Boeing sys 787 Dreamliner first flight delayed; shares fall

Boeing Co. said Tuesday it has again delayed the first test flight of its long-awaited 787 jetliner, citing a need to reinforce part of the aircraft.

Source: L.A. Times - Business | 24 Jun 2009 | 7:00 am

Give Me Some Credit

Ryan Bubb and Alex Kaufman, two Harvard economics doctoral candidates, have a great article in today's New York Times explaining how a new generations of credit cards could look in the wake of new credit card regulation legislation. They write:

We have performed a study that compared credit cards issued by investor-owned banks to those issued by customer-owned credit unions. We found that credit unions are less likely to charge the fees and penalties that the new act hopes to eliminate -- and when they do, they charge less than other issuers.

Meanwhile, Moody's Investors Service re-affirmed today that the U.S. government has a "solid triple-A" credit rating. The rating agency warned, however, that if American debt continues to increase over the next two years, that high rating could be at risk.

» E-Mail This     » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 23 Jun 2009 | 3:34 pm

$2 Trillion Debt Is "Manageable"

The Acting Assistant Secretary for Financial Markets, Karthik Ramanathan, gave a bit of a pep talk yesterday regarding US debt issuance for 2009 and 2010. People should take comfort knowing that the US has funded nearly 80% of its total "expected borrowing needs" of $2 trillion to fund the fiscal deficit for this year and is "well situated" on its funding needs for next year. However, left out of this feel good speech was any guidance on the administration's demand forecast for US debt that falls into the "unexpected borrowing needs category" on the off chance the government's macroeconomic assumptions are a tad too optimistic.

US Treasury: Funding Needs Large But "Manageable" [Dow Jones via Nasdaq]

Sponsored Topics: Business - Dow Jones & Company - US - United States Department of the Treasury - Deficit
Source: Dealbreaker | 23 Jun 2009 | 3:01 pm

First Time Buyers Jump In

The National Association of Realtors says sales of previously owned homes rose 2.4 percent last month. Falling prices and increasing foreclosures are likely the reasons for the jump -- the median home price fell 17 percent last month while foreclosure filings surpassed 300,000.

Tax breaks for first-time buyers are also helping out the market. Of the people who bought homes in May, 29 percent were first-time buyers. President Obama's stimulus plan includes an $8,000 tax credit for people who purchase their first home before December 1.

» E-Mail This     » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 23 Jun 2009 | 3:00 pm

Bernie Madoff's Lawyer Asks For Leniency In Sentencing, No More Than 12 Years

Ira Sorkin has put it out there that he'd like his client to get less than life when he's sentenced on June 29. Also, apparently Ponzi Boy is planning on speaking about "the shame he feels and the pain he's caused," and attempt to paint himself as a victim with regard to "the death threats and anti-Semitic e-mails he's received."

Update: This is good-- Sorkin is asking that Bernie get twelve years.

Sponsored Topics: Antisemitism - Bernard Madoff - Death threat - Race-Ethnic-Religious Relations - Hate
Source: Dealbreaker | 23 Jun 2009 | 2:45 pm

Stocks waver as investors await Fed statement (AP)

AP - A rise in existing home sales did little to stoke the stock market before the Federal Reserve's decision on interest rates.

Source: Yahoo! News: Stock Markets News | 23 Jun 2009 | 2:35 pm

Hiring Watch '09: CIA

As previously mentioned, the Central Intelligence Agency wants you, yes you, up in its business. The Company will be conducting interviews in the city this summer, and though its website claims you had to submit a resume by yesterday to be considered, there's probably some wiggle room there. While starting salaries aren't as high as you'd probably like ($48,682 - $95,026), spokeswoman Marie Harf, thinks the "deeper sense of patriotism" than you'd get working for, say, Citi, is a decent trade. She also adds that many of you have no other options (unless you count choosing between what they're offering and zero dollars), which we find a tad bitchy but not necessarily untrue. Plus, there's the badass factor of telling people you work for The Agency, even if you're not staffed in the field and, let's be honest, none of you fairies are cut out for something that dangerous.

According to "Jim," who previously worked at an unnamed bulge bracket bank, and took a gig with the CIA after 9/11, working in finance is cool but if you're not actively shutting down the next attack on the country, you're not doing much at all. "Even though we were doing important work in investment banking, you don't get the feeling every day that you are making a contribution or doing something that matters. You might help a company go to the bond market and get some money, but is that really using all of your talents and abilities ... [to] avoid another 9-11? I wanted to find a responsibility here that would leverage my educational background but also my finance background." Interested? Here's what they're looking for:

Ideally, applicants are "specialists in international banking systems, financial markets, financial transactions, financial instruments, and energy. Economic analysts will also assess illicit financial activities, including networks used by terrorist and criminal groups, financing and procurement of weapons of mass destruction, money laundering, and corruption among foreign governments and companies."

"The skills sets are similar, trying to understand trends," says a senior banker with a Wall Street boutique firm, adding that the CIA's attempts at recruiting from Wall Street come at a time when many professionals who have lived through the financial crisis have to be "rethinking their priorities."

Oh, and there's this:

Sponsored Topics: Central Intelligence Agency - Tim Weiner - Weapon of mass destruction - Money laundering - Wall Street
Source: Dealbreaker | 23 Jun 2009 | 2:32 pm

Boeing warns of more Dreamliner delays

The aircraft maker warned of fresh delays to the troubled 787 Dreamliner, its flagship new aircraft development programme, just a week after saying that the long-awaited start of the flight test programme was on track
Source: Financial Times - US homepage | 23 Jun 2009 | 2:30 pm

Caption Contest Tuesday

Dick Fuld, pictured with former LEH executive vice-president Scott Freidheim, enjoying himself at a wedding in Paris.

Sponsored Topics: Vice president - Paris - United States - History - Travel and Tourism
Source: Dealbreaker | 23 Jun 2009 | 2:27 pm

Williams Says U.S. Bond Market Will Continue to Be Steady

Source: Bloomberg - All Podcasts | 23 Jun 2009 | 2:27 pm

Existing Homes Sales Bump, Very Misleading

While existing home sales are not a true barometer of new home sales, there was at least a bump up existing home sales for May.  This rise of 2.4% to 4.77 million annualized units compares to 4.66 million units annualized in April and compares to Dow Jones consensus estimates of 4.80 million.  Before you celebrate [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 2:26 pm

Economic Report: U.S. home prices drop 0.1% in April: FHFA

U.S. home prices fall 0.1% in April, the Federal Housing Finance Agency reports, and decline 6.8% in the past year.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:26 pm

Home sales rise - while prices fall 17%

Existing home sales rose in May, as increasingly affordable home prices and a first-time tax credit attracted hesitant buyers.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 2:23 pm

TDF chief held hostage in latest French 'bossnapping' case

Protesting workers claimed to be holding hostage the executive chairman of TDF, the French television broadcast operator, in the latest case of bossnapping in France.


Source: Latest Business News from Times Online | 23 Jun 2009 | 2:20 pm

Fresh delay for Boeing Dreamliner

Boeing delays the maiden flight of its new Dreamliner 787 aircraft, the latest postponement to hit the project.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 2:20 pm

Economic Report: Lower prices lure home buyers in May

Falling prices boost sales of pre-owned homes in May to the highest level since October, the National Association of Realtors estimates.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:20 pm

Bank charges court case reaches House of Lords

A longrunning legal battle that could result in banks being forced to pay back billions of pounds to customers reached a key stage today.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 2:17 pm

Bhar Says Gold May Rise to $1,100 in 2010

Source: Bloomberg - All Podcasts | 23 Jun 2009 | 2:17 pm

Stocks edge up after rise in existing home sales

A rise in existing home sales is doing little to stoke the stock market. Stocks are up modestly after the National Association of Realtors said May sales of existing homes rose 2.4...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:17 pm

Wall Street pares gains after home sales data (Reuters)

Reuters - Stocks pared gains on Tuesday after data showed sales of previously owned homes rose at a slower-than-expected pace in May.

Source: Yahoo! News: Business | 23 Jun 2009 | 2:16 pm

Wall Street pares gains after home sales data (Reuters)

Reuters - Stocks pared gains on Tuesday after data showed sales of previously owned homes rose at a slower-than-expected pace in May.

Source: Yahoo! News: Stock Markets News | 23 Jun 2009 | 2:16 pm

May U.S. existing home sales rise 2.4 percent

WASHINGTON (Reuters) - Sales of previously owned homes in the United States rose at a slower-than-expected pace in May, an industry survey showed on Tuesday, pointing to a sluggish recovery from the severe economic recession.
Source: Reuters: Business News | 23 Jun 2009 | 2:15 pm

Russian economy contracts 11% in May

The Russian economy contracted by 11 percent in the month of May compared with the same month last year, the government said Tuesday, in the latest blow to hopes of a swift recovery in the...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:14 pm

U.S. CEOs' view of economy a bit less bleak: survey

BOSTON (Reuters) - U.S. chief executives took a slightly less grim view of the economy in the second quarter, but still plan to cut jobs and capital spending, according to a Business Roundtable survey released on Tuesday.
Source: Reuters: Business News | 23 Jun 2009 | 2:11 pm

A Superior Way To Get Over 'The Hump'

Superior Small Lodging Properties in Greater Fort Lauderdale Lend a Helping Hand with "Wednesdays are Free" Summer Promotion FORT LAUDERDALE, Fla., June...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:10 pm

Energy Stocks: Energy stocks get analyst lift after stumble

Energy stocks rose out of the gate after big losses in the previous session, with analysts issuing upbeat comments on oil majors Chevron and ConocoPhillips.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:10 pm

Home resales in U.S. rise 2.4% in May to 4.77 million rate

Existing home sales in the U.S. rose in May for a second month as record foreclosures caused prices to drop.
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 2:09 pm

Home resales in U.S. rise 2.4% in May to 4.77 million rate

Existing home sales in the U.S. rose in May for a second month as record foreclosures caused prices to drop.

