piguy314

I'm a 38 yr old, modern day Renaissance Man, Polymath, in ever sense of the words. Self educated genius no doubt. "The Police often questioned me, just because they found me interesting" (The Most Interesting Man in the World...drink Dos Equis beer...lol) I come from the last generation who knows what it was like before the computer age per se. The Rotary style phone to the iPhone I like to say. Don't be shocked by this below.......because it's only HALF of it! All true I assure you. Days of telling lies to myself and others are done. Masters Degree from the School of Hard Knocks. Double Doctorate PhD from Google University (like most will have in future). Jack of all trades. Jack Russel loving dog owner of 8yrs. Master of them all. 38 yr old heterosexual. Master electrician and stock trader now, wanna be fund manager, a never be nothing, political and economics junkie, former master safe cracker thief, liar, professional slot machine cheat, before tech advancement made me obsolete! A bad father, bad brother, bad son, and much more. Have been baker, cook, barber, teacher, student, ultra submissive lovers master, semi pro poker player. I'm a novice mathematician, mechanical genius ALL most would say. Sun worshiper, surfer, convicted felon at age 18. Five year prison stay from 18 until 24yrs old. Hence school of Hard Knocks Degrees. Amateur magician, Rubik's Cube solver, social algorithms developer, exponential growth being humanity's most powerful force. My mom was a closet drinker for much of my youth and worked night and slept all day. I am Drake Equation believer, a Luddite I think, student of great societal cyclicality in humanity. I've been shot, I've been stabbed, I've been loved more than life to some, and abandon by the same. Raised Catholic, now of the agnostic mindset. Frankly I dont care if God Almighty exist, for we have bigger problems as a species to solve. I'm speed reader semi cursed with photographic memory, say cursed for some memories are not good. Great pool player, better marksman, Have hunted and killed the beast. A believer information to the masses is more powerful than oil and gold put together. Occam's Razor believer, Rube Goldberg simplifier, Huge student of propaganda and all it's techniques, I wanna go to outer space someday before I die. I dont fear death. I fear not Livin'
Joined Oct 26, 2011
10 Blog Posts

piguy314

Joined Oct 26, 2011
10 Blog Posts

RigNet Inc, $RNET and Iridium $IRDM…sittin’ in a tree…K-I-S-S-I-N-Gee!

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1,017 views

Rough draft…will add more as I compile trade thesis….Sunday February 26, 2012

How come these companies are not together yet,  is just beyond me! RigNet makes it possible for most all the Oil and Nat Gas wells in the WORLD….both land and ocean RIG platform to be remotely monitored, operated if need be, and interconnected with Video, Voice, and Data.  All done via satellite remote control technology/peripherals. This company could be categorized as an ‘oil service’…. and maybe even bought as that one day. That is only enhanced with the advancements and implementations of the satellite broadband delivery services of Iridium. Satellite transmission of vital broadband data, voice, and video…..to ANYWHERE on the planet Earth.  Iridium has 61 birds that we know of….after all they are a quasi govt entity. So they probably have redundant secret ones as back up to back up. This company is is pretty spectacular really. I also think RigNet is about to drop ViaSat Inc. (VSAT) usage and go with Iridium. Please understand this is sheer speculation on my part.

I was wondering > Is the perceived limited bandwidth spectrum beatable some how via satellite transmission technologies and the peripherals on the other end of the satellite transponders that catch it? maybe in the attenuation of the signal or the Band-Pass Filters or with data compression or multiplexing. I will have to check that out some more.

Surly for the delivery of Broadband is beatable in a sense via satellite. Using satellite delivery instead of land tower or land-line wire and cable or fiber-optic ensures redundancy and virtually uninterrupted service with no boundaries by land physical obstacles. Be it a countries boarders or government agenda or condition of the planet. Earth could be on fire or underwater or in ruble…BUT you will still get Fox News and Facebook status updates….telling you it is on fire….lol)

I was also wondering > WHEN is Google, Apple,  GE, Verizon, AT&T,  and or  Microsoft going to buy Iridium Communications (IRDM)? Is that not a no-brainer for any of them? Satellite broadband…voice, video, and data! Iridium has 61 satellite global grid.  And the ‘satellite phone’  GROWING hand held market. Also the very lucrative and repeating subscription model revenue base of services for GPS maritime (shipping) market. Many countries of the world are passing regulations mandating the purchase of much of Iridium’s products and services worldwide. to counter pirating and enhance human safety at sea and shipping route ultra efficiency and profits.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8233851-822-127676&type=sect&dcn=0000950123-11-097142

RigNet, Inc. (RNET) provides remote communication services for the oil and gas industry through a controlled and managed Internet Protocol/Multiprotocol Label Switching (IP/MPLS) global network, enabling drilling contractors, oil companies and oilfield service companies to communicate more effectively. The Company provides its customers with voice, fax, video and data services in real-time between remote sites and home offices throughout the world, while the Company manages and operates the infrastructure from its land-based Network Operations Center.

The Company’s corporate offices are located in Houston, Texas. The Company serves the owners and operators of offshore drilling rigs and production facilities, land rigs, remote offices and supply bases in approximately 30 countries including the United States, Brazil, Norway, Great Britain, Nigeria, Qatar, Saudi Arabia, Singapore and Australia.
RigNet, Inc. stockholders’ equity

Preferred stock — 10,000,000 shares authorized; zero and zero shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively
 	  	 —	  	  	  	 —
Common stock — 190,000,000 shares authorized; 15,442,960 and 14,760,687 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively

 

Chart forRigNet, Inc. (RNET)

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Some Wiki notes:

In electrical engineering and telecommunications, attenuation affects the propagation of waves and signals in electrical circuits, in optical fibers, as well as in air (radio waves).

A communications satellite‘s transponder, is the series of interconnected units which form a communications channel between the receiving and the transmitting antennas.[1]

A transponder is typically composed of:

  • An input band limiting device (a band pass filter)
  • An Input low-noise amplifier (LNA), designed to amplify the (normally very weak, because of the large distances involved) signals received from the earth station
  • A frequency translator (normally composed of an oscillator and a frequency mixer) used to convert the frequency of the received signal to the frequency required for the transmitted signal
  • An output band pass filter
  • A power amplifier (this can be a traveling-wave tube or a solid state amplifier)

Most communication satellites are radio relay stations in orbit, and carry dozens of transponders, each with a bandwidth of tens of megahertz. Most transponders operate on a “bent pipe” principle, sending back to earth of what goes into the conduit with only amplification and a shift from uplink to downlink frequency. However, some modern satellites use on board processing, where the signal is demodulated, decoded, re-encoded and modulated on board the satellite. This type, called a “regenerative” transponder, has many advantages but it is much more complex.

With data compression and multiplexing, several video (including digital video) and audio channels may travel through a single transponder on a single wideband carrier.

Original analog video only had one channel per transponder, with subcarriers for audio and automatic transmission identification service ATIS. Non-multiplexed radio stations can also travel insingle channel per carrier (SCPC) mode, with multiple carriers (analog or digital) per transponder. This allows each station to transmit directly to the satellite, rather than paying for a whole transponder, or using landlines to send it to an earth station for multiplexing with other stations.

NASA distinguishes between a “transponder” and a “transceiver“, where the latter is simply an independent transmitter and receiver packaged in the same unit, and the former derives the transmit carrier frequency from the received signal. This linkage allows an interrogating ground station to recover the Doppler and thus infer range and speed from a communication signal without allocating power to a separate ranging signal.

An ideal bandpass filter would have a completely flat passband (e.g. with no gain/attenuation throughout) and would completely attenuate all frequencies outside the passband

Digital transmission

There are two main categories of digital communication transmission methods: baseband and passband.

  • In passband transmission, digital modulation methods are employed so that only a limited frequency range is used in some passband filtered channel. Passband transmission is typically utilized in wireless communication and in passband filtered channels such as POTS lines. It also allows for frequency-division multiplexing. The digital bit stream is converted first into an equivalent baseband signal, and then to a RF signal. On the receiver side a demodulator is used to detect the signal and reverse the modulation process. A combined equipment for modulation and demodulation is called a modem.

[edit]Characteristics

In general, there is an inverse relationship between the width of a filter’s passband and the time required for the filter to respond to new inputs. Broad passbands yield faster response[citation needed]. This is a consequence of themathematics of Fourier analysis.

 

Chart forIridium Communications Inc. (IRDM)

Miller Industries, Inc. $MLR Tow-Trucks…we all needed one before…always will!

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1,397 views
Miller Industries, Inc. (MLR)
Last on Feb 24, 2012  >$17.14   dividend 0.48/2.8% yield
They report earnings on March 5, 2011
This is a very handsome little company that has some very powerful catalyst now, and maybe even more to come. In it’s products, services, share structure, valuation, market share, a possible small business Federal Government stimulus subsidy bump maybe someday soon (Tow-Truck owner/operator is good little lucrative small start-up business for a medium skilled person). Miller Ind. (MLR) makes, sells, tow-trucks and most all the necessary goodies one person would need to be in the towing/recovery business. We all seen the shows on Discovery Chanel TV of them glorifying, but yet enlightening us to the very dangerous and exciting job of a tow-truck wrecker operator.
The provision for income taxes for the three months ended September 30, 2011 and 2010 reflects a combined effective U.S. federal, state and foreign tax rate of 38.9% and 39.3%, respectively.
{{{CAN A BROTHER GET A TAX CUT?}}}
Here  below is a note out yesterday
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SUNDAY, FEBRUARY 25, 2012

Obama administration proposes corporate tax cut

The Obama administration has released preliminary details of a proposed overhaul of corporate taxes that would lower the tax rate for companies from the present 35 percent to 28 percent, and down to 25 percent for US manufacturers.
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I see some accelerated earnings growth here and sizable gain (if not conquering ) market share for Miller. Along with some decent and logical visibility in earnings (market catalyst). Not to mention the nice share structure it has, for them to maybe do some M&A growing themselves. I heard a great man once say: “There is only two reasons a company should ever takeover/buy-out another company…. either to grow or kill/lessen the market competition.”  They will have the stock and or the cash to do a deal….easily in fact…and a $25 million unsecured revolving credit facility via First Tennessee Bank National Association. Also right now they are realizing some gains via foreign exchange market crossover rates of weak U.S. Dollar. Reporting earnings in U.S. Dollars that some are made abroad in stronger currencies the last few months.Comprehensive Income

Notes from their last SEC 10-Q :

The Company had comprehensive income of $5.0 million and $3.9 million for the three months ended September 30, 2011 and 2010, respectively, and comprehensive income of $19.9 million and $5.2 million for the nine months ended September 30, 2011 and 2010, respectively. Components of the Company’s other comprehensive income consist primarily of foreign currency translation adjustments.

For the Nine Months Ended September 30, approx 15% of net sales derived so far from foreign customers. Marginable best describes that exposure and possible bump to any earnings. But noteworthy

SHAREHOLDERS’ EQUITY:

-Preferred stock, 5,000,000 shares authorized, none issued or outstanding

-Common stock 100,000,000 shares authorized, 11,267,460 and 11,709,275 outstanding at September 30, 2011

and December 31, 2010, respectively


Stock Repurchase Program
In May 2011, the Company’s board of directors authorized the repurchase of up to $20.0 million of shares of its common stock. Through September 30, 2011, a total of 796,500 shares have been repurchased for $13.7 million.
That means there is a good chance they maybe bought approx 370,000 shares the last couple months at about $16-17 per. The new O/S approx 10,900,000 shares now.

  

 

BASIC AND DILUTED INCOME PER SHARE

Basic income per share is computed by dividing income by the weighted average number of common shares outstanding. Diluted income per share is calculated by dividing income by the weighted average number of common and potential dilutive common shares outstanding. Diluted income per share takes into consideration the assumed exercise of outstanding stock options resulting in approximately 349,000 and 481,000 potential dilutive common shares for the three months ended September 30, 2011 and 2010, respectively, and 419,000 and 490,000 for the nine months ended September 30, 2011 and 2010, respectively. For the three and nine months ended September 30, 2011 and 2010, none of the outstanding stock options would have been anti-dilutive.   

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In a round-a-bout way Miller’s products and portion of their revenues stem from statutory requirments in their industrty and our everyday lives. Statutory requirements being secret code name for > FUCKIN’ YA!……also for a Political Economy! The passage of legislation (LAWS) by a Government in a timely and covert manner, as to be sold as in the public’s best interest and safety of and thus is why you must pay for them also. Some governments do this to stimulate or alter forecasted down turns in economic cycles (planned market and technological obsolescence and it’s market and economy ramifications). To perpetuate, create a workforce who consumes and pays it’s TAXES! Them LAWS in most cases do generate private profits to shareholders in their stocks. In the form of dividend payments or capital appreciation of the asset from all the FORCED insurance premiums you have mailed them over the years. (TRILLIONS) You don’t think Warren Buffett owns Gieco Insurance for just that funny talking lizard….do ya?) The auto insurance industry and I feel the Surety Bonding business, are two of the poster children for my snide assimilation to Marxism, hence the Political Economy. So back to Miller having a thriving and growing market. When you don’t have Warren Buffett…I mean active auto insurance…lol, and get cuaght driving…your car gets TOWED away, or you wreck your car in accident, and have insurance, who pays for the TOW TRUCK SERVICES in the claim in most cases in the end. Police Dept’s in city’s in across America and around the world have towing vehicles, if not, they sub out to a third party contractor who needs to purchase truck from (MLR) likely. Also with regards to the stringant regulations of the specifications on the designated ‘towing and recovery’ equipment by both State and Federal agencies perpetuating, if not at a minimum, enhancing market(s) for them. See this link I found of a City Council meeting in a Utah town.

http://www.rules.utah.gov/publicat/code/r909/r909-019.htm

And some of the ‘regulatory hoops’ the tow-ruck industry must jump.And the fact their products and service thrive and survive on the creation of another statutory requirements orrrrr Govt municipal purchases and small mechanic service centers/garages (a future bull market in itself based up auto industry consumer trend). The world needs tow-trucks! Whether you drive a new green alt-energy car or a Hooptie! Because you are going to park it illegally one day, maybe crash it up while texting, maybe call AAA because you broke down (AAA could be big for (MLR) them if the ever cranked it up, in-house towing and national subsidized fleet purchasing). If I was a sales rep for Miller, I would be at almost every League of Municipality’s Conventions  throughout America. Where the procurement people usually go who work for City’s and County’s in America. I would be selling them on buying a tow-truck(s) and starting their own ‘in-house’ towing and impound departments/programs to enhance City revenues and Dept funding shortfalls that may be occurring in the future from local tax revenue base downturns. Oshkosh Corporation (OSK) in lieu of Defense spending cuts should be looking to broaden their markets…..Miller (MLR) would make a nice little subsidiary asset for Oshkosh. They have  $440 MILLION in CASH!….why not? 


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Miller Industries Inc/TN · 10-Q · For 9/30/11

Filed On 11/8/11 5:01pm ET   ·   SEC File 1-14124   ·   Accession Number 1188112-11-3113

 

Executive Overview
Miller Industries, Inc. is the world’s largest manufacturer of vehicle towing and recovery equipment, with domestic manufacturing subsidiaries in Tennessee and Pennsylvania, and foreign manufacturing subsidiaries in France and the United Kingdom. We offer a broad range of equipment to meet our customers’ design, capacity and cost requirements under our Century®, Vulcan®, Challenger®, Holmes®, Champion®, Chevron™, Eagle®, Titan®, Jige™ and Boniface™ brand names. In this Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the words “Miller Industries,” “the Company,” “we,” “our,” “ours” and “us” refer to Miller Industries, Inc. and its subsidiaries or any of them.
Our management focuses on a variety of key indicators to monitor our overall operating and financial performance. These indicators include measurements of revenue, operating income, gross margin, earnings per share, capital expenditures and cash flow.
We derive revenues primarily from product sales made through our network of domestic and foreign independent distributors. Our revenues are sensitive to a variety of factors including general economic conditions as well as demand for, and price of, our products, our technological competitiveness, our reputation for providing quality products and reliable service, competition within our industry, and the cost of raw materials (including aluminum, steel and petroleum-related products).

My note : If memory serves me…a lot of expected rise in Aluminum did not happen and steal coast are also down and they (MLR) raised prices in anticipation of this to their clients. 
We remain concerned about the continuing effects of these factors on the towing and recovery industry have continued certain steps implemented in 2009 to lower costs in response to these uncertainties. These steps included headcount reductions for certain non-production personnel and reductions in certain administrative expenses. Due to increased demand for our domestic products and higher production of follow-on government orders through prime contracts during 2010 and the first nine months of 2011, production hours at all facilities were restored and reduced work weeks and furloughs were eliminated. We will continue to monitor our overall cost structure to ensure that it remains in line with business conditions.      = People back to work! ……clap clap clap
In addition, we have been and will continue to be affected by changes in the prices that we pay for raw materials, particularly aluminum, steel, petroleum-related products and other raw materials, which represent a substantial part of our total costs of operations. In the past, as we have determined necessary, we have implemented price increases to offset these higher costs. We also developed alternatives to some of the components used in our production process that incorporate these raw materials, and our suppliers have implemented these alternatives in the production of our component parts. We continue to monitor raw material prices and availability in order to more favorably position the Companyin this dynamic market.
During the second half of 2008, we began to secure follow-on governmental orders through prime contractors for which we now expect production to be completed during the fourth quarter of 2011. Through these follow-on orders, along with continued performance in the governmental and international marketplace, we were able to somewhat offset significantly lower demand from our commercial customers which began in the second half of 2008. Although demand from our commercial customers has not recovered to pre-2008 levels, we have seen strengthening demand from these customers during 2010 and 2011. However, the increase in revenues in the first nine months of 2011 is due primarily to the impact of our follow-on government orders.  For the three months ended September 30, 2011, 22.3% of our consolidated sales were made to prime contractors for government-related orders, as compared to 22.3% during the second quarter of 2011, 41.6% during the first quarter of 2011 and 17.6% during the fourth quarter of 2010.  We expect deliveries on our follow-on orders to continue at roughly current levels through the end of this year, but at this time we do not expect to receive additional follow-on government-related orders in the near term. We continue to work to secure additional domestic and foreign governmental orders, but we cannot predict the success or timing of any such efforts.
There were no borrowings under the current credit facility at September 30, 2011.
Commitments
The Company has entered into arrangements with third-party lenders where it has agreed, in the event of default by a customer, to repurchase from the third-party lender Company products repossessed from the customer.  =NICE! 
These arrangements are typically subject to a maximum repurchase amount. The maximum amount of collateral that the Company could be required to purchase was approximately $17.2 million at September 30, 2011, and $13.2 million at December 31, 2010. However, the Company’s risk under these arrangements is mitigated by the value of the products that would be repurchased as part of the transaction. The Company considered the fair value at inception of its liability under these arrangements and concluded that the liability associated with these potential repurchase obligations is not material.
At September 30, 2011, the Company had commitments of approximately $1.3 million for construction and acquisition of property, plant and equipment.
Name of Entity
  
Jurisdiction of Incorporation
     
407664 British Columbia Ltd.
  
British Columbia, Canada
APACO, Inc.
  
Delaware
Boniface Engineering, Ltd.
  
United Kingdom
Century Holdings, Inc.
  
Tennessee
Champion Carrier Corporation
  
Delaware
Chevron, Inc.
  
Pennsylvania
F.G. Russell Truck Equipment Ltd.
  
British Columbia, Canada
Jige International S.A.
  
France
Miller Financial Services Group, Inc.
  
Tennessee
Miller/Greeneville, Inc.
  
Tennessee
Miller Industries Distributing, Inc.
  
Delaware
Miller Industries Europe B.V.
  
Netherlands
Miller Industries International, Inc.
  
Tennessee
Miller Industries Towing Equipment Inc.
  
Delaware
RRIC Acquisition Corp.
  
Delaware
Chart forMiller Industries Inc. (MLR)
Results of Operations–Three Months Ended September 30, 2011 Compared to Three Months Ended September 30, 2010
Net sales for the three months ended September 30, 2011 increased 31.4% to $96.8 million from $73.7 million for the comparable period in 2010. This increase was primarily attributable to increased revenues from a prime contractor for a government-related order discussed above, as well as increased activity from our commercial customers.
Costs of operations for the three months ended September 30, 2011 increased 30.4% to $81.2 million from $62.3 million for the comparable period in 2010, which was attributable to the increase in domestic and governmental sales described above. Overall, costs of operations decreased as a percentage of sales from 84.5% to 83.9%, primarily due to product mix during the quarter consisting of a lower percentage of lower margin chassis sales.
Selling, general, and administrative expenses for the three months ended September 30, 2011 increased to $7.5 million from $6.5 million for the three months ended September 30, 2010. This increase was attributable to higher sales levels during the period, as well as increased sales commissions and incentives and medical costs. As a percentage of sales, selling, general, and administrative expenses decreased to 7.7% for the three months ended September 30, 2011 from 8.8% for the three months ended September 30, 2010 due to the fixed nature of certain of these expenses.
Total interest expense increased to $0.2 from $0.1 million for the three months ended September 30, 2011 as compared to the comparable period in 2010. Increases in interest expense were primarily due to increases in interest on chassis purchases.
Other income and expense relate to foreign currency transaction gains and losses. During the three months ended September 30, 2011, the gain was $9,000 compared to a loss of $37,000 for the prior year period.
The provision for income taxes for the three months ended September 30, 2011 and 2010 reflects a combined effective U.S. federal, state and foreign tax rate of 38.9% and 39.3%, respectively.
Results of Operations–Nine Months Ended September 30, 2011 Compared to Nine Months Ended September 30, 2010
Net sales for the nine months ended September 30, 2011 increased 33.5% to $303.3 million from $227.2 million for the comparable period in 2010. This increase was primarily attributable to increased revenues from a prime contractor for a government-related order discussed above, which order was completed during the first quarter of 2011, as well as an add on order for this prime contractor.  The increase was also partially attributable to increased activity from our commercial customers.
Costs of operations for the nine months ended September 30, 2011 increased 28.6% to $249.4 million from $193.9 million for the comparable period in 2010, which was attributable to the increase in domestic and governmental sales described above. Overall, costs of operations decreased as a percentage of sales from 85.4% to 82.3% primarily due to product mix during the first nine months of 2011 consisting of a lower percentage of lower margin chassis sales.

 

12

 
Selling, general, and administrative expenses for the nine months ended September 30, 2011 increased to $23.3 million from $19.7 million for the nine months ended September 30, 2010. This increase was attributable to higher sales levels during the period, as well as increased sales commissions and incentives and medical costs. As a percentage of sales, selling, general, and administrative expenses decreased to 7.7% for the nine months ended September 30, 2010 from 8.7% for the nine months ended September 30, 2010 due to the fixed nature of certain of these expenses.
Total interest expense increased to $0.5 million for the nine months ended September 30, 2011 from $0.2 million for the comparable prior year period. Increases in interest expense were primarily due to increases in interest on chassis purchases.
Other income and expense relate to foreign currency transaction gains and losses. During the nine months ended September 30,
2011, the gain was $18,000 compared to a loss of $0.1 million for the prior year period.
——————————–
I am long the stock!

Is Buffett building Berkshire to be a quant-fund?

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344 views

Most investors and traders are scratching their heads trying to figure out why Warren Buffet/Berkshire  Hathaway took a 5% plus stake in (IBM). I have never made an investment based upon Buffet nor a trade for that matter. It’s not my style, I am a leader and not a follower!

