In today's uncertain business climate, risk taking is reserved for the truly entrepreneurial at heart. Those with an idea, a concept for change and an appetite for the unusual might find their niche in unusual places while those more intent on riding out the storm of economic crisis before committing to a fresh start may be left behind.
Business isn't just dollars and cents, it's dynamic, changeable and it often pays more to have a unique concept rather than be in a product or service area that "usually" makes money.
Innovative ideas are ones which change or challenge the status quo, and like Apple's iPod, iPhone and iPad, are often met with enthusiastic acceptance from the marketplace.
One example of how innovation was the key to success is how Blue Sky Scrubs (http://www.blueskyscrubs.com/) continues to change the look and custom of hospital garb around the world.
Founded by Shelby Marquardt, an anesthesiology resident at Hermann Hospital in Houston, Texas, she was inspired to create an operating room hat that fit her long hair, rather than settle for unattractive, ill-fitting scrub hats that were the norm.
Ms. Marquardt created the Pony Scrub Hat, and soon after, the Pixie Scrub Hat, patented both designs and her fledgling business was born. After having success with her hats, she decided to try her hand at other hospital wear, and soon, Blue Sky Scrubs was producing scrub tops, bottoms and lab coats that turned drab into unique and dull into a fashion statement with more color and variety.
Today, Blue Sky Scrubs sells a vast array of hospital and medical personnel wear to customers around the world, with orders streaming into the website.
Innovation isn't magic and it's not genetic. Anyone can innovate in any field of endeavor. Turning innovation into a successful business enterprise takes determination, desire and a bit of daring. In the case of Blue Sky Scrubs, Shelby Marquardt took on long-established hospital traditions and turned her designs into a compelling brand.
Tuesday, December 20, 2011
Monday, December 19, 2011
The Instant Market: Draghi and Bank of America Take It Down Two Notches
Once again, we are treated to the new reality of the "instant market" wherein news, or rumor, directs the flow of funds into or out of select equities, and today's catalysts were, as usual, from Europe (must have some news from Europe to move markets: it's the law) and oddly enough, from our old friends at Bank of America (BAC).
First, Europe. US markets opened with some hope and small gains across the indices. That was, until shortly after 10:00 New York time, when ECB President Mario Draghi commented that the ECB would not step up it's bond purchases, noting that monetary financing of states was not part of the treaty upon which the EU was formed. (Imagine, a world political leader actually sticking to what was agreed upon. A novel approach.)
That took the markets down a big notch, with the Dow, after hitting its highs of the day earlier - up 60 points - falling a full 120 points - to down 60 - in about an hour's time after Draghi's comments.
Draghi also said that any talk of the Euro-zone breaking apart were "morbid" and that the Euro was going to remain intact as a viable currency. He punted this gem:
While Draghi may be right about the morbidity part, the thought that the Euro is irreplaceable or inviolate is nothing more than CYA job protection. He's paid to oversee the ECB, and talking up the currency is part of his job. Somebody ought to hand Draghi a history book. Greece fell, Rome fell, Germany rose and fell a couple of times, at least. Nothing lasts forever, and, with only 11 years of history under its belt, the Euro is experiencing something of a severe confidence crisis, if not a complete failure by some of its constituents.
Most of those "morbid" speculators give the Euro another six to eighteen months, tops. And while it may indeed survive, and prove Draghi correct in the near term, it's another bad idea stemming from too many government bureaucrats attempting to furnish a centrally-planned socialist solution where none was needed. In many ways, the Euro resembles the Medicare/Medicade mess in the US, wherein the government stepped all over the established free market to create a system that is out of control and benefits mostly large medical insurance companies instead of real people with health care needs. The Euro was supposed to affect the entire continent in magical, positive ways. It has, thus far, produced a great deal of pain, financial inequities and sparked a world-wide crisis, even though that crisis was well underway, being all about fiat money anyway.
Stocks drifted along until about 3:00 pm ET when the PPT or whomever was hitting the bid - for hours - on Bank of America at 5.00 - 5.03, stopped, failed and rolled over. The bank that many equate with the financial collapse of 2008, hit a fresh, 33-month low, hitting 4.92 prior to closing at 4.99, an important figure, since many funds, by charter, cannot trade in stocks priced under 5.00, or must severely limit the size of their investment in such low-priced equities.