Source: L.A. Times - Business | 23 Jun 2009 | 2:09 pm

London Markets: Thomson Reuters and drugmakers gain in London

Gains from media giant Thomson Reuters and drugmakers help London shares to modest advances.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:08 pm

City 'failing to learn lessons' of crisis

Bankers and regulators are already showing signs of forgetting the lessons of the "biggest financial crisis in the history of market capitalism", the City's top regulator warned
Source: Financial Times - US homepage | 23 Jun 2009 | 2:07 pm

Putin to meet Total, Novatek chiefs on Wed

MOSCOW, June 23 (Reuters) - Prime Minister Vladimir Putin will meet the heads of French oil major Total and Russia's No.2 gas producer Novatek to discuss the firms' cooperation in Russia, Putin's spokesman...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:07 pm

Airline Stocks: Airline stocks resist market advance as oil gains

Airline stocks hold steady early Tuesday, mostly resisting a mild broader-market rally as oil bounces back from the prior session’s steep decline.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:07 pm

Confidence in Obama's stimulus plan falling: poll

Americans’ confidence in President Barack Obama’s $787 billion economic stimulus plan is waning, a new Washington Post-ABC News poll finds, even as his overall approval rating remains high.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:07 pm

Currencies: Dollar loses ground to euro, Japanese yen

The yen is the winner of the Asian foreign-exchange trading session.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:06 pm

May existing home sales rose by 2.4 percent

A real estate group says sales of previously occupied homes rose modestly from April to May, the third monthly increase this year, but signs of any housing recovery are fragile at best. ...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:05 pm

Europe Markets: Europe edges higher as drugmakers offset banks

European shares trade higher on drugmakers. Banks weaken.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:04 pm

BC Partners to invest up to $350m in Office Depot

The UK private equity group is to invest an initial $275m for a 10% stake which could double to 20% through a series of investments in preferred shares
Source: Financial Times - US homepage | 23 Jun 2009 | 2:03 pm

May U.S. existing home sales rise 2.4 percent

WASHINGTON (Reuters) - Sales of previously owned homes in the United States rose at a slower-than-expected pace in May, an industry survey showed on Tuesday, pointing to a sluggish recovery
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:03 pm

May U.S. existing home sales rise 2.4 percent (Reuters)

Reuters - Sales of previously owned homes in the United States rose at a slower-than-expected pace in May, an industry survey showed on Tuesday, pointing to a sluggish recovery from the severe economic recession.
Source: Yahoo! News: Business | 23 Jun 2009 | 2:03 pm

Former IRS Chief Offers New Tax Guidance on Corporate Reorganizations

ARLINGTON, Va., June 23 /PRNewswire-USNewswire/ -- The corporate reorganization provisions of the US Internal Revenue Code accord tax-free treatment to certain corporate...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:02 pm

Orrstown Bank Announces Peter C. Zimmerman's Intention to Retire Effective July 1, 2009

SHIPPENSBURG, Pa., June 23 /PRNewswire-FirstCall/ -- Thomas R. Quinn, Jr., President & CEO of Orrstown Bank (Nasdaq: ORRF), announced today the retirement of Peter Zimmerman...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:01 pm

Economic Report: CEOs still pessimistic, but less so, survey says

Top U.S. corporate executives are still pessimistic about the economy and their company’s prospects in the second quarter, but the gloom is less widespread, says survey released by the Business Roundtable.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 2:01 pm

SocGen's Nixon Sees Sustained U.S. Job Losses Over Next Year

Source: Bloomberg - All Podcasts | 23 Jun 2009 | 2:00 pm

US files WTO case against China over exports

WASHINGTON -- The Obama administration has filed its first trade case against China with the World Trade Organization, accusing the Asian power of restricting exports of certain raw materials to give Chinese manufacturers "unfair advantages."

Source: L.A. Times - Business | 23 Jun 2009 | 2:00 pm

The Oettinger Davidoff Group Completes Strategic Acquisition Adding Another Cigar Producer in the USA by Purchasing Cusano Cigars

BRADENTON, Fla., June 23 /PRNewswire/ -- The Oettinger Davidoff Group, headquartered in Basel (Switzerland), has acquired from the Chiusano Family the Bradenton, FL based company
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:00 pm

US files WTO case against China over exports

WASHINGTON -- The Obama administration has filed its first trade case against China with the World Trade Organization, accusing the Asian power of restricting exports of certain raw materials to give Chinese...
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 2:00 pm

Budget-Friendly Island Getaway Is Possible at Put-in-Bay

Miller Boat Line Introduces New Coupon Page for 2009 Summer Travel Season PUT-IN-BAY, Ohio, June 23 /PRNewswire/ -- The economy has some people rethinking their...
Source: RSS feed - channel BNewsBusiness | 23 Jun 2009 | 2:00 pm

MySpace to shed 300 jobs worldwide

MySpace announced today that it will eliminate two thirds of its workforce outside the United States in an effort to cut costs and narrow its international coverage.


Source: Latest Business News from Times Online | 23 Jun 2009 | 1:59 pm

Dow edges up as investors buy on dip

The Dow Jones opened higher on Tuesday as investors snapped up beatendown shares a day after Wall Street racked up its worst oneday slide in two months.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 1:58 pm

Stocks wobble before home sales data, Fed meeting

NEW YORK -- Investors are proceeding cautiously after Monday's big selloff.

Source: L.A. Times - Business | 23 Jun 2009 | 1:57 pm

Stocks wobble before home sales data, Fed meeting

NEW YORK -- Investors are proceeding cautiously after Monday's big selloff.
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 1:57 pm

Boeing delays Dreamliner test flight again

CHICAGO (Reuters) - Boeing Co said on Tuesday that the first flight of its long-delayed 787 Dreamliner would be postponed once more to reinforce an area within the side-of-body section of the aircraft.
Source: Reuters: Business News | 23 Jun 2009 | 1:55 pm

Stocks edge higher

Stocks inched higher Tuesday morning, as investors tiptoed back into equities one day after Wall Street plunged to three week lows.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 1:49 pm

Ford to get government technology loan: sources

WASHINGTON (Reuters) - Ford Motor Co will receive a share of $25 billion in government loans designed to help automakers retool factories for making fuel-efficient cars, according to sources familiar with the decision by the Obama administration.
Source: Reuters: Business News | 23 Jun 2009 | 1:47 pm

Ford to get government technology loan: sources (Reuters)

Reuters - Ford Motor Co will receive a share of $25 billion in government loans designed to help automakers retool factories for making fuel-efficient cars, according to sources familiar with the decision by the Obama administration.

Source: Yahoo! News: Business | 23 Jun 2009 | 1:47 pm

Bernard Madoff seeks leniency at fraud sentencing

Bernard Madoff, awaiting sentencing for running a $65 billion Ponzi scheme, asked a federal judge to sentence him to between 15 and 20 years in prison, citing cooperation with federal officials.
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 1:44 pm

Bernard Madoff seeks leniency at fraud sentencing

Bernard Madoff, awaiting sentencing for running a $65 billion Ponzi scheme, asked a federal judge to sentence him to between 15 and 20 years in prison, citing cooperation with federal officials.

Source: L.A. Times - Business | 23 Jun 2009 | 1:44 pm

Wall Street opens higher after slide; Boeing skids

NEW YORK (Reuters) - Stocks opened higher on Tuesday as investors snapped up beaten-down shares a day after Wall Street racked up its worst one-day slide in two months.
Source: Reuters: Business News | 23 Jun 2009 | 1:42 pm

Boeing delays first 787 flight on structural fix

Boeing postpones the first flight of its 787 Dreamliner to reinforce part of the advanced aircraft in the latest in a series of delays for the plane.

Source: MarketWatch.com - Top Stories | 23 Jun 2009 | 1:40 pm

Private Equity To Office Depot Rescue (ODP, OMX, SPLS)

Office Depot, Inc. (NYSE: ODP) has recovered substantially off of March lows, but the stock is bruised and battered when you consider it hit $40.00 in late 2006.  But this morning the office supplies store chain announced that funds advised by BC Partners, an international private equity firm, had invested $350 million into the company.  [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 1:38 pm

Boeing delays Dreamliner test flight again (Reuters)

Reuters - Boeing Co said on Tuesday that the first flight of its long-delayed 787 Dreamliner would be postponed once more to reinforce an area within the side-of-body section of the aircraft.

Source: Yahoo! News: Business | 23 Jun 2009 | 1:37 pm

Intel said to have won Nokia as mobile-chip customer

Intel Corp., the world's largest chipmaker, will sell processors to Nokia Oyj for mobile devices, marking the biggest breakthrough in Intel's expansion into the phone market, a person familiar with the...
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 1:33 pm

Intel said to have won Nokia as mobile-chip customer

Intel Corp., the world's largest chipmaker, will sell processors to Nokia Oyj for mobile devices, marking the biggest breakthrough in Intel's expansion into the phone market, a person familiar with the matter said.