At first, I personally thought he made this buy to put the ‘Buffett Floor and saftey seal of  approval’ just to keep IBM afloat at these levels for a bit. IBM, a major (the biggest actually 11.74% weight) component of the DOW and Americana tecnology hero for matter….and no other reason but.  He also bought into Intel.

I mean this is a man who has made most, if not all, of his fortune investing in the simple things in life he could understand. If Mr. Buffett would have participated in the massive tech stock market rallies to date, created from the exponential technology advancements he might be worth a over a Trillion Bucks by now. he could have dipped and dive out of markets and product obsolescence along the way, to be worth a trillion by now. But lets also remember he avoided their bubble bust all along as well.

I could not for the life of me imagine why Mr. Buffett would jump on the ‘Big Blue’ bus now at these levels. Was this an inflation hedge on his part? Did he choose the biggest US Dollar dominated asset and it’s weighting relative to the index to play inflation and that is all. I just cant picture Mr Buffet uttering some technical ‘IT’ jargon as to his investment thesis here. Enquirer-ing minds want to know….mainly my own. What’s the ‘Oracles’ angle here?

A friend of mine at Stockpickr.com , Michael Morse wrote this to me:

‎”what contract does IBM have that no one else in the world will ever get? answer that and you’ll figure out why Buffett has taken an interest in it.”~ Mike Morse”

I shot back:

Mike, you think he bought in IBM for it’s Government industry so to speak…. ie  IBM’s Social Security Administration handling >>>> “the biggest accounting operation of all time”? Is that what you are saying?

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Mike has not got back to me yet at the time I am writing this. So now I got that in the back of my brain swimming around. I put that with what I know of some recent acquisitions by Wells Fargo in the financial software arena of late.

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Below is a post I wrote about Mr Buffett not too long ago:

“Is there any wonder why Warren Buffett loves the insurance biz? Statutory requirements mandated by the Govt (Fed, State, Local) to generate revenues and an industry who’s existence was to protect the taxpayer! The surety bond is just that. I was combing through a 10K Annual report of a distiller company and found this excerpt. The insurance industry once created many 9-5 office jobs in this country. But like most jobs nowadays the technology is available to replace the human worker. Actuary risk formulas to calculate premiums is done with info/data never before available and with probability risk done by computers. And you can buy your surety bond right online at your institution in minutes now via some tech.

Let me tell you one of the things I do like about Wells Fargo here though. North Coast Surety Insurance Services and Surety Technologies acquisition April 20, 2009

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And then there is > Algorithmics, Financial Risk Management Software…an IBM company www.algorithmics.com A provider of innovative enterprise-wide financial risk management software that enables financial institutions to proactively manage risk and allocate capital effectively and defensively.

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There has to be some method to his madness here…..valuation of a company that has generations of young kids in their mothers basement nipping at their heels. They better hire or buy out any and all who come along to stay afloat in their current biz and growth model. I thought they really ‘jumped the shark’ when they (IBM) had the super computer Watson on Tv’s Jeopardy game show. That seemed like nothing more than a propaganda campaign with China’s announced super computer capabilities at the time. There is something going on here….I am going to keep digging! Maybe Mr Buffett has evolved to see there that the harnessed collective consciousness of the Internet and the algorithms we produce has lucrative potential.

 

*How Ray Dalio built the world’s richest and strangest hedge fund

 

http://www.newyorker.com/reporting/2011/07/25/110725fa_fact_cassidy

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“Supposedly there’s a hedge fund in London getting started that is going to operate/trade on algorithms comprised of the “harnessed collective consciousness” of your posting on the web, at the various venues you frequent on the web. HOLLY CRAP!!!….you would think this is my fund!….lol It just got $25 million start up capital. They will have my resume’ the first of the year.”

Asked by Steven L. Goff months ago – 14 answers – 904 views

http://stockpickr.com/members/view/answers/74234/

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I add this also “A good read…..and logical point in today’s harnessed collective consciousness interconnected Web world. They invented this tech, made us buy it to make them rich, and now they’re pissed when we start beating them with it…lol WTH Maybe insider trading should be legal The question isssssssss….does algorithmic quant funds that track members stock viewing and trading habits qualify as insider info nowadays? if sold to a third party?” November 23, 2010 at 5:19pm

http://jamesaltucher.com/2010/11/maybe-insider-trading-should-be-legal/

+++++++++++++++++++++++++++++++

“Quant funds and high frequency trading….interesting! No formula, quantitative or not can ever assign true integer/metric to the X or H factor. That being the human emotion factor or lack there of. The herd mentality, panic, exuberation, black swan events, etc. LTCM > Robert C. Merton and Myron S. Scholes Long Term Capital Management, tried that….and ultimately failed……to the tune of needing a NY Fed broker bailout due to the systemic risk they posed to the system at the time. Also have ya ever read the book? > Extraordinary Popular Delusions & the Madness of Crowds ~ Charles Mackay…..ya should if ya haven’t Mr S…..good

Answered by Steven L. Goff months ago

++++++++++++++++++++++++++++++

What Does Quant Fund Mean? A managed investment fund that selects securities or bonds based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure “quant shop” the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use human judgment in addition to a quantitative model

  • Read more: http://www.investopedia.com/terms/q/quantfund.asp#ixzz1djxJVu9Z

Another ‘Cold War’ with Russia….might be in the literal sense this time around!

226 views

If we fought another ‘Cold War’ with Russia, it might be cold in the literal sense this time around.  (I might as easily have used the term “participated” because that is really all we did in the first one.) This new cold war would be waged for the natural resource reserves (OIL mostly) under the Arctic ice that Russia claims to be theirs  It’s surely not ours, though we might have to back Canada militarily if this evolves.

 

In August 2007, a Russian submarine, with a mechanical arm, planted a specially made rust-proof titanium flagpole, complete with Russian flag, in the Arctic seabed at a depth of 13,980 feet. There isn’t as much ice up there these days as you’d think, by the way. There is little left since ice-breaker vessels have been breaking it up for the passage of oil tankers for a while now. Even as far back as Standard Oil, decades ago, companies have been trying relentlessly to clear the Northwest Passage for oil shipping.  All the while, they were warming and changing ocean currents unintentionally. (That is a story for another time, however.)  Don’t get me wrong.  I am not taking you down the radical environmentalist, tree-hugger road here. Personally, I would drill an oil well through a polar bear’s head if it would get me $2 gal gasoline for life. I will biuld them an ice-palace sub-zero zoo somewhere with the money we will save.

 

We have problems coming with Russia. It is festering on a few different fronts. There are Iran issues (see note below) that involve them, missile shield issues, the fact that they have their interjected themselves into the European debt crisis, land disputes that involve the future energy plans of many countries. Putin is about to take the helm again in Russia as its ‘decider’. His reputation does precede him. I am a student of Putin and his life. While I am not an expert on him, I can say I know just about everything about this, except where the bodies are buried. He is brilliant and cunning and has the heart of a lion. I personally live my life by the Latin saying: “nihil timendum est,” which translates as “fear nothing,” but this man eats that for breakfast as a shake. He even once said he would “one day bring the USA to its knees….without even firing a single shot or missile”.  As much as I admire this man and how ‘bad ass’ I think he is in a lot of ways, that he continues to hold power concerns me greatly going forward, as I think it should concern every American.

 

As an investor in US markets however, I am as excited as a child on Christmas Eve night.  If events unfold in the right way, these problems with Russia could be a boon to our economy.

*If the USA is going to impose sanctions on Iran and stop doing business with anyone who does business with Iran. And shut off USA markets to those buying from Iran. Does that mean they are going to STOP selling China goods here in the USA? China is a HUGE petro-chem buyer from IRAN. Unlesssssssssssss China gets a pass. And in that case….this sanction is “selective commerce”…..almost like selective prosecution….yes?

You smell that your? sniff sniff sniff
Smells like a Trade War cooking on the stove. An intentional one at that.

I say get long MADE IN THE USA………the trade to come could knock your socks off! > I mean literally…the ones made in CHINA on your feet right now! (look down at them)

I once wrote a thesis on how I suspect Putin could try to hurt the US’s economic stability (without a shot or missile). He might try to play the role of ‘savior’ to the European Union and the Euro by announcing Russia’s intention to enter the EU and adopt the Euro.  Such a move could save the EU and Euro if a super-crisis develops over there.  Even a mere whisper or implication of Russia’s stepping in would have the desired effect, sending the markets whipsawing and just going crazy. This could potentially send the US Dollar crashing (or at least running around with its head cut off for a bit). Putin can move markets with words and actions like no other.  It could get real crazy, real quick if he starts talking some more about this kind of intervention.

 

Putin is also fortifying and revamping his military and he has plenty of money to do it.  He needs to compensate for loss of revs of recently fallen Middle east nations. Right now Russia is in a position similar to the one the US was in during the Cold War era when we used spending tactics to try to bankrupt them. I am a great student of ‘social cyclicality’ and how great societies switch places in the course of the evolution of the world. It has happened many times before. I find it ironic that we seem to be heading toward socialism while Russia is now living life high on the capitalist hog so to speak. I am a child of the 1980s,  back when it was preached in schools that all Communism and Socialism was the axis of evil, period. That wasn’t very long ago

 

Notes:

Canadian foreign policy and the law of the sea

By Barbara Johnson, Mark W. Zacher

Barbara Johnson, Mark W. Zacher – 1977 – Law – 387 pages

“In 1968 vast quantities of oil and gas were discovered at Prudhoe Bay in Alaska. … the Humble Oil Company, a subsidiary of Standard Oil Company of New … send a large oil tanker, to be specially modified into an ice–breaking vessel to clear the North West Passage for oil shipping from the North Slope.”

========

http://www.cnn.com/2007/WORLD/europe/08/02/arctic.sub.reut/index.html

Russia plants flag on Arctic floor

==============

Putin Pumps Over $9B Into Shipbuilding for Nuclear Submarines

Friday, November 11, 2011

Prime minister of Russia, Vladimir Putin, has announced plans for the country to build five nuclear submarines in a massive $280 billion rubles (US$9.28 billion) shipbuilding and maintenance order for the Russian Navy.

In all, seven contracts were signed by the Defense Ministry and United Shipbuilding at the Sevmash shipyard in Severodvinsk .  Among these contracts were orders for five Yasen and Borei class strategic nuclear submarines.  The agreements will serve as some of the final requirements set by the Defense Ministry in 2011 for the Russia’s military revamp.

Putin, who is seeking to be elected for his third term next year, was quoted by Reuters saying that he is sure the realization of the unprecedented program in terms of both goals and financial resources will enable his nation to carry out a large scale modernization of the Naval fleet.

He added that all of these vessels will be built by Russian companies and that the Russian shipbuilding industry must be prepared for serial production of advanced hardware and weapons that are completely compliant with standards and tasks that the Navy must fulfill.

The Moscow Times said that the submarines are to be built at a Sevmash shipyard atop of an Orthodox monastery.  The precise value of each contract has not been disclosed, however it has been estimated that one Yasen submarine costs around US$1.3 billion.

Since 1993, the Borei and Yasen nuclear submarine programs in Russia have been strangled by delays and controversies with late delivery times, questionable technologies, and a sharp drop in military spending in the ‘90s.

The nuclear submarine contracts are only one installment of the US$653 billion modernization plan to be completed by 2020.

====================

November 12, 2011 3:40 pm

“In his first meeting with foreign journalists and academics since announcing he
would stand again for the Russian presidency next March, Mr Putin on Friday
night dismissed the risk of “catastrophic” inflation as a result of ECB
intervention. But he warned that the combined forces of the IMF and the European
financial stability facility would not be sufficient for a task that could
require “1.5 trillion euros”.

HE IS GETTING READY….this is laid ground work coming now.

Steve Goff says : “listen to the whispers…this way the screams are not so
shocking”

http://www.ft.com/intl/cms/s/a512dc20-0cb6-11e1-a45b-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fa512dc20-0cb6-11e1-a45b-00144feabdc0.html&_i_referer=#axzz1dXKFghb9

=================

Medvedev: Russia may target missile defense sites

APAP – 17 hrs ago

 

Steve Goff Keep pissing Russia off with being where you dont belong USA! Why cant the USA worry more about itself and less about everyone else in the world? They are telling the USA. You set them missile defense sites up, Russia is GOING TO BOMB THEM! It is THAT SIMPLE

November 23, 2011

===========================

Vladimir Putin accuses Clinton of inciting protests in Russia
Putin says Hillary Rodham Clinton's criticism of Russian parliamentary elections emboldened protesters. The incident may further damage already strained US-Russia ties.
He might be looking for some 'payback' and announce intentions for some type of intervention into the EU crisis and send currency markets whipsawing around and the US Dollar doing belly flop! he could back the EUR with his vast natural resources and send it flying.


http://www.latimes.com/news/nationworld/world/la-fg-us-russia-20111209,0,4639349.story
 


Vladimir Putin accuses Clinton of inciting protests in Russia


By Paul Richter and Sergei L. Loiko, Los Angeles Times


December 9, 2011


=======================


Quote of the day > RUSSIA’S unfolding political crisis has descended into farce after President Dmitry Medvedev appeared to take to Twitter to accuse opposition activists of being “stupid sheep getting fucked in the mouth”.


SHEEP…lol lol lol


 


 


 


 











Still not EVERYBODY has washer and dryer in home = Mac-Gray Corp $TUC w/divy












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•InPlay: Mac-Gray Corp announced that its Board unanimously rejected anunsolicited written proposal from KP Capital to acquire TUC for(((( $17.50 in cash per share bid))))) 


THEY REJECTED OFFER!


IT MEANS NOTHING TO THE MARKET. This is no PR stunt either. They  even filed SEC

disclosure documents on it.


 


old post below


“Besides the multi family residential REITs. That have seen great runs up to this

point. I’ve been digging around for plays that will benefit when the foreclosure

moratoriums due end in America, and the rental market really seeing an influx of

seekers. And the landlords are really going to be in the “cat bird seat” to pick

the cream of the crop of them potential tenants, due to that overflow/supply.

And nowadays you can even rent an apartment(especially one operated by a major

corporation property manager firm) w/out passing a credit check. And if you

recently were foreclosed on. You have bad credit and will be passed over for

someone better. If that person (or whole family) has no other family to shack up

with. They’re going to find themselves on the street. Not even to mention the

extreme moral hazard (and contagion of NOT PAYING) it posses, letting theses

moratoriums go on, only prolongs the inevitable and falsely foments housing

numbers/inventory’s. People dont want to see other people living free on a

bail/out or moratorium, while they are getting up to go to work everyday and are

doing what they have to pay the bills. That is becoming a big issue in America! = BIG moral hazard contagion!


Anywayyyyyyy….this company down below

Mac-Gray Corp (TUC)

*From $10 to $16 since July..its been a mover!


I was reading their last 10Q and some things stuck out that really make this

company and it earnings a good proxy/barometer of that rental and multi family

residential market. They go into the commercial real estate lease aspect of

earnings on all them properties below. To stifled small bussiness lending

hurting them. And some other key areas of interest. They also started paying a

div as off this year! This is an interesting story w/ many variables that will

determine the stock story. But I am watching it. I also havent found out if they

paying any or some of overhead at all or some laundromats (water/gas/electric)


*We generate laundry facilities management revenue primarily through long-term

leases with property owners or property management companies granting us the

exclusive right to install and maintain laundry equipment in common area laundry

rooms within their properties, in exchange for a negotiated portion of the

revenue we collect.


Manages approximately 88,000 laundry rooms located in 43 states and the District

of Columbia. Mac-Gray also sells and services commercial laundry equipment to

retail laundromats and other customers through its Product Sales division.


http://www.macgray.com/laundry_services/multi-housing/


http://biz.yahoo.com/e/110314/tuc10-k.html


Asked by Steven L. Goff months ago – 4 answers – 397 views


http://stockpickr.com/members/view/answers/75004/

Stock should be up a couple bucks. Goes to show there is no investors in this

market. The computers reading algorithms cant read PR’s and SEC documents. 2 out

of every three trades today are BOT’s.


 


I wrote this below almost two years ago!

====

On CNBC today during Stop trading….Jim Cramer said something

really quick and hardly audible. He said one of the BIG stories to come is going

to be in the residential REIT’s in near future.


I will add to that by saying > yes…especially the residential multifamily

apartment ones.

Cuase when these foreclosure moratoriums end….the rental market is going to

explode up words. And since there is a ton of folks smarter than myself.

They’re positioning themselves for it now or already have.

Also look at this read I attached Jim.


* Growing numbers of formerly middle class – now newly poor – families drive up

demand at food shelters, rescue mission


“That sudden demand for housing has made southern Ocean County’s rental market

“unbelievably tight,” Giannascoli said. “Landlords can really name their terms.”


http://www.pressofatlanticcity.com/news/press/ocean/article_3c75c738-ea19-11df-9

015-001cc4c03286.html

Asked by π/Steven L Goff 1 month ago – 2 answers – 186 views

http://www.stockpickr.com/members/view/answers/73793/


 











To Talk Titanium…One must bow down and pay homage to Harold Simmons $TIE $KRO $NL $VHI












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Originally writen : Apr 17, 2011 @ 4:25


First off, to even begin to talk Titanium and it’s businesses. One must bow down and pay homage to Harold Simmons. A controversial man over the years in the business and the political affiliations arena of the worlds richest. Him and his family are very generous and philanthropic. But this man did not get to where he is today and not step on some throats (I love it) along the way. His business genius is almost unparalleled in American industry, and American business law. Whose banking expertise helped him develop the acquisition concept known as the “leveraged buyout” (LBO) to acquire various corporations,  “all debt and no equity” philosophy of capital management (ironic considering the debt ratios of his holdings now are very low)  Also genius with regards to how over the years he structured his empire, via their holdings of each other and the Contran Corporation < (The BIG Dog) of them all BTW. For advantageous tax reasons and to KEEP SOME USA JOBS HERE. Simmons conducted a widely publicized but unsuccessful takeover attempt on the Lockheed Corporation , after having gradually acquired almost 20 per cent of its stock. Some say to bust the unions and liquidate the pension fund (Isnt that what Gordon Gekko / Wall Street tried w/ BluStar Airlines?…lol)


Just check out the last SEC disclosure Exhibit 99 filing of this company.


(note: Poor yourself a drink before doing so…you will need it)


SEC 99..poor that drink


Mr.Simmons is 80 yrs old right now. Contran is operated by Mr. Steven L. Watson, who is 60+yrs old. Glenn Simmons, Harrods brother is also well in years.


What Contran Corp owns:


Titanium Metals Corporation (TIE). $18

Kronos Worldwide Inc. (KRO) $57


Valhi, Inc. (VHI) $29


CompX International Inc. (CIX) $14.75

NL Industries Inc. (NL) $14.66

Keystone Consolidated Industries, Inc. (KYCN.OB) $6.36/(KYCN.PK)$7.50


I think two different listens for Keystone is for bankruptcy proceedings here…an not sure just yet.


He, or Contran I should say, also might be getting ready to consolidate everything under one company now and go public with it. Keystone Consolidated Industries, Inc. (KYCN.OB) might be that. Contran just filed purchase stake on them. It’s a thought. And w/ the actions of the past,  anything is plausible here.


Let me tell ya what I THINK he did recently. And this was slick. I am also not sure just yet. But the timeframe seems to be right. I will know when I check these IRS fillings Monday. I say this because a new trust for his grandchildren per some recent SEC fillings have been stoked with stocks of late. Ya see, that’s the edge I look for. It is like being a bookmaker, and know if the quarterback took his girlfriend for an abortion the day before. Or if some point guard owes his cocaine dealer $2500. EVERYTHING is relevant is the gist. And in todays times with the harnessed collective of the web. Some say it causes a very grey area at the least, with regards to what is insider info or not. That is one of the pitfalls before leap upward in the harnesses collective conscience to Internet has brought to our species. The web is a big puzzle of money, ya just have to know where the pieces go and where to look for them pieces.


In this particular case. I wanna know where Mr Simmons thinks his grandchildren best interest and stability lay going forward.


Generation-Skipping Transfer Tax

March 16, 2011

Form 706 Now Available on IRS Website

As of yesterday 3-15-2011, Form 706 is now available on the IRS website.


•Form 706-GS(D):  Generation-Skipping Transfer Tax Return for 2010 Distributions

•Form 706-GS(T):  Generation-Skipping Transfer Tax Return for 2010 Terminations


In 1986, Congress enacted the federal Generation-Skipping Transfer Tax (GST Tax)


Generation-Skipping Transfer Tax Opportunity Expiring on Dec. 31, 2010


The recently enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) made several changes to the estate, gift, and generation-skipping transfer (GST) tax laws. The primary modifications were a retroactive increase in the lifetime exclusion of $5 million for estate and gift tax purposes and a reduction of the tax rate on the excess to 35 percent.


Less publicized were changes to the GST tax, which was also reinstated retroactively to Jan. 1, 2010, with a $5 million exemption. However, transfers made during 2010 aren’t subject to tax. The GST tax is a separate tax assessed on estate or gift transfers to grandchildren (or other “skip persons” – unrelated individuals who are at least two generations younger than the grantor) where the property is not subject to either estate or gift tax for the donor’s child.


Therefore, individuals who want to transfer assets to grandchildren or to other skip people may do so without incurring GST tax and also without using any of the grantor’s otherwise-available GST exemption, but only if the transfer is completed during 2010.


There are two primary ways to utilize this 2010 benefit and avoid any GST tax: first, outright gifts either directly to grandchildren or trusts exclusively for them, although the gift would be subject to the regular 35 percent gift tax (for example, if cumulative lifetime gifts exceed $1 million in 2010); second, transfers to grandchildren from previously existing trusts prior to Dec. 31, 2010


http://www.groco.com/readingroom/estate_grandchildren.aspx

http://www.crowehorwath.com/insights/tax-alert/geneartion-skipping-transfer-tax.aspx


————

Industrial and emerging markets sectors – With its unique and desirable physical properties, titanium can be used in a number of other end-use markets. Established industrial uses for titanium include chemical plants, power plants, desalination plants and pollution control equipment. Rapid growth of the Chinese and other Southeast Asian economies has brought unprecedented demand for titanium-intensive industrial equipment.

*TIMET (TIE) has an ownership interest in a joint venture, XI’AN BAOTIMET VALINOX TUBES CO. LTD. (BAOTIMET), which produces welded titanium tubing in Xi’an, China.

Titanium is accepted for many emerging market applications, including transportation, energy (including oil and gas) and architecture. Although titanium is often more expensive than other competing metals, over the entire life cycle of the application, we believe titanium is a better value alternative due to its durability, longevity and overall environmental impact. In many cases customers also find the physical properties of titanium to be attractive from the standpoint of weight, performance, design alternatives and other factors. The oil and gas market, a relatively new, potentially large growth area, utilizes titanium in certain down-hole casing, critical riser components, tapered stress joints, fire suppression water pump systems and saltwater-cooling systems. Additionally, as offshore development of new oil and gas fields moves into the ultra deep-water depths and as geothermal energy production expands, market demand for titanium’s light-weight, high-strength and corrosion-resistance properties is creating potential new growth opportunities. We have resources dedicated to the research and development of alloys and production processes to promote the expansion of titanium use in this market and in other non-aerospace applications.


