This'n'That; July Twenty-Seventh #1; Investing

Some "Possibles" I'm Watching
    While I pride myself in being somewhat of an advisor to the extended family's investors, I have not had a record above .500!  There's certainly been more losers than winners in our stable of stocks and mutual funds.  Normally, this doesn't affect "the extended's" investments; I 'try them on for size' before recommending the successful stocks and funds, thus I 'eat' the vast majority of the 'also-rans.'  While some in the family invest for price appreciation, 'The Young Miss Lovely' and I invest for dividend yields; to that end, I've been watching a couple of issues:
Cellcom Israel Ltd (CEL)  We've owned the company previously for several years.  I don't recall the purchase or sale prices, nor the dividend yield.  I just remember that we "made a ton'a money on it!"  We'd still own the issue were it not for a delinquent child's credit card balance.  At today's (7/26) market close CEL was up 9 cents (1.71%) to $5.35/share, just off it's 52-week low of $4.35/share.  Also in the past 52 weeks CEL has risen to $26.87/share.  The current dividend is .34/quarter (annual: $1.36/share); annual yield of 25.42%.  While the company can reduce the dividend cash amount, or eliminate the dividend altogether, I'm confident that CEL dividend will remain stable so long as the Israeli-Iranian political turmoil doesn't ramp up from it's current levels.
http://en.wikipedia.org/wiki/Cellcom_(Israel)
http://investors.ircellcom.co.il/
Alumina, LTD (AWC):  We've not owned this issue previously, we're just watching it.  At today's close AWC was up $0.12 (4.46%) to $2.81/share, just off it's 52-week low of $2.65/share.  AWC's 52-week high is $9.84/share.  The stock has a semi-annual dividend of $0.12 resulting in a annual dividend yield of 8.54%.  As with any issue, AWC could 'fiddle' with it's dividend and thus alter the yield.
http://en.wikipedia.org/wiki/Alumina_Limited
http://www.aluminalimited.com/
    Remember the individual investor is responsible for his or her own due diligence.  There are many sources--online, in print and business tv--for investing and investment information.   Some I use:
www.scottrade.com
www.marketwatch.com
http://seekingalpha.com/dashboard/investing_income
http://www.investorplace.com/
http://www.nasdaq.com/
http://corporate.troweprice.com/ccw/home.do#
https://www.americancentury.com/index.jsp
Til Nex'Time....

This'n'That; November 11th[Vets;Health;politics;stocks]

