Today's MarketStats on Healthcare companies include: MIV Therapeutics, Inc. (OTC BB: MIVT.OB), Johnson & Johnson (NYSE: JNJ), Medtronic Inc. (NYSE: MDT), Boston Scientific (NYSE: BSX) and Angiotech Pharmaceuticals Inc. (NasdaqGS: ANPI).
MIV Therapeutics, Inc. (OTC BB: MIVT.OB) MIV Therapeutics is an advanced stage, research and development company pursuing the commercialization of the next-generation biocompatible coatings for stents and other medical devices, and advanced drug delivery systems with the intent of providing healing solutions for cardiovascular disease and other medical conditions.
Although MIV is near its 52 week low, the previous trading day saw an increase of 6.25% on 39% more trading volume than their 3 month moving average.
To view a complete profile on MIV Therapeutics, Inc., visit our financial courier at StockUpTicks.com
Johnson & Johnson (NYSE: JNJ) Johnson & Johnson engages in the manufacture and sale of various products in the health care field worldwide. The company was founded in 1885 and is based in New Brunswick, New Jersey.
JNJ has typical profitability characteristics of a company in the Major Drugs industry. While it is better than most at converting revenues to profits on a net and operating margin basis, its gross margin is on par with the industry norm.
JNJ saw earnings decline in spite of positive revenue growth during the past twelve months. Additionally, the average company in the Major Drugs industry was able to grow earnings at a faster rate than JNJ.
Medtronic Inc. (NYSE: MDT) Medtronic, Inc. is engaged in medical technology, alleviating pain, restoring health, and extending life for people around the world. The company was founded in 1949 and is headquartered in Minneapolis, Minnesota.
Because MDT is in the Medical Equipment & Supplies industry and has positive earnings, the PEG, PE, and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PEG or PE since the company has positive earnings. Therefore MDT seems fairly valued with a PEG of 1.7524 that is inline with the Medical Equipment & Supplies industry median of 1.73, which is supported by a PE of 25.0992 that is also inline with the industry median of 23.43.
Based on its gross margin, operating margin, and net margin, MDT converts a larger percentage of its revenues to profits than most other companies in the Medical Equipment & Supplies industry. Furthermore, the company is profitable with an operating margin of 21.16%.
Boston Scientific (NYSE: BSX) Boston Scientific Corporation engages in the development, manufacture, and marketing of medical devices that are used in interventional medical specialties worldwide. The company offers its products in three groups: Cardiovascular, Endosurgery, and Neuromodulation. The company was founded in 1979 and is headquartered in Natick, Massachusetts.
Earnings growth at BSX outpaced revenue growth over the trailing twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this result was better than that of the average company in the Medical Equipment & Supplies industry.
BSX has a debt to total capital ratio of 35.17% which is in-line with the Medical Equipment & Supplies industry's norm. Its Interest Coverage ratio is only -3.14, which means that it does not earn enough from day-to-day operations to service its debt. However, the Quick ratio shows that the balance sheet can make up for this shortfall as there are enough liquid assets to satisfy current obligations.
Angiotech Pharmaceuticals Inc. (NasdaqGS: ANPI) Angiotech Pharmaceuticals, Inc. operates as a specialty pharmaceutical and medical device company. It discovers, develops, and markets technologies and medical products for local diseases and complications associated with medical device implants, surgical interventions, and acute injury. The company was founded in 1989 and is headquartered in Vancouver, Canada.
Because the earnings of ANPI are not available, the Price to Sales and Price to Book ratios are the most appropriate valuation measures. Therefore ANPI seems valued at a discount with a Price to Sales ratio of 0.9861, one of the lowest in the Biotechnology & Drugs industry, which is supported by a Price to Book of 0.6392 that is also among the lowest in the industry.
ANPI is one of the most highly leveraged companies in the Biotechnology & Drugs industry and has a Debt to Total Capital ratio of 56.56%. Additionally, the percentage of debt used in its capital structure grew this year. Its Interest Coverage ratio is only -0.56, which means that it does not earn enough from day-to-day operations to service its debt. However, the Quick ratio shows that the balance sheet can make up for this shortfall as there are enough liquid assets to satisfy current obligations.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been paid twenty four thousand dollars by MIV Therapeutics Inc. for preparation and distribution of this report and other services over a ninety day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Saturday, February 23, 2008
Wednesday, February 20, 2008
SectorWatch.biz Issues MarketStats on SWTS, FIZZ, JSDA, VPS and LBIX
Today's MarketStats on beverage companies include: Sweet Success Enterprises (OTC BB: SWTS.OB), National Beverage Corp. (NASDAQ: FIZZ), Jones Soda Co. (Nasdaq: JSDA), Vermont Pure Holdings, Ltd. (Amex: VPS) and Leading Brands, Inc. (NasdaqCM: LBIX)
Sweet Success Enterprises (OTC BB: SWTS.OB) Sweet Success Enterprises, Inc. engages in the production, distribution, and marketing of ready-to-drink functional health beverages in the United States. The company produces, markets and distributes a line of all-natural nutritional and functional beverages through approximately 500 retail and chain stores. Sweet Success is based in San Antonio, Texas.
SWTS grew earnings in the face of decreased revenues over the past twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this performance was on-par with the typical company in the Beverages (Nonalcoholic) industry.
With the conclusion of the recent clinical trial results of SWTS's revolutionary Diabetic-Friendly Beverage, GlucaSafe, the company could be poised to reverse a recent price movement that has pushed them to a 52 week low.
To view a complete profile on Sweet Success Enterprises, visit our financial courier at StockUpTicks.com
National Beverage Corp. (NASDAQ: FIZZ) National Beverage Corp. develops, manufactures, markets and distributes a portfolio of beverage products throughout the United States. The Company develops and sells flavored beverage products, including a selection of flavored soft drinks, juices, sparkling waters and energy drinks. Its flagship brands, Shasta and Faygo, each have over 50 flavor varieties. National Beverage also offers a line of flavored beverage products for health-conscious consumers, including Everfresh, Home Juice, and Mr. Pure 100% juice and juice-based products, and LaCroix, Mt. Shasta, Crystal Bay and ClearFruit flavored and spring water products. In addition, the Company produces energy drinks and powdered beverage products, including Rip It, Rip It Chic, FREEK and PowerBlast.
Because FIZZ is in the Beverages (Nonalcoholic) industry and has positive earnings, the PE and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PE since the company has positive earnings. Therefore FIZZ seems valued at a discount with a PE value of 15.042, one of the lowest in the Beverages (Nonalcoholic) industry.
FIZZ uses little or no debt in its capital structure and may have less financial risk than the industry aggregate.