Although we estimate emerging market demand presently represents less than 5% of the total industry demand for titanium mill products, we believe the emerging market sector offers many opportunities, and we have ongoing initiatives to actively pursue and expand our presence in these markets


Distribution. We sell our products through our own sales force based in the U.S. and Europe and through independent agents and distributors worldwide. We also operate eight service centers (five in the U.S. and three in Europe), which we use to sell our products on a just-in-time basis.

I am going to pitch Metals USA Holdings (MUSA)

And US Ecology (ECOL) to clean up all their mess…….to Contaran


 


 











Best thing Apple $AAPL can do right now, is buy Visa Inc. $V

















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Originally written : Tuesday, January 18, 2011 at 9:17pm


 In light of the recent news in Apple (AAPL), that  being Steve Jobs’s health issues and the future dynamic of the company after his departure. Below is a thesis of why now more than ever is the time for Apple to make a “cross market meshing if not societal morphing”, acquisition so to speak. One with a pretty visible revenue stream to come. One that is in the “societal sweet spot” going forward. Apple should BUY Visa Inc (V) on that premise!


If Apple buys Visa, it is foot in door to CHINA. Get in there where ya can. Daily transactions for a Billion PLUS people. I’ll take it!


When I think of Apples success over the last decade. I am reminded of what I’ve studied about RCA (Radio Corporation of America) And the societal and market implementations and implications it had in its time. A time that was in a technological infancy of the great things to come. Most at the time were saying “it (RCA) was going to take over the WORLD!”  It was in existence from 1919 to 1986. In 1930, the U.S. Department of Justice filed  antitrust charges against RCA, General Electric and Westinghouse (That is so crazy considering the US Navy and GE set up and spun off RCA many years earlier) As a result, GE and Westinghouse had to give up their ownership interests in RCA. RCA was allowed to keep the radio factories, and GE and Westinghouse were allowed to compete in that business only after 30 months passed. RCA) was Wall Street’s and Main Streets “best gal” high-flying tech-stock of the Roaring 1920s. It made many investors and speculators millionaires.  It was in essence a monopoly on “wireless communications for the masses.”  And not a serious competitor was anywhere in sight at the time.  


 In the five years before the Crash of 1929, RCA stock soared from about $11 to its September 1929 high of $114 (adjusted for the 5:1 stock split in Feb of that fatal year). That’s an appreciation of 935% in only five years! That equates to an annual compound return of a monumental 60%! Also it never paid a cash dividend. Market players didn’t care, because the stock value increased almost on a daily basis. At its 1929 peak RCA boasted an astronomical PE ratio of 72:1. <span>From 1929 and the stocks top of $114, over the next three years the stock price dropped to less than $3 (-97%) per share in 1932. 


Apple in my opinion needs to start making smart acquisitions that will replace a plateau in R&D that is coming. And for sure a plateau of it’s market and social life altering and market impactful release into society/world.  And margin contraction issues to come. And poss Anti Trust issues as well. I also feel it’s the same reasons they should also buy a flash component. Or a major school textbook publisher for it’s already in place licensing and “jumped hurdles” into the future education of the worlds children (lets start in USA) for schooling being done at home via the web and your device. And w/ VISA it is alllllllllllll about the cashless society going forward. BUT NOW IS THE TIME TO STRIKE/make the move. It’s good for the broad market and our USA economy as well. Timing is everything….for Apple is now treading water! And that is dangerous for shareholders who are not getting a div at least. Maybe a hologram related company also. Maybe even a cellular provider or satellite company. Take that out of future margin contraction equation. If Apple were to buy Visa Inc. It would be like a EBay owning a Pay Pal.


And can Apple afford to do this? Damnnnn skippy they can afford it! A little cash and a little stock. And a stock split in


AAPL the same day they announce deal to merge/acquire VISA. Apple then can take a shot at becoming the worlds first TRILLION DOLLAR market cap company. I am telling ya….it’s the “deal of the deals” for Apple and it’s shareholders right now. It also stifles anti trust talk cause they will be more so than ever to big to mess with!


And before I go on, I wanna  add this: To most around the Globe (and maybe beyond someday…ya really never know with explosive exponential technology growth) > The Visa brand/ logo equates to universal payment acceptance!


The cashless society thesis is coming on strong. That can not be denied or argued. It is for a multitude or reasons this will be an imminent action and transition by our Federal Government. Me personally feel that the orderly functionality of society depends on it. By taking CASH/paper currency out of American and World societies circulation/and people’s daily use. All transactions would be done with a Debit/ID card or via your HAND HELD DEVICE!


Microsoft Surface is exciting here with restaurant table tops and cashless payment and food ordering and social interaction. While say dining on a date and exchanging pics on surface of virtual table top. You can order right from the menu on the table (without even seeing a waiter/waitress…bye bye a couple 100k more jobs)  By going to a cashless society would  generate a “digital paper trail” per se. To have a FLAT TAX, Consumption TAX, Usage FEE, (or whatever ya terminology ya wanna” lipstick” it with) levied on the goods & services accordingly and automatically. One that is not hindered by political boundaries (ie the different States of the nation and countries of the world)  Not to mention the micro managing and real time demand statics/data that could come from this move (I wrote a peice about doing away w/ The National Census on the same basis). And the necessary instantaneous adjustments demographically in needed.


This will in essence be the Coup de Grace’ of the CASH/Underground Economy. These are the individuals and businesses that operate and live their lives on a cash basis, to avoid paying any taxes at all. At first we will see an upsurge/uprise of the barter system for those who will continue to fight it so to speak.


By taking CASH out of society and going to a debit card/device paying culture, would stuff the IRS coffers like we’ve never seen or thought possible!


There’s a reason why the singer Madonna has had hit songs in the last three decades. Because she constantly adapts and changes herself and her music to suit the times and the masses.


“Nothing great was ever achieved by someone NOT taking a risk along the way”


“Our statements must be judged by candid readers who are intelligent enough to lay our words alongside life as they are able to observe it. If our word and their observation agree, the case is made. It is perfectly silly to begin to damn us before it has been shown that our statements are baseless or reckless.”~ Henry Ford


==============


The iPhone as VISA card – Apple 2.0 – Fortune Tech

Not content to take your money, now Apple reportedly wants to be your money!

tech.fortune.cnn.com


Posted by Philip Elmer-DeWitt

January 25, 2011 7:08 AM


The Apple (AAPL) buzz Tuesday morning was all about a Bloomberg report — based

apparently on a single source — that the company is following Google’s (GOOG)

lead and building NFC (near-field communication) technology into its

next-generation iPhones and iPads.


“Apple plans to take NFC Mainstream,” begins MG Siegler’s headine in TechCrunch.

“Perhaps The Greatest Trick They’ve Ever Pulled?”


If Apple can successfully tie NFC technology — which lets you exchange money

and data wirelessly from up to 4 inches away — to the 160 million iTunes

accounts the company has on file, it could be huge, Siegler argues. By revising

iTunes to allow accounts to be credited or dinged directly, Apple could avoid

all those credit card fees and maybe get its hands on a slice of the $6.2

trillion Americans spend each year on goods and services.


“It could change everything,” Siegler writes. “It could transform Apple from the

biggest technology company in the world, to the biggest company in the world,

period. By far.”


We’re not entirely convinced.


We’ve been carrying a NFC-chip-equipped VISA card in our wallet for years. We tried to use it a few times to buy stuff at a discount pharmacy in New York City. One time it worked. The other times the check-out clerk rolled her eyes and asked me to just swipe the damn card.


Click here for a list of the 14 handsets already equipped with NFC technology

and the 33 countries currently conducting NFC trials.

•Google to power your mobile wallet


http://tech.fortune.cnn.com/2011/01/25/the-iphone-as-visa-card/











CVR PARTNERS LP $UAN – Domestically safe supplied fertilizer maker IPO












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Originally Published on: Apr 9, 2011 @ 5:16am


Lets get right to the point shall we — It’s a winner! It also no-doubt became HUGE M&A target today when it IPO’d from a few different monopolistic behemoths that don’t like anybody cutting in on their market share…..Momma Mosaic $MOS please come get me..he he


 


$UAN  is going to pay you a quarterly distribution/CASH. I anticipate it being a monthly distribution at some point. UAN is a spin-off of  CVR Energy Inc  $CVI. Who BTW was one of my best speculative picks ever “cough cough cough”.  I was with em since $3.15 avg in November 2008.  On 52wk alone +175% / all time low of $2.15 on 10-19-2008 +900%. They reported stellar earnings along the way Q after Q. Even a few closures due to Biblical Flooding. They paid down debt. They did everything right IMO and then some. Also cap ex via building additional storage in Cushing OK.  Secure supply deals w/ Vitol Group and others.   $CVI  IPO’d @ $21 went to $30 in a few and took swan cliffdive from there (I wonder if that will happen here w/$UAN ?) Some say at the time with $GS Goldman SHORTING them all they down, during  Jim Cramers fame — “Hedge Funds Gone Wild” , and amidst also the financial crisis of 2008. When $GS was selling to raise cash like rest.


As to what to do here with $CVI @$23 ? It depends where you are in your investment or whether to want to enter here now and take the shares of the long-term holders. Who will more than likely sell you some here,  and go buy some $UAN. That is why a covered call selling strategy works well here, if have substantial profits in $CVI ,  yet want to be there to capture a possible dividend program of CVI to come. Or a take out bid like discussed above. Dont write calls on entire position. But take them proceeds from selling call options (out of money a buck or two) and buy $UAN stake. Will be interesting and a telling in next weeks time in the CVI option chains. It comes down to evaluation,assessing, assigning their P/E in sector now. Right now P/E 143 sector avg is 18 . High because earnings are sometimes suppressed by a number of charges …that might dramatically lower their (NI) Net Income.

resulting is a very high TEMP P/E for a Q or longer.




They report earnings on May 3, 2011




The proceeds from the stake sold in IPO about $300 mil so they now have $500mil total. That is about equal to their debt. What they do exactly I dont know. Regardless it is a nice position for them to be in.  Personally, I would like to leave the debt or nix a little. And spend cap ex on more phenomenal growth than they have to this point…..possible?


Future crack spreads? who knows right now?  I dont!




It is tough call here @$23 to commit more capital. Until I see how it reacts and how and what is reported in next earings. But if you are here like some you have options (literaly…he he)>mxborne Re: “bought on dip other day @2.92..     11-Dec-08 01:35 pm     “










“good….you are going to make some money!!!!! nice buying under $3″~Steve Goff

















 CVR Energy estimates that the tons sold of ammonia of the Partnership during the quarter ended March 31, 2011 will be approximately 23,500 to 26,500 and the tons sold of UAN during the quarter ended March 31, 2011 will be approximately 169,500 to 175,500. During the quarter ended March 31, 2010, the Partnership sold approximately 31,200 tons of ammonia and 155,800 tons of UAN.






What made them appealing to me at the time was obviously the break up value to come if ever unlocked (here today in pps $23). But what appealed to me the most back then, when most in USA were saying at time — “we’re going to implode as a nation,  if we dont  pass TARP asap,  no money in ATM’s…lol”  I was seeking stock plays geared towards my protectionist/isolationist society and USA market thesis to come. Well $CVI fit that to a “T” at time, and still does today. And now $UAN. I also add, I dont think they will build any new refineries in the USA. basically what we have is what we have. That makes $CVI and others like Delek USA Holdings $DK very desirable to say a monopolistic behemoth looking to eat! For the already JUMPED  “EPA and NIMBY hurdles”





With the government actions that have taken place since I first started compiling portfolio of such picks in 2008. It seems that thesis comes more and more to fruition everyday in USA. And the uprisings around the globe only adding validity also. Also part of this trade thesis/fund was strategy if market behemoth were to fall for any reason ie  Agrium, CF , Potash Corp,Mosaic, and Yara.  Well $CVI was contingency for such.  If you can’t see or comprehend that we are reverting to what Russia once was in essence not too long ago…..then you’ve been asleep throughout defining events. Dont be the lest bit surprised if you one day hear the term “sharecropping as a town”  floating about.  At the time I found them they were domestically secure fed gasoline refiner, who had also a very profitable fertilizer segment. Diverse and unique business plan to say the least in sector. And the stock preformed exceptionally well from there.






 It $UAN is LP Limited Partnership. Means a flow throw entity. Gives most cash/revs back to shareholders monthly. Objective is to maximize quarterly distributions to theunitholders by operating the  nitrogen fertilizer facility in an efficient manner, maximizing production time and growing profitably within the nitrogen fertilizer industry and it’s pricing power.




from S-1




*Within 45 days after the end of each quarter, beginning with the quarter ending June 30, 2011, we expect to make cash distributions to unitholders of record on the applicable record date.




Pay Out All of the Available Cash We Generate Each Quarter.  Our strategy is to pay out all of the available cash we generate each quarter. We expect that holders of our common units will receive a greater percentage of our operating cash flow when compared to our publicly traded corporate competitors across the broader fertilizer sector, such as Agrium, CF Industries, Potash Corporation and Yara. These companies have provided an average dividend yield of 0.1%, 0.4%, 0.3% and 1.6%, respectively, as of February 28, 2011, compared to our expected distribution yield of     % (calculated by dividing our forecasted distribution for the twelve months ending March 31, 2012 of $      per common unit by the mid-point of the price range on the cover page of this prospectus). The board of directors of our general partner will adopt a policy under which we will distribute all of the available cash we generate each quarter, as described in “Our Cash Distribution Policy and Restrictions On Distributions” on page 53. We do not intend to maintain excess distribution coverage for the purpose of maintaining stability or  growth in our quarterly distributions or Otherwise to reserve cash for future distributions. Unlike many publicly traded partnerships that have economic general partner interests and incentive distribution rights that entitle the general partner to receive disproportionate percentages of cash distributions as distributions increase (often up to 50%), our general partner will have a non-economic interest and no incentive distribution rights, and will therefore not be entitled to receive cash distributions. Our common unitholders will receive 100% of our cash distributions.






Highly Reliable Pet Coke Gasification Fertilizer Plant with Low Capital Requirements.  Our nitrogen fertilizer plant was completed in 2000 and, based on data supplied by Blue Johnson, is the newest nitrogen fertilizer plant built in North America. Prior to our plant’s construction in 2000, the last ammonia plant built in the United States was constructed in 1977. Our nitrogen fertilizer facility was built with the dual objectives of being low cost and reliable. Our facility has low maintenance costs, with maintenance capital expenditures ranging between approximately $3 million and $9 million per year from 2007 through 2010. We have configured the plant to have a dual-train gasifier complex to provide redundancy and improve our reliability. In 2010, our gasifier had an on-stream factor, which is defined as the total number of hours operated divided by the total number of hours in the reporting period, in excess of 97% excluding the impact of downtime associated with the Linde air separation outage, the rupture of a high-pressure UAN vessel and the major scheduled turnaround.






Nitrogen, phosphate and potassium are the three essential nutrients plants need to grow for which there are no substitutes. Nitrogen is the primary determinant of crop yield. Nutrients are depleted in soil over time and therefore must be replenished through fertilizer use. Nitrogen is the most quickly depleted nutrient and so must be replenished every year, whereas phosphate and potassium can be retained in soil for up to three years.




Global demand for fertilizers is driven primarily by population growth, dietary changes in the developing world and increased consumption of bio-fuels. According to the International Fertilizer Industry Association, or IFA, from 1972 to 2010, global fertilizer demand grew 2.1% annually. Fertilizer use is projected to increase by 45% between 2005 and 2030 to meet global food demand, according to a study funded by the Food and Agriculture Organization of the United Nations. Currently, the developed world uses fertilizer more intensively than the developing world, but sustained economic growth in emerging markets is increasing food demand and fertilizer use.






As an example, China’s grain production increased 31% between September 2001 and September 2010, but still failed to keep pace with increases in demand, prompting China to double its grain imports over the same period, according to the United States Department of Agriculture, or USDA.






World grain demand has increased 11% over the last five years leading to a tight grain supply environment and significant increases in grain prices, which is highly supportive of fertilizer prices. During the last five years, corn prices in Illinois have averaged $3.80 per bushel, an increase of 80% above the average price of $2.12 per bushel during the preceding five years. Recently, this trend has continued as U.S. 30-day corn and wheat futures increased 104% and 74%, respectively, from June 1, 2010 to February 28, 2011. During this same time period, Southern Plains ammonia prices increased 67% from $360 per ton to $603 per ton and corn belt UAN prices increased 41% from $252 per ton to $354 per ton. At existing grain prices and prices implied by futures markets, farmers are expected to generate substantial profits, leading to relatively inelastic demand for fertilizers. Nitrogen fertilizer prices have decoupled from their historical correlation with natural gas prices and are now driven primarily by demand dynamics. Nitrogen fertilizer prices in the U.S. farm belt are typically higher than U.S. Gulf Coast prices because it is costly to transport nitrogen fertilizer.






The United States is the world’s largest exporter of coarse grains, accounting for 46% of world exports and 31% of total world production, according to the USDA. The United States is also the world’s third largest consumer of nitrogen fertilizer and historically the world’s largest importer of nitrogen fertilizer, importing approximately 48% of its nitrogen fertilizer needs. North American producers have a significant and sustainable cost advantage over European producers that export to the U.S. market. Over the last decade, the North American nitrogen fertilizer market has experienced significant consolidation through plant closures and corporate consolidation.




The convenience of UAN fertilizer has led to an 8.5% increase in its consumption from 2000 through 2010 (estimated) on a nitrogen content basis, whereas ammonia fertilizer consumption decreased by 2.4% for the same period, according to data supplied by Blue Johnson. Unlike ammonia and urea, UAN can be applied throughout the growing season and can be applied in tandem with pesticides and fungicides, providing farmers with flexibility and cost savings. UAN is not widely traded globally because it is costly to transport (it is approximately 65% water), therefore there is little risk to U.S. UAN producers of an influx of UAN from foreign imports. As a result of these factors, UAN commands a premium price to urea and ammonia, on a nitrogen equivalent basis.






Fert prices are going nothing but up! It is world food demand and week US Dollar thing. And this company (UAN) has the one of a  and cheapest prices to make it in the country. . The CEO’s of CVI even bought shares $3mils worth and lays right to buy more.


“Ya miss a 100% of the shots ya never take”…statistical fact



http://finance.yahoo.com/q?s=uan&ql=1


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Aditiion to blog 13-Apr-11 06:03 pm  : http://www.secinfo.com/dsvr4.q12ft.htm#1pwe




“Following the consummation of the Offering, CVR Energy’s indirect wholly-owned subsidiary, CRLLC, owns 69.8% of the common units, and members of the public own the remaining 30.2% of the common units.”




“The agreement also addresses the means by which we and CVR Energy obtain natural gas. Currently, natural gas is delivered to both the nitrogen fertilizer plant and the refinery pursuant to a contract between CVR Energy and Atmos Energy Corp. (“Atmos”). Under the feedstock and shared services agreement, we reimburse CVR Energy for natural gas transportation and natural gas supplies purchased on our behalf. At our request, or at the request of CVR Energy, in order to supply us with natural gas directly, both parties will be required to use their commercially reasonable efforts to (i) add us as a party to the current contract with Atmos or reach some other mutually acceptable accommodation with Atmos whereby both we and CVR Energy would each be able to receive, on an individual basis, natural gas transportation service from Atmos on similar terms and conditions as set forth in the current contract, and (ii) purchase natural gas supplies on their own account.””To effectuate the Offering, we, Coffeyville Resources Nitrogen Fertilizers, LLC, our direct wholly-owned subsidiary , CVR GP, LLC, our general partner that is an indirect wholly-owned subsidiary of CVR Energy and CRLLC and Morgan Stanley & Co. Incorporated, Barclays Capital Inc. and Goldman, Sachs & Co., as representatives of the several underwriters named therein , entered into an Underwriting Agreement, dated April 7, 2011 and attached hereto as Exhibit 1.1. Pursuant to the Underwriting Agreement, we sold 22,080,000 common units to the Underwriters (including 2,880,000 common units issued upon the exercise of the Underwriters’ over-allotment option) who resold them to the public.”











Integrity…look it up! Might find pic of Charles Schwab $SCHW….is a BUY!

















417 views 


 




I have already told you many times about the multi-sensational, and  ‘in the cat bird seat’ fundamentals, going forward with Charles Schwab (SCHW). Please read previous post if I have not.


Now for a technical catalyst!


Look at the 1yr chart and the very nice ‘cup’ taking formation. We are making our way up towards the the beginning formation of the handle to come. Now, I am not a technician. Nor do I play one on TV. But I have spotted this before. In Church & Dwight (CHD). It was pre 2:1 split in (CHD) when it was trading 45-50. And then it’s run to $85 before splitting. See old post below.


I suspect in the next few sessions we build that handle. Stock could trade down a bit towards it’s end before moving UP. If all others (brokerages, and the broad market, or finacials in general) are rallying strong and SCHW is down. Then the ‘pop’ will soon follow. It will be noticeable because the market will continue it’s upward trend to retest all time highs.  Thats righttttttt we’re going to S&P 1500. Needless to say I think Chuck is a BUY here @ $12.50 for damnnnn sure!


 


Mr. Fibonacci himself…told me today we are going to S&P 1520-1522 in next 7


months time!


Greece, The Euro, China….doesn’t matter! We’re going there. 100% retest of thetop. It’s just that simple. We’re going to overshoot a bit also….but at least to there in my judgement. The world might look like it is ending. But for whatever reasons come along to take us there (maybe inflationary rise even)


 


You aint nothing in my book, unless you put your name and date to something you are asking others to consider and lay ri$k to!


Steve Goff on 9-30-2011


S&P 1131




Asked by Steven L. Goff  – 2 answers – 190 views





=======================


Schwabs 1yr chart


 




“Components of the Cup and Handle


There are several components of the cup and handle that should be noted in order to evaluate the potential trading signal. First, it’s important that there is an upward trend before the formation of the cup and handle. In general, the larger the prior trend is, the lower the potential for a large breakout after the pattern has been completed. The reason being that a lot of the run-up in the security happened prior to the formation of the cup, again weakening the size of the potential upward move


A cup-and-handle pattern resembles the shape of a tea cup on a chart. This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same.


The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend.”


————-


old Stockpickr post


I’m pondering whether to commit more $ to Church & Dwight Co. Inc. (CHD) @ or


around $56-57? In anticipation of a move up to the next level in the coming


weeks. One based on the underlying fundamentals in the company and it’s stock


being strong within the space. Second, I give them props for ‘staying strong all


along’ so to speak. In this non stop market drama and fiasco. Lastly, what seems to be a “cup n handle” formation in


the charts. That’s indicative of a move to the upside to come. Maybe to the


$65-68 range some 17-19%. Stock close Fri July 17 2009 @ 56.19. I would’ve liked


to see a little more roundness on the formation of the bottom of the cup to be


honest, but I think it’s there or presents itself enough (this crap ain’t a


precise science ya know 😉


steve goff


7-18-09


http://stockpickr.com/view/answers/73884/


===================


Church & Dwight Co. Inc. (CHD) @ $68…one to watch in the coming weeks.


Building yet another ‘cup n handle’ formation in the charts and the fundies just look sensational… for this Domestic Consumer Staple BEAST!…and the


manufacturer of Trojan Brand Condoms.




