solutions. The Motley Fool has the following options: short November 2017 $95 calls on Skyworks Solutions and short November 2017 $92 puts on Skyworks Solutions. The Motley Fool recommends Cypress Semiconductor. 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=90d115e4-80a3-11e7-b898-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | skyworks solutions nasdaq swks cypress semiconductor nasdaq cy captured investors imagination recent months thanks rapidly growing revenue chipmakers taken advantage smartphones consumer electronic items notably supplying chips opens new window apple diversifying new areas automotive virtual assistants internet things ensure longterm growth also tracking emerging technologies consumer electronic devices catalysts valuations enough warrant longterm investment think continue reading skyworks trying hard wean seen predominantly apple supplier going happen blink eye though cupertino supplies 40 opens new window total revenue chip specialist already set wheels diversification motion targeting automotive connectivity virtual assistant devices skyworks able enhance nonmobile revenue 27 top line beginning markets still early phases growth instance connected car sales could grow annual pace 35 2022 boost demand vehicletovehicle connectivity chips specifically vehicles need semiconductor chips talk cloud one estimate saying chip content jump 332 per vehicle 374 per vehicle 2019 good news skyworks already started volume shipments 80211p vehicletovehicle connectivity modules widely accepted standard application skyworks however hasnt gone specifics automotive business making difficult pinpoint exact value companys expertise experience making radio frequency chips help tap secular growth available advertisement skyworks management seems excited improving traction smarthome systems company recently revealed launched motion detectors home security sensors honeywell bosch setting tap market thats expected clock 18 growth rate per year importantly skyworks focus security systems honeywell could big deal long run industrial giant aggressively improving presence space honeywell made two major acquisitions last year boost presence home security market apart acquiring midsized companies dealer level could eventually enhance skyworks sales like skyworks cypress also focusing automotive opportunity accelerate longterm growth difference lies fact already made tangible progress instance company already counts160 toyota audi bosch continental customers automotive microcontrollers believing partnerships increase addressable market average 10 next five years automotive one many avenues could power cypress longterm growth company massive opportunity usbc connectivity fast gaining traction consumer electronic items reduces charging time increases data transfer speeds slim profile cypress rumored supply opens new window usbc chip apple huge opportunity space even fails land spot cypress controls 35 usbc market thanks strong client base consists five top six pc oems original equipment manufacturer apart smartphone giants samsung whats even midrange smartphones equipped usbc technology surprisingly abi research believes sales usbcequipped smartphones could jump 830 million units 2021 60 million last year excludes uptake technology notebook160 pcs present another potentially fertile ground cypress meanwhile cypress also decided jump smarthome space wifi bluetooth low energy ble chips company claims recently launched ultralowpower microcontrollers smarthome internet things applications provide 26 battery life opens new window closest rival could strong selling point products investors pay potential growth companies skyworks cypress look like value picks skyworks trailing160 pricetoearnings ratio 20 forward pricetoearnings ratio 14 indicating expected earnings growth chipmakers current valuation almost equivalent median pe ratio past 13 years furthermore skyworks current pe ratio lower industry average 232 making good value pick cypress hand isnt yet profitable doesnt pe ratio earnings however investors wont pay nose stock either trailing pricetosales ratio opens new window lower peers specifically cypress semiconductor ps ratio 2 exactly half industry average furthermore companys ps ratio currently lower fiveyear average 23 indicating still good bet despite impressive stock market rally chipmakers160look like value plays compared potential growth deliver based huge endmarket opportunities tap one hand skyworks numerous catalysts smartphones automotive chips smart homes meanwhile cypress take advantage secular growth usbc market applications automotive space investors safely consider two stocks longterm perspective given massive growth opportunities attractive valuation levels 10 stocks like better skyworks solutionswhen 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 skyworks solutions wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 harsh chauhan opens new window position stocks mentioned motley fool owns shares recommends apple skyworks solutions motley fool following options short november 2017 95 calls skyworks solutions short november 2017 92 puts skyworks solutions motley fool recommends cypress semiconductor motley fool disclosure policy opens new window | 683 |
<p />
<p>Image Source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>As we hurdle toward the finish line, 2016 will go down as a uniquely active year in the semiconductor market. Spurred on by the onset of several generational tech trends -- the Internet of Things (IoT), artificial intelligence, self-driving cars, and the like -- major semiconductor companies have gone on a buying spree to prepare them to cash-in on this growth. Two such names that sit smack dab in the middle of these growth markets are NVIDIA (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO), whose shares have handily outperformed their benchmark over the past five years.</p>
<p><a href="http://ycharts.com/companies/AVGO" type="external">AVGO</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>Both NIVIDIA and Broadcom are attractive in their own right, but which semiconductor stock is the better buy today? In this article, we'll run both stocks through a three-part gauntlet to see if one is more deserving of investors' attention.</p>
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<p>The first prism through which we'll analyze these semiconductor stocks is the strength of their balance sheets. Though their investment theses lie in their revenue and profit growth stories, investors need to understand a given company's financial strength in any investment scenario. In looking at NVIDIA and Broadcom, though, both companies appear fine for the most part. A few important distinctions emerge, however.</p>
<p>Data Source: NVIDIA &amp; Broadcom Investor Relations, Yahoo! Finance.</p>
<p>To get this out of the way, NVIDIA is the clear winner in every category here. NVIDIA has more cash and liquid assets on hand, carries less debt, and generates more cash flow from its core business. There's really no way around this or disputing it.</p>
<p>However, the important nuance in comparing the two companies is that Broadcom's financial position isn't a negative either, especially given the company's intelligent acquisition strategy (see Part 2 below). Simply stated, Broadcom, along with its pre-merger counterpart Avago, has been one of the most prolific acquirers of semiconductor companies, a part of the broader trend of rapid consolidation we've seen within the chip industry.</p>
<p>In fact, Avago funded part of last year's transformational merger with Broadcom by issuing $9 billion in fresh debt. The combined company is undeniably stronger as a result of the Broadcom-Avago merger and other recent acquisitions, so Broadcom's current debt burden is most appropriately viewed as the cost of the company's transformation into a company poised to dominate the Internet of Things chip market in coming years.</p>
<p>Winner: NVIDIA.</p>
<p>Unlike the above section, it's far harder to determine which company holds stronger competitive advantages. Simply said, both companies are enviably positioned to dominate their markets for years to come.</p>
<p>Broadcom's area of focus is connectivity. The company operates four reporting segments -- wired infrastructure, wireless communication, enterprise storage, and industrial and other -- that help make our increasingly connected world tick. Its chips appear in smartphones, cellular base stations, Internet of Things devices like smart appliances, data centers, and more. The company's semiconductors touch multiple points of the connectivity value chain, as well, which is fantastic news given the unprecedented growth opportunity the IoT presents.</p>
<p>According to Ericsson, the number of IoT connected devices is set to grow from 4.2 billion to 14.2 billion by 2021, and Broadcom's offerings will be selling directly into this trend from a place of market leadership. As such, there's little doubt that investors should love Broadcom's competitive stance at present.</p>
<p>As enviable as Broadcom's competitive positioning is, though, graphics chip leader NVIDIA's competitive advantages are every bit as compelling. Akin to Intel's dominance of the CPU microprocessors that power PCs, NVIDIA is the undeniable leader in the high-end graphics chips that lie at the heart of growth markets like self-driving cars, artificial intelligence, and machine learning. In fact, NVIDIA's chips power the budding AI or cloud platforms for Amazon, Facebook, Alphabet, IBM, and Microsoft. Its chips also underpin the self-driving car efforts of Tesla, Audi, Baidu, and many more. It's for this reason that analysts see NVIDIA's earnings per share compounding at a 28% annual clip over the next five years, and there's a legitimate case to be made that Wall Street still underappreciates NVIDIA's growth story.</p>
<p>Winner: Tie.</p>
<p>When it comes to valuation, the case becomes somewhat more clear cut. As you can see below, NVIDIA is priced for meaningful growth, deservedly so as we learned from the section above. However, Broadcom's valuation multiple is more appealing, though a bit harder to gain a sense of as the result of some merger-related accounting.</p>
<p>Data Source: S&amp;P CapIQ.</p>
<p>In the past three quarters, Broadcom has booked $1.5 billion in non-cash merger-related charges, which has artificially depressed its generally accepted accounting principles (GAAP) earnings. In backing those charges out, the company's normalized earnings per share for 2016 come to $10.84 per share, a very reasonable price for a company with Broadcom's positive growth outlook.</p>
<p>Winner: Broadcom.</p>
<p>Both NVIDIA and Broadcom sit at the middle of some of the most important growth markets in tech today. As such, each company should experience impressive sales and profit growth in the coming years. If we're splitting hairs here, you can make a plausible case that Broadcom's lower valuation makes it the better bet. However, the more important big-picture takeaway is that both NVIDIA and Broadcom are fantastic options for investors looking to participate in the next wave of semiconductor market growth.</p>
<p>10 stocks we like better than Broadcom 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=eda6be41-de77-4191-9c12-bf11323b9838&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 Broadcom wasn't one of them! That's right -- they think these 10 stocks are even better buys.</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/TMFTheDude/info.aspx" type="external">Andrew Tonner Opens a New Window.</a> owns shares of Baidu. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon.com, Baidu, Facebook, Nvidia, and Tesla Motors. The Motley Fool owns shares of Microsoft. The Motley Fool recommends Broadcom. 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 hurdle toward finish line 2016 go uniquely active year semiconductor market spurred onset several generational tech trends internet things iot artificial intelligence selfdriving cars like major semiconductor companies gone buying spree prepare cashin growth two names sit smack dab middle growth markets nvidia nasdaq nvda broadcom nasdaq avgo whose shares handily outperformed benchmark past five years avgo data ycharts opens new window nividia broadcom attractive right semiconductor stock better buy today article well run stocks threepart gauntlet see one deserving investors attention advertisement first prism well analyze semiconductor stocks strength balance sheets though investment theses lie revenue profit growth stories investors need understand given companys financial strength investment scenario looking nvidia broadcom though companies appear fine part important distinctions emerge however data source nvidia amp broadcom investor relations yahoo finance get way nvidia clear winner every category nvidia cash liquid assets hand carries less debt generates cash flow core business theres really way around disputing however important nuance comparing two companies broadcoms financial position isnt negative either especially given companys intelligent acquisition strategy see part 2 simply stated broadcom along premerger counterpart avago one prolific acquirers semiconductor companies part broader trend rapid consolidation weve seen within chip industry fact avago funded part last years transformational merger broadcom issuing 9 billion fresh debt combined company undeniably stronger result broadcomavago merger recent acquisitions broadcoms current debt burden appropriately viewed cost companys transformation company poised dominate internet things chip market coming years winner nvidia unlike section far harder determine company holds stronger competitive advantages simply said companies enviably positioned dominate markets years come broadcoms area focus connectivity company operates four reporting segments wired infrastructure wireless communication enterprise storage industrial help make increasingly connected world tick chips appear smartphones cellular base stations internet things devices like smart appliances data centers companys semiconductors touch multiple points connectivity value chain well fantastic news given unprecedented growth opportunity iot presents according ericsson number iot connected devices set grow 42 billion 142 billion 2021 broadcoms offerings selling directly trend place market leadership theres little doubt investors love broadcoms competitive stance present enviable broadcoms competitive positioning though graphics chip leader nvidias competitive advantages every bit compelling akin intels dominance cpu microprocessors power pcs nvidia undeniable leader highend graphics chips lie heart growth markets like selfdriving cars artificial intelligence machine learning fact nvidias chips power budding ai cloud platforms amazon facebook alphabet ibm microsoft chips also underpin selfdriving car efforts tesla audi baidu many reason analysts see nvidias earnings per share compounding 28 annual clip next five years theres legitimate case made wall street still underappreciates nvidias growth story winner tie comes valuation case becomes somewhat clear cut see nvidia priced meaningful growth deservedly learned section however broadcoms valuation multiple appealing though bit harder gain sense result mergerrelated accounting data source sampp capiq past three quarters broadcom booked 15 billion noncash mergerrelated charges artificially depressed generally accepted accounting principles gaap earnings backing charges companys normalized earnings per share 2016 come 1084 per share reasonable price company broadcoms positive growth outlook winner broadcom nvidia broadcom sit middle important growth markets tech today company experience impressive sales profit growth coming years splitting hairs make plausible case broadcoms lower valuation makes better bet however important bigpicture takeaway nvidia broadcom fantastic options investors looking participate next wave semiconductor market growth 10 stocks like better broadcom 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 broadcom wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns nov 7 2016 suzanne frey executive alphabet member motley fools board directors andrew tonner opens new window owns shares baidu motley fool owns shares recommends alphabet shares alphabet c shares amazoncom baidu facebook nvidia tesla motors motley fool owns shares microsoft motley fool recommends broadcom 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 | 686 |
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<p>Making the decision to move a loved one to a long-term care facility is never easy.</p>
<p>Continue Reading Below</p>
<p>However, once the decision has been made, another challenge awaits: finding the right facility, and figuring out how to finance the care.</p>
<p>Many baby boomers report having a hard time evaluating and identifying appropriate long-term care facilities for aging family members. But boomers are in a unique position during this search since they know it won’t be long until they too, might be in need of long-term care.</p>
<p>The latest survey from Anderson Robbins Research, fielded on behalf of Ecolab, of Americans older than 40 who have been involved in considering or selecting senior living housing for themselves or someone they know recently, shows boomers have high standards for their prospective facilities, seeking clean, safe and healthy communities.</p>
<p>I had a chance to speak to Leah Larson, director of long-term care marketing for Ecolab’s Institutional business, to discuss the findings and what questions boomers need to ask when assessing long-term care facilities. Here is what she had to say:</p>
<p>Boomer: With many seniors focused on living a vibrant life, what are some of the expectations of amenities and services they want from communities?</p>
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<p>Larson: What our research indicates is that one size does not fit all when it comes to selecting a senior living community. Answers about what factors are important or expectations for services and amenities varied depending upon whether the respondent was making the decision for themselves or a loved one.</p>
<p>For residents, comfortable living spaces ranked No.1, followed by services and amenities and then a safe layout of their apartment or room. Loved ones ranked a caring staff at the top of their list.</p>
<p>Regardless of the role of the respondent, when asked about the importance of services and amenities, the “extras” really mattered. Many (82%) said frequency of cleaning/laundry services is a priority, along with in-house exercise and recreational activities (72%) and access to in-room WiFi (43%). Other expectations include food and dining options reminiscent of a hotel, such as in-room delivery, a coffee shop, bakery/fresh baked goods and a fresh salad bar. About 20%expect access to an on-site bar or pub.</p>
<p>Boomer: The survey showed ensuring the cleanliness of the community as paramount when evaluating different facilities. What should boomers look for when visiting communities to ensure cleanliness?</p>
<p>Larson: This research confirmed what we intuitively know to be true. First impressions count, especially when it comes to cleanliness. Nearly all of the respondents (93%) said cleanliness of the community is an important factor in the decision-making process. Women are twice as likely as men to say cleanliness is their top priority.</p>
<p>The community’s overall appearance can serve as an indicator of how well it is managed and maintained. Is the décor attractive and home like? Is the community free of odors, and appropriately heated/cooled? Are there visibly soiled walls, carpeting and furniture? The answers to these questions can help determine if cleanliness is a priority for management and staff.</p>
<p>And, while overall appearance matters, it’s impossible to see disinfection. So, it’s best to ask the staff questions. How frequently are housekeeping services provided? What protocols and training are in place to ensure housekeepers maintain high standards for both cleaning and disinfection? These questions are important as 62% of all confirmed Norovirus outbreaks occur in senior living communities.</p>
<p>Finally, we recommend observing whether caretakers wash or sanitize their hands between rooms. Proper hand hygiene is an indication of the community’s cleanliness standards, as the cycle of infection can start when dirty hands touch people or previously disinfected surfaces.</p>
<p>Boomer: Along with cleanliness, safety is a top concern when considering a senior living community. What should we look for in areas of safety?</p>
<p>Larson: While there are many factors of safety in a senior living community, the areas that Ecolab focuses on are infection prevention and food safety.</p>
<p>Concerning infection prevention, we recommend asking questions about housekeeping protocols, training, frequency, products used and inspections. Effective cleaning and sanitizing are extremely important in a senior living community due to potentially-compromised immune systems. If a space isn’t clean, it isn’t safe.</p>
<p>Related to food safety, we know that once contracted, foodborne illness is six times more likely to prove fatal for someone 65+ as compared to adults aged 20-59. For this reason, have a conversation with the chef or food and beverage director to ask about the community’s safe food practices, as well as training and procedures for kitchen cleanliness and sanitation.</p>
<p>Boomer: What should we look for with regards to the quality of food and dining options?</p>
<p>Larson: What our survey showed is that senior living communities today are expected to offer fresh, healthy foods along with convenience. In fact, 85% of respondents ranked quality and variety of food as important. More than half expect to have vegan or vegetarian items, while 43% want gluten-free options.</p>
<p>Boomer: How do baby boomers envision themselves as recipients of long-term care in the future?</p>
<p>Larson: According to our research, most (66%) baby boomers said they would likely consider a senior living community for themselves in the future. Interestingly, they expect to do so when they need assistance, rather than choosing to move into a place that enables independent living without the burdens of everyday tasks.</p>
<p>This implies that senior living communities need to find ways to differentiate independent and assisted living from nursing care, and increase awareness about the opportunity to maintain a vibrant lifestyle in post-retirement years.</p> | true | 0 | making decision move loved one longterm care facility never easy continue reading however decision made another challenge awaits finding right facility figuring finance care many baby boomers report hard time evaluating identifying appropriate longterm care facilities aging family members boomers unique position search since know wont long might need longterm care latest survey anderson robbins research fielded behalf ecolab americans older 40 involved considering selecting senior living housing someone know recently shows boomers high standards prospective facilities seeking clean safe healthy communities chance speak leah larson director longterm care marketing ecolabs institutional business discuss findings questions boomers need ask assessing longterm care facilities say boomer many seniors focused living vibrant life expectations amenities services want communities advertisement larson research indicates one size fit comes selecting senior living community answers factors important expectations services amenities varied depending upon whether respondent making decision loved one residents comfortable living spaces ranked no1 followed services amenities safe layout apartment room loved ones ranked caring staff top list regardless role respondent asked importance services amenities extras really mattered many 82 said frequency cleaninglaundry services priority along inhouse exercise recreational activities 72 access inroom wifi 43 expectations include food dining options reminiscent hotel inroom delivery coffee shop bakeryfresh baked goods fresh salad bar 20expect access onsite bar pub boomer survey showed ensuring cleanliness community paramount evaluating different facilities boomers look visiting communities ensure cleanliness larson research confirmed intuitively know true first impressions count especially comes cleanliness nearly respondents 93 said cleanliness community important factor decisionmaking process women twice likely men say cleanliness top priority communitys overall appearance serve indicator well managed maintained décor attractive home like community free odors appropriately heatedcooled visibly soiled walls carpeting furniture answers questions help determine cleanliness priority management staff overall appearance matters impossible see disinfection best ask staff questions frequently housekeeping services provided protocols training place ensure housekeepers maintain high standards cleaning disinfection questions important 62 confirmed norovirus outbreaks occur senior living communities finally recommend observing whether caretakers wash sanitize hands rooms proper hand hygiene indication communitys cleanliness standards cycle infection start dirty hands touch people previously disinfected surfaces boomer along cleanliness safety top concern considering senior living community look areas safety larson many factors safety senior living community areas ecolab focuses infection prevention food safety concerning infection prevention recommend asking questions housekeeping protocols training frequency products used inspections effective cleaning sanitizing extremely important senior living community due potentiallycompromised immune systems space isnt clean isnt safe related food safety know contracted foodborne illness six times likely prove fatal someone 65 compared adults aged 2059 reason conversation chef food beverage director ask communitys safe food practices well training procedures kitchen cleanliness sanitation boomer look regards quality food dining options larson survey showed senior living communities today expected offer fresh healthy foods along convenience fact 85 respondents ranked quality variety food important half expect vegan vegetarian items 43 want glutenfree options boomer baby boomers envision recipients longterm care future larson according research 66 baby boomers said would likely consider senior living community future interestingly expect need assistance rather choosing move place enables independent living without burdens everyday tasks implies senior living communities need find ways differentiate independent assisted living nursing care increase awareness opportunity maintain vibrant lifestyle postretirement years | 536 |
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<p>Image source: SeaWorld Entertainment.</p>
<p>Continue Reading Below</p>
<p>SeaWorld Entertainment (NYSE: SEAS)rocked investors last week after announcing that it wouldn't just be winding down killer whale shows in San Diego next year. The stock's once beefy dividend is also <a href="http://www.fool.com/investing/2016/09/20/seaworld-ends-dividend-breeding-program-too.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">going away Opens a New Window.</a> in 2017. However, SeaWorld is living up to its commitment to spend at least some of the money that it will be saving in the yield-nixing move on the improvement of its parks, announcing roughly $175 million in new rides and attractions across its parks in time for next summer's peak travel season.</p>
<p>There's also an intriguing new type of annual pass rolling out -- a potential game changer -- that larger rivals Disney (NYSE: DIS) and Comcast's (NASDAQ: CMCSA) Universal may want to consider emulating. SeaWorld is testing what it's calling a Transferable Pass.</p>
<p>True to its name, the new annual pass can be transferred to anyone. There are more than a few caveats. It must be purchased at the same time as a regular annual pass, and that "host" must accompany whoever is using the transferable pass. The flexible pass also costs $40 more a year. It's eligible for most of the typical benefits associated with regular annual passes including free parking and 10% discounts on food and merchandise.</p>
<p>SeaWorld is only offering the new pass in Orlando and at its smaller Sesame Place park in Pennsylvania. If it's a hit, one can expect it to make its way elsewhere.</p>
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<p>Image source: SeaWorld Entertainment.</p>
<p>SeaWorld is in a funk. The chain posted back-to-back 4% declines in attendance in 2013 and 2014. The rest of the country's theme parks and regional amusement parks grew in that time, so the shortfall had been widely credited to the Blackfish documentary that skewered the practice of keeping orcas in captivity. Attendance finally turned slightly positive in 2015, and guest counts outside of its Florida parks have continued to move higher through the first half of 2016.</p>
<p>It's a different story in the Sunshine State, where its most popular park in terms of attendance -- SeaWorld Orlando -- is struggling. It's not alone. Disney World has also seen its guest counts tick lower so far in 2016. Comcast's Universal Orlando resort has been a shining star in recent years, but even Comcast is seeing top-line growth decelerate at its U.S. theme parks.</p>
<p>The rocky situation in Central Florida is partly the result of a sharp drop off in Brazilian tourists as the Latin American country goes through some socioeconomic struggles. SeaWorld claims that nearly half of its shortfall this year can be attributed to the sharp decline in visitors from Brazil. Other likely factors include stormy weather, Zika virus fears, and admission price hikes at Disney World and Comcast's Universal Orlando.</p>
<p>SeaWorld knows that it needs to do a better job of courting locals in Florida, especially at a time when attracting foreigners is out of its control. SeaWorld Orlando opened a passholder lounge with access to complimentary soft drinks earlier this year, and a new lounge is going up at its Aquatica sister water park. Now we get the transferable pass, a genius offering the more you think about it.</p>
<p>SeaWorld is trying to pivot away from its signature killer whale shows. Its original San Diego park is updating its show to be more educational, based on natural orca behavior instead of having to leap out of the water, or take trainers around the tank. It'll be more like a documentary. Some activists won't be pleased until the orcas are no longer confined to these relatively tight quarters, but at least the performances that Blackfish argues were mentally taxing on the killer whales are winding down.</p>
<p>The slate of new attractions that $175 million will buy also hints at the brand's repositioning. A new coaster at SeaWorld San Antonio is themed to a sea rescue, with the coaster cars fashioned as jet skis. SeaWorld Orlando's Kraken coaster will get a virtual-reality update to immerse guests in the lore.</p>
<p>This is where the new annual pass steps in. Guests accompanying host annual passholders may not have been to SeaWorld Orlando since it has added a couple of world-class roller coasters. They may not have been to Aquatica at all. Exposing them to what the Orlando parks are now may convert them into named passholders.</p>
<p>The new pass also has to be appetizing to single serial daters, or enterprising theme-park buffs who will offer a pal a day at SeaWorld Orlando or Aquatica as long as the guests springs for food and drinks. If successful, this pass will be about exposure. It will turn SeaWorld Entertainment's biggest challenge into its biggest opportunity just as it's taking baby steps to court less controversy.</p>
<p>Disney and Comcast aren't under the same black cloud of notoriety as SeaWorld these days, but they could both use an uptick in guests. SeaWorld may be on to something with this ambassadorship move. Its larger rivals may want to pay attention.</p>
