Author: Serkadis

  • Finally Final: Saab sale transfer completed between GM and Spyker

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    2011 Saab 9-5 – Click above for high-res image gallery

    After a Mullholland’s worth of twists and turns, the sale of Saab Automobile AB to Spyker Cars is complete. The official transfer of ownership from General Motors to the Dutch supercar concern occurred earlier today, and now Saab will get down to the difficult business of becoming profitable.

    According to Victor Muller, CEO of Spyker Cars, a man who is fast becoming something of a folk hero in Sweden:

    “Through this acquisition we add approximately 15 euros per share in equity and 60 euros of assets. With a well funded business plan in place we are looking forward to working with Saab’s management on the realization of that plan and bringing exciting new products to our customers. Real Saabs, Saab Saabs.”

    With a compelling new 9-5 waiting in the wings and a raft of vehicles (9-3X, 9-4) just around the bend, the Swedish automaker’s short-term future looks bright, but even before those new products have run their course, the real battle for sustained profitability will begin, with Saab likely needing to partner with a larger automaker to share development costs for new models.

    As it is, the rumormill has been rife with return-to-form scuttlebutt, including the return of a five-door hatchback bodystyle for the next-gen 9-3 and the possibility of a ’50s-era teardrop-inspired 9-2 model that would seem to jibe with Muller’s “Real Saab, Saab Saabs” comment. Will the promise of such models be enough to see the Griffin rise triumphantly from the ashes? If the build-up to the handover of the brand is any indication, Saab’s revival effort is at least going to be one hell of a spectacle. Official statements from both Spyker and GM available after the jump.

    Gallery: 2010 Saab 9-5

    [Sources: Spyker Cars, General Motors]

    Continue reading Finally Final: Saab sale transfer completed between GM and Spyker

    Finally Final: Saab sale transfer completed between GM and Spyker originally appeared on Autoblog on Tue, 23 Feb 2010 12:27:00 EST. Please see our terms for use of feeds.

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  • Want A Non-Productive ‘Hard Asset’ With Psychological Value That Beats Gold? Buy Collectibles And Art

    bullversusbear3.jpg

    A piece of research highlighted by CXO Advisory really gets to the heart of what gold is — a collectible, ie. a non-productive asset that has shared psychological value among humans due to established beliefs.

    Thing is, according to the paper, other collectible hard assets, such as old stamps and art, have outperformed the yellow metal on a 108-year time frame:

    CXO Advisory:

    Using Stanley Gibbons stamp catalog prices to construct a value-weighted British stamp price index/returns and returns for other asset classes over the period 1900-2008, they conclude that:

    Stamps generate a nominal (real) annualized return of 7.0% (2.9%) over the entire sample period, worse than equities, better than bonds and comparable to art (see the charts below and the blog entries of 1/29/10 and 11/13/09). The volatility of stamp prices approaches that of equities.

    Nominal stamp prices decline by 1% or more in only four years, but are flat over extended intervals (1949-1957 and 1983-1994). Strongest nominal gains occur at the start of the 20th century, from the mid-1960s through the 1970s and during the 2000s.

    Over the entire sample period, the 2.7% annualized real return for art is close to that for stamps. There is a boom in stamps (but not art) in the 1970s, and a boom in art (but not stamps) in the 1980s.

    While the annualized 0.7% real return for gold over the entire sample period is much less than that for stamps, price patterns for gold and stamps are similar.

    Gold owners can even preserve their bearish instincts by buying the bull vs. bear collectible pictured above. In fact there are all kinds of hard assets with well established psychological value all around us. Thus gold isn’t that unique deep down. Even if it was used as currency in the past, if you own something that people value, they’ll simply give you whatever currency you ask from them for it and then you can go pay someone with that currency.  Deep down, currencies are just intermediaries for the exchange of value, they aren’t value in and of themselves. That’s why if I’m worried about inflation I’d rather just own the Mcdonald’s brand or something else that is both well entrenched in people’s minds and actively grows its value.

    The author owns shares of Mcdonald’s.

    Join the conversation about this story »

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  • 8 Signs You Are Overtraining

    Exercise FatigueWhen you spend some time among the ever-growing circle of evolutionary-based health writers, thinkers, bloggers, and doctors, you notice a curious thing happening. Conventional Wisdom is becoming turned on its head. Saturated fat is generally healthy and excessive endurance training is generally unhealthy become the presiding narratives. Grains are either unnecessary or have the tendency to attack the gut lining, even guts with “clinically undetectable levels of sensitivity.” You don’t need six square meals a day to keep your metabolism up and running, after all; one or two a day will do just fine.

    Less is more – as far as exercise goes – is becoming another accepted truth, especially when you understand that 80% of your body composition is determined by how you eat.

    If you dial the diet in (Primal Blueprint, of course), you just don’t need to “burn off” tons of excess calories with a lot of hard work. Yet many people are still tied to that assumption and ride that fine line between training enough to maximize strength and unnecessarily reaching too far. Overtraining is a very real danger for those engaged in physical culture. In fact, while the majority of this country (and of many others) suffers from a massive physical activity deficit, a sizeable portion of my readers faces the opposite danger. Understanding exactly how much to exercise can be tricky. No activity is worse than some, while too much may be worse than none at all. The ideal lies somewhere in between – though not necessarily in the middle, but rather smack dab in the “just enough” section. Can “just enough” be quantified? Perhaps it could be quantified using a battery of round-the-clock tests and measurements of anabolic and catabolic hormones, various serum concentrations, lactate build-up, cortisol:testosterone ratios, etc, but that would be expensive, unwieldy, and completely individualized. These types of objective measurements, ironically, would be more subjective than anything else; you couldn’t accurately extrapolate an overtraining threshold for the entire population from a single trainee’s results.