Asked by Steven L. Goff  months ago – 2 answers – 266 views




http://www.stockpickr.com/view/answers/74181/


====================


Re:  (CHD) Chart is showing a  Cup n Handle formation!    18-Jul-09 12:53 pm    










this stock is getting ready to break out…..am I alone? ~steve goff










18-Jul-09 12:53 pm


http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=3548&tid=928&mid=930&tof=-1&rt=2&frt=2&off=1


====================


16-Oct-11 07:38 pm


I’m expecting upside surprise from Chuck!    16-Oct-11 07:38 pm    












Schwab Corps (SCHW) earnings on Monday? Dare I even attempt to calculate


estimated analysis??? he he off course > Along the lines of $0.25-.29 per share


for the past quarter. This surprise to most, will stem from a few different market and societal catalyst that are currently taken place and shape.*The Good-Guy Bank/Bad-Guy Bank, in the ‘Occupy Wall Street Campaign’ (What are they calling themselves these days?)During the whole sub-prime lending fiasco, the CDS’s and CDO’s cesspool, the mortgage lender and housing market meltdown, Major insurers collapses, that have occurred since 2007. Schwab is one names you have not seen in the headlines.Orrrrr ever standing in line for some TARP from ‘Hammering Hank Paulson’ at the time. Because you participated in casino games. That is very important to Chuck Schwab being THE industry ‘poster child’ for asset management integrity and ‘prudent man rule’ business practices and investments. Not a DIME of TARP taken here. It’s even tough to get Schwab to lend you stock to short (now that is tight run ship) They were not even made to do the en-unison ‘perp walk’ to the FED Discount Borrowing window by Paulson. Like he made some do who did not even really need TARP assistance. Goldman Sachs even had to become a ‘bank holding company’ in order to tap the FED window then. We are now reading headlines about that change hurting Goldman. Goldman Sachs should BUY Charles Schwab out for a few reasons.That is one of them for sure. Everyone and there mother knows a majority of


Chucks investments and assets are tied to low rates right now. Eventually that


tide will turn hard.The inevitable consolidation of the retail brokerage market is coming to a head so to speak. Only the strong are left and are attracting the folks (customers) who fled others for either integral issues or poor asset management and performance, or exorbitant management fee’s.*Chucks recent and accretive to earnings acquisitions.Especially into the retail options market. the bought OptionsExpress in mid March for about $1 billion. Also last August 2010 bought Windward Investment


Management for $140 million. And today With more and more ‘Average Joe Investor  using the options market to both hedge core long holdings and to participate in volatile stock movements with out having to buy long or short stock, thus deadening your trading/operating capital. To writing and selling covered calls


on positions.


The financial information playing field is now mostly level for investors, via


the evolution of the Internet and the instantaneous information news cycle of


the modern world we now live and trade in. A ‘ticker-tape parade today’ would


kinda hurt from all the iPhones hitting you on the head….lol! Serious


investors are smarter and more well equipped today than ever. And if you just


want to let someone else make your investments and growth your wealth while


mitigating foreseen risk. They have some of the best in the biz working there


doing just that.


The mass creation blitzkrieg of the ETF and ETN markets. Chucks stands to benefit from that as well. Even know ETF’s are the next black swan event IMO. Chuck still make coin on the transactions of them and not the managing of them. They have a little….but not much exposure there.


$1.7 trillion in total assets, roughly half are held in retail brokerage


accounts. Assets in retail advisory accounts now weigh in at about $115 billion


and growing. 750,000 bank accounts. With no $5 DEBIT FREE…..lol


The trading software/platform is great also.In the second quarter, retail advisory assets rose by 20 percent from the year-earlier period. Indeed, Schwab is converting “billions” of dollars a month from self-directed accounts to one of its advisory offerings, Bettinger said.


===============


Charles Schwab Corp. (SCHW) @ $12.75


on 10-14-2011






Sentiment : Buy





=======================




Schwab 3Q net income up 77 percent


Schwab 3Q net income climbs 77 percent as assets increase, clients use help advisory services


Discount broker Charles Schwab Corp. said Monday its third-quarter net income rose 77 percent as more investors turned to the company’s advisory services amid increased market volatility and stock trading increased.


The San Francisco-based company posted net income of $220 million, or 18 cents per share, compared with $124 million, or 10 cents per share, a year ago. The year-ago profit was $218 million excluding certain charges.


Revenue rose 11 percent to $1.18 billion from $1.06 billion a year earlier.


The results missed the estimates expected by analysts surveyed by FactSet. They expected earnings per share of 19 cents and revenue of $1.19 billion.


Shares of Charles Schwab fell 81 cents, or 6.4 percent, to close at $11.94 Monday. They’ve traded between $10.56 and $19.69 in the past 52 weeks.


Client assets grew 7 percent to $1.58 trillion, which includes $655.4 billion in the investor services segment of the business, which was up 2 percent from a year ago, and $640.1 billion in adviser services, up 5 percent. Other institutional services assets grew 30 percent to $280.9 billion.


Clients opened 191,000 new brokerage accounts during the period, up 14 percent. The company ended the quarter with 8.5 million active brokerage accounts, 769,000 banking accounts and 1.46 million retirement plan participants.


CEO Walt Bettinger said the business environment weakened further in the third quarter, but clients stayed with their long-term investing plans.


“Their cash holdings at Schwab remained close to pre-crisis levels, and they were consistently net purchasers of securities,” he said. “Our full-service capabilities were in demand during the recent quarter as enrollments in our advisory solutions continued at a strong pace.”


Net interest revenue jumped nearly 14 percent to $443 million from $387 million. That gain was largely the result of growth in interest-earnings assets. The average rate earned on those assets was 1.82 percent in the latest quarter, slightly below the 1.89 average in the year-ago quarter.


Net trading revenue grew to $248 million from $182 million.


Expenses fell to $821 million from $864 million.


Bettinger said effective expense discipline will be key to the company’s near-term profitability as economic conditions remain challenging.


================================


 


SAN FRANCISCO, Oct 28, 2011 (BUSINESS WIRE) — The Charles Schwab Corporation (SCHW) -4.10% today announced that it has entered into an agreement to acquire Compliance11, Inc., a provider of cloud-based, regulatory compliance software. The acquisition is expected to close in the fourth quarter of 2011, subject to customary closing conditions. Financial terms of the transaction are not being disclosed.


Based in Chicago and founded in 2005, Compliance11, Inc. is a leading provider of cloud-based compliance automation software for public companies, brokerage firms, investment advisors, hedge funds, private equity firms and pension funds. Its highly scalable and customizable platform provides companies with a series of compliance tools to assist in managing their disclosure, tracking, surveillance and reporting needs, and more efficiently manage employee compliance


Full reah here:


http://www.marketwatch.com/story/schwab-…


I add >


In an environment and news cycle that have utterly been dominated with fraud and corruption of late….. Sheriff Chuck is there watching over things baby!….lol


Integrity –


To adherence to moral and ethical principles; soundness of moral character;


 


 












=============


January 17,2012


Charles Schwab (SCHW) @$12.15-Shares Upgraded by Goldman Sachs (GS) to “Buy”

rating in a research report issued to clients and investors on Tuesday.






Very interesting!perk-up!….Interest rates could be getting ready to rise via the Fed. Schwab

stands to do better than most in sector come rate rising time.=============


Charles Schwab Corporation (SCHW )

$11.19 -0.61 (-5.21%)

Going below $11 NO DOUBT! Whatta SHAME….people are getting crushed and those that have money there are also. Talk about trading below book!….wow That dont say much for all the AUM there. that is exactly why they are taking it on chin of late. And zero % rates for as far as eye can see.

Asked by Steven L. Goff months ago – 13 answers – 537 views


http://admin-www.stockpickr.com/members/view/answers/75806/


The ‘inflation TAX’ is hurting CHUCK!


=======


Charles Schwab Corp. (SCHW)@ $12.50


You just have no idea of the POWERHOUSE they are becoming!


People will look back at this pps and say ‘How did I not get long some chuck back then?”


They are a winner in just about every scenario that can unfold. The strategist in me does nothing buy ponder/quantify them scenarios btw.


Asked by Steven L. Goff months ago – 2 answers – 143 views


http://stockpickr.com/members/view/answers/76311/


=============


Charles Schwab Corp. (SCHW) Dipped below $11 last few days…..seen A LOT of

shorts covering. We go up from here!


MY two banks > SCHW and BSBR


I am also long the Mexican Peso the last few day….once again! (FXM)…seems like I bought in perfect there. It went off cliff…I was there waiting!

Asked by Steven L. Goff months ago – 0 answers – 71 views


www.stockpickr.com/view/answers/76082/


============


 


The Charles Schwab Corporation (SCHW) You will be hard pressed to get CHUCK to

go below handle and stay let alone trade down much further. This is CHUCKs

resistance here today near $11.


Take a small bite!




Asked by Steven L. Goff 1 month ago – 0 answers – 43 views















Metals USA Holdings Corp $MUSA…Not all American Manufacturing is Dead!












9 




1,413 views 


 




This company just reported a very profitable and frankly surprising to most (except me) third quarter 2011. Closed today @ $10.03 (+11.1%).  EPS of $0.45 on revenues of $492 million. Not an easy task by any stretch, in the base metals sector and it’s businesses the last few months. They did meet and even exceed a bit, previous guidance of 2Q. They did what they said, so they get some props/kudos for that in my book. Especially those companies with predominantly domestic manufacturing exposure. They also were aided by some very savvy feed stock buying/stoking, to lay away in inventory/stockpiling it seems. And used it and managed it well as to not have over hang inventory. Also a “vast  diversification of produced products mixture that is not only beneficial, but defensive of profit margins.” This in Plates and Shapes added to core ferrous business that was before. They managed to mitigate the cyclically nature of the business it seems. They stepped in and filled the supply gap created by some others going out of business during these tough economic conditions. They did this for a major HVAC maker just recently in fact.


This below from there


Metals USA Holdings Corp · 424B4 · On 4/9/10


 


http://www.secinfo.com/d14D5a.r2Emj.htm






Our Competitive Strengths


 




Value-Added Services Generate Premium Margins Over Metal.    Metal service centers generally earn a margin over the cost of metal, which provides stability to metal service centers’ cash flows relative to primary metal producers through pricing cycles. In addition to our warehouse and distribution capabilities, we offer our customers a wide range of value-added metal processing and inventory management services, which enable us to earn a premium margin over the cost of metal. Our ability to earn premium margins is further supported by an enhanced product mix across our metal service center business, which includes supplementing our core carbon offerings with non-ferrous volumes. Over the last several years, we have also taken steps to improve our ability to earn premium margins by increasing our exposure to higher growth end-markets including energy, infrastructure, and aerospace and expanding our service offerings through investments in our facilities and targeted acquisitions.


Wow…did they ever nail that strategy spot on!




The number of clients MUSA has across a vast array of industries really makes them a good proxy for the overall parts and manufacturing macro picture in the USA. 14 different markets they touch. 25% of revenues come from non ferrous sales this Q. That is up 20% from last year alone. (PCP) Precision Cast Parts should be looking at this company IMO. As well as Harold Simmons from Contran Corps Valhi Inc. (VHI). One analyst on the call today asked the CEO if he (the CEO) had any intentions of acquiring anything else soon. I felt that was the wrong question to ask. I would have asked > “Anybody been sniffing around looking to buy MUSA?” Because they are a target rich M&A canidate here at this market cap….. for sure in my book. (RS) (NUE) (AA) (CMC)(STLD)…all potential buyers


They supply Boeing (BA) and it’s 787 Dream-Liner (uses twice as much aluminum sheeting  as rest of BA’s models), among other aerospace companies that will be refurbishing fleets over the next decade, the oil and gas service industry, The trucking industry, Farm and agriculture equipment, Major Appliance Manufacturers, General Electric (GE), They make some electrical components and cabinets for them. Like the aluminum cabinets you see on street corners that house the traffic light controllers. That is bullish in itself for USA infrastructure revamp. This company has a monopoly on many specific things used in a lot of specific industries that will be seeing increased sales and demand soon. They also have some very lucrative Federal Government contracts both military and non. They also make ‘heat exchangers’ for geothermal wells/alternative energy and home heating industry. I personally would give this company any credit facility they needed or wanted and send them on a shopping spree to grow some more. I also see a dividend in future from the cash flow creation taking shape here. They make a lot of the steel for the automotive business (flat rolled steel) from their Ohio Valley recent acquisition. This is a USA jobs producer company (that goes milessssssssss in my trading book) Look below. They are paying less in taxes and employing more people. All USA companies should take note and lessons!


7. Accrued Liabilities


Accrued liabilities consist of the following:





















June 30,


December 31,







2011


2010





Salaries and employee benefits

$
14.2


$
10.8





Income taxes


2.3



3.1







June 29, 2010


Metals USA Holdings announced  the acquisition of J. Rubin & Co.. A well-established metal service center with locations in Illinois, Wisconsin and Minnesota, J. Rubin’s broad product range consists of carbon steel bars, carbon plate and laser-cut flat-rolled products. J. Rubin’s product mix and value-added services are provided to a diverse range of end-markets.


March 11, 2011


Acquires The Richardson Trident Company. It’s third acquisition since its IPO last April. With sales for the twelve months ending December 31, 2010 at approximately $148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident’s eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States


Flag Intermediate Holdings Corporation (“Flag Intermediate”) and its 100% wholly owned subsidiary Metals USA, Inc. (“Metals USA”) and the 100% wholly owned subsidiaries of Metals USA are referred to collectively herein as the “Company,” “we” or “our.” Metals USA prior to its November 30, 2005 acquisition by Apollo Management V L.P. (“Apollo Management” and together with its affiliated investment entities “Apollo” or “Apollo V”) (the “Merger”) is referred to herein as the “Predecessor Company.” The condensed consolidated financial statements include the accounts of Flag Intermediate, and Metals USA and its subsidiaries. Intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. Flag Intermediate and Metals USA are 100% wholly owned subsidiaries of Metals USA Holdings Corp. (“Metals USA Holdings”).


“Trident provides a broad range of metals and processing services with a product mix that emphasizes aluminum, stainless steel and nickel. The majority of Trident’s customer base operates in the oil and gas services sector. Trident also serves customers in the aerospace, defense and transportation industries. Processing services include precision sawing, boring, honing, slitting, sheeting, shearing and tuning. Trident also offers supply chain solutions such as just-in-time delivery and value-added components required by original equipment manufacturers. As a result of the acquisition, we expect to increase our non-ferrous and value-added processing product and service offerings in the geographic areas and end markets that Trident currently serves.”


http://www.sec.gov/Archives/edgar/data/1038363/000119312511223280/d10q.htm


This from the CEO’s comments today in the 3Q conference call. Who by the way, while on the call was very adamant as to how MUSA managed to do so well this past quarter. And the PE the market is currently treating MUSA with is utterly ridiculous. He seemed actually mad in his speaking tone about this. I think he is justified in his sentiment based upon the growth MUSA has exhibited in it’s recent acquisitions within the space. I also took note how he was very stern and repetitive towards the 3 analyst who were on the call (GS, JMP, JEF). Who all congratulated him on a ‘beat’ on earnings this Q. I am expecting an upgrade or two in the net few days from someone beside myself.


The cash flow machine created here will be paying off and down acquisition debt here in no time. Plus a little company debt is a good thing right now on balance sheets. He also stated he had ‘BIG’ clients who have recently moved some of their manufacturing businesses from abroad to grow operations domestically now. It seems the (MADE IN THE USA) protectionist trading thesis is also hitting MUSA here of late. He stated that because the cost of production in some cases is  no longer significantly more beneficial to do outside the USA. DID I JUST HEAR THEY/WE ARE STEELING JOB BACK FROM OVERSEAS? Niiceeee……re patriot-ising America JOBS JOBS JOBS they are!


Metal shipments were 340,600 tons for the third quarter of 2011, up 25% from metal shipments of 272,600 tons in the third quarter of 2010. Metal shipments for the first nine months of 2011 were 1,069,000 tons, up 35% compared to metal shipments of 791,600 tons for the first nine months of 2010. Toll processed tonnage was 36,900 tons during the third quarter of 2011 compared to 15,500 tons for the third quarter of 2010. Toll processed tonnage was 123,600 tons during the first nine months of 2011 compared to 36,000 tons for the first nine months of 2010.


Lourenco Goncalves, the Company’s Chairman, President and C.E.O., stated: “Our third quarter results confirm we are succeeding with our plan to make Metals USA the most efficient company in the service center industry. We operate with a mentality to constantly go after profitable business, regardless of the economic headwinds, and have shifted our business to support markets that are doing well. Growth in automotive, energy, lawn and garden, heavy equipment, and agriculture, to name a few, have all contributed to offset end-markets that continue to struggle with recession overhang, such as non-residential construction.”


*YOY a 25% increase in shipping tonnage


*43% improvement in revenues


*70% improvement in EBITDA


*188% net income increase YOY




Net sales for the third quarter of 2011 were $492.3 million, up 43% from net sales of $345.3 million for the third quarter of 2010. Net income for the third quarter of 2011 was $16.7 million compared to net income of $5.8 million for the third quarter of 2010. Earnings per diluted share (“EPS”) were $0.45 in the third quarter of 2011 compared to $0.16 for the third quarter of 2010.


Net sales for the first nine months of 2011 were $1,430.2 million, up 48% from net sales of $968.2 million for the first nine months of 2010. Net income for the first nine months of 2011 was $50.6 million compared to net income of $8.4 million for the nine months ended September 30, 2010. EPS was $1.36 in the first nine months of 2011 compared to $0.26 for the first nine months of 2010.


I’m a ‘committed, shares in strong hands’ LONG here! And very bullish on this company here today at $10. I owned the stock higher from here but did some good ‘blood in the streets’ buying in August to dollar cost average down to a nice avg that is well above water now. But frankly, that lack of them NOT doing the same opportunistic buying (and them as insiders and me as only Average Joe Investor) bothers me some. They need to put up some money and do some buying for me to commit more capital to my investment here. But what I do own I feel is going to make a lot of money here!


The 11 1/8% Senior Secured Notes due 2015 (Metals USA Notes) are obviously first thing to get paid down with cash or restructured.


Metals USA Holdings is not a guarantor of the Metals USA Notes. There is a limitation on the amount of funds which can be transferred by the Guarantors to Metals USA Holdings in the form of dividends. Such amount available for distribution shall be increased by an amount equal to 50% of Consolidated Net Income, as defined, or reduced by an amount equal to 100% of Consolidated Net Loss, as defined. As of June 30, 2011, $3.4 was available for general distribution under the restricted payment covenant contained in the Indenture governing the Metals USA Notes. 


Com onnnnnn Bank of America, N.A., as Administrative Agent and Collateral Agent of these notes…..help a brother out!


23-Dec-2010


Entry into a Material Definitive Agreement, Creation of a Direct Financ




Item 1.01 Entry into a Material Definitive Agreement. On December 17, 2010, Flag Intermediate Holdings Corporation (“Flag Intermediate”), Metals USA, Inc. (“Metals USA”), and certain subsidiaries of Metals USA (collectively referred to herein as the “Company”) entered into an amended and restated loan and security agreement (the “New ABL Credit Agreement”) with the lenders party thereto and the Bank of America, N.A., as administrative agent and collateral agent. Flag Intermediate and Metals USA are wholly-owned subsidiaries of Metals USA Holdings Corp.The New ABL Credit Agreement provides for a new $500 million (which may be increased up to $750 million at the option of the Company), 5-year, senior secured asset-based credit facility (the “New ABL Facility”) that amends and restates the Company’s existing $625 million senior secured asset-based credit facility (the “Existing ABL Facility”) that was scheduled to mature on November 30, 2011.At the Company’s option, interest accrues on the loans made under the New ABL Facility at either LIBOR plus a specified margin (currently set at 2.50%), or the Base Rate (which is based off of the federal funds rate plus 0.50%, Bank of America’s prime rate or LIBOR plus 1.00%), plus a specified margin (currently set at 1.50%).




http://biz.yahoo.com/e/101223/musa8-k.html




Here is the link to conference call >













There is a short squeeze here as well. Look at the very small float and the 5% short interest!
















Shares Outstanding5:
37.06M




Float:
8.15M




% Held by Insiders1:
1.33%




% Held by Institutions1:
94.40%




Shares Short (as of Sep 30, 2011)3:
600.12K




Short Ratio (as of Sep 30, 2011)3:
3.80




Short % of Float (as of Sep 30, 2011)3:
5.10%




Shares Short (prior month)3:
606.66K














Top Institutional Holders
















Holder
Shares
% Out
Value*
Reported




Tempus Quo Capital Management, LLC
3,692,582
9.96
55,019,471
Jun 30, 2011




Apollo Management Holdings, L.P.
23,728,650
64.03
353,556,885
Jun 30, 2011




Ameriprise Financial, Inc.
2,009,115
5.42
29,935,813
Jun 30, 2011




GOLDMAN SACHS GROUP INC
1,037,233
2.80
15,454,771
Jun 30, 2011




UBS O’CONNOR LLC
573,722
1.55
8,548,457
Jun 30, 2011




VANGUARD GROUP, INC. (THE)
481,475
1.30
7,173,977
Jun 30, 2011




FRIESS ASSOCIATES INC
414,200
1.12
6,171,580
Jun 30, 2011




SHAW D.E. & CO., INC.
410,238
1.11
6,112,546
Jun 30, 2011




TOURADJI CAPITAL MANAGEMENT LP
350,000
0.94
5,215,000
Jun 30, 2011




ADAGE CAPITAL PARTNERS GP, L.L.C.
245,768
0.66
3,661,943
Jun 30, 2011
















Top Mutual Fund Holders
















Holder
Shares
% Out
Value*
Reported




Columbia Fds Ser Tr-Columbia Small Cap Value II Fd
950,000
2.56
14,934,000
May 31, 2011




GOLDMAN SACHS SMALL CAP VALUE FUND
639,697
1.73
5,725,288
Sep 30, 2011




Columbia Fds Ser Tr I-Columbia Small Cap Core Fd
404,290
1.09
6,023,921
Jun 30, 2011




VANGUARD SMALL-CAP INDEX FUND
197,965
0.53
2,949,678
Jun 30, 2011




ISHARES RUSSELL 2000 INDEX FD
148,567
0.40
1,852,630
Aug 31, 2011




Advanced Series Tr-AST/Goldman Sachs Small Cap Value Port
105,465
0.28
1,571,428
Jun 30, 2011




ING Parners Inc.-ING/Columbia Small Cap Value II portfolio
105,000
0.28
1,564,500
Jun 30, 2011




COLLEGE RETIREMENT EQUITIES FUND-STOCK ACCOUNT
90,136
0.24
1,475,526
Mar 31, 2011




Powershares Exhg Traded Fd-Powershares Dyn Basic Materials S
82,671
0.22
1,030,907
Aug 31, 2011




ISHARES RUSSELL 2000 GROWTH INDEX FD
75,256
0.20
938,442
Aug 31, 2011














———————————


MUSA is a sell here= SHORT


The company is now $500 million market cap. You should cover it Jim

Cramer….just to screw steve goff!

