questions please email cecate@pacbell.net
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July 02, 2010
Earhart and Noonan
Who is currently the youngest person to have circumnavigated the globe in a boat? Michael Perham was 17 years and 164 days old when he became the youngest person to sail solo around the world. Just a few months earlier, Zac Sunderland had completed his solo round-the-world voyage, about 4 1/2 months shy of his 18th birthday. Last month, Sunderland's sister, Abby, attempted to beat Perham's record, setting out alone in her boat at the age of 16. Abby's trip was aborted when her mast snapped off in a storm, and she had to be rescued at sea. Legendary aviator Amelia Earhart summed up the thrill and difficulty of traveling solo: "In soloing — as in other activities — it is far easier to start something than it is to finish it." The first woman to fly solo across both the Atlantic Ocean (1932) and the Pacific Ocean (1935), Earhart and navigator Fred Noonan disappeared on this date in 1937 as they attempted to fly around the world along the equator.
Quote:
"Adventure is worthwhile in itself." — Amelia Earhart
Answer of the Day
How
old was Michael Phelps when he set his first world record?
Michael
Phelps
set his first world record — the 200-meter
butterfly
— at the 2001 US Spring Nationals when he was 15 years old. With
the win, he became the youngest world record holder in swimming. Two
years later, at his first world championships in
Barcelona
, Phelps set five individual world records in one meet, an unprecedented
accomplishment. Then, in 2008, Phelps edged out previous record holder
Mark
Spitz
, winning the most gold medals in one Olympics — eight — and
the most career Olympics gold medals — fourteen. In
Baltimore
, Phelps' home town, a street was renamed in his honor to The Michael
Phelps Way. Happy birthday to superstar swimmer Michael Phelps, who
turns 25 today.
Quote
"You can't put a limit on anything.
The more you dream, the farther you get."
—
Michael
Phelps
June 29, 2010
'Le Petit Prince'
What is the name of the tiny planet in the book 'The Little Prince'? The planet — or asteroid — is named B-612; it had reportedly once been seen through a telescope by a Turkish astronomer. Antoine de Saint-Exupéry, the aviator and author of Le Petit Prince ( The Little Prince), was born on this date in 1900. Saint-Exupéry combined his love of flight with his love of writing to compose the tale of an aviator who meets the diminutive ruler of the smallest planet in the solar system. One of literature's most famous allegories about the importance of innocence and love, Le Petit Prince was written in the 1940s, during World War II. Saint-Exupéry had fled from France to New York. His yearning for a more idyllic time and for his home is evident in the book.
Quote:
"It is only with the heart that one can see rightly, what is essential is invisible to the eye." — Antoine de Saint-Exupery
June 28, 2010
In the folk rhyme 'Monday's Child,' what is Monday's child? According to the folk rhyme, "Monday's child is fair of face." The word "Monday" is a derivative of "moon day." The first day of the workweek in many places around the world, Monday is often the least favorite day of the week. Garfield often says, "I hate Mondays." The Carpenters sang "Rainy days and Mondays always get me down." Perhaps that's one of the reasons that, on this date in 1894, US Congress passed a law declaring the first Monday in September to be celebrated as a workers' holiday, Labor Day. And maybe it was one of the reasons that on this date in 1968 President Lyndon Johnson signed into law the proposal to celebrate the birthdays of George Washington and Abraham Lincoln on the third Monday in February, and to celebrate other holidays (like Columbus Day and Memorial Day) on the Monday closest to the traditional date.
Quote:
"Monday, Monday/ Can't trust that day/ Monday, Monday/ Sometimes it just turns out that way." — The Mamas and the Papas, "Monday, Monday"
June 27, 2010
In Line for Cash
Why is a PIN number four digits long? When John Shepherd-Barron and his team came up with their version of the automated teller machine, Shepherd-Barron told his wife he thought there should be a six-digit number to identify bank customers. His wife said it would be much easier for people to remember four digits than six, and that became the standard for PIN numbers. It was on this date in 1967 that the first ATM handed out cash to Reg Varney, a customer of the Barclays Bank in North London's Enfield. Shepherd-Barron, who received the OBE for his role as "the inventor of the automatic cash dispenser," said that his inspiration was the snack vending machine. He thought that if chocolate bars could be dispersed through a machine, it must be possible to disperse money in a similar way.
