Wednesday, May 9, 2012
The Importance of Investor Relations Consulting for Startup Enterprises, Part II
Friday, April 20, 2012
Two years later, fish sick near BP oil spill site Scientists, fishermen troubled by sick fish caught near spill site 2 years after Gulf disaster
Now, two years after the Deepwater Horizon rig exploded and sank, killing 11 men and touching off the worst offshore spill in U.S. history, the latest research into its effects is starting to back up those early reports from the docks: The ailing fish bear hallmarks of diseases tied to petroleum and other pollutants.
Those illnesses don't pose an increased health threat to humans, scientists say, but they could be devastating to prized species and the people who make their living catching them.
There's no saying for sure what's causing the diseases in what's still a relatively small percentage of the fish, because the scientists have no baseline data on sick fish in the Gulf before the spill to form a frame of reference. The first comprehensive research may be years from publication. And the Gulf is assaulted with all kinds of contaminants every day.
(AP Photo/Courtesy Steven Murawski)
Still, it's clear to fishermen and researchers alike that something's amiss.
— A recent batch of test results revealed the presence of oil in the bile extracted from fish caught in August 2011, a year after BP's broken well was capped and nearly 15 months after it first blew out on April 20, 2010.
"Bile tells you what a fish's last meal was," said Steve Murawski, a marine biologist with the University of South Florida who was chief science adviser for the National Marine Fisheries Service until November 2010 when he began working on oil spill studies for USF. "There was as late as August of last year an oil source out there that some of those animals were consuming."
Bile in red snapper, yellow-edge grouper and a few other species contained on average 125 parts per million of naphthalene, a compound found in crude oil, Murawski said. Scientists expect to find almost none of the toxin in fish captured in the open ocean.
"Those levels are indicative of polluted urban estuaries," he said.
— Last summer, a team of scientists led by USF has done what experts say is the most extensive study yet of sick fish in shallow and deep Gulf waters. Over seven cruises in July and August, the scientists caught about 4,000 fish — from Florida's Dry Tortugas to central Louisiana — using miles-long fishing lines dragged from close to shore out to depths of 600 feet. The work was funded with a federal government grant and help from the Florida Fish and Wildlife Research Institute.
About 3 percent of the fish they caught displayed gashes, ulcers and parasites symptomatic of environmental contamination, according to Murawski, the lead researcher. The number of sick fish rose not only as scientists moved west away from the relatively clean and oil-free waters of Florida but also as they pushed into deeper waters off the coasts of Alabama, Mississippi and especially Louisiana, near where the Deepwater Horizon sank.
About 10 percent of mud-dwelling tile fish caught in the DeSoto Canyon, to the northeast of the well, showed signs of sickness.
"The closer to the oil rig, the higher frequency was" of sick fish, Murawski said.
Past studies off the Atlantic Seaboard found about 1 percent of fish suffering from diseases, Murawski said. For now, he's taking that as a historical reference point; but he says it's not possible to directly apply that baseline to the Gulf, which is warmer and because of that an incubator for bacteria and parasites that could be the cause of lesions and sicknesses. Other important differences are that oil and natural gas have been pouring out of fissures from the floor of the Gulf for centuries, and the muddy waters of the Mississippi River flush into the same spots where scientists and fishermen are finding sick fish.
— Laboratory work over the past winter on the USF samples indicates the immune systems of the fish were impaired from an unknown environmental stress or contamination. Other researchers say they have come to similar conclusions over the past year.
"Some of the things I've seen over the past year or so I've never seen before," said Will Patterson, a marine biologist at the University of South Alabama's Dauphin Island Sea Lab. "Things like fin rot, large open sores on fish, those were some of the more disturbing types of things we saw. Different changes in pigment, red snapper with large black streaks on them."
All of this has biologists — and many fishermen — worried.
James Cowan, a reef fish expert at Louisiana State University doing long-term sampling for the Louisiana Department of Wildlife and Fisheries, received his first report of fish with what looked like ulcers in November 2010. He began reading up on what scientific literature was available on oil spills and fish.
"There is so much in the literature that links exposure to PAHs (the compounds in oil) to exactly what we are seeing: sicknesses, lesions and everything else," Cowan said.
Even if oil could be pinpointed as a contaminant, however, it's difficult to definitively tie it to BP's Macondo well. The Gulf is littered with natural oil seeps, pipelines and oil wells and pollution from passing ships. In addition, there are the discharge of the Mississippi River, salinity and temperature fluctuations and other ecological factors to consider.
These early findings with fish are not out of step with what researchers are turning up all over the Gulf two years after the spill: The oil disaster whacked the Gulf. In the past year, research has emerged showing deep-water corals, seaweed beds, inshore bait fish, dolphins and other species were injured by the spill.
"There is lots of circumstantial evidence that something is still awry," said Christopher D'Elia, the dean of LSU's School of the Coast and Environment. "On the whole, it is not as much environmental damage as originally projected. Doesn't mean there is none."
Portions of a few bays remain closed because of the spill.