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<p><a href="http://my.fool.com/profile/TMFBreakerRick/info.aspx" type="external">Rick Munarriz Opens a New Window.</a> owns shares of SeaWorld Entertainment and 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=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 seaworld entertainment continue reading seaworld entertainment nyse seasrocked investors last week announcing wouldnt winding killer whale shows san diego next year stocks beefy dividend also going away opens new window 2017 however seaworld living commitment spend least money saving yieldnixing move improvement parks announcing roughly 175 million new rides attractions across parks time next summers peak travel season theres also intriguing new type annual pass rolling potential game changer larger rivals disney nyse dis comcasts nasdaq cmcsa universal may want consider emulating seaworld testing calling transferable pass true name new annual pass transferred anyone caveats must purchased time regular annual pass host must accompany whoever using transferable pass flexible pass also costs 40 year eligible typical benefits associated regular annual passes including free parking 10 discounts food merchandise seaworld offering new pass orlando smaller sesame place park pennsylvania hit one expect make way elsewhere advertisement image source seaworld entertainment seaworld funk chain posted backtoback 4 declines attendance 2013 2014 rest countrys theme parks regional amusement parks grew time shortfall widely credited blackfish documentary skewered practice keeping orcas captivity attendance finally turned slightly positive 2015 guest counts outside florida parks continued move higher first half 2016 different story sunshine state popular park terms attendance seaworld orlando struggling alone disney world also seen guest counts tick lower far 2016 comcasts universal orlando resort shining star recent years even comcast seeing topline growth decelerate us theme parks rocky situation central florida partly result sharp drop brazilian tourists latin american country goes socioeconomic struggles seaworld claims nearly half shortfall year attributed sharp decline visitors brazil likely factors include stormy weather zika virus fears admission price hikes disney world comcasts universal orlando seaworld knows needs better job courting locals florida especially time attracting foreigners control seaworld orlando opened passholder lounge access complimentary soft drinks earlier year new lounge going aquatica sister water park get transferable pass genius offering think seaworld trying pivot away signature killer whale shows original san diego park updating show educational based natural orca behavior instead leap water take trainers around tank itll like documentary activists wont pleased orcas longer confined relatively tight quarters least performances blackfish argues mentally taxing killer whales winding slate new attractions 175 million buy also hints brands repositioning new coaster seaworld san antonio themed sea rescue coaster cars fashioned jet skis seaworld orlandos kraken coaster get virtualreality update immerse guests lore new annual pass steps guests accompanying host annual passholders may seaworld orlando since added couple worldclass roller coasters may aquatica exposing orlando parks may convert named passholders new pass also appetizing single serial daters enterprising themepark buffs offer pal day seaworld orlando aquatica long guests springs food drinks successful pass exposure turn seaworld entertainments biggest challenge biggest opportunity taking baby steps court less controversy disney comcast arent black cloud notoriety seaworld days could use uptick guests seaworld may something ambassadorship move larger rivals may want pay attention 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 rick munarriz opens new window owns shares seaworld entertainment 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 | 577 |
<p>FOX Business: The Power to Prosper</p>
<p>U.S. equities made a broad move higher on Wednesday, the first trading day of the second half of the year, and the second-straight day of gains. Investors digested developments out of Greece, and a flurry of economic data ahead of <a href="" type="internal">Thursday's June jobs report</a>.</p>
<p>Continue Reading Below</p>
<p>The Dow Jones Industrial Average rose 138 points, or 0.79% to 17757. The S&amp;P 500 gained 14 points, or 0.69% to 2077, while the Nasdaq added 26 points, or 0.53% to 5013.</p>
<p>Financials led nine of ten S&amp;P 500 sectors to end the session in the green. Energy was the laggard, declining 1.3% for the day.</p>
<p>Today’s Markets</p>
<p>Wall Street was propelled higher Wednesday on hopes Greece will soon come to an agreement with its international creditors. However, the broader averages stepped back from session highs after comments from Greek Prime Minister Alexis Tsipras who, in a press conference, said the nation will move ahead with its scheduled referendum on Sunday.</p>
<p>Tsipras urged the Greek people to vote ‘no’, but said such a vote will not be an endorsement for Greece to exit the euro, but rather allow the country to negotiate better terms with its international creditors.</p>
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<p>Following a letter sent by Tsipras to European leaders seeking a new deal, officials there regarded the terms as insufficient to bring them back to the negotiating table before Sunday’s referendum.</p>
<p>For U.S. stocks, Bob Doll, senior portfolio manager and chief equity strategist at Nuveen Asset Management, said in the short-term, focus is all about Greece.</p>
<p>“I’m hoping that this is the beginning of the end in that the Greek government is saying they’ll go along with things. I think most of us thought it would be wrapped up before the events of the last three days, though,” he said. “Now Greece is backing off again – but I suspect they’ll come to some sort of agreement that will find the band-aids necessary to get to the next crisis. And there will be a next crisis.”</p>
<p>Despite the rapid developments from the other side of the world, a lot of the focus in U.S. markets was on the economy and the upcoming June jobs report on tap for Thursday – a result of the shortened week from the July Fourth holiday.</p>
<p>“It’s been an emotional roller coaster,” he said. “One day there’s red all over the tape, and the next day there’s green on potential good news. Underlying all of that is a U.S. economy that’s slowly getting better and that’s supportive of higher prices [in the market],” Doll said.</p>
<p>He added in addition to Greece and economic data, the flurry in deal activity also adds to the optimism pushing markets higher over the intermediate term.</p>
<p>Jeff Kravetz, regional investment director for U.S. Bank Wealth Management, agreed with Doll and said though the action unfolding in Greece is a likely driver in the near-term for the markets, it won’t de-rail the positive long-term momentum for the U.S. economy and stock markets.</p>
<p>“We believe the second half could be very good for stocks in the U.S. because of better economic data,” he said. “Energy markets should be helpful for consumers. We don’t see energy spiking back up just because there’s so much oversupply, and the fact that global demand is fairly weak.”</p>
<p>On the data front Wednesday, a report from payroll processor ADP showed <a href="" type="internal">private-sector employment notched its biggest gain since December</a>, which could be a welcome sign for the Federal Reserve as it continues to closely monitor data before it makes a decision to begin raising interest rates from historic lows. Private employers added 237,000 jobs for the month, a bigger gain than the 218,000 jobs economists expected.</p>
<p>Also on the jobs front, a report from Challenger, Gray &amp; Christmas showed <a href="" type="internal">mid-year job cuts reached the highest level since 2010.</a> According to the report, over the first half of the year, employers announced 287,672 job cuts, a 17% increase from the same period a year prior. The report also noted the biggest number of cuts, which totaled 86,978, came as a result of restructuring, while 69,582 of the layoffs came from lower oil prices.</p>
<p>The Institute for Supply Management's <a href="" type="internal">gauge of manufacturing activity in the U.S. rose</a> to 53.5 in June from 52.8 in May. The reading came slightly above Wall Street expectations for an increase to 53.1, and matched the best reading so far this year. Readings above 50 point to expansion while those below indicate contraction.</p>
<p>In corporate news, property and casualty insurer Ace ( <a href="" type="internal">ACE</a>) agreed to buy rival Chubb ( <a href="" type="internal">CB</a>) in a <a href="" type="internal">$28.3 billion cash-and-stock deal.</a> The acquisition is one of the biggest announced deals of the year, and the companies expect the transaction to close in the first quarter of 2016.</p>
<p>On the earnings front, General Mills ( <a href="" type="internal">GIS</a>) <a href="" type="internal">reported profit of 30-cents a share on revenue of $4.3 billion</a>as the company continues to grapple with changing consumer taste and as it works to remove artificial flavoring and coloring from its line of cereal brands.</p>
<p><a href="" type="internal">June auto sales were also released Wednesday</a>and showed a move toward the best June in a decade thanks to consumer demand for more expensive sport-utility vehicles and trucks. Figures also showed the average transaction values continued to rise.</p>
<p>In commodities, <a href="" type="internal">U.S. crude oil prices settled 4.22% lower,</a> falling to $56.96 per barrel as inventory data weighed on sentiment. The settle was the lowest since April 22 and the biggest decline since April 8. Meanwhile Brent crude prices fell 2.36% to $62.09 per barrel. Gold also declined 0.26% to $1,168 per troy ounce.</p>
<p>Overseas markets also saw a bounce on Wednesday amid optimism over a Greek debt deal. The Euro Stoxx 50, which tracks large-cap stocks in the eurozone, surged 2.10% to 3496. Meanwhile, the German Dax jumped 2.15% to 11180, the French CAC 40 jumped 1.94% to 4883, and the UK’s FTSE 100 rose 1.24% to 6601.</p>
<p>In Asia, the Shanghai Composite, which fell into bear-market territory this week, dropped 5.23% to 4053. Hong Kong’s Hang Seng&#160; rose 1.79% to 8058, while Japan’s Nikkei saw a 0.46% tick higher to 20329.</p>
<p>In currencies, the euro fell 0.69% against the U.S. dollar.</p> | true | 0 | fox business power prosper us equities made broad move higher wednesday first trading day second half year secondstraight day gains investors digested developments greece flurry economic data ahead thursdays june jobs report continue reading dow jones industrial average rose 138 points 079 17757 sampp 500 gained 14 points 069 2077 nasdaq added 26 points 053 5013 financials led nine ten sampp 500 sectors end session green energy laggard declining 13 day todays markets wall street propelled higher wednesday hopes greece soon come agreement international creditors however broader averages stepped back session highs comments greek prime minister alexis tsipras press conference said nation move ahead scheduled referendum sunday tsipras urged greek people vote said vote endorsement greece exit euro rather allow country negotiate better terms international creditors advertisement following letter sent tsipras european leaders seeking new deal officials regarded terms insufficient bring back negotiating table sundays referendum us stocks bob doll senior portfolio manager chief equity strategist nuveen asset management said shortterm focus greece im hoping beginning end greek government saying theyll go along things think us thought would wrapped events last three days though said greece backing suspect theyll come sort agreement find bandaids necessary get next crisis next crisis despite rapid developments side world lot focus us markets economy upcoming june jobs report tap thursday result shortened week july fourth holiday emotional roller coaster said one day theres red tape next day theres green potential good news underlying us economy thats slowly getting better thats supportive higher prices market doll said added addition greece economic data flurry deal activity also adds optimism pushing markets higher intermediate term jeff kravetz regional investment director us bank wealth management agreed doll said though action unfolding greece likely driver nearterm markets wont derail positive longterm momentum us economy stock markets believe second half could good stocks us better economic data said energy markets helpful consumers dont see energy spiking back theres much oversupply fact global demand fairly weak data front wednesday report payroll processor adp showed privatesector employment notched biggest gain since december could welcome sign federal reserve continues closely monitor data makes decision begin raising interest rates historic lows private employers added 237000 jobs month bigger gain 218000 jobs economists expected also jobs front report challenger gray amp christmas showed midyear job cuts reached highest level since 2010 according report first half year employers announced 287672 job cuts 17 increase period year prior report also noted biggest number cuts totaled 86978 came result restructuring 69582 layoffs came lower oil prices institute supply managements gauge manufacturing activity us rose 535 june 528 may reading came slightly wall street expectations increase 531 matched best reading far year readings 50 point expansion indicate contraction corporate news property casualty insurer ace ace agreed buy rival chubb cb 283 billion cashandstock deal acquisition one biggest announced deals year companies expect transaction close first quarter 2016 earnings front general mills gis reported profit 30cents share revenue 43 billionas company continues grapple changing consumer taste works remove artificial flavoring coloring line cereal brands june auto sales also released wednesdayand showed move toward best june decade thanks consumer demand expensive sportutility vehicles trucks figures also showed average transaction values continued rise commodities us crude oil prices settled 422 lower falling 5696 per barrel inventory data weighed sentiment settle lowest since april 22 biggest decline since april 8 meanwhile brent crude prices fell 236 6209 per barrel gold also declined 026 1168 per troy ounce overseas markets also saw bounce wednesday amid optimism greek debt deal euro stoxx 50 tracks largecap stocks eurozone surged 210 3496 meanwhile german dax jumped 215 11180 french cac 40 jumped 194 4883 uks ftse 100 rose 124 6601 asia shanghai composite fell bearmarket territory week dropped 523 4053 hong kongs hang seng160 rose 179 8058 japans nikkei saw 046 tick higher 20329 currencies euro fell 069 us dollar | 643 |
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<p>Image source: Getty Images.</p>
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<p>Amazon.com (NASDAQ: AMZN) is one of the greatest success stories in business history. The company has come to dominate the retail industry and is rapidly disrupting many other areas of the global economy.</p>
<p>Yet with its stock up several hundred times in value since its 1997 IPO, you'd be excused for thinking Amazon's days of turbocharged growth are long gone. There are, however, multiple signals that tremendous gains still lie ahead for the e-commerce titan. Here are seven of the most compelling signs that Amazon's best days may still be ahead.</p>
<p>Even after two decades of torrid growth, the rise of e-commerce is still in its early innings. Online sales comprise less than 10% of all U.S. retail sales, and research firm eMarketer estimates that retail e-commerce sales will increase to more than $4 trillion in 2020, up from about $1.5 trillion in 2015. With tens of millions of new people gaining access to the internet every year, e-commerce appears set to keep growing at a rapid pace for at least another decade, and likely much longer. Amazon stands to benefit from this megatrend, perhaps more than any other company.</p>
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<p>There's a reason Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google describes Amazon as its <a href="http://www.fool.com/investing/general/2014/10/19/youll-never-guess-who-google-considers-its-biggest.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">No. 1 competitor</a>: A steadily increasing number of online shoppers start their searches on Amazon.com. In fact, a recent <a href="http://go.bloomreach.com/rs/243-XLW-551/images/state-of-amazon-2016-report.pdf" type="external">report</a> by marketing firm BloomReach shows that 55% of consumers begin their searches on the retail juggernaut's website when shopping online, up from 44% in 2015. During that time, the percentage of customers who began their product hunts on search engines declined to 28% from 34%. And the share of shoppers whose searches originated at all other retailers' sites combined fell from 21% to only 16%. That's a powerful trend, and a testament to Amazon's large and increasing prominence in the minds of consumers.</p>
<p>One of the main drivers of Amazon's increasing mindshare among online shoppers is its Fulfilled By Amazon program. The FBA program lets third-party merchants use Amazon's online marketplace and distribution infrastructure to sell their goods. This greatly expands the number of product listings available on Amazon.com, thereby offering more value to consumers. And as more people come to Amazon for their online shopping needs, more product creators and merchants flock to Amazon's FBA platform to sell their wares. This virtuous cycle helps to create powerful network effects for Amazon, whereby each additional consumer and merchant that joins the platform creates more value for existing members of the network -- a cycle that should only <a href="http://www.fool.com/investing/2016/11/27/amazons-most-overlooked-competitive-advantage.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">continue to grow stronger</a> in the years ahead.</p>
<p>Another powerful driver of Amazon's success is its Prime membership program. Research firm Consumer Intelligence Research Partners <a href="http://www.huffingtonpost.com/michael-r-levin/amazon-prime-grows-in-the_b_12789582.html" type="external">estimates</a> that the average Prime customer spends $1,200 per year on Amazon, compared to about $600 for non-Prime customers. And while management has yet to disclose the number of Amazon Prime subscribers, CIRP estimates that the number of U.S. Prime members surged 38% year over year to 65 million in the third quarter. With Amazon <a href="http://www.fool.com/investing/2016/11/19/amazoncom-incs-cfo-gives-a-crash-course-on-spendin.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">investing heavily</a> to expand Prime's content and service offerings, it should continue to enjoy rising Prime adoption, which, in turn, should fuel further increases in sales and profit.</p>
<p>The magnitude of Amazon's dominance may be best reflected in the misfortunes of its rivals. The business graveyard is littered with brick-and-mortar retailers that could not withstand the Amazon-led onslaught of e-commerce. Recent examples include RadioShack and Sports Authority, and many analysts believe venerable Sears Holdingsmay soon <a href="http://www.fool.com/investing/2016/12/23/after-20-straight-quarterly-losses-sears-holdings.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">join the ranks of the deceased</a>. Perhaps most telling of all are the recent stock price swoons among even some of the most respected traditional retailers.</p>
<p><a href="http://ycharts.com/companies/AMZN" type="external">AMZN</a> data by <a href="http://ycharts.com" type="external">YCharts</a></p>
<p>The message is clear: In a world <a href="http://www.fool.com/investing/general/2016/01/01/amazon-is-dominating-the-entire-retail-industry.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">dominated by Amazon</a>, many other retailers are in a struggle for survival. And as its competitors fade away, Amazon stands to claim the spoils.</p>
<p>Incredibly, Amazon has another business that may prove to be even more valuable than its core online retail operations. Amazon Web Services has quickly become the dominant provider of scalable cloud computing services, with an estimated 31% share of the global cloud infrastructure market, <a href="https://www.srgresearch.com/articles/aws-remains-dominant-despite-microsoft-and-google-growth-surges" type="external">according</a> to Synergy Research Group. AWS has a massive market opportunity -- so large, in fact, that Amazon's management believes it could eventually rival the company's retail operations in size. The business is already making progress in that regard, with AWS' revenue surging 55% year over year to $3.2 billion in the third quarter.AWS is also highly profitable, with Q3 operating margins of more than 26%. Best of all, AWS has just barely scratched the surface of its potential, and it should continue to turbocharge Amazon's revenue and earnings growth for many years to come.</p>
<p>Most businesses can only dream of having growth drivers as powerful as AWS and Amazon's online retail operations. Yet even with these potent catalysts well in tow, CEO Jeff Bezos refuses to allow the company he founded to rest on its laurels. Instead, he tenaciously demands that Amazon continue to push the envelope. This focus on innovation has Amazon well positioned to disrupt multiple sectors, such as <a href="http://www.fool.com/investing/2016/12/08/amazons-first-step-into-grocery-retail-is-brillian.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">groceries</a>, <a href="http://www.fool.com/investing/general/2016/02/01/amazon-is-winning-the-smart-home-race-and-nobody-i.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">home automation</a>, and even <a href="http://www.fool.com/investing/2016/12/20/amazoncom-has-officially-begun-drone-delivery.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">package delivery</a> via its drone initiative.</p>
<p>Entrance into these massive industries expands Amazon's total addressable market opportunity by hundreds of billions of dollars. And as Amazon has proven time and again, when it enters a new market, it is not to be taken lightly. As Bezos' juggernaut relentlessly expands its beachheads in these areas in the coming years, Amazon should continue to reward its investors with market-crushing gains.</p>
<p>10 stocks we like better than Amazon.com 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=47267d16-5c4a-4f6b-84ce-61afbf845dc9&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks</a> for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=47267d16-5c4a-4f6b-84ce-61afbf845dc9&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of Nov. 7, 2016</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/TMFGuardian/info.aspx" type="external">Joe Tenebruso</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Amazon.com. 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</a>.</p> | true | 0 | image source getty images continue reading amazoncom nasdaq amzn one greatest success stories business history company come dominate retail industry rapidly disrupting many areas global economy yet stock several hundred times value since 1997 ipo youd excused thinking amazons days turbocharged growth long gone however multiple signals tremendous gains still lie ahead ecommerce titan seven compelling signs amazons best days may still ahead even two decades torrid growth rise ecommerce still early innings online sales comprise less 10 us retail sales research firm emarketer estimates retail ecommerce sales increase 4 trillion 2020 15 trillion 2015 tens millions new people gaining access internet every year ecommerce appears set keep growing rapid pace least another decade likely much longer amazon stands benefit megatrend perhaps company advertisement theres reason alphabet nasdaq goog nasdaq googl subsidiary google describes amazon 1 competitor steadily increasing number online shoppers start searches amazoncom fact recent report marketing firm bloomreach shows 55 consumers begin searches retail juggernauts website shopping online 44 2015 time percentage customers began product hunts search engines declined 28 34 share shoppers whose searches originated retailers sites combined fell 21 16 thats powerful trend testament amazons large increasing prominence minds consumers one main drivers amazons increasing mindshare among online shoppers fulfilled amazon program fba program lets thirdparty merchants use amazons online marketplace distribution infrastructure sell goods greatly expands number product listings available amazoncom thereby offering value consumers people come amazon online shopping needs product creators merchants flock amazons fba platform sell wares virtuous cycle helps create powerful network effects amazon whereby additional consumer merchant joins platform creates value existing members network cycle continue grow stronger years ahead another powerful driver amazons success prime membership program research firm consumer intelligence research partners estimates average prime customer spends 1200 per year amazon compared 600 nonprime customers management yet disclose number amazon prime subscribers cirp estimates number us prime members surged 38 year year 65 million third quarter amazon investing heavily expand primes content service offerings continue enjoy rising prime adoption turn fuel increases sales profit magnitude amazons dominance may best reflected misfortunes rivals business graveyard littered brickandmortar retailers could withstand amazonled onslaught ecommerce recent examples include radioshack sports authority many analysts believe venerable sears holdingsmay soon join ranks deceased perhaps telling recent stock price swoons among even respected traditional retailers amzn data ycharts message clear world dominated amazon many retailers struggle survival competitors fade away amazon stands claim spoils incredibly amazon another business may prove even valuable core online retail operations amazon web services quickly become dominant provider scalable cloud computing services estimated 31 share global cloud infrastructure market according synergy research group aws massive market opportunity large fact amazons management believes could eventually rival companys retail operations size business already making progress regard aws revenue surging 55 year year 32 billion third quarteraws also highly profitable q3 operating margins 26 best aws barely scratched surface potential continue turbocharge amazons revenue earnings growth many years come businesses dream growth drivers powerful aws amazons online retail operations yet even potent catalysts well tow ceo jeff bezos refuses allow company founded rest laurels instead tenaciously demands amazon continue push envelope focus innovation amazon well positioned disrupt multiple sectors groceries home automation even package delivery via drone initiative entrance massive industries expands amazons total addressable market opportunity hundreds billions dollars amazon proven time enters new market taken lightly bezos juggernaut relentlessly expands beachheads areas coming years amazon continue reward investors marketcrushing gains 10 stocks like better amazoncom 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 amazoncom wasnt one thats right think 10 stocks even better buys click learn picks stock advisor returns nov 7 2016 suzanne frey executive alphabet member motley fools board directors joe tenebruso position stocks mentioned motley fool owns shares recommends alphabet shares alphabet c shares amazoncom motley fool disclosure policy | 653 |
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<p>Despite all of our differences, one characteristic of our nation that’s as American as apple pie is our generosity. We are simply--as individuals as well as collectively--a nation of givers.</p>
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<p>Whether the cause is far away (the recent typhoon in the Philippines, vaccines for children in Africa) or close to home (Hurricane Sandy, building homeless shelters), when Americans see a need, our tendency is to band together, pitch in and try to make things better.</p>
<p>“Americans have always been philanthropic, it’s part of who we are as a society. We train our kids early on to help others,” says Eileen Heisman, president and CEO of National Philanthropic Trust, a non-profit that gathers research on charitable organizations.</p>
<p>Foreigners tend to see this characteristic as odd. They often consider it the government’s responsibility to feed the needy, provide disaster aid, buy musical instruments for schools, build hospitals, care for abandoned animals.</p>
<p>But Americans are inclined to take things into their own hands, whether it’s through existing structures such as religious groups or service clubs or, if need be, by creating an organization from the ground up. Heisman points out that private citizens, not the government, created the American Heart Association, the University of Pennsylvania, most organizations that support the arts, the first hospital in the United States and many other non-profits that have become household names.</p>
<p>One of the most successful startups in recent years, The Susan B. Komen Foundation, was literally started by one women who was determined to find a cure for breast cancer so that others would not die from it like her sister did.</p>
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<p>The single most common way we support the causes near and dear to our hearts is by making financial donations--whether it's writing a check or giving cash. It’s fast, simple and provides an immediate tax write off. While helpful, there is a downside: the cash infusion is short lived. Now is about the time of the year when most people dig into their wallets to donate to select charities. But a relatively new vehicle for charitable giving is catching on in a big way: the donor advised fund (DAF) and it’s easy to understand why:</p>
<p>1. With as little as $5,000, you can open an account with one of the many organizations that sponsor a DAF. The most common contributions are cash and appreciated securities, but some donor-advised funds will accept antiques, art, precious metals and other valuables. (If you have unique assets to donate, check first.)</p>
<p>2. You determine how your contribution is invested by selecting from an array of mutual funds.</p>
<p>3. Since a donor-advised fund is, itself, a registered charity, you get an immediate tax deduction. (Heisman points out that you actually “get a better tax deduction than you would get with a private foundation.”)</p>
<p>4. You can instruct the DAF to immediately make a donation from your account to the qualified charity/charities of your choice. On the other hand, you can choose to wait and make “grants” at a future date. (Unlike a private foundation, there is no annually required minimal bequest.) As your investments increase in value, you have more funds to donate.</p>
<p>5. You can allow others- such as adult children- to also authorize distributions. In fact, a DAF can be passed from generation to generation, appointing others to take your place in managing and distributing the DAF account after your gone. In this way, it becomes a kind of family foundation without the need for lawyers and annual tax filings.</p>
<p>In Heisman’s words, “You can open a donor advised fund in one day, send a check or transfer in securities, and in less than a week you have a… charitable giving vehicle that you can pass on to your kids.”</p>