Jones Soda Co. (Nasdaq: JSDA) Jones Soda Co. engages in the development, production, marketing, and distribution of beverages primarily in the United States and Canada. The company distributes its products through a network of independent distributors and national retail accounts, as well as through licensing and distribution arrangements. Jones Soda was founded in 1986 and is headquartered in Seattle, Washington.
Based on its gross, operating, and net margins, JSDA converts a percentage of its revenues to profits that is inline with other companies in the Beverages (Nonalcoholic) industry. However, the company, like most others in the industry, is losing money on an operating basis.
JSDA saw earnings decline in spite of positive revenue growth during the past twelve months. Additionally, the average company in the Beverages (Nonalcoholic) industry was able to improve its earnings result over this same period.
Vermont Pure Holdings, Ltd. (Amex: VPS) Vermont Pure Holdings, Ltd. is engaged in the production, marketing and distribution of bottled water, and the distribution of coffee, ancillary products and other office refreshment products. The company markets its products primarily under the trade names of Vermont Pure Natural Spring Water and Crystal Rock. Vermont Pure Holdings was founded in 1989 and is headquartered in Watertown, Connecticut.
VPS is consistent, if not average, compared to other companies in the Beverages (Nonalcoholic) industry. With a Return on Assets, Revenues Per Employee, and Return on Equity of 2.56%, $197,669.70, and 6.36% respectively, the company is by all measures doing a fair job relative to its industry peers.
VPS has a debt to total capital ratio of 50.80% which is in-line with the Beverages (Nonalcoholic) industry's norm. With an Interest Coverage ratio of 2.57 and a Quick ratio of 1.09 the company should be able to comfortably repay its debt.
Leading Brands, Inc. (NasdaqCM: LBIX) Leading Brands, Inc. is engaged in beverage bottling, distribution, sales, merchandising, brand development, brand licensing and brand management of beverage and food products across North America. The company also produces its own line of beverages under the TrueBlue, LiteBlue, Infinite Health Water, TREK, Nitro and Country Harvest Natural Juices brand names. It serves wholesale and retail grocery suppliers, and food distributors. The company was founded in 1986 and is headquartered in Vancouver, Canada.
Because the earnings of LBIX are not available, the Price to Sales and Price to Book ratios are the most appropriate valuation measures. Therefore LBIX seems inexpensive with a Price to Sales ratio of 0.8883, below the Beverages (Nonalcoholic) industry median PS ratio of 1.19, which is supported by a Price to Book of 1.4839 that is also below the industry median of 2.36.
Based on its gross, operating, and net margin, the cost structure at LBIX eats up a higher percentage of its revenues than most companies in the Beverages (Nonalcoholic) industry. To make matters worse, the company is losing money on an operating basis.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted three hundred and twenty five thousand restricted shares of SWTS common stock by Sweet Success Enterprises for preparation and distribution of this report and other services over a six month period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Sweet Success Enterprises (OTC BB: SWTS.OB) Sweet Success Enterprises, Inc. engages in the production, distribution, and marketing of ready-to-drink functional health beverages in the United States. The company produces, markets and distributes a line of all-natural nutritional and functional beverages through approximately 500 retail and chain stores. Sweet Success is based in San Antonio, Texas.
SWTS grew earnings in the face of decreased revenues over the past twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this performance was on-par with the typical company in the Beverages (Nonalcoholic) industry.
With the conclusion of the recent clinical trial results of SWTS's revolutionary Diabetic-Friendly Beverage, GlucaSafe, the company could be poised to reverse a recent price movement that has pushed them to a 52 week low.
To view a complete profile on Sweet Success Enterprises, visit our financial courier at StockUpTicks.com
National Beverage Corp. (NASDAQ: FIZZ) National Beverage Corp. develops, manufactures, markets and distributes a portfolio of beverage products throughout the United States. The Company develops and sells flavored beverage products, including a selection of flavored soft drinks, juices, sparkling waters and energy drinks. Its flagship brands, Shasta and Faygo, each have over 50 flavor varieties. National Beverage also offers a line of flavored beverage products for health-conscious consumers, including Everfresh, Home Juice, and Mr. Pure 100% juice and juice-based products, and LaCroix, Mt. Shasta, Crystal Bay and ClearFruit flavored and spring water products. In addition, the Company produces energy drinks and powdered beverage products, including Rip It, Rip It Chic, FREEK and PowerBlast.
Because FIZZ is in the Beverages (Nonalcoholic) industry and has positive earnings, the PE and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PE since the company has positive earnings. Therefore FIZZ seems valued at a discount with a PE value of 15.042, one of the lowest in the Beverages (Nonalcoholic) industry.
FIZZ uses little or no debt in its capital structure and may have less financial risk than the industry aggregate.
Jones Soda Co. (Nasdaq: JSDA) Jones Soda Co. engages in the development, production, marketing, and distribution of beverages primarily in the United States and Canada. The company distributes its products through a network of independent distributors and national retail accounts, as well as through licensing and distribution arrangements. Jones Soda was founded in 1986 and is headquartered in Seattle, Washington.
Based on its gross, operating, and net margins, JSDA converts a percentage of its revenues to profits that is inline with other companies in the Beverages (Nonalcoholic) industry. However, the company, like most others in the industry, is losing money on an operating basis.
JSDA saw earnings decline in spite of positive revenue growth during the past twelve months. Additionally, the average company in the Beverages (Nonalcoholic) industry was able to improve its earnings result over this same period.
Vermont Pure Holdings, Ltd. (Amex: VPS) Vermont Pure Holdings, Ltd. is engaged in the production, marketing and distribution of bottled water, and the distribution of coffee, ancillary products and other office refreshment products. The company markets its products primarily under the trade names of Vermont Pure Natural Spring Water and Crystal Rock. Vermont Pure Holdings was founded in 1989 and is headquartered in Watertown, Connecticut.
VPS is consistent, if not average, compared to other companies in the Beverages (Nonalcoholic) industry. With a Return on Assets, Revenues Per Employee, and Return on Equity of 2.56%, $197,669.70, and 6.36% respectively, the company is by all measures doing a fair job relative to its industry peers.
VPS has a debt to total capital ratio of 50.80% which is in-line with the Beverages (Nonalcoholic) industry's norm. With an Interest Coverage ratio of 2.57 and a Quick ratio of 1.09 the company should be able to comfortably repay its debt.
Leading Brands, Inc. (NasdaqCM: LBIX) Leading Brands, Inc. is engaged in beverage bottling, distribution, sales, merchandising, brand development, brand licensing and brand management of beverage and food products across North America. The company also produces its own line of beverages under the TrueBlue, LiteBlue, Infinite Health Water, TREK, Nitro and Country Harvest Natural Juices brand names. It serves wholesale and retail grocery suppliers, and food distributors. The company was founded in 1986 and is headquartered in Vancouver, Canada.