Source: L.A. Times - Business | 23 Jun 2009 | 1:33 pm

'Talks planned' over refinery row

Union says it will meet contractors later to hold talks over the sacking of 647 workers at the Lindsey oil refinery.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 1:32 pm

Boeing sys 787 Dreamliner first flight delayed; shares fall

Boeing Co.'s 787 Dreamliner, already two years behind schedule, will be delayed beyond its June 30 target and a new schedule won't be available for several weeks, the company said today. Boeing shares...
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 1:31 pm

Kroger net tops analyst estimates as store brands draw shoppers

Kroger Co., the U.S. grocery chain, reported first-quarter profit that rose more than some analysts estimated, helped by sales of store brands.
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 1:30 pm

Kroger net tops analyst estimates as store brands draw shoppers

Kroger Co., the U.S. grocery chain, reported first-quarter profit that rose more than some analysts estimated, helped by sales of store brands.

Source: L.A. Times - Business | 23 Jun 2009 | 1:30 pm

Thomson Reuters UK delisting to force stake sales

LONDON (Reuters) - Thomson Reuters' plan to cancel its London Stock Exchange listing prompted a jump in its shares on Tuesday, but the rally was tempered by fears some large UK shareholders will have to cut or sell their stakes.
Source: Reuters: Business News | 23 Jun 2009 | 1:23 pm

Boeing Burning Money With Another 787 Dreamliner Delay (BA)

Boeing Co. (NYSE: BA) has announced yet another delay to the 787 Dreamliner time line.  The aerospace giant has announced that first flight of the 787 Dreamliner will be postponed due to a need to reinforce an area within the side-of-body section of the aircraft.  This does appear to be an event that will cause [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 1:19 pm

MySpace slashing jobs overseas

Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 1:14 pm

Banks 'not Robin Hood in reverse'

The House of Lords has been told that banks are not "Robin Hoods in reverse" when they levy overdraft fees.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 1:12 pm

Sun editor to be News International chief exec

Rebekah Wade, the Editor of The Sun, will become chief executive of News International, the UK publisher of the red-top tabloid and The Times.


Source: Latest Business News from Times Online | 23 Jun 2009 | 1:11 pm

Boeing delays hit sentiment on Wall Street

US stocks struggled to bounce back in any meaningful way as disappointing news from Boeing counteracted rising commodities prices.
Source: Financial Times - US homepage | 23 Jun 2009 | 1:07 pm

Sun editor Rebekah Wade moves to head News International

Rebekah Wade the editor of the Sun has been appointed chief executive of News International.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 1:01 pm

Treasury has raised 80% of cash needed

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 1:01 pm

MySpace to cut two-thirds of global workforce

NEW YORK (Reuters) - MySpace, the social networking website owned by Rupert Murdoch's News Corp, said on Tuesday it plans to cut about two-thirds of its international workforce and close at least four of its offices outside the United States.
Source: Reuters: Business News | 23 Jun 2009 | 12:55 pm

Fixedrate mortgages: rises so far

Many lenders have raised the cost of fixes recently. Here we list some of the recent changes.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 12:53 pm

Markets turn as commodities mow down green shoots

The global markets are turning. Monday saw a widespread selloff across asset classes as green shoots were mowed down. As so often it was not entirely clear what started the rout.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 12:48 pm

Nissan eyes an electric car boost

Nissan aims to make 100,000 electric cars a year by 2012, as it aims to become the first auto firm to mass produce the vehicles.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 12:39 pm

14 best quality new cars: Yaris to 350Z

These new vehicles have the best quality right out of the gate, according to owner surveys.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 12:38 pm

Obama refis: Slow out of the gate

The Mortgage Bankers Association has slashed its estimate of the number of mortgages its members will issue in 2009. One reason: Few refinancings are being done under President Obama's ballyhooed Home Affordable Refinance Program.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 12:34 pm

Moody’s Takes Another Swipe At US Sovereign Rating, Sort Of

Before you think there is a reaffirmed “Aaa” rating from Moody’s Investor Services, this was spoken at a conference.  Reuters reported that the Moody’s team-head over the Sovereign Risk Group said that the United States had a safe “Aaa” credit rating. Speaking at a media briefing in Tokyo, he said that the rating could ultimately be [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 12:29 pm

Derivatives: The risk that still won't go away

Since it is chillingly clear that U.S. financial institutions have for a good while been regulated no more stringently than, say, demolition derby drivers, Washington has belatedly locked the garage door and begun to debate strict new rules. The blueprint at hand is President Obama's sweeping proposal in mid-June to revamp the responsibilities of government agencies and impose new regulations on the financial establishment. Nothing about this plan will fall easily into place: Too many government agencies will dig in their heels. Too many financial companies will battle every aspect of reform that threatens their bottom lines.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 12:23 pm

UK debt chief Stheeman dismisses prospect of 'buyers strike'

The head of the head of the Debt Management Office insists there is appetite for UK debt.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 12:19 pm

Oil rises above $68

LONDON (Reuters) - Oil rose above $68 a barrel on Tuesday, reversing earlier losses, supported by a weaker dollar and ahead of inventory data expected to show a fall in crude stocks.
Source: Reuters: Business News | 23 Jun 2009 | 12:18 pm

What Van Hoisington’s Low Inflation Outlook Misses

By John Tamny of RealClearMarkets  In a recent speech before the clients of research firm Applied Finance Group, Entropy Economics president Bret Swanson showed an ad from 1989 which featured “the most powerful computer ever!” The Tandy 5000 MC Professional System retailed for $8,499, mouse and monitor not included.   Further on in the presentation, Swanson noted that [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 12:14 pm

OECD warns on pensions crisis

Strains in pensions systems, in both private and public provision, threaten to turn the financial crisis over the past two years into a social crisis lasting decades, the Organisation for Economic Cooperation and Development warned
Source: Financial Times - US homepage | 23 Jun 2009 | 12:13 pm

A Surprise Upgrade of Motorola (MOT, PALM)

If you can believe it, an analyst is raising the rating on Motorola Inc. (NYSE: MOT).  It is not even a boutique brokerage firm.  Bank of America Merrill Lynch has raised its official rating to “Buy” from Neutral.” The price target is also almost as hard to believe.  The prior target was $7.00 and the new [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 12:10 pm

World stocks mixed amid recovery jitters (AFP)

AFP - European stock markets recovered slightly on Tuesday after Asian and US stocks tumbled on fresh fears that a global economic recovery may not come through as quick as hoped, traders said.

Source: Yahoo! News: Stock Markets News | 23 Jun 2009 | 12:09 pm

Theo Fennell returns to luxury jeweller

Theo Fennell, the designer, has returned to the eponymous jewellery business he established in a reshuffle that will see his co-founder step down.


Source: Latest Business News from Times Online | 23 Jun 2009 | 11:53 am

Bank rejects criticism of quantitative easing scheme

The Bank of England’s chief economist today rebuffed criticisms of its radical quantitative easing (QE) scheme to pump extra funds into the economy using newly created money.


Source: Latest Business News from Times Online | 23 Jun 2009 | 11:49 am

Steve Jobs returns to work at Apple

Steve Jobs is reported to have returned to work yesterday after the liver transplant that the Apple co-founder and chief executive is said to have undergone two months ago.


Source: Latest Business News from Times Online | 23 Jun 2009 | 11:45 am

'Steady rise' in mortgage lending

Mortgage approvals by the UK's major banks have continued the steady rise of the last six months, figures show.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 11:44 am

She Deserves a Raise

Source: Business Pundit | 23 Jun 2009 | 11:44 am

Clunkers that score the most cash

Vehicles like these will help SUV and truck owners get the biggest bang for their trade-ins.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 11:43 am

Lords scrutinise bank charges

The legal battle over bank overdraft charges moves to the House of Lords today, where high street banks and Nationwide building society will bid to over-turn a previous ruling by the Court of Appeal.
Source: Latest Business News from Times Online | 23 Jun 2009 | 11:34 am

MySpace's UK jobs at risk as website axes twothirds of international jobs

MySpace the beleaguered social networking site is to cut twothirds of its international staff putting dozens of British jobs at risk.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 11:27 am

Top Analyst Upgrades & Downgrades (BHP, BPI, CAG, COP, ETFC, FDX, MRVL, RTP, SONC, SBUX)

These are the top ten early bird analyst upgrades and downgrades from Wall Street early this Tuesday morning with more than two hours until the market opens. BHP Billiton (BHP) Raised to Buy at Citigroup. Bridgepoint Education (BPI) Cut to Neutral at Credit Suisse. ConAgra (CAG) Raised to Buy at UBS. ConocoPhillips (COP) Raised to Outperform at Bernstein. E*TRADE (ETFC) [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 11:25 am

Mortgage due, severance running out

Name: Raul Camejo
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 11:20 am

Opening Bell: 06.23.09

Goldman Denies It Will Pay Out Huge Bonuses (NYDN)
I mean, it will, but the issue here is that we don't know if they'll be record-breakingly big just yet. We can certainly make guesses, though, which you should feel free to do at this time.

U.S. credit rating a "solid triple-A," Says Moody's (Reuters)
But it could be at risk for the d-word. "Either our assumptions in terms of debt reversibility prove to be wrong. That is, in fact the U.S. government is unable to bring public debt back to a downward trajectory," Pierre Cailleteau, team managing director of Moody's Sovereign Risk Group said.

Three Banks Suspend TARP Dividends (WSJ)
At least three cash-strapped banks have stopped paying the government the dividends they owe: JPM, GS, MS. No, just messing. Jamie Dimon would sell his liver if need be. The banks are pacific Capital Bancorp, Seacoast Banking Corp, and Midwest Banc Holdings.

