Wednesday, April 25, 2007

in the news

Fuel prices are rising at a pace not seen since Hurricanes Katrina and Rita knocked out a third of the U.S. oil refining industry in 2005. Gasoline consumption is climbing twice as fast as last year and will accelerate when summer travel begins late next month. (Bloomberg)

Steve Jobs, chief executive of Apple, was warned in 2001 about the accounting implications of backdating stock options for top executives at the company, Apple’s former chief financial officer said on Tuesday. (FT)

April 24 (Bloomberg) -- Bond investors who financed the U.S. housing boom are starting to pay the price for slumping home values and record delinquencies in subprime loans.

The propensity to sell start-up technology companies rather than taking them public may rob investors of riches down the line because the companies won't grow into the next Intel Corp. or Cisco Systems Inc., Grady said. Venture investors are pushing for acquisitions instead of risking the expense and uncertainty of the public markets, where a small company is likely to be ignored by increasingly stretched research analysts. (April 24 (Bloomberg)

The proof that it now pays to be bearish can be found in financial futures based on the government's 4 3/4 percent bond maturing in 2037, a benchmark for the 22-year, 11-month rally that began in May 1984 and ended on April 6, says John Kosar, president of Asbury Research in Lake in the Hills, Illinois. That's when the price of 30-year Treasury bonds for delivery on the Chicago Board of Trade fell below 110 20/32 and signaled a new direction for the market, he said. The turning point was so obvious that even ``a five-year- old who has a ruler and a pencil can draw a line under the lows and make a determination'' that bond yields have bottomed and are poised to climb for many years to come. (Bloomberg)

WASHINGTON (AP) - For the first time astronomers have discovered a planet outside our solar system that is potentially habitable, with Earth-like temperatures, a find researchers described Tuesday as a big step in the search for "life in the universe."

WASHINGTON, Apr. 24, 2007— As the House and Senate prepare to vote this week on the final conference report on the $124 billion troop funding bill — which would also mandate that U.S. combat troops begin withdrawing from Iraq on Oct. 1 at the latest — Gen. David Petraeus is scheduled to come to the Hill tomorrow to brief lawmakers on the progress of the recent troop escalation. ABC News has learned, however, that House Speaker Nancy Pelosi, D-Calif., will not attend the briefing. (ABC)

The godfather of modern hip-hop has decided enough is enough. Russell Simmons, the co-founder of Def Jam records and the inspiration behind bands as diverse as Run-DMC, the Beastie Boys and LL Cool J, is as sick of the lazy vulgarity of rap music as many of the rest of us. (Andrew Gumbel in Los Angeles, the Independent)

Friday, April 20, 2007

DOW JONES BREAKS 12900 MARK!!!!!!!!!!!!!!!!!!

Relatively low valuations ,merger and buyout activity .coupled by stable interest rates ,corporate profit growth and lots of cash on the sidelines make it only a matter of time for this market to make a big move upward.....

Thursday, April 19, 2007

news news news

NEW YORK (AP) - The Dow Jones industrial average closed above 12,800 for the first time Wednesday, signaling Wall Street's recovery from its steep decline in February as investors rewarded companies with strong earnings.

April 19 (Bloomberg) -- China's economy grew at a faster- than-forecast 11.1 percent pace in the first quarter from a year earlier, raising the likelihood the government will increase interest rates to curb the risk of overheating.

NEW YORK, April 18 (Reuters) - Users of the hand-held BlackBerry e-mail device, a communications lifeline for movers and shakers from the White House to Wall Street, endured hours of disrupted service before the system was restored on Wednesday.

Iraq could hold almost twice as much oil in its reserves as had been thought, according to the most comprehensive independent study of its resources since the US-led invasion in 2003. (FT)

VIENNA (Reuters) - Iran has begun making nuclear fuel in its underground uranium enrichment plant, the international atomic watchdog said on Wednesday, in a move by Tehran that raises the stakes in its showdown with world powers.

China claimed yesterday to have caused a snowfall for the first time as part of its increasingly ambitious attempts to control the weather. (UKTELEGRAPH)

( - Sen. Barbara Boxer (D-Calif.), chairman of the Environment and Public Works Committee, pledged Wednesday to push legislation that would put caps on carbon emissions in an effort to fight global warming.

(CBS/AP) BROOKLYN A young whale thrashed the water, beached itself at an oil depot dock and died suddenly on Wednesday after two days of swimming aimlessly in a small bay off an industrial section of Brooklyn.

MOSCOW -- Russia plans to build the world's longest tunnel under the Bering Strait to Alaska as part of a $65 billion project to supply the United States with oil, natural gas and electricity from Siberia. (Washington Times)

(Jerusalem ( - Nineteen-year-old Najwa Hashash was so unhappy after her recent wedding that she was ready to carry out a suicide bombing, a report on the Israeli internet site YNET said. Israeli forces arrested Hashash in the Balata refugee camp of the West Bank city of Nablus earlier this week.

Monday, April 16, 2007

Earnings Earings Everywhere

It never ceases to amaze me; last week I mentioned that the market had been alternating between up and down weeks. This fact became widely know and as always once we all know something is going to happen, it doesn’t. Concern is now shifting to earnings this week and while the doomsayers are speculating about the demise of corporate earnings, I would suggest that the strong earnings growth of the last 5 odd years seems to be nowhere near abating. The question remains as to when equity markets will begin to recognize this fact with higher equity valuations.

Why is April 15th Tax Day?