For the second year, fishermen like Wayne Werner, a 53-year-old Louisiana captain who catches red snapper commercially, are calling in with reports of lesions.
He and other fishermen said they want to get to the bottom of a problem that's forcing them to take longer trips to fishing spots outside the spill zone and perpetuating their fear for their livelihoods.
"Every time we talked about bad fish, everybody kind of went nuts on us. Just like, 'You're hear-saying,' you know? And we're saying, 'Well, they're there,'" he said this week.
"They're still there. Now that the water is getting warm again, we're starting to see more and more again."
Thursday, April 19, 2012
Apple Shares Back Below $600: Is a Larger Sell-Off Looming?
The past week has seen the largest stock in the world face its toughest 5-day slump in 6 months. The way forward for Apple is still fraught with nerves, as some worry that all those gains could fast become profits, should investors finally decide to realize them and exit this crowded trade.
"The fundamentals of Apple couldn't be better," Schatz says in the attached video. "Apple could go to $700, $800, $1,000 first. I'm not that ridiculous in my notion to think that Apple is going to top right here."
Yet, in the next breath, Schatz paints a treacherous picture of what a post-top exodus might look like, saying, "Whenever that bull market peaks, I think Apple is headed, minimally, 30% down, probably 50% to 60% down."
It's all part of what happens when opinion changes on the ''lone stock standing.'' Until now, virtually every fund manager in the world, depending on their style, needed to have anywhere from 5% to 25% of their assets in this one stock just to tread water. Because of the breadth of ownership (71% by institutions), plus Apple's red-hot performance and outlook, it has essentially been on the do-not-sell list whenever we hit a bit of turbulence.
But Schatz says that is always how it has been with widely-held mega-caps like IBM, GE, or Exxon.
"This is the dot-com bubble all over again. I'm sorry, I am not saying it will never recover, but when you have the whole nation in one story stock, it never never never ends well," he says, pointing to a dearth of evidence for similar soft landings.
In the meantime, his advice is to own it but keep raising your stop-loss orders, or even start lightening up a bit, because when "go-time" inevitably arrives, it's not going to be pretty.
Monday, March 26, 2012
The Importance of Investor Relations Consulting in Providing Exposure for Startup Enterprises
Developing companies face a number of challenges. Many such companies know they have a good idea, whether it be a new technology, human service, or something else. They know their idea can have a major, profitable impact. However, the conditions have to be right. These companies often rely on a new, unknown, and untrusted idea, concept, or product. They may also face difficult competition from more established players in their market. In an environment defined by these sorts of marketing challenges, it can be difficult to gain sufficient startup capital to establish a competitive market footprint. Moreover, these challenges can be greatly exacerbated in a weak economy. In a pool of diminishing resources, consumers are cutting back on all but the most essential goods and services, and suspicious, funds-short investors are wary about anything that does not look like a sure bet. Many larger, established companies have specialists permanently on staff to help the company frame its information flow in the face of this kind of skepticism, but it may not be financially feasible for a startup to hire such a specialist on a permanent basis.
A good investor-relations consulting firm can help a company facing these daunting prospects. There are a variety of consulting firms available, such as Emerging Markets Consulting, that specialize in working with startup enterprises. These consultants offer strategic planning to help the fledgling company better position itself in relation to its peers. Oftentimes, the biggest challenge to startups is visibility. A new company may be an unknown quantity in a field of established, trusted competitors, and what little exposure the company does have may do more to hurt it than help it if that exposure is not conducted in the proper manner. In such conditions, the new company needs to construct a compelling story that can convince potential investors that what the company has to offer is worth an investor’s money. A good consulting firm will provide the coaching needed on how to use both traditional and digital media—including websites, webcasts, mail, and email—for the company to make a compelling case for the viability of its product or service. An effective consulting specialist will understand how best to deploy these media vis-à-vis developing market trends to create an attractive profile that puts the client company’s long-term prospects in a positive light and that helps the company aggressively answer potential investor concerns. Consultants will also be able to provide sound advice regarding how to properly follow oftentimes complex federal regulations.
Perhaps most importantly, a quality such consulting firm will have access to concrete resources. Investor relations specialists are in the business of building relationships in the investment community, and the best such specialists are trusted by expansive networks of contacts. They can oftentimes put startups in contact with precisely the right people needed for the company to establish a strong capital base.
Saturday, March 17, 2012
US futures flat after Dow hits post-crisis high
US stock market futures flat a day after Dow hits highest point since 2007; banks rising
U.S. stock market futures are little changed a day after stocks posted the biggest gains of the year.
Dow Jones industrial average futures were up 5 points to 13,115.
The index closed at its highest level since 2007 on Tuesday — within 1,000 points of its record — after a day of encouraging signs for the economy: Retail sales were strong, the Federal Reserve was optimistic and most of the nation's biggest banks got a clean bill of health.
The Nasdaq composite index also reached a milestone on Tuesday, closing above 3,000 for the first time since December 2000. Inpremarket trading Wednesday, Nasdaq 100 futures edged up 0.50 to 2,694.50.