<p>This fund de-constructs the charitable giving process: You get a tax deduction for the year you make your contribution, but unlike traditional “checkbook philanthropy,” you’re not forced to decide which causes you wish to support at the time you make your donation. This gives you more time to investigate various organizations before making your decision.</p>
<p>Although donor advised funds have existed since the 1930s, they were sponsored by small, community-based non-profits. DAFs as we know them today, took off roughly 20 years ago when the first national fund was created by Fidelity Investments. Increased &#160;advertising has helped generate greater public awareness of DAFs, and there are now dozens of donor advised funds sponsored by financial institutions. This, in turn, has led to a surge in assets.</p>
<p>According to National Philanthropic Trust, as of the end of last year, there was more than $45 billion invested in DAFs- a gain of nearly 19% from 2011. Some of that was due to the rising stock market, which increased the value of the various mutual funds investing in DAF assets. But nearly a third of the increase came from new contributions, which hit a record high of $13.7 billion, something Heisman says was partly driven by fears that Congress was going to reduce the tax break for charitable donations.</p>
<p>As we once again prepare to enter the season of gross over-consumption, I’d like to propose we take a break in our buying frenzy and remember what this season is all about: giving thanks. Why not start a new family tradition by opening a donor-advised fund in your family’s name. As Thanksgiving dessert is being served, ask each guest- young and old- to nominate a charity and explain why s/he feels it is deserving of receiving a grant from the family DAF. Vote on it and authorize your DAF to disburse a contribution.</p>
<p>Repeat the process next year with an added element: a short report about how the family’s previous donation made a difference. Maybe you were able to buy the implements to enable a poor family to dig a well to get fresh water. Or, you provided care for three dogs in a no-kill shelter. Pass around photos of the tent you bought for tsunami victims. You get the idea. So will your kids and grandkids. Everyone wants to make a difference.</p>
<p>Don't have $5,000 to open a donor-advised fund? No worries. Remember that after Black Friday and Cyber Monday comes Giving Tuesday, which has gone global in just a year's time thanks to social media. With the click of your smartphone you can donate to thousands of charitable organizations around the world in just about any amount you want.</p>
<p>Looking for a unique gift for the person-who-has-everything? Consider the <a href="http://www.globalgiving.org/gifts/" type="external">Global Giving Gift Card Opens a New Window.</a>. &#160;You purchase the card (starting for a little as $10) and get the tax deduction. The recipient gets to choose which of his/her favorite charities receives the donation. As an added bonus, the cards are biodegradable. Or, you can simply send one electronically. &#160;You feel good. The individual who receives the card feels good. And so does the charity. It transforms one gift into three!</p>
<p>Best of all, in the midst of all the frenetic craziness of this season, every time you pause to give you get a small reminder of what is really important.</p> | true | 0 | despite differences one characteristic nation thats american apple pie generosity simplyas individuals well collectivelya nation givers continue reading whether cause far away recent typhoon philippines vaccines children africa close home hurricane sandy building homeless shelters americans see need tendency band together pitch try make things better americans always philanthropic part society train kids early help others says eileen heisman president ceo national philanthropic trust nonprofit gathers research charitable organizations foreigners tend see characteristic odd often consider governments responsibility feed needy provide disaster aid buy musical instruments schools build hospitals care abandoned animals americans inclined take things hands whether existing structures religious groups service clubs need creating organization ground heisman points private citizens government created american heart association university pennsylvania organizations support arts first hospital united states many nonprofits become household names one successful startups recent years susan b komen foundation literally started one women determined find cure breast cancer others would die like sister advertisement single common way support causes near dear hearts making financial donationswhether writing check giving cash fast simple provides immediate tax write helpful downside cash infusion short lived time year people dig wallets donate select charities relatively new vehicle charitable giving catching big way donor advised fund daf easy understand 1 little 5000 open account one many organizations sponsor daf common contributions cash appreciated securities donoradvised funds accept antiques art precious metals valuables unique assets donate check first 2 determine contribution invested selecting array mutual funds 3 since donoradvised fund registered charity get immediate tax deduction heisman points actually get better tax deduction would get private foundation 4 instruct daf immediately make donation account qualified charitycharities choice hand choose wait make grants future date unlike private foundation annually required minimal bequest investments increase value funds donate 5 allow others adult children also authorize distributions fact daf passed generation generation appointing others take place managing distributing daf account gone way becomes kind family foundation without need lawyers annual tax filings heismans words open donor advised fund one day send check transfer securities less week charitable giving vehicle pass kids fund deconstructs charitable giving process get tax deduction year make contribution unlike traditional checkbook philanthropy youre forced decide causes wish support time make donation gives time investigate various organizations making decision although donor advised funds existed since 1930s sponsored small communitybased nonprofits dafs know today took roughly 20 years ago first national fund created fidelity investments increased 160advertising helped generate greater public awareness dafs dozens donor advised funds sponsored financial institutions turn led surge assets according national philanthropic trust end last year 45 billion invested dafs gain nearly 19 2011 due rising stock market increased value various mutual funds investing daf assets nearly third increase came new contributions hit record high 137 billion something heisman says partly driven fears congress going reduce tax break charitable donations prepare enter season gross overconsumption id like propose take break buying frenzy remember season giving thanks start new family tradition opening donoradvised fund familys name thanksgiving dessert served ask guest young old nominate charity explain feels deserving receiving grant family daf vote authorize daf disburse contribution repeat process next year added element short report familys previous donation made difference maybe able buy implements enable poor family dig well get fresh water provided care three dogs nokill shelter pass around photos tent bought tsunami victims get idea kids grandkids everyone wants make difference dont 5000 open donoradvised fund worries remember black friday cyber monday comes giving tuesday gone global years time thanks social media click smartphone donate thousands charitable organizations around world amount want looking unique gift personwhohaseverything consider global giving gift card opens new window 160you purchase card starting little 10 get tax deduction recipient gets choose hisher favorite charities receives donation added bonus cards biodegradable simply send one electronically 160you feel good individual receives card feels good charity transforms one gift three best midst frenetic craziness season every time pause give get small reminder really important | 655 |
<p><a href="" type="internal" />In 1989 I was playing tennis with a college friend. Back in those days it was our tradition to have a few beers or maybe even smoke a little weed and spend hours on the courts. We <a href="" type="internal">weren’t contributing much to society</a>, or our future, but that is what we did.</p>
<p>On that day my friend confided in me that she was pregnant, again, and <a href="" type="internal">wanted to have an abortion</a>. She actually wanted to borrow money from me to do it. I couldn’t do that, even if I wanted to, which I did not.</p>
<p>However, I said very little. Rather than explain to her that I thought it was a bad decision, I simply explained to her that I didn’t have the money, and… Eventually she would do it.</p>
<p>A few months prior to that my best friend came to me with the same problem. I always had a problem with speaking up to him. He was a strong personality and I was more of a sidekick than an equal. I said little or nothing. He and his girlfriend eventually did it.</p>
<p>Many years later he would come to me in anger and ask me why I didn’t say something. He was wrought with guilt and he explained to me that when he needed “tough love” the most, I didn’t provide it.</p>
<p>I am and was guilty as charged. There are times that we should say something and we do not. Even as 19 and 20 year old kids we make decisions that will effect our lives, and the lives of those around us, forever.</p>
<p>We are quick to pass the buck and blame others. After all, I didn’t kill either of those babies…or did I? I certainly could have tried to stop it. But I didn’t care enough. I didn’t want the confrontation. In my sick mind a confrontation was not worth the life of a child at that time.</p>
<p>It wasn’t always like that…</p>
<p>Let me fast forward several months, to a time when I bumped into that same “tennis player” friend at a mall. We didn’t see each other much then. We had both dropped out of college and were <a href="" type="internal">societal dead weight</a>. I was convinced that I was going to make a million dollars as a salesman (which I would do many years later) and I am not sure what she was doing to be completely honest. We were no longer close. We had drifted apart.</p>
<p>I am not sure what inspired the conversation, but she actually wanted to show me some pictures. They were pictures of her FIRST son, which she had given up for adoption. He was with a very good family and you could tell that she was happy for that. She knew she had made the right decision.</p>
<p>Then she pulled out a letter and said, “Remember this?”</p>
<p>I told her that I did not. But then as she unfolded that letter and I saw my handwriting I knew very well what it was. It was a letter I had written to her some three years earlier. Even then I was always a guy who could put my feelings on paper much better than I could force them from my mouth.</p>
<p>The letter was my plea for her to not have an abortion. It was written in the fall of 1987. She carried that letter with her for unknown reasons but wanted me to know that she had held it and that it had inspired her in making the right decision with her first pregnancy.</p>
<p>I can’t tell you the exact contents of the letter but I distinctly remember offering to adopt the child myself and I remember telling her that abortion was “murder in cold blood.” I remember heated conversations with her and her boyfriend shortly after I wrote it and I remember Greg telling me, “Fine, if you want this baby you can have it.”</p>
<p>I suppose she held that letter to remind her that once upon a time someone cared enough about her to say something. And this was written by the same guy who had basically endorsed two abortions since, in the past year, by not saying a thing. To this day I wonder if her asking me for money was really a cry for a pep talk, so I would tell her again not to do it. She needed support and I didn’t recognize that. I wanted to hide and and avoid the confrontation. The fact that she still carried this “letter” was proof of that.</p>
<p>How quickly we change. I walked away from our brief conversation that day with a huge wake up call. I will always know that one of my greatest achievements in life was to help save a child. That young man is 26 now.</p>
<p>I also carried with me a huge lesson that hurt like hell. I let two babies die when the chances are very good that I could have saved them. And I let two friends down in the process. I was now part of the problem.</p>
<p>One of my worst character defects is that I do not like to confrontation. I will do anything I can to avoid it. Over 20 years later I find myself in a daily hot seat writing about politics, morality and human rights. It might surprise you to know that I have a really thin skin and I take criticism harder than most. A lot of times I can’t bring myself to read negative comments because they simply hit me too hard.</p>
<p>I am one of those people that wants everyone to like me. It’s not going to happen, but if I had my way I would climb back into my little shell and almost everyone would love me.</p>
<p>I can’t be that person anymore. When I am that person, as proven some 25 years earlier, people die. If I don’t open my mouth people will die. This is as true for you as it is for me.</p>
<p>It is when we say nothing that the world around us starts to crumble. People around us suffer from every form of broken heart that one could imagine, and more. They need to hear from you. They need to know that someone cares.</p>
<p>For the better part of 25 years, although I had my moments, I sat back and watched as the world crumbled around me.</p>
<p>I simply can’t do that anymore.</p>
<p>When we open our mouths, miracles will happen and things will change. I am not saying this is all about abortion. It is about everything happening in this country today. All of our problems go back to a breakdown of morality. Why are so many bad people populating the halls of government? Because a lot of bad people are electing them.</p>
<p>You can not worry about what everyone else does. You just have to get out there and try to effect the life of one person for the better. If we all did that then this country would reverse its course much quicker than you might think.</p>
<p>I am very tired this morning and it probably shows. I am sorry if this “letter” is not my best work but it is important nonetheless.</p>
<p>God put you on this earth to do HIS work. My life’s work would have been smoking pot and eating chips if I had my way, but look where that got us. I was not the only one doing that it would seem.</p>
<p>We can’t keep looking the other way. These are desperate times.</p>
<p>Rise up and do something.</p>
<p>We need you.</p>
<p />
<p /> | true | 0 | 1989 playing tennis college friend back days tradition beers maybe even smoke little weed spend hours courts werent contributing much society future day friend confided pregnant wanted abortion actually wanted borrow money couldnt even wanted however said little rather explain thought bad decision simply explained didnt money eventually would months prior best friend came problem always problem speaking strong personality sidekick equal said little nothing girlfriend eventually many years later would come anger ask didnt say something wrought guilt explained needed tough love didnt provide guilty charged times say something even 19 20 year old kids make decisions effect lives lives around us forever quick pass buck blame others didnt kill either babiesor certainly could tried stop didnt care enough didnt want confrontation sick mind confrontation worth life child time wasnt always like let fast forward several months time bumped tennis player friend mall didnt see much dropped college societal dead weight convinced going make million dollars salesman would many years later sure completely honest longer close drifted apart sure inspired conversation actually wanted show pictures pictures first son given adoption good family could tell happy knew made right decision pulled letter said remember told unfolded letter saw handwriting knew well letter written three years earlier even always guy could put feelings paper much better could force mouth letter plea abortion written fall 1987 carried letter unknown reasons wanted know held inspired making right decision first pregnancy cant tell exact contents letter distinctly remember offering adopt child remember telling abortion murder cold blood remember heated conversations boyfriend shortly wrote remember greg telling fine want baby suppose held letter remind upon time someone cared enough say something written guy basically endorsed two abortions since past year saying thing day wonder asking money really cry pep talk would tell needed support didnt recognize wanted hide avoid confrontation fact still carried letter proof quickly change walked away brief conversation day huge wake call always know one greatest achievements life help save child young man 26 also carried huge lesson hurt like hell let two babies die chances good could saved let two friends process part problem one worst character defects like confrontation anything avoid 20 years later find daily hot seat writing politics morality human rights might surprise know really thin skin take criticism harder lot times cant bring read negative comments simply hit hard one people wants everyone like going happen way would climb back little shell almost everyone would love cant person anymore person proven 25 years earlier people die dont open mouth people die true say nothing world around us starts crumble people around us suffer every form broken heart one could imagine need hear need know someone cares better part 25 years although moments sat back watched world crumbled around simply cant anymore open mouths miracles happen things change saying abortion everything happening country today problems go back breakdown morality many bad people populating halls government lot bad people electing worry everyone else get try effect life one person better country would reverse course much quicker might think tired morning probably shows sorry letter best work important nonetheless god put earth work lifes work would smoking pot eating chips way look got us one would seem cant keep looking way desperate times rise something need | 546 |
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<p>Artificial intelligence (AI) is a hot topic nowadays. Computer chips and clever programming can accelerate and improve an ever-growing numbers of tasks normally reserved for the intuitive thinking skills of human beings.</p>
<p>Continue Reading Below</p>
<p>The number of ways to invest in this unstoppable trend is also large and growing. Any technology specialist worth its salt is at least investigating the artificial intelligence space right now, either as a product for their clients or as back-end tools for their own use. Therefore, what follows is not an attempt to cover the entire universe of artificial intelligence stocks but just a handful of the most investable names in that market today. On that note, I'll take a look at Samsung (NASDAQOTH: SSNLF), salesforce.com (NYSE: CRM), and IBM (NYSE: IBM) through the lens of artificial intelligence.</p>
<p>Image source: Salesforce.</p>
<p>You know Salesforce as a maker of <a href="http://www.fool.com/knowledge-center/what-is-cloud-computing.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">cloud-based Opens a New Window.</a> tools for management of customer relationships. Most of the time, this business amounts to automating or at least streamlining repetitive tasks in the process of finding customers and closing sales. The company's innovative approach to a set of traditional business problems has rewarded investors with a market-crushing 660% return over the last decade.</p>
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<p>Now, the cloud computing veteran is taking the next logical step by building an artificial intelligence platform to analyze customer data. Salesforce Einstein was built out of several small acquisitions, bringing together their specialized tools under one unified umbrella. So Einstein takes the sales and marketing process, bakes in elements of machine learning, natural language processing, data analytics, relationship intelligence, and much more as a user-friendly all-in-one data management helper.</p>
<p>The platform was introduced last fall and rolled out to customers earlier this month. These are early days for Salesforce's artificial intelligence ambitions, but Einstein is designed to learn from experience and get better over time. The more data Einstein gets to process, the more sophisticated its results will become.</p>
<p>And so will Salesforce's overall efforts in this emerging market. If you're not buying in right now, make sure to at least keep an eye on Salesforce Einstein as the platform matures.</p>
<p>IBM Watson facing off against two elite human "Jeopardy!" players. Image source: IBM.</p>
<p>Big Blue is a veteran in the artificial intelligence market.</p>
<p>Way back in 1996, the company built a chess-playing supercomputer capable of challenging world champion Garry Kasparov. Kasparov won that first match but Deep Blue collected two draws and one outright win along the way.</p>
<p>The next year, Kasparov lost the rematch against an upgraded Deep Blue. Thus began a new era in the contest between man and machine, with IBM carrying the robotic banner.</p>
<p>Kasparov moved on to promote computer-assisted chess, conceding that he -- the best human chess player -- no longer could challenge the best computer systems. And computers have only improved since then, giving humans no chance to keep up. "Today you can buy a chess engine for your laptop that will beat Deep Blue quite easily," Kasparov said in a <a href="http://en.chessbase.com/post/kasparov-on-the-future-of-artificial-intelligence" type="external">podcast interview Opens a New Window.</a> with ChessBase last year.</p>
<p>Encouraged by this early success, IBM dug deeper into artificial intelligence with qualities of human-like intuition. In 2011, the IBM Watson system beat Jeopardy! champions Ken Jennings and Brad Rutter at their own game. That system was powered by analysis of 200 million documents, including the then-current full text of Wikipedia.</p>
<p>Now, the Watson system has become the linchpin of IBM's overall strategy. The company recently reorganized to create a reportable business segment focused on Watson's cognitive computing. That segment already accounts for more than 40% of Big Blue's annual sales and more than half of its operating profits.</p>
<p>Watson is promoted as a catch-all platform for data analysis and human-to-machine interaction. The system "can understand all forms of data, interact naturally with people, and learn and reason, at scale," according to IBM's marketing materials.</p>
<p>If a few hundred million documents were enough to beat Ken Jennings at Jeopardy!six years ago, the system has evolved much further -- with hand-curated access to the entire internet and tons of private training data along the way. If I had to pick an artificial intelligence tool to assist in a life-or-death situation, Watson would be it.</p>
<p>And IBM is already making big money from that market-defining advantage. The best is yet to come.</p>
<p>Galaxy S8 in Orchid Gray. Image source: Samsung.</p>
<p>Finally, the most obviously consumer-facing pick on this list comes from South Korea.</p>
<p>No, you probably don't think of Samsung as an authority on artificial intelligence -- yet. That's about to change, if the Koreans have their way.</p>
<p><a href="https://www.fool.com/investing/2017/03/29/is-samsungs-s8-an-iphone-killer.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">The Galaxy S8 smartphone flagship Opens a New Window.</a> is hot off the presses, and comes with Samsung's first try at an AI-powered digital assistant. The Bixby tool was built around technology from Viv, a $214 million acquisition in October of 2016 that brought in talent originally associated with Apple'sSiri assistant.</p>
<p>Like Watson and Einstein, Bixby knows how to communicate with humans using natural language instead of hand-picked key words. Samsung hopes to get its users accustomed to controlling their phones largely by voice, making on-screen keyboards irrelevant in the long run. Bixby has the artificial intelligence savvy that's needed to start moving in that direction.</p>
<p>Where existing digital assistants in the Siri mold tend to create a voice-driven bridge between the user and various online services, Bixby prefers to interface with the handset's internal operation. "Anything you can do with touch, you can do with voice," is the Samsung mantra here. The camera is also tightly integrated into Bixby, reaching for that elusive experience of augmented reality through your Samsung phone.</p>
<p>Bixby is a major talking point for the Galaxy S8, and Samsung hopes to make it a major selling point as well. The system may need to earn its wings by trial and error in real-world usage, but Samsung has the resources and motivation to make it work in the long run.</p>
<p>Samsung's Galaxy S phones have come a long way since a fairly low-key start in 2009. Expect Bixby to follow a similar trajectory, until it starts showing up in Samsung's TV sets and refrigerators. This is till the very early going of the whole artificial intelligence race.</p>
<p>10 stocks we like better than IBMWhen 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=d77f7805-2d2a-413a-9902-a0571d853e79&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 IBM 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/TMFZahrim/info.aspx" type="external">Anders Bylund Opens a New Window.</a> owns shares of IBM. The Motley Fool owns shares of and recommends AAPL. The Motley Fool has the following options: long January 2018 $90 calls on AAPL and short January 2018 $95 calls on AAPL. The Motley Fool recommends Salesforce.com. 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 | artificial intelligence ai hot topic nowadays computer chips clever programming accelerate improve evergrowing numbers tasks normally reserved intuitive thinking skills human beings continue reading number ways invest unstoppable trend also large growing technology specialist worth salt least investigating artificial intelligence space right either product clients backend tools use therefore follows attempt cover entire universe artificial intelligence stocks handful investable names market today note ill take look samsung nasdaqoth ssnlf salesforcecom nyse crm ibm nyse ibm lens artificial intelligence image source salesforce know salesforce maker cloudbased opens new window tools management customer relationships time business amounts automating least streamlining repetitive tasks process finding customers closing sales companys innovative approach set traditional business problems rewarded investors marketcrushing 660 return last decade advertisement cloud computing veteran taking next logical step building artificial intelligence platform analyze customer data salesforce einstein built several small acquisitions bringing together specialized tools one unified umbrella einstein takes sales marketing process bakes elements machine learning natural language processing data analytics relationship intelligence much userfriendly allinone data management helper platform introduced last fall rolled customers earlier month early days salesforces artificial intelligence ambitions einstein designed learn experience get better time data einstein gets process sophisticated results become salesforces overall efforts emerging market youre buying right make sure least keep eye salesforce einstein platform matures ibm watson facing two elite human jeopardy players image source ibm big blue veteran artificial intelligence market way back 1996 company built chessplaying supercomputer capable challenging world champion garry kasparov kasparov first match deep blue collected two draws one outright win along way next year kasparov lost rematch upgraded deep blue thus began new era contest man machine ibm carrying robotic banner kasparov moved promote computerassisted chess conceding best human chess player longer could challenge best computer systems computers improved since giving humans chance keep today buy chess engine laptop beat deep blue quite easily kasparov said podcast interview opens new window chessbase last year encouraged early success ibm dug deeper artificial intelligence qualities humanlike intuition 2011 ibm watson system beat jeopardy champions ken jennings brad rutter game system powered analysis 200 million documents including thencurrent full text wikipedia watson system become linchpin ibms overall strategy company recently reorganized create reportable business segment focused watsons cognitive computing segment already accounts 40 big blues annual sales half operating profits watson promoted catchall platform data analysis humantomachine interaction system understand forms data interact naturally people learn reason scale according ibms marketing materials hundred million documents enough beat ken jennings jeopardysix years ago system evolved much handcurated access entire internet tons private training data along way pick artificial intelligence tool assist lifeordeath situation watson would ibm already making big money marketdefining advantage best yet come galaxy s8 orchid gray image source samsung finally obviously consumerfacing pick list comes south korea probably dont think samsung authority artificial intelligence yet thats change koreans way galaxy s8 smartphone flagship opens new window hot presses comes samsungs first try aipowered digital assistant bixby tool built around technology viv 214 million acquisition october 2016 brought talent originally associated applessiri assistant like watson einstein bixby knows communicate humans using natural language instead handpicked key words samsung hopes get users accustomed controlling phones largely voice making onscreen keyboards irrelevant long run bixby artificial intelligence savvy thats needed start moving direction existing digital assistants siri mold tend create voicedriven bridge user various online services bixby prefers interface handsets internal operation anything touch voice samsung mantra camera also tightly integrated bixby reaching elusive experience augmented reality samsung phone bixby major talking point galaxy s8 samsung hopes make major selling point well system may need earn wings trial error realworld usage samsung resources motivation make work long run samsungs galaxy phones come long way since fairly lowkey start 2009 expect bixby follow similar trajectory starts showing samsungs tv sets refrigerators till early going whole artificial intelligence race 10 stocks like better ibmwhen 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 ibm wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 anders bylund opens new window owns shares ibm motley fool owns shares recommends aapl motley fool following options long january 2018 90 calls aapl short january 2018 95 calls aapl motley fool recommends salesforcecom motley fool disclosure policy opens new window | 738 |
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<p>Image source: Getty Images.</p>
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<p>Investors have been patiently waiting for several years for Cheniere Energy (NYSEMKT: LNG) to make good on its promise of exporting liquefied natural gas, or LNG. While the company isn't done building new production trains, the waiting game for commercial operations ended in the second half of 2016. The first two production trains came online and, as a result, revenue exploded from $69 million in the first quarter of last year to over $465 million in the third quarter of the year.</p>
