Monday, 30 June 2008
Penn Jillette talks with Glenn Beck about Libertarianism
Posted on 23:50 by Unknown
Verne Troyer's "Little" Problem...
Posted on 23:01 by Unknown
Saturday, 28 June 2008
Thursday, 26 June 2008
Security Comes Second To Freedom - Follow up
Posted on 08:10 by Unknown
A former co-worker, who is conservative, replied negatively to my publishing of the letter to the editor that defended the Supreme Court decision about granting court appearances for terror suspects.
Below is his reply, and then my response to him:
Below is his reply, and then my response to him:
Excuse me, but I beg to differ. The prisoners of Gitmo are not fellow citizens. They are ENEMY combatants. They have never pledged allegiance to our flag, must less the way of life we live. They would sooner see you and all of us dead rather than enjoy the liberties our country offers to them. Remember the 3000 innocent fellow Americans that died on 9/11? And now the liberals in the Supreme court think its "OK" for an enemy combatant to have access to our court system. Do you think any of our fellow Americans are afforded the same luxury in their world? I don't think Daniel Pearl would agree with you. (In case you don't remember, Daniel Pearl was a reporter, captured by our enemy, and summarily beheaded with a dull sword. The video was broadcast all over the world.)
Here is my response:I respectfully disagree. I think the Supreme Court made the right decision. I think the Supreme Court dissenters were wrong when they fretted that it will hurt the war on terror.
The Supreme Court has to be concerned with defending the Constitution, not fear and worry about military issues.
We are the good guys who have freedom. That mean we are, and should be "handicapped", in that we treat them better then they treat us.
We are civilized.
It doesn't matter that they would not treat us like this. We don't want to copy how they treat people.
Like you said, they caused 9/11 and do things like behead people on video. We don't want to lower ourselves to their level.
Wednesday, 25 June 2008
They Don't Think Too Highly of the Libertarian Party...
Posted on 20:15 by Unknown
http://news.yahoo.com/s/ap/20080625/ap_en_ot/actor_senate_bid
About former action movie star Sonny Landham challenging Mitch McConnell:
About former action movie star Sonny Landham challenging Mitch McConnell:
Political scientist Michael Baranowski, of Northern Kentucky University, predicted minimal impact on the Senate race, though Landham could take some votes from McConnell.
"I'm not sure which is more of a hurdle for Landham, being a former porn actor or being a Libertarian Party candidate," he said.Break Out of the Employee Comfort Zone
Posted on 15:52 by Unknown
I have a membership at the Smart Business Formula site, which is operated by online entrepreneurs Winston Yap and Thomas Choo. It has a collection of free tools, resources, and videos on internet marketing.
One of the videos on the site gave a reason why most people fail at internet marketing - and it was a great observation of human nature.
The problem is that many people who go into internet marketing are used to being employees - with its corresponding security and certainty.
When they get confronted by the insecurity and uncertainty of running their own business, and now have to make decisions, they unconsciously seek out a "boss" and get attracted to internet gurus. The guru becomes their "boss" and the marketer is back in his "comfort zone" as an employee.
For example, Joe was a web designer for a company, and his boss made the decisions, such as telling him what to design. At the end of the month, no matter how things went, Joe got his paycheck.
One day, Joe decided to "get rich" and start his own internet business. Well, Joe now found that he had to make all the design decisions, and there was no guarantee that he would earn any money at the end of the month.
So, he joined "Guru Mike's" newsletter, and bought his course on "Designing a killer website". Joe is now planning to attend Guru Mike's "Advanced Riches" seminar, etc.
The problem, of course, is that the guru is not your boss. - He is a marketer trying to make a sale to you.
The newbie marketer ends up spending his or her time reading info from gurus and ordering products - instead of taking action. They end up on many guru email lists with a lot of information products sitting on their hard drive.
The video concludes by suggesting that, instead of listening to gurus, it's better to get out of your employee "comfort zone" by focusing on enjoying the experience of internet marketing, rather than money - which will cause you stress.
They then compare internet marketing with learning to ride a bicycle, driving, or cooking. Even with a mentor guiding you, you will fall down.
Also, like riding a bike, you will only learn through developing experience and intuition. You have to develop abilities like intuitively evaluating products for money making potential. There are no shortcuts.
In addition, there is no substitute for action. You have probably heard the expression "Ready. Fire. Aim." You have to break the cycle of just buying courses and studying. To succeed at internet marketing, you have to take action, try something, and get feedback.
Write an e-book, set up a website, and try to sell it. Start a blog and try to monetize it with Adsense. You will make mistakes - you won't make an optimal amount of money - but that is ok.
Constantly test out things - try to optimize - and slowly you will increase your earnings.
Study and learning has its place - but you need to make your own mistakes and learn through failure and feedback.
One of the videos on the site gave a reason why most people fail at internet marketing - and it was a great observation of human nature.
The problem is that many people who go into internet marketing are used to being employees - with its corresponding security and certainty.
When they get confronted by the insecurity and uncertainty of running their own business, and now have to make decisions, they unconsciously seek out a "boss" and get attracted to internet gurus. The guru becomes their "boss" and the marketer is back in his "comfort zone" as an employee.
For example, Joe was a web designer for a company, and his boss made the decisions, such as telling him what to design. At the end of the month, no matter how things went, Joe got his paycheck.
One day, Joe decided to "get rich" and start his own internet business. Well, Joe now found that he had to make all the design decisions, and there was no guarantee that he would earn any money at the end of the month.
So, he joined "Guru Mike's" newsletter, and bought his course on "Designing a killer website". Joe is now planning to attend Guru Mike's "Advanced Riches" seminar, etc.
The problem, of course, is that the guru is not your boss. - He is a marketer trying to make a sale to you.
The newbie marketer ends up spending his or her time reading info from gurus and ordering products - instead of taking action. They end up on many guru email lists with a lot of information products sitting on their hard drive.