With banks under pressure the entire session, the demise of BAC took the whole market down the second notch, into the close. So much for recovery, at least by the "well-capitalized" US banks, whose ledgers are an indecipherable miasma of imaginary valuations, off-balance-sheet assets and liabilities and mark-to-model fantasies. With books so complex and confusing most CPAs don't understand them and after relentless support from the federal government (much of it in secret), is there any doubt that most stock pickers have shied away from US financial stocks as a whole?
Bank of America, along with Citigroup and JP Morgan Chase, to name just a few, should have been broken up in 2008-09, when they were insolvent (and still are, largely), though that would have ended the near-total dominance of the Federal Reserve and its constituents over all transactions in the US economy and beyond, and the rich bankers and their supporters simply could not stand for that. Instead, it was easier for them to socialize the losses on the backs of the US taxpayers.
Bank of America's recent swoon is only a small chapter in the ongoing saga that will bring down the oligarchical nature of our corrupt political and financial system. 99%ers are celebrating.
A couple of items of note:
Ron Paul, the Republican presidential candidate that the establishment loves to hate, has taken the lead in Iowa accordind to the most recent polling by Public Policy Polling (PPP), one of a handful of organizations tracking the rise and fall of candidates in the upcoming (January 3) caucuses.
The results have Paul at 23%, leading Mitt Romney (20%) and a rapidly declining Newt Gingrich (14%), even though Romney recently picked up the endorsement of the the Des Moines Register, Iowa's leading newspaper. Paul is also reported to have taken in more than $4 million over the past weekend, and now is in second place, behind Romney, in New Hampshire.
Also, a searing report on where we're headed in 2012, called the Thunder Road Report, leading with the cryptic warning, "Dear Portfolio Manager, you are leaving the capitalist sector and heading into a full-spectrum crisis."
The entire report is available at the end of this post.
Anybody seen Santa?
Dow 11,766.26, -100.13 (0.84%)
NASDAQ 2,523.14, -32.19 (1.26%)
S&P 500 1,205.35, -14.31 (1.17%)
NYSE Composite 7,142.45, -95.21 (1.32%)
NASDAQ Volume 1,591,603,125
NYSE Volume 3,659,820,750
Combined NYSE & NASDAQ Advance - Decline: 1230-4469
Combined NYSE & NASDAQ New highs - New lows: 110-290 (blowing out)
WTI crude oil: 93.88, +0.35
Gold: 1,596.70, -1.20
Silver: 28.87, -0.80
TRoad25
First, Europe. US markets opened with some hope and small gains across the indices. That was, until shortly after 10:00 New York time, when ECB President Mario Draghi commented that the ECB would not step up it's bond purchases, noting that monetary financing of states was not part of the treaty upon which the EU was formed. (Imagine, a world political leader actually sticking to what was agreed upon. A novel approach.)
That took the markets down a big notch, with the Dow, after hitting its highs of the day earlier - up 60 points - falling a full 120 points - to down 60 - in about an hour's time after Draghi's comments.
Draghi also said that any talk of the Euro-zone breaking apart were "morbid" and that the Euro was going to remain intact as a viable currency. He punted this gem:
I have no doubts whatsoever about the strength of the euro, about its permanence, about its irreversibility. But you have a lot of people, especially outside the euro area, who spend a lot of time in what I call morbid speculation.
While Draghi may be right about the morbidity part, the thought that the Euro is irreplaceable or inviolate is nothing more than CYA job protection. He's paid to oversee the ECB, and talking up the currency is part of his job. Somebody ought to hand Draghi a history book. Greece fell, Rome fell, Germany rose and fell a couple of times, at least. Nothing lasts forever, and, with only 11 years of history under its belt, the Euro is experiencing something of a severe confidence crisis, if not a complete failure by some of its constituents.