Because the earnings of LBIX are not available, the Price to Sales and Price to Book ratios are the most appropriate valuation measures. Therefore LBIX seems inexpensive with a Price to Sales ratio of 0.8883, below the Beverages (Nonalcoholic) industry median PS ratio of 1.19, which is supported by a Price to Book of 1.4839 that is also below the industry median of 2.36.
Based on its gross, operating, and net margin, the cost structure at LBIX eats up a higher percentage of its revenues than most companies in the Beverages (Nonalcoholic) industry. To make matters worse, the company is losing money on an operating basis.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted three hundred and twenty five thousand restricted shares of SWTS common stock by Sweet Success Enterprises for preparation and distribution of this report and other services over a six month period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Wednesday, February 13, 2008
SectorWatch.biz Issues MarketStats on CVBT, BSX, MDT, CXM and DNA
Today's MarketStats on Healthcare and Biotechnology companies include: CardioVascular Bio Therapeutics, Inc. (OTCBB: CVBT), Boston Scientific Corp. (NYSE: BSX), Medtronic Inc. (NYSE: MDT), Cardium Therapeutics Inc. (AMEX: CXM) and Genentech Inc. (NYSE: DNA).
CardioVascular Bio Therapeutics, Inc. (OTCBB: CVBT) CardioVascular Bio Therapeutics, Inc., is a development stage biopharmaceutical company that focuses on developing and marketing protein drug candidates used in the treatment of cardiovascular disease. The company is headquartered in Las Vegas, NV.
CVBT has bucked the overall Market trend, posting a 10.91% 52 week return. As many Markets were experiencing heavy losses in January, CVBT had a significant increase in their share price and appears to have established a new and higher trading range from a technical standpoint. The new “resistance level” is at the $1.20 share price with upside selling pressure coming in around the $1.40 range. If CVBT can trade through this range and close higher, it could be seen as a bullish indicator.
The inspiring yearly return was helped by their breakthrough angiogenesis therapy. This therapy is currently featured in the February 2008 issue of “Reader’s Digest.” The article, titled, “Heart Hope” by Lisa Collier Cool, refers to CVBT’s therapy as a “new lease on life” for patients suffering from severe coronary heart disease who do not have any other viable treatment options. This exposure and the technology behind it are a huge positive for the company.
To view a complete profile on CardioVascular Bio Therapeutics, Inc., visit our financial courier at StockUpTicks.com
Boston Scientific Corp.(NYSE: BSX) Boston Scientific Corporation engages in the development, manufacture, and marketing of medical devices that are used in interventional medical specialties worldwide. The company offers its products in three groups: Cardiovascular, Endosurgery, and Neuromodulation.
This past Tuesday, BSX announced that a U.S. District Court jury in Marshall, Texas has reached a verdict in a patent infringement suit brought against the Company by Dr. Bruce Saffran. No injunction was requested, but the jury awarded damages of $431 million.
With a 26% drop over the past year and a negative net income, volatility could continue for the foreseeable future.
Medtronic Inc. (NYSE: MDT) Medtronic, Inc. is engaged in medical technology, alleviating pain, restoring health, and extending life for people around the world. The company was founded in 1949 and is headquartered in Minneapolis, Minnesota.
MDT is consistently one of the most efficient companies in the Medical Equipment & Supplies industry. With a Return on Assets, Revenues per Employee, and Return on Equity of 14.50%, $363,981.00, and 26.32% respectively, they are among the most effective companies in the industry.
Based on its gross margin, operating margin, and net margin, MDT converts a larger percentage of its revenues to profits than most other companies in the Medical Equipment & Supplies industry. Furthermore, the company is profitable with an operating margin of 28.11%.
Cardium Therapeutics Inc. (AMEX: CXM) Cardium Therapeutics, Inc. (Cardium) is a medical technology company primarily focused on the development and commercialization of biologic therapeutics and medical devices for cardiovascular and ischemic disease. The company was founded in 2003 and is based in San Diego, California.
Although earnings at CXM grew over the last twelve months, they failed to keep pace with the growth in revenues. This may mean that the company is becoming less efficient at using its resources. However, this result was better than that of the average company in the Biotechnology & Drugs industry.
While CXM has little or no debt and, thus, little financial risk, it has a cost structure that eats up a percentage of its revenues that is among the highest of any company in the Biotechnology & Drugs industry. To make matters worse, the company is losing money on an operating basis.
Genentech Inc. (NYSE: DNA) is a biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for unmet medical needs. The Company manufactures and commercializes multiple biotechnology products, and receives royalties from companies that are licensed to market products based on its technology.
Yesterday, Genentech traded higher by .93 cents per share to $70.85 after releasing positive data from the AVADO study, with Avastin measuring progression-free survival (PFS) in patients with metastatic breast cancer. The company said the Food and Drug Administration is schedule to rule Feb. 23 on an approval to use Avastin in combination with chemotherapy to treat breast cancer.
Earnings growth at DNA outpaced revenue growth over the trailing twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this result was better than that of the average company in the Biotechnology & Drugs industry.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted twenty thousand restricted shares of CVBT common stock by CardioVascular BioTherapeutics Inc. for preparation and distribution of this report and other advertising services over a ninety day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
CardioVascular Bio Therapeutics, Inc. (OTCBB: CVBT) CardioVascular Bio Therapeutics, Inc., is a development stage biopharmaceutical company that focuses on developing and marketing protein drug candidates used in the treatment of cardiovascular disease. The company is headquartered in Las Vegas, NV.
CVBT has bucked the overall Market trend, posting a 10.91% 52 week return. As many Markets were experiencing heavy losses in January, CVBT had a significant increase in their share price and appears to have established a new and higher trading range from a technical standpoint. The new “resistance level” is at the $1.20 share price with upside selling pressure coming in around the $1.40 range. If CVBT can trade through this range and close higher, it could be seen as a bullish indicator.
The inspiring yearly return was helped by their breakthrough angiogenesis therapy. This therapy is currently featured in the February 2008 issue of “Reader’s Digest.” The article, titled, “Heart Hope” by Lisa Collier Cool, refers to CVBT’s therapy as a “new lease on life” for patients suffering from severe coronary heart disease who do not have any other viable treatment options. This exposure and the technology behind it are a huge positive for the company.
To view a complete profile on CardioVascular Bio Therapeutics, Inc., visit our financial courier at StockUpTicks.com
Boston Scientific Corp.(NYSE: BSX) Boston Scientific Corporation engages in the development, manufacture, and marketing of medical devices that are used in interventional medical specialties worldwide. The company offers its products in three groups: Cardiovascular, Endosurgery, and Neuromodulation.