The video concludes by suggesting that, instead of listening to gurus, it's better to get out of your employee "comfort zone" by focusing on enjoying the experience of internet marketing, rather than money - which will cause you stress.
They then compare internet marketing with learning to ride a bicycle, driving, or cooking. Even with a mentor guiding you, you will fall down.
Also, like riding a bike, you will only learn through developing experience and intuition. You have to develop abilities like intuitively evaluating products for money making potential. There are no shortcuts.
In addition, there is no substitute for action. You have probably heard the expression "Ready. Fire. Aim." You have to break the cycle of just buying courses and studying. To succeed at internet marketing, you have to take action, try something, and get feedback.
Write an e-book, set up a website, and try to sell it. Start a blog and try to monetize it with Adsense. You will make mistakes - you won't make an optimal amount of money - but that is ok.
Constantly test out things - try to optimize - and slowly you will increase your earnings.
Study and learning has its place - but you need to make your own mistakes and learn through failure and feedback.
My Top 4 Stock Market Winners for 2008
Posted on 14:15 by Unknown
So far, 2008 has seen a bear market for stocks. Even my account is down about 13% so far this year - after multiple years of double-digit gains.
I am at peace because I have complete faith in my stock trading system, and view a bear market as the other side of the coin. The yin to the bull market's yang.
A bear market has its necessary place in the ecology of the marketplace.
However, it still feels comforting to look at my top four stock positions of 2008, if for no other reason than to show that some stocks do go up in a bear market.
ADP (ADP) I bought this stock on 1/24/08 at 38.71, because of the trend for businesses to outsource their payroll and human resources. The stock closed today at 42.46.
Visa (V) I previously wrote about this purchase. I bought it on 3/24/08 at 65.40, and it is now at 82.06. You can read part 1, part 2, and part 3 here.
The final two winners were bought because of high gas prices. Apache Energy (APA) was a pure hedge, and Cummins (CMI) is more of a longer term play on the need for fuel and energy economy.
Cummins is one of the world's leading manufacturers of diesel, natural gas engines and power generation equipment. It also manufactures automotive components such as filtration, turbochargers, fuel systems and emission solutions.
I bought APA on 12/13/06 at 68.84. It closed today at 132.66.
I bought CMI on 4/24/08 at 53.69. It closed today at 72.57.
I am at peace because I have complete faith in my stock trading system, and view a bear market as the other side of the coin. The yin to the bull market's yang.
A bear market has its necessary place in the ecology of the marketplace.
However, it still feels comforting to look at my top four stock positions of 2008, if for no other reason than to show that some stocks do go up in a bear market.
ADP (ADP) I bought this stock on 1/24/08 at 38.71, because of the trend for businesses to outsource their payroll and human resources. The stock closed today at 42.46.
Visa (V) I previously wrote about this purchase. I bought it on 3/24/08 at 65.40, and it is now at 82.06. You can read part 1, part 2, and part 3 here.
The final two winners were bought because of high gas prices. Apache Energy (APA) was a pure hedge, and Cummins (CMI) is more of a longer term play on the need for fuel and energy economy.
Cummins is one of the world's leading manufacturers of diesel, natural gas engines and power generation equipment. It also manufactures automotive components such as filtration, turbochargers, fuel systems and emission solutions.
I bought APA on 12/13/06 at 68.84. It closed today at 132.66.
I bought CMI on 4/24/08 at 53.69. It closed today at 72.57.
Hollywood, Bollywood to Merge Into One Movie Empire?
Posted on 12:36 by Unknown
ABC has a story that the potential $2 billion deal between Indian billionaire Anil Ambani's Reliance Entertainment and Stephen Spielberg's DreamWorks SKG is just one of many recent cross-over projects being discussed between Hollywood and Bollywood (the Indian film industry) actors, directors, and producers.
Tuesday, 24 June 2008
Wilbur Hardee Dead at 89
Posted on 23:46 by Unknown
I read that Wilbur Hardee, the founder of the Hardee's Hamburger chain, died.
His story shows that he was a true "wildcat" entrepreneur - not some buttoned down corporate type.
After he founded Hardee's in 1960, it expanded and went public in 1963. A couple of years later, he was out.
Why? He and his partners were out drinking and playing cards. He bet some of his stock and lost. His controlling interest was cut to 49%. He refused to be controlled, so he sold off the rest of his stock and walked away.
He ended up launching 85 more restaurants in his lifetime.
However, he always loved Hardee's and considered it to be his little child.
He had a simple philosophy: "If you don't eat it, don't give it to your customers. Make sure they get first quality."
His story shows that he was a true "wildcat" entrepreneur - not some buttoned down corporate type.
After he founded Hardee's in 1960, it expanded and went public in 1963. A couple of years later, he was out.
Why? He and his partners were out drinking and playing cards. He bet some of his stock and lost. His controlling interest was cut to 49%. He refused to be controlled, so he sold off the rest of his stock and walked away.
He ended up launching 85 more restaurants in his lifetime.
However, he always loved Hardee's and considered it to be his little child.
He had a simple philosophy: "If you don't eat it, don't give it to your customers. Make sure they get first quality."
Japan Airlines and Non-edible Biofuel
Posted on 23:32 by Unknown
In February, Virgin Atlantic successfully conducted the first flight of a commercial aircraft partially powered with biofuel. One of its engines had a mix of coconut and babassu oil.
Now, Japan Airlines is planning to test fly a 747 which will have one of its four engines powered by a non-edible biofuel mixed with kerosene. The other three engines will have normal fuel.
They are using a non-edible biofuel to avoid driving up the prices of a potential food source.
I think this is a great example of how capitalism works. Now that the idea of "going green" has reached the mainstream consumer, and gas prices are high, private enterprise is dealing with the situation - instead of bureaucrats.
I also like that JAL is using the Buddhist concept of the "middle way" - and using one engine out of four for the biofuel. This is better than taking an "all or nothing" approach, and not doing anything until the technology is perfected enough that they would use all four engines.
