Monday, October 31, 2011

Advantage View:High Risk and Havens

Not every analyst was swayed by the easy cheer so prevalent on the trading floors in recent days.The news out of Europe clearly is driving the market,said Jeremy Zirin,Chief Equity Strategist at UBS Financial Services.I think the market will continue to be driven by the news flow out of Europe.We're actually not that inexpensive.The rally that we've seen has really evaporated some of that cheapness.
I expect S&P 1100-1250 range-bound conditions.I think the risk-reward after the rally is to the downside.You want to have a more cautious disposition:staples,utilities,telcos,and tech with its high cash balances and emerging markets exposure.
The catalyst for a breakout would have to be a resolution in Europe and a resumption of strong U.S. growth.It seems unlikely given the uncertainty of our own fiscal policy-let alone Europe.The outlook is increasingly uncertain.Some multinationals are starting to see one of the problems is business uncertainty and market uncertainty.It's very difficult to make multi-year investments in capital goods or in labor when you can't be sure of the landscape.
On the surface,this earnings season looks similar to the past 6-8 quarters.What's really different is,forward-looking estimates are being cut at a dizzying rate.Below the surface,it's deteriorating,Mr.Zirin cogently observed.

Sunday, October 30, 2011

Honda Troubled By Thai Flood

Honda Motor shares fell on Monday as the company announced its Thailand plant may be closed for six months.Honda needs to replace equipment that was damaged by the recent flooding in the outskirts of Bangkok.The plant produces the Civic and Accord models.
The center of Bangkok is generally dry,protected by a wall of hundreds of thousands of sandbags that guide the waters to the Thai delta.The wall has prompted bitter criticism by residents of the northern reaches of the city,whose homes have been flooded,while those living just inside the wall are dry.Prime Minister Yingluck Shinawatra pointed out that they had no choice but to protect the city center.Thailand's international image would suffer if the capital city were allowed to be flooded.She called for patience for 2-3 more days.These are very critical days in the disaster,the Prime Minister added.
About 400 people have died as a result of the flooding.The total financial losses so far are about 30 billion dollars.The Bank of Thailand is lowering its Gross Domestic Product growth estimate for the country from 4.2 to 2.6% because of the flooding.Industrial and agricultural exports will take a hit.
Toyota Motor has had to close three plants in Eastern Thailand because of a disruption of parts delivery caused by the flood.
In Bangkok,it was 84F on Monday under clear skies.The wind was NE at 7 mph,and the humidity was 62%.Good weather for the next several days should help with the flooding situation.
Honda Motor Company,Ltd.(HMC),Toyota Motor Corporation(TM)

Thursday, October 27, 2011

Health Care Struggle Over New Hampshire's Poor

Several thousand New Hampshire Medicaid patients find themselves without health care providers.The non-profit health system which had been caring for them has rebelled decisively against state cuts to their reimbursement for treating the indigent patients.
When the disenfranchised patients end up in the emergency room,however,the cost of treating them will be much higher than it is now.That is the most expensive form of health care.
The situation in New Hampshire is perhaps occurring elsewhere under the radar.If not,it may well soon be happening.It just points up the dysfunction in the health care system today.

Lakes Region hospital cuts 3,500 Medicaid patients from rolls | New Hampshire NEWS12

Lakes Region hospital cuts 3,500 Medicaid patients from rolls | New Hampshire NEWS12

Monday, October 24, 2011

IBM's Chances of Reaching Its Goal

IBM beat on Q3 earnings,logging earnings per share of 3.28 versus an estimate of 3.22;on revenue,Big Blue was at 26.2 billion dollars,versus an estimate of 26.3.The company raised its full year guidance from 13.25 to 13.35 per share.It's pretty much in line with what we were expecting,said analyst Joe Foresi of Janney Montgomery Scott.
On services,IBM had some pretty positive revenue.About 50% of their revenue comes from the services business.It consists of long term,annuity type contracts.
They do a lot of work in the emerging markets,which should help balance any loss in Europe.Given the size of IBM,it's more of a tanker than a speed boat.There's cautious optimism in their guidance.
We have a price target for them of 199.00.If you look over the short term,there will be swings up and down;but over the long term,the fundamentals are certainly there for their 20.00 earnings per share goal within five years,in Joe Foresi's opinion.
IBM's shares fell sharply following its report release,on traders' fears that a global recession could hamper its profitability.
International Business Machines(IBM)