Buffett Boy Raises $2 billion (FT)
Byron Trott, AKA "Buffett's banker," has raises a nice chunk of change for his new firm, BDT Capital Partners. For those interested in getting in on that, BDT will "maintain a close relationship with Goldman," Trott's former employer.

A Transplant That Is Raising Many Questions. You Know The One. (NYT)
Doctors say there is "little opportunity" to cheat the system when you need an organ, but the Times apparently remains unconvinced that Mock Turtleneck didn't do just that.

What Has the World Bank or IMF Ever Gotten Right? (Infectious Greed)
Paul Kedrosky would like to know.

No Jobs On Wall Street Mean Graduates Can Have A Social Conscience Now (Bloomberg)
Nationally, 27 percent of about 1.6 million graduating seniors plan to work for nonprofit groups or governments, an increase from 23 percent in 2008.

Settlement Anticipated In UBS Case (NYT)
"The Justice Department may drop a closely watched legal case aimed at forcing the Swiss bank UBS to divulge the names of 52,000 wealthy American clients suspected of offshore tax evasion, a United States official briefed on the matter said Monday. The move, which would halt an unusually aggressive effort to force Switzerland to lift its veil of banking secrecy, could happen by mid-July."

Sponsored Topics: United States - Switzerland - UBS AG - Banking in Switzerland - Business
Source: Dealbreaker | 23 Jun 2009 | 11:20 am

Toyota's Toyoda

What the founder's grandson will bring to the top job
Source: BBC News | Business | World Edition | 23 Jun 2009 | 11:14 am

U.S. credit rating a "solid triple-A": Moody's (Reuters)

Reuters - Moody's Investors Service said on Tuesday that the U.S. government's triple-A credit rating was safe but added that it could be at risk if Washington were unable to bring its public debt back to a downward trajectory.

Source: Yahoo! News: Business | 23 Jun 2009 | 11:12 am

U.S. credit rating a "solid triple-A": Moody's

TOKYO (Reuters) - Moody's Investors Service said on Tuesday that the U.S. government's triple-A credit rating was safe but added that it could be at risk if Washington were unable to bring its public debt back to a downward trajectory.
Source: Reuters: Business News | 23 Jun 2009 | 11:12 am

Jobs saved at call centre company

Hundreds of under-threat call centre workers at Telecom Services Centre near Falkirk are told their jobs are safe.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 11:10 am

South Africa opposes merger of Xstrata and Anglo American

South Africa's mining minister said a merger between Xstrata and Anglo American was "unacceptable".
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 10:50 am

MySpace slashes overseas staff numbers

The social networking site has revealed details to cut two third of staff around the world after announcing cuts to its US workforce last week
Source: Financial Times - US homepage | 23 Jun 2009 | 10:46 am

Recession: 'I'm glad we got laid off'

From opening a Hungry Howie's pizza to pursuing the country's best party, these people are making the most of the downturn.
Source: Business and financial news - CNNMoney.com | 23 Jun 2009 | 10:38 am

Nissan plans to mass-produce electric cars

Nissan Motor has belatedly waded into the worldwide battle for dominance of the “green” car market by unveiling plans to produce 100,000 electric vehicles per year at its plant in Tennessee.


Source: Latest Business News from Times Online | 23 Jun 2009 | 10:37 am

European stocks claw back ground after big losses (AP)

AP - European stocks clawed back some ground Tuesday, with Wall Street also expected higher, after a heavy sell-off on Monday, when the World Bank warned that the global economic downturn would be deeper than previously predicted.

Source: Yahoo! News: Stock Markets News | 23 Jun 2009 | 10:32 am

U.S. may drop UBS tax evasion case: report

ZURICH (Reuters) - The U.S. Justice Department may drop a legal case aimed at forcing Swiss bank UBS AG to reveal the names of 52,000 wealthy American clients suspected of offshore tax evasion, the New York Times reported on Tuesday.
Source: Reuters: Business News | 23 Jun 2009 | 10:32 am

Mortgage approvals hit 13-month high

The number of mortgages approved for house purchase rose to a 13-month high in May as buyers continued to return to the property market, figures showed this morning.


Source: Latest Business News from Times Online | 23 Jun 2009 | 10:27 am

Barclays raises cost of fixedrate mortgages

Barclays has become the latest lender to increase the cost of fixedrate mortgages for new customers.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 10:24 am

Intel (INTC) To Start Handset Chip Price War, Help Mobile Consumers

Intel (INTC) means to push deeply into the mobile chip market. That is bad news for the two companies that own most of the territory now–TI (TXN) and Qualcomm (QCOM). Intel is the largest chip company in the world and its needs to aggressively expand beyond PC and server chips to keep that distinction. According to [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 10:16 am

Will Apple (AAPL) iPhone Sales Cause A New Recession?

Apple (AAPL) sold more than one million of its new iPhones over the weekend. The costs of those handsets could have been $300 million, and that does not include the two-year calling plan from AT&T (T). Together, the handset and service commitments made by consumers should be between $500 million and $1 billion. Those figures [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 9:56 am

Airbus makes first plane in China

Airbus delivers its first Chinese-made plane, as it aims to meet China's fast-growing demand for commercial aircraft.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 9:49 am

Peugeot warns of €2 billion loss as car sales fall

PSA Peugeot Citroën warned today that it expects to make an operating loss this year of between €1 billion (£855 million) and €2 billion as it continues to suffer from falling car sales.


Source: Latest Business News from Times Online | 23 Jun 2009 | 9:42 am

Toyota (TM): 100 MPG By 2015, Or Bust

Toyota’s (TM) new management means to use every tool at its disposal to bring down the amount of fuel its cars need to operate as the price of oil continues to rise. Katsuaki Watanabe, who is leaving as the firm’s president, told that annual shareholder’s meeting that the world’s largest car company would take out even [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 23 Jun 2009 | 9:37 am

Eurozone recovery loses momentum

An economic recovery in the eurozone is only inching forward according to a closely-watched survey that has highlighted the fragility of recent turnaround in growth prospects
Source: Financial Times - US homepage | 23 Jun 2009 | 9:36 am

Adverts offering to 'buy your debts for £1' are scams watchdog warns

The trading watchdog is warning consumers not to fall for scams under which companies offer to buy their debts from them for as little as £1.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 23 Jun 2009 | 9:33 am

Liverpool close to bank debt deal

Liverpool Football Club is close to renegotiating its debt with the Royal Bank of Scotland, the BBC learns.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 9:29 am

Black seeks release before appeal

Former media mogul Conrad Black asks a Chicago federal judge to release him ahead of a Supreme Court hearing.
Source: BBC News | Business | World Edition | 23 Jun 2009 | 9:04 am

Guantánamo Uighurs fight Palau move

A group of ethnic Uighurs being held at the Guantánamo Bay detention centre are refusing to relocate to the tiny Pacific nation of Palau on fears that they will either be handed back to China or that Chinese officials would hunt them down
Source: Financial Times - US homepage | 23 Jun 2009 | 8:18 am

FTSE 100 falls at open (AFP)

AFP - Stocks in London were in the red at the start of trade on Tuesday as economic concerns persisted among investors.

Source: Yahoo! News: Stock Markets News | 23 Jun 2009 | 7:40 am

Top Iran body rules out vote annulment

Iran's Guardian Council, the hardline-dominated constitutional watchdog, will deliver its final response to opposition claims of rigging in the June 12 presidential vote within the next two days, its spokesman said
Source: Financial Times - US homepage | 23 Jun 2009 | 7:29 am

Rival to Pakistan's Taliban chief killed

A tribal leader who vowed to lead an uprising against Pakistan's most notorious Taliban militants was killed, raising doubts over the success of a planned military offensive along the Afghan border
Source: Financial Times - US homepage | 23 Jun 2009 | 7:26 am

Tightening credit puts a squeeze on business owners

Businesses that depended on credit cards to make purchases and manage monthly cash flow are paying higher interest, having trouble opening new lines or seeing existing ones canceled.

For small-business owners who rely on business credit cards, the recessionary landscape looks extra bleak these days.

Source: L.A. Times - Business | 23 Jun 2009 | 7:00 am

Group advocates electronic medical records

HealthDataRights.org wants patients to have better access to their own information. Accessing your own medical...
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 7:00 am

Losses of factory jobs in California blamed on regulation

A report to be issued today by the Milken Institute attributes the departure of 79,000 manufacturing jobs between 2003 and 2007 to onerous regulations and high taxes.

The El Monte factory stopped operating just a few weeks ago, but already it feels abandoned, an appropriate setting for a "Terminator" movie.

Source: L.A. Times - Business | 23 Jun 2009 | 7:00 am

Beverly Hills money manager Stanley Chais accused of fraud

The Beverly Hills money manager kept investor funds flowing to Madoff and took profits and fees of $816 million, the suit says.

A key to the long-running success of Bernard L. Madoff's $65-billion Ponzi scheme was its secrecy and exclusivity. You had to know someone to get a piece of the action.