<p>Shares only gained 10% in 2016, but investors are hopeful that it was just the beginning. There are several reasons for optimism, including these three reasons Cheniere Energy stock could rise.</p>
<p>The LNG exporter is developing two major projects: the Sabine Pass Terminal and the Corpus Christi Project. Management announced that the first two production trains at Sabine Pass achieved "substantial completion" -- a term that simply means construction and commissioning were completed, and the production units passed tests showing the ability to reliably manufacture product -- in May and September 2016. That led to an enormous jump in revenue in each sequential quarter reported last year and lowered operating losses to just $10 million in the third quarter -- the lowest total in years.</p>
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<p>But things are about to get even better.</p>
<p>Cheniere Energy expects the next two trains at Sabine Pass to reach substantial completion in 2017. It's not a perfect gauge for investors, but it took 45 months and 49 months, respectively, from the time construction began on Train 1 and Train 2 to the time each reached the production milestone. If Train 3 and Train 4 take about the same amount of time, or an average of 47 months, then they should both be ready sometime around April. That would double the capacity of the project, lead to another giant leap in revenue, and could result in long-awaited operating income.</p>
<p>Further down the pipeline at Sabine Pass, Cheniere Energy expects Train 5 to reach substantial completion in 2019. Train 6 has earned all of the required regulatory approvals, but management has yet to make the final investment decision. Meanwhile, the Corpus Christi Terminal is expected to support three process trains of equal size to those at Sabine Pass. The first two trains will come online in 2019, while a third is awaiting additional purchase agreements before construction begins. The takeaway: Operations are quickly moving in the right direction.</p>
<p><a href="http://ycharts.com/companies/LNG" type="external">LNG</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>Cheniere Energy now has the capability to manufacture LNG, but let's not forget that it still needs to secure long-term natural gas supply for up to nine production trains at the Sabine Pass and Corpus Christi terminals. To do so, the company has proposed a new pipeline that will stretch from the Anadarko Basin (which boasts a 50,000 square mile footprint in West Texas, Oklahoma, Kansas, and Colorado) to the Gulf Coast and supply both of its LNG projects. As currently contemplated, the pipeline would carry 1.4 billion cubic feet per day of natural gas.</p>
<p>As with most everything else in the capital intensive industry, the proposed pipeline won't be cheap. But approval, construction, and financing announcements could be more than enough to further de-risk the stock and send shares higher. Management expects formal applications for regulatory permits to be filed this year, while construction could begin in 2018. The good news for investors is that with a pro-business and deregulation-happy administration in the White House, the path to approval -- and perhaps even lower regulatory costs -- appears wide open for Cheniere Energy.</p>
<p>Speaking of capital intensive, investors are probably not thrilled with the company's debt-ridden balance sheet. At the end of September 2016 the debt-to-assets ratio stood at a staggering 84%. Mostly because of its debt, Cheniere Energy is worth negative $1.6 billion on paper! It will need even more financing to complete the three trains currently under construction (Train 5 at Sabine Pass and Trains 1 and 2 at Corpus Christi), begin construction on Train 3 at Corpus Christi, potentially begin construction on Train 6 at Sabine Pass, and build the proposed pipeline.</p>
<p>That's hardly inspiring, but the sliver of good news is that management should still be able to pull off the delicate balancing act. The company will exit 2017 with four production trains in operation, which will help provide cash flow for construction projects and could allow slightly better terms for future financing. More importantly, after a major refinancing in October 2016, no debt matures until 2020.</p>
<p>That's significant because Cheniere Energy expects to have seven production trains operating by the end of 2019. Barring unforeseen risks in a messy world, the company's operational profile in 2020 should allow it to repay and/or refinance its existing debt at or before maturity. Interest expenses will continue to sap the bottom line in the meantime -- accounting for 46% of the net loss in the first nine months of 2016 -- but that's something investors have to live with to own shares of the company.</p>
<p>Cheniere Energy is now a company with real-world operations that will produce real revenue, which means investors finally have something to analyze and to gauge progress. At an $11 billion market cap, the LNG exporter is trading at just 55% of its all-time high set in 2014. While it won't be easy to nearly double in price overnight or even in just one year, investors have to be encouraged that the stock has the potential to rise from current levels in the long run.</p>
<p>10 stocks we like better than Cheniere Energy 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=e18a94f6-5d6f-4dd1-acfe-f66c5ad154de&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 Cheniere Energy 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/TMFBlacknGold/info.aspx" type="external">Maxx Chatsko 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 | image source getty images continue reading investors patiently waiting several years cheniere energy nysemkt lng make good promise exporting liquefied natural gas lng company isnt done building new production trains waiting game commercial operations ended second half 2016 first two production trains came online result revenue exploded 69 million first quarter last year 465 million third quarter year shares gained 10 2016 investors hopeful beginning several reasons optimism including three reasons cheniere energy stock could rise lng exporter developing two major projects sabine pass terminal corpus christi project management announced first two production trains sabine pass achieved substantial completion term simply means construction commissioning completed production units passed tests showing ability reliably manufacture product may september 2016 led enormous jump revenue sequential quarter reported last year lowered operating losses 10 million third quarter lowest total years advertisement things get even better cheniere energy expects next two trains sabine pass reach substantial completion 2017 perfect gauge investors took 45 months 49 months respectively time construction began train 1 train 2 time reached production milestone train 3 train 4 take amount time average 47 months ready sometime around april would double capacity project lead another giant leap revenue could result longawaited operating income pipeline sabine pass cheniere energy expects train 5 reach substantial completion 2019 train 6 earned required regulatory approvals management yet make final investment decision meanwhile corpus christi terminal expected support three process trains equal size sabine pass first two trains come online 2019 third awaiting additional purchase agreements construction begins takeaway operations quickly moving right direction lng data ycharts opens new window cheniere energy capability manufacture lng lets forget still needs secure longterm natural gas supply nine production trains sabine pass corpus christi terminals company proposed new pipeline stretch anadarko basin boasts 50000 square mile footprint west texas oklahoma kansas colorado gulf coast supply lng projects currently contemplated pipeline would carry 14 billion cubic feet per day natural gas everything else capital intensive industry proposed pipeline wont cheap approval construction financing announcements could enough derisk stock send shares higher management expects formal applications regulatory permits filed year construction could begin 2018 good news investors probusiness deregulationhappy administration white house path approval perhaps even lower regulatory costs appears wide open cheniere energy speaking capital intensive investors probably thrilled companys debtridden balance sheet end september 2016 debttoassets ratio stood staggering 84 mostly debt cheniere energy worth negative 16 billion paper need even financing complete three trains currently construction train 5 sabine pass trains 1 2 corpus christi begin construction train 3 corpus christi potentially begin construction train 6 sabine pass build proposed pipeline thats hardly inspiring sliver good news management still able pull delicate balancing act company exit 2017 four production trains operation help provide cash flow construction projects could allow slightly better terms future financing importantly major refinancing october 2016 debt matures 2020 thats significant cheniere energy expects seven production trains operating end 2019 barring unforeseen risks messy world companys operational profile 2020 allow repay andor refinance existing debt maturity interest expenses continue sap bottom line meantime accounting 46 net loss first nine months 2016 thats something investors live shares company cheniere energy company realworld operations produce real revenue means investors finally something analyze gauge progress 11 billion market cap lng exporter trading 55 alltime high set 2014 wont easy nearly double price overnight even one year investors encouraged stock potential rise current levels long run 10 stocks like better cheniere energy 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 cheniere energy wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 maxx chatsko opens new window position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 647 |
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<p>Model X. Image source: Tesla.</p>
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<p>Yesterday, Tesla Motors opened up its Model X design studio to the public. The vehicle configurator was previously only available to reservation holders. Anyone can now spec out an all-electric SUV, which costs anywhere from $83,000 to almost $152,000.</p>
<p>Not quite first-come, first-serveWhen Tesla first invited Model X reservation holders to configure and confirm their orders, the chosen options could meaningfully affect the delivery timeline. In line with its prior practice, Tesla was prioritizing highly optioned configurations first as a way to accelerate the payback period on its manufacturing and tooling investments. Selling the most expensive ones first helps it recoup some of those costs as soon as possible.</p>
<p>The most important variable was the battery capacity. Tesla would prioritize deliveries of the P90D, then move on to the 90D, and then the 70D (which has been upgraded to 75D). Even just choosing the five-seat interior as opposed to the six-seat ($3,000) or seven-seat ($4,000) configuration could push your delivery back a few months.</p>
<p>So you can think of it like the "lowest" priority configuration would be a 75D five-seater. One of those can be delivered as early as June. If that's the case, the two simplest explanations would be that Tesla's production rate has ramped significantly, or the order conversion rate is too low. But we know that Tesla missed its delivery expectations last quarter, and that the company has been <a href="http://www.fool.com/investing/general/2016/03/10/tesla-motors-inc-is-nudging-model-x-reservation-ho.aspx?source=eptfxblnk0000004" type="external">gently nudging Opens a New Window.</a> reservation holders to go ahead and confirm their orders.</p>
<p>A numbers gameAs of the end of the first quarter, Tesla had delivered a cumulative total of about 2,600 SUVs. <a href="http://www.fool.com/investing/general/2016/04/11/dont-worry-about-teslas-model-x-recall.aspx?source=eptfxblnk0000004" type="external">The recall Opens a New Window.</a> affected 2,700 vehicles, and we're now a couple weeks into a new quarter. Tesla exited the quarter at an X production rate of <a href="http://www.fool.com/investing/general/2016/04/05/1-silver-lining-in-teslas-delivery-miss.aspx?source=eptfxblnk0000004" type="external">750 units per week Opens a New Window.</a>, which was better than expected. Putting all of that together, Tesla has probably produced approximately 4,100 Model X units cumulatively, although a portion of these are likely still in transit to be delivered.</p>
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<p>A line of Model X SUVs waiting to be delivered at the Fremont factory. Image source: Author.</p>
<p>Remember that Tesla was sitting on upwards of <a href="http://www.fool.com/investing/general/2016/02/26/tesla-motors-incs-meet-model-x-tour-begins.aspx?source=eptfxblnk0000004" type="external">35,000 Opens a New Window.</a> Model X reservations. So Tesla has probably already worked through over 10% of its order backlog. But if a greater portion of the remaining backlog had already confirmed their orders and entered the production queue, the quoted delivery timeline for new orders should seemingly be farther out.</p>
<p>For instance, even if Tesla has prematurely hit its peak expected production rate of 1,000 X units per week and all of those production slots were taken, that would theoretically represent about 7,000 additional confirmed orders through the beginning of June. Even under those optimistic scenarios, that would represent less than 25% of the approximately 31,000 reservations remaining.</p>
<p>It's unlikely that Tesla has reached 1,000 units per week, and all of those slots are not taken since May deliveries are still available for new 90D and P90D orders. So the X order conversion rate could easily be under 20% right now.</p>
<p>Why it's too early to worryWhile a potential sub-20% conversion rate doesn't inspire confidence in Tesla's latest and greatest EV, there is a few possible explanations.</p>
<p>It's quite likely that many of those reservation holders are waiting to test drive the vehicle before confirming their order. Some reservation holders may also be waiting for Tesla to work out early quality issues, and there undeniably are a few examples of low-quality deliveries.</p>
<p>Putting a refundable $1,000 Model 3 reservation deposit down sight unseen is quite different than confirming an order for an $80,000 car you've never personally experienced. Once you confirm the order, the $5,000 Model X deposit is no longer refundable.</p>
<p>This is precisely what the "Meet Model X" tour was for: to allow reservation holders to test drive. But even the tour can't possibly allow all reservation holders to see the car. That's why it's so important to get Model X into Tesla showrooms as soon as possible. My local Park Meadows store in Denver just got their X last week.</p>
<p>As the production ramp increases, it will take some time to get display and test drive vehicles distributed. But as more and more reservation holders set up their test drives, hopefully that translates into more and more confirmed orders. Meanwhile, Tesla has started giving review units to the media, and the subsequent positive reviews will also stimulate demand.</p>
<p>The X order conversion rate has nowhere to go but up.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/13/is-teslas-model-x-order-conversion-rate-too-low.aspx" type="external">Is Tesla's Model X Order Conversion Rate Too Low? Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFNewCow/info.aspx?source=eptfxblnk0000004" type="external">Evan Niu, CFA Opens a New Window.</a> owns shares of Tesla Motors, andhas the following options: long January 2018 $180 calls on Tesla Motors. The Motley Fool owns shares of and recommends Tesla 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 | model x image source tesla continue reading yesterday tesla motors opened model x design studio public vehicle configurator previously available reservation holders anyone spec allelectric suv costs anywhere 83000 almost 152000 quite firstcome firstservewhen tesla first invited model x reservation holders configure confirm orders chosen options could meaningfully affect delivery timeline line prior practice tesla prioritizing highly optioned configurations first way accelerate payback period manufacturing tooling investments selling expensive ones first helps recoup costs soon possible important variable battery capacity tesla would prioritize deliveries p90d move 90d 70d upgraded 75d even choosing fiveseat interior opposed sixseat 3000 sevenseat 4000 configuration could push delivery back months think like lowest priority configuration would 75d fiveseater one delivered early june thats case two simplest explanations would teslas production rate ramped significantly order conversion rate low know tesla missed delivery expectations last quarter company gently nudging opens new window reservation holders go ahead confirm orders numbers gameas end first quarter tesla delivered cumulative total 2600 suvs recall opens new window affected 2700 vehicles couple weeks new quarter tesla exited quarter x production rate 750 units per week opens new window better expected putting together tesla probably produced approximately 4100 model x units cumulatively although portion likely still transit delivered advertisement line model x suvs waiting delivered fremont factory image source author remember tesla sitting upwards 35000 opens new window model x reservations tesla probably already worked 10 order backlog greater portion remaining backlog already confirmed orders entered production queue quoted delivery timeline new orders seemingly farther instance even tesla prematurely hit peak expected production rate 1000 x units per week production slots taken would theoretically represent 7000 additional confirmed orders beginning june even optimistic scenarios would represent less 25 approximately 31000 reservations remaining unlikely tesla reached 1000 units per week slots taken since may deliveries still available new 90d p90d orders x order conversion rate could easily 20 right early worrywhile potential sub20 conversion rate doesnt inspire confidence teslas latest greatest ev possible explanations quite likely many reservation holders waiting test drive vehicle confirming order reservation holders may also waiting tesla work early quality issues undeniably examples lowquality deliveries putting refundable 1000 model 3 reservation deposit sight unseen quite different confirming order 80000 car youve never personally experienced confirm order 5000 model x deposit longer refundable precisely meet model x tour allow reservation holders test drive even tour cant possibly allow reservation holders see car thats important get model x tesla showrooms soon possible local park meadows store denver got x last week production ramp increases take time get display test drive vehicles distributed reservation holders set test drives hopefully translates confirmed orders meanwhile tesla started giving review units media subsequent positive reviews also stimulate demand x order conversion rate nowhere go article teslas model x order conversion rate low opens new window originally appeared foolcom evan niu cfa opens new window owns shares tesla motors andhas following options long january 2018 180 calls tesla motors motley fool owns shares recommends tesla 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 | 547 |
<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 13, 2017).</p>
<p>A rate increase from the Bank of Canada Wednesday will give the country's lenders a long-awaited boost in lending margins, but analysts say it could also trigger concerns about a rise in defaults down the road.</p>
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<p>The rate increase by Canada's central bank is the first in seven years, and it is likely to boost lending margins -- a key profit-driver for banks -- which have been falling steadily during the postcrisis era of ultralow rates in Canada, the U.S. and elsewhere.</p>
<p>But the six Canadian banks that dominate the financial system are also vulnerable to consumers who are piling on historic amounts of debt, say analysts and investors. An extended cycle of rising rates could cause many to default on their credit cards, car loans or mortgages, potentially rattling the foundation of the Canadian financial sector.</p>
<p>Residential mortgages made up 22% of the banks' combined assets in the second quarter, ending April 30. Personal and credit-card debt made up about 11%, according to filings. Those levels are down just slightly from the 23% and 12%, respectively, two years prior.</p>
<p>At U.S. banks, which tend to securitize more of their loans and move them off their balance sheets, mortgages make up roughly 13% of assets, according to the most recent Federal Reserve data.</p>
<p>The rate increase comes amid a strong run for Canada's banks, which have been bolstered by the country's recent pickup in economic growth and high demand for mortgages in markets like Toronto and Vancouver. Royal Bank of Canada, Toronto-Dominion Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, Bank of Nova Scotia and National Bank of Canada increased earnings by an average 11% during the second quarter, according to a report by Credit Suisse.</p>
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<p>Net interest margins, which measure the difference between their cost of borrowing and the money they make from lending, averaged 2.46%, down 0.04 percentage point from the end of 2015. A rate rise should help boost those numbers, helping grow earnings further, analysts say.</p>
<p>The banks have already begun to raise mortgage lending rates. RBC, TD, Bank of Montreal and CIBC raised rates early in July by as much as 0.20 point for five-year mortgages.</p>
<p>Despite their robust earnings, some observers have already sent up cautionary flares. Moody's Investors Service in May downgraded the top five banks, citing their vulnerability to debt. Household debt totaled 175.9% of disposable income at the end of 2016, according to the Organization for Economic Cooperation and Development. That compares with 152.3% in the U.K. in 2016 and a U.S. ratio of 112% in 2015, the most recent year for with the OECD had data available.</p>
<p>"Canadian consumers and the Canadian banking system haven't been tested at such high levels of leverage," said David Beattie, a Toronto-based analyst for the ratings service. "We don't know what the shocks to the system will be, but we do know it's harder for the system to respond when we get to these levels."</p>
<p>Canadian officials have signaled they are concerned. They have imposed measures to cool housing markets in Toronto and Vancouver, including a tax on foreign buyers, and last week said they are weighing tighter rules for mortgage issuance.</p>
<p>This spring, alternative lender Home Capital Group Inc. unnerved the financial sector when it suffered an outflow of 95% of its more than C$2 billion ($1.55 billion) in high-interest savings deposits following allegations the company misled investors about its mortgage fraud problem. The company, a large lender to the self-employed and those with little credit history, was bailed out last month by an investment from Warren Buffett's Berkshire Hathaway.</p>
<p>To be sure, the major banks aren't as exposed as Home Capital to non-prime borrowers. The government's Canada Mortgage and Housing Corporation also fully insures more than half the mortgages on the banks' books, according to a report by Citi, reducing their risk to the firms. But any damage to the banks' balance sheets from rising interest rates and stressed borrowers likely will begin through other forms of borrowing, said Brian Klock, an analyst with Keefe, Bruyette &amp; Woods.</p>
<p>"The fear in Canada is that you have that consumer borrower who finally turns," said Mr. Klock. "If they are having problems with their car loans, do they default? Will that cause an issue with their mortgage?"</p>
<p>Chris Kresic, head of fixed income at Montreal-based investment management firm Jarislowsky Fraser, said that growth in the housing sector poses a macroeconomic risk for the Canadian economy as a whole, which exposes the banks. But the banks, which effectively hold an oligopoly in the country, haven't had to take on as much risk to remain competitive as U.S. banks did in the run up to the housing crisis in 2007.</p>
<p>Canadian banks don't have many subprime loans on their balance sheets, he noted, which could help them avoid the worst of a default wave.</p>
<p>That conservatism could help avoid a crisis, even if higher rates lead to a severe housing downturn, he said.</p>
<p>"There's no doubt that the Canadian economy has never been so leveraged and so leveraged to housing," he said. "There is a macroeconomic exposure for the banks. Is the risk greater now than ever before? Probably. Are the banks able to survive such a downturn? We think they will."</p>
<p>Write to Vipal Monga at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>July 13, 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 13 2017 rate increase bank canada wednesday give countrys lenders longawaited boost lending margins analysts say could also trigger concerns rise defaults road continue reading rate increase canadas central bank first seven years likely boost lending margins key profitdriver banks falling steadily postcrisis era ultralow rates canada us elsewhere six canadian banks dominate financial system also vulnerable consumers piling historic amounts debt say analysts investors extended cycle rising rates could cause many default credit cards car loans mortgages potentially rattling foundation canadian financial sector residential mortgages made 22 banks combined assets second quarter ending april 30 personal creditcard debt made 11 according filings levels slightly 23 12 respectively two years prior us banks tend securitize loans move balance sheets mortgages make roughly 13 assets according recent federal reserve data rate increase comes amid strong run canadas banks bolstered countrys recent pickup economic growth high demand mortgages markets like toronto vancouver royal bank canada torontodominion bank bank montreal canadian imperial bank commerce bank nova scotia national bank canada increased earnings average 11 second quarter according report credit suisse advertisement net interest margins measure difference cost borrowing money make lending averaged 246 004 percentage point end 2015 rate rise help boost numbers helping grow earnings analysts say banks already begun raise mortgage lending rates rbc td bank montreal cibc raised rates early july much 020 point fiveyear mortgages despite robust earnings observers already sent cautionary flares moodys investors service may downgraded top five banks citing vulnerability debt household debt totaled 1759 disposable income end 2016 according organization economic cooperation development compares 1523 uk 2016 us ratio 112 2015 recent year oecd data available canadian consumers canadian banking system havent tested high levels leverage said david beattie torontobased analyst ratings service dont know shocks system know harder system respond get levels canadian officials signaled concerned imposed measures cool housing markets toronto vancouver including tax foreign buyers last week said weighing tighter rules mortgage issuance spring alternative lender home capital group inc unnerved financial sector suffered outflow 95 c2 billion 155 billion highinterest savings deposits following allegations company misled investors mortgage fraud problem company large lender selfemployed little credit history bailed last month investment warren buffetts berkshire hathaway sure major banks arent exposed home capital nonprime borrowers governments canada mortgage housing corporation also fully insures half mortgages banks books according report citi reducing risk firms damage banks balance sheets rising interest rates stressed borrowers likely begin forms borrowing said brian klock analyst keefe bruyette amp woods fear canada consumer borrower finally turns said mr klock problems car loans default cause issue mortgage chris kresic head fixed income montrealbased investment management firm jarislowsky fraser said growth housing sector poses macroeconomic risk canadian economy whole exposes banks banks effectively hold oligopoly country havent take much risk remain competitive us banks run housing crisis 2007 canadian banks dont many subprime loans balance sheets noted could help avoid worst default wave conservatism could help avoid crisis even higher rates lead severe housing downturn said theres doubt canadian economy never leveraged leveraged housing said macroeconomic exposure banks risk greater ever probably banks able survive downturn think write vipal monga vipalmongawsjcom end dow jones newswires july 13 2017 0247 et 0647 gmt | 548 |
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<p>Skechers USA's (NYSE: SKX) third-quarter earnings report sent its stock into a tailspin recently as all of its businesses segments stalled. But there's one market in particular the footwear maker has particularly high hopes for, so much so that it thinks it will be a billion-dollar business within five years.</p>
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<p>Image source: Skechers U.S.A.</p>
<p>Results for the past year haven't been pretty. Growth rates in the domestic wholesale business turned negative, the number of pairs of shoes shipped were flat year over year -- and may also turn negative if trends continue -- and Skechers' international wholesale business is in the midst of a <a href="http://www.fool.com/investing/2016/10/25/you-couldve-seen-skechers-big-miss-coming-a-mile-a.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">midair stall Opens a New Window.</a>.</p>
<p>Data source: Skechers quarterly SEC filings. Chart by author.</p>
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<p>That had sales and profits falling below Wall Street estimates for the period, but it also led the footwear maker to offer guidance that was well below the consensus.</p>
<p>The U.S. retail market is depressed. Last year City Sports declared bankruptcy, followed by the parent of Eastern Mountain Sports and Sports Chalet, Vestis Retail Group. And then the biggest bankruptcy of the sportswear market, Sports Authority, came in earlier this year.</p>
<p>And when sporting-goods retailers aren't declaring bankruptcy, they're closing stores or reducing their size. Foot Locker (NYSE: FL), for example, has reduced its Lady Foot Locker chain to about 140 stores at last count, down from almost 160 at the start of the year and nearly 200 stores at the start of 2015.</p>
<p>There there's the matter of where consumers are shopping these days. Sports Authority, for example, couldn't keep pace with consumers who preferred the overall experience from shopping atDick's Sporting Goods(NYSE: DKS)-- which is buying some of the bankrupt retailer's assets -- as well as at Cabela's and Bass Pro Shops. So rather than having a retailer that specializes in footwear, branded footwear is competing not only against other brands but also other clothing items.</p>
<p>Yet because there are outlets that are still doing well, including Dick's, REI,Finish Line, and Foot Locker, it suggests there are deeper problems facing Skechers.</p>
<p>Image source: Getty Images.</p>
<p>Athletic sportswear and footwear is a $70 billion industry, split about equally between the two, and 2015 was one of the better years in recent periods, with footwear sales growing by mid-teen percentages.But SportScanInfo data says the industry may be weakening, as athletic footwear has fallen for three straight weeks at the end of October.</p>