Finally, it is good to see that they are avoiding the debacle over corn ethanol. That was pushed on us by Midwest politicians. As a result, grain and livestock prices went up.
Now, Japan Airlines is planning to test fly a 747 which will have one of its four engines powered by a non-edible biofuel mixed with kerosene. The other three engines will have normal fuel.
They are using a non-edible biofuel to avoid driving up the prices of a potential food source.
I think this is a great example of how capitalism works. Now that the idea of "going green" has reached the mainstream consumer, and gas prices are high, private enterprise is dealing with the situation - instead of bureaucrats.
I also like that JAL is using the Buddhist concept of the "middle way" - and using one engine out of four for the biofuel. This is better than taking an "all or nothing" approach, and not doing anything until the technology is perfected enough that they would use all four engines.
Finally, it is good to see that they are avoiding the debacle over corn ethanol. That was pushed on us by Midwest politicians. As a result, grain and livestock prices went up.
Floating Through Life On A Yacht
Posted on 23:17 by Unknown
I just read a story in the Chicago Tribune about a man in Newport Beach, California who lives the retired life many of us dream about and are working hard to achieve.
His story makes me wonder if he is crazy - or are we for not copying him?
The man, Dave Dixon, is 60 years old and lives surrounded by the multi-million dollar views of the bay, and spends hours every day golfing or playing tennis.
Yet, 8 years ago, when Dixon decided to live his dream life, he was an unemployed, twice-divorced, middle-age man with no savings.
He still only works 15 hours a week, singing at private parties and two restaurants in Orange County.
How did he do it?
He bought a beat-up 37 foot yacht with a credit card for $10,000.
Instead of buying a permanent mooring, he saves money by being a guest boater in Newport Harbor. He is allowed to stay 15 days a month on a mooring, and another 5 days at anchor in the bay. He then anchors in the ocean for the last 10 days of the month.
He showers in the Orange County Harbor Patrol's guest facilities, and drives an old car with over 300,000 miles on it.
He became an ordained pastor, and sees himself as the richest resident of the beach town.
He believes that spirituality has set him free from the world's bondages, and he is living God's message that faith and people, not possessions, are of true value.
Here is a breakdown of his monthly expenses:
$15 Post office Box
$75 Rent for 15 days mooring in Newport Harbor
$85 storage unit
$90 car insurance
$150 gas and generator for yacht
$150 gas for car
---------------------------------------------
$565 Total monthly expenses
His story makes me wonder if he is crazy - or are we for not copying him?
The man, Dave Dixon, is 60 years old and lives surrounded by the multi-million dollar views of the bay, and spends hours every day golfing or playing tennis.
Yet, 8 years ago, when Dixon decided to live his dream life, he was an unemployed, twice-divorced, middle-age man with no savings.
He still only works 15 hours a week, singing at private parties and two restaurants in Orange County.
How did he do it?
He bought a beat-up 37 foot yacht with a credit card for $10,000.
Instead of buying a permanent mooring, he saves money by being a guest boater in Newport Harbor. He is allowed to stay 15 days a month on a mooring, and another 5 days at anchor in the bay. He then anchors in the ocean for the last 10 days of the month.
He showers in the Orange County Harbor Patrol's guest facilities, and drives an old car with over 300,000 miles on it.
He became an ordained pastor, and sees himself as the richest resident of the beach town.
He believes that spirituality has set him free from the world's bondages, and he is living God's message that faith and people, not possessions, are of true value.
Here is a breakdown of his monthly expenses:
$15 Post office Box
$75 Rent for 15 days mooring in Newport Harbor
$85 storage unit
$90 car insurance
$150 gas and generator for yacht
$150 gas for car
---------------------------------------------
$565 Total monthly expenses
Security Comes Second To Freedom
Posted on 22:40 by Unknown
I read a great "Letter to the Editor" in today's Chicago Tribune:
Security comes Second to Freedom
The Supreme Court's decision to grant due process to the prisoners at Guantanamo highlights the extensive freedoms we enjoy in this country. The majority of the dissenting opinions revolved around how the Supreme Court's ruling may degrade national security and possibly lead to the deaths of more Americans. However, this is one of the downsides of living in a free society.
Freedom gives people the right to free will and therefore the possibility to harm others. We have the right to bear arms, a right that certainly causes deaths in the form of gun violence; however, it would be an unjust restriction of our freedoms to take that right away or restrict it. The Patriot Act, although helpful to make America more secure, degrades our amended rights and freedoms.
What the Supreme Court did was underscore that security comes second to freedom.
That is why America is special.
That is why America is the greatest country on Earth.
And that is why America will prevail against evil Islamic radicals.
Just think: Possible Al Qaeda prisoners have more rights as prisoners of America than they do as free men in the very society they are fighting for. We are certainly the land of the free.
- Andrew Sargis
Chicago
Security comes Second to Freedom
The Supreme Court's decision to grant due process to the prisoners at Guantanamo highlights the extensive freedoms we enjoy in this country. The majority of the dissenting opinions revolved around how the Supreme Court's ruling may degrade national security and possibly lead to the deaths of more Americans. However, this is one of the downsides of living in a free society.
Freedom gives people the right to free will and therefore the possibility to harm others. We have the right to bear arms, a right that certainly causes deaths in the form of gun violence; however, it would be an unjust restriction of our freedoms to take that right away or restrict it. The Patriot Act, although helpful to make America more secure, degrades our amended rights and freedoms.
What the Supreme Court did was underscore that security comes second to freedom.
That is why America is special.
That is why America is the greatest country on Earth.
And that is why America will prevail against evil Islamic radicals.
Just think: Possible Al Qaeda prisoners have more rights as prisoners of America than they do as free men in the very society they are fighting for. We are certainly the land of the free.
- Andrew Sargis
Chicago
Vegas Entrepreneurs: Make 150k/week or Lose $15K/day
Posted on 11:40 by Unknown
When you think of Vegas and entertainment, you might think of expensive production acts with stars like Siegfried and Roy, or Celine Dion.