Source: L.A. Times - Business | 23 Jun 2009 | 7:00 am

Eastman Kodak to discontinue Kodachrome

Sales of the film known for its rich, vibrant tones have plunged as photographers gravitated to digital cameras and newer film. ...
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 7:00 am

Tightening credit puts a squeeze on business owners

Businesses that depended on credit cards to make purchases and manage monthly cash flow are paying higher interest, having trouble opening new lines or seeing existing ones canceled. ...
Source: RSS feed - channel BNPaperBusiness | 23 Jun 2009 | 7:00 am

Air NZ offers $50 fares for stranded Jetstar passengers

Frustrated Jetstar passengers are to be offered $50 airfares by a competitor. Air New Zealand announced today it would offer the $50 one-way fares to Jetstar customers left stranded by the airline's 30-minute check-in policy or...
Source: New Zealand Herald - Business | 23 Jun 2009 | 6:48 am

NZ stocks: Market down over 1pc

The New Zealand sharemarket took a sizeable fall today but resisted the larger declines seen offshore as investors remained on the sidelines. The benchmark NZSX-50 index closed down 32.9 points, or 1.18 per cent, at 2762.01, following...
Source: New Zealand Herald - Business | 23 Jun 2009 | 6:31 am

Currency: Dollar drifts lower

The New Zealand dollar struggled to make any headway today as it was deserted, along with the Australian dollar, by investors seeking safer assets. The kiwi traded between US63.22c and US62.58c during the day, ending at 5pm at...
Source: New Zealand Herald - Business | 23 Jun 2009 | 5:59 am

Westpac defends NZ bank lending rates

Major banks' cuts in key mortgage rates have been criticised as too low to reflect the fall in the Reserve Bank's benchmark interest rate, but that was justified by higher funding costs, Westpac says. In a select committee report...
Source: New Zealand Herald - Business | 23 Jun 2009 | 5:00 am

Stocks Barely Changed in Early Trading (Market Update)

News at a Glance

• Moody's Sticks: U.S. keeps AAA credit rating.
• No Rebound: Equities in neutral early.
• Trust Tested: Faith in Obama-led turnaround fades: poll.
• Data Coming: Existing home sales data due at 10 a.m.

The Lowdown

The selloff is over, but the rebound has yet to get underway.

A day after the Dow Jones Industrial Average dropped 201 points, the blue-chip index remained stuck in the mud. Stocks were barely changed in morning trading, as traders awaited the latest data on the housing sector. By 9:49 a.m., the Dow stood flat at 8339. The Nasdaq had slipped a point to 1766, and the S&P 500 had picked up 1 at 894.

Traders appear to be reserving judgment until the release of the May report on new home sales. Economists expect an increase in the annual rate of homes sold. The data will be released at 10 a.m.

In economic news, Moody's Investors Service said the U.S. would maintain its triple-A credit rating, despite heavy borrowing in an effort to stimulate the economy, Reuters reported. Moody's projects the rating will remain static for at least the next 18 months.

Commodities prices got a small bump. Oil prices were higher in early trading. By 9:37 a.m., crude traded up 37 cents at $67.87 a barrel.

In Washington, members of the Federal Reserve headed into their  two-day meeting on monetary policy. The Fed is widely expected to leave the federal funds rate flat at 0.00% to 0.25%, but traders will be watching for hints of language hinting at inflation that could signal a change in the foreseeable future.

Also in Washington, the Obama administration continues to enjoy a strong approval rating (65%), according to the results of the latest Washington Post-ABC News poll, but American patience with the White House and its ability to handle the economic crisis is slipping. The new survey suggests the percentage of Americans that believe the stimulus package will draw the country out of a recession has declined to 52%, down from a prior reading of 59%.

World markets were mixed. Asia took a hit in the wake of the U.S. selloff. Japan's Nikkei dropped 2.8%, while Hong Kong's Hang Seng gave up 2.9%. In Europe, the U.K.'s FTSE picked up 0.2% in afternoon trading.

Corporate News

• UBS (UBS) may have successfully lobbied its way out of releasing the names of 52,000 of its American clients to the U.S. government, The New York Times reported. A Justice Department investigation had threatened to expose the bank's American customers in an effort to uncover instances of tax evasion, but Washington appears to be easing in light of Swiss laws that would render UBS bankers guilty of violating a code of secrecy between themselves and their clients.
• Ford (F), Nissan and Tesla Motors are among the automakers receiving some of the first loans from a new $25 billion federal lending program designed to help car companies update their factories to produce more environmentally sound vehicles, The Wall Street Journal reported, citing anonymous sources. The loans are part of a program created by Congress to encourage companies to make vehicles 25% more fuel-efficient than 2005 models.
• Toyota (TM) installed Akio Toyoda, the grandson of the company's founder, as the firm's new president. Toyota, the world's largest automaker, is mired in a global slump that sank American rivals General Motors and Chrysler into bankruptcy and steered the company toward a record annual loss.

The Economy

• The May reading of the annual rate of existing home sales is scheduled to be released at 10 a.m. by the National Association of Realtors. In April, the annual rate stood at 4.68 million sales. For May, economists expect the rate to have risen to 4.82 million sales a year.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 23 Jun 2009 | 4:00 am

10 Things Moving Companies Won't Say (Consumer Action)

1. “We’ll hijack your stuff.”

The moving industry packs in nearly 55 percent of its business during the summer months, but often leaves a trail of frustrated consumers in its wake. The Department of Transportation receives up to 4,000 household moving complaints annually, mostly about loss and damage, poor service, or overcharging. The Council of Better Business Bureaus, meanwhile, reports that complaints about movers jumped from nearly 3,800 in 1997 to more than 9,200 in 2007.

Just ask Spyro Malaspinas, a victim of a botched move. He says that Nation Van Lines, which he hired to move his belongings from Austin, Tex., to Chicago in January 2003, hiked his bill from an estimate of $1,050 to nearly $4,300. The movers, according to Malaspinas, said his goods measured 500 cubic feet more than anticipated. When Malaspinas threatened to call the police, the drivers made off with his possessions, which he estimates were worth $47,000. Despite an FBI investigation and the March arrest of Nation owner Eli Peretz by the FBI for alleged crimes with another moving company, Malaspinas wasn’t thrilled with the final results: He only got back around $25,000—and never saw his belongings again. The experience was “paralyzing,” he says. “It’s not like somebody stealing your wallet; they have stolen everything you’ve got.” (Peretz’s lawyer did not return our calls; Nation Van Lines has since gone out of business.)

2. “We’re popular, especially with the FBI .”

Eli Peretz wasn’t the only mover rounded up by the FBI in March 2003. The feds indicted a total of 16 moving companies and 74 operators, owners, and employees on various charges following a two-year investigation called Operation Stow Biz. “It is the most significant crackdown that we’ve done,” says a spokesperson for the FBI’s Miami division, whose undercover agents posed as potential customers to trap movers committing fraud, money laundering, and other acts. Among those indicted were 20 officers and employees of Sunrise, Fla.–based Advanced Moving Systems. The charges in the 60-count indictment include fraud, extortion, false documentation, and “inflating the price of the move and, thereafter, withholding delivery of . . . goods until [customers] paid the inflated price.”

Too bad Patrick and Tammy Runion didn’t get advance word of Advanced’s alleged practices. The couple booked the company for their move from Toledo, Ohio, to Lake Forest, Calif. Patrick says that Advanced movers locked their stuff in storage in Chicago when he refused to pay an additional $500 because the load’s weight had been miscalculated by a driver. “We were so stressed and frustrated” by the ordeal, says Patrick, who eventually paid $1,000 to find the storage space. Attempts to contact Advanced officials were unsuccessful, and the company has since gone out of business. According to the FBI, 10 of the indicted employees are listed as fugitives; the other 10 have pleaded not guilty to charges as of press time.

3. “Don’t mess with us; we’re virtually untouchable.”

While the FBI sting did manage to take some bad guys out of play, Robert Julian, bureau chief for the Economic Crimes Division in Ft. Lauderdale, Fla., doesn’t think “consumers should breathe easy.” Scammers are tough to stop. Local police hesitate to get involved in moving disputes because they’re considered civil matters, and while the FBI will investigate complaints involving interstate moves, getting property back is not its priority.

There are also federal laws to contend with that, historically speaking, have tended to protect moving companies more than consumers. It used to be, for example, that while dissatisfied customers could sue their moving company for goods lost in a move, they stood very little chance of recovering even their basic monetary value, let alone winning any punitive damages on top of that amount. But the advent of the Safe, Accountable, Flexible, Efficient Transportation Equity Act in 2005 has given consumers and the federal government more authority in going after scofflaw movers; it “has helped the agency greatly in curbing abuses” in the industry, according to a spokesperson for the Federal Motor Carrier Safety Administration (FMCSA). Today movers are being held liable in a way they never were before for at least replacing the value of lost items—so long as the customer opted for full-value protection for their belongings in the initial moving contract. For more information, visit the FMCSA’s website at www.protectyourmove.gov.

4. “Someone will deliver your stuff—it just might not be us.”

In June 2002, Carole and Doug Stowers contracted with Elite Van Lines to transport the contents of their threebedroom house from Palm City, Fla., to Bailey, Colo. Nothing unusual there, right? Guess again. Elite then subcontracted the job to other companies for the cross-country trip. The Stowers were shocked when Majesty Moving & Storage pulled up to their new home with only half their possessions and didn’t know what had happened to the rest—after all, they hadn’t loaded the goods.

Beware: In the hectic summer months, a mover might get so busy that it asks another company to help out with a job. That’s fine, but the consumer should be notified in advance of the deal. A spokesperson for the American Moving and Storage Association says, “For a completely different company to show up at your house with no prior arrangements, that is totally unacceptable.” No need to tell Carole Stowers that. She shelled out $5,375 to Elite—the original estimate was $1,700— to get all her possessions back. “We almost went bankrupt trying to save our furniture,” she says. (Both Majesty and Elite have since gone out of business.)

5. “How much experience do our movers have? At least a day or two.”