Sunday, October 23, 2011

Rice Crop Hindered By Flooding

The UN is warning that flooding in Southeast Asia may result in food shortages.Rice paddies have been devastated in Thailand,Cambodia and Laos.In Thailand and Cambodia,12.5% of the rice has been lost.Thailand,the world's largest rice exporter,may lose up to 25% of its harvest.These losses may cause a 17% price increase.
The Stock Exchange of Thailand is closed today,Monday,for the Chulalongkorn Holiday,which honors the death of a revered king.
In South Korea,the Pohang Iron and Steel Company,or POSCO,has reported a 75% drop in profits.This is because of both less demand and lower steel prices.POSCO is the world's third biggest steel producer.
Taiwan's Yani Tseng won the inaugural LPGA Taiwan Championship on Sunday,shooting a six under par 66 at the Sunrise Golf and Country Club in Yang Mei.It was Tseng's seventh LPGA Tour win of the season as she was cheered on by a large crowd of supporters in her native land.She donated 100,000 dollars of her prize to Taiwan junior golf.
In Bangkok on Monday,it was 88F under scattered clouds.The wind was NE at 6 mph,and the humidity was 58%.

Retailers Ramp Up Seasonal Hiring

Macy's continues seasonal hiring at its Tysons Corner,Virginia store and other locations.Apply online at or visit the website to find Holiday Hiring Events in your area.
Macy's is hiring 78,000 seasonal workers.That is up 4% from last year.
Macy's:Discover the Magic
JC Penney is also hiring at multiple locations.Apply online at
JC Penney:Every Day Matters

Thursday, October 20, 2011

MedImmune Licenses Pfizer Cancer Care Candidate

MedImmune has licensed a Pfizer CTLA-4 monoclonal antibody,tremelimumab,for exploration in a number of potential cancer treatments.Under the agreement,Pfizer will retain the rights to use tremelimumab with specified types of combination therapies while MedImmune assumes global development rights of the antibody.
The acquisition for MedImmune's oncology pipeline exemplifies MedImmune's continued commitment to embracing this new era of cancer care,according to Dr.Bahija
Jallal,PhD,Executive Vice President of Research and Development.
CTLA-4 is a protein that has an important role in regulating the immune system.There is growing interest in potential therapeutic benefits of blocking this protein with antibodies such as Pfizer's tremelimumab,as a means of inhibiting immune system tolerance of carcinogenic tumors,thus providing a potential new immunotherapy for cancer patients.
MedImmune is a division of London-based pharma titan AstraZeneca.The Gaithersburg,Maryland biotech firm has a staff of around 3500 workers worldwide.MedImmune is the inventor of the iconic FluMist vaccine,as well as pediatric respiratory therapy Synagis.

Monday, October 17, 2011

Inside Google's Good Quarter

Google beat its earnings consensus by 11%.Sales rose 37%,and they remain the search market leader.Android search is growing.Google+ has 40 million users.The company continued its robust hiring,generating controversy with the expense of adding 8.2% to its headcount.
According to analyst Gene Munster of Piper Jaffray,the core search business is doing well.The display business is also still doing well.Our price target's gonna be going up.There is some risk in terms of Europe,but the growth in Android is positive for our price target.Android handsets were a huge drive for clicks.
You've got to give them credit:a 13 year-old company hitting those metrics.There could be some big surprises with the MMI acquisition affecting capital expenditures,but there are broader positives for the advertising business,Mr.Munster indicated.

Chase Hiring Event

Chase is holding a Special Career Event in the risk management sector.There will be access to hiring managers and on-the-spot interviews on October 27 from 12PM-7PM at
Chase Center on the Wilmington,North Carolina Riverfront.They seek experienced professionals in Finance,Information Technology,Operations,Risk,Analytics and Marketing.
RSVP by October 20 to
Chase:Opportunity is knocking at Chase.