Sunday, April 15, 2007

Why Are Taxes Due on April 15th ,this year April 17th

Congress passed the Sixteenth Amendment to the Constitution, which allows for the implementation of personal income tax, on February 3, 1913, and chose March 1 of the following year as the filing deadline. The deadline was changed to March 15 in 1918, and, to April 15 in 1955. Moving back the date from the end of the tax year served two purposes -- it gave the IRS more time to handle the work and, more importantly, more time to hang on to your money before issuing you a refund.

U.S. Constitution: Sixteenth Amendment:

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

Friday, April 13, 2007

Earnings News in full Swnig

Its all about earnings and I suspect corporate earnings will be a bit stronger than many suspect.

Thursday, April 12, 2007

The FED's job is to worry about inflation

A lot of investors seemed shocked to learn that the FED is still very concerned about inflation. May I take this moment to remind you that one of the FED’s primary functions is to ensure price stability, so to put it another way the FED’s job is to worry about inflation? I would be much more concerned if the FED wasn’t focuses in on inflation.

Folks no reason to think otherwise : the FED will stay on hold for the remainder of this year

Tuesday, April 10, 2007

Alternating between ups and downs

Since the sell off at the end of February the market has developed an interesting pattern alternating between down and up weeks trending higher. If this pattern continues then this week could be a down week for the market so we shall see what happens

Monday, April 09, 2007

Thinking about investing;

Thinking about investing ;

Correlation doesn't equal causation...On Wall Street like many other industries there is a tendency for the conscientious to pronounce a knee jerk causal relationship between the specific events or data point of the day and then to take comfort in a particular action in the stock market. Equity Markets react too many variables, both perceived and concrete. Long term investors should be very cautious in accepting these causal relationships because over time the links often prove tenuous at best. It is good to remain skeptical of any conscientious in causal relationships because they often prove inaccurate. The point being that these artificial causalities can often influence your investment decisions creating faulty premises and failed investments.

The tendency of us mere mortals to think in a purely linear fashion and make assumptions that the rate of change we see before our eyes to day will remain the same indefinitely. This causes investors to make assumptions about what drives the market. Investors often make this mistake when they want to buy a stock that has gone up a lot. Over time the rate of change fluctuates and as they like to say around here past performance is no indication of future performance.

Big News I have been chosen for a test shoot for the HDTV Channel TV show
,“Wall Street Warriors”

Don’t for get your IRA Contribution Limits
$3,000 $3,500
$4,000 $4,500
$4,000 $5,000
$5,000 $6,000

For further information please call:
James Foytlin
Independent Investment Representative

Wednesday, April 04, 2007

in the news

Corporate profitability rose to its historically highest level at the end of last year as manufacturing and service sector companies benefited from strong sales growth combined with lower energy prices and subdued wage pressures. (FT)

April 4, 2007 -- While the TV networks and advertisers haggle with Nielsen over the best way to track commercial viewing, Google is doing an end run around the ratings giant with a new system that will tell advertisers how many people watched their TV spots and for how long. (NY POST)

PHILADELPHIA (AP) — A man who contended that he was not required to pay income tax, and whose case led to an indictment against actor Wesley Snipes, was sentenced Tuesday to 27 months in prison.

The New York Coal Trade Association, headquartered in New York City, recently held its 94th annual banquet and meeting at the New York Hilton. One of the guest speakers was Bob Murray, founder and CEO of Murray Energy Corporation and probably one of the few CEOs brave enough to challenge the militant climate control movement that threatens the future of America's economy. In his speech, he dared to say that he regards Al Gore as the shaman of global doom and gloom. He is not joking when he says, "He is more dangerous than his global warming."

The heavy condemnatory breathing on the subject of global warming outdoes anything since high moments of the Inquisition. ( William F. Buckley)

DENVER - The 2007 Atlantic hurricane season should be "very active," with nine hurricanes and a good chance that at least one major hurricane will hit the U.S. coast, a top researcher said Tuesday. (AP)

Europe has eclipsed the US in stock market value for the first time since the first world war in another sign of the slipping of the global dominance of American capital markets. (FT)

DETROIT (AP) - Toyota's U.S. sales jumped 11.7 percent last month, boosted by record hybrid sales and strong overall car sales, while industry leader GM's total slipped 4 percent, Ford posted a 9 percent decline and DaimlerChrysler fell 4.1 percent. The U.S. division of Japan's Honda posted a double-digit increase.

BAGHDAD (AP) - The Iraqi government announced plans Tuesday to shorten the curfew in the capital by two hours, saying security had improved enough to let residents stay on the streets until 10 p.m.

Monday, April 02, 2007

The infamous or famous FED Model indicates that equities are the cheapest in 20 years

The infamous or famous FED Model indicates that equities are the cheapest in 20 years and some fund managers report to being wildly optimistic. As many of you know I have been wildly optimistic about equity valuations since 2000 to no avail. I generally like to blow against the wind and it makes me a bit uncomfortable with this growing choirs of raging bulls. But let me repeat once again, the stock since 2000 has barely outperformed cash and on an adjusted real basis underperformed cash .This is simply unheard of . By my calculations the DOW Jones Index should be somewhere around 13400 just to be even with inflation .Corporate profits though appearing to be decelerating make up the largest part of the GDP in years. Enormous pools of cash are sitting on the sidelines and in corporate and hedge fund coffers. Like the early 1980’s buyouts and takeovers are rampant. What we all seem to be looking for is the catalyst that will spark a new bull market. You gotta think this market has got to move higher from hear.