<p>Like Skechers, though on a less grand scale for the industry leader, Nike (NYSE: NKE) has encountered some strong headwinds, with North American futures orders growing only 1% in its fiscal 2017 first quarter, compared with estimates of more than 4%. In particular, it's being hurt by the brand resurgence ofAdidas, which grew brand sales in North America some 31% in the first half of 2016, and byUnder Armour, which is a late-comer to the space but has been recording gains and taking market share.</p>
<p>That may explain why Skechers is looking overseas for succor. Its international wholesale business now accounts for more than 40% of the footwear maker's sales, and when you include retail outlets, it's almost 48% of total revenues. COO and CFO David Weinberg says global markets "represent the greatest growth opportunity," with China perhaps the biggest of all.</p>
<p>Although the near term remains uncertain, within four or five years Skechers sees China becoming at least a billion-dollar market. Sales there surged from $85 million in 2014 to $220 million last year, and Weinberg noted on the earnings conference call that year-to-date sales are up 78%. Further, he said Skechersdid more business in China in the just-ended quarter than it did in all of 2014.</p>
<p>A number of international markets, including China, enjoyed sales growth of 50% or more in the latest period, pushingglobal retail business up 16% year over year as same-store sales improved 3.2% for the period.But China alonehas shipped more than 2.8 million pairs in the quarter and opened 82 freestanding Skechers retail stores.</p>
<p>Data source: Skechers SEC filings.</p>
<p>Skechers operates 1,716 retail stores worldwide, 556 of which are company owned, but there are now 341 stores in China, most of them run by franchisees. It now hasapproximately 1,860 points of sale in the country and what it deems to be "an extremely strong e-commerce business" that's growing at high double-digit rates.</p>
<p>Skechers faces a lot of challenges going forward, not least of which is the deceleration of the U.S. retail market, as well as not being the only one eying China as a chance to expand sales. But the country may be big enough to support a number of footwear manufacturers, as Euromonitor International projects China will grow at an average rate of 7% annually for the next few years.</p>
<p>That means Skechers may just be able to pull off a turnaround in the coming years as it walks China into a $1 billion market opportunity.</p>
<p>A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, <a href="http://www.fool.com/mms/mark/ecap-foolcom-apple-wearable?aid=6965&amp;source=irbeditxt0000017&amp;ftm_cam=rb-wearable-d&amp;ftm_pit=2667&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">just click here Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/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 Nike, Skechers, and Under Armour (A Shares). 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 | skechers usas nyse skx thirdquarter earnings report sent stock tailspin recently businesses segments stalled theres one market particular footwear maker particularly high hopes much thinks billiondollar business within five years continue reading image source skechers usa results past year havent pretty growth rates domestic wholesale business turned negative number pairs shoes shipped flat year year may also turn negative trends continue skechers international wholesale business midst midair stall opens new window data source skechers quarterly sec filings chart author advertisement sales profits falling wall street estimates period also led footwear maker offer guidance well consensus us retail market depressed last year city sports declared bankruptcy followed parent eastern mountain sports sports chalet vestis retail group biggest bankruptcy sportswear market sports authority came earlier year sportinggoods retailers arent declaring bankruptcy theyre closing stores reducing size foot locker nyse fl example reduced lady foot locker chain 140 stores last count almost 160 start year nearly 200 stores start 2015 theres matter consumers shopping days sports authority example couldnt keep pace consumers preferred overall experience shopping atdicks sporting goodsnyse dks buying bankrupt retailers assets well cabelas bass pro shops rather retailer specializes footwear branded footwear competing brands also clothing items yet outlets still well including dicks reifinish line foot locker suggests deeper problems facing skechers image source getty images athletic sportswear footwear 70 billion industry split equally two 2015 one better years recent periods footwear sales growing midteen percentagesbut sportscaninfo data says industry may weakening athletic footwear fallen three straight weeks end october like skechers though less grand scale industry leader nike nyse nke encountered strong headwinds north american futures orders growing 1 fiscal 2017 first quarter compared estimates 4 particular hurt brand resurgence ofadidas grew brand sales north america 31 first half 2016 byunder armour latecomer space recording gains taking market share may explain skechers looking overseas succor international wholesale business accounts 40 footwear makers sales include retail outlets almost 48 total revenues coo cfo david weinberg says global markets represent greatest growth opportunity china perhaps biggest although near term remains uncertain within four five years skechers sees china becoming least billiondollar market sales surged 85 million 2014 220 million last year weinberg noted earnings conference call yeartodate sales 78 said skechersdid business china justended quarter 2014 number international markets including china enjoyed sales growth 50 latest period pushingglobal retail business 16 year year samestore sales improved 32 periodbut china alonehas shipped 28 million pairs quarter opened 82 freestanding skechers retail stores data source skechers sec filings skechers operates 1716 retail stores worldwide 556 company owned 341 stores china run franchisees hasapproximately 1860 points sale country deems extremely strong ecommerce business thats growing high doubledigit rates skechers faces lot challenges going forward least deceleration us retail market well one eying china chance expand sales country may big enough support number footwear manufacturers euromonitor international projects china grow average rate 7 annually next years means skechers may able pull turnaround coming years walks china 1 billion market opportunity secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window rich duprey opens new window position stocks mentioned motley fool owns shares recommends nike skechers 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 | 588 |
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<p>Tech-savvy consumers increasingly expect that all aspects of their lives will be connected, including the home.&#160; Thirty-two-year-old Raffi Kajberouni says technological innovations and features topped his wish list when shopping for the biggest purchase of his life -- a $425,000 first home.</p>
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<p>“We have smart phones, why not smart homes.&#160; I was keen on getting a house with (high-tech features),” explains Kajberouni.&#160; And it was the customizable, tech-laden options that led him, and eventually his brother, to buy a house from KB Home (NYSE:KBH) in its Echo Pointe development in Santa Clarita, California, about 35 miles north of Los Angeles.</p>
<p>Kajberouni says his connected home is already paying dividends; while his flight to Ireland finished boarding, he checked in from the plane via smart phone and realized he left the air conditioning on. “Right before we took off I was able to shut off the AC and not worry about two weeks of an electricity bill.&#160; And this was in August, so you’re talking about a humongous bill -- I like my thermostat at 68 degrees.”</p>
<p>The chief financial officer for helicopter repair firm H.E.R.O.S. Inc. estimates that two-weeks of running the AC full-bore may have cost him more than his total power bill for the past year of just $571.</p>
<p>Kajberouni credits the low electricity bill to remotely controlling the thermostat and to solar panels that come standard in his development and more than 80% of KB Home communities in California.</p>
<p>The remote thermostat control and management system is standard across the US, and other options include controlling garage doors, lighting, and appliances through its web-based Wiser platform that’s accessible via smart devices, laptops, and PCs.</p>
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<p>Saved by Zero</p>
<p>KB Home has been literally breaking new ground with its high-tech, environmentally friendly homes, which promise to produce more green for the company itself.</p>
<p>The company has dubbed these initiatives the “e DIFFERENCE” program.&#160; It aims to improve energy and water efficiency, indoor air quality, and connectivity with the home.</p>
<p>The homebuilder also promises its so-called Net-Zero homes will save customers cash over the long haul.&#160; “For us, the house should produce as much energy as it needs so you end up with a zero energy bill,” explains Dan Bridleman, KB Home Senior VP of Sustainability, Technology, Strategic Sourcing &amp; National Contracts.</p>
<p>What does that mean for customers?&#160; KB Home installs solar panels, water-saving and motion-sensing Moen faucets and fixtures, the Wiser system and offers an EPG rating (Energy Performance Guide) on each house -- an estimate of how much it costs for overall energy usage.</p>
<p>The builder is developing a unique way to save money and energy with its recharging station for electric vehicles.&#160; The home can actually pull electricity from the vehicle during peak hours and then recharge it later.</p>
<p>Reduce, Reuse, Recycle ... Water?!</p>
<p>The LA-based company is one of the biggest builders in eco-friendly California, offering LEED Platinum and ENERGY STAR homes.&#160; The builder is also at the forefront of addressing water conservation with its EPA WaterSense for New Home program—critical in this drought-stricken state.</p>
<p>KB Home has unveiled the first on-site water recycling demonstration system by a production builder in the US.&#160; It’s a greywater recycling system that cleans water from showers, baths, hand sinks, and washing machines (not from toilets or disposals) and reuses it for landscaping.</p>
<p>The model home at Dawn Creek in Lancaster, California, is a prototype for what KB Home calls a DoubleZero House—net-zero energy status and zero freshwater irrigation use.</p>
<p>Zero-Sum Game</p>
<p>KB Home’s Bridleman says the eco-efficient homes and high-tech offerings give the company’s new developments an edge over existing homes and rivals, but at a price.&#160; “It will vary depending on the state,” KB Home’s Bridleman says. “The ballpark estimate is somewhere between $25,000-$40,000 to get the costs to zero.”</p>
<p>Will consumers in this economy be willing to take on a larger mortgage to save on their power bill?&#160; That’s a big question for KB Home and its competitors, according to Jay McCanless, who covers the industry as an analyst for Sterne Agee.&#160; He says, “If you can afford how much it will cost you monthly (in your mortgage), there are certainly savings in your energy bill versus existing homes or a place you’re renting, but it’s getting people to accept a larger (upfront) payment.”</p>
<p>While McCanless wants to see more data on uptake rates for the new amenities before passing judgment, he does see KB Home’s eco initiatives taking hold in its home market, where some 90% of KB homes come standard with solar: “In areas where you have adverse conditions like Southern California, people are going to pay up for those (water-saving and solar amenities).”</p>
<p>KB Home says nearly three-quarters of buyers purchase more solar panels where it’s a standard feature.</p>
<p>At the end of the day, KB Home officials recognize that greywater recycling, energy dashboards, and net-zero power bills are attractive additions, but it’s still all about location.&#160; “You want to offer something cutting edge,” KB Home’s Bridleman says while recognizing that “a lot of people may not come because we build a green house.&#160; They like the neighborhood, the house, and then they can add technology onto it.”</p>
<p>Urban Living</p>
<p>And the company is positioning itself to ride yet another demographic trend to higher sales and margins—urban infill.&#160; “Infill projects are going to be more important for the rest of the decade.&#160; That is the trend of the future,” explains Sterne Agee’s McCanless, adding, “People are looking at less footage (for homes) and shortening commutes.&#160; Walkability is becoming increasingly a first or a ‘gotta have’ type of amenity.”</p>
<p>KB Home is banking on that as it develops both single-family homes and stacked flats as part of a master planned community in the Playa Vista area of Los Angeles that once housed Howard Hughes’ aerospace empire and the infamous Spruce Goose.</p>
<p>The development will allow residents to walk to high-end shops, restaurants, and the movies as well as bike to recreation, school, the beach, and for some, to work.&#160; LA’s Silicon Beach corridor, home to offices for Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL), and a slew of startups, is nearby as well as some media offices and Hollywood production facilities.</p>
<p>The homebuilder is also developing condos in San Francisco’s trendy South Beach/SOMA district and also in Lower Pacific Heights.</p>
<p>KB Home CEO Jeffrey Mezger says the company is profiting as this demographic shift converges with the company’s investment and innovations in tech and energy efficiency.&#160; “These land-constrained areas are close to employment centers where demand for new housing far outweighs supply.&#160;&#160; These dynamics…are resulting in price points for our new homes that are well above local market averages (and) are reflected in the 30% year-over-year growth in our average selling price in the state.”</p>
<p>Car Talk</p>
<p>KB Home is working on new initiatives including a partnership with Ford Motor (NYSE:F) that would allow your car to automatically adjust your thermostat when your vehicle gets close to home.</p>
<p>Executives at the homebuilder say the technology and efficiency initiatives are meeting customer expectations, but the real payoff may be creating an affinity and brand loyalty with customers who may upgrade to new amenities if not outright new homes in a shorter cycle.</p>
<p>KB Home has a head start with technophile homeowners such as Kajberouni in Santa Clarita, who says he paid $50,000 more for his house than he originally planned to buy additional technology.&#160; Still he confesses to keeping a close eye on the latest upgrades since he bought just two years ago.&#160; “My next home will be a KB Home,” he says, adding, “I’m jealous of the new homes they’re building now because of the technology they have, that I don’t have.”</p> | true | 0 | techsavvy consumers increasingly expect aspects lives connected including home160 thirtytwoyearold raffi kajberouni says technological innovations features topped wish list shopping biggest purchase life 425000 first home continue reading smart phones smart homes160 keen getting house hightech features explains kajberouni160 customizable techladen options led eventually brother buy house kb home nysekbh echo pointe development santa clarita california 35 miles north los angeles kajberouni says connected home already paying dividends flight ireland finished boarding checked plane via smart phone realized left air conditioning right took able shut ac worry two weeks electricity bill160 august youre talking humongous bill like thermostat 68 degrees chief financial officer helicopter repair firm heros inc estimates twoweeks running ac fullbore may cost total power bill past year 571 kajberouni credits low electricity bill remotely controlling thermostat solar panels come standard development 80 kb home communities california remote thermostat control management system standard across us options include controlling garage doors lighting appliances webbased wiser platform thats accessible via smart devices laptops pcs advertisement saved zero kb home literally breaking new ground hightech environmentally friendly homes promise produce green company company dubbed initiatives e difference program160 aims improve energy water efficiency indoor air quality connectivity home homebuilder also promises socalled netzero homes save customers cash long haul160 us house produce much energy needs end zero energy bill explains dan bridleman kb home senior vp sustainability technology strategic sourcing amp national contracts mean customers160 kb home installs solar panels watersaving motionsensing moen faucets fixtures wiser system offers epg rating energy performance guide house estimate much costs overall energy usage builder developing unique way save money energy recharging station electric vehicles160 home actually pull electricity vehicle peak hours recharge later reduce reuse recycle water labased company one biggest builders ecofriendly california offering leed platinum energy star homes160 builder also forefront addressing water conservation epa watersense new home programcritical droughtstricken state kb home unveiled first onsite water recycling demonstration system production builder us160 greywater recycling system cleans water showers baths hand sinks washing machines toilets disposals reuses landscaping model home dawn creek lancaster california prototype kb home calls doublezero housenetzero energy status zero freshwater irrigation use zerosum game kb homes bridleman says ecoefficient homes hightech offerings give companys new developments edge existing homes rivals price160 vary depending state kb homes bridleman says ballpark estimate somewhere 2500040000 get costs zero consumers economy willing take larger mortgage save power bill160 thats big question kb home competitors according jay mccanless covers industry analyst sterne agee160 says afford much cost monthly mortgage certainly savings energy bill versus existing homes place youre renting getting people accept larger upfront payment mccanless wants see data uptake rates new amenities passing judgment see kb homes eco initiatives taking hold home market 90 kb homes come standard solar areas adverse conditions like southern california people going pay watersaving solar amenities kb home says nearly threequarters buyers purchase solar panels standard feature end day kb home officials recognize greywater recycling energy dashboards netzero power bills attractive additions still location160 want offer something cutting edge kb homes bridleman says recognizing lot people may come build green house160 like neighborhood house add technology onto urban living company positioning ride yet another demographic trend higher sales marginsurban infill160 infill projects going important rest decade160 trend future explains sterne agees mccanless adding people looking less footage homes shortening commutes160 walkability becoming increasingly first got ta type amenity kb home banking develops singlefamily homes stacked flats part master planned community playa vista area los angeles housed howard hughes aerospace empire infamous spruce goose development allow residents walk highend shops restaurants movies well bike recreation school beach work160 las silicon beach corridor home offices facebook nasdaqfb google nasdaqgoogl slew startups nearby well media offices hollywood production facilities homebuilder also developing condos san franciscos trendy south beachsoma district also lower pacific heights kb home ceo jeffrey mezger says company profiting demographic shift converges companys investment innovations tech energy efficiency160 landconstrained areas close employment centers demand new housing far outweighs supply160160 dynamicsare resulting price points new homes well local market averages reflected 30 yearoveryear growth average selling price state car talk kb home working new initiatives including partnership ford motor nysef would allow car automatically adjust thermostat vehicle gets close home executives homebuilder say technology efficiency initiatives meeting customer expectations real payoff may creating affinity brand loyalty customers may upgrade new amenities outright new homes shorter cycle kb home head start technophile homeowners kajberouni santa clarita says paid 50000 house originally planned buy additional technology160 still confesses keeping close eye latest upgrades since bought two years ago160 next home kb home says adding im jealous new homes theyre building technology dont | 771 |
<p>It's been a brutal year for Ambarella (NASDAQ: AMBA) investors. The chipmaker's stock plunged nearly 40% over the past 12 months, and currently hovers near a 52-week low. But investors looking at Ambarella's top and bottom line growth might initially be baffled since it posted positive year-over-year revenue growth over the past four quarters while beating analyst estimates on the top and bottom lines.</p>
<p>But looking ahead, analysts expect Ambarella's revenue and non-GAAP earnings to respectively fall 5% and&#160;35% this year -- compared to a 2% sales drop&#160;and 12% earnings decline last year. Those numbers look dismal for a stock that trades at 24 times earnings, which is higher than the industry average P/E of&#160;23 for semiconductor equipment makers.</p>
<p>Continue Reading Below</p>
<p>However, some contrarian investors might be wondering if the market has been too hard on Ambarella. To figure that out, let's examine the chipmaker's core business, challenges, and potential catalysts.</p>
<p>Ambarella manufactures image processing system-on-chips (SoCs) for cameras. Its top customers include action camera maker GoPro (NASDAQ: GPRO), drone maker DJI Innovations, and security camera maker Hikvision. The stock surged to all-time highs in 2015 <a href="https://www.fool.com/investing/2017/04/11/how-ambarella-inc-makes-most-of-its-money.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">on enthusiasm Opens a New Window.</a> for GoPro cameras, but it dropped as GoPro's <a href="https://www.fool.com/investing/2017/08/16/why-i-still-hate-gopro-inc-stock.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">sales declined Opens a New Window.</a>.</p>
<p>Ambarella's revenue rose 10% annually to&#160;$71.6 million last quarter, with 16.3% growth in non-GoPro revenues. But looking ahead, Ambarella CFO George Laplante warned of a "substantial decline" in GoPro revenues -- either due to lower camera sales or&#160;GoPro's long-rumored shift toward rival suppliers like Qualcomm (NASDAQ: QCOM).</p>
<p>In the past, Ambarella bulls pointed out that the chipmaker could pivot toward drones to offset its softness in action cameras. Unfortunately, Laplante expected the drone market "to be down" for the current quarter, as DJI's cheaper <a href="https://www.fool.com/investing/2017/05/30/gopros-two-biggest-hopes-just-got-dashed.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">Spark drone Opens a New Window.</a> (which reportedly doesn't use an&#160;Ambarella SoC) punishes higher-end drones that use Ambarella's chipsets -- like DJI's own Phantom. To make matters worse, persistent rumors suggest that Qualcomm is still trying to pull DJI away from Ambarella.</p>
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<p>The bulls might also believe that chipsets for VR cameras or driverless cars will save Ambarella -- but Laplante warned that the VR market faces "slower-than-expected growth" this year. Pacific Crest analyst Brad Erickson also estimated that Ambarella's computer vision chips for autonomous cars probably wouldn't generate significant revenue "for three to four years."</p>
<p>Ambarella's margins are also deteriorating. Between the second quarters of fiscal 2017 and 2018, Ambarella's non-GAAP gross margin dropped from 67.1% to 63%. GAAP gross margin fell from 65.6% to 63.2%.&#160;Ambarella attributed that decline to the expansion of its lower-margin security camera SoC market in China, which faces tough competition from cheaper Chinese chipmakers.</p>
<p>Ambarella's total operating expenses also rose 15% annually, led by a 16% jump in R&amp;D costs. As a result, its operating margin contracted from 14% to 7%. That figure will keep dropping as Ambarella's rising expenses keep outpacing its revenue growth.</p>
<p>Ambarella's main strategy is to keep investing in R&amp;D to retain its reputation as the "best in breed" provider of image processing SoCs. This means bigger investments in its CV1 computer vision chip, which could power more autonomous drones and cars, and better panoramic technologies for security cameras.</p>
<p>It's also striking deals with other drone makers to reduce its dependence on DJI, and partnering with automakers to provide SoCs for integrated dash cams.</p>
<p>These are all smart moves, but they don't guarantee its survival against bigger foes like Qualcomm or cheaper Chinese chipmakers.</p>
<p>Ambarella is also buying back a lot of stock. It spent $29.9 million last quarter buying back 595,770 shares, but that was poorly timed; the stock plummeted more than 22% after its second quarter earnings report on Aug. 31. Moreover, insiders don't seem confident about Ambarella's prospects -- they sold over 153,000 shares over the past 12 months, but didn't buy a single share on the open market.</p>
<p>I've told investors to <a href="https://www.fool.com/investing/2017/07/24/forget-ambarella-inc-these-3-stocks-are-better-buy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">avoid Ambarella Opens a New Window.</a> before, and my opinion hasn't changed. I personally admire CEO Fermi Wang and <a href="https://www.fool.com/investing/2017/03/16/5-things-you-didnt-know-about-ambarella-inc.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">his development Opens a New Window.</a> of video compression codecs and top-tier image processing SoCs, but&#160;Ambarella's business model is fundamentally flawed.</p>
<p>It relies too heavily on a few major customers that have questionable loyalties, its primary markets of action cameras and drones are losing momentum, and its margins are crumbling. I think a best-case scenario for Ambarella would be a buyout, but I doubt that suitors will appear at its current valuations.</p>
<p>10 stocks we like better than AmbarellaWhen 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=b8a030d5-0d18-4748-853c-163c9ed92e30&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Ambarella 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=b8a030d5-0d18-4748-853c-163c9ed92e30&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&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/TMFSunLion/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">Leo Sun Opens a New Window.</a> owns shares of Qualcomm. The Motley Fool owns shares of and recommends Ambarella and GoPro. The Motley Fool owns shares of Qualcomm and has the following options: short January 2019 $12 calls on GoPro and long January 2019 $12 puts on GoPro. 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=6dee7012-938b-11e7-bc45-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | brutal year ambarella nasdaq amba investors chipmakers stock plunged nearly 40 past 12 months currently hovers near 52week low investors looking ambarellas top bottom line growth might initially baffled since posted positive yearoveryear revenue growth past four quarters beating analyst estimates top bottom lines looking ahead analysts expect ambarellas revenue nongaap earnings respectively fall 5 and16035 year compared 2 sales drop160and 12 earnings decline last year numbers look dismal stock trades 24 times earnings higher industry average pe of16023 semiconductor equipment makers continue reading however contrarian investors might wondering market hard ambarella figure lets examine chipmakers core business challenges potential catalysts ambarella manufactures image processing systemonchips socs cameras top customers include action camera maker gopro nasdaq gpro drone maker dji innovations security camera maker hikvision stock surged alltime highs 2015 enthusiasm opens new window gopro cameras dropped gopros sales declined opens new window ambarellas revenue rose 10 annually to160716 million last quarter 163 growth nongopro revenues looking ahead ambarella cfo george laplante warned substantial decline gopro revenues either due lower camera sales or160gopros longrumored shift toward rival suppliers like qualcomm nasdaq qcom past ambarella bulls pointed chipmaker could pivot toward drones offset softness action cameras unfortunately laplante expected drone market current quarter djis cheaper spark drone opens new window reportedly doesnt use an160ambarella soc punishes higherend drones use ambarellas chipsets like djis phantom make matters worse persistent rumors suggest qualcomm still trying pull dji away ambarella advertisement bulls might also believe chipsets vr cameras driverless cars save ambarella laplante warned vr market faces slowerthanexpected growth year pacific crest analyst brad erickson also estimated ambarellas computer vision chips autonomous cars probably wouldnt generate significant revenue three four years ambarellas margins also deteriorating second quarters fiscal 2017 2018 ambarellas nongaap gross margin dropped 671 63 gaap gross margin fell 656 632160ambarella attributed decline expansion lowermargin security camera soc market china faces tough competition cheaper chinese chipmakers ambarellas total operating expenses also rose 15 annually led 16 jump rampd costs result operating margin contracted 14 7 figure keep dropping ambarellas rising expenses keep outpacing revenue growth ambarellas main strategy keep investing rampd retain reputation best breed provider image processing socs means bigger investments cv1 computer vision chip could power autonomous drones cars better panoramic technologies security cameras also striking deals drone makers reduce dependence dji partnering automakers provide socs integrated dash cams smart moves dont guarantee survival bigger foes like qualcomm cheaper chinese chipmakers ambarella also buying back lot stock spent 299 million last quarter buying back 595770 shares poorly timed stock plummeted 22 second quarter earnings report aug 31 moreover insiders dont seem confident ambarellas prospects sold 153000 shares past 12 months didnt buy single share open market ive told investors avoid ambarella opens new window opinion hasnt changed personally admire ceo fermi wang development opens new window video compression codecs toptier image processing socs but160ambarellas business model fundamentally flawed relies heavily major customers questionable loyalties primary markets action cameras drones losing momentum margins crumbling think bestcase scenario ambarella would buyout doubt suitors appear current valuations 10 stocks like better ambarellawhen 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 ambarella wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns september 5 2017 leo sun opens new window owns shares qualcomm motley fool owns shares recommends ambarella gopro motley fool owns shares qualcomm following options short january 2019 12 calls gopro long january 2019 12 puts gopro motley fool disclosure policy opens new window | 604 |
<p />
<p>Friday's a big day for Tesla shareholders -- but you wouldn't know it from the stock price. This morning, analysts at investment banker <a href="http://caps.fool.com/player/tracksterneagee.aspx?source=eptfxblnk0000004" type="external">Sterne Agee Opens a New Window.</a> finally published an opinion on Tesla Motors.</p>
<p>Continue Reading Below</p>