Veteran's Day, 2008 I have my flag[s] out-Do you? We fly the American Flag EVERYDAY. On three holidays, we add U.S. Air Force and U.S. Army flags to the front porch collection. Those holidays are Armed Forces Day, Memorial Day and Veteran's Day [Your grandparents and other ol' duffers know Veteran's Day as Armistace Day-the 11th hour of the 11th day of the 11th month {1918}]. The Kind Of Leadership America Needs!! If you're thinking I'm referring to PEBO, you're mistaken!! The information below came to me via one of those "forward-this-to-everybody" emails. So far as I know, it's a factual email. Here it is, verbatim: Prime Minister John Howard-Australia Muslims who want to live under Islamic Sharia law were told on Wednesday to get out of Australia, as the government targeted radicals in a bid to head off potential terror attacks. Separately, Howard angered some Australian Muslims on Wednesday by saying he supported spy agencies monitoring the nation's mosques. Quote: "IMMIGRANTS, NOT AUSTRALIANS, MUST ADAPT. Take It Or Leave It. I am tired of this nation worrying about whether we are offending some individual or their culture. Since the terrorist attacks on Bali, we have experienced a surge in patriotism by the majority of Australians." "This culture has been developed over two centuries of struggles, trials and victories by millions of men and women who have sought freedom." "We speak mainly ENGLISH, not Spanish, Lebanese, Arabic, Chinese, Japanese, Russian or any other language. Therefore, if you wish to become part of our society.... Learn the language!" "Most Australians believe in God. This is not some Christian, right wing political push, but a fact, because Christian men and women, on Christian principles, founded this nation, and this is clearly documented. It is certainly appropriate to display it on the walls of our schools. If God offends you, then I suggest you consider another part of the world as your new home, because God is part of our culture." "We will accept your beliefs and will not question why. All we ask is that you accept ours and live in harmony and peaceful enjoyment with us." "This is OUR COUNTRY, OUR LAND, and OUR LIFESTYLE, and we will allow you every opportunity to enjoy all this. But once you are done complaining, whining, and griping about Our Flag, Our Pledge, Our Christian beliefs, or Our Way of Life, I highly encourage you take advantage of one other great Australian freedom, THE RIGHT TO LEAVE!" "If you aren't happy here then LEAVE. We didn't force you to come here. You asked to be here. So accept the country YOU accepted." "Maybe if we circulate this amongst ourselves, American and Canadian citizens will find the backbone to start speaking and voicing the same truths." PEBO take note: Rather than raising the already high percentage of the federal largess that goes to those who refuse to be contributing members of society, you need an attitude adjustment!! Your administration would far better serve the economy and the country as a whole if you developed the level of testicular fortitude that Australian PM John Howard has!!! Dismal Market Results In my entry [T'n'T] of 11/03, I mentioned several stocks that might be a part of one's "watchlist." These stocks have continued to fall in price and bear watching, but with further patience: SIRI;[11/03>>11/07] $.338>>$.260; GM $5.79>>$3.36; DVD $2.14>>$2.00; TRK 15.95>>14.84; ISCA 31.39>>$28.65. [ISCA- Motley Fool is touting this stock as a "must own" due to it's intellectual property holdings] One of our family's portfolios has investments in KFN, Q and DFR. Each of these stocks were purchased with their dividend rates in mind. KFN: KKR Financial Holdings, LLC. Yup, these guys are Kolberg, Kravits and Roberts..... who were involved in some of the largest take-overs/buy-outs of the '80s and '90s!! This stock closed last Friday @$3.69, with a dividend of $1.60 [43+%]. Q: Qwest Communications International, Inc. They provide voice, data, Internet and video service in the United States. The corporation operates in three segments: Wireline Services, Wireless Services and Other Services. This stock closed last Friday @$2.98 with a dividend of $0.32 [10.7%]. DFR: Deerfield Capital Corp. This company started out life as a REIT [Real Estate Investment Trust]. They have since changed their charter to that of a "C" Corporation. This stock closed last Friday @$3.17 with a dividend of $3.40 [107.3%]. ***With the stock market in a state of flux to put it mildly, the exorbitant dividends and rates of return CAN NOT HOLD!!! For one thing, the companies couldn't afford the payouts to maintain the rates [KFN-43+%; DFR-107%]. If these stocks continue in freefall, their return rates will continue to rise. At some point the companies involved will readjust the rates to reflect their profitibility and investments.

A Hint Of PEBO's Direction

Some advocacy groups have been thwarted during the last 12-14 years. They now have a President they think will look kindly on their list of socialist legislative priorities. In the following categories, their wishlist includes:

JUSTICE REFORM

1. Eliminate sentencing disparity that is harsher on crack cocaine than powder cocaine.

2. Expand alternatives to incarceration.

3. Extend federal voting rights to people released from prison.

4. Restore welfare and food stamp eligibility to people with drug felony convictions.

GAY RIGHTS

1. Outlaw workplace discrimination based on sexual orientation or gender identity.

2. Epand hate-crimes laws to cover violence motivated by anti-gay bias.

3. Modify immigration laws to accommodate same-sex partners from other nations.

4. Repeal "don't ask, don't tell" policy that bars gays from serving openly in the military.

FEMINIST RIGHTS

1. Close the gender wage gap and increase minimum wage.

2. Enable more workers to benefit from paid sick days and family/medical leave.

3. Ratify CEDAW [Convention on the Elimination of All Forms of Discrimination Against Women], the United Nations treaty to end sex discrimination.

REPRODUCTIVE RIGHTS

1. Expand access to birth control and family planning.

2. Eliminate federal support for abstinence-only sex education and support comprehensive programs that include teaching about contraception.