Quote:
"Folks can't carry around money in their pocket. They've got to go to an ATM machine, and they've got to pay a few dollars to get their own dollars out of the machine. Who ever thought you'd pay cash to get cash?" — Bill Janklow
June 26, 2010
Bar Codes
How did Morse Code inspire the bar code system? In 1948, two Drexel grad students, Bernard Silver and Norman Woodland, decided to come up with a system to record product information at the supermarket checkout counter. Drawing dots and dashes in the sand — á la Morse Code — Woodland pulled his fingers down from the symbols, making narrow lines from the dots and wider lines from the dashes. They used movie soundtrack technology to read the lines. Silver and Woodland received a patent for their system in October 1952. The system was tweaked and tested in several different industries, and on this date in 1974, a cashier swiped a 10-pack of Wrigley's Juicy Fruit gum across the scanner in the first commercial use of the UPC bar code. The pack of gum and the receipt are on display at the Smithsonian Institution in Washington, DC.
Quote:
"I don't shop because I need something, I just shop for shopping's sake." — Cat Deeley
Answer of the DayWho first said 'Big Brother is watching you'? Writer George Orwell coined the sentence " Big Brother is watching you," in his chilling work of science fiction, 1984. When the book came out in 1949, Orwell's dystopic projection of a totalitarian state was far in the future. Born on this date in 1903, Orwell was dying when he wrote the book; he succumbed to tuberculosis just a few months after it was published. In 1984, Orwell wrote of a society where people spoke Newspeak, a language of words with contradictory meanings designed to deceive and manipulate people, and where the individual — his thoughts, feelings and personality — would be completely dominated by the state. His earlier novel, Animal Farm, was a satire on Soviet-style Communism. Its publication was delayed more than a year — until WWII ended — because the British didn't want to openly criticize or embarrass their Russian allies.
June 24, 2010
Battle of Bannockburn
Was the heart of Robert the Bruce really buried in the Holy Land? Robert the Bruce had requested that his heart be buried in the Holy Land, and his embalmed heart was given to Sir James de Douglas to be taken to Jerusalem. But, Douglas never made it to Jerusalem. Bruce's heart, according to legend, was found and brought back to Scotland, where it was buried in Melrose Abbey. The rest of his body is buried in Dunfermline Abbey. Robert the Bruce was the first king of Scotland. It was on this date in 1314 that he and his troops trounced the English soldiers led by Edward II, in the Battle of Bannockburn, achieving independence for Scotland.
Quote:
"Go back to England and tell them... Scotland is free!" — William Wallace
June 23, 2010
Has anyone ever completed a game of Pac-Man all the way to the end? Believe it or not, a dedicated gamer named Billy Mitchell was the first person to complete a perfect game of Pac-Man. On July 3, 1999, he completed all 256 levels with a maximum score of 3,333,360 points, eating every fruit, pellet, blue ghost and dot without losing a life. It took him 6 hours. The iconic Pac-Man character — a yellow pizza with a slice missing — is one of the most recognized arcade game characters in history. The game is on display at the Smithsonian in Washington, DC, along with Pong and Dragon's Lair. Created by the Namco company in Japan, Pac-Man was released in the US just about 30 years ago today. It was meant to appeal to both genders, so the creator, Tōru Iwatani, developed a game that was low on violence and high on the cute factor.
Quote:
"Video games are bad for you? That's what they said about rock-n-roll." — Shigeru Miyamoto
June 22, 2010
The Cuyahoga River Today
Can a river catch fire? If the river is polluted enough, it can. That's what happened to Ohio's Cuyahoga River. On this date in 1969, the Cuyahoga River burst into flames, bringing into focus the river's dire condition. The sheer volume of trash and debris floating in the water, coupled with the chemicals, oil and sludge, made it impossible for fish to live there. This was not the first time the river had caught fire, but Time magazine picked up the story this time, and used it to illustrate the need for measures to clean up the environment. The Clean Water Act, Great Lakes Water Quality Agreement, the federal Environmental Protection Agency and the Ohio Environmental Protection Agency (OEPA) can all thank the Cuyahoga River for igniting the concern that led to their creation. Though it is still far from pristine, the Cuyahoga River — an American Heritage River — is now clean enough to host nearly 50 species of fish.
Quote:
"Not to wax nostalgic about the 1970s, but back then people got upset when they saw injustice. They got tired of seeing our air, land and water polluted. They were shocked when the Cuyahoga River in Ohio was polluted so badly it caught fire... Politicians had no choice but to take notice." — John Kerry
June 21, 2010
Lazy Summer Day
If it's June 21 in New York, is it June 21 in Australia? One answer is: much of the day. Because of the time zone difference, by 10AM in New York, it's already the next day in Australia. But, if you're really asking if the calendar is the same at the same time in both hemispheres, the answer is yes. While June 21 marks the beginning of summer in New York, it marks the beginning of winter in Australia. In the Northern Hemisphere, today is the summer solstice — the time when the North Pole is tilted toward the Sun. In the Northern Hemisphere, it's the longest day of the year. Some countries celebrate Midsummer Day with music, dancing and bonfires on this date (some celebrate it on June 24). Of course, all of this is reversed in the Southern Hemisphere, where this date marks the winter solstice, and the shortest day of the year.