Most of those "morbid" speculators give the Euro another six to eighteen months, tops. And while it may indeed survive, and prove Draghi correct in the near term, it's another bad idea stemming from too many government bureaucrats attempting to furnish a centrally-planned socialist solution where none was needed. In many ways, the Euro resembles the Medicare/Medicade mess in the US, wherein the government stepped all over the established free market to create a system that is out of control and benefits mostly large medical insurance companies instead of real people with health care needs. The Euro was supposed to affect the entire continent in magical, positive ways. It has, thus far, produced a great deal of pain, financial inequities and sparked a world-wide crisis, even though that crisis was well underway, being all about fiat money anyway.
Stocks drifted along until about 3:00 pm ET when the PPT or whomever was hitting the bid - for hours - on Bank of America at 5.00 - 5.03, stopped, failed and rolled over. The bank that many equate with the financial collapse of 2008, hit a fresh, 33-month low, hitting 4.92 prior to closing at 4.99, an important figure, since many funds, by charter, cannot trade in stocks priced under 5.00, or must severely limit the size of their investment in such low-priced equities.
With banks under pressure the entire session, the demise of BAC took the whole market down the second notch, into the close. So much for recovery, at least by the "well-capitalized" US banks, whose ledgers are an indecipherable miasma of imaginary valuations, off-balance-sheet assets and liabilities and mark-to-model fantasies. With books so complex and confusing most CPAs don't understand them and after relentless support from the federal government (much of it in secret), is there any doubt that most stock pickers have shied away from US financial stocks as a whole?
Bank of America, along with Citigroup and JP Morgan Chase, to name just a few, should have been broken up in 2008-09, when they were insolvent (and still are, largely), though that would have ended the near-total dominance of the Federal Reserve and its constituents over all transactions in the US economy and beyond, and the rich bankers and their supporters simply could not stand for that. Instead, it was easier for them to socialize the losses on the backs of the US taxpayers.
Bank of America's recent swoon is only a small chapter in the ongoing saga that will bring down the oligarchical nature of our corrupt political and financial system. 99%ers are celebrating.
A couple of items of note:
Ron Paul, the Republican presidential candidate that the establishment loves to hate, has taken the lead in Iowa accordind to the most recent polling by Public Policy Polling (PPP), one of a handful of organizations tracking the rise and fall of candidates in the upcoming (January 3) caucuses.
The results have Paul at 23%, leading Mitt Romney (20%) and a rapidly declining Newt Gingrich (14%), even though Romney recently picked up the endorsement of the the Des Moines Register, Iowa's leading newspaper. Paul is also reported to have taken in more than $4 million over the past weekend, and now is in second place, behind Romney, in New Hampshire.
Also, a searing report on where we're headed in 2012, called the Thunder Road Report, leading with the cryptic warning, "Dear Portfolio Manager, you are leaving the capitalist sector and heading into a full-spectrum crisis."
The entire report is available at the end of this post.
Anybody seen Santa?
Dow 11,766.26, -100.13 (0.84%)
NASDAQ 2,523.14, -32.19 (1.26%)
S&P 500 1,205.35, -14.31 (1.17%)
NYSE Composite 7,142.45, -95.21 (1.32%)
NASDAQ Volume 1,591,603,125
NYSE Volume 3,659,820,750
Combined NYSE & NASDAQ Advance - Decline: 1230-4469
Combined NYSE & NASDAQ New highs - New lows: 110-290 (blowing out)
WTI crude oil: 93.88, +0.35
Gold: 1,596.70, -1.20
Silver: 28.87, -0.80
TRoad25
Friday, December 16, 2011
Odd Flat Finish on Quadruple Witching Day
Four times a year, the markets encounter what are known as quadruple witching days, in which all four varieties of futures and options expire on a single day, normally the third Friday of the month, as today.
On those usually-volatile sessions, there's usually a good chance that stocks will finish strongly to the positive or the negative, so it was a bit of keeping with the current theme that stocks finished the week flat, though on higher volume than has been seen lately.
It's on these quiet days that, somewhat counter-intuitively, investors can find real diamonds in the rough, but, since many hedge funds have already closed their books for the year, and, taking into account the continuing crisis in Europe and the slow pace in the US, traders were focused more on catching the quickest train out of town for the weekend rather than researching or taking positions in fresh equities.
News flow was also quite on the light side, though Fitch Ratings did its best to unnerve already-skittish investors by lowering France's AAA credit outlook from stable to negative and placing six European nations - Belgium, Spain, Slovenia, Italy, Ireland and Cyprus - on ratings watch negative, putting the six on a heightened probability of downgrade once the company completes its review by the end of January 2012.