Sunday, October 16, 2011

BHP Billiton Shopping in Brazil

Australian natural resource megafirm BHP Billiton is considering a three billion dollar U.S. bid for Brazilian miner Ferrous Resources do Brasil LTDA.BHP already has an extensive iron ore portfolio.Mid-tier miner stocks were doing well Monday morning in Sydney in response to this merger and acquisition prospect.
The MSCI Asia Pacific Index rose 1.11% early Monday,bolstered by hopeful news out of Europe as the G20 finance ministers promised to have a plan for the Euro debt crisis finalised in a week.
The New Zealand services sector grew more slowly than expected in September.
The dollar/yen was flat on Monday morning,while the euro/dollar fell.
At the Canton Fair in China,the world's largest trade expo,exporters pleaded for the U.S. to stop demanding that the Chinese currency,the yuan,appreciate further.It is at the breaking point for exporters now,one vendor remarked.Any further appreciation would mean no more cheap goods for U.S. retailers and a lot less sales for Chinese suppliers.Everyone would be hurt.
South Korean golfer Na Yeon Choi,soon to turn 24,won the Sime Darby LPGA Malaysia in Kuala Lumpur on Sunday.Taiwan's Yani Tseng,22,the world number one in the Rolex rankings,finished second.It was Choi's fifth career victory on the LPGA Tour,and the 100th win by a woman of Korean descent on the Tour,Choi pointed out.
It was 63F in Sydney on Monday under partly cloudy skies.The wind was S at 16 mph,and the humdity was 48%.
BHP Billiton Ltd.(BHP)

Friday, October 14, 2011

The Cost of Dental Delay

Broken teeth are invitations to infection and poor digestion,but replacing a lost crown or filling is also a serious monetary cost of delaying routine dental care.The problems can mount up,necessitating several procedures that could have been minimized in both time and expense,had they been dealt with when they first appeared.
Inflation results in higher appointment costs-even those with dental insurance can face a substantial co-pay;as well,time lost is money lost,with one big filling replacement taking up to an hour or more.The intricacy of the procedures seems to have increased over the years as well,in my experience.Doing the job up to modern dental standards requires more time away from the business of the day.
Going around with broken teeth is an unnatural and unhealthy state of affairs that is better taken care of sooner rather than later,both from the health and the financial point of view.

What To Do About a Lost Filling or Crown

What To Do About a Lost Filling or Crown

Monday, October 10, 2011

Exxon Mobil's Access Challenge

Demand has certainly been sluggish,off 2-2.5%,Exxon Mobil CEO Rex Tillerson observed.Globally,demand is about where we expected it to be.Part of what we're seeing is,the supply fundamentals are very strong now.
Our move into XTO Energy was recognition on our part of how significant unconventional resources are.We have to go out,have access to acreage and drill so we can support the economy.We spend in operating costs over a billion dollars a day.
Two-thirds of the remaining oil and 40% of natural gas lies under federal land we have no access to.The key issue is,the government controls access.
All we're looking for is tax treatment that's equal across all industries.Loopholes and subsidies are patches to fix a defect in the tax system.Let's clean all that up.
I'm not as optimistic as I was six months ago.I think the economy is gonna be sluggish in this country.Globally,we're gonna have positive growth,but it's not gonna be as robust as we had hoped.
Other governments also control access to resources.The difference is,they ask how can we get this drilling done,Rex Tillerson remarked bitterly.
Exxon Mobil recently signed an agreement with Russian oil titan Rosneft on a joint venture for exploration and production in Russia and globally.The Strategic Cooperation Agreement was signed on August 30 in Sochi,Russia in the presence of Russian Prime Minister Vladimir Putin and Mr.Tillerson.The two companies have been working together for at least 15 years.
Exxon Mobil(XOM)

Debate Over Keystone XL Oil Pipeline Gets Rowdy at Washington, D, Hearing

Debate Over Keystone XL Oil Pipeline Gets Rowdy at Washington, D, Hearing

Sunday, October 9, 2011

China Continues Energy Shopping Spree

The Shanghai market reopened this morning,Monday,after the Golden Week holiday.Taiwan's market was closed for National Day,however,and Japan's markets were shuttered for Sports Day.
Sinopec,China's largest oil refiner,is purchasing Canadian firm Daylight Energy for 2.2 billion dollars Canadian.Daylight owns extensive shale gas properties,as well as oil sands and conventional oil prospects.
It is the latest in a series of Chinese acquisitions of Canadian energy assets.Sinopec also bought a 45% stake in Syncrude for 4.5 billion,while another Chinese energy firm,Cnooc,is purchasing OPTI Canada for 2.1 billion.China is aggressively seeking energy assets globally with its huge foreign currency reserves.
Canada is America's biggest oil and refined oil supplier-a fact many Americans may be ignorant of.
Over the Golden Week holiday,air travel in China fell to 8.2%,but retail sales rose 18%.China has cut fuel prices for the first time this year to rein in inflation.
In Beijing on Monday,it was 64F under clear skies.The wind was NE at 4 mph,and the humidity was 45%.
Taiwan's Yani Tseng,the world number one in the Rolex rankings,won the LPGA HanaBank Championship at the Ocean Course of the Sky 72 Golf Club in Incheon,South Korea on Sunday.Korean Na Yeon Choi,the HanaBank winner from 2009-10,came in second.
Sinopec(SHI),Daylight Energy(TSX:DAY)