Quote:
"Summer is a promissory note signed in June, its long days spent and gone before you know it, and due to be repaid next January." — Hal Borland
June 20, 2010
How did they train the shark that starred in 'Jaws'? Very carefully. No, seriously. The star of Jaws was actually a mechanical shark nicknamed Bruce. In fact, director Steven Spielberg thought that it was so obvious that Bruce was fake that he decided to keep him out of sight until nearly the end of the movie, which proved to build suspense and fear in the audience. Jaws was released thirty-five years ago today, on June 20, 1975, and became the first summer blockbuster. Three different sharks were built for the filming: a full version for underwater shots, a half-shark that moved from camera-left to right and another one that moved from camera-right to left. They malfunctioned often and the first time the full-version went into the water, it sank right to the bottom and had to be pulled back out.
Quote:
"I've discovered I've got this preoccupation with ordinary people pursued by large forces."
— Steven Spielberg
<
June 19, 2010
Where did the word 'rodeo' come from? Rodeo is a Spanish word, derived from the word rodear, meaning "to go around." Its most common English translation is "round-up." Canadian rancher Earl W. Bascom, born on this date in 1906, had a hand in many innovations in the rodeo world. He was involved in developing the first side-delivery bucking chute, the first reverse-opening side-delivery bucking chute (which became rodeo's standard design), the first hornless bronco saddle, the first one-hand bareback rigging and the first high-cut rodeo chaps. He and his brother Weldon produced the first nighttime rodeo, held under electric lights in 1935.
Quote:
"You can do anything that you wanna do, but uh-uh, don't step on my cowboy boots." — Hank Williams Jr.
June 18, 2010
Randy Newman with Woody and Buzz
What films get selected for the National Film Registry? Films that are at least ten years old and are "culturally, historically or aesthetically significant" may be chosen for the National Film Registry for preservation in the Library of Congress. Up to 25 films a year may be selected. So far, more than 500 films have been included in the National Film Registry, with only five movies having been added to the list in their first year of eligibility: Do the Right Thing, Raging Bull, Goodfellas, Fargo and Toy Story. Toy Story 3 is being released today in the US. It follows the further adventures of Woody, Buzz Lightyear and the gang and, among other things, introduces Barbie to Ken.
Quote:
"Well, although you tried to terminate me, revenge is not practiced on my planet... But we're not on my planet...are we?" — Buzz Lightyear, Toy Story
June 17, 2010
The 18th Hole at Pebble Beach
How old was the oldest winner of the US Open Golf Championship? Forty-five-year-old (plus 15 days) Hale Irwin is the oldest US Golf Open champion. John McDermott, at 19 years and 315 days, is the youngest so far. The first winner of a US Open (in 1895) was 21-year-old Horace Rawlins; he took home $150 in prize money. This year, the stakes are considerably higher; the winner will take home well over $1 million. Players tee up today at the Pebble Beach Golf Links to start the 2010 US Golf Open Championship. This is the fifth time the championship will be hosted by Pebble Beach, considered one of the world's most beautiful golf courses.
Quote:
"If you're not just a little bit nervous before a match, you probably don't have the expectations of yourself that you should have." — Hale Irwin
June 16, 2010
Don't Check In At the Bates Motel
Was 'Psycho' based on fact? The main protagonist in Psycho, Norman Bates, was inspired by serial killer Ed Gein. Psycho premiered fifty years ago today and changed the way we look at innocent pastimes like taking a shower, stopping off at a small out-of-the-way motel and taxidermy. It remains the movie that stars Janet Leigh and Anthony Perkins are best remembered for, despite the fact that Leigh doesn't make it past the famous shower scene, less than halfway into the film. Director Alfred Hitchcock insisted that viewers not be admitted into the theater once the movie had already begun; lines formed outside the movie theaters well before each viewing. And Leigh, after spending seven days shooting the infamous shower scene, avoided taking showers ever after.
Quote:
"A boy's best friend is his mother." — Norman Bates, Psycho
Friday July 2, 2010:
offClear
Dow 9,686.41 -46.12 NASDAQ 2,091.79 -9.57 S&P 1,022.54 -4.83
Thursday July 1, 2010:
No entriesClear
Stock market down DOW 9,732.46 -41.56 NASDAQ 2,101.36 -7.88 S&P 1,027.36 -3.35
Wednesday June 30, 2010:
Arroyo GrandeClear
NeoSmart Technologies
; connecting ideas
Tuesday June 29, 2010:
Arroyo GrandeClear
NeoSmart Technologies
; connecting ideas
Monday June 28, 2010:
Arroyo GrandeToday: Cloudy early with peeks of sunshine expected late. High 67F. Winds WSW at 10 to 15 mph.