But, Vegas is also a place where independent entrepreneurs in the field of entertainment can win or lose big through four-walling.
In four-walling, an entertainer rents a stage for a minimum of one year, does their own promotion, and keeps the ticket sales.
In a way, it is like self-publishing a book vs. being traditionally published. Except that the financial risks are very high.
With a stage rent between $10,000 to $20,000 per week, an act with low overhead can make up to $150,000 a week. But, if the act bombs, you are on the hook for expenses for a whole year.
The article interviews comedian George Wallace.
He has been four-walling his own comedy show 6 nights a week for the last 6 years at the Flamingo Hotel in Las Vegas.
Even though he has been successful, he says that "You're a freaking idiot if you try to do this."
But, Vegas is also a place where independent entrepreneurs in the field of entertainment can win or lose big through four-walling.
In four-walling, an entertainer rents a stage for a minimum of one year, does their own promotion, and keeps the ticket sales.
In a way, it is like self-publishing a book vs. being traditionally published. Except that the financial risks are very high.
With a stage rent between $10,000 to $20,000 per week, an act with low overhead can make up to $150,000 a week. But, if the act bombs, you are on the hook for expenses for a whole year.
The article interviews comedian George Wallace.
He has been four-walling his own comedy show 6 nights a week for the last 6 years at the Flamingo Hotel in Las Vegas.
Even though he has been successful, he says that "You're a freaking idiot if you try to do this."
Monday, 23 June 2008
George Carlin RIP
Posted on 12:40 by Unknown
Here is the late George Carlin on death:
http://www.youtube.com/watch?v=3PiZSFIVFiU
Warning: Some adult language
http://www.youtube.com/watch?v=3PiZSFIVFiU
Warning: Some adult language
Saturday, 21 June 2008
$4 Gas Means New Life for Geo Metros
Posted on 08:13 by Unknown
As a contrarian, I love this story:
The much ridiculed Geo Metro, which GM sold from 1983-1992, has suddenly become very popular - due to $4 gas.
I drove a rental Geo more than 10 years ago, and remember how cramped it was. Yet, they get excellent gas mileage.
In fact, an old Geo metro costing $1,000 gets better mileage than a much more expensive Prius.
Now, the wholesale auction prices of Geos are up 27% this year, and used car dealers are selling them like hotcakes. They can't find enough to sell, because people who still have them are hanging on to them.
In fact, I read of one person who wanted to buy a replacement for his 1980's Geo that had 344,000 miles, no air conditioning, and a broken window. All the dealers were more interested in buying his Geo than selling him another car!
This story warms my contrarian heart, because:
1. A forgotten car (Geo) that never got much respect is suddenly popular.
2. Used Geos are more in demand than new Geos were.
3. Shows how GM, instead of keeping a contrarian bet for hedging, went all out in chasing the market. They abandoned the Geo and jumped on trucks. I bet they wish they were still making them ;-)
4. The much-maligned traditional used car dealers are coming ahead. In recent years, they were overshadowed by the trends of car dealers carrying "pre-owned" cars and CarMax. But, these places keep late model used cars. Independent used car dealers were the ones who got "stuck" with old Geos, and are now cleaning up.
This situation is an example of how changing circumstances can boost the fortunes of assets that are currently low valued.
In hindsight, if you owned a used car lot or had a lot of cars, think how much money you could have made if you sold off trucks a few years ago, and invested in high mileage Geos ;-)
I used to be a trend-following trader for many years - I got stressed and never consistently made great returns. When I abandoned the "experts" and went with my instincts, and developed my contrarian stock trading system, I started making great returns with no stress.
The much ridiculed Geo Metro, which GM sold from 1983-1992, has suddenly become very popular - due to $4 gas.
I drove a rental Geo more than 10 years ago, and remember how cramped it was. Yet, they get excellent gas mileage.
In fact, an old Geo metro costing $1,000 gets better mileage than a much more expensive Prius.
Now, the wholesale auction prices of Geos are up 27% this year, and used car dealers are selling them like hotcakes. They can't find enough to sell, because people who still have them are hanging on to them.
In fact, I read of one person who wanted to buy a replacement for his 1980's Geo that had 344,000 miles, no air conditioning, and a broken window. All the dealers were more interested in buying his Geo than selling him another car!
This story warms my contrarian heart, because:
1. A forgotten car (Geo) that never got much respect is suddenly popular.
2. Used Geos are more in demand than new Geos were.
3. Shows how GM, instead of keeping a contrarian bet for hedging, went all out in chasing the market. They abandoned the Geo and jumped on trucks. I bet they wish they were still making them ;-)
4. The much-maligned traditional used car dealers are coming ahead. In recent years, they were overshadowed by the trends of car dealers carrying "pre-owned" cars and CarMax. But, these places keep late model used cars. Independent used car dealers were the ones who got "stuck" with old Geos, and are now cleaning up.
This situation is an example of how changing circumstances can boost the fortunes of assets that are currently low valued.
In hindsight, if you owned a used car lot or had a lot of cars, think how much money you could have made if you sold off trucks a few years ago, and invested in high mileage Geos ;-)
I used to be a trend-following trader for many years - I got stressed and never consistently made great returns. When I abandoned the "experts" and went with my instincts, and developed my contrarian stock trading system, I started making great returns with no stress.
Friday, 20 June 2008
Beyond The Balance Sheet
Posted on 12:10 by Unknown
Forbes magazine has a regular feature where they look at companies using unconventional metrics, as opposed to conventional ones like book value and earnings.
In a recent article, they looked at three areas: employment(expansion and productivity), ability to pay dividends, and pensions to see which companies are doing well despite the possible recession, and which are positioned to cope with any further economic weakness.
Expansion
Here, they looked at which companies are adding employees, and investing in fixed capital expenditures. If you look at the first chart in the article, which is labeled "Expansion", you see that AT&T, Amazon.com, and Google are listed here. This is a sign that they expect to grow and have confidence.