Metals USA Holdings Corp (MUSA) $13.94

February 2, 2012

























piguy314




I'm a 38 yr old, modern day Renaissance Man, Polymath, in ever sense of the words. Self educated genius no doubt. "The Police often questioned me, just because they found me interesting" (The Most Interesting Man in the World...drink Dos Equis beer...lol) I come from the last generation who knows what it was like before the computer age per se. The Rotary style phone to the iPhone I like to say. Don't be shocked by this below.......because it's only HALF of it! All true I assure you. Days of telling lies to myself and others are done. Masters Degree from the School of Hard Knocks. Double Doctorate PhD from Google University (like most will have in future). Jack of all trades. Jack Russel loving dog owner of 8yrs. Master of them all. 38 yr old heterosexual. Master electrician and stock trader now, wanna be fund manager, a never be nothing, political and economics junkie, former master safe cracker thief, liar, professional slot machine cheat, before tech advancement made me obsolete! A bad father, bad brother, bad son, and much more. Have been baker, cook, barber, teacher, student, ultra submissive lovers master, semi pro poker player. I'm a novice mathematician, mechanical genius ALL most would say. Sun worshiper, surfer, convicted felon at age 18. Five year prison stay from 18 until 24yrs old. Hence school of Hard Knocks Degrees. Amateur magician, Rubik's Cube solver, social algorithms developer, exponential growth being humanity's most powerful force. My mom was a closet drinker for much of my youth and worked night and slept all day. I am Drake Equation believer, a Luddite I think, student of great societal cyclicality in humanity. I've been shot, I've been stabbed, I've been loved more than life to some, and abandon by the same. Raised Catholic, now of the agnostic mindset. Frankly I dont care if God Almighty exist, for we have bigger problems as a species to solve. I'm speed reader semi cursed with photographic memory, say cursed for some memories are not good. Great pool player, better marksman, Have hunted and killed the beast. A believer information to the masses is more powerful than oil and gold put together. Occam's Razor believer, Rube Goldberg simplifier, Huge student of propaganda and all it's techniques, I wanna go to outer space someday before I die. I dont fear death. I fear not Livin' 











Joined Oct 26, 2011 



10 Blog Posts
















piguy314












Joined Oct 26, 2011 



10 Blog Posts



















RigNet Inc, $RNET and Iridium $IRDM…sittin’ in a tree…K-I-S-S-I-N-Gee!












2 




1,017 views 


 




Rough draft…will add more as I compile trade thesis….Sunday February 26, 2012


How come these companies are not together yet,  is just beyond me! RigNet makes it possible for most all the Oil and Nat Gas wells in the WORLD….both land and ocean RIG platform to be remotely monitored, operated if need be, and interconnected with Video, Voice, and Data.  All done via satellite remote control technology/peripherals. This company could be categorized as an ‘oil service’…. and maybe even bought as that one day. That is only enhanced with the advancements and implementations of the satellite broadband delivery services of Iridium. Satellite transmission of vital broadband data, voice, and video…..to ANYWHERE on the planet Earth.  Iridium has 61 birds that we know of….after all they are a quasi govt entity. So they probably have redundant secret ones as back up to back up. This company is is pretty spectacular really. I also think RigNet is about to drop ViaSat Inc. (VSAT) usage and go with Iridium. Please understand this is sheer speculation on my part.


I was wondering > Is the perceived limited bandwidth spectrum beatable some how via satellite transmission technologies and the peripherals on the other end of the satellite transponders that catch it? maybe in the attenuation of the signal or the Band-Pass Filters or with data compression or multiplexing. I will have to check that out some more.


Surly for the delivery of Broadband is beatable in a sense via satellite. Using satellite delivery instead of land tower or land-line wire and cable or fiber-optic ensures redundancy and virtually uninterrupted service with no boundaries by land physical obstacles. Be it a countries boarders or government agenda or condition of the planet. Earth could be on fire or underwater or in ruble…BUT you will still get Fox News and Facebook status updates….telling you it is on fire….lol)


I was also wondering > WHEN is Google, Apple,  GE, Verizon, AT&T,  and or  Microsoft going to buy Iridium Communications (IRDM)? Is that not a no-brainer for any of them? Satellite broadband…voice, video, and data! Iridium has 61 satellite global grid.  And the ‘satellite phone’  GROWING hand held market. Also the very lucrative and repeating subscription model revenue base of services for GPS maritime (shipping) market. Many countries of the world are passing regulations mandating the purchase of much of Iridium’s products and services worldwide. to counter pirating and enhance human safety at sea and shipping route ultra efficiency and profits.


http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8233851-822-127676&type=sect&dcn=0000950123-11-097142


RigNet, Inc. (RNET) provides remote communication services for the oil and gas industry through a controlled and managed Internet Protocol/Multiprotocol Label Switching (IP/MPLS) global network, enabling drilling contractors, oil companies and oilfield service companies to communicate more effectively. The Company provides its customers with voice, fax, video and data services in real-time between remote sites and home offices throughout the world, while the Company manages and operates the infrastructure from its land-based Network Operations Center.


The Company’s corporate offices are located in Houston, Texas. The Company serves the owners and operators of offshore drilling rigs and production facilities, land rigs, remote offices and supply bases in approximately 30 countries including the United States, Brazil, Norway, Great Britain, Nigeria, Qatar, Saudi Arabia, Singapore and Australia.


RigNet, Inc. stockholders’ equity

Preferred stock — 10,000,000 shares authorized; zero and zero shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively
 	  	 —	  	  	  	 —
Common stock — 190,000,000 shares authorized; 15,442,960 and 14,760,687 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively


 


Chart forRigNet, Inc. (RNET)


===================


 


Some Wiki notes:


In electrical engineering and telecommunications, attenuation affects the propagation of waves and signals in electrical circuits, in optical fibers, as well as in air (radio waves).


A communications satellite‘s transponder, is the series of interconnected units which form a communications channel between the receiving and the transmitting antennas.[1]


A transponder is typically composed of:


    

  • An input band limiting device (a band pass filter)
    • 

  • An Input low-noise amplifier (LNA), designed to amplify the (normally very weak, because of the large distances involved) signals received from the earth station
    • 

  • A frequency translator (normally composed of an oscillator and a frequency mixer) used to convert the frequency of the received signal to the frequency required for the transmitted signal
    • 

  • An output band pass filter
    • 

  • A power amplifier (this can be a traveling-wave tube or a solid state amplifier)
    • 



Most communication satellites are radio relay stations in orbit, and carry dozens of transponders, each with a bandwidth of tens of megahertz. Most transponders operate on a “bent pipe” principle, sending back to earth of what goes into the conduit with only amplification and a shift from uplink to downlink frequency. However, some modern satellites use on board processing, where the signal is demodulated, decoded, re-encoded and modulated on board the satellite. This type, called a “regenerative” transponder, has many advantages but it is much more complex.


With data compression and multiplexing, several video (including digital video) and audio channels may travel through a single transponder on a single wideband carrier.


Original analog video only had one channel per transponder, with subcarriers for audio and automatic transmission identification service ATIS. Non-multiplexed radio stations can also travel insingle channel per carrier (SCPC) mode, with multiple carriers (analog or digital) per transponder. This allows each station to transmit directly to the satellite, rather than paying for a whole transponder, or using landlines to send it to an earth station for multiplexing with other stations.


NASA distinguishes between a “transponder” and a “transceiver“, where the latter is simply an independent transmitter and receiver packaged in the same unit, and the former derives the transmit carrier frequency from the received signal. This linkage allows an interrogating ground station to recover the Doppler and thus infer range and speed from a communication signal without allocating power to a separate ranging signal.


An ideal bandpass filter would have a completely flat passband (e.g. with no gain/attenuation throughout) and would completely attenuate all frequencies outside the passband


Digital transmission


There are two main categories of digital communication transmission methods: baseband and passband.



    

  • In passband transmission, digital modulation methods are employed so that only a limited frequency range is used in some passband filtered channel. Passband transmission is typically utilized in wireless communication and in passband filtered channels such as POTS lines. It also allows for frequency-division multiplexing. The digital bit stream is converted first into an equivalent baseband signal, and then to a RF signal. On the receiver side a demodulator is used to detect the signal and reverse the modulation process. A combined equipment for modulation and demodulation is called a modem.
    • 



[edit]Characteristics


In general, there is an inverse relationship between the width of a filter’s passband and the time required for the filter to respond to new inputs. Broad passbands yield faster response[citation needed]. This is a consequence of themathematics of Fourier analysis.


 


Chart forIridium Communications Inc. (IRDM)











Miller Industries, Inc. $MLR Tow-Trucks…we all needed one before…always will!












2 




1,397 views 


 






Miller Industries, Inc. (MLR)


Last on Feb 24, 2012  >$17.14   dividend 0.48/2.8% yield


They report earnings on March 5, 2011



This is a very handsome little company that has some very powerful catalyst now, and maybe even more to come. In it’s products, services, share structure, valuation, market share, a possible small business Federal Government stimulus subsidy bump maybe someday soon (Tow-Truck owner/operator is good little lucrative small start-up business for a medium skilled person). Miller Ind. (MLR) makes, sells, tow-trucks and most all the necessary goodies one person would need to be in the towing/recovery business. We all seen the shows on Discovery Chanel TV of them glorifying, but yet enlightening us to the very dangerous and exciting job of a tow-truck wrecker operator.


The provision for income taxes for the three months ended September 30, 2011 and 2010 reflects a combined effective U.S. federal, state and foreign tax rate of 38.9% and 39.3%, respectively.


{{{CAN A BROTHER GET A TAX CUT?}}}


Here  below is a note out yesterday




======================






SUNDAY, FEBRUARY 25, 2012










Obama administration proposes corporate tax cut


The Obama administration has released preliminary details of a proposed overhaul of corporate taxes that would lower the tax rate for companies from the present 35 percent to 28 percent, and down to 25 percent for US manufacturers.


=======================










I see some accelerated earnings growth here and sizable gain (if not conquering ) market share for Miller. Along with some decent and logical visibility in earnings (market catalyst). Not to mention the nice share structure it has, for them to maybe do some M&A growing themselves. I heard a great man once say: “There is only two reasons a company should ever takeover/buy-out another company…. either to grow or kill/lessen the market competition.”  They will have the stock and or the cash to do a deal….easily in fact…and a $25 million unsecured revolving credit facility via First Tennessee Bank National Association. Also right now they are realizing some gains via foreign exchange market crossover rates of weak U.S. Dollar. Reporting earnings in U.S. Dollars that some are made abroad in stronger currencies the last few months.Comprehensive Income


Notes from their last SEC 10-Q :


The Company had comprehensive income of $5.0 million and $3.9 million for the three months ended September 30, 2011 and 2010, respectively, and comprehensive income of $19.9 million and $5.2 million for the nine months ended September 30, 2011 and 2010, respectively. Components of the Company’s other comprehensive income consist primarily of foreign currency translation adjustments.


For the Nine Months Ended September 30, approx 15% of net sales derived so far from foreign customers. Marginable best describes that exposure and possible bump to any earnings. But noteworthy


SHAREHOLDERS’ EQUITY:


-Preferred stock, 5,000,000 shares authorized, none issued or outstanding


-Common stock 100,000,000 shares authorized, 11,267,460 and 11,709,275 outstanding at September 30, 2011


and December 31, 2010, respectively









Stock Repurchase Program


In May 2011, the Company’s board of directors authorized the repurchase of up to $20.0 million of shares of its common stock. Through September 30, 2011, a total of 796,500 shares have been repurchased for $13.7 million.


That means there is a good chance they maybe bought approx 370,000 shares the last couple months at about $16-17 per. The new O/S approx 10,900,000 shares now.




   


 








BASIC AND DILUTED INCOME PER SHARE








Basic income per share is computed by dividing income by the weighted average number of common shares outstanding. Diluted income per share is calculated by dividing income by the weighted average number of common and potential dilutive common shares outstanding. Diluted income per share takes into consideration the assumed exercise of outstanding stock options resulting in approximately 349,000 and 481,000 potential dilutive common shares for the three months ended September 30, 2011 and 2010, respectively, and 419,000 and 490,000 for the nine months ended September 30, 2011 and 2010, respectively. For the three and nine months ended September 30, 2011 and 2010, none of the outstanding stock options would have been anti-dilutive.    


==================


In a round-a-bout way Miller’s products and portion of their revenues stem from statutory requirments in their industrty and our everyday lives. Statutory requirements being secret code name for > FUCKIN’ YA!……also for a Political Economy! The passage of legislation (LAWS) by a Government in a timely and covert manner, as to be sold as in the public’s best interest and safety of and thus is why you must pay for them also. Some governments do this to stimulate or alter forecasted down turns in economic cycles (planned market and technological obsolescence and it’s market and economy ramifications). To perpetuate, create a workforce who consumes and pays it’s TAXES! Them LAWS in most cases do generate private profits to shareholders in their stocks. In the form of dividend payments or capital appreciation of the asset from all the FORCED insurance premiums you have mailed them over the years. (TRILLIONS) You don’t think Warren Buffett owns Gieco Insurance for just that funny talking lizard….do ya?) The auto insurance industry and I feel the Surety Bonding business, are two of the poster children for my snide assimilation to Marxism, hence the Political Economy. So back to Miller having a thriving and growing market. When you don’t have Warren Buffett…I mean active auto insurance…lol, and get cuaght driving…your car gets TOWED away, or you wreck your car in accident, and have insurance, who pays for the TOW TRUCK SERVICES in the claim in most cases in the end. Police Dept’s in city’s in across America and around the world have towing vehicles, if not, they sub out to a third party contractor who needs to purchase truck from (MLR) likely. Also with regards to the stringant regulations of the specifications on the designated ‘towing and recovery’ equipment by both State and Federal agencies perpetuating, if not at a minimum, enhancing market(s) for them. See this link I found of a City Council meeting in a Utah town.


http://www.rules.utah.gov/publicat/code/r909/r909-019.htm


And some of the ‘regulatory hoops’ the tow-ruck industry must jump.And the fact their products and service thrive and survive on the creation of another statutory requirements orrrrr Govt municipal purchases and small mechanic service centers/garages (a future bull market in itself based up auto industry consumer trend). The world needs tow-trucks! Whether you drive a new green alt-energy car or a Hooptie! Because you are going to park it illegally one day, maybe crash it up while texting, maybe call AAA because you broke down (AAA could be big for (MLR) them if the ever cranked it up, in-house towing and national subsidized fleet purchasing). If I was a sales rep for Miller, I would be at almost every League of Municipality’s Conventions  throughout America. Where the procurement people usually go who work for City’s and County’s in America. I would be selling them on buying a tow-truck(s) and starting their own ‘in-house’ towing and impound departments/programs to enhance City revenues and Dept funding shortfalls that may be occurring in the future from local tax revenue base downturns. Oshkosh Corporation (OSK) in lieu of Defense spending cuts should be looking to broaden their markets…..Miller (MLR) would make a nice little subsidiary asset for Oshkosh. They have  $440 MILLION in CASH!….why not? 







=================





Miller Industries Inc/TN · 10-Q · For 9/30/11


Filed On 11/8/11 5:01pm ET   ·   SEC File 1-14124   ·   Accession Number 1188112-11-3113




 






Executive Overview


Miller Industries, Inc. is the world’s largest manufacturer of vehicle towing and recovery equipment, with domestic manufacturing subsidiaries in Tennessee and Pennsylvania, and foreign manufacturing subsidiaries in France and the United Kingdom. We offer a broad range of equipment to meet our customers’ design, capacity and cost requirements under our Century®, Vulcan®, Challenger®, Holmes®, Champion®, Chevron™, Eagle®, Titan®, Jige™ and Boniface™ brand names. In this Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the words “Miller Industries,” “the Company,” “we,” “our,” “ours” and “us” refer to Miller Industries, Inc. and its subsidiaries or any of them.


Our management focuses on a variety of key indicators to monitor our overall operating and financial performance. These indicators include measurements of revenue, operating income, gross margin, earnings per share, capital expenditures and cash flow.


We derive revenues primarily from product sales made through our network of domestic and foreign independent distributors. Our revenues are sensitive to a variety of factors including general economic conditions as well as demand for, and price of, our products, our technological competitiveness, our reputation for providing quality products and reliable service, competition within our industry, and the cost of raw materials (including aluminum, steel and petroleum-related products).




My note : If memory serves me…a lot of expected rise in Aluminum did not happen and steal coast are also down and they (MLR) raised prices in anticipation of this to their clients. 






We remain concerned about the continuing effects of these factors on the towing and recovery industry have continued certain steps implemented in 2009 to lower costs in response to these uncertainties. These steps included headcount reductions for certain non-production personnel and reductions in certain administrative expenses. Due to increased demand for our domestic products and higher production of follow-on government orders through prime contracts during 2010 and the first nine months of 2011, production hours at all facilities were restored and reduced work weeks and furloughs were eliminated. We will continue to monitor our overall cost structure to ensure that it remains in line with business conditions.      = People back to work! ……clap clap clap


In addition, we have been and will continue to be affected by changes in the prices that we pay for raw materials, particularly aluminum, steel, petroleum-related products and other raw materials, which represent a substantial part of our total costs of operations. In the past, as we have determined necessary, we have implemented price increases to offset these higher costs. We also developed alternatives to some of the components used in our production process that incorporate these raw materials, and our suppliers have implemented these alternatives in the production of our component parts. We continue to monitor raw material prices and availability in order to more favorably position the Companyin this dynamic market.


During the second half of 2008, we began to secure follow-on governmental orders through prime contractors for which we now expect production to be completed during the fourth quarter of 2011. Through these follow-on orders, along with continued performance in the governmental and international marketplace, we were able to somewhat offset significantly lower demand from our commercial customers which began in the second half of 2008. Although demand from our commercial customers has not recovered to pre-2008 levels, we have seen strengthening demand from these customers during 2010 and 2011. However, the increase in revenues in the first nine months of 2011 is due primarily to the impact of our follow-on government orders.  For the three months ended September 30, 2011, 22.3% of our consolidated sales were made to prime contractors for government-related orders, as compared to 22.3% during the second quarter of 2011, 41.6% during the first quarter of 2011 and 17.6% during the fourth quarter of 2010.  We expect deliveries on our follow-on orders to continue at roughly current levels through the end of this year, but at this time we do not expect to receive additional follow-on government-related orders in the near term. We continue to work to secure additional domestic and foreign governmental orders, but we cannot predict the success or timing of any such efforts.


There were no borrowings under the current credit facility at September 30, 2011.






Commitments


The Company has entered into arrangements with third-party lenders where it has agreed, in the event of default by a customer, to repurchase from the third-party lender Company products repossessed from the customer.  =NICE! 


These arrangements are typically subject to a maximum repurchase amount. The maximum amount of collateral that the Company could be required to purchase was approximately $17.2 million at September 30, 2011, and $13.2 million at December 31, 2010. However, the Company’s risk under these arrangements is mitigated by the value of the products that would be repurchased as part of the transaction. The Company considered the fair value at inception of its liability under these arrangements and concluded that the liability associated with these potential repurchase obligations is not material.


At September 30, 2011, the Company had commitments of approximately $1.3 million for construction and acquisition of property, plant and equipment.















Name of Entity




 




Jurisdiction of Incorporation








 
 
 






407664 British Columbia Ltd.


 


British Columbia, Canada








APACO, Inc.


 


Delaware








Boniface Engineering, Ltd.


 


United Kingdom








Century Holdings, Inc.


 


Tennessee








Champion Carrier Corporation


 


Delaware








Chevron, Inc.


 


Pennsylvania








F.G. Russell Truck Equipment Ltd.


 


British Columbia, Canada








Jige International S.A.


 


France








Miller Financial Services Group, Inc.


 


Tennessee








Miller/Greeneville, Inc.


 


Tennessee








Miller Industries Distributing, Inc.


 


Delaware








Miller Industries Europe B.V.


 


Netherlands








Miller Industries International, Inc.


 


Tennessee








Miller Industries Towing Equipment Inc.


 


Delaware








RRIC Acquisition Corp.


 


Delaware
















Chart forMiller Industries Inc. (MLR)






Results of Operations–Three Months Ended September 30, 2011 Compared to Three Months Ended September 30, 2010


Net sales for the three months ended September 30, 2011 increased 31.4% to $96.8 million from $73.7 million for the comparable period in 2010. This increase was primarily attributable to increased revenues from a prime contractor for a government-related order discussed above, as well as increased activity from our commercial customers.


Costs of operations for the three months ended September 30, 2011 increased 30.4% to $81.2 million from $62.3 million for the comparable period in 2010, which was attributable to the increase in domestic and governmental sales described above. Overall, costs of operations decreased as a percentage of sales from 84.5% to 83.9%, primarily due to product mix during the quarter consisting of a lower percentage of lower margin chassis sales.


Selling, general, and administrative expenses for the three months ended September 30, 2011 increased to $7.5 million from $6.5 million for the three months ended September 30, 2010. This increase was attributable to higher sales levels during the period, as well as increased sales commissions and incentives and medical costs. As a percentage of sales, selling, general, and administrative expenses decreased to 7.7% for the three months ended September 30, 2011 from 8.8% for the three months ended September 30, 2010 due to the fixed nature of certain of these expenses.


Total interest expense increased to $0.2 from $0.1 million for the three months ended September 30, 2011 as compared to the comparable period in 2010. Increases in interest expense were primarily due to increases in interest on chassis purchases.


Other income and expense relate to foreign currency transaction gains and losses. During the three months ended September 30, 2011, the gain was $9,000 compared to a loss of $37,000 for the prior year period.


The provision for income taxes for the three months ended September 30, 2011 and 2010 reflects a combined effective U.S. federal, state and foreign tax rate of 38.9% and 39.3%, respectively.


Results of Operations–Nine Months Ended September 30, 2011 Compared to Nine Months Ended September 30, 2010


Net sales for the nine months ended September 30, 2011 increased 33.5% to $303.3 million from $227.2 million for the comparable period in 2010. This increase was primarily attributable to increased revenues from a prime contractor for a government-related order discussed above, which order was completed during the first quarter of 2011, as well as an add on order for this prime contractor.  The increase was also partially attributable to increased activity from our commercial customers.


Costs of operations for the nine months ended September 30, 2011 increased 28.6% to $249.4 million from $193.9 million for the comparable period in 2010, which was attributable to the increase in domestic and governmental sales described above. Overall, costs of operations decreased as a percentage of sales from 85.4% to 82.3% primarily due to product mix during the first nine months of 2011 consisting of a lower percentage of lower margin chassis sales.












 








12
















 






Selling, general, and administrative expenses for the nine months ended September 30, 2011 increased to $23.3 million from $19.7 million for the nine months ended September 30, 2010. This increase was attributable to higher sales levels during the period, as well as increased sales commissions and incentives and medical costs. As a percentage of sales, selling, general, and administrative expenses decreased to 7.7% for the nine months ended September 30, 2010 from 8.7% for the nine months ended September 30, 2010 due to the fixed nature of certain of these expenses.


Total interest expense increased to $0.5 million for the nine months ended September 30, 2011 from $0.2 million for the comparable prior year period. Increases in interest expense were primarily due to increases in interest on chassis purchases.


Other income and expense relate to foreign currency transaction gains and losses. During the nine months ended September 30,


2011, the gain was $18,000 compared to a loss of $0.1 million for the prior year period.




——————————–


I am long the stock!











Is Buffett building Berkshire to be a quant-fund?












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Most investors and traders are scratching their heads trying to figure out why Warren Buffet/Berkshire  Hathaway took a 5% plus stake in (IBM). I have never made an investment based upon Buffet nor a trade for that matter. It’s not my style, I am a leader and not a follower! 