NeoSmart Technologies
; connecting ideas
Sunday June 27, 2010:
Arroyo Grande
Saturday June 26, 2010:
Arroyo Grande
Forecast Details:
Partly cloudy skies. High 64F. Winds WNW at 10 to 20 mph
Thursday June 24, 2010:
Arroyo Grande
Wednesday June 23, 2010:
Arroyo Grande
# Today: Cloudy early with peeks of sunshine expected late. High 66F. Winds W at 10 to 15 mph.
# Tonight: Partly cloudy skies this evening will become overcast overnight. Low 49F. Winds NW at 5 to 10 mph.
# Tomorrow: Cloudy skies early will become partly cloudy later in the day. High near 65F. Winds NW at 10 to 20 mph.
I just happened on to this site and it is pretty nice ...lot's of video music from the 80's & 90's...
Tuesday June 22, 2010:
Arroyo Grande
Forecast Details:
Mostly cloudy early, then sunshine for the afternoon. High 66F. Winds WNW at 10 to 15 mph.
I just happened on to this site and it is pretty nice ...lot's of video music from the 80's & 90's...
Monday June 21, 2010:
Pismo Beach
I just happened on to this site and it is pretty nice ...lot's of video music from the 80's & 90's...
Father's Day -- Sunday June 20, 2010:
Pismo Beach
The annual (missed a couple of years due to political reasons I think) car show is happening and Pismo is overflowing with tourist. There are over 1,000 entrants in the exhibits and Price Street is closed from Dolliver to Pomeroy excepting cross traffic at Wadsworth. I rode over there yesterday and cars were parked along Price Street, the 101 section through Shell Beach, all the way to the Best Western, beyond the Shorecliff and just South of dinosaur park.
The traffic on the Freeway heading South was backed all the way to the Avila on ramp
I rode out to Avila and although it was a bit windy there it was the normal sunny beach with a lot of beachgoers enjoying the beautiful bay;(although today Pismo was also sunny and warm and probably not quite as windy as Avila (not normal for Avila) was today.
I just happened on to this site and it is pretty nice ...lot's of video music from the 80's & 90's...
Saturday June 19, 2010:
Capitalism
I just watched the film of Michael Moore's, Capitalism, and it was very
compelling to me. Michael does tend to, in my opinion over emphasize (perhaps
dramatize is better word) some examples but everything he films is real
life. It is very disturbing to realize just what is happening; even though
I have suspected all of the things the film depicts seeing the evidence
(so to speak) is still a jolt. The film should be viewed by everyone who
really cares about what is happening as we live day by day. What can you
say, it is really happening, it is real events documented; no doubt there
is 'some' (I suspect but do not know this as a fact) manipulation of film
footage to emphasize the topic; still the facts are extremely clear if
one chooses to see.
Stock MarketI have experienced another chilling week in the stock market and I cannot come to any conclusion that is positive about the market; I strongly suspect that we will face a severe crash before the end of the year and possibly in the immediate future; my best guess (but there is no reason to use my guess as a guide) that the crash will mimic the events of 2008.
BP's Tony Hayward stonewalls House committee; BP's chairman says someone else will be appointed to oversee the U.S. Gulf situation and it is assumed that the Gulf will no longer be the CEO's direct charge; the announcments so far are not perfectly clear as to the objective and or ramifications (as to the CEO).
Friday June 18, 2010:
BP's Tony Hayward stonewalls House committee
Thursday June 17, 2010:
Following meetings at the White House Wednesday
BP says it's sorry and guarantees $20B for Gulf
more...
Wednesday June 16, 2010:
With BP's stock so beaten up it is time to evaluate the entire situation.
Here is another article regarding this situation...
BP says it's sorry and guarantees $20B for Gulf
more...
Tuesday June 15, 2010:
With BP's stock so beaten up it is time to evaluate the entire situation.
Here is another article regarding this situation...
10 Critical Facts about BP and the Gulf of Mexico Crisis
- On May 10, BP said it had already spent $350 million as a result of the Deepwater Horizon accident.
- By contrast, in the first three months of this year, BP made $93 million per day in pure profits. This does not include the huge salaries and perks of its executives that are considered “costs,” not profits. Thus, BP has spent what might seem to many people to be a big number on the accident ($350 million) but it is only equivalent to 4 days of pure profits for BP.
- BP has a market value (BP’s assets) of $152.6 billion.
- So far, BP has only paid 295 claims out of the 4,700 claims made against the company for damages and losses incurred from the Deepwater accident.
- JP Morgan Chase Bank owns almost 30 percent of BP’s common stock.
- BP is the largest producer of offshore oil drilling in the Gulf of Mexico.