Thursday, October 6, 2011

Primatene Mist Doughnut Hole

Dear Readers,
Many of you have shown interest in a post about Primatene Mist that I published some time ago.I wanted to update you on the situation so that you can take the necessary measures to safeguard your health.Primatene Mist is the only asthma inhaler presently available over the counter.
Unfortunately,in accordance with FDA rules,Primatene Mist,as currently formulated with a CFC that damages the earth's protective ozone layer,must be removed from U.S. shelves by December 31,2011.The product's maker,Armstrong Pharmaceuticals,is arranging to produce a non-CFC form of the asthma inhaler,but will have to submit it for FDA approval.That means there will probably be a doughnut hole period when you will not be able to purchase this popular asthma medication in the U.S.How long this will last is anyone's guess.
In the meantime,patients will have to obtain a prescription for another inhaler.Yes,a prescription will perhaps be more expensive-especially unwelcome in these troubled economic times.At this point,the medication is still being advertised for online purchase.
Andrew Taylor

Monday, October 3, 2011

Conference Board:Where The Arrow Points

The Conference Board says that economic indicators point to continued weak growth through fall and winter.The Board's Index of Leading Economic Indicators increased 0.3 in August following a 0.6 increase in July and a 0.3 increase in June.
According to CB economist Ataman Ozyildrim,the August increase was driven by components measuring financial and monetary conditions which offset substantially weaker components measuring expectations.The growth trend in the LEI has moderated and positive and negative contributors to the index have been roughly balanced.The indicators point to rising risks and volatility,and increasing concerns about the health of the expansion.
Ken Goldstein,another CB economist,said there is growing risk that sustained weak confidence could put downward pressure on demand and business activity,causing the economy to potentially dip into recession.While the chance of that happening remains below 50/50,the odds have certainly increased in recent months.
The Conference Board is a global,non-profit,independent business membership and research organization working in the public interest.It strives to provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society.

Sunday, October 2, 2011

Typhoon Bears Down on East Asia

Typhoon Nalgae has killed three people in the Philippines.Now the storm is heading across the South China Sea to Hainan Island,China and Vietnam.
Chinese financial markets are closed all week for the Golden Week holiday.China's non-manufacturing Purchasing Managers Index came in at 59.3,up from 57.6 the previous month,indicating growth in the service sector.
The MSCI Asia-Pacific Index was down 1.75 Monday morning,following the U.S. markets' lead on Friday.It has lost 18% on the year.The euro/dollar fell in early Asian trading,and the dollar/yen rose.
Thai Prime Minister Yingluck Shinawatra was verbally attacked by hackers,who broke into her Twitter account.The hackers questioned her competence to lead.If she can't protect her Twitter account,they asked,how can she protect Thailand?She was sworn in as Thailand's 28th prime minister on August 10.
The Bank of Japan's Tankan business sentiment index showed flat to improved business confidence.
Korean American golfer Kevin Na won the Justin Timberlake Shriners Hospitals for Children Open at TPC Summerlin in Las Vegas.Na shot a fourth round 23 under par 65.It was his first PGA Tour win.
In Tokyo on Monday,it was 66F under scattered clouds.The wind was North at 14 mph,and the humidity was 37%.

Next Day Blinds Jobs

Next Day Blinds,a leading custom window treatments provider,has openings at its Northern Virginia and Maryland showrooms for Showroom Design Consultants to provide window treatment design solutions for customers.Paid training,uncapped performance based structure and full benefits are offered.Attend the Career Fair on Monday,October 3 from 10am to 3pm at
Next Day Blinds Corporate Office
8251 Preston Court
Jessup,MD 20794
If unable to attend,please submit resumes to
or fax to 240-568-8812
Next Day Blinds:Exactly right.Completely you.