<p>I won't keep you in suspense: They like the stock. Initiating coverage with a buy rating, Sterne Agee predicted that Tesla shares could hit $300 within a year. Calculated from today's opening price of $220, that works out to a potential 36% profit for new buyers.</p>
<p>Surprisingly, Tesla stock has hardly reacted at all to the new rating, however. It's up only 1% so far this morning. Now investors want to know where the other 35% will come from.</p>
<p>Here are three things you need to know to figure that out.</p>
<p>Tesla's Model S -- the car that finally put Tesla stock in the fast lane. Image source: <a href="https://www.teslamotors.com/models" type="external">Tesla Motors Opens a New Window.</a>.</p>
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<p>First and foremost, it's important for Tesla stockholders to know that Sterne Agee doesn't predict a straight 45-degree climb for Tesla stock. "Interim swings could trade it from point A down to point B (e.g., stock has shown high correlation to oil prices)," warns Sterne. "But ultimately," the analyst still predicts "a much higher point C" for Tesla stock. A price point of $300, to be precise.</p>
<p>Why is that?</p>
<p>Quoting from the write-up on <a href="http://www.streetinsider.com/Analyst+Comments/Tesla+%28TSLA%29+Will+Ultimately+Trade+Much+Higher%2C+Says+Sterne+Agee+CRT%3B+Coverage+Initiated+at+Buy/11703792.html" type="external">StreetInsider.com Opens a New Window.</a> this morning, Sterne's report calls Tesla stock "controversial, expensive and risky." But the analyst nonetheless sees a path forward to eventual profits for the stock, and for its investors as well. Here's how Sterne sees it happening.</p>
<p>Start with where we are today: Tesla racked up $4.2 billion in sales over the past year, and $1 billion in losses. That's already a big change from the company that, when we first started covering it, had managed to put just <a href="http://www.fool.com/investing/high-growth/2011/02/16/vroom-vroom-tesla-revs-up.aspx?source=eptfxblnk0000004" type="external">a few hundred electric Roadsters Opens a New Window.</a> on the road. But Sterne sees even bigger numbers in Tesla's future.</p>
<p>As Sterne calculates it, money from Tesla's 400,000-plus pre-orders for the new $35,000 Tesla Model 3 sedan, plus thousands more sales of higher-priced Model S and X units, should more than double the company's revenue haul to $9 billion this year, and then more than triple it to $32 billion three years from now. By 2018, Sterne sees Tesla selling 500,000 cars annually, and earning more than $10 per share. One year later, profits could soar as high as $17 per share.</p>
<p>At that point, the math gets really simple. Assume Sterne Agee is right about the $10 per share in 2018 profits. Admittedly, that's a big assumption, but if correct, it means that at today's share price of $220, Tesla stock costs 22 times what it will earn two years from now. Assume the analyst is also right about earnings growing from $10 to $17 per share in 2019 -- that's 70% growth.</p>
<p>Paying a 22 P/E for 70% growth is cheap. Accordingly, Sterne Agee says Tesla is a buy.</p>
<p>If you think there's any chance at all of Sterne Agee being right about Tesla hitting 500,000 cars sold annually in 2018, and earning $10 a share that year, it almost seems crazy not to buy Tesla stock at today's prices. Fact is, if Tesla hits that benchmark, the company could grow only half as fast as Sterne is predicting in 2019 (i.e., $13.50 per share), slowing the growth rate to 35%, and at 22 times earnings, Tesla stock would still be cheap.</p>
<p>The kicker, of course, is that you have to take it on faith that Sterne is correctly seeing the future, and is right about a stock that currently earns no profits at all (and that according to <a href="https://www.capitaliq.com/" type="external">S&amp;P Global Market Intelligence Opens a New Window.</a>, never has) suddenly turning wildly profitable two years from now.</p>
<p>That's a remarkably tight turn that Sterne is predicting, even for a superb automaker. Meanwhile, Ford stock is selling for just 6 times earnings that it has already made, and General Motors is selling for less than 5 times trailing earnings.</p>
<p>Granted, neither Ford nor General Motors is as sexy as Tesla stock, and neither of these rivals is projected to grow as fast as the electric-auto pioneer. But both Ford and GM sell for single-digit P/E ratios, boast double-digit projected growth rates, and are earning profits today, rather than just two years from now (and hypothetically, to boot).</p>
<p>In short, if you want to ignore Sterne Agee's advice and buy Ford or GM instead of Tesla, I wouldn't blame you a bit.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/03/buy-tesla-stock-for-a-36-profit-3-things-you-need.aspx" type="external">Buy Tesla Stock for a 36% Profit? 3 Things You Need to Know Opens a New Window.</a> originally appeared on Fool.com.</p>
<p>Fool contributor <a href="http://my.fool.com/profile/TMFDitty/info.aspx?source=eptfxblnk0000004" type="external">Rich Smith Opens a New Window.</a>does not own shares of, nor is he short, any company named above. You can find him on <a href="http://caps.fool.com/?source=eptfxblnk0000004" type="external">Motley Fool CAPS Opens a New Window.</a>, publicly pontificating under the handle <a href="http://caps.fool.com/ViewPlayer.aspx?t=01002844399633209838&amp;source=eptfxblnk0000004" type="external">TMFDitty Opens a New Window.</a>, where he's currently ranked No. 310 out of more than 75,000 rated members.The Motley Fool owns shares of and recommendsboth Ford and Tesla Motors. The Motley Fool also 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 | fridays big day tesla shareholders wouldnt know stock price morning analysts investment banker sterne agee opens new window finally published opinion tesla motors continue reading wont keep suspense like stock initiating coverage buy rating sterne agee predicted tesla shares could hit 300 within year calculated todays opening price 220 works potential 36 profit new buyers surprisingly tesla stock hardly reacted new rating however 1 far morning investors want know 35 come three things need know figure teslas model car finally put tesla stock fast lane image source tesla motors opens new window advertisement first foremost important tesla stockholders know sterne agee doesnt predict straight 45degree climb tesla stock interim swings could trade point point b eg stock shown high correlation oil prices warns sterne ultimately analyst still predicts much higher point c tesla stock price point 300 precise quoting writeup streetinsidercom opens new window morning sternes report calls tesla stock controversial expensive risky analyst nonetheless sees path forward eventual profits stock investors well heres sterne sees happening start today tesla racked 42 billion sales past year 1 billion losses thats already big change company first started covering managed put hundred electric roadsters opens new window road sterne sees even bigger numbers teslas future sterne calculates money teslas 400000plus preorders new 35000 tesla model 3 sedan plus thousands sales higherpriced model x units double companys revenue haul 9 billion year triple 32 billion three years 2018 sterne sees tesla selling 500000 cars annually earning 10 per share one year later profits could soar high 17 per share point math gets really simple assume sterne agee right 10 per share 2018 profits admittedly thats big assumption correct means todays share price 220 tesla stock costs 22 times earn two years assume analyst also right earnings growing 10 17 per share 2019 thats 70 growth paying 22 pe 70 growth cheap accordingly sterne agee says tesla buy think theres chance sterne agee right tesla hitting 500000 cars sold annually 2018 earning 10 share year almost seems crazy buy tesla stock todays prices fact tesla hits benchmark company could grow half fast sterne predicting 2019 ie 1350 per share slowing growth rate 35 22 times earnings tesla stock would still cheap kicker course take faith sterne correctly seeing future right stock currently earns profits according sampp global market intelligence opens new window never suddenly turning wildly profitable two years thats remarkably tight turn sterne predicting even superb automaker meanwhile ford stock selling 6 times earnings already made general motors selling less 5 times trailing earnings granted neither ford general motors sexy tesla stock neither rivals projected grow fast electricauto pioneer ford gm sell singledigit pe ratios boast doubledigit projected growth rates earning profits today rather two years hypothetically boot short want ignore sterne agees advice buy ford gm instead tesla wouldnt blame bit article buy tesla stock 36 profit 3 things need know opens new window originally appeared foolcom fool contributor rich smith opens new windowdoes shares short company named find motley fool caps opens new window publicly pontificating handle tmfditty opens new window hes currently ranked 310 75000 rated membersthe motley fool owns shares recommendsboth ford tesla motors motley fool also 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 | 579 |
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<p>Sierra Wireless Inc. (NASDAQ: SWIR) is set to release fiscal fourth-quarter 2016 results on Thursday, Feb. 9, 2017. With its shares up 35% over the past three months following its stellar third-quarter report in November, you can be sure the market will be listening closely to what the Internet of Things pure play has to say. Let's take a closer look at what to watch this time around.</p>
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<p>IMAGE SOURCE: Sierra Wireless, Inc.</p>
<p>For perspective, Sierra Wireless' latest guidance, <a href="https://www.fool.com/investing/2016/11/04/sierra-wireless-connects-with-another-solid-quarte.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">provided three months ago Opens a New Window.</a>, calls for fourth-quarter revenue in the range of $157 million to $166 million, the midpoint of which represents 11.5% year-over-year growth. On the bottom line, Sierra Wireless told investors to expect adjusted earnings per share of $0.13 to $0.19.</p>
<p>By comparison -- and though we don't usually pay close attention to Wall Street's quarterly demands -- analysts are generally on board with that guidance, with consensus estimates predicting fourth-quarter revenue of $161.1 million and adjusted earnings of $0.16 per share.</p>
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<p>But Sierra Wireless' business is about more than just revenue and earnings. The company will also break down those results into three primary segments, including OEM solutions, enterprise solutions, and cloud and connectivity services.</p>
<p>In these early stages of growth, the performance of Sierra Wireless' large OEM solutions segment is particularly important. Considering that a slowdown in demand from existing OEM customers because of macroeconomic concerns held back OEM solutions' growth last year, I singled it out last month as by far the company's <a href="https://www.fool.com/investing/2017/01/10/sierra-wireless-most-disappointing-segment-2016.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">most disappointing segment Opens a New Window.</a> in 2016. Revenue from this core segment fell 2.2% year over year last quarter, to $127.8 million, but it still comprised more than 83% of total sales. Pay attention, then, for updates on whether demand from these customers has picked up, as well as how well contributions from both acquisitions and newer OEM solutions customers have served to offset any remaining softness.</p>
<p>Next, the smaller enterprise solutions segment has fared better of late, with revenue last quarter climbing 6.8% year over year, to $18.9 million, even despite a difficult comparison with what management described as an "exceptionally strong" third quarter of 2015. But that rise was partially credited to contributions from Sierra Wireless' recent acquisition of in-vehicle cellular-device provider GenX Mobile, without which enterprise solutions revenue would have seen a slight decline.</p>
<p>Relatedly, sales from Sierra Wireless' newer cloud and connectivity services business were included under enterprise solutions up until late 2015 -- that is, until it started to materially contribute to consolidated results and merited separating into its own segment. Cloud and connectivity services revenue climbed 10.7% last quarter, to $6.9 million, thanks to strong new customer acquisitions, increases in recurring service contracts, and capitalizing on bundling opportunities with Sierra Wireless' other hardware-centric business segments. As such, we should listen closely for whether the company has sustained its momentum in all three of these areas.</p>
<p>Finally, I want to hear updates on the progress of Sierra Wireless' latest business initiatives to drive longer-term growth. For example, Sierra Wireless <a href="https://www.fool.com/investing/2016/11/10/5-things-sierra-wireless-inc-management-wants-you.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">management told investors Opens a New Window.</a>last quarterthat the company would begin working with AT&amp;T, Verizon, and a number of leading OEMs to pilot their next-gen LTE-M network technologies, which offer lower costs for gateway modules to LTE networks, longer battery life, and superior LTE coverage in hard-to-reach areas. In turn, success in these early tests could mean Sierra Wireless has a front-row seat enabling Internet of Things connectivity with industrial, wearable, and smart city internet-connected products.</p>
<p>Looking forward -- and if its <a href="http://www.fool.com/investing/general/2016/02/04/sierra-wireless-inc-drops-its-signal-amid-macro-he.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">fourth-quarter report last year Opens a New Window.</a> is any indication -- Sierra Wireless should offer specific revenue and earnings guidance for both the (current) first quarter and full year of 2017. This should come with general comments on the underlying drivers of that guidance, including expected business trends and primary contributors for each of its segments.</p>
<p>For perspective, considering any large deviations from Wall Street's expectations can cause big (even if temporary) swings in the stock price, consensus estimates predict that Sierra Wireless will turn in first-quarter revenue of $155.8 million (up 9.1% year over year), and adjusted earnings of $0.12 per share (up from $0.08 per share in Q1 2016). Analysts are also modeling full-year 2017 revenue of $660.9 million, with adjusted earnings of $0.72 per share.</p>
<p>Investors will need to wait until next week to see whether Sierra Wireless lives up to those expectations. But if Sierra Wireless is able to sustain last quarter's momentum as it heads into 2017, I suspect the stock will have plenty of room to rise from here.</p>
<p>10 stocks we like better than Sierra Wireless 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/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 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 | sierra wireless inc nasdaq swir set release fiscal fourthquarter 2016 results thursday feb 9 2017 shares 35 past three months following stellar thirdquarter report november sure market listening closely internet things pure play say lets take closer look watch time around continue reading image source sierra wireless inc perspective sierra wireless latest guidance provided three months ago opens new window calls fourthquarter revenue range 157 million 166 million midpoint represents 115 yearoveryear growth bottom line sierra wireless told investors expect adjusted earnings per share 013 019 comparison though dont usually pay close attention wall streets quarterly demands analysts generally board guidance consensus estimates predicting fourthquarter revenue 1611 million adjusted earnings 016 per share advertisement sierra wireless business revenue earnings company also break results three primary segments including oem solutions enterprise solutions cloud connectivity services early stages growth performance sierra wireless large oem solutions segment particularly important considering slowdown demand existing oem customers macroeconomic concerns held back oem solutions growth last year singled last month far companys disappointing segment opens new window 2016 revenue core segment fell 22 year year last quarter 1278 million still comprised 83 total sales pay attention updates whether demand customers picked well well contributions acquisitions newer oem solutions customers served offset remaining softness next smaller enterprise solutions segment fared better late revenue last quarter climbing 68 year year 189 million even despite difficult comparison management described exceptionally strong third quarter 2015 rise partially credited contributions sierra wireless recent acquisition invehicle cellulardevice provider genx mobile without enterprise solutions revenue would seen slight decline relatedly sales sierra wireless newer cloud connectivity services business included enterprise solutions late 2015 started materially contribute consolidated results merited separating segment cloud connectivity services revenue climbed 107 last quarter 69 million thanks strong new customer acquisitions increases recurring service contracts capitalizing bundling opportunities sierra wireless hardwarecentric business segments listen closely whether company sustained momentum three areas finally want hear updates progress sierra wireless latest business initiatives drive longerterm growth example sierra wireless management told investors opens new windowlast quarterthat company would begin working atampt verizon number leading oems pilot nextgen ltem network technologies offer lower costs gateway modules lte networks longer battery life superior lte coverage hardtoreach areas turn success early tests could mean sierra wireless frontrow seat enabling internet things connectivity industrial wearable smart city internetconnected products looking forward fourthquarter report last year opens new window indication sierra wireless offer specific revenue earnings guidance current first quarter full year 2017 come general comments underlying drivers guidance including expected business trends primary contributors segments perspective considering large deviations wall streets expectations cause big even temporary swings stock price consensus estimates predict sierra wireless turn firstquarter revenue 1558 million 91 year year adjusted earnings 012 per share 008 per share q1 2016 analysts also modeling fullyear 2017 revenue 6609 million adjusted earnings 072 per share investors need wait next week see whether sierra wireless lives expectations sierra wireless able sustain last quarters momentum heads 2017 suspect stock plenty room rise 10 stocks like better sierra wireless 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 sierra wireless wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 steve symington opens new window position stocks mentioned motley fool owns shares recommends sierra wireless motley fool disclosure policy opens new window | 579 |
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<p>Image source: McDonald's.</p>
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<p>Income investors look to dividend stocks not just for their regular cash payouts but also for their growth potential. The best dividend stocks provide stability to a portfolio while also retaining the opportunity to offer share-price appreciation as well. Below, we'll look at three dividend stocks that offer a combination of attractive traits that any investors can appreciate.</p>
<p><a href="http://my.fool.com/profile/TMFDirtyBird/info.aspx" type="external">Tyler Crowe: Opens a New Window.</a>The movement of goods may wax and wane over time, but one thing that hasn't changed is the most efficient way to move goods is via rail. The averagerevenue per ton-mile -- the most cost comparative metric for moving goods -- for rail is less than one-sixth the cost via trucks and a tiny fraction of air freight costs. Until we build some sort of Star Trek-esque transporter, rail will continue to be the most cost-effective means to move goods and will be around for decades to come. That bodes very well for Canadian National Railway (NYSE: CNI) and its 20,000 route miles of track that touches ports on all three major coastlines in North America.</p>
<p>Image source: Canadian National Railway.</p>
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<p>While those competitive advantages work well for the business, Canadian National works well for shareholders by focusing on operational deficiencies such as minimized downtime in rail yards and optimized horsepower use. These sorts of things all lead to better bottom-line results that Canadian National has transformed into a strong platform for paying an ever-increasing dividend. While today's dividend yield of 1.7% isn't going to have investors jumping for joy, it has grown its dividend at a 17.7% annual rate for the past decade. If you are looking for a solid dividend with room to grow, then Canadian National should be on your list.</p>
<p><a href="http://my.fool.com/profile/TMFGalagan/info.aspx" type="external">Dan Caplinger Opens a New Window.</a>: Many investors are worried about how much longer the bull market in stocks can continue, and in the past, certain dividend stocks have stood out from the crowd in providing protection against market downturns. McDonald's (NYSE: MCD) is one of the best examples, because it was one of the few stocks that actually managed to gain ground during the terrible market year in 2008, when the S&amp;P 500 fell by 37%. At the time, the fact that the economy had gone into recession was arguably good news for the fast-food giant, because consumers wanted to trade down from higher-priced casual-dining restaurants, and McDonald's emphasis on value meals and other low-priced options appealed to families who were tightening their purse strings.</p>
<p>From a dividend perspective, McDonald's has one of the best track records in the stock market. The company has boosted its dividend payout every single year for more than four decades, and its current yield of 3.3% puts it in the upper echelon of stocks in the Dow Jones Industrials. It's true that competition in the fast-food space is fierce, and McDonald's initiatives to emphasis hot beverages have pushed it into direct conflict with coffee specialists. Nevertheless, McDonald's has shown in the past that it can withstand tough times, and the stock could make a good foundation for a rock-solid dividend portfolio.</p>
<p><a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx" type="external">Jason Opens a New Window.</a> <a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx" type="external">Hall Opens a New Window.</a>: I have to admit I'm disgusted by what has happened withWells Fargo &amp; Co.(NYSE: WFC), and I agree wholeheartedly with my colleague and banking expert John Maxfield, that the bank needs a change of leadership <a href="http://www.fool.com/investing/2016/10/10/this-is-the-last-straw-wells-fargo-ceo-john-stumpf.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">at the very top Opens a New Window.</a>. But at the same time, I'm not selling my shares, and I don't think selling now makes sense.</p>
<p>To the contrary, now seems like the time to buy Wells Fargo. Here's why this contrarian move makes sense to me right now:</p>
<p>Yes, the actions that Wells Fargo bank employees have undertaken over the past decade or so -- opening millions of unauthorized accounts in order to generate higher revenues for the bank -- is abhorrent. But the bank is moving forward to fix these mistakes, and will refund millions of dollars to customers who were charged fees related to these accounts.Furthermore, from a financial standpoint, the fallout of this huge mistake isn't likely to be much more than a blip on the radar for the company's earnings, and largely because these accounts weren't generating a lot of revenue for the bank to begin with.</p>
<p>At the same time, the aspect of Wells that I have admired for years is largely unaffected: its rock-solid, conservative lending practices that have allowed it to consistently ride out economic downturns in fine form, while many of its peers lost billions from bad loans. And this consistency of responsible lending is why Wells is yielding over 3% at recent prices, and one of the few big banks paying a bigger dividend today than it was before the Great Recession.</p>
<p>There will surely be more repercussions from the unauthorized account scandal. But its loan business remains strong and conservative, and dividend investors would do well to consider Wells Fargo today.</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=2692&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</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/elihpaudio/info.aspx" type="external">Jason Hall Opens a New Window.</a> owns shares of Wells Fargo. <a href="http://my.fool.com/profile/TMFDirtyBird/info.aspx" type="external">Tyler Crowe</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Canadian National Railway and Wells Fargo. The Motley Fool has the following options: short October 2016 $50 calls on Wells Fargo. 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 mcdonalds continue reading income investors look dividend stocks regular cash payouts also growth potential best dividend stocks provide stability portfolio also retaining opportunity offer shareprice appreciation well well look three dividend stocks offer combination attractive traits investors appreciate tyler crowe opens new windowthe movement goods may wax wane time one thing hasnt changed efficient way move goods via rail averagerevenue per tonmile cost comparative metric moving goods rail less onesixth cost via trucks tiny fraction air freight costs build sort star trekesque transporter rail continue costeffective means move goods around decades come bodes well canadian national railway nyse cni 20000 route miles track touches ports three major coastlines north america image source canadian national railway advertisement competitive advantages work well business canadian national works well shareholders focusing operational deficiencies minimized downtime rail yards optimized horsepower use sorts things lead better bottomline results canadian national transformed strong platform paying everincreasing dividend todays dividend yield 17 isnt going investors jumping joy grown dividend 177 annual rate past decade looking solid dividend room grow canadian national list dan caplinger opens new window many investors worried much longer bull market stocks continue past certain dividend stocks stood crowd providing protection market downturns mcdonalds nyse mcd one best examples one stocks actually managed gain ground terrible market year 2008 sampp 500 fell 37 time fact economy gone recession arguably good news fastfood giant consumers wanted trade higherpriced casualdining restaurants mcdonalds emphasis value meals lowpriced options appealed families tightening purse strings dividend perspective mcdonalds one best track records stock market company boosted dividend payout every single year four decades current yield 33 puts upper echelon stocks dow jones industrials true competition fastfood space fierce mcdonalds initiatives emphasis hot beverages pushed direct conflict coffee specialists nevertheless mcdonalds shown past withstand tough times stock could make good foundation rocksolid dividend portfolio jason opens new window hall opens new window admit im disgusted happened withwells fargo amp conyse wfc agree wholeheartedly colleague banking expert john maxfield bank needs change leadership top opens new window time im selling shares dont think selling makes sense contrary seems like time buy wells fargo heres contrarian move makes sense right yes actions wells fargo bank employees undertaken past decade opening millions unauthorized accounts order generate higher revenues bank abhorrent bank moving forward fix mistakes refund millions dollars customers charged fees related accountsfurthermore financial standpoint fallout huge mistake isnt likely much blip radar companys earnings largely accounts werent generating lot revenue bank begin time aspect wells admired years largely unaffected rocksolid conservative lending practices allowed consistently ride economic downturns fine form many peers lost billions bad loans consistency responsible lending wells yielding 3 recent prices one big banks paying bigger dividend today great recession surely repercussions unauthorized account scandal loan business remains strong conservative dividend investors would well consider wells fargo today 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 position stocks mentioned jason hall opens new window owns shares wells fargo tyler crowe position stocks mentioned motley fool owns shares recommends canadian national railway wells fargo motley fool following options short october 2016 50 calls wells fargo 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 | 586 |
<p>Gilead Sciences Inc. has agreed to pay about $11 billion for Kite Pharma Inc. and its promising new technology for harnessing the body's immune system to fight cancer, according to people familiar with the matter.</p>
<p>Gilead will pay $180 a share, the people said, representing a 29% premium over Kite's closing price Friday. The all-cash deal, to be announced Monday, would give Gilead a foothold in a new type of personalized treatment that doctors say could save patients with the most dire cases of cancer and analysts estimate would ring up billions of dollars in sales.</p>
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<p>Gilead, of Foster City, Calif., had been looking for an acquisition to diversify its portfolio beyond its leading position in infectious-disease treatments and provide a new revenue stream as sales of the company's hepatitis C drugs decline.</p>
<p>The deal for Kite would be one of Gilead's biggest, rivaling the company's $11 billion purchase of liver-disease drugmaker Pharmasset in 2012. Through that acquisition, Gilead gained hepatitis C therapies that are among the world's top-selling drugs.</p>
<p>Now Gilead is betting that Kite can provide a similar payoff. Kite, of Santa Monica, Calif., is a leader among several companies that aim to use genetic engineering to weaponize a patient's own immune T cells and then deploy them to attack lymphoma and other blood cancers.</p>
<p>Kite's main drug, known as axi-cel, is up for approval in the U.S. and Europe. Analysts predict it would have world-wide sales of $1.7 billion in 2022, according to EvaluatePharma, which ranks the drug among the industry's top 10 compounds in terms of sales potential. Such expectations have already pushed the company's shares sharply higher this year.</p>
<p>Axi-cel is likely to face swift, steep competition. Novartis AG, one of the leading cancer-drug makers, beat Kite to be the first company to ask the Food and Drug Administration to approve a bioengineered T-cell drug. Several other companies are developing the drugs too.</p>
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<p>Gilead made its name selling treatments for HIV/AIDS. The biotech company surged in value after launching the hepatitis C treatments developed at Pharmasset. The drugs, Sovaldi and Harvoni, helped Gilead double its sales in 2014. It now has a market value of roughly $100 billion.</p>
<p>Last year Gilead had $30 billion in sales, including $9.1 billion from Harvoni and $4 billion from Sovaldi.</p>
<p>Yet the anti-viral drugs' commercial success has also proved to be an albatross. Gilead faced public criticism and a Senate investigation for listing Sovaldi at $1,000 a day, even though the therapy cured most patients at a cost of less than a liver transplant.</p>