Productivity
In the "productivity" chart, they show companies with changes in sales per employee. This can give an indication of corporate prosperity. In this case, AmerisourceBergen is an example of a prosperous company, while the numbers for Jacobs Engineering and Whole Foods are down.
Dividends
This table looks at dividends as a percentage of free cash flow. Stocks with rich dividends are usually recommended as safe places in a bear market. Here, we can see which stocks can easily make their payments (and have money to possibly increase them), and which companies can't really afford to pay them.
Pension Expectations
This table shows companies to avoid because they used a possibly over-optimistic return to calculate its pension liabilities.
Pension Surplus or Shortfall
This table shows stocks that have over funded (good) and under funded (bad) pensions.
Pension Allocation
The last table lists stocks you might want to avoid because a high percentage of their pension assets are allocated to risky investments.
In a recent article, they looked at three areas: employment(expansion and productivity), ability to pay dividends, and pensions to see which companies are doing well despite the possible recession, and which are positioned to cope with any further economic weakness.
Expansion
Here, they looked at which companies are adding employees, and investing in fixed capital expenditures. If you look at the first chart in the article, which is labeled "Expansion", you see that AT&T, Amazon.com, and Google are listed here. This is a sign that they expect to grow and have confidence.
Productivity
In the "productivity" chart, they show companies with changes in sales per employee. This can give an indication of corporate prosperity. In this case, AmerisourceBergen is an example of a prosperous company, while the numbers for Jacobs Engineering and Whole Foods are down.
Dividends
This table looks at dividends as a percentage of free cash flow. Stocks with rich dividends are usually recommended as safe places in a bear market. Here, we can see which stocks can easily make their payments (and have money to possibly increase them), and which companies can't really afford to pay them.
Pension Expectations
This table shows companies to avoid because they used a possibly over-optimistic return to calculate its pension liabilities.
Pension Surplus or Shortfall
This table shows stocks that have over funded (good) and under funded (bad) pensions.
Pension Allocation
The last table lists stocks you might want to avoid because a high percentage of their pension assets are allocated to risky investments.
Thursday, 19 June 2008
Things That Took Me 41 Years To Learn
Posted on 16:50 by Unknown
Things That Took Me 41 Years To Learn
It is mostly humorous, but three of them are very good:
If you had to identify, in one word, the reason why the human race has not achieved, and never will achieve, its full potential, that word would be "meetings."
People who want to share their religious views with you almost never want you to share yours with them.
A person who is nice to you, but rude to the waiter, is not a nice person. (This is very important. Pay attention. It never fails.)
It is mostly humorous, but three of them are very good:
If you had to identify, in one word, the reason why the human race has not achieved, and never will achieve, its full potential, that word would be "meetings."
People who want to share their religious views with you almost never want you to share yours with them.
A person who is nice to you, but rude to the waiter, is not a nice person. (This is very important. Pay attention. It never fails.)
The Little Numbered Stickers on Fruit
Posted on 16:40 by Unknown
It's always nice to learn something new about things right under your nose...
A Good Quote About The Constitution And Freedom
Posted on 16:35 by Unknown
When they took the fourth amendment, I was quiet because I didn't deal drugs.
When they took the sixth amendment, I was quiet because I was innocent.
When they took the second amendment, I was quiet because I didn't own a gun.
Now they've taken the first amendment, and I can say nothing about it.
-- Anon.
When they took the sixth amendment, I was quiet because I was innocent.
When they took the second amendment, I was quiet because I didn't own a gun.
Now they've taken the first amendment, and I can say nothing about it.
-- Anon.
Tuesday, 17 June 2008
Five Stock Picking Ideas
Posted on 08:06 by Unknown
Here are five stock picks from Forbes columnist Lisa Hess, who is a money manager based in New York:
1. Fannie Mae (FNM)- It will be a beneficiary of the current housing situation. It's market volume will expand as other mortgage lenders go out of business. Congress just expanded the loan limits that Fannie Mae can deal with. The guarantee fee that it receives has been increased from 20 to 27 basis points. Finally, it is currently priced below its 1996 low price (35) at which it would be at 1.1 times book value.
2. Sallie Mae (SLM) - It is the largest provider of government guaranteed student loans. The future demand for higher education looks strong. The new CEO has recently restructured SLM, but it is still trading near its 2000 price.
3.Amgen (AMGN) - This one is a bit of a gamble. Hess feels this is the biggest and maybe best company in the biotech sector. She says, "To buy fine stocks at good prices, you typically must wait for them to stumble." Amgen has "stumbled" because its two largest selling drugs (Aranesp and Epogen) account for 40% of sales, but are currently being investigated by the FDA. They are investigating whether the drugs (which fight anemia in cancer patients) may promote tumor growth. But Hess thinks this is already priced into the stock, and the market is "grossly undervaluing" its $3 billion in research and development.
4. Interactive Brokers Group (IBKR) - This is the world's largest market maker in options. It is up 17% since its May IPO, but is still cheaper than other publicly traded exchanges.
5. Target (TGT) - Hess feels the stock is a bargain at its current price. Target appeals to both bargain shoppers and those interested in style.
The risk / reward performance of these stocks can be enhanced if they are managed with the system in my stock trading book.
1. Fannie Mae (FNM)- It will be a beneficiary of the current housing situation. It's market volume will expand as other mortgage lenders go out of business. Congress just expanded the loan limits that Fannie Mae can deal with. The guarantee fee that it receives has been increased from 20 to 27 basis points. Finally, it is currently priced below its 1996 low price (35) at which it would be at 1.1 times book value.
2. Sallie Mae (SLM) - It is the largest provider of government guaranteed student loans. The future demand for higher education looks strong. The new CEO has recently restructured SLM, but it is still trading near its 2000 price.
3.Amgen (AMGN) - This one is a bit of a gamble. Hess feels this is the biggest and maybe best company in the biotech sector. She says, "To buy fine stocks at good prices, you typically must wait for them to stumble." Amgen has "stumbled" because its two largest selling drugs (Aranesp and Epogen) account for 40% of sales, but are currently being investigated by the FDA. They are investigating whether the drugs (which fight anemia in cancer patients) may promote tumor growth. But Hess thinks this is already priced into the stock, and the market is "grossly undervaluing" its $3 billion in research and development.