The economic data on Friday was also not inspiring to either bulls nor bears, as CPI for November was flat with the core CPI - excluding food and energy - was up 0.2%. More than likely, if one is to believe the government bean-counters, this is indicative of a slow economy leaving companies without much pricing power, and, intuitively, a harbinger of another small wave of deflation in the near term.
Thus, stocks ended the week with their first loss in the last three, though the vast majority of the damage was done on Tuesday, the other sessions more or less range-bound.
With just ten trading days remaining in the year, traders are keeping a sharp eye out for Santa Calus and his rally hat, though there have been no sightings of the jolly fat man nor of any catalyst to spark a significant year-end rally.
In the immortal words of George W. Bush, "go shopping."
Dow 11,866.39, -2.42 (0.02%)
NASDAQ 2,555.33, +14.32 (0.56%)
S&P 500 1,219.66, +3.91 (0.32%)
NYSE Compos 7,237.65, +20.55 (0.28%)
NASDAQ Volume 2,453,577,500
NYSE Volume 4,921,504,500
Combined NYSE & NASDAQ Advance - Decline: 3315-2258
Combined NYSE & NASDAQ New highs - New lows: 109-164
WTI crude oil: 93.53, -0.34
Gold: 1,597.90, +20.70
Silver: 29.67, +0.40
On those usually-volatile sessions, there's usually a good chance that stocks will finish strongly to the positive or the negative, so it was a bit of keeping with the current theme that stocks finished the week flat, though on higher volume than has been seen lately.
It's on these quiet days that, somewhat counter-intuitively, investors can find real diamonds in the rough, but, since many hedge funds have already closed their books for the year, and, taking into account the continuing crisis in Europe and the slow pace in the US, traders were focused more on catching the quickest train out of town for the weekend rather than researching or taking positions in fresh equities.
News flow was also quite on the light side, though Fitch Ratings did its best to unnerve already-skittish investors by lowering France's AAA credit outlook from stable to negative and placing six European nations - Belgium, Spain, Slovenia, Italy, Ireland and Cyprus - on ratings watch negative, putting the six on a heightened probability of downgrade once the company completes its review by the end of January 2012.
The economic data on Friday was also not inspiring to either bulls nor bears, as CPI for November was flat with the core CPI - excluding food and energy - was up 0.2%. More than likely, if one is to believe the government bean-counters, this is indicative of a slow economy leaving companies without much pricing power, and, intuitively, a harbinger of another small wave of deflation in the near term.
Thus, stocks ended the week with their first loss in the last three, though the vast majority of the damage was done on Tuesday, the other sessions more or less range-bound.
With just ten trading days remaining in the year, traders are keeping a sharp eye out for Santa Calus and his rally hat, though there have been no sightings of the jolly fat man nor of any catalyst to spark a significant year-end rally.
In the immortal words of George W. Bush, "go shopping."
Dow 11,866.39, -2.42 (0.02%)
NASDAQ 2,555.33, +14.32 (0.56%)
S&P 500 1,219.66, +3.91 (0.32%)
NYSE Compos 7,237.65, +20.55 (0.28%)
NASDAQ Volume 2,453,577,500
NYSE Volume 4,921,504,500
Combined NYSE & NASDAQ Advance - Decline: 3315-2258
Combined NYSE & NASDAQ New highs - New lows: 109-164
WTI crude oil: 93.53, -0.34
Gold: 1,597.90, +20.70
Silver: 29.67, +0.40
Low Mortgage Rates and Returning Vets Could Boost Real Estate
Yesterday, it was mentioned here that mortgage rates hit an all-time low, with a 30-year fixed mortgage going for the ultra-affordable rate of 3.94%, which, if you've got the down payment and can find a home in a price range you can live with, puts home ownership well within your grasp.
While residential real estate is still in a deep downturn, some markets could get a boost from the thousands of returning veterans from Iraq, now that the conflict has officially ended. Soldiers coming home will qualify for a Military VA Loan which carries the unique feature of requiring no down payment, a benefit for the danger these veterans endured.