Even if one company does handle your entire move, don’t assume that the movers who show up are actual employees of that company. Moving companies have been known to hire day laborers plucked off the streets on moving day. Peter Drymalski, investigator for the Montgomery County Division of Consumer Affairs in Maryland, says for smaller movers, “That’s probably the rule rather than the exception, because they often don’t have regular crews.” The problem is that inexperienced workers are more likely to damage possessions.

Similarly, many moving companies contract with independent truck drivers—a concern if the mover arrives in an unmarked rental truck. That’s a red flag, indicative of a fly-by-night operator with limited fixed assets—who would be difficult to go after in court. Swing by the company’s offices before you choose a mover. If the company doesn’t appear to have its own trucks, do yourself a favor: Cancel the job.

6. “Our pricing policies are wacko.”

Moving can test even the most timeconscious planner. For instance, it may be tempting to bypass getting an inhouse and written estimate from a mover, opting instead to save a few minutes with a telephone or online estimate. But if you take the shortcut, be prepared to get burned. Tim Walker thought he’d caught a break when he booked a mover online who gave him a lowball quote of $1,800 for a Virginia to Nevada move. But once his goods were on the truck and measured in cubic feet, Walker says, the price was jacked up to $5,012. He could pay only the original amount, so the movers held his belongings until he ponied up the cash six weeks later.

With an in-house estimate, you’re likely to get a more precise idea of the cost. But you also need to consider how the mover is reaching that estimate—is it by total weight or by cubic feet? Go the weight-based route, if possible. That will at least entitle you to witness all weighings. Also, it’s pretty easy to check your bill to see if you’ve been overcharged. Simply divide the total weight by the number of items. If the average amount per item is more than 35 to 45 pounds, there’s cause for suspicion. The trouble with cubic-foot pricing is that actual charges could depend on how the mover packed your items.

7. “Extra fees and charges? You can count on it.”

Understand this: There are many ways for movers to squeeze extra dollars from customers. Besides charges for accessorial services, movers have been known to levy exorbitant fees for such things as packing supplies. Sound petty? Sure, but they can add up. According to the American Moving and Storage Association (AMSAS), you can knock off some of these costs by packing your own nonbreakables, but movers may be reluctant to take responsibility for items they didn’t pack.

There are also charges related to the specific circumstances of a move. You might get dinged for a “long carry,” when the distance the movers have to haul your belongings from their truck to your door exceeds a certain limit; this is often applied in cities, where movers can’t always secure parking directly in front of a residence, for example. Then there’s the “flight charge” for having to lug goods up and down stairs in the absence of elevators.

“You just have to make sure you know all of these costs up front so you’re not surprised at the end,” says a spokesperson for the National Endowment for Financial Education, a nonprofit dedicated to promoting financial security and education. “If you start to incur these separate charges that weren’t estimated before, you’re going to have sticker shock.”

8. “We’ve never met a schedule we didn’t ignore.”

Thinking of moving during the last 10 days of June, July, or August? Think again. Those are the busiest moving days of the year. Still, moving companies will often overbook just to keep you from taking your business elsewhere. Consider what happened to Jenna Callahan. She was scheduled to move from Boston to West Chester, Pa., in July, but the movers never showed up. “I lost a lot of time and sanity,” she says.

But it doesn’t only happen at peak times. In January 2002, Tyrone Kelley was set to move from Stoughton, Mass., to Las Vegas, but the movers didn’t arrive until 6 p.m., seven hours late. Says Kelley, “It’s a common tactic to arrive after business hours so that it’s too late for you to find another moving company.” He wishes he had, because U.S. Movers charged him more than double the estimate due to allegedly wrong weight calculations. They also locked his stuff in storage when he didn’t have cash to pay for the job. It took three months to persuade the local police to serve a search warrant on the storage facility so he could reclaim his stuff. U.S. Movers’ executive vice president, Tom Timen, denied the weight was false, saying Kelley had more than twice the number of items listed on the estimate. “All we asked was to be paid for the services he agreed to,” Timen said in 2003. U.S. Movers has since gone out of business.

9. “Surprise! Our insurance isn’t worth much.”

Remember Carole Stowers? When she and her husband finally got their belongings back from Elite Van Lines, much of her furniture was battered and broken. The insurance adjuster from Crawford & Co. estimated $13,642 worth of damage. But little good that did—she was entitled to just over $2,000 recompense. The reason? A mover’s liability coverage, known as “valuation,” doesn’t work like a typical insurance policy. For interstate moves, standard valuation limits the carrier’s liability to no more than 60 cents per pound, and it’s often less for in-state moves. So if your 50-pound plasma screen TV gets smashed, you’ll collect just $30.

The AMSA estimates that one in five moves involves a claim for damage. That said, you’re better off getting some real protection—say, through a rider on your homeowner’s insurance. At the end of the move, look over your possessions carefully before signing a receipt. If you sign and later discover a huge dent in your Chippendale dresser, the mover will point to the receipt as proof that the dresser was fine when he dropped it off.

10. “We change addresses as often as our customers do.”

James Balderrama called the Federal Motor Carrier Safety Administration (FMCSA) in June 2001 to register a complaint about his belongings being seized by a mover. Good idea. Too bad he didn’t get a return call until 10 months later. The agency, a Department of Transportation division that oversees safety, licensing, and regulation of trucks and buses, has only eight full-time investigators to police roughly 4,000 companies.

With so little manpower, the FMCSA lacks the muscle to rein in rogue movers. The agency fined 117 carriers in 2007 at an average amount of $13,000 per carrier—chump change for an industry that brings in $10 billion annually. And companies that do get censured often remain defiant. “Typically, they will not pay the fine; instead, they close down and reopen under a different name,” says an FMCSA spokesperson. Until regulators toughen up, take the FMCSA’s advice: “Educate yourself before you hire a mover. Once you hire one, most of the time it’s too late for us to do anything to help.”

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 23 Jun 2009 | 4:00 am

Moving on the Cheap: 6 Tips for Cutting Costs (Deal of the Day)

As if packing all your possessions, forwarding the mail and cleaning out decades of junk wasn't stressful enough, just wait until you see the mover's bill.

Of course, the damage will depend on the amount of stuff you have and where you're moving. Transporting the contents of a one-bedroom apartment from New York to Milwaukee next month, for example, generated mover bids of $3,500 to $4,500 on moving-jobs marketplace CityMove.com. Estimates for packing and moving items in a two-bedroom home from Philadelphia to Cherry Hill, N.J., in March, meanwhile, ranged from $2,420 to $15,000.

And as many consumers find out at some point in their lives, moving isn't without its potential pitfalls, no matter how much you pay. Complaints about moving companies were up nearly 6% last year, according to the Better Business Bureau. Problems ranged from no-shows and damaged furniture to so-called rogue moving companies who waited until every last bit of clients' possessions were on the truck to demand double or triple the original estimate.

Whether you're moving across the street or across the country, here are six ways to cut moving costs and protect yourself and your belongings:

Shop around

Moving costs can vary wildly so be sure to get estimates from at least three moving companies before you hire someone. Free site CityMove.com lets consumers put out a call for bids, which registered movers can then respond to. (Make sure estimates include how long the job will take so you can effectively compare flat-fee and hourly bids.)

Also ask the mover to inspect your home and goods in person ahead of time to make sure there aren't any surprise charges come moving day, says Jon Katz, chief marketing officer for Flat Rate Moving. And inquire about any other fees that could come into play, and under what circumstances. Some movers, for example, pay any parking or traffic tickets incurred during the move, while others pass them along to the customer.

Conduct a background check

Picking a mover based solely on price is a big mistake, warns Allison Southwick, spokeswoman for the Better Business Bureau. Make sure the company you pick doesn't have a reputation for showing up late, damaging items in transit or — worst of all — demanding more money while your stuff is held hostage on the moving truck. Check BBB.org and Yelp.com for consumer reviews, and ask the moving company for three recent customers to call. Your state's public service commission should also be able to tell you if a mover is licensed and in good standing.

Pare back on belongings

Whether a moving estimate is based on weight or a per-hour rate, more stuff almost always results in a bigger bill. As you pack, weed out items to sell at a yard sale, donate to charity or throw out, says John Buckles, president of Caring Transitions, a company that helps seniors with moving and downsizing. Not only will you save money on the move itself, but you'll also get some cash back in the form of yard-sale proceeds or tax deductions.

Reduce the mover's workload

"Every time a mover has to go into the house, that's more time [you're paying for]," says Jon Sorber, executive vice president of Two Men and a Truck. Move un-packable items like lamps and houseplants on your own — or at least carry them out to the moving van. Also, disassemble items like bed frames before movers arrive so you don't have to pay for the time it takes them to do it, he says.

Know what's covered

Some homeowners insurance policies cover belongings in transit, so check before paying for coverage from your mover, says Sorber. Moving company policies typically pay out by pound, rather than by the item's value. For example, coverage at the common rate of 60 cents per pound would reduce the value of a $900, 51-pound Sony flat-screen TV to $31. Such policies are also pricey, costing up to 1.5% of your possessions' declared value. Someone moving $25,000 worth of stuff could save $375 with a quick call to their insurer. Of course, if your belongings aren't covered by a homeowner's policy then getting coverage from your mover is better than nothing, says Sorber.