4. Interactive Brokers Group (IBKR) - This is the world's largest market maker in options. It is up 17% since its May IPO, but is still cheaper than other publicly traded exchanges.
5. Target (TGT) - Hess feels the stock is a bargain at its current price. Target appeals to both bargain shoppers and those interested in style.
The risk / reward performance of these stocks can be enhanced if they are managed with the system in my stock trading book.
Friday, 13 June 2008
John Hancock Owners Might Sell Parts of Building
Posted on 22:28 by Unknown
According to an article in the Chicago Tribune, the owners of Chicago's second tallest building, the John Hancock Center, may sell off some of the building in pieces.
Specifically, they are thinking of selling:
1. Retail space ( floors 1-2 and the plaza level)
2. Observation deck (floor 94)
3. The famous Signature Room restaurant (floors 95-96)
Some real estate experts think this will be a growing trend, because the credit crisis might make it harder for building owners to find buyers who can finance a whole purchase.
Also, the parts can be worth more when separated from the whole. In the case of the Hancock building, the 94th floor observation deck has 600,000 visitors a year - making it one of the state's biggest tourist attractions (an adult admission costs $15).
One estimate is that the retail space, observation deck, and restaurant could bring in a total of $200 million.
Specifically, they are thinking of selling:
1. Retail space ( floors 1-2 and the plaza level)
2. Observation deck (floor 94)
3. The famous Signature Room restaurant (floors 95-96)
Some real estate experts think this will be a growing trend, because the credit crisis might make it harder for building owners to find buyers who can finance a whole purchase.
Also, the parts can be worth more when separated from the whole. In the case of the Hancock building, the 94th floor observation deck has 600,000 visitors a year - making it one of the state's biggest tourist attractions (an adult admission costs $15).
One estimate is that the retail space, observation deck, and restaurant could bring in a total of $200 million.
Thursday, 12 June 2008
Congress and the Light Bulb
Posted on 23:28 by Unknown
NYC Doorman Wins $5 million
Posted on 15:03 by Unknown
A Park Avenue doorman won $5 million from a scratch off lottery card.
He wants to move into the building he works at, but the only apartment for sale costs $ 9.5 million.
He is keeping his job for now, so a millionaire will open doors for millionaires...
He wants to move into the building he works at, but the only apartment for sale costs $ 9.5 million.
He is keeping his job for now, so a millionaire will open doors for millionaires...
Wednesday, 11 June 2008
Why Are Mortgage Rates High?
Posted on 15:09 by Unknown
This past Sunday's Chicago Tribune business section had an article called "Stubborn mortgage rates defy conventional wisdom".
The article states that the Federal Reserve has aggressively cut interest rates, and houses are sitting around unsold - so mortgage rates should fall as lenders compete for the smaller pool of home buyers.
But, instead, 30-year fixed rate mortgages have remained above 6% for months and experts think the rates will increase in the near future.
Will 6% plus mortgage rates slow the recovery of the real estate market?
Some experts say no - instead people will be spurred to buy before rates go up. Also, from a historical perspective, 6.5% mortgage rates are still low.
The only trouble-spot is jumbo loans (amounts greater than $417,000). The housing bubble increased prices to the point where a lot of houses are now at jumbo loan levels, and the spread between jumbos and conventional 30-year fixed loans have recently doubled.
In the Chicago area last week, most lenders were charging slightly above 6% for conforming 30-year fixed loans, but 7 - 7.5% for jumbo loans.
Here are the factors keeping rates high, and pushing them higher:
1. The bursting of the subprime-lending bubble caused many large mortgage brokers to go out of business. This reduced the pool of mortgage lenders.
2. The surviving lenders are now gun-shy and conservative - they want to be better compensated for risk.
3. Most importantly, speculators think that the U.S. has narrowly avoided a recession and inflation is now a bigger threat to the economy. The view is that the Federal Reserve is not likely to lower interest rates anymore, and may start raising them in October.
As a result, prices for the 10 year Treasury note have declined - thus pushing up their yield (the benchmark for mortgage rates).
The article states that the Federal Reserve has aggressively cut interest rates, and houses are sitting around unsold - so mortgage rates should fall as lenders compete for the smaller pool of home buyers.
But, instead, 30-year fixed rate mortgages have remained above 6% for months and experts think the rates will increase in the near future.
Will 6% plus mortgage rates slow the recovery of the real estate market?
Some experts say no - instead people will be spurred to buy before rates go up. Also, from a historical perspective, 6.5% mortgage rates are still low.
The only trouble-spot is jumbo loans (amounts greater than $417,000). The housing bubble increased prices to the point where a lot of houses are now at jumbo loan levels, and the spread between jumbos and conventional 30-year fixed loans have recently doubled.
In the Chicago area last week, most lenders were charging slightly above 6% for conforming 30-year fixed loans, but 7 - 7.5% for jumbo loans.
Here are the factors keeping rates high, and pushing them higher:
1. The bursting of the subprime-lending bubble caused many large mortgage brokers to go out of business. This reduced the pool of mortgage lenders.
2. The surviving lenders are now gun-shy and conservative - they want to be better compensated for risk.
3. Most importantly, speculators think that the U.S. has narrowly avoided a recession and inflation is now a bigger threat to the economy. The view is that the Federal Reserve is not likely to lower interest rates anymore, and may start raising them in October.
As a result, prices for the 10 year Treasury note have declined - thus pushing up their yield (the benchmark for mortgage rates).
Honey Laundering
Posted on 14:54 by Unknown
In late May, U.S. Immigration and Customs agents arrested 2 Chicago-based employees of Alfred L. Wolff, Inc. for suspected "honey laundering" - for conspiring to illegally import honey from China.