3. Limit or overturn policies that interfere with a woman's right to have an abortion.

IMMIGRATION RIGHTS

1. Halt or cut back on workplace raids tareting illegal-immigrant workers.

2. Enact comprehensive immigration reform that provides illegal immigrants with options other than deportation.

The Chia Pet Ain't Just For The Window Sill Anymore

Research has revealed that more than two-thirds of all deaths in the United States are diet related. More than half of all deaths are caused by coronary occlusion, blocage of blood flow to the heart/brain. 97% of all coronary occlusion could be eliminated by a vegetarian diet. In "Advances in Cancer Research,**" researchers have concluded "At present, we have overwhelming evidence....[that] none of the risk factors for cancer is... more significant than diet and nutrition." This brings up a possible "super" food, chia seeds [called 'The Ancient Food of the Future']. Chia seed, once valued so highly it was used as currency, is familiar to most as the seeds used in the Chia Pet[tm] clay animals. The Chia seed was used for centures as a staple food by the indigenous peoples of the American southwest, Mexico and Central America. It's use as a high-energy and endurance food has been recorded as far back as the ancient Aztecs. Southwestern indians would RUN from the Colorado River to the California coast on trading missions. Their only nourishment on the trip was chia seeds. Carbohydrates are the fuel for energy in the human body. Prolonging their conversion into sugar stabilizes metabolic changes, diminishing the surges of highs and lows, creating a greater duration in the fueling effects. Mixing appropriate measures of chia seeds and water produces a semi-solid gelatin-the result of mixing the seed's soluable fiber with the water. One of the exceptional qualities of the Chia seed is it's ability to absorb 12 times it's weight in water. This ability allows the body to more efficiently regulate the absorption of nutrients and the dispersion of fluid. Chia seed may be used inconjunction with almost any diet your doctor or nutritionist feels is necessary for your diet. There's LOTS MORE information in the original article I found; listed below:

**Advances in Cancer Research: A series of books highlighting on-going cancer research and research results. At latest count-100 volumes.

Important URLs:

Cited article: http://www.living-foods.com/articles/chia.html

Newspaper article: http://findarticles.com/p/articles/mi_qn4188/is_/ai_n24351311

Retail sources for seeds: http://www.nuchiafoods.com/ ; http://www.chiagrowers.org/ ; www.pronto.com/prices-chia-seed/ [this one seems to be the cheapest source]

Til Nex'time...............

This'n'That; October, 14th[obama;Scruffy;Stocks;Midtown]