This past Tuesday, BSX announced that a U.S. District Court jury in Marshall, Texas has reached a verdict in a patent infringement suit brought against the Company by Dr. Bruce Saffran. No injunction was requested, but the jury awarded damages of $431 million.
With a 26% drop over the past year and a negative net income, volatility could continue for the foreseeable future.
Medtronic Inc. (NYSE: MDT) Medtronic, Inc. is engaged in medical technology, alleviating pain, restoring health, and extending life for people around the world. The company was founded in 1949 and is headquartered in Minneapolis, Minnesota.
MDT is consistently one of the most efficient companies in the Medical Equipment & Supplies industry. With a Return on Assets, Revenues per Employee, and Return on Equity of 14.50%, $363,981.00, and 26.32% respectively, they are among the most effective companies in the industry.
Based on its gross margin, operating margin, and net margin, MDT converts a larger percentage of its revenues to profits than most other companies in the Medical Equipment & Supplies industry. Furthermore, the company is profitable with an operating margin of 28.11%.
Cardium Therapeutics Inc. (AMEX: CXM) Cardium Therapeutics, Inc. (Cardium) is a medical technology company primarily focused on the development and commercialization of biologic therapeutics and medical devices for cardiovascular and ischemic disease. The company was founded in 2003 and is based in San Diego, California.
Although earnings at CXM grew over the last twelve months, they failed to keep pace with the growth in revenues. This may mean that the company is becoming less efficient at using its resources. However, this result was better than that of the average company in the Biotechnology & Drugs industry.
While CXM has little or no debt and, thus, little financial risk, it has a cost structure that eats up a percentage of its revenues that is among the highest of any company in the Biotechnology & Drugs industry. To make matters worse, the company is losing money on an operating basis.
Genentech Inc. (NYSE: DNA) is a biotechnology company that discovers, develops, manufactures and commercializes biotherapeutics for unmet medical needs. The Company manufactures and commercializes multiple biotechnology products, and receives royalties from companies that are licensed to market products based on its technology.
Yesterday, Genentech traded higher by .93 cents per share to $70.85 after releasing positive data from the AVADO study, with Avastin measuring progression-free survival (PFS) in patients with metastatic breast cancer. The company said the Food and Drug Administration is schedule to rule Feb. 23 on an approval to use Avastin in combination with chemotherapy to treat breast cancer.
Earnings growth at DNA outpaced revenue growth over the trailing twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this result was better than that of the average company in the Biotechnology & Drugs industry.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted twenty thousand restricted shares of CVBT common stock by CardioVascular BioTherapeutics Inc. for preparation and distribution of this report and other advertising services over a ninety day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Sunday, February 10, 2008
SectorWatch.biz Issues MarketStats on SPXP, ABX, NEM, GG, and AEM
Today's MarketStats on gold companies includes: Spirit Exploration, Inc. (Pink Sheets:SPXP), Barrick Gold Corporation (NYSE: ABX), Newmont Mining Corporation (NYSE: NEM), Gold Corp Inc.(NYSE: GG) and Agnico-Eagle Mines Ltd. (NYSE: AEM).
Spirit Explorations Inc. (Pink Sheets: SPXP) engages in the exploration and development of mineral resource properties and mines in Ecuador. The company focuses its activities on gold and base metal exploration camps in Southern Ecuador. It has interest in gold camps near Aurelian's Del Norte Discovery, Nambija, and Portovelo. Spirit Exploration also owns three mines and a flotation processing plant in the Muluncay Mining District near Portovelo in Southern Ecuador. The company is based in Victoria, Canada
At close of business on Friday the 8th, Spirit was up three and three quarter’s percent to $2.21 per share on strong volume.
Spirit Explorations announced that it has retained the Equicom Group ("Equicom") to provide the Company with strategic investor relations and financial communications services. Additionally, the company recently filed audited financials, which is seen as a large step towards financial transparency and obtaining a listing on a more senior exchange.
To view a complete profile on Spirit Exploration Inc., visit our financial courier stockupticks.com
Barrick Gold Corp. (NYSE: ABX) Barrick engages in the acquisition, exploration and development of gold properties. Its products include gold, copper, silver, and zinc. The company was founded in 1983 and is headquartered in Toronto, Canada.
ABX is consistently one of the most efficient companies in the Gold & Silver industry. With a Return on Assets, Revenues Per Employee, and Return on Equity of 3.43%, $285,594.10, and 4.90% respectively, they are among the most effective companies in the industry. It generates revenue and cash flow from the production and sale of gold and copper. The Company sells its production in the world market through three primary distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and gold bullion and copper cathode is sold under gold and copper cathode sales contracts between the Company and various third parties.
Barrick has one of the lowest P/E ratio and Beta in the gold industry, which is always a positive from a fundamental standpoint. Their trading volume has seen a recent spike of over 10% their normal 3 month average, a positive sign from a technical analysis.
Newmont Mining (NYSE: NEM) Newmont Mining Corporation engages in the exploration, acquisition, and production of gold properties in the United States, Australia, Peru, Indonesia, Ghana, Canada, Bolivia, New Zealand, and Mexico.
Newmont is very efficient in comparison to its peers. In particular the company is among the best at generating revenues from employees and at managing their owner's equity, and is above average at managing their resources compared to other companies in the Gold & Silver industry.
NEM has one of the largest and most diverse land reserves in its industry which is seen as a bullish sign for new discoveries, given gold’s current share price. This could be why the technical pattern that is trending toward the upper end of the company’s 52 week high.
Goldcorp Inc. (NYSE: GG) Goldcorp, Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in the Americas and Australia. It focuses on gold, silver, and copper. It was founded in 1954 and is headquartered in Vancouver, Canada.
Goldcorp is one of the world's lowest-cost and fastest growing multi-million ounce gold producers. Its gold production remains 100% unhedged and the stock pays a steady dividend. This is a factor in the company’s stability, evidenced by a Beta of.89, showing less volatility than the industry.
With a 5% increase on Friday, GG appears to have established a short term head and shoulders pattern, trading in the $34 to $38 range. I would be cautious if trading out of this range, especially on the downside as Goldcorp has one on the industries highest price to earnings ratio.
Agnico-Eagle Mines Ltd. (NYSE: AEM) Agnico-Eagle is a long established Canadian gold producer with operations located in Quebec and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's largest gold deposit in terms of reserves.
Although the company has a smaller market cap than many of its competitors, it has paid a cash dividend for 26 consecutive years. Given the exceptional run-up in its stock price (57% one year return) and the recent drop in quarterly revenue growth, the stock may be trading more on the underlying asset than on solid fundamentals.