S&P 500 futures added 0.3 points to 1,391.
Bank stocks were gaining modestly in premarket trading after surging Tuesday. JPMorgan Chase & Co. added 6 cents in the premarket after leaping 7 percent on Tuesday. Bank of America Corp. shares added 20 cents ahead of the opening after Tuesday's 6.3 percent gain.
Citigroup Inc., which also jumped more than 6 percent Tuesday, fell 4.3 percent in premarket trading after being one of the four major banks that failed the Fed's annual "stress tests."
The bank rally started Tuesday when JPMorgan Chase said it was raising its dividend and launching a $15 billion stock buyback program, all with the blessing of the Fed.
The Fed was planning to wait until Thursday to release the results of its stress tests, which determine which are healthy enough to raise their dividends. After JPMorgan's announcement, the Fed released the results early.
The Fed's action was the latest sign that the U.S. financial system was getting healthier.
"That's what really made the day," said Jeffrey Kleintop, chief market strategist at LPL Financial. Banks were easily the best-performing stocks in the market, gaining almost 4 percent as a group.
The Nasdaq gain was also notable. On Dec. 11, 2000, the last time the Nasdaq closed above 3,000, it was in the middle of a horrifying slide — from a peak above 5,000 in March 2000 to just above 1,100 in October 2002.
At the beginning of 2000, the peak of the dot-com frenzy, investors valued stocks in the Nasdaq composite index at an astronomical 175 times their per-share earnings over the previous year.
Google was not yet a public company, and the iPod didn't exist. Apple pulled in $2.3 billion in quarterly revenue. Many Nasdaq companies were Internet startups with high stock prices but big losses.
And many of them failed, taking the Nasdaq down with them.
Jack Ablin, chief investment officer at Harris Private Bank, said the key difference between the Nasdaq then and now is that the technology companies that dominate the index only promised profits 12 years ago.
"The Nasdaq hasn't done much of anything for 12 years, but it's had a huge rally in earnings," Ablin said.
Today, the profits are real. Apple reported $46 billion in revenue in its latest quarter. The Nasdaq composite, which includes more than 2,500 companies, trades at about 24 times earnings, according to Birinyi Associates.
Meanwhile, the S&P is a 12 percent rally from its record of 1,565.15.
Brian Gendreau, market strategist at Cetera Financial, said stocks could still go higher. Investors are paying roughly 14 times the past year's earnings for the S&P 500 index. The long-term average is closer to 15.
"Valuations are still very cheap," he said.
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AP Business Writer Eileen AJ Connelly contributed to this report.
Thursday, March 15, 2012
BMW warns sees no signs of end to incentive war
BMW (GER:BMW.DE - News), the world's largest premium carmaker, warned that more and more profit-eroding incentives are being offered to sell luxury cars at the moment, adding there are no signs this will change anytime soon.
"What we see with the beginning of the fourth quarter is that the pressure on the pricing front has increased. When it will end is, at the moment, not clear," finance chief Friedrich Eichiner told analysts during a webcast.
BMW does not break out separately the net effect of pricing power on its earnings due to competitive reasons, but the Automobile segment's earnings before interest and tax (EBIT) improved by 3.14 billion euros ($4.12 billion) last year thanks to a combination of balance of volumes, sales mix and pricing.
Eichiner also said efficiency gains would be in the medium to high hundreds of millions of euros this year, compared with 520 million in 2011.
According to Eichiner, BMW's financial services business set aside a risk provision of around 100 million euros last year due to exposure to the Southern European luxury car market. ($1 = 0.7628 euros)
(Reporting by Christiaan Hetzner)
Wednesday, March 14, 2012
Magnitude 6.1 quake jolts eastern Japan, no tsunami warning
TOKYO (Reuters) - An earthquake with a preliminary magnitude of 6.1 hit east of Tokyo on Wednesday but no tsunami warning was issued and there were no initial reports of damage or troubles at area nuclear plants, the Japan Meteorological Agency and local media said.
High-speed bullet trains serving northern Japan were halted and the two runways at Tokyo's Narita International Airport were closed after the quake but quickly resumed operations, local media reported.
No abnormalities were reported at the Tokai No.2 nuclear power plant northeast of Tokyo, which has been shut for routine maintenance, or at Tokyo Electric Power Co's tsunami-hitFukushima Daiichi and Daini plants, local media said.
The earthquake, which caused substantial shaking in Ibaraki and Chiba prefectures east of Tokyo, followed just a few hours after a magnitude 6.8 quake jolted northern Japan. A tsunami warning was issued but later lifted after that earthquake.
Just over one year ago, the northeast coast was struck by amagnitude 9 earthquake, Japan's strongest on record, and a massive tsunami, triggering the world's worst nuclear crisis in 25 years at the Fukushima Daiichi plant.
There has been a five-fold increase in the number of quakes in theTokyo metropolitan area since the year-ago disaster, the Tokyo University Earthquake Research Institute has said.
(Reporting by Kaori Kaneko; Editing by Edmund Klamann)