Intentional Falsehoods: I have as little use for Barack Obama as any naysayer on the planet. I also have no desire to promote or spread intentional false or misleading information about him or any other politician on the current landscape. To that end I must comment on an email I received about Mr Obama which is roughly 95% FALSE!! This email, entitled "Obama Truths" speaks of his Muslim faith; refusing to place his hand over his heart during the Pledge of Allegiance; drug use at Occidental College; funding his education, buying his house through alleged "loans" from Tony Rezko... need I go on.......?? The confirmation of these falshoods/misleading information is available at: http://www.snopes.com/politics/obama/muslim.asp ....and John McCain?: [This is Rush Limbaugh's opinion as expressed on last Friday's or yesterday's show. After considerable thought, I'm inclined to agree.] It's well known that while John McCain was a prisoner at the "Hanoi Hilton," he was subjected to many beatings, interrogations and other forms of mistreatment. Rush believes that during those horrible times, McCain developed a kind of "go-along-to-get-along" attitude... compromising with his captors without divulging any sensitive information or putting his fellow prisoners at further risk. This attitude is evident throughout his presidental campaign. McCain is considered by the Republican Party heavyweights to be a "throw-away" candidate; while Mitt Romney is to be groomed to run against Obama or Mrs Clinton in 2012. I'm still hoping that the voters will see through all the fluff [on both sides] and elect common sense, fiscal sense and experience. Not Poor Timing-Just No Cash: As some may know, I'm not a "value investor" in any sense of the phrase!! Mostly, I buy pennystocks and hope that I made a good choice based on the research I've done. The only "drum I can beat" on this issue is when I bought Siris Satellite Radio for sixty-cents and sold it for $7.75 [+1,291.6667%] after holding it for a couple of years. I live in the Rochester, N.Y., area where PAETEC Holdings Corp [Ticker: PAET] is a big player, locally. They hold the naming rights to PAETEC Park [soccer, I think]. They've cooked a deal with the city of Rochester to knock down Midtown Plaza [America's FIRST indoor shopping mall]. The plan was that PAETEC would build a 30-something floor office building on the Midtown site. The point of all this is that I wasn't able to participate in their stock run-up!! I cudda bought the stock around noon last Friday at it's recent low of $0.72/share. I cudda sold the stock at about 10:30AM today [Tuesday] at it's recent high of $1.65/share!!! That's abouta 229.1667% GAIN!!!! [Shudda, Cudda, Wudda!!!] Meaning that a $720.00 investment [1k shares] would have yielded $1,650.00!!! Oh.............. due to it's recent stock freefall, PAETEC has scaled it's headquarters office building back to a paltry 7 stories. My question is "will it EVER be built??" [The State of New York, which has been deficit spending for years, has committed $65,ooo,000 JUST TO KNOCK DOWN Midtown Plaza!!!] ...On A Sad Note: For several years, "Scruffy" has been a loved and loving member of the family. Scruffy is a black 'n' white long haired male cat. For the last several months he's had kidney, bladder and stomach problems. His recent weight was around nine pounds, down from a norm of 14 pounds. He's been on several oral medications and for the last three weeks, IV hydration at home-every other day. For the last several days, he's eaten little and became very lethargic; losing most of the "spring in his step." Late last week, the decision was made that there was very little hope for his recovery; his condition would only deteriorate further. Today, October 14, 2008, was chosen as his last. At about 8:50AM, Scruffy passed away quietly, comfortably at the Irondequoit Animal Hospital. He came into our world, our hearts as a scrawny, skinny, stray.... having just won one of many "street fights" that day. After a vet check, he kinda moved in and took over!! He was definitely the "Alpha Male" in every sense of the phrase!!! As cats go, I could take'em or leave'em-BUT NOT AFTER knowing, loving and living with Scruffy. Some dog breeds are known to be protective of others in their environment. Scruffy must have been part Shepard.... More than once he kept the other cat [a de-clawed female] from escaping out the front door!!! Scruff' was a most loving individual himself..... a "real ladies man!!" When the ladies would pick him up... he'd put his paws around their necks and nuzzle under their chins..... Good-bye, my friend..... You CANNOT and WILL NOT ever be replaced!!! Til Nex'time.....

The Welfare State.... [Part 1, "The New Deal"]