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been paid fifteen thousand dollars by Gross Marketing LLC on behalf of Spirit Exploration, Inc. for preparation and distribution of this report and other services over a thirty-day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Spirit Explorations Inc. (Pink Sheets: SPXP) engages in the exploration and development of mineral resource properties and mines in Ecuador. The company focuses its activities on gold and base metal exploration camps in Southern Ecuador. It has interest in gold camps near Aurelian's Del Norte Discovery, Nambija, and Portovelo. Spirit Exploration also owns three mines and a flotation processing plant in the Muluncay Mining District near Portovelo in Southern Ecuador. The company is based in Victoria, Canada
At close of business on Friday the 8th, Spirit was up three and three quarter’s percent to $2.21 per share on strong volume.
Spirit Explorations announced that it has retained the Equicom Group ("Equicom") to provide the Company with strategic investor relations and financial communications services. Additionally, the company recently filed audited financials, which is seen as a large step towards financial transparency and obtaining a listing on a more senior exchange.
To view a complete profile on Spirit Exploration Inc., visit our financial courier stockupticks.com
Barrick Gold Corp. (NYSE: ABX) Barrick engages in the acquisition, exploration and development of gold properties. Its products include gold, copper, silver, and zinc. The company was founded in 1983 and is headquartered in Toronto, Canada.
ABX is consistently one of the most efficient companies in the Gold & Silver industry. With a Return on Assets, Revenues Per Employee, and Return on Equity of 3.43%, $285,594.10, and 4.90% respectively, they are among the most effective companies in the industry. It generates revenue and cash flow from the production and sale of gold and copper. The Company sells its production in the world market through three primary distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and gold bullion and copper cathode is sold under gold and copper cathode sales contracts between the Company and various third parties.
Barrick has one of the lowest P/E ratio and Beta in the gold industry, which is always a positive from a fundamental standpoint. Their trading volume has seen a recent spike of over 10% their normal 3 month average, a positive sign from a technical analysis.
Newmont Mining (NYSE: NEM) Newmont Mining Corporation engages in the exploration, acquisition, and production of gold properties in the United States, Australia, Peru, Indonesia, Ghana, Canada, Bolivia, New Zealand, and Mexico.
Newmont is very efficient in comparison to its peers. In particular the company is among the best at generating revenues from employees and at managing their owner's equity, and is above average at managing their resources compared to other companies in the Gold & Silver industry.
NEM has one of the largest and most diverse land reserves in its industry which is seen as a bullish sign for new discoveries, given gold’s current share price. This could be why the technical pattern that is trending toward the upper end of the company’s 52 week high.
Goldcorp Inc. (NYSE: GG) Goldcorp, Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in the Americas and Australia. It focuses on gold, silver, and copper. It was founded in 1954 and is headquartered in Vancouver, Canada.
Goldcorp is one of the world's lowest-cost and fastest growing multi-million ounce gold producers. Its gold production remains 100% unhedged and the stock pays a steady dividend. This is a factor in the company’s stability, evidenced by a Beta of.89, showing less volatility than the industry.
With a 5% increase on Friday, GG appears to have established a short term head and shoulders pattern, trading in the $34 to $38 range. I would be cautious if trading out of this range, especially on the downside as Goldcorp has one on the industries highest price to earnings ratio.
Agnico-Eagle Mines Ltd. (NYSE: AEM) Agnico-Eagle is a long established Canadian gold producer with operations located in Quebec and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's largest gold deposit in terms of reserves.
Although the company has a smaller market cap than many of its competitors, it has paid a cash dividend for 26 consecutive years. Given the exceptional run-up in its stock price (57% one year return) and the recent drop in quarterly revenue growth, the stock may be trading more on the underlying asset than on solid fundamentals.
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been paid fifteen thousand dollars by Gross Marketing LLC on behalf of Spirit Exploration, Inc. for preparation and distribution of this report and other services over a thirty-day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Tuesday, February 05, 2008
SectorWatch.biz Issues MarketStats on MTTG, GVA, EMR, FWLT, and FLR
Today's MarketStats on infrastructure and heavy construction companies include: Material Technologies, Inc. (OTCBB: MTTG), Granite Construction Incorporated (NYSE: GVA), Emerson Electronics (NYSE: EMR), Foster Wheeler Ltd. (Nasdaq: FWLT) and Fluor Corporation (NYSE: FLR).
Material Technologies, Inc. “MATECH” (OTCBB: MTTG) is an engineering, research and development company specializing in technologies to measure microscopic fractures and flaws in metal structures and monitor metal fatigue in real time. The company's leading edge metal fatigue detection, measurement and monitoring solutions can accurately test the integrity of metal structures and equipment including bridges, railroads, airplanes, ships, cranes, power plants, mining equipment, piping systems and heavy iron.
MATECH owns the only nondestructive testing technology able to find growing cracks as minute as 0.01 inches. MATECH has exclusive rights to seven patents along with $8.3 million in already completed contracts from the U.S. Government for research, testing and validation of its innovative solutions.
Material Technologies, Inc. (MTTG) closed yesterday at 0.37, a negative change of 0.09 or decline of 9.83% from the previous close of 0.86.The most appropriate valuation measure for MTTG is the Price to Sales ratio. The Price to Book ratio is excluded since it most likely underestimates the company's book value by overlooking hidden assets such as intellectual property, while the PE and PEG ratios are not meaningful due to lack of profitability. Therefore MTTG seems highly valued with a Price/Sales ratio of 204.6162, one of the highest in its industry.
To view a complete profile on Material Technologies, Inc., visit our financial courier StockUpTicks.com .
Emerson (NYSE: EMR) based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2007 were $22.6 billion. Emerson is engaged in designing and supplying product technology and delivering engineering services in a range of industrial, commercial and consumer markets globally.
EMR seems highly valued with a PEG value of 1.6176, one of the highest in the Conglomerates industry, however its PE ratio is only 19.6, slightly above the industry median of 15.58. Annual EPS for Emerson increased 20.36% from 2006 to 2007. EPS is expected to increase 12.78% from 2007 to 2008. Over a 200 day moving average, ERM, on a Relative Strength Analysis, has significantly out performed the S&P 500, which could be seen as a bullish indicator in the current environment.
Foster Wheeler Ltd. (Nasdaq: FWLT) is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA.
FWLT seems a bit over bought with a PEG value of 1.8213, above the Construction Services industry median PEG of 1.53. Also its PE ratio of 27.3 is well above the industry median of 14.46. With a BETA of almost three times the market, Foster Wheeler could be poised for some additional volatility moving forward, especially given the fact that they are above their 200 day moving average, sitting on a 150% one-year return.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006.
Fluor Corporation recently announced a 25% increase in its quarterly dividend to 25 cents ($0.25) per share on the company’s common stock, making it more attractive to shareholders looking for solid infrastructure plays.