At first, I personally thought he made this buy to put the ‘Buffett Floor and saftey seal of  approval’ just to keep IBM afloat at these levels for a bit. IBM, a major (the biggest actually 11.74% weight) component of the DOW and Americana tecnology hero for matter….and no other reason but.  He also bought into Intel.


I mean this is a man who has made most, if not all, of his fortune investing in the simple things in life he could understand. If Mr. Buffett would have participated in the massive tech stock market rallies to date, created from the exponential technology advancements he might be worth a over a Trillion Bucks by now. he could have dipped and dive out of markets and product obsolescence along the way, to be worth a trillion by now. But lets also remember he avoided their bubble bust all along as well.


I could not for the life of me imagine why Mr. Buffett would jump on the ‘Big Blue’ bus now at these levels. Was this an inflation hedge on his part? Did he choose the biggest US Dollar dominated asset and it’s weighting relative to the index to play inflation and that is all. I just cant picture Mr Buffet uttering some technical ‘IT’ jargon as to his investment thesis here. Enquirer-ing minds want to know….mainly my own. What’s the ‘Oracles’ angle here?


A friend of mine at Stockpickr.com , Michael Morse wrote this to me:


‎”what contract does IBM have that no one else in the world will ever get? answer that and you’ll figure out why Buffett has taken an interest in it.”~ Mike Morse”


I shot back:


Mike, you think he bought in IBM for it’s Government industry so to speak…. ie  IBM’s Social Security Administration handling >>>> “the biggest accounting operation of all time”? Is that what you are saying?


+++++++++++++++++++++++++++++


Mike has not got back to me yet at the time I am writing this. So now I got that in the back of my brain swimming around. I put that with what I know of some recent acquisitions by Wells Fargo in the financial software arena of late.


++++++++++++++++++++++++++++++


Below is a post I wrote about Mr Buffett not too long ago:


“Is there any wonder why Warren Buffett loves the insurance biz? Statutory requirements mandated by the Govt (Fed, State, Local) to generate revenues and an industry who’s existence was to protect the taxpayer! The surety bond is just that. I was combing through a 10K Annual report of a distiller company and found this excerpt. The insurance industry once created many 9-5 office jobs in this country. But like most jobs nowadays the technology is available to replace the human worker. Actuary risk formulas to calculate premiums is done with info/data never before available and with probability risk done by computers. And you can buy your surety bond right online at your institution in minutes now via some tech.


Let me tell you one of the things I do like about Wells Fargo here though. North Coast Surety Insurance Services and Surety Technologies acquisition April 20, 2009


+++++++++++++++++++++++++++++++


And then there is > Algorithmics, Financial Risk Management Software…an IBM company www.algorithmics.com A provider of innovative enterprise-wide financial risk management software that enables financial institutions to proactively manage risk and allocate capital effectively and defensively.


++++++++++++++++++++++++++++++


There has to be some method to his madness here…..valuation of a company that has generations of young kids in their mothers basement nipping at their heels. They better hire or buy out any and all who come along to stay afloat in their current biz and growth model. I thought they really ‘jumped the shark’ when they (IBM) had the super computer Watson on Tv’s Jeopardy game show. That seemed like nothing more than a propaganda campaign with China’s announced super computer capabilities at the time. There is something going on here….I am going to keep digging! Maybe Mr Buffett has evolved to see there that the harnessed collective consciousness of the Internet and the algorithms we produce has lucrative potential.


 


*How Ray Dalio built the world’s richest and strangest hedge fund


 


http://www.newyorker.com/reporting/2011/07/25/110725fa_fact_cassidy


+++++++++++++++++++++++++++++++


“Supposedly there’s a hedge fund in London getting started that is going to operate/trade on algorithms comprised of the “harnessed collective consciousness” of your posting on the web, at the various venues you frequent on the web. HOLLY CRAP!!!….you would think this is my fund!….lol It just got $25 million start up capital. They will have my resume’ the first of the year.”


Asked by Steven L. Goff months ago – 14 answers – 904 views


http://stockpickr.com/members/view/answers/74234/


+++++++++++++++++++++++++++++++


I add this also “A good read…..and logical point in today’s harnessed collective consciousness interconnected Web world. They invented this tech, made us buy it to make them rich, and now they’re pissed when we start beating them with it…lol WTH Maybe insider trading should be legal The question isssssssss….does algorithmic quant funds that track members stock viewing and trading habits qualify as insider info nowadays? if sold to a third party?” November 23, 2010 at 5:19pm


http://jamesaltucher.com/2010/11/maybe-insider-trading-should-be-legal/


+++++++++++++++++++++++++++++++


“Quant funds and high frequency trading….interesting! No formula, quantitative or not can ever assign true integer/metric to the X or H factor. That being the human emotion factor or lack there of. The herd mentality, panic, exuberation, black swan events, etc. LTCM > Robert C. Merton and Myron S. Scholes Long Term Capital Management, tried that….and ultimately failed……to the tune of needing a NY Fed broker bailout due to the systemic risk they posed to the system at the time. Also have ya ever read the book? > Extraordinary Popular Delusions & the Madness of Crowds ~ Charles Mackay…..ya should if ya haven’t Mr S…..good


Answered by Steven L. Goff months ago


++++++++++++++++++++++++++++++


What Does Quant Fund Mean? A managed investment fund that selects securities or bonds based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure “quant shop” the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use human judgment in addition to a quantitative model


    

  • Read more: http://www.investopedia.com/terms/q/quantfund.asp#ixzz1djxJVu9Z
    • 












Another ‘Cold War’ with Russia….might be in the literal sense this time around!

















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If we fought another ‘Cold War’ with Russia, it might be cold in the literal sense this time around.  (I might as easily have used the term “participated” because that is really all we did in the first one.) This new cold war would be waged for the natural resource reserves (OIL mostly) under the Arctic ice that Russia claims to be theirs  It’s surely not ours, though we might have to back Canada militarily if this evolves.


 


In August 2007, a Russian submarine, with a mechanical arm, planted a specially made rust-proof titanium flagpole, complete with Russian flag, in the Arctic seabed at a depth of 13,980 feet. There isn’t as much ice up there these days as you’d think, by the way. There is little left since ice-breaker vessels have been breaking it up for the passage of oil tankers for a while now. Even as far back as Standard Oil, decades ago, companies have been trying relentlessly to clear the Northwest Passage for oil shipping.  All the while, they were warming and changing ocean currents unintentionally. (That is a story for another time, however.)  Don’t get me wrong.  I am not taking you down the radical environmentalist, tree-hugger road here. Personally, I would drill an oil well through a polar bear’s head if it would get me $2 gal gasoline for life. I will biuld them an ice-palace sub-zero zoo somewhere with the money we will save.


 


We have problems coming with Russia. It is festering on a few different fronts. There are Iran issues (see note below) that involve them, missile shield issues, the fact that they have their interjected themselves into the European debt crisis, land disputes that involve the future energy plans of many countries. Putin is about to take the helm again in Russia as its ‘decider’. His reputation does precede him. I am a student of Putin and his life. While I am not an expert on him, I can say I know just about everything about this, except where the bodies are buried. He is brilliant and cunning and has the heart of a lion. I personally live my life by the Latin saying: “nihil timendum est,” which translates as “fear nothing,” but this man eats that for breakfast as a shake. He even once said he would “one day bring the USA to its knees….without even firing a single shot or missile”.  As much as I admire this man and how ‘bad ass’ I think he is in a lot of ways, that he continues to hold power concerns me greatly going forward, as I think it should concern every American.


 


As an investor in US markets however, I am as excited as a child on Christmas Eve night.  If events unfold in the right way, these problems with Russia could be a boon to our economy.


*If the USA is going to impose sanctions on Iran and stop doing business with anyone who does business with Iran. And shut off USA markets to those buying from Iran. Does that mean they are going to STOP selling China goods here in the USA? China is a HUGE petro-chem buyer from IRAN. Unlesssssssssssss China gets a pass. And in that case….this sanction is “selective commerce”…..almost like selective prosecution….yes?


You smell that your? sniff sniff sniff

Smells like a Trade War cooking on the stove. An intentional one at that.


I say get long MADE IN THE USA………the trade to come could knock your socks off! > I mean literally…the ones made in CHINA on your feet right now! (look down at them)


I once wrote a thesis on how I suspect Putin could try to hurt the US’s economic stability (without a shot or missile). He might try to play the role of ‘savior’ to the European Union and the Euro by announcing Russia’s intention to enter the EU and adopt the Euro.  Such a move could save the EU and Euro if a super-crisis develops over there.  Even a mere whisper or implication of Russia’s stepping in would have the desired effect, sending the markets whipsawing and just going crazy. This could potentially send the US Dollar crashing (or at least running around with its head cut off for a bit). Putin can move markets with words and actions like no other.  It could get real crazy, real quick if he starts talking some more about this kind of intervention.


 


Putin is also fortifying and revamping his military and he has plenty of money to do it.  He needs to compensate for loss of revs of recently fallen Middle east nations. Right now Russia is in a position similar to the one the US was in during the Cold War era when we used spending tactics to try to bankrupt them. I am a great student of ‘social cyclicality’ and how great societies switch places in the course of the evolution of the world. It has happened many times before. I find it ironic that we seem to be heading toward socialism while Russia is now living life high on the capitalist hog so to speak. I am a child of the 1980s,  back when it was preached in schools that all Communism and Socialism was the axis of evil, period. That wasn’t very long ago










 








Notes:


Canadian foreign policy and the law of the sea


By Barbara Johnson, Mark W. Zacher


Barbara Johnson, Mark W. Zacher – 1977 – Law – 387 pages


“In 1968 vast quantities of oil and gas were discovered at Prudhoe Bay in Alaska. … the Humble Oil Company, a subsidiary of Standard Oil Company of New … send a large oil tanker, to be specially modified into an ice–breaking vessel to clear the North West Passage for oil shipping from the North Slope.”


========


http://www.cnn.com/2007/WORLD/europe/08/02/arctic.sub.reut/index.html


Russia plants flag on Arctic floor


==============


Putin Pumps Over $9B Into Shipbuilding for Nuclear Submarines


Friday, November 11, 2011


Prime minister of Russia, Vladimir Putin, has announced plans for the country to build five nuclear submarines in a massive $280 billion rubles (US$9.28 billion) shipbuilding and maintenance order for the Russian Navy.


In all, seven contracts were signed by the Defense Ministry and United Shipbuilding at the Sevmash shipyard in Severodvinsk .  Among these contracts were orders for five Yasen and Borei class strategic nuclear submarines.  The agreements will serve as some of the final requirements set by the Defense Ministry in 2011 for the Russia’s military revamp.


Putin, who is seeking to be elected for his third term next year, was quoted by Reuters saying that he is sure the realization of the unprecedented program in terms of both goals and financial resources will enable his nation to carry out a large scale modernization of the Naval fleet.


He added that all of these vessels will be built by Russian companies and that the Russian shipbuilding industry must be prepared for serial production of advanced hardware and weapons that are completely compliant with standards and tasks that the Navy must fulfill.


The Moscow Times said that the submarines are to be built at a Sevmash shipyard atop of an Orthodox monastery.  The precise value of each contract has not been disclosed, however it has been estimated that one Yasen submarine costs around US$1.3 billion.


Since 1993, the Borei and Yasen nuclear submarine programs in Russia have been strangled by delays and controversies with late delivery times, questionable technologies, and a sharp drop in military spending in the ‘90s.


The nuclear submarine contracts are only one installment of the US$653 billion modernization plan to be completed by 2020.


====================


November 12, 2011 3:40 pm


“In his first meeting with foreign journalists and academics since announcing he

would stand again for the Russian presidency next March, Mr Putin on Friday

night dismissed the risk of “catastrophic” inflation as a result of ECB

intervention. But he warned that the combined forces of the IMF and the European

financial stability facility would not be sufficient for a task that could

require “1.5 trillion euros”.


HE IS GETTING READY….this is laid ground work coming now.


Steve Goff says : “listen to the whispers…this way the screams are not so

shocking”


http://www.ft.com/intl/cms/s/a512dc20-0cb6-11e1-a45b-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fa512dc20-0cb6-11e1-a45b-00144feabdc0.html&_i_referer=#axzz1dXKFghb9




=================


Medvedev: Russia may target missile defense sites


APAP – 17 hrs ago


 


Steve Goff Keep pissing Russia off with being where you dont belong USA! Why cant the USA worry more about itself and less about everyone else in the world? They are telling the USA. You set them missile defense sites up, Russia is GOING TO BOMB THEM! It is THAT SIMPLE


November 23, 2011


===========================


Vladimir Putin accuses Clinton of inciting protests in Russia
Putin says Hillary Rodham Clinton's criticism of Russian parliamentary elections emboldened protesters. The incident may further damage already strained US-Russia ties.
He might be looking for some 'payback' and announce intentions for some type of intervention into the EU crisis and send currency markets whipsawing around and the US Dollar doing belly flop! he could back the EUR with his vast natural resources and send it flying.




http://www.latimes.com/news/nationworld/world/la-fg-us-russia-20111209,0,4639349.story
 


Vladimir Putin accuses Clinton of inciting protests in Russia


By Paul Richter and Sergei L. Loiko, Los Angeles Times


December 9, 2011


=======================


Quote of the day > RUSSIA’S unfolding political crisis has descended into farce after President Dmitry Medvedev appeared to take to Twitter to accuse opposition activists of being “stupid sheep getting fucked in the mouth”.


SHEEP…lol lol lol


 


 


 


 











Still not EVERYBODY has washer and dryer in home = Mac-Gray Corp $TUC w/divy












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•InPlay: Mac-Gray Corp announced that its Board unanimously rejected anunsolicited written proposal from KP Capital to acquire TUC for(((( $17.50 in cash per share bid))))) 


THEY REJECTED OFFER!


IT MEANS NOTHING TO THE MARKET. This is no PR stunt either. They  even filed SEC

disclosure documents on it.


 


old post below


“Besides the multi family residential REITs. That have seen great runs up to this

point. I’ve been digging around for plays that will benefit when the foreclosure

moratoriums due end in America, and the rental market really seeing an influx of

seekers. And the landlords are really going to be in the “cat bird seat” to pick

the cream of the crop of them potential tenants, due to that overflow/supply.

And nowadays you can even rent an apartment(especially one operated by a major

corporation property manager firm) w/out passing a credit check. And if you

recently were foreclosed on. You have bad credit and will be passed over for

someone better. If that person (or whole family) has no other family to shack up

with. They’re going to find themselves on the street. Not even to mention the

extreme moral hazard (and contagion of NOT PAYING) it posses, letting theses

moratoriums go on, only prolongs the inevitable and falsely foments housing

numbers/inventory’s. People dont want to see other people living free on a

bail/out or moratorium, while they are getting up to go to work everyday and are

doing what they have to pay the bills. That is becoming a big issue in America! = BIG moral hazard contagion!


Anywayyyyyyy….this company down below

Mac-Gray Corp (TUC)

*From $10 to $16 since July..its been a mover!


I was reading their last 10Q and some things stuck out that really make this

company and it earnings a good proxy/barometer of that rental and multi family

residential market. They go into the commercial real estate lease aspect of

earnings on all them properties below. To stifled small bussiness lending

hurting them. And some other key areas of interest. They also started paying a

div as off this year! This is an interesting story w/ many variables that will

determine the stock story. But I am watching it. I also havent found out if they

paying any or some of overhead at all or some laundromats (water/gas/electric)


*We generate laundry facilities management revenue primarily through long-term

leases with property owners or property management companies granting us the

exclusive right to install and maintain laundry equipment in common area laundry

rooms within their properties, in exchange for a negotiated portion of the

revenue we collect.


Manages approximately 88,000 laundry rooms located in 43 states and the District

of Columbia. Mac-Gray also sells and services commercial laundry equipment to

retail laundromats and other customers through its Product Sales division.


http://www.macgray.com/laundry_services/multi-housing/


http://biz.yahoo.com/e/110314/tuc10-k.html


Asked by Steven L. Goff months ago – 4 answers – 397 views


http://stockpickr.com/members/view/answers/75004/

Stock should be up a couple bucks. Goes to show there is no investors in this

market. The computers reading algorithms cant read PR’s and SEC documents. 2 out

of every three trades today are BOT’s.


 


I wrote this below almost two years ago!

====

On CNBC today during Stop trading….Jim Cramer said something

really quick and hardly audible. He said one of the BIG stories to come is going

to be in the residential REIT’s in near future.


I will add to that by saying > yes…especially the residential multifamily

apartment ones.

Cuase when these foreclosure moratoriums end….the rental market is going to

explode up words. And since there is a ton of folks smarter than myself.

They’re positioning themselves for it now or already have.

Also look at this read I attached Jim.


* Growing numbers of formerly middle class – now newly poor – families drive up

demand at food shelters, rescue mission


“That sudden demand for housing has made southern Ocean County’s rental market

“unbelievably tight,” Giannascoli said. “Landlords can really name their terms.”


http://www.pressofatlanticcity.com/news/press/ocean/article_3c75c738-ea19-11df-9

015-001cc4c03286.html

Asked by π/Steven L Goff 1 month ago – 2 answers – 186 views

http://www.stockpickr.com/members/view/answers/73793/


 











To Talk Titanium…One must bow down and pay homage to Harold Simmons $TIE $KRO $NL $VHI












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Originally writen : Apr 17, 2011 @ 4:25


First off, to even begin to talk Titanium and it’s businesses. One must bow down and pay homage to Harold Simmons. A controversial man over the years in the business and the political affiliations arena of the worlds richest. Him and his family are very generous and philanthropic. But this man did not get to where he is today and not step on some throats (I love it) along the way. His business genius is almost unparalleled in American industry, and American business law. Whose banking expertise helped him develop the acquisition concept known as the “leveraged buyout” (LBO) to acquire various corporations,  “all debt and no equity” philosophy of capital management (ironic considering the debt ratios of his holdings now are very low)  Also genius with regards to how over the years he structured his empire, via their holdings of each other and the Contran Corporation < (The BIG Dog) of them all BTW. For advantageous tax reasons and to KEEP SOME USA JOBS HERE. Simmons conducted a widely publicized but unsuccessful takeover attempt on the Lockheed Corporation , after having gradually acquired almost 20 per cent of its stock. Some say to bust the unions and liquidate the pension fund (Isnt that what Gordon Gekko / Wall Street tried w/ BluStar Airlines?…lol)


Just check out the last SEC disclosure Exhibit 99 filing of this company.


(note: Poor yourself a drink before doing so…you will need it)


SEC 99..poor that drink


Mr.Simmons is 80 yrs old right now. Contran is operated by Mr. Steven L. Watson, who is 60+yrs old. Glenn Simmons, Harrods brother is also well in years.


What Contran Corp owns:


Titanium Metals Corporation (TIE). $18

Kronos Worldwide Inc. (KRO) $57


Valhi, Inc. (VHI) $29


CompX International Inc. (CIX) $14.75

NL Industries Inc. (NL) $14.66

Keystone Consolidated Industries, Inc. (KYCN.OB) $6.36/(KYCN.PK)$7.50


I think two different listens for Keystone is for bankruptcy proceedings here…an not sure just yet.


He, or Contran I should say, also might be getting ready to consolidate everything under one company now and go public with it. Keystone Consolidated Industries, Inc. (KYCN.OB) might be that. Contran just filed purchase stake on them. It’s a thought. And w/ the actions of the past,  anything is plausible here.


Let me tell ya what I THINK he did recently. And this was slick. I am also not sure just yet. But the timeframe seems to be right. I will know when I check these IRS fillings Monday. I say this because a new trust for his grandchildren per some recent SEC fillings have been stoked with stocks of late. Ya see, that’s the edge I look for. It is like being a bookmaker, and know if the quarterback took his girlfriend for an abortion the day before. Or if some point guard owes his cocaine dealer $2500. EVERYTHING is relevant is the gist. And in todays times with the harnessed collective of the web. Some say it causes a very grey area at the least, with regards to what is insider info or not. That is one of the pitfalls before leap upward in the harnesses collective conscience to Internet has brought to our species. The web is a big puzzle of money, ya just have to know where the pieces go and where to look for them pieces.


In this particular case. I wanna know where Mr Simmons thinks his grandchildren best interest and stability lay going forward.


Generation-Skipping Transfer Tax

March 16, 2011

Form 706 Now Available on IRS Website

As of yesterday 3-15-2011, Form 706 is now available on the IRS website.


•Form 706-GS(D):  Generation-Skipping Transfer Tax Return for 2010 Distributions

•Form 706-GS(T):  Generation-Skipping Transfer Tax Return for 2010 Terminations


In 1986, Congress enacted the federal Generation-Skipping Transfer Tax (GST Tax)


Generation-Skipping Transfer Tax Opportunity Expiring on Dec. 31, 2010


The recently enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) made several changes to the estate, gift, and generation-skipping transfer (GST) tax laws. The primary modifications were a retroactive increase in the lifetime exclusion of $5 million for estate and gift tax purposes and a reduction of the tax rate on the excess to 35 percent.


Less publicized were changes to the GST tax, which was also reinstated retroactively to Jan. 1, 2010, with a $5 million exemption. However, transfers made during 2010 aren’t subject to tax. The GST tax is a separate tax assessed on estate or gift transfers to grandchildren (or other “skip persons” – unrelated individuals who are at least two generations younger than the grantor) where the property is not subject to either estate or gift tax for the donor’s child.


Therefore, individuals who want to transfer assets to grandchildren or to other skip people may do so without incurring GST tax and also without using any of the grantor’s otherwise-available GST exemption, but only if the transfer is completed during 2010.


There are two primary ways to utilize this 2010 benefit and avoid any GST tax: first, outright gifts either directly to grandchildren or trusts exclusively for them, although the gift would be subject to the regular 35 percent gift tax (for example, if cumulative lifetime gifts exceed $1 million in 2010); second, transfers to grandchildren from previously existing trusts prior to Dec. 31, 2010


http://www.groco.com/readingroom/estate_grandchildren.aspx

http://www.crowehorwath.com/insights/tax-alert/geneartion-skipping-transfer-tax.aspx


————

Industrial and emerging markets sectors – With its unique and desirable physical properties, titanium can be used in a number of other end-use markets. Established industrial uses for titanium include chemical plants, power plants, desalination plants and pollution control equipment. Rapid growth of the Chinese and other Southeast Asian economies has brought unprecedented demand for titanium-intensive industrial equipment.

*TIMET (TIE) has an ownership interest in a joint venture, XI’AN BAOTIMET VALINOX TUBES CO. LTD. (BAOTIMET), which produces welded titanium tubing in Xi’an, China.

Titanium is accepted for many emerging market applications, including transportation, energy (including oil and gas) and architecture. Although titanium is often more expensive than other competing metals, over the entire life cycle of the application, we believe titanium is a better value alternative due to its durability, longevity and overall environmental impact. In many cases customers also find the physical properties of titanium to be attractive from the standpoint of weight, performance, design alternatives and other factors. The oil and gas market, a relatively new, potentially large growth area, utilizes titanium in certain down-hole casing, critical riser components, tapered stress joints, fire suppression water pump systems and saltwater-cooling systems. Additionally, as offshore development of new oil and gas fields moves into the ultra deep-water depths and as geothermal energy production expands, market demand for titanium’s light-weight, high-strength and corrosion-resistance properties is creating potential new growth opportunities. We have resources dedicated to the research and development of alloys and production processes to promote the expansion of titanium use in this market and in other non-aerospace applications.