During the years after World War I and those leading up to his nomination and subsequent election to the Presidency, Franklin Roosevelt [FDR] was fully aware of the nation's problems. Although FDR had been born into and grew up in a household of wealth and privilege, he had first hand knowledge of the economy and the various strata of that era's society. His knowledge was gained through his education and various governmental posts at the local, state and federal levels. FDR-Groton, Harvard and Columbia Law educated, had worked as a lawyer in New York City; was a NY state Senator, US Senator, Assistant Secretary of the Navy and NY Governor. The nation was experiencing unbridled prosperity in the years after the world war. The concept of "installment buying" had arrived !!! People on all levels of society were making purchases with small down payments followed by a few dollars monthly until the purchase was complete. This concept had eventually spread throughout the economy including the stock market. Brokers allowed stock purchases with as little as 10-15% as a down payment. The broker then loaned the investor the balance of the purchase price. This advance called a "margin," was paid back at the sale of the stock. With so much investing done on the margin, brokers were forced to borrow funds from banks who also became heavily in debt. Almost everyone from the day laborer to the Wall Street financier, were "making money-hand over fist" !!! The period from the mid to the late 1920s provided great prosperity for the vast majority of Americans. Housewives were investing their milk money !!! The New York Stock Exchange reached it's highest levels in August, 1929. The Dow-Jones Industrial Average [DJIA or "The Dow"] is a mathematical barometer of the health of American stock markets as a whole. On September 3, 1929, the DJIA reached it's peak at 381.17. The market then fell sharply, the decline lasted approximately a month, loosing 17% of it's value. During the next week, prices gained about half their losses, but then suffered a drastic downturn once more. This accelerated into "Black Thursday", October 24, 1929. Although minuscule by today's standards, a record 12.9 million shares traded on that day alone. On the following Monday the trading continued; on into the following day, "Black Tuesday", October 29, 1929-setting a record [16.4 million shares traded] that wasn't broken again until 1969. By the close of business on "Black Tuesday", nearly all stocks were worthless. On the 29th alone, the market lost more than $14 billion in value. The total for the week was more than $30 billion. By comparison, the $30 bil. was 10 times greater than the federal budget and far more than the US spent in all of World War I. Millionaires became paupers overnight; those who had invested their savings were left penniless !!! And this wasn't the worst, the DJIA finally reached it's lowest point on July 8, 1932 at 41.22. The Dow would not regain it's highest 1929 levels until 1954. With a republican [Herbert Hoover] in the White House at the start of The Great Depression, democrat FDR was "a shoo-in" for the presidency. Looking back seventy-five years to 1933, the phrase "New Deal" should have made the average adult "giddy" with anticipation !!! Remember, the country was deep in the grasp of The Great Depression; the unemployment rate for that year was 24.9% [13,000,000 people] !!! Actually, there are two sets of statistics-those previous which considered the total civilian population and the 'Darby' rate which considered WPA workers as employed. The 'Darby' rate for the same year was 20.6%...... not far behind !!! The phrase "New Deal" actually has a history that precedes FDR's use. FDR initially used the term in 1932 during his speech accepting the presidential nomination at the Democratic National Convention in Chicago. FDR may have borrowed from the David Lloyd George who used the phrase: "A New Deal for Everyone" during his 1919 campaign for British Prime Minister. American reformers have used it as well, including Sen. Carl Shurz [Mo] in 1871, Woodrow Wilson during his NJ gubernatorial campaign in 1910 and Sen. Robert LaFollette [Wi] in 1912. FDR's New Deal involved three phases: 1. Confidence in the banking system had to be restored to end the panicked withdrawals at banks throughout the U.S. 2. Prices had to be stabilized to encourage businesses and farmers to resume production. 3. Provide federal assistance to those described as the one-third of the nation that was "ill-housed, ill-clad, ill-nourished." Mr. Roosevelt got started practically as he sat down at his desk. FDR's inauguration was on March 4, 1933. On March 6, he proclaimed a "bank holiday" and called the Congress into special session. In the first 100 days of that session, Congress passed the President's program: the Emergency Banking Act, the Agricultural Adjustment Act and the Nation Industrial Recovery Act as well as the legislation creating the Tennessee Valley Authority, the Home Owners Loan Corporation and the Federal Emergency Relief Administration. FDR also took the country off the gold standard to prevent a run on government reserves. Later New Deal laws created and/or funded the following: Public housing for workers Unemployment insurance Social Security pensions Welfare for needy families Framework for labor unions and workers' collective bargaining Public service jobs for the unemployed AMONG OTHERS !!! The New Deal program became nearly as defining a moment in American History