<p>The hepatitis C drugs' sales were squeezed in recent years when Merck &amp; Co. launched a rival treatment, forcing Gilead to offer steep discounts to health plans. And partly because of the drugs' success curing the disease, fewer patients needed treatment.</p>
<p>The company's second-quarter hepatitis C drug sales fell to $2.9 billion world-wide, down from $4 billion during the period a year earlier.</p>
<p>Gilead has faced pressure from investors and analysts to find new revenue sources. Management responded by touting its next generation of HIV/AIDS treatments as well as drugs in development to treat a liver disease known as NASH, for nonalcoholic steatohepatitis.</p>
<p>But Wall Street said Gilead needed to do another deal. Gilead fanned speculation by hiring Alessandro Riva from Novartis to run its hematology and oncology division, as well as its former adviser, investment banker Andrew Dickinson, from Lazard.</p>
<p>After years of surging volume, pharmaceutical deal making has been slow this year, with very few megamergers aside from Johnson &amp; Johnson's r oughly $30 billion deal to buy Actelion Ltd. Drug companies have been digesting earlier acquisitions and have also been hampered by uncertainty surrounding tax reform because many of them have large amounts of cash overseas.</p>
<p>The deal is expected to close in the fourth quarter, around the same time as the deadline for U.S. approval of Kite's main drug, according to the people familiar with the matter.</p>
<p>--Dana Mattioli contributed to this article.</p>
<p>Write to Jonathan D. Rockoff at [email protected]</p>
<p>Gilead Sciences Inc. has agreed to pay about $11 billion for Kite Pharma Inc. and its promising new technology for harnessing the body's immune system to fight cancer.</p>
<p>Gilead will pay $180 a share, representing a 29% premium over Kite's closing price Friday. The all-cash deal would give Gilead a foothold in a new type of personalized treatment that doctors say could save patients with the most dire cases of cancer and analysts estimate would ring up billions of dollars in sales.</p>
<p>Shares in Kite rose nearly 29% to $179 in premarket trading. The Wall Street Journal reported earlier Monday about Gilead's deal to buy Kite.</p>
<p>Gilead, of Foster City, Calif., had been looking for an acquisition to diversify its portfolio beyond its leading position in infectious-disease treatments and provide a new revenue stream as sales of the company's hepatitis C drugs decline.</p>
<p>The deal for Kite would be one of Gilead's biggest, rivaling the company's $11 billion purchase of liver-disease drugmaker Pharmasset in 2012. Through that acquisition, Gilead gained hepatitis C therapies that are among the world's top-selling drugs.</p>
<p>Now Gilead is betting that Kite can provide a similar payoff. Kite, of Santa Monica, Calif., is a leader among several companies that aim to use genetic engineering to weaponize a patient's own immune T cells and then deploy them to attack lymphoma and other blood cancers.</p>
<p>Kite's main drug, known as axi-cel, is up for approval in the U.S. and Europe. Analysts predict it would have world-wide sales of $1.7 billion in 2022, according to EvaluatePharma, which ranks the drug among the industry's top 10 compounds in terms of sales potential. Such expectations have already pushed the company's shares sharply higher this year.</p>
<p>"This technology is really going to be transformative to the field," Gilead CEO John Milligan said in an interview.</p>
<p>Axi-cel is likely to face swift, steep competition. Novartis AG, one of the leading cancer-drug makers, beat Kite to be the first company to ask the Food and Drug Administration to approve a bioengineered T-cell drug. Several other companies are developing the drugs too.</p>
<p>Dr. Milligan said Gilead is accustomed to operating in competitive drug markets. He said Kite's technology could be used beyond its initial focus on an advanced form of lymphoma to other blood cancers including multiple myeloma and perhaps in combination with other immunotherapies.</p>
<p>Some of the drugs various companies were working on have produced serious, even deadly, side effects during development. Dr. Milligan said doctors have learned how cut the risk of side effects, and Gilead and Kite would work on developing improved treatments.</p>
<p>Gilead made its name selling treatments for HIV/AIDS. The biotech company surged in value after launching the hepatitis C treatments developed at Pharmasset. The drugs, Sovaldi and Harvoni, helped Gilead double its sales in 2014. It now has a market value of roughly $100 billion.</p>
<p>Last year Gilead had $30 billion in sales, including $9.1 billion from Harvoni and $4 billion from Sovaldi.</p>
<p>Yet the anti-viral drugs' commercial success has also proved to be an albatross. Gilead faced public criticism and a Senate investigation for listing Sovaldi at $1,000 a day, even though the therapy cured most patients at a cost of less than a liver transplant.</p>
<p>The hepatitis C drugs' sales were squeezed in recent years when Merck &amp; Co. launched a rival treatment, forcing Gilead to offer steep discounts to health plans. And partly because of the drugs' success curing the disease, fewer patients needed treatment.</p>
<p>The company's second-quarter hepatitis C drug sales fell to $2.9 billion world-wide, down from $4 billion during the period a year earlier.</p>
<p>Gilead has faced pressure from investors and analysts to find new revenue sources. Management responded by touting its next generation of HIV/AIDS treatments as well as drugs in development to treat a liver disease known as NASH, for nonalcoholic steatohepatitis.</p>
<p>But Wall Street said Gilead needed to do another deal. Gilead fanned speculation by hiring Alessandro Riva from Novartis to run its hematology and oncology division, as well as its former adviser, investment banker Andrew Dickinson, from Lazard.</p>
<p>After years of surging volume, pharmaceutical deal making has been slow this year, with very few megamergers aside from Johnson &amp; Johnson's r oughly $30 billion deal to buy Actelion Ltd. Drug companies have been digesting earlier acquisitions and have also been hampered by uncertainty surrounding tax reform because many of them have large amounts of cash overseas.</p>
<p>Dr. Milligan said Gilead had been eyeing Kite for months and decided to make a move after Kite asked the FDA to approve axi-cel and Gilead watched the performance of drugs from Novartis and others.</p>
<p>Deal talks began in earnest during a dinner in June at the home of Kite CEO Arie Belldegrun overlooking the University of California, Los Angeles, campus where he also teaches and practices medicine.</p>
<p>Dr. Milligan said Gilead realized the deal comprised not only axi-cel but the technology for developing other cell-therapy cancer drugs. "We see it as a nice, sustainable oncology platform for decades to come," he said.</p>
<p>The deal is expected to close in the fourth quarter, around the same time as the deadline for U.S. approval of Kite's main drug.</p>
<p>Dr. Milligan said Dr. Belldegrun would help with the transition to new ownership and that Gilead would retain "nearly all" Kite's employees.</p>
<p>--Dana Mattioli contributed to this article.</p>
<p>Write to Jonathan D. Rockoff at [email protected]</p>
<p>Gilead Sciences Inc. on Monday agreed to pay about $11 billion for Kite Pharma Inc., an ambitious bet on a new type of cancer therapy that is on the brink of becoming commercially available in the U.S.</p>
<p>Doctors say Kite's main treatment, which is up for regulatory approval in the U.S. and Europe, could drastically improve treatment of patients with some of the most advanced cases of cancer. EvaluatePharma expects Kite's therapy to generate sales of $1.7 billion world-wide in 2022.</p>
<p>"This technology is really going to be transformative to the field," Gilead CEO John Milligan said in an interview.</p>
<p>The new breed of treatments, known as CAR-T -- or chimeric antigen receptor T-cell -- therapy, work by extracting a cancer patient's T-cells, a type of immune cell. The T-cells are then genetically modified outside the body to make them more effective at hunting down and killing tumors, and then re-injected into the patient.</p>
<p>Several other companies also are developing CAR-T treatments -- including Switzerland's Novartis AG, which already won a key regulatory nod in the U.S. earlier this year, and is expected very soon to get the first official green light to start offering the treatment.</p>
<p>Gilead, of Foster City, Calif., had been looking for an acquisition to diversify its portfolio beyond its leading position in infectious-disease treatments and provide a new revenue stream as sales of the company's hepatitis C drugs decline.</p>
<p>The deal for Kite, of Santa Monica, Calif., would be one of Gilead's biggest, on a par with the company's $11 billion purchase of liver-disease drugmaker Pharmasset in 2012. Through that acquisition, Gilead gained hepatitis C therapies that are among the world's top-selling drugs.</p>
<p>Now Gilead is betting that Kite can provide a similar payoff. Dr. Milligan said Kite's technology could be used beyond its initial focus on an advanced form of lymphoma to other blood cancers including multiple myeloma and perhaps in combination with other immunotherapies.</p>
<p>While promising, CAR-T treatments won't be like other drugs that win FDA approval, and then quickly wind up on pharmacy shelves and hospitals. The rollout of this new breed will be complicated by unresolved questions.</p>
<p>Manufacturing and delivery are more complex than for a typical drug. In the U.S., only a few dozen specialized hospitals are currently qualified to provide CAR-T treatments, which require retrieving, processing and then returning immune cells to the patient, as well as monitoring side effects. Novartis expects between 30 and 35 centers to be certified to offer the treatment by the end of the year.</p>
<p>Some of the therapies that various companies were working on have produced serious, even deadly, side effects during development. Dr. Milligan said doctors have learned how to cut the risk of side effects, and Gilead and Kite would work on developing improved treatments.</p>
<p>Expense could also present a hurdle: A study by England's National Institute for Health and Care Excellence, an official body that analyzes the cost-effectiveness of medical treatment, said CAR-T procedures could command a price of up to GBP528,600 (about $681,000).</p>
<p>The cost is similar to the total costs of some other cancer therapies taken over the course of several years, according to Stephan Grupp, who was part of the team that first developed Novartis's treatment at the University of Pennsylvania. But CAR-T therapy is conducted only once, creating a comparatively steep one-time payment.</p>
<p>Novartis hasn't yet disclosed the price it plans to charge for its treatment, called CTL019, which has been shown to dramatically raise the chances of survival for children and young people with leukemia who don't respond to standard treatment, or who suffer a relapse.</p>
<p>So far, CAR-T therapies have been tested only on certain types of blood cancer. Kite Pharma's leading CAR-T treatment, known as axi-cel, is aimed at patients with aggressive non-Hodgkin lymphoma, for whom standard therapy has failed.</p>
<p>Kite and Novartis are both investigating several more CAR-T therapies for various forms of blood cancer. Novartis is also conducting early-stage CAR-T trials for certain types of brain and lung tumors.</p>
<p>Dr. Milligan, Gilead's CEO, said the company had been eyeing Kite for months and decided to make a move after Kite asked the FDA to approve axi-cel and Gilead watched the performance of drugs from Novartis and others.</p>
<p>Deal talks began in earnest during a dinner in June at the home of Kite CEO Arie Belldegrun overlooking the University of California, Los Angeles, campus where he teaches and practices medicine, Dr. Milligan said.</p>
<p>"We are excited that Gilead, one of the most innovative companies in the industry, recognized this value and shares our passion for developing cutting-edge and potentially curative therapies for patients," Mr. Belldegrun said in a statement.</p>
<p>Gilead made its name selling treatments for HIV/AIDS. The biotech company surged in value after launching the hepatitis C treatments developed at Pharmasset. The drugs, Sovaldi and Harvoni, helped Gilead double its sales in 2014. It now has a market value of roughly $100 billion.</p>
<p>Last year Gilead had $30 billion in sales, including $9.1 billion from Harvoni and $4 billion from Sovaldi.</p>
<p>Yet the anti-viral drugs' commercial success has also come with some problems. Gilead faced public criticism and a Senate investigation for listing Sovaldi at $1,000 a day -- or $84,000 for a 12-week treatment -- even though the therapy cured most patients at a cost of less than a liver transplant.</p>
<p>The hepatitis C drugs' sales were squeezed in recent years when Merck &amp; Co. launched a rival treatment, forcing Gilead to offer steep discounts to health plans. And partly because of the drugs' success curing the disease, fewer patients needed treatment.</p>
<p>The company's second-quarter hepatitis C drug sales fell to $2.9 billion world-wide, down from $4 billion during the period a year earlier.</p>
<p>Gilead has faced pressure from investors and analysts to find new revenue sources. Management responded by touting its next generation of HIV/AIDS treatments as well as drugs in development to treat a liver disease known as NASH, for nonalcoholic steatohepatitis.</p>
<p>But Wall Street said Gilead needed to do another deal. Gilead fanned speculation by hiring Alessandro Riva from Novartis to run its hematology and oncology division, as well as its former adviser, investment banker Andrew Dickinson, from Lazard Ltd.</p>
<p>Gilead's all-cash deal for Kite is expected to close in the fourth quarter, around the same time as the deadline for U.S. approval of Kite's main therapy.</p>
<p>Dr. Milligan said Dr. Belldegrun would help with the transition to new ownership and that Gilead would retain "nearly all" Kite's employees.</p>
<p>--Dana Mattioli contributed to this article.</p>
<p>Write to Jonathan D. Rockoff at [email protected] and Denise Roland at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>August 28, 2017 19:41 ET (23:41 GMT)</p> | true | 0 | gilead sciences inc agreed pay 11 billion kite pharma inc promising new technology harnessing bodys immune system fight cancer according people familiar matter gilead pay 180 share people said representing 29 premium kites closing price friday allcash deal announced monday would give gilead foothold new type personalized treatment doctors say could save patients dire cases cancer analysts estimate would ring billions dollars sales continue reading gilead foster city calif looking acquisition diversify portfolio beyond leading position infectiousdisease treatments provide new revenue stream sales companys hepatitis c drugs decline deal kite would one gileads biggest rivaling companys 11 billion purchase liverdisease drugmaker pharmasset 2012 acquisition gilead gained hepatitis c therapies among worlds topselling drugs gilead betting kite provide similar payoff kite santa monica calif leader among several companies aim use genetic engineering weaponize patients immune cells deploy attack lymphoma blood cancers kites main drug known axicel approval us europe analysts predict would worldwide sales 17 billion 2022 according evaluatepharma ranks drug among industrys top 10 compounds terms sales potential expectations already pushed companys shares sharply higher year axicel likely face swift steep competition novartis ag one leading cancerdrug makers beat kite first company ask food drug administration approve bioengineered tcell drug several companies developing drugs advertisement gilead made name selling treatments hivaids biotech company surged value launching hepatitis c treatments developed pharmasset drugs sovaldi harvoni helped gilead double sales 2014 market value roughly 100 billion last year gilead 30 billion sales including 91 billion harvoni 4 billion sovaldi yet antiviral drugs commercial success also proved albatross gilead faced public criticism senate investigation listing sovaldi 1000 day even though therapy cured patients cost less liver transplant hepatitis c drugs sales squeezed recent years merck amp co launched rival treatment forcing gilead offer steep discounts health plans partly drugs success curing disease fewer patients needed treatment companys secondquarter hepatitis c drug sales fell 29 billion worldwide 4 billion period year earlier gilead faced pressure investors analysts find new revenue sources management responded touting next generation hivaids treatments well drugs development treat liver disease known nash nonalcoholic steatohepatitis wall street said gilead needed another deal gilead fanned speculation hiring alessandro riva novartis run hematology oncology division well former adviser investment banker andrew dickinson lazard years surging volume pharmaceutical deal making slow year megamergers aside johnson amp johnsons r oughly 30 billion deal buy actelion ltd drug companies digesting earlier acquisitions also hampered uncertainty surrounding tax reform many large amounts cash overseas deal expected close fourth quarter around time deadline us approval kites main drug according people familiar matter dana mattioli contributed article write jonathan rockoff jonathanrockoffwsjcom gilead sciences inc agreed pay 11 billion kite pharma inc promising new technology harnessing bodys immune system fight cancer gilead pay 180 share representing 29 premium kites closing price friday allcash deal would give gilead foothold new type personalized treatment doctors say could save patients dire cases cancer analysts estimate would ring billions dollars sales shares kite rose nearly 29 179 premarket trading wall street journal reported earlier monday gileads deal buy kite gilead foster city calif looking acquisition diversify portfolio beyond leading position infectiousdisease treatments provide new revenue stream sales companys hepatitis c drugs decline deal kite would one gileads biggest rivaling companys 11 billion purchase liverdisease drugmaker pharmasset 2012 acquisition gilead gained hepatitis c therapies among worlds topselling drugs gilead betting kite provide similar payoff kite santa monica calif leader among several companies aim use genetic engineering weaponize patients immune cells deploy attack lymphoma blood cancers kites main drug known axicel approval us europe analysts predict would worldwide sales 17 billion 2022 according evaluatepharma ranks drug among industrys top 10 compounds terms sales potential expectations already pushed companys shares sharply higher year technology really going transformative field gilead ceo john milligan said interview axicel likely face swift steep competition novartis ag one leading cancerdrug makers beat kite first company ask food drug administration approve bioengineered tcell drug several companies developing drugs dr milligan said gilead accustomed operating competitive drug markets said kites technology could used beyond initial focus advanced form lymphoma blood cancers including multiple myeloma perhaps combination immunotherapies drugs various companies working produced serious even deadly side effects development dr milligan said doctors learned cut risk side effects gilead kite would work developing improved treatments gilead made name selling treatments hivaids biotech company surged value launching hepatitis c treatments developed pharmasset drugs sovaldi harvoni helped gilead double sales 2014 market value roughly 100 billion last year gilead 30 billion sales including 91 billion harvoni 4 billion sovaldi yet antiviral drugs commercial success also proved albatross gilead faced public criticism senate investigation listing sovaldi 1000 day even though therapy cured patients cost less liver transplant hepatitis c drugs sales squeezed recent years merck amp co launched rival treatment forcing gilead offer steep discounts health plans partly drugs success curing disease fewer patients needed treatment companys secondquarter hepatitis c drug sales fell 29 billion worldwide 4 billion period year earlier gilead faced pressure investors analysts find new revenue sources management responded touting next generation hivaids treatments well drugs development treat liver disease known nash nonalcoholic steatohepatitis wall street said gilead needed another deal gilead fanned speculation hiring alessandro riva novartis run hematology oncology division well former adviser investment banker andrew dickinson lazard years surging volume pharmaceutical deal making slow year megamergers aside johnson amp johnsons r oughly 30 billion deal buy actelion ltd drug companies digesting earlier acquisitions also hampered uncertainty surrounding tax reform many large amounts cash overseas dr milligan said gilead eyeing kite months decided make move kite asked fda approve axicel gilead watched performance drugs novartis others deal talks began earnest dinner june home kite ceo arie belldegrun overlooking university california los angeles campus also teaches practices medicine dr milligan said gilead realized deal comprised axicel technology developing celltherapy cancer drugs see nice sustainable oncology platform decades come said deal expected close fourth quarter around time deadline us approval kites main drug dr milligan said dr belldegrun would help transition new ownership gilead would retain nearly kites employees dana mattioli contributed article write jonathan rockoff jonathanrockoffwsjcom gilead sciences inc monday agreed pay 11 billion kite pharma inc ambitious bet new type cancer therapy brink becoming commercially available us doctors say kites main treatment regulatory approval us europe could drastically improve treatment patients advanced cases cancer evaluatepharma expects kites therapy generate sales 17 billion worldwide 2022 technology really going transformative field gilead ceo john milligan said interview new breed treatments known cart chimeric antigen receptor tcell therapy work extracting cancer patients tcells type immune cell tcells genetically modified outside body make effective hunting killing tumors reinjected patient several companies also developing cart treatments including switzerlands novartis ag already key regulatory nod us earlier year expected soon get first official green light start offering treatment gilead foster city calif looking acquisition diversify portfolio beyond leading position infectiousdisease treatments provide new revenue stream sales companys hepatitis c drugs decline deal kite santa monica calif would one gileads biggest par companys 11 billion purchase liverdisease drugmaker pharmasset 2012 acquisition gilead gained hepatitis c therapies among worlds topselling drugs gilead betting kite provide similar payoff dr milligan said kites technology could used beyond initial focus advanced form lymphoma blood cancers including multiple myeloma perhaps combination immunotherapies promising cart treatments wont like drugs win fda approval quickly wind pharmacy shelves hospitals rollout new breed complicated unresolved questions manufacturing delivery complex typical drug us dozen specialized hospitals currently qualified provide cart treatments require retrieving processing returning immune cells patient well monitoring side effects novartis expects 30 35 centers certified offer treatment end year therapies various companies working produced serious even deadly side effects development dr milligan said doctors learned cut risk side effects gilead kite would work developing improved treatments expense could also present hurdle study englands national institute health care excellence official body analyzes costeffectiveness medical treatment said cart procedures could command price gbp528600 681000 cost similar total costs cancer therapies taken course several years according stephan grupp part team first developed novartiss treatment university pennsylvania cart therapy conducted creating comparatively steep onetime payment novartis hasnt yet disclosed price plans charge treatment called ctl019 shown dramatically raise chances survival children young people leukemia dont respond standard treatment suffer relapse far cart therapies tested certain types blood cancer kite pharmas leading cart treatment known axicel aimed patients aggressive nonhodgkin lymphoma standard therapy failed kite novartis investigating several cart therapies various forms blood cancer novartis also conducting earlystage cart trials certain types brain lung tumors dr milligan gileads ceo said company eyeing kite months decided make move kite asked fda approve axicel gilead watched performance drugs novartis others deal talks began earnest dinner june home kite ceo arie belldegrun overlooking university california los angeles campus teaches practices medicine dr milligan said excited gilead one innovative companies industry recognized value shares passion developing cuttingedge potentially curative therapies patients mr belldegrun said statement gilead made name selling treatments hivaids biotech company surged value launching hepatitis c treatments developed pharmasset drugs sovaldi harvoni helped gilead double sales 2014 market value roughly 100 billion last year gilead 30 billion sales including 91 billion harvoni 4 billion sovaldi yet antiviral drugs commercial success also come problems gilead faced public criticism senate investigation listing sovaldi 1000 day 84000 12week treatment even though therapy cured patients cost less liver transplant hepatitis c drugs sales squeezed recent years merck amp co launched rival treatment forcing gilead offer steep discounts health plans partly drugs success curing disease fewer patients needed treatment companys secondquarter hepatitis c drug sales fell 29 billion worldwide 4 billion period year earlier gilead faced pressure investors analysts find new revenue sources management responded touting next generation hivaids treatments well drugs development treat liver disease known nash nonalcoholic steatohepatitis wall street said gilead needed another deal gilead fanned speculation hiring alessandro riva novartis run hematology oncology division well former adviser investment banker andrew dickinson lazard ltd gileads allcash deal kite expected close fourth quarter around time deadline us approval kites main therapy dr milligan said dr belldegrun would help transition new ownership gilead would retain nearly kites employees dana mattioli contributed article write jonathan rockoff jonathanrockoffwsjcom denise roland deniserolandwsjcom end dow jones newswires august 28 2017 1941 et 2341 gmt | 1,702 |
<p><a href="//videos/37/59656" type="external" /></p>
<p>RUSH: There’s something that I want to spend some time on — if it takes the next two days discussing with you, and it may. There’s a new book out. I became aware of this while I was out, post-op. Some French socialist, Marxist, communist economist has published a book, and the left in this country is having orgasms over it. It’s the number one book on Amazon. The guy’s name is Thomas Piketty. It is timed coincidentally — maybe not coincidentally — you know, the Obama Regime and the Democrats are all on this big kick of income inequality and what to do about it. And this guy’s book gives them ammo.</p>
<p>It’s the most outrageous set of assumptions that I have ever read. In fact, it’s nothing new. It’s just repackaged, but I’m telling you the people on the left can barely contain themselves with their giddiness over this, and it portends grave danger for this country if any of this guy’s suggestions were to ever become adopted. And Obama is on his way to trying to adopt some of them, all on the basis of getting rid of income inequality. Can somebody tell me, when has there ever been income equality, and if you can tell me when there has been income equality, can you tell me what kind of lives those people had, and what kind of country they lived in, and what kind of liberty and freedom they had.</p>
<p>This guy is suggesting an 80% tax rate on incomes over $500,000 a year. Not to raise revenue for the government, but to eliminate those incomes. This guy’s objective is to simply wipe out the wealthy. And supposedly everybody is gonna be deliriously happy after this. It is absurd. It’s stupid. It’s dumb. It’s ignorant. It’s been tried, and it is being tried in every place in the world you wouldn’t want to live. And yet the left in this country and the Democrat Party and the media, they’re just chomping at the bit, excited as they can be. And I want to go through some actual factual analysis of incomes in this country and wealth and census data evidence that proves that this is the land of opportunity.</p>
<p>The top 1%’s not a static group. The top 10%’s not a static group. People move in and out of income groups all the time in this country. People make and lose fortunes all the time. They make a lot of money, they lose it. It’s not the same 1% for 50 years. It’s not the same 1% for four years. People move in and out all the time. It really is problematic what this guy is suggesting and the way it’s being embraced in this country by the movers and shakers of the left is what harbingers ill will. I just want to inform you of it so that you’re up to speed on it.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: There’s a new book that the left has embraced. It’s by a French Marxist economist named Thomas Piketty. Now, you may have heard this discussed. I first heard of this a few days ago. It’s one of the reasons I’ve been chomping at the bit to get back here and discuss this. The reason it’s being embraced is not just that it’s Marxism and socialism and communism. It’s embraced because it happens to coincide with Obama’s big push here on income inequality. I’m told he pronounces the name Piketty. Piketty, Piketty, I couldn’t care less. He’s a wuss. Okay, Thomas Piketty. Fine, okay, that’s how he pronounces his name. We’ll give him that.</p>
<p>Obama is embracing this, and the left is embracing it because of Obama’s push on income inequality, as though there’s some moral sin in income inequality. There’s some moral sin in capitalism, and therefore there is a moral sin in the United States of America. The United States of America is a moral sin. It’s flawed deeply and morally because of the concentration of wealth in the top 1%. They are hoarding it. They are taking it from everybody. They are stealing it. They’re not sharing it, not redistributing it, giving it away. They’re not paying people enough and so forth.</p>
<p>To the extent that there is any concentration of wealth taking place in this country, let me tell you where it’s happening. Government. The richest counties in this country used to be in Florida, in California. They are now the suburbs of Washington, DC. Wealth is being concentrated in the hands of people who are in or associated with government. They are the 1%. This is conveniently ignored by people who thrill with delight at Piketty’s book.</p>
<p>I want to start with several analysis pieces here before I share with you my own thoughts. I want to start with a piece here by David Harsanyi, and my bad, I neglected when I printed this to make a note — he’s a scholar, a think tank contributor, blogger somewhere, and I just neglected to print, make a note of where. Here’s how he begins his analysis.</p>
<p>“As I write this, Thomas PikettyÂ’s book ‘Capital in the Twenty-First Century’ is #1 on Amazon. ItÂ’s been deemed an ‘important book’ by a bunch of smart people. Why not? It validates many of the preconceived notions progressives have about capitalism: Inequality is growing. Mobility is shrinking. Meritocracy is dead. We all live in a sprawling zero-sum fallacy. And so on.</p>