FLR may be a bit over bought with a PEG value of 2.4185, above the Construction Services industry median PEG of 1.53. This is supported by a PE ratio of 32 – which is also well above the industry median of 14.46. Until the recent release of their 8-K (which I haven’t read yet, and the move could be attributed to the ISM number), Flour had seemed to find a level of resistance at $120 a share. Upon the release, they experienced a 6% drop in price. Given a 6-month technical pattern, the next level of resistance appears to be at $115. If it can hold, that will be seen as a positive for the company. If it closes below that level, additional pressure could test the $100 range.
Granite Construction Incorporated (NYSE: GVA) is a member of the S&P 400 Midcap Index, the Domini 400 Social Index and the Russell 2000. Granite Construction Company, a wholly owned subsidiary, is one of the nation's largest diversified heavy civil contractors and construction materials producers. Granite Construction Company serves public and private sector clients through its offices and subsidiaries nationwide.
GVA seems fairly valued with a PEG of 1.3155, which is in line with the Construction Services industry median of 1.53. GVA’s PE ratio stands at 16.7, slightly above the industry median of 14.46. Word of caution though, the short percentage in this company is significantly higher than others in its industry, sitting at 6.5% of the outstanding shares. However, if the company were to see a spike in price, it could benefit from short sellers covering their positions, creating the phenomenon known as a “short squeeze.”
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted two hundred forty thousand restricted shares of MTTG common stock by Material Technologies Inc. for preparation and distribution of this report and other services over a ninety-day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Material Technologies, Inc. “MATECH” (OTCBB: MTTG) is an engineering, research and development company specializing in technologies to measure microscopic fractures and flaws in metal structures and monitor metal fatigue in real time. The company's leading edge metal fatigue detection, measurement and monitoring solutions can accurately test the integrity of metal structures and equipment including bridges, railroads, airplanes, ships, cranes, power plants, mining equipment, piping systems and heavy iron.
MATECH owns the only nondestructive testing technology able to find growing cracks as minute as 0.01 inches. MATECH has exclusive rights to seven patents along with $8.3 million in already completed contracts from the U.S. Government for research, testing and validation of its innovative solutions.
Material Technologies, Inc. (MTTG) closed yesterday at 0.37, a negative change of 0.09 or decline of 9.83% from the previous close of 0.86.The most appropriate valuation measure for MTTG is the Price to Sales ratio. The Price to Book ratio is excluded since it most likely underestimates the company's book value by overlooking hidden assets such as intellectual property, while the PE and PEG ratios are not meaningful due to lack of profitability. Therefore MTTG seems highly valued with a Price/Sales ratio of 204.6162, one of the highest in its industry.
To view a complete profile on Material Technologies, Inc., visit our financial courier StockUpTicks.com .
Emerson (NYSE: EMR) based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2007 were $22.6 billion. Emerson is engaged in designing and supplying product technology and delivering engineering services in a range of industrial, commercial and consumer markets globally.
EMR seems highly valued with a PEG value of 1.6176, one of the highest in the Conglomerates industry, however its PE ratio is only 19.6, slightly above the industry median of 15.58. Annual EPS for Emerson increased 20.36% from 2006 to 2007. EPS is expected to increase 12.78% from 2007 to 2008. Over a 200 day moving average, ERM, on a Relative Strength Analysis, has significantly out performed the S&P 500, which could be seen as a bullish indicator in the current environment.
Foster Wheeler Ltd. (Nasdaq: FWLT) is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA.
FWLT seems a bit over bought with a PEG value of 1.8213, above the Construction Services industry median PEG of 1.53. Also its PE ratio of 27.3 is well above the industry median of 14.46. With a BETA of almost three times the market, Foster Wheeler could be poised for some additional volatility moving forward, especially given the fact that they are above their 200 day moving average, sitting on a 150% one-year return.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006.
Fluor Corporation recently announced a 25% increase in its quarterly dividend to 25 cents ($0.25) per share on the company’s common stock, making it more attractive to shareholders looking for solid infrastructure plays.
FLR may be a bit over bought with a PEG value of 2.4185, above the Construction Services industry median PEG of 1.53. This is supported by a PE ratio of 32 – which is also well above the industry median of 14.46. Until the recent release of their 8-K (which I haven’t read yet, and the move could be attributed to the ISM number), Flour had seemed to find a level of resistance at $120 a share. Upon the release, they experienced a 6% drop in price. Given a 6-month technical pattern, the next level of resistance appears to be at $115. If it can hold, that will be seen as a positive for the company. If it closes below that level, additional pressure could test the $100 range.
Granite Construction Incorporated (NYSE: GVA) is a member of the S&P 400 Midcap Index, the Domini 400 Social Index and the Russell 2000. Granite Construction Company, a wholly owned subsidiary, is one of the nation's largest diversified heavy civil contractors and construction materials producers. Granite Construction Company serves public and private sector clients through its offices and subsidiaries nationwide.
GVA seems fairly valued with a PEG of 1.3155, which is in line with the Construction Services industry median of 1.53. GVA’s PE ratio stands at 16.7, slightly above the industry median of 14.46. Word of caution though, the short percentage in this company is significantly higher than others in its industry, sitting at 6.5% of the outstanding shares. However, if the company were to see a spike in price, it could benefit from short sellers covering their positions, creating the phenomenon known as a “short squeeze.”
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.
This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted two hundred forty thousand restricted shares of MTTG common stock by Material Technologies Inc. for preparation and distribution of this report and other services over a ninety-day period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.
Are We Already in a Recession?
Let’s first define a recession. In order to have an official recession, we must have two consecutive quarters of negative GDP. Gross Domestic Product (GDP) is, in layman terms, all the money spent by individual consumers, business firms and the government.
Thus far, we have the number from the third quarter of 2007 and it showed a positive increase of 3.9%. We will have to wait a couple more weeks before we get the 4th quarter number, and it's estimated to be flat, but will likely be revised a time or two.
Therefore, in order to officially call a recession, we have to wait eight months in order to get two consecutive quarters of GDP measurements. That's a long time to be patient as we watch the market erase all of last year's gains in a matter of weeks.
Let’s step back and take a look at how we got here.
Remember the market boom of the late 90’s and the bust that followed? You see, booms don’t just precede busts, they also cause them. In response to the last bust, the Federal Reserve went on an interest rate cutting campaign that pushed us to 40 year lows. These bargain basement interest rates served as a potent stimulant, which led many to borrow more than they might have at higher rates thus stretching their dollars. Also, with low rates businesses stocked up on labor, machinery, buildings, etc. Consumers bought cars and houses (sometimes 3 or more houses) over the past five years and as a result GPD has soared.