- Citigroup analysts have formally advised investors not to worry too much about “the likely costs to the company [BP].” The Citigroup analysis notes that punitive damages against Exxon for the Exxon-Valedz oil spill in 1989 were originally set by the courts at $5 billion but reduced by 90 percent when the case reached the Supreme Court in 2008. The total cost to Exxon was $500 million in compensation damages and $500 million in punitive damages. The total cost imposed on Exxon after 20 years of litigation amounted to only $1 billion, or the equivalent of just 12 days worth of BP’s pure profits ($93 million per day) in the first three months of this year. Because of the Oil Pollution Act of 1990, BP and any other oil company that is responsible for an offshore oil accident is not legally required to pay more than $75 million in damages above the oil recovery costs. Thus, the government’s response to the Exxon Valdez accident was to actually protect the Oil Giants by limiting their liability and risk exposure in the event of a catastrophic accident. Again, the $75 million limit is less than 1 day of BP’s pure profits in 2010.
- BP is using carefully crafted language to imply that it may cover all the “legitimate” costs and “legitimate” damages (and they would presumably be the entity to determine which claim is legitimate) and that this amount will surpass the damage cap of $75 million set by the Oil Pollution Act. States BP’s executive vice president David Nagel, “A $75 million liability is not where our head is at this moment.” The most important three words of Nagel’s quote is “at this moment.” The law, as written, entitles BP’s executives to be the deciders of whether to pay or not to pay any damages above the $75 million cap. Right now the company is under the glare of global publicity and it can say whatever it wants to suggest that it is taking full responsibility.
- BP has a long history of safety violations and reckless behavior. They chose not to equip Deepwater Horizon with an acoustic trigger, a last-resort option that could have been activated from a remote location triggering the well to shut down even if it was damaged badly. This piece of equipment is required in several countries, but not in the United States. Though BP does employ them on their rigs offshore in England, they choose not to in the Gulf of Mexico. This piece of equipment costs $500,000 – an amount they make in pure profits in less than 8 minutes (based on 2010 earnings). BP also chose not to install a deep-water valve, which could have served as another last-resort option for cutoff. BP has been fined many times by the Occupations Safety and Health Administration (OSHA), and is the recipient of their largest fine ever. OSHA Deputy Assistant Secretary of Labor Jordan Barab has this to say about BP: “BP has systemic safety and health problems.”
- Unless there is an asset seizure and the placement of those funds in a trust to provide for full compensation and relief for the harmed people and the damaged environment, BP and its executives will avoid real responsibility to remedy the suffering and damage caused by their reckless and greedy search for super-profits. In fact, if BP and Big Oil is left untouched by government intervention the whole Deepwater catastrophe could turn out to be a source of more profits for Big Oil. A Citigroup analyst report states: “Reaction to the Gulf of Mexico oil leak is a buying opportunity.”
Monday June 14, 2010:
With BP's stock so beaten up it is time to evaluate the entire situation.
BP is the third largest energy company in the entire world. They are the fourth largest company in the entire world, and they are quite possibly one of the most hated companies in the world. Their stock price has lost over 50% in 50 days; officials are reporting that this is the worst oil disaster in American history. The company will more than likely have federal lawsuits, at least four state lawsuits, countless class action lawsuits, and environmentalists will have their lawsuits aimed at taking down BP. So, with that information, it is time to purchase BP. The company is actually very stable, although a ‘black swan’ could take the company down. A hostile takeover has been rumored; “Exxon (XOM), Chevron (CVX) licking their chops.” However, that will be unlikely, Cash Looking at BP’s balance sheet they have $8.43 Billion cash, and the ability to generate $7 billion per quarter. This is one of the strongest money making companies in the world, so with an estimated $30 Billion in free cash-flow per year they are a very ‘green’ company. Free Cash Flow per year: $30 Billion Debt Current liabilities for first quarter are $10 Million, this was before the oil spill, since then the company has incurred an estimated liability loss of $15 Billion on the low end and $52 Billion on the high end. Estimated Liability: $52 Billion This doesn’t look so bad now, a company generating $30 Billion a year in free cash flow could slice the dividend in half to .42 cents and generate an additional $5 Billion in free cash flow, and borrow a total of $17 Billion, half of a year of free cash flow, and pay the highest estimates. However, due to laws instituted by the Valdez spill BP may get off much lighter than the $52 Billion. BP Getting Bought Out Why a hostile takeover won’t happen to BP. Granted, BP trades as an ADR, but the company operating within the United States still has to go by the rules and laws governing the market that the company is trading on. BP is the fourth largest company in the world. Any company that is in a position to attempt a takeover will undoubtedly face lawsuits regarding monopolization laws, so the best suited for the takeover is Exxon. Even if the lawsuits held no merit, major banks hold very large positions of BP and liquidity is fading, which means the banks are backed into a corner and being averaged into BP at anything below $35 is quite frightening when rumors of takeovers are widespread. So the banks will file legal action to avoid BP being bought out, or at least