Bloomberg has an article on renewable energy credits that discusses their operation and lack of popularity. Renewable energy credits have been a marginal public relations success but have failed to be a significant revenue generator.
To read the Bloomberg Markets article, please click here:
James Sutliff
Congress passed the bill to extend the Bush era tax cuts for another two years. The bill also includes estate tax provisions that increase exemptions and address gift tax and generation skipping tax issues. Today, the House voted 277-148 in support of the bill and on December 15th the Senate voted 81-19.
To read a related Bloomberg article, please click here
Jim Sutliff
China has announced a long awaited shift in monetary policy to help control inflation. The shift to a prudent monetary policy may include higher interest rates some time time next year. The higher rates should help to slow inflation and may also slow foreign direct investment. Investors should also consider the effects of a properly valued Yuan.
To read a related Reuters article, please click here:
http://www.reuters.com/article/idUSTRE6B215220101203
James Sutliff
Alliant Techsystems is an aerospace and defense company that has a line of smart weapons. One smart weapon is the shoulder fired XM25 which has a range of 2,300 feet. The weapon has been described as a game changer because it can target and hit the enemy behind cover. The XM 25 carries a price tag as high as $35,000 and the army expects to buy 12,500 in the next year.
To read a related Fox News article, please click here:
http://www.foxnews.com/scitech/2010/11/24/armys-revolutionary-rifle-use-afghanistan/
To visit the site for Alliant Techsystems, please click here:
Jim Sutliff
Another round of bailouts will end the possibility of the Euro being a global reserve currency. Ireland is likely to be the first in a string of bailouts that could include Portugal and Spain. Spain is the biggest concern for the EU because of the size of their economy and the amount of foreign bank assets in the country.
To read a related Barron’s article, please click here:
http://online.barrons.com/article/SB50001424052970203984204575634312409683410.html?mod=BOL_hpp_dc
Jim Sutliff
Stocks fell more than 140 points as global concerns weighed on investors. The Korean conflict started to heat up again with artillary fire between North and South Korea. The markets were already concerned with the debt crisis in Europe and the potential for Portugal and Spain to also require a bailout.
To read a related Forbes article, please click here:
James Sutliff
U.S. interest rates continued to fall as concerns relating to European debt and quantitative easing weighed on investors. The second round of quantitative easing by the Fed, known as QE2, is sparking concerns of inflation and a weaker dollar. Traders may also be booking gains that were made on previous investments based on the Fed move to buy Treasuries.
To read a related Reuters article, please click here:
http://www.reuters.com/article/idUSN1017807820101110
James Sutliff
IBM has announced an aggressive stock buyback plan and recently added $10 billion to the effort. The company also plans to reserve more funds for stock repurchase activity in April. Currently, IBM is trading around $140 per share which is near all-time highs.
To read a related Wall Street Journal article, please click here:
http://online.wsj.com/article/SB10001424052702303341904575576184055012558.html
Jim Sutliff
The sweeping victories by the Republicans may serve to keep the bulls running in the market. The House is now solidly controlled by the Republicans and Democratic control of the Senate has been watered down a great deal. Democrats in the Senate are likely to show caution regarding issues such as higher income and estate taxes. The tax rate on carried interest also may be off limits to changes by the Democrats. There are several Senate seats held by Democrats that are vulnerable in 2012 so this Congress should be much more conservative.
To read a related Bloomberg article, please click here:
James Sutliff
The Dow Jones Industrial Average is up 74 points on the day with investors focused on the election and the Federal Reserve. The expectation that Republicans will make gains in both the House and Senate are part of the reason for the market rise. Another factor is the expected second round of quantitaive easing by the Federal Reserve.
To read a related Wall Street Journal article, please click here:
Jim Sutliff
Investors should always be on the lookout for accounting tricks that skew corporate earnings. Changing the revenue recognition policy is one way that a company can alter their earnings. Green Mountain has received attention from investors after the announcement of a probe by the SEC.
To read a related MarketWatch article, please click here:
http://www.marketwatch.com/story/how-to-spot-some-age-old-revenue-cooking-tricks-2010-10-22
Jim Sutliff