<p>“The book, as you probably know, has also sparked nonstop conversation in political and media circles. Though itÂ’s best to let economists debunk PikettyÂ’s methodology and data, it is worth pointing out that liberal pundits and writers have not only enthusiastically and unconditionally embraced a book on economics, or even a run-of-the-mill leftist polemic, but a hard-left manifesto.”</p>
<p>Now, my point with starting with Mr. Harsanyi is that I think he is typical in that he is surprised at how far left the American media is today. He is surprised at how far left the Democrat Party is today. You and I are not. We know they are deeply committed Marxists. They are fascists. We see it. We’re the victims of it. We’re the ones they try to shut up. We’re the ones who are not allowed to dissent. We are the ones, the Catherine Engelbrechts, you name it, the Tea Party, we are the ones that the powers that be on the left try to eliminate. Not converse with, not debate, none of that. We know it.</p>
<p>The only thing that’s new about the left is in the last 20 years the media has thrown off their cloak of camouflage and they are now openly acknowledging who and what they are. Oh, yeah, Harsanyi is from the Federalist.com. He says, “Now, I realize we’re all supposed to accept the fact that conservatives are alone in embracing fringe –” He’s being sarcastic here — “Now, I realize weÂ’re all supposed to accept the fact that conservatives are alone in embracing fringe economic ideas. But how does a book that evokes Marx and talks about tweaking the Soviet experiment find so much love from people who consider themselves rational, evidence-driven moderates?”</p>
<p>They’re not rational evidence driven moderates, Mr. Harsanyi. They are hard-left, committed socialists. It’s just a point of frustration for me. Here, grab sound bite 16. As a bit of illustration here, former Senator Bob Bennett, who was defeated by Senator Mike Lee, Utah, he went to the Kennedy School, the Kennedy library March 26th and had a panel on political reform. This is a Republican, Senator Bob Bennett. And when it was his turn to speak — this panel was on reforming, on getting along, bipartisanship, cooperation and all of that rotgut. And it’s a joke. The left is not about any of that. But people like McCain and this guy Bennett fall for it (imitating McCain), “I can cross the aisle. I know how to work with the other side.” They’re not interested in that. Here, just listen to the bite.</p>
<p>BENNETT: We had 19 cosponsors, including 10 Republicans, including two members of leadership who were willing to work on a bipartisan solution because we believed that the current health care structure was impossible, terrible, bad for Americans, needed to be changed. We were frozen out of the conversation and told to go away. This was one place where I chalk it up not to anything evil. I’m not Rush Limbaugh. I’m not somebody who says he hopes the president will fail. I think this was an example of the president’s inexperience of dealing with a Congress. He had a great opportunity and he muffed it.</p>
<p>RUSH: This guy couldn’t be more wrong, and it’s why he was defeated. So he says (imitating Bennett), “Obamacare, nah, the president, he had a great opportunity and muffed it. He was just inexperienced. He just didn’t know how to get any Republican votes. The fact that they weren’t letting us in the meetings just is inexperience.” And it’s this kind of ignorance and this head in-the-sand acknowledging good intentions on the part of these people is gonna be our ruination. He has to go on here and mischaracterize what I said about hoping the president failed as evil.</p>
<p>“I’m not going to chalk it up to anything evil. I’m not Rush Limbaugh. I’m not somebody who says he hopes the president will fail.” I still wish this guy would fail, folks! I don’t want anything that he’s doing! I wish Obamacare hadn’t happened. I wish the stimulus hadn’t happened, and everybody who heard me say that knew exactly what I meant by it. They still took it as an opportunity to run with it in a totally different direction. Everybody knew what I meant by that, but they chose to mischaracterize it on purpose for their own selfish, personal political reasons, but it couldn’t have been more rational. “I hope he fails.”</p>
<p><a href="//home/daily/site_011609/content/01125113.guest.html" type="external" />The Wall Street Journal wanted 400 words on — I forgot what the question was. Something about 400 words on what you hope the president — I said, “I don’t need 400 words, I need four. <a href="//home/daily/site_011609/content/01125113.guest.html" type="external">I hope he fails</a>.” ‘Cause I knew what he was. This is my point. I knew who Obama was. I knew what a committed socialist was. I knew what an Alinskyite he was. I knew what he was going to do if he was not opposed. I knew what he was gonna do if he had clear smooth sailing. I knew what his intentions were. I knew what he thought of this country, I knew it.</p>
<p>Robert Bennett should have known it. Every Republican in Washington should have known exactly what Barack Obama was. It was right out in the open for anybody to know. It was not a mystery. It didn’t require deep investigation. It just required commitment to believe it. And they couldn’t get past the man’s skin color in order to accept the truth. They were paralyzed by that, and I don’t mean to be harping on <a href="http://thefederalist.com/2014/04/23/pundits-of-the-world-unite-what-thomas-pikettys-popularity-tells-us-about-the-liberal-press/" type="external">David Harsanyi</a> here. It’s not my point, but he is like in a way Bennett here. He’s shocked that modern-day Democrats are accepting a Marxist socialist economics book.</p>
<p>He said: “ItÂ’s unlikely that Democrats would have praised a book like this 20 years ago — or even 10. Nowadays, Jack Lew — better known as the Treasury Secretary of the United States of America — takes time to chit chat with the author.” This is my point. It is very likely Democrats 20 years ago would have behind the scenes been embracing — the only thing new is that they are no longer hiding who they are. They’ve always been who they are.</p>
<p>There are reasons for why the mask of camouflage has been dropped, and I really do believe it’s because of the loss of their media monopoly, which has forced them into sort of a competitive mode. They’re now having to compete and they no longer get away with this phony objectivity that they always were granted. They always benefited from the assumption that they were objective. Yeah, they might have been liberal, but they were fair. They never were. They were always hard leftists. They always have been hard leftists, and now all they’ve done is come forth and admit it.</p>
<p>“How does a book that evokes Marx and talks about tweaking the Soviet experiment find so much love from people who consider themselves rational, evidence-driven moderates?” Have people not been paying attention the last seven years, or six, whatever the hell it is this guy’s been in office? Have people not been paying attention to what’s happening, or is it they choose not to notice it? And I’m not harping on Harsanyi. Please do not anybody send him a note that I’m ripping him to shreds. This is serving here as an object lesson.</p>
<p>He goes on to say: “Piketty, a professor at the Paris School of Economics, argues that capitalism allocates resources efficiently but unfairly apportions income. And the excessive accumulation of wealth by the one percent … is not only corrupt, but an inequality that makes democracy unsustainable. And itÂ’s going to get worse. So only a massive transfer of wealth could make our nation whole again.”</p>
<p>Well, hello, this is Barack Obama. This is Saul Alinsky. This isn’t anything new. I guess it is new to some people to see every day on cable news your average, ordinary guest agree with this stuff, but that’s what’s new. It’s just new that they’re admitting it. They didn’t in the last 20 years go from moderate to fascist. They’ve always been liberal fascists. It’s why I keep harping on the importance for people learning and understanding ideology and how to associate it with people so you know what’s coming. Note it Mr. Piketty is not giving his book away. He’s charging $39.95 for his book. Why? Why does he need the money? Just a little side question.</p>
<p>“Here is his thesis, boiled down: When the rate of return on capital exceeds the rate of growth of output and income, as it did in the nineteenth century and seems quite likely to do again in the twenty-first, capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the meritocratic values on which democratic societies are based.”</p>
<p>There’s no data to support any such claim. I’ll get to that in minute. He goes on, Piketty goes on to suggest an 80% tax rate to fix this inequality business, an 80% tax rate on incomes starting at $500,000 or one million a year. Not to raise money for education. Not to raise money for mass transit. Not to raise money for AIDS research. Not to raise money for anything. Not to increase unemployment benefits. Piketty argues for an 80% tax rate to put an end to incomes over $500,000 a year.</p>
<p>And we have people in America today who can’t believe that this is being supported by modern-day Democrats. And that’s what surprises me. Do they not hear what modern-day Democrats say? Do they not know what Obamacare is? Do they not know what the outcome of Obamacare is? Do they not see where the president wants to take tax policy, do they not listen to what he says? Do they not know when the president of the United States makes a big deal about income inequality, do they not know what that means?</p>
<p>When has income ever been equal? If you don’t believe in free will and independence and liberty in a general sense, if you don’t believe in those things then you will find arguments about beneficent and wise, Big Government alluring. If you’re a coward; if you’re afraid to strike out on your own; if you’re afraid to take a risk; if you’re afraid to go for it; if you’d rather have the security of knowing you’re gonna be taken care of and at the same time somebody who did take a risk and it pays off and they become wealthy, they’re gonna be gotten even with, then Big Government’s for you.</p>
<p>But if you believe in free will — we’ve got 200, 300 million people in this country and every one of us is different. There is nothing about any of us that is equal. That is what the law is to do. But there is no guarantee, there can’t be a guarantee, there never was a guarantee, it’s not godly or humanly possible for there to be equality of outcome.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Here’s the question, folks. How many more people must suffer under these Marxist, socialist, liberal theories before a free people like those of us in this country aggressively and permanently reject this nonsense? I don’t know. I’m really bothered, look, I’m conflicted. I’m glad people’s eyes are being opened, and if this book is opening people’s eyes as to just what the current left is, fine. But I’m a little sad that it’s taken six years. ‘Cause look what’s happened in these six years. Real deep damage has been done to the underlying foundation, and I mean foundation, founding of this country.</p>
<p>I’m gonna get you the numbers here before this program ends. You compare the suffering, the human suffering under communism, socialism, Marxism versus the human suffering under capitalism, there is no comparison whatsoever, none. The human suffering that occurs in communism and socialism knows no comparison. The suffering that occurs in capitalism can’t even make a dent. Now, of course free markets create unequal results. Sorry, folks. That’s what freedom does.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Now back to this lamebrain Piketty from France. I’m yukking it up with this guy. I’m telling you, this is serious stuff because many more people than apparently a lot of people realize are eating it up and want to implement it in this country. And, folks, the reason it scares me is the last six years were not necessary. This could have been avoided. Obama could have been defeated with just a little honesty about who he was because we are not the minority in this country.</p>
<p>We are being governed and ruled by a really small minority of people. They happen to control the media which makes them look big. They are mean, they are vicious, and they do not tolerate any dissent whatsoever. They are the modern day Marxists, fascists. From this poor guy at Mozilla, to Ayaan Hirsi Ali, I mean the list is long of people who have been silenced, intimidated, threatened in the United States of America, by other so-called Americans. Obama didn’t have to win in 2008, he didn’t have to win in 2012, and Hillary doesn’t have to win in 2016. She’s one of them. She’s no different than any of the others. They’re all in on this stuff.</p>
<p />
<p />
<p>What does inequality of income mean? Has there ever been equality of income? The Pilgrims tried it. It’s right there in <a href="http://www.twoifbytea.com/" type="external">Rush Revere and the Brave Pilgrims</a>, my first ever children’s book. Didn’t work. True story. The actual story of the first Thanksgiving is socialism’s failure and William Bradford and the gang’s thanks to God for seeing the light.</p>
<p>They tried income equality. Everybody got the same. The same amount of land. Everybody got the same income. No matter who worked harder, everybody got the same. They thought that would be fair. They just arrived in a new place, what could be fairer? Everybody ends up with the same thing. Guess what? The slackers slacked. The lazy lazed and they lived off the hard work of the industrious. And the industrious continued to be industrious because it was their nature.</p>
<p>The lazy continued to be lazy ’cause it was their nature. And finally unrest started to happen and the colony wasn’t gonna hold together. So they had to change it up. They had to recognize that people were going to only get a portion of what they produced. What they produced was theirs, and that made everybody industrious, voila. It’s right there in William Bradford’s journal. The lesson is that old, but this lesson is biblical. The failure of socialism is biblical. Socialism is not charity. Socialism is not kindness. It’s not compassion. It’s the exact opposite. The Democrat Party is not kindness, it’s not compassion. The Democrat Party is punitive.</p>
<p>The Democrat Party has an enemies list and it’s anybody who succeeds who is not a member of the clan. What does equality of income mean? How would you do it? Would you base it on family size? Would you base it on hours worked? Would you base it on what somebody supposedly needs? Would you base income equality on society? I mean, if you’re gonna have income equality, everybody’s gonna have enough income to do what? To buy what? Everybody’s gonna be able to own what? Who’s gonna decide this? The places and the countries that have tried this nobody owns anything except the leaders. There is no property. Nobody’s allowed to own property.</p>
<p><a href="" type="internal" />So that question’s dealt with right off the bat. Nobody’s gonna have to enough to own anything and nobody’s gonna be permitted to own anything. The state is gonna own everything. And if you stay in good graces with the state then you’ll be okay as far as okay gets you. But if you’re not, you’re an enemy of the state, and that’s what we are today. Anybody that’s not an Obamaite is an enemy of the state. Anybody that’s not all-in with Eric Holder is an enemy of the state. Talk to Catherine Engelbrecht, talk to Ayaan Hirsi Ali, talk to <a href="" type="internal">Brendan Eich</a>, <a href="" type="internal">Condoleezza Rice, Dropbox</a>. They tried to get her forced out of Dropbox, named her to the board of directors. She’s an enemy of the state in the United States of America.</p>
<p>And here comes this idiot Piketty with his book and these clowns are all addressing it, embracing it. Who’s gonna make these determinations of who gets what? Who’s gonna make these determinations of what we all need to be equal? The same people who brought us Obamacare? The same people who run the DMV? The same people running the climate change movement? Who are these people gonna be? The people that can routinely get a CEO fired for giving a thousand dollars to a proposition that says marriage is that between a man and a woman? Can you imagine believing that marriage is between a man and a woman is enough to get you exiled in the United States of America today? But it is?</p>
<p>My point is, this is not new. The sentiment is not new. The desire is not new. The bravery is new because there’s no opposition to it because everybody’s scared to death to oppose it. There are graves, there are gulags, there are homeless shelters filled with human beings who have suffered under these experiments, socialism and communism. In North Korea, in China, in Cuba, it’s all over the world. That’s what is exceptional about the United States of America and that’s what American exceptionalism is. We are the exception to living the way most people have since the beginning of time.</p>
<p>Liberty and freedom are taken for granted by people who are born to it, and, as such, they’re the last to recognize it being encroached upon. But it is in the process of happening. Daily people are losing liberty. Daily people are losing freedom. Daily more and more people are afraid to tell you what they really think about something. We are being ruled, we are being governed by a genuine minority. The latest polling data on the Keystone pipeline, 61, 62% want it. The left is not the majority in this country. But they’ve made themselves look like they are with the help of the media, who are perhaps the leaders by design in this thing.</p>
<p>I gotta take one final time-out here. Well, I’ve got to take another break, but I want to go through some stats about the wide range of income and who makes it and who loses it in this country. There is not a constant top 1%. It’s not the same people from birth to death. There’s not a 1% that you can never become a member of. There’s not a top 10% that you can never — wait ’til you hear these stats, based on census data.</p> | true | 0 | rush theres something want spend time takes next two days discussing may theres new book became aware postop french socialist marxist communist economist published book left country orgasms number one book amazon guys name thomas piketty timed coincidentally maybe coincidentally know obama regime democrats big kick income inequality guys book gives ammo outrageous set assumptions ever read fact nothing new repackaged im telling people left barely contain giddiness portends grave danger country guys suggestions ever become adopted obama way trying adopt basis getting rid income inequality somebody tell ever income equality tell income equality tell kind lives people kind country lived kind liberty freedom guy suggesting 80 tax rate incomes 500000 year raise revenue government eliminate incomes guys objective simply wipe wealthy supposedly everybody gon na deliriously happy absurd stupid dumb ignorant tried tried every place world wouldnt want live yet left country democrat party media theyre chomping bit excited want go actual factual analysis incomes country wealth census data evidence proves land opportunity top 1s static group top 10s static group people move income groups time country people make lose fortunes time make lot money lose 1 50 years 1 four years people move time really problematic guy suggesting way embraced country movers shakers left harbingers ill want inform youre speed break transcript rush theres new book left embraced french marxist economist named thomas piketty may heard discussed first heard days ago one reasons ive chomping bit get back discuss reason embraced marxism socialism communism embraced happens coincide obamas big push income inequality im told pronounces name piketty piketty piketty couldnt care less hes wuss okay thomas piketty fine okay thats pronounces name well give obama embracing left embracing obamas push income inequality though theres moral sin income inequality theres moral sin capitalism therefore moral sin united states america united states america moral sin flawed deeply morally concentration wealth top 1 hoarding taking everybody stealing theyre sharing redistributing giving away theyre paying people enough forth extent concentration wealth taking place country let tell happening government richest counties country used florida california suburbs washington dc wealth concentrated hands people associated government 1 conveniently ignored people thrill delight pikettys book want start several analysis pieces share thoughts want start piece david harsanyi bad neglected printed make note hes scholar think tank contributor blogger somewhere neglected print make note heres begins analysis write thomas pikettyÂs book capital twentyfirst century 1 amazon itÂs deemed important book bunch smart people validates many preconceived notions progressives capitalism inequality growing mobility shrinking meritocracy dead live sprawling zerosum fallacy book probably know also sparked nonstop conversation political media circles though itÂs best let economists debunk pikettyÂs methodology data worth pointing liberal pundits writers enthusiastically unconditionally embraced book economics even runofthemill leftist polemic hardleft manifesto point starting mr harsanyi think typical surprised far left american media today surprised far left democrat party today know deeply committed marxists fascists see victims ones try shut ones allowed dissent ones catherine engelbrechts name tea party ones powers left try eliminate converse debate none know thing thats new left last 20 years media thrown cloak camouflage openly acknowledging oh yeah harsanyi federalistcom says realize supposed accept fact conservatives alone embracing fringe hes sarcastic realize weÂre supposed accept fact conservatives alone embracing fringe economic ideas book evokes marx talks tweaking soviet experiment find much love people consider rational evidencedriven moderates theyre rational evidence driven moderates mr harsanyi hardleft committed socialists point frustration grab sound bite 16 bit illustration former senator bob bennett defeated senator mike lee utah went kennedy school kennedy library march 26th panel political reform republican senator bob bennett turn speak panel reforming getting along bipartisanship cooperation rotgut joke left people like mccain guy bennett fall imitating mccain cross aisle know work side theyre interested listen bite bennett 19 cosponsors including 10 republicans including two members leadership willing work bipartisan solution believed current health care structure impossible terrible bad americans needed changed frozen conversation told go away one place chalk anything evil im rush limbaugh im somebody says hopes president fail think example presidents inexperience dealing congress great opportunity muffed rush guy couldnt wrong defeated says imitating bennett obamacare nah president great opportunity muffed inexperienced didnt know get republican votes fact werent letting us meetings inexperience kind ignorance head inthesand acknowledging good intentions part people gon na ruination go mischaracterize said hoping president failed evil im going chalk anything evil im rush limbaugh im somebody says hopes president fail still wish guy would fail folks dont want anything hes wish obamacare hadnt happened wish stimulus hadnt happened everybody heard say knew exactly meant still took opportunity run totally different direction everybody knew meant chose mischaracterize purpose selfish personal political reasons couldnt rational hope fails wall street journal wanted 400 words forgot question something 400 words hope president said dont need 400 words need four hope fails cause knew point knew obama knew committed socialist knew alinskyite knew going opposed knew gon na clear smooth sailing knew intentions knew thought country knew robert bennett known every republican washington known exactly barack obama right open anybody know mystery didnt require deep investigation required commitment believe couldnt get past mans skin color order accept truth paralyzed dont mean harping david harsanyi point like way bennett hes shocked modernday democrats accepting marxist socialist economics book said itÂs unlikely democrats would praised book like 20 years ago even 10 nowadays jack lew better known treasury secretary united states america takes time chit chat author point likely democrats 20 years ago would behind scenes embracing thing new longer hiding theyve always reasons mask camouflage dropped really believe loss media monopoly forced sort competitive mode theyre compete longer get away phony objectivity always granted always benefited assumption objective yeah might liberal fair never always hard leftists always hard leftists theyve done come forth admit book evokes marx talks tweaking soviet experiment find much love people consider rational evidencedriven moderates people paying attention last seven years six whatever hell guys office people paying attention whats happening choose notice im harping harsanyi please anybody send note im ripping shreds serving object lesson goes say piketty professor paris school economics argues capitalism allocates resources efficiently unfairly apportions income excessive accumulation wealth one percent corrupt inequality makes democracy unsustainable itÂs going get worse massive transfer wealth could make nation whole well hello barack obama saul alinsky isnt anything new guess new people see every day cable news average ordinary guest agree stuff thats whats new new theyre admitting didnt last 20 years go moderate fascist theyve always liberal fascists keep harping importance people learning understanding ideology associate people know whats coming note mr piketty giving book away hes charging 3995 book need money little side question thesis boiled rate return capital exceeds rate growth output income nineteenth century seems quite likely twentyfirst capitalism automatically generates arbitrary unsustainable inequalities radically undermine meritocratic values democratic societies based theres data support claim ill get minute goes piketty goes suggest 80 tax rate fix inequality business 80 tax rate incomes starting 500000 one million year raise money education raise money mass transit raise money aids research raise money anything increase unemployment benefits piketty argues 80 tax rate put end incomes 500000 year people america today cant believe supported modernday democrats thats surprises hear modernday democrats say know obamacare know outcome obamacare see president wants take tax policy listen says know president united states makes big deal income inequality know means income ever equal dont believe free independence liberty general sense dont believe things find arguments beneficent wise big government alluring youre coward youre afraid strike youre afraid take risk youre afraid go youd rather security knowing youre gon na taken care time somebody take risk pays become wealthy theyre gon na gotten even big governments believe free weve got 200 300 million people country every one us different nothing us equal law guarantee cant guarantee never guarantee godly humanly possible equality outcome break transcript rush heres question folks many people must suffer marxist socialist liberal theories free people like us country aggressively permanently reject nonsense dont know im really bothered look im conflicted im glad peoples eyes opened book opening peoples eyes current left fine im little sad taken six years cause look whats happened six years real deep damage done underlying foundation mean foundation founding country im gon na get numbers program ends compare suffering human suffering communism socialism marxism versus human suffering capitalism comparison whatsoever none human suffering occurs communism socialism knows comparison suffering occurs capitalism cant even make dent course free markets create unequal results sorry folks thats freedom break transcript rush back lamebrain piketty france im yukking guy im telling serious stuff many people apparently lot people realize eating want implement country folks reason scares last six years necessary could avoided obama could defeated little honesty minority country governed ruled really small minority people happen control media makes look big mean vicious tolerate dissent whatsoever modern day marxists fascists poor guy mozilla ayaan hirsi ali mean list long people silenced intimidated threatened united states america socalled americans obama didnt win 2008 didnt win 2012 hillary doesnt win 2016 shes one shes different others theyre stuff inequality income mean ever equality income pilgrims tried right rush revere brave pilgrims first ever childrens book didnt work true story actual story first thanksgiving socialisms failure william bradford gangs thanks god seeing light tried income equality everybody got amount land everybody got income matter worked harder everybody got thought would fair arrived new place could fairer everybody ends thing guess slackers slacked lazy lazed lived hard work industrious industrious continued industrious nature lazy continued lazy cause nature finally unrest started happen colony wasnt gon na hold together change recognize people going get portion produced produced made everybody industrious voila right william bradfords journal lesson old lesson biblical failure socialism biblical socialism charity socialism kindness compassion exact opposite democrat party kindness compassion democrat party punitive democrat party enemies list anybody succeeds member clan equality income mean would would base family size would base hours worked would base somebody supposedly needs would base income equality society mean youre gon na income equality everybodys gon na enough income buy everybodys gon na able whos gon na decide places countries tried nobody owns anything except leaders property nobodys allowed property questions dealt right bat nobodys gon na enough anything nobodys gon na permitted anything state gon na everything stay good graces state youll okay far okay gets youre youre enemy state thats today anybody thats obamaite enemy state anybody thats allin eric holder enemy state talk catherine engelbrecht talk ayaan hirsi ali talk brendan eich condoleezza rice dropbox tried get forced dropbox named board directors shes enemy state united states america comes idiot piketty book clowns addressing embracing whos gon na make determinations gets whos gon na make determinations need equal people brought us obamacare people run dmv people running climate change movement people gon na people routinely get ceo fired giving thousand dollars proposition says marriage man woman imagine believing marriage man woman enough get exiled united states america today point new sentiment new desire new bravery new theres opposition everybodys scared death oppose graves gulags homeless shelters filled human beings suffered experiments socialism communism north korea china cuba world thats exceptional united states america thats american exceptionalism exception living way people since beginning time liberty freedom taken granted people born theyre last recognize encroached upon process happening daily people losing liberty daily people losing freedom daily people afraid tell really think something ruled governed genuine minority latest polling data keystone pipeline 61 62 want left majority country theyve made look like help media perhaps leaders design thing got ta take one final timeout well ive got take another break want go stats wide range income makes loses country constant top 1 people birth death theres 1 never become member theres top 10 never wait til hear stats based census data | 1,982 |
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