Grab the tax break

The IRS allows consumers to deduct all the costs of a job-related move, provided you meet certain criteria. You must move within a year of starting the new job and remain employed for at least 39 weeks after the move. The new job must also be at least 50 miles further away from home than your old job.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 23 Jun 2009 | 4:00 am

5 Insurance Policies for Summertime (Deal of the Day)

Anyone who has ever forgotten to apply sunscreen knows it’s a good idea to take precautions during the summer even while at play. But for those who wade into the season unprepared, a nasty sunburn can be the least of their problems.

Many summer-related activities pose risks of injuries or damages that can be expensive for those without an adequate insurance policy. For example, traveling abroad without health coverage and getting into a medical emergency may cost the traveler hundreds or thousands of dollars out-of-pocket for health-care services. Even those who stay home during the summer face seasonal risks like flooding from hurricane damage, which isn’t covered by homeowner’s or renter’s insurance.

“There are certainly events and activities that occur during the summer where having an insurance policy would be helpful,” says Sheryl Garrett, a fee-only certified financial planner.

The trick is to make sure these policies are necessary and that you’re not overpaying for them. As insurance companies devise more products, it can be difficult to separate your true risk from the nightmare scenarios invented by clever marketers. They know that in the tough economy, many people fear getting hit with a big bill out of nowhere and may be more open to pitches for insurance.

So here’s how to size up five types of safety nets that are particularly relevant this time of year.

Travel

Travelers’ checklists often include little more than a camera, passport and sunblock. But before boarding the plane, make sure you have health coverage in case an emergency occurs while you’re away.

U.S.-based health-insurance providers rarely extend substantial benefits while you’re outside the country, says Garrett. Contact your insurance provider to verify your coverage abroad. To fill in any gaps, consider purchasing travel insurance.

Some 300 types of travel insurance exist, and most are sold by travel agents or online travel booking sites, says Scott Simmonds, an independent insurance consultant based in Saco, Maine. Policies can cover a wide array of health services, from hospital visits to medical evacuations from foreign countries. Without it, travelers may have to pay out-of-pocket for treatment, or risk being denied care.

Travel insurance typically costs 10% of the total trip, including flights and hotels, says Garrett. Before signing up, read the fine print to confirm your coverage, which will vary by policy and agent.

Rental Car

Whether you’re planning a weeklong road trip or driving to the nearest beach, check on your auto insurance before renting a car.

Drivers who own a car can contact their insurance provider to find out if they’ll be covered if they get into an accident or damage a rental vehicle, says Sam Belden, a vice president at Insurance.com, a policy comparison site. They also should consider whether they can afford to pay their policy’s deductible, says Belden.

Another option without additional cost is to use a credit card that provides a collision damage waiver. Most gold MasterCard, Visa, Discover and American Express credit cards offer this coverage to cardholders. Hold onto any receipts from the rental-car company citing damage to the rental car and send them to the credit-card company. Today, roughly 80% of all gold cards provide this benefit, but consumers should contact their credit-card company to confirm coverage before they rent the vehicle, says Simmonds.

If neither of those options pans out, consider purchasing a collision damage waiver from the rental company, which costs $12 a day on average, says Simmonds. Without coverage, in case of an accident, the rental-car company will usually determine how much you owe and charge your credit card -- even if it’s not your fault, he says.

Liability

Of course, accidents don’t always happen on the road. On the golf course, you can swing your nine-iron and mistakenly hit your opponent in the head. At a barbecue, your potato salad might make someone sick. In your own backyard, a guest might slip on the edge of your pool.

Most homeowner and renter insurance policies are sold with around $100,000 of liability coverage per occurrence, which kicks in when you’re held responsible for bodily or property damage on or off your property, says Simmonds.

“If you have any personal assets to protect you’ll need to have an umbrella policy,” says Garrett. “Otherwise, they could be at risk if you get sued.” To determine how much umbrella liability you need, round up your net worth, including your home and retirement savings, to the nearest million dollars, she says. Someone with a net worth of $1.3 million should get a $2 million umbrella policy, which costs an average $250 per year in premiums, she says.

Flood

When it comes to bad summer weather, homeowners’ policies cover most damage caused by hurricanes, but it doesn’t cover flood damage.

Typically, homes that require flood insurance are in low-lying areas near the Gulf Coast, the Mississippi River or a smaller river that can overflow. Home buyers will be alerted if they need flood insurance by the bank underwriting their mortgage. They can also contact their local city hall, which should keep track of flood zones.

Flood insurance, which is sold through FEMA’s National Flood Insurance Program, can range from $300 a year for a house with a minimal chance of a flood – say, one sitting on a mountaintop – or up to $10,000 a year if you’re living near a coast in a flood zone, says Simmonds. Read the fine print before signing up to make sure there aren’t any loopholes in your policy, like coverage restrictions based on the location of the damage or the cost of the repair.

Wedding Weather

There’s a reason why June is such a popular month for weddings, and it isn’t the rain, sleet or snow. Still, the weather doesn’t always cooperate.

Some couples try to guarantee the storybook setting by buying weather insurance, which covers costs related to changing your wedding plans in the event of rain, says Simmonds. The price of this insurance is based on historical weather data at your location and date, and it can often cost $2,000 or more, he says. A free alternative: Have a backup plan with your wedding venue to move the reception indoors in case of rain, says Garrett.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 23 Jun 2009 | 4:00 am

Shooting a Hole in the Outlook for Gun Stocks

THE OBAMA GUN RUN is slowing.

When the Democrats swept into Washington in November, gun fanciers scrambled for 15-round pistols and tactical rifles equipped with grenade launchers, flash suppressors and bayonets -- in fear the new administration would reinstate a ban on the sale of such weapons. Gun makers Smith & Wesson Holding (SWHC) and Sturm, Ruger (RGR) have shown great sales gains the past couple of quarters. Their stocks have shot up as much as fourfold. But now the gun industry's leading indicator -- the Federal Bureau of Investigation's monthly count of the instant background checks it runs for gun dealers -- is settling back toward pre-election levels. While November background checks were 42% above the year-earlier level, last month's were up just 15%.

Gun shops corroborate the slowdown. "It was really big around the first of the year," said a Georgia gun dealer (who, like all we found, wanted to remain unnamed). "Now, it's starting to taper back off. It's not near like it was. Everyone is starting to relax."

If the recent sales burst turns out to be just a one-time pop, it won't be the first time...or even the second. Firearm sales spurted in 1993, before the federal assault-weapons ban. Yet within a few years, gun sales returned to the pre-ban trendline. Another rush for guns after 9/11 lasted only about three months.

MOST OF THE TIME, guns are a pretty flat business, with moribund sales and mediocre margins. You might not know it, however, from the recent trajectories of Smith & Wesson or Sturm, Ruger. Shares of the Southport, Conn.-based Ruger arced from 6.50 to near 14, before settling back to a recent 12.75. Smith & Wesson has shot from a pre-election 1.60 to as high as 7.50. Thursday, the Springfield, Mass., company reported a 20% jump in the latest quarter's revenue, and Smith & Wesson shares ended the week at 6. That's about 20-times Wall Street's estimate for current year earnings, more than double the outfit's typical multiple. Both companies are likely to disappoint investors who expect a continuation of post-election business levels. A return to normal for these companies could easily cut their earnings -- and stocks -- by half.

Firearms are a fragmented, competitive industry in which Smith & Wesson and Ruger square off against privately owned rivals like Remington, Sig Sauer and Colt, as well as European names like Heckler & Koch, Beretta and Glock.

Both of the publicly held U.S. companies have endured decades of highs and lows. Smith & Wesson was the lead supplier of handguns to America's police departments until the mid-1980s, when Glock got the drop on it with a line of light and powerful semi-automatics. In recent years, Smith & Wesson has been regaining share among law-enforcement agencies with its own new "military and police" models, and has further extended its brand into "long guns" -- that is, hunting rifles, tactical rifles and shotguns. Revenue grew about 50% in the fiscal year ended April 2007, then another 25% in the April '08 year to reach $296 million. But earnings in the April '08 year amounted to just $9 million, or 22 cents. That was a net margin of only 3.1%. Meanwhile, at Ruger, revenue fell 7%, to $157 million for the year ended December 2007, while profits on operations were all of $2.4 million, or 10 cents a share.

Before Obama's election, 2008 was shaping up to be a pretty lousy year for gun sales. Inventories piled up at gun dealers. The funky economy hurt demand for hunting rifles -- discretionary purchases, these days. Then voters elected a Democratic majority in Congress and a president who was partial to gun control. Bad news for the gun industry, right?

That's not how it's played out. After months of desultory activity at the FBI's National Instant Criminal Background Check System, or NICS, inquiries jumped 42% year-over-year in November, to 1.5 million transactions (which are dealer inquiries, and not necessarily firearm sales). December sales continued to roar, as purchasers grabbed for the kind of semi-automatics whose sale had been forbidden from 1994 to 2004 under the federal assault-weapons ban. These included pistols whose magazines held more than 10 rounds and rifles with two or more military-style features, such as a telescoping stock, pistol grip or flash suppressor. The post-election rush for AR-15 assault rifles was followed in 2009's first months by a run on semi-automatic ammunition. For most of this year, ammo was on back order. Says a Houston gun dealer: "Sales were blowing and going!"

The National Rifle Association reports a 30% rise in membership since November. About 65,000 folks showed up at its conference in Phoenix last month.

Sure enough, the gun-store activity indicated by the FBI's background checks for November and December presaged good quarterly results from Ruger and Smith & Wesson. Ruger's sales in its December 2008 quarter spiked 72% year-over-year to $58 million, and the company exhausted its finished-goods inventory. March period sales came to $64 million, and earnings quadrupled to about $6 million, or 30 cents a share.