prolong the cause. If a company does manage to purchase BP and survive the lawsuits, they will be faced with a whole new pickle. They will have purchased BP for roughly $50 Billion dollars and still face the clean up in the Gulf, another $50 Billion, so they will have used $100 Billion dollars to purchase the company, and then spend years in court getting the acquisition completed, in which federally speaking, the company would not be legally allowed to touch the oil spill, thus increasing the damage 10 fold. The government won’t let that happen. The Black Swan The Black Swan mentioned is if the US has a horrible hurricane season. If BP cannot get a lid on the oil by September at the latest the oil spill could be much worse and the costs I would suspect will go up 10 fold. Supposedly though, the $52 Billion from environmental scientists have said that they included a horrid hurricane season in their estimates, and if that is the case this black swan has no merit. Buy BP So, BP isn’t going anywhere. They can’t be bought out, and they have enough cash to payout the worst case scenario. The company did screw up, the stock tumbled and may continue to crumble for a short time (until they get the oil capped.) and then this stock will resume its 84 cent dividend, and climb back to $60 a share. Purchase 1000 shares of BP at $30 a share for $30,000 and write covered calls for the company netting anywhere between $250-$2500 a month, (depending on knowledge and risk level) that $250*12=$3,000 then the dividend $3.36*1000=$3360. So you make $6,360 a year or 100 more shares of BP a year so by year 10 you will have more than doubled or tripled your money. Disclosure: Long BP
Here is a good article about the Housing Market---
update
from Market Watch.
Sunday & Monday June 14, 2010:
BP is the third largest energy company in the entire world. They are the fourth largest company in the entire world, and they are quite possibly one of the most hated companies in the world. Their stock price has lost over 50% in 50 days; officials are reporting that this is the worst oil disaster in American history. The company will more than likely have federal lawsuits, at least four state lawsuits, countless class action lawsuits, and environmentalists will have their lawsuits aimed at taking down BP. So, with that information, it is time to purchase BP. The company is actually very stable, although a ‘black swan’ could take the company down. A hostile takeover has been rumored; “Exxon (XOM), Chevron (CVX) licking their chops.” However, that will be unlikely, Cash Looking at BP’s balance sheet they have $8.43 Billion cash, and the ability to generate $7 billion per quarter. This is one of the strongest money making companies in the world, so with an estimated $30 Billion in free cash-flow per year they are a very ‘green’ company. Free Cash Flow per year: $30 Billion Debt Current liabilities for first quarter are $10 Million, this was before the oil spill, since then the company has incurred an estimated liability loss of $15 Billion on the low end and $52 Billion on the high end. Estimated Liability: $52 Billion This doesn’t look so bad now, a company generating $30 Billion a year in free cash flow could slice the dividend in half to .42 cents and generate an additional $5 Billion in free cash flow, and borrow a total of $17 Billion, half of a year of free cash flow, and pay the highest estimates. However, due to laws instituted by the Valdez spill BP may get off much lighter than the $52 Billion. BP Getting Bought Out Why a hostile takeover won’t happen to BP. Granted, BP trades as an ADR, but the company operating within the United States still has to go by the rules and laws governing the market that the company is trading on. BP is the fourth largest company in the world. Any company that is in a position to attempt a takeover will undoubtedly face lawsuits regarding monopolization laws, so the best suited for the takeover is Exxon. Even if the lawsuits held no merit, major banks hold very large positions of BP and liquidity is fading, which means the banks are backed into a corner and being averaged into BP at anything below $35 is quite frightening when rumors of takeovers are widespread. So the banks will file legal action to avoid BP being bought out, or at least prolong the cause. If a company does manage to purchase BP and survive the lawsuits, they will be faced with a whole new pickle. They will have purchased BP for roughly $50 Billion dollars and still face the clean up in the Gulf, another $50 Billion, so they will have used $100 Billion dollars to purchase the company, and then spend years in court getting the acquisition completed, in which federally speaking, the company would not be legally allowed to touch the oil spill, thus increasing the damage 10 fold. The government won’t let that happen. The Black Swan The Black Swan mentioned is if the US has a horrible hurricane season. If BP cannot get a lid on the oil by September at the latest the oil spill could be much worse and the costs I would suspect will go up 10 fold. Supposedly though, the $52 Billion from environmental scientists have said that they included a horrid hurricane season in their estimates, and if that is the case this black swan has no merit. Buy BP So, BP isn’t going anywhere. They can’t be bought out, and they have enough cash to payout the worst case scenario. The company did screw up, the stock tumbled and may continue to crumble for a short time (until they get the oil capped.) and then this stock will resume its 84 cent dividend, and climb back to $60 a share. Purchase 1000 shares of BP at $30 a share for $30,000 and write covered calls for the company netting anywhere between $250-$2500 a month, (depending on knowledge and risk level) that $250*12=$3,000 then the dividend $3.36*1000=$3360. So you make $6,360 a year or 100 more shares of BP a year so by year 10 you will have more than doubled or tripled your money. Disclosure: Long BP
Here is a good article about the Housing Market---
update
from Market Watch.