Along with low, low rates on conventional mortgages, refinance mortgage rates are also at ridiculously low levels. Anyone paying anything North of 4.5% can probably save a bundle by refinancing and stretching out the term of the loan.
While having no mortgage is ideal, few people are in such a sweet spot. Foreclosure and short sales are still making up an unhealthy share of the residential market, but, for buyers, there are deals on good, quality homes in solid neighborhoods in almost all parts of the country.
Scanning the internet for deals on one's local craigslist might be a good start, but with home sales mostly down, there are likely plenty of professionals who will gladly show you a selection of suitable properties in your area because they will earn a commission if and when you buy. A competent Realtor can guide you to the right home at the right price and usually lead you to a lender that can handle all of the mortgage and paperwork details.
It's also prudent to hire a competent attorney with expertise in real estate to handle the closing. Clouded title issues are still predominant in areas hit hard by foreclosures and recession, so get an expert to make sure what you're buying will remain yours.
While residential real estate is still in a deep downturn, some markets could get a boost from the thousands of returning veterans from Iraq, now that the conflict has officially ended. Soldiers coming home will qualify for a Military VA Loan which carries the unique feature of requiring no down payment, a benefit for the danger these veterans endured.
Along with low, low rates on conventional mortgages, refinance mortgage rates are also at ridiculously low levels. Anyone paying anything North of 4.5% can probably save a bundle by refinancing and stretching out the term of the loan.
While having no mortgage is ideal, few people are in such a sweet spot. Foreclosure and short sales are still making up an unhealthy share of the residential market, but, for buyers, there are deals on good, quality homes in solid neighborhoods in almost all parts of the country.
Scanning the internet for deals on one's local craigslist might be a good start, but with home sales mostly down, there are likely plenty of professionals who will gladly show you a selection of suitable properties in your area because they will earn a commission if and when you buy. A competent Realtor can guide you to the right home at the right price and usually lead you to a lender that can handle all of the mortgage and paperwork details.
It's also prudent to hire a competent attorney with expertise in real estate to handle the closing. Clouded title issues are still predominant in areas hit hard by foreclosures and recession, so get an expert to make sure what you're buying will remain yours.
Competence and Industry Experience Essential in Business Expansion
Whatever the business climate, successful business people are always on the lookout for new opportunities, but today's sluggish economic environment makes this an excellent time to seek out a possible merger or take-over target to expand one's enterprise because some businesses have been hurt more than others and may be available for prices far lower than they were before the onset of the financial crisis.
Naturally, the desire to expand one's business carries risk, but lending costs for large and medium enterprises are new record lows and likely to remain there for some time.
Entering into negotiations to purchase a business or merge with a larger or smaller rival is a complicated process that requires levels of skill and expertise in investment banking, negotiations and it's always important to have somebody on your team that understands the business from hands-on experience.
For instance, you wouldn't want a banker who has done only retail business if you're in chemicals. In that instance, the expertise of an executive with experience in chemical investment banking - a very specialized, technical field, would be appropriate to your needs.
Naturally, the desire to expand one's business carries risk, but lending costs for large and medium enterprises are new record lows and likely to remain there for some time.
Entering into negotiations to purchase a business or merge with a larger or smaller rival is a complicated process that requires levels of skill and expertise in investment banking, negotiations and it's always important to have somebody on your team that understands the business from hands-on experience.
For instance, you wouldn't want a banker who has done only retail business if you're in chemicals. In that instance, the expertise of an executive with experience in chemical investment banking - a very specialized, technical field, would be appropriate to your needs.
Additionally, somebody with chemical mergers and acquisitions would be ideal to handle negotiations and set up contracts because the technical jargon and specialized aspects of the chemical business would likely swamp even the best M&A expert without the requisite experience in the field.
Growing a business takes plenty of time, experience and savvy, but buying or merging a business is an area in which most entrepreneurs are not well-equipped. That's why it's important to do research and find a company that specializes not only in M&A, but also is experienced in your particular line of endeavor.
Getting the wrong advice on a merger or company acquisition could be a costly mistake that could end up putting your own business on the block, at a drastically reduced price. Find a company that has a solid, proven track record of success, without glitches in the process and your expansion plans should proceed without a hitch.
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