In 2001, the U.S. government decided that China was "dumping" its honey in the U.S. at unfairly low prices, so they imposed a duty on all Chinese honey imports.
Companies began to "honey launder" by sending Chinese honey to Russia or Eastern Europe, where it was repackaged to look like it was coming from there.
Now, authorities cracked down on Wolff, Inc. because some of their honey tested positive for a banned antibiotic called chloramphenicol, which has been found previously in Chinese honey.
This antibiotic is banned in the West because it can cause aseptic anemia, a rare but potentially fatal blood disorder.
In 2001, the U.S. government decided that China was "dumping" its honey in the U.S. at unfairly low prices, so they imposed a duty on all Chinese honey imports.
Companies began to "honey launder" by sending Chinese honey to Russia or Eastern Europe, where it was repackaged to look like it was coming from there.
Now, authorities cracked down on Wolff, Inc. because some of their honey tested positive for a banned antibiotic called chloramphenicol, which has been found previously in Chinese honey.
This antibiotic is banned in the West because it can cause aseptic anemia, a rare but potentially fatal blood disorder.
Tuesday, 10 June 2008
How Menards Builds Demand for Its Products
Posted on 15:32 by Unknown
Menards is a big-box home improvement chain (like Home Depot and Lowes) that is based in the Midwest.
I recently read in the Chicago Tribune that they found a unique way to create demand for their drills, saws, etc.
When Menards wants to build a new mega store, they can negotiate good prices for land. They aquire more than they need, and sell the rest as a subdivision to home builders at attractive prices.
In exchange, the builders agree to buy their building materials and supplies from Menards.
One of their first projects was in the town of Yorkville (at the far west fringe of the Chicago area). In 2001, Menards bought 250 acres of farmland and got Yorkville to annex it.
They used some of the land for a new store, and then put in utilities and infrastructure for single family homes, and sold 129 lots to AMG Homes, who agreed to buy its building materials from Menards.
Since 2005, AMG has built 110 homes there.
Of course, I realized that there is another benefit. When all those future sub-division owners need to work on a home-improvement project, they will find themselves conveniently located next to a Menards ;-)
I recently read in the Chicago Tribune that they found a unique way to create demand for their drills, saws, etc.
When Menards wants to build a new mega store, they can negotiate good prices for land. They aquire more than they need, and sell the rest as a subdivision to home builders at attractive prices.
In exchange, the builders agree to buy their building materials and supplies from Menards.
One of their first projects was in the town of Yorkville (at the far west fringe of the Chicago area). In 2001, Menards bought 250 acres of farmland and got Yorkville to annex it.
They used some of the land for a new store, and then put in utilities and infrastructure for single family homes, and sold 129 lots to AMG Homes, who agreed to buy its building materials from Menards.
Since 2005, AMG has built 110 homes there.
Of course, I realized that there is another benefit. When all those future sub-division owners need to work on a home-improvement project, they will find themselves conveniently located next to a Menards ;-)
Are You Part of The Middle Class?
Posted on 14:42 by Unknown
Chances are, you probably at least think you are.
Back in April, researchers from the Pew Center surveyed Americans, and found that most of the respondents claimed to be middle class:
Pew's definition of middle class is $45,000 - $90,000, which falls in the starred groups above.
Pew defined the middle-class as adults who live in a household with an annual income that falls within 75% to 150% of the median (based on Census Bureau reports).
Back in April, researchers from the Pew Center surveyed Americans, and found that most of the respondents claimed to be middle class:
| family income(in thousands) | % who claimto be middle class |
| <19.9 | 41 |
| 20-29.9 | 49 |
| 30-39.9 | 59 |
| 40-49.9 | 59* |
| 50-74.9 | 68* |
| 75-99.9 | 63* |
| 100-149.9 | 47 |
| 150+ | 33 |
Pew's definition of middle class is $45,000 - $90,000, which falls in the starred groups above.
Pew defined the middle-class as adults who live in a household with an annual income that falls within 75% to 150% of the median (based on Census Bureau reports).
The Indiana Jones Gamble
Posted on 14:25 by Unknown
It looks like the gamble will pay off for George Lucas, Steven Spielberg, and Harrison Ford.
According to an article I read last month in the Chicago Tribune, the three of them waived all of their fees in exchange for the back end of "Indiana Jones and the Kingdom of the Crystal Skull".
Most movie franchises (like Harry Potter, Spiderman, etc.) are owned by studios. They pay the top film-makers and actors large upfront fees and a cut of the ticket sales before recouping their costs. Since they own the properties, they can make more money through other back end channels.
George Lucas, however, is one of the few filmmakers to control his properties. He has full ownership of Star Wars and Indiana Jones.
Paramount wanted to protect themselves from the possibility of heavy losses on one picture. So, when the Indiana Jones movie went over-budget, the three superstars agreed to waive their upfront fees.
Paramount would get the gross up to $400 million (this would make all its money back plus its distribution fee). After that, the studio will get 12.5 cents from each additional dollar, while Lucas, etc. will earn 87.5 cents.
Since the movie succeeded, Lucas, Spielberg, and Ford should make out well.
Had Indiana Jones wanted to protect his investment risk when spread betting all he would have to do is place a stop-loss order. Profits made from spread betting are tax-free, so there is more money for more adventures.
According to an article I read last month in the Chicago Tribune, the three of them waived all of their fees in exchange for the back end of "Indiana Jones and the Kingdom of the Crystal Skull".
Most movie franchises (like Harry Potter, Spiderman, etc.) are owned by studios. They pay the top film-makers and actors large upfront fees and a cut of the ticket sales before recouping their costs. Since they own the properties, they can make more money through other back end channels.
George Lucas, however, is one of the few filmmakers to control his properties. He has full ownership of Star Wars and Indiana Jones.
Paramount wanted to protect themselves from the possibility of heavy losses on one picture. So, when the Indiana Jones movie went over-budget, the three superstars agreed to waive their upfront fees.