Saturday June 12, 2010:
NEW YORK (MarketWatch) -- BP PLC is expected to defer payment of about $2.5 billion in second-quarter dividends by placing the funds in an escrow account until the company can determine its liabilities from the Gulf of Mexico oil spill, the Times of London reported Friday in its online edition, citing people familiar with the situation.
The newspaper said future dividends are likely to be treated in the same manner until BP is on more solid footing, as the oil giant buckles under pressure caused by its massive oil leak in the Gulf of Mexico.
Friday June 11, 2010:
- Scientist now say 40,000 bbls oil per day out of BP's Blow Out one mile below the Ocean; Do you really think BP (one of the biggest companies and always an oil company {knowledge] did not know this originally...
- But why does BP continue each day to compound their mistakes? Nothing fits here, I don't know what it is but nothing fits.
Thursday June 10, 2010:
- There was no entry for Wednesday June 9, 2010.
- The Gulf fiasco continues and BP continues to shoot itself in the foot or so it seems.
- More and more the finger pointing is turning back to the U.S. Government and there is ample reason so it seems.
- This is the type of situation that should have prompted a quick resolution and the President it seems simply does not know what to do to resolve the problems. My thought is that he/they simply did not know what to do. BUT that will not fly in light of the serious problems that have developed.
Tuesday June 8, 2010:
MADRID (MarketWatch) -- U.S. stock market futures moved firmly higher as the opening of Wall Street neared on Tuesday, drawing support from overnight comments from Federal Reserve Chairman Ben Bernanke who said he didn't expect to see a double-dip recession in the U.S. and overcoming jitters from a Fitch warning over the U.K.
Doubling earlier levels, futures for the Dow Jones Industrial Average rose 46 points at 9,840, while those for the S&P 500 rose 5 points to 1,053. Futures for the Nasdaq 100 rose 9.75 points to 1,805.50.
U.S. stocks took a beating on Monday, with the Dow industrials slumping below the lows they hit during last month's "flash crash," as worries about the euro and global growth kept markets volatile. A report that consumer credit jumped also weighed on stocks.
Monday June 7, 2010:
Gulf Oil Spill: Now the reality "Clean up is long awesome job ahead even in best case scenario".
more:
U.S. stock index futures edge slightly higher Monday following heavy losses in the previous session...
Monday June 7, 2010:
New York Times article re Gulf Oil Spill and BP
Saturday June 5, 2010:
- The Stock Market has another rough start for June losing 324
points since the first of the month to close Friday @ 9,932 ---
The Dow Jones Industrial Average (
DJIA
9,932, -323.31, -3.15%) fell
324.06 points, or 3.2%, to 9,931.22, off 2% for the week. The
third biggest point loss of the year snapped a two-session winning
streak, it being the first for the Dow in more than a month.
- The S&P 500 (
SPX
1,065, -37.95, -3.44%) fell
37.95 points, or 3.4%, to 1,064.88, down 2.3% for the week,
while the Nasdaq Composite (
COMP
2,219, -83.86, -3.64%) declined
83.86 points, or 3.6%, to 2,219.17, off 1.7% from the prior
Friday's close.
- Reasons; there is a grab bag, just reach in and pull one out.
Cost of tea in China sounds reasonable to me... but the lower
than expected new jobs report numbers was tossed around quite
a bit as was the news that Hungary was (maybe) facing a financial
crisis...hmmm...okay, think I will stick with the China argument...
- Oh yeah, our ongoing Gulf / BP fiasco...Think about it... BP
recently reported earnings (for one quarter) of 17 BILLION (that's
with a 'B')...and this company has been doing well financially
for a good long while so one could reasonably assume that the
earnings for a quarter of such a company, such as BP, would really
not be a lot more than chump change.
Right now the 52 week range of BP is 36.20 - 62.38 and they closed
Friday @ $37.16 (after hours they are up about a dime)...assuming
the high was when they became entangled in the blowout because
they were cutting corners the stock value has decreased $25.22
and their market cap on Friday's close is listed at 116.34B still
one of the
largest
companies in the world
(
XOM
@ 279.65 --
GE
@ 167.73 [once worlds largest]
MSFT
@ 226.02 [also once worlds
largest]
AAPL
@ 232.91 [Apple? they own 1% of the computer market?]