as the Civil War. Never before had so much legislation and policy emanated from the federal government and in the process it became the center of political authority. Previously, crises governments had cut spending, balanced the budget, curtailed reform to provide the stability they thought necessary for economic recovery. The New Deal reversed that pattern to lift the country out of hard times and in so doing, altered social and economic policy forever. During the 1932 presidential campaign FDR had an advisory group later named the "Brain Trust". The members of his group were Columbia University professors Raymond Moley, Rexford Tugwell and Adolf Berle, Jr., among others. This group helped Mr Roosevelt formulate public policy solutions to the nation's social and economic problems. After the election they never met again as a group but were appointed to, and served, in various federal posts. Small gains were made during the early years of The New Deal. Between 1933-1935, the gross national product [GNP] had risen a paltry $16 billion; unemployment was reduced by only 3 million. As small as these gains were, they were nearly derailed by an ill-advised budgetary move. The 1937 recession seemed to prove that FDR's New Deal economic and social policies weren't working. The President had become cautious and cut government spending. He maintained a policy of "watchful waiting" until early in 1938 when he proposed a $3.75 billion relief bill. By the time FDR took action, the recession had already done it's damage; personal income had dropped by 12% and there were 4 million added to the unemployment rolls. Several things the President could have done to forestall or lessen the impact were not done. Increases in the federal gold reserves could have been used to relax credit restrictions and increase the money supply. FDR kowtowed to the bankers and financiers [who opposed any inflationary measures] and raised monetary reserve requirements which tightened credit. In early 1939 public opinion of the New Deal's effectiveness were 2 to 1 AGAINST !!! Most of the country believed that the economy was worse than at the start of The Great Depression. Some members of FDR's cabinet were the main detractors, principally Henry Morgenthau, the Secretary of the Treasury. Mr Morgenthau is quoted that May, saying "We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started. And enormous debt to boot." The Great Depression continued until the U.S. entered World War II. The massive spending required during the war years doubled the GNP. Businessmen redoubled their efforts for greater output as an expression of patriotism. Patriotism drove most people to voluntarily work overtime and forgo leisure activities to earn money after the devastating years at the start of the depression. Patriotism meant that people willingly accepted rationing and price controls for the first time. Cost-plus prices military contracts insured that businesses made a profit regardless of inefficiencies or poor labor. The post-war economy continued to thrive, driven by the needs of the returning soldiers and the needs of what would be labeled "The Baby-Boomers". The "Alphabet Soup [a PARTIAL list]:" 1. Reconstruction Finance Corp. [Large loans to big businesses] Ended in 1954. 2. Federal Emergency Relief Administration[FERA] Unskilled jobs as relief. Replaced by the WPA in 1935. 3. US "Bank Holiday." [1933] Closed ALL US banks until they were certified by Federal reviewers. 4. "Abandonment of Gold Standard." [1933] US currency no longer backed by gold reserves. 5. Civilian Conservation Corps. [1933] Young men performed unskilled labor in rural areas. 6. Tennessee Valley Authority. [1933] Generated electricity for rural areas in the Mid-south. 7. Agricultural Adjustment Act. [1933] Raised farm revenue by cutting total farm output, primarily crops and livestock. 8. National Recovery Act. [1933] Reduce unfair competition, raise prices and wages. 9. Public Works Administration. [1933] Built large public works projects using private contractors. 10. Federal Deposit Insurance Corp. [1933] Insure deposits in banks to restore public confidence. 11. Securities Act of 1933. [1933] Created the SEC. Codified stock market standards. Risks to be accurately disclosed. 12. Civil Works Administration. [1933-34] Provided temporary jobs to millions of unemployed. 13. Indian Reorganization Act. [1934] Moved away from assimilation. 14. Social Security Act. [1935] Provided financial assistance to elderly, handicapped. First payout-1942. 15. Works Progress Administration. [1935] National labor program. 2 million jobs for the unemployed. Construction projects for men; Sewing projects for women; Arts projects for artists, musicians, writers. 16. National Labor Relations Act [Wagner Act]. [1935] NLRB[oard] to supervise labor-management relations. Modified by the Taft-Hartley Act [1947]. 17. Judicial Reorganization Bill. [1937] FDR's attempt to "pack" the US Supreme Court. Failed to pass Congress. 18. Fair Labor Standards Act [29 USC Ch 8]. [1938] Established the 40-hour work week as the norm. Established $0.40 per hour as the minimum wage. 19. Federal Surplus Relief Corp [1938] Farm loans. Commodity purchase and storage to maintain price levels. Later consolidated with Div of Marketing and Marketing Agreements into the Surplus Marketing Administration [1940]. Merged into the Agricultural Marketing Administration [1942]. Nest time, let's have a look at President Johnson's "Great Society" Til then......................