At Smith & Wesson, sales for the January 2009 quarter jumped 26%, to $84 million, producing profits of $2.4 million, or five cents a share. The company will detail its results for the April 2009 fiscal year on Monday, but advised investors last week that April quarter sales had risen 20%, to $100 million.

Back in November, investors didn't seem to notice what the NICS background checks were prophesying; gun stocks didn't start moving until late February. By April, Ruger's stock-market value had reached $275 million, while Smith & Wesson's topped $350 million. The companies themselves seemed ambushed by the sudden demand. Ruger's last-reported backlog was more than $136 million, while Smith & Wesson's was $200 million. Those extraordinary levels reinforce the impression made by the NICS numbers charted above, which seem to be tracing the downside of a demand bubble that is reminiscent of the NICS numbers after 9/11.

Neither Smith & Wesson nor Ruger answered our inquiries. But the Houston-area gun dealer corroborated what the FBI numbers suggest: Sales started cooling in May. "It's just not as big as it was a month and a half ago," he says. And that shoots a big hole in the outlook for the stocks.

The Bottom Line
Gun shops and FBI numbers indicate that a post-election rush is subsiding for Smith & Wesson and Sturm, Ruger. Their earnings and stocks could fall back to last year's levels.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 23 Jun 2009 | 4:00 am

Big Profits in Small Packages

Never underestimate the little guy. Investors often dump shares of small companies at the first signs of trouble: They’re perceived as riskier than behemoths like Wal-Mart or IBM. But small-cap stocks are often the first to perk up when confidence improves—leading the charge in 12 of the past 15 bear market recoveries.

With signs emerging that the economy’s free fall was nearing an end, manager Mark Coffelt made a 180-degree turn in his Empiric Core Equity fund. Just a year and a half ago, he had been shorting, or betting against, small stocks. Now, however, he has ratcheted up his exposure to small caps to 44 percent. He’s not alone. After sliding 60 percent since their peak in 2007, small stocks have seen a big run-up of late. The Russell 2000 index is up 46 percent since March. But some experts with an eye on historical stock charts say there’s much further to go. After the 1980 and 1982 downturns, for instance, small stocks rebounded with 71 percent and 98 percent gains, respectively, within 200 days of hitting bottom. Citigroup Small/Mid-Cap U.S. Equity Strategist Lori Calvasina points to other signs the rally could go further, such as increased merger activity and rumblings of a rebound in initial public offerings.

To be sure, this recession is a lot different from those in the recent past, and there may be a pullback before further gains. Typically, small caps take a much more severe drubbing than larger firms. But with the epicenter of this crisis lying with banking behemoths, the S&P 500’s slide was almost as bad as the Russell 2000’s. And the severity of the credit crunch suggests that even when conditions improve, lending will be cautious; since smaller firms have always had more difficulty accessing credit than bigger companies, financing in the postcrisis years may be even tougher. Smaller firms also don’t trade as frequently as larger stocks. With investors still smarting from the pain of getting stuck in illiquid assets during the downturn, it’s possible some may stay away from smaller stocks, limiting their upward momentum.

That’s one reason Chris Wallis, manager of Natixis Vaughan Nelson Small Cap Value fund, thinks it pays to be more selective than in past recoveries. Wallis is focusing on companies with little debt and high return on assets and avoiding areas that are heavily dependent on credit, like real estate investment trusts and financial stocks. “If you have a clean balance sheet, it’s a great time to make money,” he adds.

Lately, Allison Thacker, managing director of RS Investments’ growth team, is finding gems within technology. Many of these companies, like Internet firm Akamai, pair the sought-after traits of the little guys—like their quick reactions to new innovations—with the best elements of larger firms, such as lots of cash and little debt, she says. Smaller firms also allow investors to tap into hot trends directly; no matter how innovative a business of General Electric’s may be, you won’t see those gains quickly reflected in the conglomerate’s share price. And with even the optimists expecting paltry economic growth for the U.S. in the near term, Thacker says the hunt for companies that can grow from catalysts like clean energy or increased Internet traffic, even as the economy plods along, will intensify. That hunt is increasingly leading managers to small, nimble firms.

Our Picks: Don’t want to search for small stocks on your own? We found four fund managers with good long-term records who are beating their peers so far this year.

Wasatch Small Cap Growth

Ticker: WAAEX
Assets: $596 million
Expense ratio: 1.21 percent
YTD return: 21 percent
10-yr. avg. annual return: 8 percent

Manager Jeff Cardon looks for companies that hold little debt and expect at least 15 percent profit growth over the next five years. He also prefers companies led by managers who hold a significant stake in the business. Lately, Cardon has been buying energy stocks.

Buffalo Small Cap

Ticker: BUFSX
Assets: $1.7 billion
Expense ratio: 1.0 percent
YTD return: 18 percent
10-yr. avg. annual return: 12 percent

One of the least-expensive small-cap growth options, the fund sticks with firms with high returns on capital, competitive advantages and rock-solid balance sheets. In recent months that has steered the management team toward restaurant stocks. The fund doesn’t mind waiting for its picks to pay off, with turnover rarely exceeding 40 percent. Buffalo closed this fund to new investors in late May.

Gabelli Small Cap Growth AAA

Ticker: GABSX
Assets: $989 million
Expense ratio: 1.43 percent
YTD return: 8 percent
10-yr. avg. annual return: 7 percent

Run by veteran stock picker Mario Gabelli, who has done well spotting takeover targets. As a result, the fund has had cash (from the acquisitions) for bargain hunting this year. Unlike traditional growth managers, Gabelli seeks out companies that sell for less than what a private buyer would pay—helping the fund handily beat its peers and the index over the past 17 years.

Royce Pennsylvania Mutual Investment

Ticker: PENNX
Assets: $3.44 billion
Expense Ratio: 0.89 percent
YTD Return: 9 percent
10-yr. avg. annual return: 8 percent

The fund hunts in the small- and micro-cap world and typically holds as many as 500 stocks. The fund’s diversification, focus on high-quality firms and valuation has helped it beat two-thirds of its peers year-to-date, besting them 88 percent over the past decade. Lately, the fund’s managers, which include Chuck Royce, are honing in on firms that will benefit when the market recovers.

(Note: Data as of 6/22/09, from MORNINGSTAR)

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 23 Jun 2009 | 4:00 am

5 Stocks Analysts Have Overlooked (Screens)

Stock opinions are suddenly scarcer on Wall Street. With Bear Stearns and Lehman Brothers laid to rest and remaining investment banks withered, fewer analysts are left to forecast company earnings and issue recommendations on whether to buy shares. The Wall Street Journal reports an epidemic of dropped coverage since September. Since most analyst coverage is favorable — the number of “buy” calls consistently dwarfs the number of “sells” — corporate managers worry that dropped coverage could lessen investors’ enthusiasm for their shares.

For investors shopping for stocks, the news is mostly good. Screening software can help identify plenty of young companies that are growing nicely through the current recession, but which are largely being ignored by analysts -- at least, for now. Such companies might be among the first to benefit when investment banks replenish their research staffs and go hunting for new stocks to recommend.

The five companies listed below are covered by fewer than five analysts even though they have increased their sales and earnings per share by at least 10% apiece over the past year, and their shares are up nicely year to date.

Global Cash Access Holdings (GCA) earns generous fees helping casino gamblers get their hands on more cash after they've emptied their wallets. How generous are those fees? While casino partners like MGM Mirage (MGM) and Las Vegas Sands (LVS) are watching profits evaporate this year amid a travel downturn, Global Cash is expected to increase its sales by 8% and its profits by 11%. For now, the company makes most of its money operating its patented “3-in-1” cash machines. These prod customers who are denied bank withdrawals the opportunity to try their debit cards and then go for credit card advances, all in one seamless transaction (which, presumably, doesn’t feel the least bit like a Central Park mugging). Global Cash also earns smaller amounts by helping casinos determine which gamblers to lend house money to, and by telling casinos which rivals their customers have withdrawn cash from in the past. Eventually, the company hopes to replace cash machines and teller windows with a cashless system whereby gamblers simply enroll their bank accounts and credit cards. Its shares trade at just nine times earnings.

Retail has taken a beating over the past year and clothing stores are among the hardest hit. One relatively small chain that operates out of strip malls in low-income neighborhoods is prospering, though. Citi Trends (CTRN) has just over 350 stores in 22 states and explains in its financial filings that it competes against fellow discounters like TJX (TJX) and Ross Stores (ROST) by “appealing to African-American consumers and offering urban apparel products.” According to Oppenheimer & Company, its customers demonstrate a “high propensity to purchase apparel.” The chain enjoys one of the fastest payback periods in the industry — new stores earn back their upfront investment in about a year. Citi Trends’ growth potential isn’t lost on investors. Shares go for 18 times forward earnings. But the company has made a mockery of quarterly earnings estimates of late, topping them by double-digit percentages. It’s also debt-free with $3 a share in cash.

America’s Car-Mart (CRMT) sounds like just the sort of company for investors to avoid. However, it's benefitting from the dismal car sales seen at large dealerships over the past year. The company specializes in the low end of the used-car trade in states like Arkansas, Oklahoma and Kentucky. In the company’s most recent quarter, sales at longstanding dealerships improved nearly 3% and company profits rose 8%. Management used strong cash flow to pay down debt, which stands at a modest 24% of equity. In addition, stores are requiring higher down payments on car loans vs. a year ago, and late payments and defaults are down. Shares fetch 12 times earnings.

Have a look if you like at the details on these and the other two screen survivors below.