WMT
@ 189.76) by market cap which does not really mean a lot unless
you know where all those billions of shares lie (for instance,
the Walton's and upper WalMart management are very likely worth
several times the companies market cap, if I said how much you
wouldn't believe it but it is a bunch) ---
The point I want to make is that while BP has lost a tremendous
dollar amount of market share capitalization the company itself
has not lost any more of its assets than it has paid out in cash
which thus far is only about a billion by their report which you
can safely assume is about 500 million---they lie about their
birth date why won't they lie about anything else??
Cut to the chase here...
what I am getting at is BP is a very big company -- the President
or anyone else cannot push them around successfully and should
not attempt it (you notice the President has used some restraint)...BP
will come out of this mess doing just fine and remember the stock
that has changed hands??? well a lot of it sold at pretty high
numbers and bet your bottom dollar that the same sellers will
be buyers later on and maybe already...it is not too likely BP
will get too much lower but then again this is the same market
place that has dumped trillions on the jobs report and Hungary....go
figure...
- In light of all I said above and in my opinion I still believe
that BP is a piss-poor operator and they should have left the
drilling of their well to TransOcean and had they done that then
this situation would not have happened. Almost all operators
(usually the oil company) are cheap and try to cut corners; the
drilling contractor knows the drilling and has to be able to curtail
the operators ignorance. Apparently this did not happen in this
situation and there may be more fault with TransOcean than has
been explored thus far but by no means does this excuse BP and
they must be held accountable ...Don't bank on it though as they
will use their money to buy their way out (notice the big ad companies
they have hired and the huge amount of money they are spending
telling you how nice they are)--- all this is very likely at the
expense of the victims...Bet
your lungs on it..... Oh,
here
is an article
you may
find interesting.
Comment will resume Monday June 7, 2010... if all goes as planned...
Friday June 4, 2010:
The format of this site will be changing and there
will not be
regular updates for a couple of weeks to apx. June 15th. (experiencing
technical problems)
- Not that it matters now but BP CEO "Hey-wood" admits what is
already known that the company was not in the slightest prepared
or capable of dealing with a blow out.
- And for Day 45 The bungling in the Gulf continues; we still
have heard nothing but bullshit from anyone including the President.
- Mr. President! the time has long past that compentent operators should be handling the controls of the blow-out--further delay will produce the same results---we do have people that could manage this situation competently.
- This seems a safe daily statement; BP has validated its incompetence
and continues to trash the Gulf.
-
When the universe starts looking orderly it is just messing
with you.
ednesday May 19, 2010 -- <no updates between> Friday May 14,
2010
- Wednesday:
- And it did exactly that with murder of me both Monday and Tuesday
as well as Friday and actually I have had only 3 gaining days
in the entire month of May....very bad month.
- I will try to get updated here today if at all possible but
I have a busy schedule and may not get back (here).
Friday's entry:
- So the market says--- if you thought that was bad look at this
one... another of my worst days...
What is really bad is that the market has given me three exit points that
would have been fantastic and I was not wise enough to use them.
November 7, 2007:
Happy Birthday to Me!
.... Well, this is it, Birthday number sixty-nine for me is here. Man, I never would have thunk it! Still I am so happy to be where I am and if it has to be this high of a number then so be it..... I look forward to a few (quite a few I hope) more, although I must add, "not too anxiously", and by that I merely mean that it would be okay with me if the time didn't sail by so quickly.....slooooooooow dooooooooown a little (lot).
November 7: --- Okay, so the list is not all that impressive but include the entire month of November and that list certainly is impressive!
Historical Events --- here.
More Historical Events for November 7 -- here.
Little known --- National Bittersweet Chocolate With Almonds Day
Souce: NCA - National Confectioners Association Web site: www.candyusa.org/Classroom/calendar.html
Some folks born on this day.....
Cortez Cate, born on November 7, 1938
Billy Graham born on November 7, 1918
Keith Lockhart (1959)
Joni Mitchell (1943) ("Both Sides Now" song with some relevance.....)
Dean Jagger (1903)
Leon Trotsky (1897)
Al Hirt (1922)
Marie Curie born on November 7, 1867
Archives: Prior
information posted to this page:
(these pages will not load as they
are cloaked)
- March 2010
- Dec
2008---Nov 2007
- April_2007_Oct_2007
- March - June 2007;
---
- March 2007;
- <Page
1 Jan-Feb 2006; --
- <Page
2 Mar-July 2006;--
- Page 3 Aug
Sept 2006;--
- Page 4 May 9, 2005;
--
- Page 5 May 2005 - Jan 2006;
email: ( fight spammers by not using email hyperlink) cecate at pacbell dot net
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