Paramount would get the gross up to $400 million (this would make all its money back plus its distribution fee). After that, the studio will get 12.5 cents from each additional dollar, while Lucas, etc. will earn 87.5 cents.
Since the movie succeeded, Lucas, Spielberg, and Ford should make out well.
Indiana Jones: The Alternative Investment
Had Indiana Jones wanted to protect his investment risk when spread betting all he would have to do is place a stop-loss order. Profits made from spread betting are tax-free, so there is more money for more adventures.
Class Differences in India
Posted on 13:30 by Unknown
Here is what it is like when there is not much of a middle class, and you are either really rich or really poor...
Monday, 9 June 2008
Another Left-handed President
Posted on 14:31 by Unknown
We will have another left-handed president. Both McCain and Obama are left-handed.
Left handers make up about 10% of the population but are over-represented at the higher levels of achievement.
4 out of the last 6 presidents were left handed:
Gerald Ford
Ronald Reagan
George Bush (the father of the current one)
Bill Clinton
Did I mention that my son Anshul and I are also both left handed? ;-)
Left handers make up about 10% of the population but are over-represented at the higher levels of achievement.
4 out of the last 6 presidents were left handed:
Gerald Ford
Ronald Reagan
George Bush (the father of the current one)
Bill Clinton
Did I mention that my son Anshul and I are also both left handed? ;-)
Wednesday, 4 June 2008
Dissecting Buffett's portfolio
Posted on 10:12 by Unknown
I read an interesting article in the Tribune called "Dissecting Buffett's portfolio".
The analyst analyzed Buffett's holdings and he found three that are especially worth buying:
GlaxoSmithKline - several interesting new vaccines. Cervarix (cervical cancer vaccine) is expected to generate over $1 billion in sales. More positives: capital appreciation and dividend yield over 5%.
Sanofi-Aventis - strong diabetes franchise. Diabetes is on the increase. Buffett just invested another $1.5 billion last year
Johnson & Johnson - Diversified enough to ride out the economy. Buffet put in another $2.7 billion last year.
These three stocks should work very well with the Stock Trading Riches trading system.
The analyst analyzed Buffett's holdings and he found three that are especially worth buying:
GlaxoSmithKline - several interesting new vaccines. Cervarix (cervical cancer vaccine) is expected to generate over $1 billion in sales. More positives: capital appreciation and dividend yield over 5%.
Sanofi-Aventis - strong diabetes franchise. Diabetes is on the increase. Buffett just invested another $1.5 billion last year
Johnson & Johnson - Diversified enough to ride out the economy. Buffet put in another $2.7 billion last year.
These three stocks should work very well with the Stock Trading Riches trading system.
Tuesday, 3 June 2008
Bo Diddley (1928 - 2008) - Deceptively Simple Music
Posted on 16:18 by Unknown
Monday, 2 June 2008
Free Business Cards
Posted on 15:53 by Unknown
An online printing company called VistaPrint is running a special trial offer for free business cards.
Renting vs. Owning in Retirement
Posted on 15:27 by Unknown
Syndicated financial columnist Scott Burns periodically answers reader mail.
He recently answered a letter from a 61 year old woman who was going to pay off her townhouse in 2 years.
The woman made the observation that the townhouse would be 15 years old and, in the near future, would likely need repairs.
She and her husband had the idea to sell the townhouse and rent.
They would put the proceeds (estimated to be $400 - 450k) into a CD earning 5%. This would yield about $20,000 - which would more than cover the rent - without touching the principle.
They would be losing out on future appreciation, but would avoid the costs of home ownership.
Scott Burns thought it was a very good idea - ahead of the crowd. He thinks that middle-income Americans will discover that long term equity will be a "lever" that helps them in retirement.
The only change he recommended was to substitute the CD with a conservative portfolio that includes equities. Because, if they keep the money in utlra-safe CD's - inflation would guarantee that their rent would eventually exceed the income.
For a related post, check out "Should you have a mortgage in retirement?"
He recently answered a letter from a 61 year old woman who was going to pay off her townhouse in 2 years.
The woman made the observation that the townhouse would be 15 years old and, in the near future, would likely need repairs.
She and her husband had the idea to sell the townhouse and rent.
They would put the proceeds (estimated to be $400 - 450k) into a CD earning 5%. This would yield about $20,000 - which would more than cover the rent - without touching the principle.
They would be losing out on future appreciation, but would avoid the costs of home ownership.
Scott Burns thought it was a very good idea - ahead of the crowd. He thinks that middle-income Americans will discover that long term equity will be a "lever" that helps them in retirement.
The only change he recommended was to substitute the CD with a conservative portfolio that includes equities. Because, if they keep the money in utlra-safe CD's - inflation would guarantee that their rent would eventually exceed the income.
For a related post, check out "Should you have a mortgage in retirement?"
Trading Oil Through an ETF
Posted on 07:28 by Unknown
There are now ETFs (Exchange Traded Funds) that, instead of tracking stocks, track commodities.
So, instead of trading futures, which are heavily leveraged, you can now trade commodities just like stocks.
There is an ETF called USO which follows the price of oil.
In hind sight, it would have been a good investment over the last year.
However, now that oil prices have gone up so much without a correction, I'm not sure if oil will go up a lot more in the near future.
In fact, if the dollar should stop declining, or strengthen, I think the price of oil may drop.
If the price of oil should decrease, it could give you a good opportunity to buy USO, because I think that, over the long term, oil prices will increase (i.e. it will fluctuate with higher highs and higher lows).
So, instead of trading futures, which are heavily leveraged, you can now trade commodities just like stocks.
There is an ETF called USO which follows the price of oil.
In hind sight, it would have been a good investment over the last year.
However, now that oil prices have gone up so much without a correction, I'm not sure if oil will go up a lot more in the near future.
In fact, if the dollar should stop declining, or strengthen, I think the price of oil may drop.
If the price of oil should decrease, it could give you a good opportunity to buy USO, because I think that, over the long term, oil prices will increase (i.e. it will fluctuate with higher highs and higher lows).
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