Although we estimate emerging market demand presently represents less than 5% of the total industry demand for titanium mill products, we believe the emerging market sector offers many opportunities, and we have ongoing initiatives to actively pursue and expand our presence in these markets


Distribution. We sell our products through our own sales force based in the U.S. and Europe and through independent agents and distributors worldwide. We also operate eight service centers (five in the U.S. and three in Europe), which we use to sell our products on a just-in-time basis.

I am going to pitch Metals USA Holdings (MUSA)

And US Ecology (ECOL) to clean up all their mess…….to Contaran


 


 











Best thing Apple $AAPL can do right now, is buy Visa Inc. $V

















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Originally written : Tuesday, January 18, 2011 at 9:17pm


 In light of the recent news in Apple (AAPL), that  being Steve Jobs’s health issues and the future dynamic of the company after his departure. Below is a thesis of why now more than ever is the time for Apple to make a “cross market meshing if not societal morphing”, acquisition so to speak. One with a pretty visible revenue stream to come. One that is in the “societal sweet spot” going forward. Apple should BUY Visa Inc (V) on that premise!


If Apple buys Visa, it is foot in door to CHINA. Get in there where ya can. Daily transactions for a Billion PLUS people. I’ll take it!


When I think of Apples success over the last decade. I am reminded of what I’ve studied about RCA (Radio Corporation of America) And the societal and market implementations and implications it had in its time. A time that was in a technological infancy of the great things to come. Most at the time were saying “it (RCA) was going to take over the WORLD!”  It was in existence from 1919 to 1986. In 1930, the U.S. Department of Justice filed  antitrust charges against RCA, General Electric and Westinghouse (That is so crazy considering the US Navy and GE set up and spun off RCA many years earlier) As a result, GE and Westinghouse had to give up their ownership interests in RCA. RCA was allowed to keep the radio factories, and GE and Westinghouse were allowed to compete in that business only after 30 months passed. RCA) was Wall Street’s and Main Streets “best gal” high-flying tech-stock of the Roaring 1920s. It made many investors and speculators millionaires.  It was in essence a monopoly on “wireless communications for the masses.”  And not a serious competitor was anywhere in sight at the time.  


 In the five years before the Crash of 1929, RCA stock soared from about $11 to its September 1929 high of $114 (adjusted for the 5:1 stock split in Feb of that fatal year). That’s an appreciation of 935% in only five years! That equates to an annual compound return of a monumental 60%! Also it never paid a cash dividend. Market players didn’t care, because the stock value increased almost on a daily basis. At its 1929 peak RCA boasted an astronomical PE ratio of 72:1. <span>From 1929 and the stocks top of $114, over the next three years the stock price dropped to less than $3 (-97%) per share in 1932. 


Apple in my opinion needs to start making smart acquisitions that will replace a plateau in R&D that is coming. And for sure a plateau of it’s market and social life altering and market impactful release into society/world.  And margin contraction issues to come. And poss Anti Trust issues as well. I also feel it’s the same reasons they should also buy a flash component. Or a major school textbook publisher for it’s already in place licensing and “jumped hurdles” into the future education of the worlds children (lets start in USA) for schooling being done at home via the web and your device. And w/ VISA it is alllllllllllll about the cashless society going forward. BUT NOW IS THE TIME TO STRIKE/make the move. It’s good for the broad market and our USA economy as well. Timing is everything….for Apple is now treading water! And that is dangerous for shareholders who are not getting a div at least. Maybe a hologram related company also. Maybe even a cellular provider or satellite company. Take that out of future margin contraction equation. If Apple were to buy Visa Inc. It would be like a EBay owning a Pay Pal.


And can Apple afford to do this? Damnnnn skippy they can afford it! A little cash and a little stock. And a stock split in


AAPL the same day they announce deal to merge/acquire VISA. Apple then can take a shot at becoming the worlds first TRILLION DOLLAR market cap company. I am telling ya….it’s the “deal of the deals” for Apple and it’s shareholders right now. It also stifles anti trust talk cause they will be more so than ever to big to mess with!


And before I go on, I wanna  add this: To most around the Globe (and maybe beyond someday…ya really never know with explosive exponential technology growth) > The Visa brand/ logo equates to universal payment acceptance!


The cashless society thesis is coming on strong. That can not be denied or argued. It is for a multitude or reasons this will be an imminent action and transition by our Federal Government. Me personally feel that the orderly functionality of society depends on it. By taking CASH/paper currency out of American and World societies circulation/and people’s daily use. All transactions would be done with a Debit/ID card or via your HAND HELD DEVICE!


Microsoft Surface is exciting here with restaurant table tops and cashless payment and food ordering and social interaction. While say dining on a date and exchanging pics on surface of virtual table top. You can order right from the menu on the table (without even seeing a waiter/waitress…bye bye a couple 100k more jobs)  By going to a cashless society would  generate a “digital paper trail” per se. To have a FLAT TAX, Consumption TAX, Usage FEE, (or whatever ya terminology ya wanna” lipstick” it with) levied on the goods & services accordingly and automatically. One that is not hindered by political boundaries (ie the different States of the nation and countries of the world)  Not to mention the micro managing and real time demand statics/data that could come from this move (I wrote a peice about doing away w/ The National Census on the same basis). And the necessary instantaneous adjustments demographically in needed.


This will in essence be the Coup de Grace’ of the CASH/Underground Economy. These are the individuals and businesses that operate and live their lives on a cash basis, to avoid paying any taxes at all. At first we will see an upsurge/uprise of the barter system for those who will continue to fight it so to speak.


By taking CASH out of society and going to a debit card/device paying culture, would stuff the IRS coffers like we’ve never seen or thought possible!


There’s a reason why the singer Madonna has had hit songs in the last three decades. Because she constantly adapts and changes herself and her music to suit the times and the masses.


“Nothing great was ever achieved by someone NOT taking a risk along the way”


“Our statements must be judged by candid readers who are intelligent enough to lay our words alongside life as they are able to observe it. If our word and their observation agree, the case is made. It is perfectly silly to begin to damn us before it has been shown that our statements are baseless or reckless.”~ Henry Ford


==============


The iPhone as VISA card – Apple 2.0 – Fortune Tech

Not content to take your money, now Apple reportedly wants to be your money!

tech.fortune.cnn.com


Posted by Philip Elmer-DeWitt

January 25, 2011 7:08 AM


The Apple (AAPL) buzz Tuesday morning was all about a Bloomberg report — based

apparently on a single source — that the company is following Google’s (GOOG)

lead and building NFC (near-field communication) technology into its

next-generation iPhones and iPads.


“Apple plans to take NFC Mainstream,” begins MG Siegler’s headine in TechCrunch.

“Perhaps The Greatest Trick They’ve Ever Pulled?”


If Apple can successfully tie NFC technology — which lets you exchange money

and data wirelessly from up to 4 inches away — to the 160 million iTunes

accounts the company has on file, it could be huge, Siegler argues. By revising

iTunes to allow accounts to be credited or dinged directly, Apple could avoid

all those credit card fees and maybe get its hands on a slice of the $6.2

trillion Americans spend each year on goods and services.


“It could change everything,” Siegler writes. “It could transform Apple from the

biggest technology company in the world, to the biggest company in the world,

period. By far.”


We’re not entirely convinced.


We’ve been carrying a NFC-chip-equipped VISA card in our wallet for years. We tried to use it a few times to buy stuff at a discount pharmacy in New York City. One time it worked. The other times the check-out clerk rolled her eyes and asked me to just swipe the damn card.


Click here for a list of the 14 handsets already equipped with NFC technology

and the 33 countries currently conducting NFC trials.

•Google to power your mobile wallet


http://tech.fortune.cnn.com/2011/01/25/the-iphone-as-visa-card/











CVR PARTNERS LP $UAN – Domestically safe supplied fertilizer maker IPO












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Originally Published on: Apr 9, 2011 @ 5:16am


Lets get right to the point shall we — It’s a winner! It also no-doubt became HUGE M&A target today when it IPO’d from a few different monopolistic behemoths that don’t like anybody cutting in on their market share…..Momma Mosaic $MOS please come get me..he he


 


$UAN  is going to pay you a quarterly distribution/CASH. I anticipate it being a monthly distribution at some point. UAN is a spin-off of  CVR Energy Inc  $CVI. Who BTW was one of my best speculative picks ever “cough cough cough”.  I was with em since $3.15 avg in November 2008.  On 52wk alone +175% / all time low of $2.15 on 10-19-2008 +900%. They reported stellar earnings along the way Q after Q. Even a few closures due to Biblical Flooding. They paid down debt. They did everything right IMO and then some. Also cap ex via building additional storage in Cushing OK.  Secure supply deals w/ Vitol Group and others.   $CVI  IPO’d @ $21 went to $30 in a few and took swan cliffdive from there (I wonder if that will happen here w/$UAN ?) Some say at the time with $GS Goldman SHORTING them all they down, during  Jim Cramers fame — “Hedge Funds Gone Wild” , and amidst also the financial crisis of 2008. When $GS was selling to raise cash like rest.


As to what to do here with $CVI @$23 ? It depends where you are in your investment or whether to want to enter here now and take the shares of the long-term holders. Who will more than likely sell you some here,  and go buy some $UAN. That is why a covered call selling strategy works well here, if have substantial profits in $CVI ,  yet want to be there to capture a possible dividend program of CVI to come. Or a take out bid like discussed above. Dont write calls on entire position. But take them proceeds from selling call options (out of money a buck or two) and buy $UAN stake. Will be interesting and a telling in next weeks time in the CVI option chains. It comes down to evaluation,assessing, assigning their P/E in sector now. Right now P/E 143 sector avg is 18 . High because earnings are sometimes suppressed by a number of charges …that might dramatically lower their (NI) Net Income.

resulting is a very high TEMP P/E for a Q or longer.




They report earnings on May 3, 2011




The proceeds from the stake sold in IPO about $300 mil so they now have $500mil total. That is about equal to their debt. What they do exactly I dont know. Regardless it is a nice position for them to be in.  Personally, I would like to leave the debt or nix a little. And spend cap ex on more phenomenal growth than they have to this point…..possible?


Future crack spreads? who knows right now?  I dont!




It is tough call here @$23 to commit more capital. Until I see how it reacts and how and what is reported in next earings. But if you are here like some you have options (literaly…he he)>mxborne Re: “bought on dip other day @2.92..     11-Dec-08 01:35 pm     “










“good….you are going to make some money!!!!! nice buying under $3″~Steve Goff

















 CVR Energy estimates that the tons sold of ammonia of the Partnership during the quarter ended March 31, 2011 will be approximately 23,500 to 26,500 and the tons sold of UAN during the quarter ended March 31, 2011 will be approximately 169,500 to 175,500. During the quarter ended March 31, 2010, the Partnership sold approximately 31,200 tons of ammonia and 155,800 tons of UAN.






What made them appealing to me at the time was obviously the break up value to come if ever unlocked (here today in pps $23). But what appealed to me the most back then, when most in USA were saying at time — “we’re going to implode as a nation,  if we dont  pass TARP asap,  no money in ATM’s…lol”  I was seeking stock plays geared towards my protectionist/isolationist society and USA market thesis to come. Well $CVI fit that to a “T” at time, and still does today. And now $UAN. I also add, I dont think they will build any new refineries in the USA. basically what we have is what we have. That makes $CVI and others like Delek USA Holdings $DK very desirable to say a monopolistic behemoth looking to eat! For the already JUMPED  “EPA and NIMBY hurdles”





With the government actions that have taken place since I first started compiling portfolio of such picks in 2008. It seems that thesis comes more and more to fruition everyday in USA. And the uprisings around the globe only adding validity also. Also part of this trade thesis/fund was strategy if market behemoth were to fall for any reason ie  Agrium, CF , Potash Corp,Mosaic, and Yara.  Well $CVI was contingency for such.  If you can’t see or comprehend that we are reverting to what Russia once was in essence not too long ago…..then you’ve been asleep throughout defining events. Dont be the lest bit surprised if you one day hear the term “sharecropping as a town”  floating about.  At the time I found them they were domestically secure fed gasoline refiner, who had also a very profitable fertilizer segment. Diverse and unique business plan to say the least in sector. And the stock preformed exceptionally well from there.






 It $UAN is LP Limited Partnership. Means a flow throw entity. Gives most cash/revs back to shareholders monthly. Objective is to maximize quarterly distributions to theunitholders by operating the  nitrogen fertilizer facility in an efficient manner, maximizing production time and growing profitably within the nitrogen fertilizer industry and it’s pricing power.




from S-1




*Within 45 days after the end of each quarter, beginning with the quarter ending June 30, 2011, we expect to make cash distributions to unitholders of record on the applicable record date.




Pay Out All of the Available Cash We Generate Each Quarter.  Our strategy is to pay out all of the available cash we generate each quarter. We expect that holders of our common units will receive a greater percentage of our operating cash flow when compared to our publicly traded corporate competitors across the broader fertilizer sector, such as Agrium, CF Industries, Potash Corporation and Yara. These companies have provided an average dividend yield of 0.1%, 0.4%, 0.3% and 1.6%, respectively, as of February 28, 2011, compared to our expected distribution yield of     % (calculated by dividing our forecasted distribution for the twelve months ending March 31, 2012 of $      per common unit by the mid-point of the price range on the cover page of this prospectus). The board of directors of our general partner will adopt a policy under which we will distribute all of the available cash we generate each quarter, as described in “Our Cash Distribution Policy and Restrictions On Distributions” on page 53. We do not intend to maintain excess distribution coverage for the purpose of maintaining stability or  growth in our quarterly distributions or Otherwise to reserve cash for future distributions. Unlike many publicly traded partnerships that have economic general partner interests and incentive distribution rights that entitle the general partner to receive disproportionate percentages of cash distributions as distributions increase (often up to 50%), our general partner will have a non-economic interest and no incentive distribution rights, and will therefore not be entitled to receive cash distributions. Our common unitholders will receive 100% of our cash distributions.






Highly Reliable Pet Coke Gasification Fertilizer Plant with Low Capital Requirements.  Our nitrogen fertilizer plant was completed in 2000 and, based on data supplied by Blue Johnson, is the newest nitrogen fertilizer plant built in North America. Prior to our plant’s construction in 2000, the last ammonia plant built in the United States was constructed in 1977. Our nitrogen fertilizer facility was built with the dual objectives of being low cost and reliable. Our facility has low maintenance costs, with maintenance capital expenditures ranging between approximately $3 million and $9 million per year from 2007 through 2010. We have configured the plant to have a dual-train gasifier complex to provide redundancy and improve our reliability. In 2010, our gasifier had an on-stream factor, which is defined as the total number of hours operated divided by the total number of hours in the reporting period, in excess of 97% excluding the impact of downtime associated with the Linde air separation outage, the rupture of a high-pressure UAN vessel and the major scheduled turnaround.






Nitrogen, phosphate and potassium are the three essential nutrients plants need to grow for which there are no substitutes. Nitrogen is the primary determinant of crop yield. Nutrients are depleted in soil over time and therefore must be replenished through fertilizer use. Nitrogen is the most quickly depleted nutrient and so must be replenished every year, whereas phosphate and potassium can be retained in soil for up to three years.




Global demand for fertilizers is driven primarily by population growth, dietary changes in the developing world and increased consumption of bio-fuels. According to the International Fertilizer Industry Association, or IFA, from 1972 to 2010, global fertilizer demand grew 2.1% annually. Fertilizer use is projected to increase by 45% between 2005 and 2030 to meet global food demand, according to a study funded by the Food and Agriculture Organization of the United Nations. Currently, the developed world uses fertilizer more intensively than the developing world, but sustained economic growth in emerging markets is increasing food demand and fertilizer use.






As an example, China’s grain production increased 31% between September 2001 and September 2010, but still failed to keep pace with increases in demand, prompting China to double its grain imports over the same period, according to the United States Department of Agriculture, or USDA.






World grain demand has increased 11% over the last five years leading to a tight grain supply environment and significant increases in grain prices, which is highly supportive of fertilizer prices. During the last five years, corn prices in Illinois have averaged $3.80 per bushel, an increase of 80% above the average price of $2.12 per bushel during the preceding five years. Recently, this trend has continued as U.S. 30-day corn and wheat futures increased 104% and 74%, respectively, from June 1, 2010 to February 28, 2011. During this same time period, Southern Plains ammonia prices increased 67% from $360 per ton to $603 per ton and corn belt UAN prices increased 41% from $252 per ton to $354 per ton. At existing grain prices and prices implied by futures markets, farmers are expected to generate substantial profits, leading to relatively inelastic demand for fertilizers. Nitrogen fertilizer prices have decoupled from their historical correlation with natural gas prices and are now driven primarily by demand dynamics. Nitrogen fertilizer prices in the U.S. farm belt are typically higher than U.S. Gulf Coast prices because it is costly to transport nitrogen fertilizer.






The United States is the world’s largest exporter of coarse grains, accounting for 46% of world exports and 31% of total world production, according to the USDA. The United States is also the world’s third largest consumer of nitrogen fertilizer and historically the world’s largest importer of nitrogen fertilizer, importing approximately 48% of its nitrogen fertilizer needs. North American producers have a significant and sustainable cost advantage over European producers that export to the U.S. market. Over the last decade, the North American nitrogen fertilizer market has experienced significant consolidation through plant closures and corporate consolidation.




The convenience of UAN fertilizer has led to an 8.5% increase in its consumption from 2000 through 2010 (estimated) on a nitrogen content basis, whereas ammonia fertilizer consumption decreased by 2.4% for the same period, according to data supplied by Blue Johnson. Unlike ammonia and urea, UAN can be applied throughout the growing season and can be applied in tandem with pesticides and fungicides, providing farmers with flexibility and cost savings. UAN is not widely traded globally because it is costly to transport (it is approximately 65% water), therefore there is little risk to U.S. UAN producers of an influx of UAN from foreign imports. As a result of these factors, UAN commands a premium price to urea and ammonia, on a nitrogen equivalent basis.






Fert prices are going nothing but up! It is world food demand and week US Dollar thing. And this company (UAN) has the one of a  and cheapest prices to make it in the country. . The CEO’s of CVI even bought shares $3mils worth and lays right to buy more.


“Ya miss a 100% of the shots ya never take”…statistical fact



http://finance.yahoo.com/q?s=uan&ql=1


====================================


Aditiion to blog 13-Apr-11 06:03 pm  : http://www.secinfo.com/dsvr4.q12ft.htm#1pwe




“Following the consummation of the Offering, CVR Energy’s indirect wholly-owned subsidiary, CRLLC, owns 69.8% of the common units, and members of the public own the remaining 30.2% of the common units.”




“The agreement also addresses the means by which we and CVR Energy obtain natural gas. Currently, natural gas is delivered to both the nitrogen fertilizer plant and the refinery pursuant to a contract between CVR Energy and Atmos Energy Corp. (“Atmos”). Under the feedstock and shared services agreement, we reimburse CVR Energy for natural gas transportation and natural gas supplies purchased on our behalf. At our request, or at the request of CVR Energy, in order to supply us with natural gas directly, both parties will be required to use their commercially reasonable efforts to (i) add us as a party to the current contract with Atmos or reach some other mutually acceptable accommodation with Atmos whereby both we and CVR Energy would each be able to receive, on an individual basis, natural gas transportation service from Atmos on similar terms and conditions as set forth in the current contract, and (ii) purchase natural gas supplies on their own account.””To effectuate the Offering, we, Coffeyville Resources Nitrogen Fertilizers, LLC, our direct wholly-owned subsidiary , CVR GP, LLC, our general partner that is an indirect wholly-owned subsidiary of CVR Energy and CRLLC and Morgan Stanley & Co. Incorporated, Barclays Capital Inc. and Goldman, Sachs & Co., as representatives of the several underwriters named therein , entered into an Underwriting Agreement, dated April 7, 2011 and attached hereto as Exhibit 1.1. Pursuant to the Underwriting Agreement, we sold 22,080,000 common units to the Underwriters (including 2,880,000 common units issued upon the exercise of the Underwriters’ over-allotment option) who resold them to the public.”











Integrity…look it up! Might find pic of Charles Schwab $SCHW….is a BUY!

















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I have already told you many times about the multi-sensational, and  ‘in the cat bird seat’ fundamentals, going forward with Charles Schwab (SCHW). Please read previous post if I have not.


Now for a technical catalyst!


Look at the 1yr chart and the very nice ‘cup’ taking formation. We are making our way up towards the the beginning formation of the handle to come. Now, I am not a technician. Nor do I play one on TV. But I have spotted this before. In Church & Dwight (CHD). It was pre 2:1 split in (CHD) when it was trading 45-50. And then it’s run to $85 before splitting. See old post below.


I suspect in the next few sessions we build that handle. Stock could trade down a bit towards it’s end before moving UP. If all others (brokerages, and the broad market, or finacials in general) are rallying strong and SCHW is down. Then the ‘pop’ will soon follow. It will be noticeable because the market will continue it’s upward trend to retest all time highs.  Thats righttttttt we’re going to S&P 1500. Needless to say I think Chuck is a BUY here @ $12.50 for damnnnn sure!


 


Mr. Fibonacci himself…told me today we are going to S&P 1520-1522 in next 7


months time!


Greece, The Euro, China….doesn’t matter! We’re going there. 100% retest of thetop. It’s just that simple. We’re going to overshoot a bit also….but at least to there in my judgement. The world might look like it is ending. But for whatever reasons come along to take us there (maybe inflationary rise even)


 


You aint nothing in my book, unless you put your name and date to something you are asking others to consider and lay ri$k to!


Steve Goff on 9-30-2011


S&P 1131




Asked by Steven L. Goff  – 2 answers – 190 views





=======================


Schwabs 1yr chart


 




“Components of the Cup and Handle


There are several components of the cup and handle that should be noted in order to evaluate the potential trading signal. First, it’s important that there is an upward trend before the formation of the cup and handle. In general, the larger the prior trend is, the lower the potential for a large breakout after the pattern has been completed. The reason being that a lot of the run-up in the security happened prior to the formation of the cup, again weakening the size of the potential upward move


A cup-and-handle pattern resembles the shape of a tea cup on a chart. This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same.


The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend.”


————-


old Stockpickr post


I’m pondering whether to commit more $ to Church & Dwight Co. Inc. (CHD) @ or


around $56-57? In anticipation of a move up to the next level in the coming


weeks. One based on the underlying fundamentals in the company and it’s stock


being strong within the space. Second, I give them props for ‘staying strong all


along’ so to speak. In this non stop market drama and fiasco. Lastly, what seems to be a “cup n handle” formation in


the charts. That’s indicative of a move to the upside to come. Maybe to the


$65-68 range some 17-19%. Stock close Fri July 17 2009 @ 56.19. I would’ve liked


to see a little more roundness on the formation of the bottom of the cup to be


honest, but I think it’s there or presents itself enough (this crap ain’t a


precise science ya know 😉


steve goff


7-18-09


http://stockpickr.com/view/answers/73884/


===================


Church & Dwight Co. Inc. (CHD) @ $68…one to watch in the coming weeks.