However, just like the boom of the late 90’s, we have gotten ahead of ourselves; greed has given way to common sense. Whether it's a dot com stock or a condo in Miami, prices can’t keep rising forever. Because as prices rise, so too does inflation. And as inflation becomes a concern, we start to doubt our prosperous future. As the future darkens, businesses question the credit worthiness of consumers. As consumers feel the pressure to repay, they tighten up their spending. As spending tightens, we see GDP go down…. Which is where we now find ourselves
Back to the present situation.....
Instead of focusing on whether or not the market is in an “official” recession we should determine if the Market is acting like we are in a recession. Markets are forward looking vehicles, typically predicting events six to nine months in the future. The Stock Market started its significant retreat from an all time high in October of last year, falling about 14% to its current level. Based on the market's past predictability, the recent decline tells me that the 4th quarter GDP number is likely to be flat or positive, but that the first two quarters of 2008 are going to experience negative growth.
When will we know if the markets correct? For that number, we’ll have to wait until August of 2008. Remember the eight month delay?
Here’s the catch. If we actually wait until August to call an official recession, the market should be poised for recovery. In fact, the average return of the S&P 500 for the six months immediately after a recession is 12%. So when (or if) the U.S. economy actually experiences two consecutive quarters of negative GDP growth, I would think that’s a pretty good time to buy.
My original question was, are we in a recession? The answer: probably.
Word of caution though, don't dwell on the dreaded "R" word.
Most recessions last between 6 and 18 months. In fact, of the last nine U.S. recessions, the average length has been 11 months. So in theory, if it takes 8 months to call a recession, then we would be out of it 3 months later. That's no time in the grand scheme of economic things.
If we can learn anything from the markets and their cyclical patterns, it should be this: look to the future. People equate a recession with fear and negativism. However, if we can start to change our thought pattern and become more forward looking, we might just find some incredible bargains. A proverb states, "Watch for large problems, they signal larger opportunities" and famed investor Lord Templeton once uttered, "I always profited most at the time of greatest pessimism."
And the real truth here is that a true recession, once realized is both half-over and always precedes prosperity.
This column is for entertainment purposes only and should not be construed as investment advice. Please view our complete disclaimer here.
The Power of Wind.
“The answer my friend, is blowin’ in the wind, the answer is blowin’ in the wind”
The words from Bob Dylan’s classic probably ring truer today than when he first sang them. With environmental groups pressing the greenhouse gas and global warming issues and oil at near all time highs, we are desperately looking for clean, renewable and cheap energy. Wind fits the bill on all three counts.
Although wind currently accounts for just over 1% of world-wide electric use, some countries are ahead of the curve and have made a significant impact on their natural resources. Denmark gets a fifth of its electricity from wind. Spain is next on the list with 9% and Germany follows up with 7%.
So why have we, a country that was referred to as “the Saudi Arabia of wind”, by the National Renewable Energy Laboratory (NREL), fallen behind in the wind production race? As a country that was founded by entrepreneurs and full of opportunists, it’s hard to imagine how we have overlooked the amazing potential available here. In fact, the Midwest region, including Nebraska, could potentially generate 5.4 trillion kilowatt-hours of electricity from wind turbines. That's nearly twice the electricity used in the United States every year. All states in the region, with the exception of Missouri, have more than enough wind energy available to meet all their electrical needs. The top state in the region, Nebraska, could even become a net exporter of electricity since it has the potential of producing nearly three and a half times the power needed by the entire seven state territory, according to the NREL.
The last major push for wind power was attempted in the 1980’s when tax incentives were being handed out by the millions and, not coincidentally, oil was at record highs. But unfortunately, the original turbines have become largely obsolete, and once oil came down, we abandoned the cause.
George Santayana once said, "Those who do not remember the past are condemned to repeat it."
We are at a critical point in our countries history and again subsidies and incentives are being doled out to encourage the development and production of clean fuel sources. But this isn’t the 80’s anymore, there are many differences that I believe will allow us to not only stay the course with wind power, but also gain a certain level of energy independence.
Allow me to make my point:
1) Oil’s price has largely been based on supply and demand. Even if you don’t believe that the world’s peak production level has been reached, there is no arguing when it comes to the demand increase. With China putting an estimated 20,000 new cars on the road everyday, demand is only going to intensify.
2) Wind was considered a “variable” resource due to its unpredictability. Like other electricity sources, wind energy must be "scheduled". Wind power forecasting methods are used, but predictability of wind plant output remains low. But with the introduction (and efficiency) of grid energy storage facilities, wind can now be shaped and stored. The total cost for additional storage can add up to a 25% increase, but that still makes wind affordable and more importantly, reliable.
3) Environmentalists have always been concerned about the impact on the local wildlife. From birds of prey to the silver-haired bat, many were threatened by the massive wind turbines. But now, studies are done before a new wind plant is erected. Flight patterns, migration habits and other relevant data is complied and studied prior to building to help reduce the negative impact. Due to such studies, the numbers of deaths have been significantly reduced. Recent studies in the UK have revealed that, on average, one bird is killed per turbine per year, compared to 10 million per year that are killed by cars alone.
4) EROI (Energy Return on Investment). After all, I’m an investor and everything comes down to the bottom line. Wind energy is equal to the cumulative electricity generated divided by the cumulative primary energy required to build and maintain a turbine. The EROI for wind ranges (depending on such factors as location, actual wind, time in storage, etc...) from 5 to 35, with an average of around 18. This places wind energy in a beneficial position relative to conventional power generation technologies in terms of EROI. Since energy produced is several times energy consumed in construction, there is a net energy gain. As technologies continue to improve, so will the net gain. I’m optimistic that the average will drastically increase as we start to utilize areas such as the Midwest.
5) Potential. The wind power available in the atmosphere is much greater than current world energy consumption. The most comprehensive study to date (Journal of Geophysical Research, 2005) found the potential of wind power on land and near-shore to be 72 TW (terawatt), equivalent to 54,000 MToE (million tons of oil equivalent) per year, or over five times the world's current energy use in all forms!!! This alone should be enough to convince any skeptics.
6) Clean, renewable and now affordable. Wind power consumes no fuel for continuing operation and has no emissions directly related to electricity production. Operation does not produce carbon dioxide, sulfur dioxide, mercury, particulates, or any other type of air pollution, as do fossil fuel power sources. Even with out incentives and subsidies, advances in technology have mad the clean energy resource more affordable than ever.
Have I convinced you yet?
One person that needed no convincing was John Eber, a managing director for JPMorgan Investments in energy, stating "There are far greater opportunities to make good investments in wind at the moment compared with other renewable energies. The market is much better developed."