Building yet another ‘cup n handle’ formation in the charts and the fundies just look sensational… for this Domestic Consumer Staple BEAST!…and the


manufacturer of Trojan Brand Condoms.




Asked by Steven L. Goff  months ago – 2 answers – 266 views




http://www.stockpickr.com/view/answers/74181/


====================


Re:  (CHD) Chart is showing a  Cup n Handle formation!    18-Jul-09 12:53 pm    










this stock is getting ready to break out…..am I alone? ~steve goff










18-Jul-09 12:53 pm


http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=3548&tid=928&mid=930&tof=-1&rt=2&frt=2&off=1


====================


16-Oct-11 07:38 pm


I’m expecting upside surprise from Chuck!    16-Oct-11 07:38 pm    












Schwab Corps (SCHW) earnings on Monday? Dare I even attempt to calculate


estimated analysis??? he he off course > Along the lines of $0.25-.29 per share


for the past quarter. This surprise to most, will stem from a few different market and societal catalyst that are currently taken place and shape.*The Good-Guy Bank/Bad-Guy Bank, in the ‘Occupy Wall Street Campaign’ (What are they calling themselves these days?)During the whole sub-prime lending fiasco, the CDS’s and CDO’s cesspool, the mortgage lender and housing market meltdown, Major insurers collapses, that have occurred since 2007. Schwab is one names you have not seen in the headlines.Orrrrr ever standing in line for some TARP from ‘Hammering Hank Paulson’ at the time. Because you participated in casino games. That is very important to Chuck Schwab being THE industry ‘poster child’ for asset management integrity and ‘prudent man rule’ business practices and investments. Not a DIME of TARP taken here. It’s even tough to get Schwab to lend you stock to short (now that is tight run ship) They were not even made to do the en-unison ‘perp walk’ to the FED Discount Borrowing window by Paulson. Like he made some do who did not even really need TARP assistance. Goldman Sachs even had to become a ‘bank holding company’ in order to tap the FED window then. We are now reading headlines about that change hurting Goldman. Goldman Sachs should BUY Charles Schwab out for a few reasons.That is one of them for sure. Everyone and there mother knows a majority of


Chucks investments and assets are tied to low rates right now. Eventually that


tide will turn hard.The inevitable consolidation of the retail brokerage market is coming to a head so to speak. Only the strong are left and are attracting the folks (customers) who fled others for either integral issues or poor asset management and performance, or exorbitant management fee’s.*Chucks recent and accretive to earnings acquisitions.Especially into the retail options market. the bought OptionsExpress in mid March for about $1 billion. Also last August 2010 bought Windward Investment


Management for $140 million. And today With more and more ‘Average Joe Investor  using the options market to both hedge core long holdings and to participate in volatile stock movements with out having to buy long or short stock, thus deadening your trading/operating capital. To writing and selling covered calls


on positions.


The financial information playing field is now mostly level for investors, via


the evolution of the Internet and the instantaneous information news cycle of


the modern world we now live and trade in. A ‘ticker-tape parade today’ would


kinda hurt from all the iPhones hitting you on the head….lol! Serious


investors are smarter and more well equipped today than ever. And if you just


want to let someone else make your investments and growth your wealth while


mitigating foreseen risk. They have some of the best in the biz working there


doing just that.


The mass creation blitzkrieg of the ETF and ETN markets. Chucks stands to benefit from that as well. Even know ETF’s are the next black swan event IMO. Chuck still make coin on the transactions of them and not the managing of them. They have a little….but not much exposure there.


$1.7 trillion in total assets, roughly half are held in retail brokerage


accounts. Assets in retail advisory accounts now weigh in at about $115 billion


and growing. 750,000 bank accounts. With no $5 DEBIT FREE…..lol


The trading software/platform is great also.In the second quarter, retail advisory assets rose by 20 percent from the year-earlier period. Indeed, Schwab is converting “billions” of dollars a month from self-directed accounts to one of its advisory offerings, Bettinger said.


===============


Charles Schwab Corp. (SCHW) @ $12.75


on 10-14-2011






Sentiment : Buy





=======================




Schwab 3Q net income up 77 percent


Schwab 3Q net income climbs 77 percent as assets increase, clients use help advisory services


Discount broker Charles Schwab Corp. said Monday its third-quarter net income rose 77 percent as more investors turned to the company’s advisory services amid increased market volatility and stock trading increased.


The San Francisco-based company posted net income of $220 million, or 18 cents per share, compared with $124 million, or 10 cents per share, a year ago. The year-ago profit was $218 million excluding certain charges.


Revenue rose 11 percent to $1.18 billion from $1.06 billion a year earlier.


The results missed the estimates expected by analysts surveyed by FactSet. They expected earnings per share of 19 cents and revenue of $1.19 billion.


Shares of Charles Schwab fell 81 cents, or 6.4 percent, to close at $11.94 Monday. They’ve traded between $10.56 and $19.69 in the past 52 weeks.


Client assets grew 7 percent to $1.58 trillion, which includes $655.4 billion in the investor services segment of the business, which was up 2 percent from a year ago, and $640.1 billion in adviser services, up 5 percent. Other institutional services assets grew 30 percent to $280.9 billion.


Clients opened 191,000 new brokerage accounts during the period, up 14 percent. The company ended the quarter with 8.5 million active brokerage accounts, 769,000 banking accounts and 1.46 million retirement plan participants.


CEO Walt Bettinger said the business environment weakened further in the third quarter, but clients stayed with their long-term investing plans.


“Their cash holdings at Schwab remained close to pre-crisis levels, and they were consistently net purchasers of securities,” he said. “Our full-service capabilities were in demand during the recent quarter as enrollments in our advisory solutions continued at a strong pace.”


Net interest revenue jumped nearly 14 percent to $443 million from $387 million. That gain was largely the result of growth in interest-earnings assets. The average rate earned on those assets was 1.82 percent in the latest quarter, slightly below the 1.89 average in the year-ago quarter.


Net trading revenue grew to $248 million from $182 million.


Expenses fell to $821 million from $864 million.


Bettinger said effective expense discipline will be key to the company’s near-term profitability as economic conditions remain challenging.


================================


 


SAN FRANCISCO, Oct 28, 2011 (BUSINESS WIRE) — The Charles Schwab Corporation (SCHW) -4.10% today announced that it has entered into an agreement to acquire Compliance11, Inc., a provider of cloud-based, regulatory compliance software. The acquisition is expected to close in the fourth quarter of 2011, subject to customary closing conditions. Financial terms of the transaction are not being disclosed.


Based in Chicago and founded in 2005, Compliance11, Inc. is a leading provider of cloud-based compliance automation software for public companies, brokerage firms, investment advisors, hedge funds, private equity firms and pension funds. Its highly scalable and customizable platform provides companies with a series of compliance tools to assist in managing their disclosure, tracking, surveillance and reporting needs, and more efficiently manage employee compliance


Full reah here:


http://www.marketwatch.com/story/schwab-…


I add >


In an environment and news cycle that have utterly been dominated with fraud and corruption of late….. Sheriff Chuck is there watching over things baby!….lol


Integrity –


To adherence to moral and ethical principles; soundness of moral character;


 


 












=============


January 17,2012


Charles Schwab (SCHW) @$12.15-Shares Upgraded by Goldman Sachs (GS) to “Buy”

rating in a research report issued to clients and investors on Tuesday.






Very interesting!perk-up!….Interest rates could be getting ready to rise via the Fed. Schwab

stands to do better than most in sector come rate rising time.=============


Charles Schwab Corporation (SCHW )

$11.19 -0.61 (-5.21%)

Going below $11 NO DOUBT! Whatta SHAME….people are getting crushed and those that have money there are also. Talk about trading below book!….wow That dont say much for all the AUM there. that is exactly why they are taking it on chin of late. And zero % rates for as far as eye can see.

Asked by Steven L. Goff months ago – 13 answers – 537 views


http://admin-www.stockpickr.com/members/view/answers/75806/


The ‘inflation TAX’ is hurting CHUCK!


=======


Charles Schwab Corp. (SCHW)@ $12.50


You just have no idea of the POWERHOUSE they are becoming!


People will look back at this pps and say ‘How did I not get long some chuck back then?”


They are a winner in just about every scenario that can unfold. The strategist in me does nothing buy ponder/quantify them scenarios btw.


Asked by Steven L. Goff months ago – 2 answers – 143 views


http://stockpickr.com/members/view/answers/76311/


=============


Charles Schwab Corp. (SCHW) Dipped below $11 last few days…..seen A LOT of

shorts covering. We go up from here!


MY two banks > SCHW and BSBR


I am also long the Mexican Peso the last few day….once again! (FXM)…seems like I bought in perfect there. It went off cliff…I was there waiting!

Asked by Steven L. Goff months ago – 0 answers – 71 views


www.stockpickr.com/view/answers/76082/


============


 


The Charles Schwab Corporation (SCHW) You will be hard pressed to get CHUCK to

go below handle and stay let alone trade down much further. This is CHUCKs

resistance here today near $11.


Take a small bite!




Asked by Steven L. Goff 1 month ago – 0 answers – 43 views















Metals USA Holdings Corp $MUSA…Not all American Manufacturing is Dead!












9 




1,413 views 


 




This company just reported a very profitable and frankly surprising to most (except me) third quarter 2011. Closed today @ $10.03 (+11.1%).  EPS of $0.45 on revenues of $492 million. Not an easy task by any stretch, in the base metals sector and it’s businesses the last few months. They did meet and even exceed a bit, previous guidance of 2Q. They did what they said, so they get some props/kudos for that in my book. Especially those companies with predominantly domestic manufacturing exposure. They also were aided by some very savvy feed stock buying/stoking, to lay away in inventory/stockpiling it seems. And used it and managed it well as to not have over hang inventory. Also a “vast  diversification of produced products mixture that is not only beneficial, but defensive of profit margins.” This in Plates and Shapes added to core ferrous business that was before. They managed to mitigate the cyclically nature of the business it seems. They stepped in and filled the supply gap created by some others going out of business during these tough economic conditions. They did this for a major HVAC maker just recently in fact.


This below from there


Metals USA Holdings Corp · 424B4 · On 4/9/10


 


http://www.secinfo.com/d14D5a.r2Emj.htm






Our Competitive Strengths


 




Value-Added Services Generate Premium Margins Over Metal.    Metal service centers generally earn a margin over the cost of metal, which provides stability to metal service centers’ cash flows relative to primary metal producers through pricing cycles. In addition to our warehouse and distribution capabilities, we offer our customers a wide range of value-added metal processing and inventory management services, which enable us to earn a premium margin over the cost of metal. Our ability to earn premium margins is further supported by an enhanced product mix across our metal service center business, which includes supplementing our core carbon offerings with non-ferrous volumes. Over the last several years, we have also taken steps to improve our ability to earn premium margins by increasing our exposure to higher growth end-markets including energy, infrastructure, and aerospace and expanding our service offerings through investments in our facilities and targeted acquisitions.


Wow…did they ever nail that strategy spot on!




The number of clients MUSA has across a vast array of industries really makes them a good proxy for the overall parts and manufacturing macro picture in the USA. 14 different markets they touch. 25% of revenues come from non ferrous sales this Q. That is up 20% from last year alone. (PCP) Precision Cast Parts should be looking at this company IMO. As well as Harold Simmons from Contran Corps Valhi Inc. (VHI). One analyst on the call today asked the CEO if he (the CEO) had any intentions of acquiring anything else soon. I felt that was the wrong question to ask. I would have asked > “Anybody been sniffing around looking to buy MUSA?” Because they are a target rich M&A canidate here at this market cap….. for sure in my book. (RS) (NUE) (AA) (CMC)(STLD)…all potential buyers


They supply Boeing (BA) and it’s 787 Dream-Liner (uses twice as much aluminum sheeting  as rest of BA’s models), among other aerospace companies that will be refurbishing fleets over the next decade, the oil and gas service industry, The trucking industry, Farm and agriculture equipment, Major Appliance Manufacturers, General Electric (GE), They make some electrical components and cabinets for them. Like the aluminum cabinets you see on street corners that house the traffic light controllers. That is bullish in itself for USA infrastructure revamp. This company has a monopoly on many specific things used in a lot of specific industries that will be seeing increased sales and demand soon. They also have some very lucrative Federal Government contracts both military and non. They also make ‘heat exchangers’ for geothermal wells/alternative energy and home heating industry. I personally would give this company any credit facility they needed or wanted and send them on a shopping spree to grow some more. I also see a dividend in future from the cash flow creation taking shape here. They make a lot of the steel for the automotive business (flat rolled steel) from their Ohio Valley recent acquisition. This is a USA jobs producer company (that goes milessssssssss in my trading book) Look below. They are paying less in taxes and employing more people. All USA companies should take note and lessons!


7. Accrued Liabilities


Accrued liabilities consist of the following:





















June 30,


December 31,







2011


2010





Salaries and employee benefits

$
14.2


$
10.8





Income taxes


2.3



3.1







June 29, 2010


Metals USA Holdings announced  the acquisition of J. Rubin & Co.. A well-established metal service center with locations in Illinois, Wisconsin and Minnesota, J. Rubin’s broad product range consists of carbon steel bars, carbon plate and laser-cut flat-rolled products. J. Rubin’s product mix and value-added services are provided to a diverse range of end-markets.


March 11, 2011


Acquires The Richardson Trident Company. It’s third acquisition since its IPO last April. With sales for the twelve months ending December 31, 2010 at approximately $148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident’s eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States


Flag Intermediate Holdings Corporation (“Flag Intermediate”) and its 100% wholly owned subsidiary Metals USA, Inc. (“Metals USA”) and the 100% wholly owned subsidiaries of Metals USA are referred to collectively herein as the “Company,” “we” or “our.” Metals USA prior to its November 30, 2005 acquisition by Apollo Management V L.P. (“Apollo Management” and together with its affiliated investment entities “Apollo” or “Apollo V”) (the “Merger”) is referred to herein as the “Predecessor Company.” The condensed consolidated financial statements include the accounts of Flag Intermediate, and Metals USA and its subsidiaries. Intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. Flag Intermediate and Metals USA are 100% wholly owned subsidiaries of Metals USA Holdings Corp. (“Metals USA Holdings”).


“Trident provides a broad range of metals and processing services with a product mix that emphasizes aluminum, stainless steel and nickel. The majority of Trident’s customer base operates in the oil and gas services sector. Trident also serves customers in the aerospace, defense and transportation industries. Processing services include precision sawing, boring, honing, slitting, sheeting, shearing and tuning. Trident also offers supply chain solutions such as just-in-time delivery and value-added components required by original equipment manufacturers. As a result of the acquisition, we expect to increase our non-ferrous and value-added processing product and service offerings in the geographic areas and end markets that Trident currently serves.”


http://www.sec.gov/Archives/edgar/data/1038363/000119312511223280/d10q.htm


This from the CEO’s comments today in the 3Q conference call. Who by the way, while on the call was very adamant as to how MUSA managed to do so well this past quarter. And the PE the market is currently treating MUSA with is utterly ridiculous. He seemed actually mad in his speaking tone about this. I think he is justified in his sentiment based upon the growth MUSA has exhibited in it’s recent acquisitions within the space. I also took note how he was very stern and repetitive towards the 3 analyst who were on the call (GS, JMP, JEF). Who all congratulated him on a ‘beat’ on earnings this Q. I am expecting an upgrade or two in the net few days from someone beside myself.


The cash flow machine created here will be paying off and down acquisition debt here in no time. Plus a little company debt is a good thing right now on balance sheets. He also stated he had ‘BIG’ clients who have recently moved some of their manufacturing businesses from abroad to grow operations domestically now. It seems the (MADE IN THE USA) protectionist trading thesis is also hitting MUSA here of late. He stated that because the cost of production in some cases is  no longer significantly more beneficial to do outside the USA. DID I JUST HEAR THEY/WE ARE STEELING JOB BACK FROM OVERSEAS? Niiceeee……re patriot-ising America JOBS JOBS JOBS they are!


Metal shipments were 340,600 tons for the third quarter of 2011, up 25% from metal shipments of 272,600 tons in the third quarter of 2010. Metal shipments for the first nine months of 2011 were 1,069,000 tons, up 35% compared to metal shipments of 791,600 tons for the first nine months of 2010. Toll processed tonnage was 36,900 tons during the third quarter of 2011 compared to 15,500 tons for the third quarter of 2010. Toll processed tonnage was 123,600 tons during the first nine months of 2011 compared to 36,000 tons for the first nine months of 2010.


Lourenco Goncalves, the Company’s Chairman, President and C.E.O., stated: “Our third quarter results confirm we are succeeding with our plan to make Metals USA the most efficient company in the service center industry. We operate with a mentality to constantly go after profitable business, regardless of the economic headwinds, and have shifted our business to support markets that are doing well. Growth in automotive, energy, lawn and garden, heavy equipment, and agriculture, to name a few, have all contributed to offset end-markets that continue to struggle with recession overhang, such as non-residential construction.”


*YOY a 25% increase in shipping tonnage


*43% improvement in revenues


*70% improvement in EBITDA


*188% net income increase YOY




Net sales for the third quarter of 2011 were $492.3 million, up 43% from net sales of $345.3 million for the third quarter of 2010. Net income for the third quarter of 2011 was $16.7 million compared to net income of $5.8 million for the third quarter of 2010. Earnings per diluted share (“EPS”) were $0.45 in the third quarter of 2011 compared to $0.16 for the third quarter of 2010.


Net sales for the first nine months of 2011 were $1,430.2 million, up 48% from net sales of $968.2 million for the first nine months of 2010. Net income for the first nine months of 2011 was $50.6 million compared to net income of $8.4 million for the nine months ended September 30, 2010. EPS was $1.36 in the first nine months of 2011 compared to $0.26 for the first nine months of 2010.


I’m a ‘committed, shares in strong hands’ LONG here! And very bullish on this company here today at $10. I owned the stock higher from here but did some good ‘blood in the streets’ buying in August to dollar cost average down to a nice avg that is well above water now. But frankly, that lack of them NOT doing the same opportunistic buying (and them as insiders and me as only Average Joe Investor) bothers me some. They need to put up some money and do some buying for me to commit more capital to my investment here. But what I do own I feel is going to make a lot of money here!


The 11 1/8% Senior Secured Notes due 2015 (Metals USA Notes) are obviously first thing to get paid down with cash or restructured.


Metals USA Holdings is not a guarantor of the Metals USA Notes. There is a limitation on the amount of funds which can be transferred by the Guarantors to Metals USA Holdings in the form of dividends. Such amount available for distribution shall be increased by an amount equal to 50% of Consolidated Net Income, as defined, or reduced by an amount equal to 100% of Consolidated Net Loss, as defined. As of June 30, 2011, $3.4 was available for general distribution under the restricted payment covenant contained in the Indenture governing the Metals USA Notes. 


Com onnnnnn Bank of America, N.A., as Administrative Agent and Collateral Agent of these notes…..help a brother out!


23-Dec-2010


Entry into a Material Definitive Agreement, Creation of a Direct Financ




Item 1.01 Entry into a Material Definitive Agreement. On December 17, 2010, Flag Intermediate Holdings Corporation (“Flag Intermediate”), Metals USA, Inc. (“Metals USA”), and certain subsidiaries of Metals USA (collectively referred to herein as the “Company”) entered into an amended and restated loan and security agreement (the “New ABL Credit Agreement”) with the lenders party thereto and the Bank of America, N.A., as administrative agent and collateral agent. Flag Intermediate and Metals USA are wholly-owned subsidiaries of Metals USA Holdings Corp.The New ABL Credit Agreement provides for a new $500 million (which may be increased up to $750 million at the option of the Company), 5-year, senior secured asset-based credit facility (the “New ABL Facility”) that amends and restates the Company’s existing $625 million senior secured asset-based credit facility (the “Existing ABL Facility”) that was scheduled to mature on November 30, 2011.At the Company’s option, interest accrues on the loans made under the New ABL Facility at either LIBOR plus a specified margin (currently set at 2.50%), or the Base Rate (which is based off of the federal funds rate plus 0.50%, Bank of America’s prime rate or LIBOR plus 1.00%), plus a specified margin (currently set at 1.50%).




http://biz.yahoo.com/e/101223/musa8-k.html




Here is the link to conference call >













There is a short squeeze here as well. Look at the very small float and the 5% short interest!
















Shares Outstanding5:
37.06M




Float:
8.15M




% Held by Insiders1:
1.33%




% Held by Institutions1:
94.40%




Shares Short (as of Sep 30, 2011)3:
600.12K




Short Ratio (as of Sep 30, 2011)3:
3.80




Short % of Float (as of Sep 30, 2011)3:
5.10%




Shares Short (prior month)3:
606.66K














Top Institutional Holders
















Holder
Shares
% Out
Value*
Reported




Tempus Quo Capital Management, LLC
3,692,582
9.96
55,019,471
Jun 30, 2011




Apollo Management Holdings, L.P.
23,728,650
64.03
353,556,885
Jun 30, 2011




Ameriprise Financial, Inc.
2,009,115
5.42
29,935,813
Jun 30, 2011




GOLDMAN SACHS GROUP INC
1,037,233
2.80
15,454,771
Jun 30, 2011




UBS O’CONNOR LLC
573,722
1.55
8,548,457
Jun 30, 2011




VANGUARD GROUP, INC. (THE)
481,475
1.30
7,173,977
Jun 30, 2011




FRIESS ASSOCIATES INC
414,200
1.12
6,171,580
Jun 30, 2011




SHAW D.E. & CO., INC.
410,238
1.11
6,112,546
Jun 30, 2011




TOURADJI CAPITAL MANAGEMENT LP
350,000
0.94
5,215,000
Jun 30, 2011




ADAGE CAPITAL PARTNERS GP, L.L.C.
245,768
0.66
3,661,943
Jun 30, 2011
















Top Mutual Fund Holders
















Holder
Shares
% Out
Value*
Reported




Columbia Fds Ser Tr-Columbia Small Cap Value II Fd
950,000
2.56
14,934,000
May 31, 2011




GOLDMAN SACHS SMALL CAP VALUE FUND
639,697
1.73
5,725,288
Sep 30, 2011




Columbia Fds Ser Tr I-Columbia Small Cap Core Fd
404,290
1.09
6,023,921
Jun 30, 2011




VANGUARD SMALL-CAP INDEX FUND
197,965
0.53
2,949,678
Jun 30, 2011




ISHARES RUSSELL 2000 INDEX FD
148,567
0.40
1,852,630
Aug 31, 2011




Advanced Series Tr-AST/Goldman Sachs Small Cap Value Port
105,465
0.28
1,571,428
Jun 30, 2011




ING Parners Inc.-ING/Columbia Small Cap Value II portfolio
105,000
0.28
1,564,500
Jun 30, 2011




COLLEGE RETIREMENT EQUITIES FUND-STOCK ACCOUNT
90,136
0.24
1,475,526
Mar 31, 2011




Powershares Exhg Traded Fd-Powershares Dyn Basic Materials S
82,671
0.22
1,030,907
Aug 31, 2011




ISHARES RUSSELL 2000 GROWTH INDEX FD
75,256
0.20
938,442
Aug 31, 2011














———————————


MUSA is a sell here= SHORT


The company is now $500 million market cap. You should cover it Jim

Cramer….just to screw steve goff!

Metals USA Holdings Corp (MUSA) $13.94

February 2, 2012

























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