If we’re going to actually address our energy independence and global warming, now is the time to do it. Never before in our world’s history have the stars aligned so perfectly for alternative energy sources, and I believe wind can lead the way.
As Dylan said, “the answer is blowin’ in the wind”. Now let’s have the fortitude of Winston Churchill, “Lest we forget”.
This column is for entertainment purposes only and should not be construed as investment advice. Please view our complete disclaimer here.
The Other Side of the Immigration Coin.
I always like to go out with a bang…. so for the last Clark Report of the year (I’m taking a vacation), I wanted to address one of the most heated topics weighing on our society, illegal immigration.
At a holiday party this past weekend I found myself speaking with a prominent pediatrician and in the midst of chatting I remarked that she must be busy at this time of year, especially with the colder than usual weather. Surprisingly, she wasn’t. She went on to explain that the preventative care available for children has limited the occurrence of illnesses dramatically. The only increase that the hospital is seeing is coming in the form of illegal immigrants that don’t have the means or know how to implore these preventative measures.
It’s an undeniable fact that many government programs are being crushed under the weight of illegal immigration – most notably and seriously, health care.
Illegal immigrants don’t qualify for government health programs and businesses that hire them tend not to offer health coverage of any kind. As a result, when illegal workers become sick or injured they inevitably take the only route available to them: they head to the nearest emergency room.
Hospitals are required by federal law to provide emergency care regardless of patients’ visa status or ability to pay. Thus, some areas of the country have experienced a tremendous drain in health care resources as illegal immigrant populations have risen. Prisons and schools also face major hurdles in accommodating the expanding illegal immigrant population.
But every coin indeed has two sides...
Other governmental programs actually benefit from the presence of illegal immigrants, particularly Social Security and Medicare. Both programs, intended to benefit the elderly, receive billions in tax revenue from illegal immigrants. Unlike normal taxpayers, however, illegal immigrants will never be able to recollect their benefits later on down the line, thus providing a windfall.
Illegal immigrants also have a huge impact on wages and industrial production.
While it is true that illegal immigrants drive down wages, the situation becomes less cut-and-dry when we stop to consider that they also drive down the cost of almost all goods and services for all consumers. Thus, by working for such low wages, illegal workers actually increase the spending power of Americans. So even though Americans’ paychecks might be a bit lighter because illegal immigrants are willing to work for so little, their dollars are also stretching further.
Perhaps the most significant impact that illegal immigrants have is in the industries where they work.
According to the U.S. Department of Labor, almost half of America’s farm workers are in this country illegally, and Agriculture isn’t the only industry hiring massive amounts of illegal workers. Trailing closely behind are restaurants, construction, food processing, landscaping and the hospitality industry. In other words, many, many American businesses count on the sturdy work ethic and strong backs of illegal workers to stay afloat.
Financial analysts have even begun warning clients that if restrictive immigration legislation is passed at the federal level, stock portfolios heavy on these industries could suffer considerably. I can attest to that in my personal practice.
Another rarely discussed consideration is the fact that illegal immigrants often fill jobs that would otherwise be outsourced, further widening the already ominous trade deficit.
Illegal immigrants do take jobs from Americans on occasion, but they also contribute significantly to a number of important U.S. industries in a way that American workers simply can’t. To assume that business as usual can continue in America without them is myopic.
I once heard a guest on a nightly cable show utter a sage remark in sarcasm. He said that at the U.S./Mexican border there are two signs:
"Help Wanted" and "Keep Out!"
Illegal immigration is a crucial issue that needs to be addressed to ensure our national and economic security, but let’s not forget that this nation was founded by immigrants. For the most part, they are just searching for what our forefathers were; a better life. It’s my hope that we can work together to find a solution that will allow this country to continue to be a land that other people dream of living in.
Happy Holidays and Feliz Navidad.
This column is for entertainment purposes only and should not be construed as investment advice. Please view our complete disclaimer here.
The Real Inflation Worry
Ask most economists about inflation and they’ll tell you that it’s low or benign. If you were to ask the average consumer however, you might get a very different answer.
The recent 25 basis point cut by the Federal Reserve made one thing clear to me; they are more interested in staving off a recession than reining in inflation. The FED’s action could ultimately be ushering in a new era of inflation which could potentially mean trouble for your retirement savings.
The typical recession (excluding the Great Depression) lasts roughly 18 months, but the effects of high inflation can linger much longer. The last inflationary cycle lasted almost two decades, from the mid 1960’s to the early 80’s.
Short term market swings can keep you up at nights, but the loss of purchasing power can cause you to have a longer working life. When you save for retirement, you’re saving for a lifetime supply of shelter, food, vacations, etc. Over time, the price of these goods will head in one direction; up. The risk is that the value of your investments you are now putting away may not increase at the same pace. The current inflation rate is 2.8%, meaning that the costs of goods are increasing on average by that amount.
The dilemma lies within the definition of “goods”. The inflation indicator we use to track this statistic is called the Consumer Price Index or CPI for short. The trouble with this measure is that the CPI doesn’t include two crucial items, food and energy. Aside from housing costs, gas and groceries typically account for the largest percentage of household expenditures. Additionally, many would argue that the true cost of education, medical expenses and retirement costs are grossly understated in the CPI.
With oil at record high and the peak level in question (see previous blog) I feel that if it were added in, it would push the true inflation rate significantly higher. Tack on food and we arrive at a real rate closer to 4.2%, a whopping fifty percent increase from the “core” rate.
The fact that the housing market continues to weaken while inflation appears to be picking up a head of steam should encourage no one.
Now, I’m not saying that the recent quarter point cut will turn us into an inflationary riddled country like Argentina, but it would be wise to start taking some prudent actions in order mitigate the impact of an up tick in inflation. How do you do this? In one word; diversify.
If you take diversification to heart and design a portfolio to hedge against the major economic risks, you will likely fare better relative to portfolios that make heavy bets that this bull market will continue indefinitely. To do this, I would recommend including commodities and non-dollar investments into your portfolio allocation. If you are a long term investor, this allocation should also be over-weighted in stocks, both globally and domestically.
Some people may associate investing in stocks with high-risk wagering. But, over time, a diversified portfolio that includes growth options may offer better protection against inflation than a portfolio of fixed and cash investments. Keep in mind that diversification does not ensure a profit or protect against a loss, but in the long run it could end up being your best friend.
True, we may indeed be heading for a recession, but like I stated before, the average one lasts a year and a half while the negative effects of inflation can linger for decades to come.
I certainly can't predict the future and neither can anyone else. One thing I do know however, is that inflation now presents more of a threat to your retirement portfolio than it has in a long, long time.
This column is for entertainment purposes only and should not be construed as investment advice. Please view our complete disclaimer here.
Subscribe to:
Posts (Atom)