    People are unique. Sure, nutritional requirements for human physiology adhere to a set of overarching principles, yet a single, universally specific macronutrient profile cannot be nailed down for all humans. In the end, each of us must craft his or her own identity, plan, regimen, and discover his or her own weaknesses, vulnerabilities, and sensitivities. In short, we must each become our own test subject (as well as astute observer) if we wish to optimize our health and our fitness. The concept of overtraining is similar. There’s a clinical definition – a state of chronic fatigue, depression, and underperformance that persists despite rest – and there’s a more general, working definition – a basic imbalance between work and recovery. Overtraining can also be highly personal and goal-dependent. Overtraining might describe anytime your training is working against you, and where adding more of it makes the problem worse. If you want to avoid overtraining, there are some grand, overarching principles to follow, but you’ll also want to pay attention to certain personal, entirely subjective cues.

    What follows is my basic list of signs that indicate you may be overtraining. Some are objective measures, while others derive from my own personal experiences with overtraining. There are overlaps, and I’ve probably missed more than a few, but I’m confident what’s listed will be invaluable to anyone who trains, and trains hard.

    1. You repeatedly fail to complete your normal workout.

    I’m not talking about normal failure. Some people train to failure as a rule, and that’s fine. I’m talking failure to lift the weights you usually lift, run the hill sprints you usually run, and complete the hike you normally complete. Regression. If you’re actively getting weaker, slower, and your stamina is deteriorating despite regular exercise, you’re probably training too much. Note, though, that this isn’t the same as deloading. Pushing yourself to higher weights and failing at those is a normal part of progression, but if you’re unable to lift weights that you formerly handled with relative ease, you may be overtrained.

    2. You’re losing leanness despite increased exercise.

    If losing fat was as easy as burning calories by increasing work output, overtraining would never result in fat gain – but that isn’t the case. It’s about the hormones. Sometimes, working out too much can actually cause muscle wasting and fat deposition. You’re “burning calories,” probably more than ever before, but it’s predominantly glucose/glycogen and precious muscle tissue. Net effect: you’re getting less lean. The hormonal balance has been tipped. You’ve been overtraining, and the all-important testosterone:cortisol ratio is lopsided. Generally speaking, a positive T:C ratio means more muscle and less fat, while a negative ratio means you’re either training too much, sleeping too little, or some combination of the two. Either way, too much cortisol will increase insulin resistance and fat deposition, especially around the midsection. Have you been working out like a madman only to see your definition decrease? You’re probably overtraining.

    3. You’re lifting/sprinting/HIITing hard every single day.

    The odd genetic freak could conceivably lift heavy, sprint fast, and engage in metabolic conditioning nearly every day of the week and adequately recover, without suffering ill effects. Chances are, however, you are not a genetic freak with Wolverine’s healing factor. Most people who maintain such a hectic physical schedule will not recover (especially if they have a family and/or a job). Performance will suffer, health will deteriorate, and everything they’ve worked to achieve will be compromised. Many professional athletes can practice for hours a day every day and see incredible results (especially if they are using performance enhancing substances), but you’re not a professional, are you?

    4. You’re primarily an anaerobic/power/explosive/strength athlete, and you feel restless, excitable, and unable to sleep in your down time.

    When a sprinter or a power athlete overtrains, the sympathetic nervous system dominates. Symptoms include hyperexcitability, restlessness, and an inability to focus (especially on athletic performance), even while at rest or on your off day. Sleep is generally disturbed in sympathetic-dominant overtrained athletes, recovery slows, and the resting heart rate remains elevated. Simply put, the body is reacting to a chronically stressful situation by heightening the sympathetic stress system’s activity levels. Most PBers who overtrain will see their sympathetic nervous system afflicted, simply because they lean toward the high-intensity, power, strength side.

    5. You’re primarily an endurance athlete, and you feel overly fatigued, sluggish, and useless.

    Too much resistance training can cause sympathetic overtraining; too much endurance work can cause parasympathetic overtraining, which is characterized by decreased testosterone levels, increased cortisol levels, debilitating fatigue (both mental and physical), and a failure to lose body fat. While I tend to advise against any appreciable amount of endurance training, chronic fatigue remains an issue worthy of repeating. Being fit enough to run ten miles doesn’t mean that you now have to do it every day.

    6. Your joints, bones, or limbs hurt.

    I’m unaware of any clinical tests that can identify overuse injuries specifically caused by overtraining, but don’t you think that pain in your knee might be an indication that you should reassess how you exercise that knee? In the lifts, limb pain can either be DOMS (delayed onset muscle soreness) or it can indicate poor technique or improper form; DOMS is a natural response that should go away in a day or two, while poor form is more serious and can be linked to overuse or overtraining. With regard to endurance training, if you creak, you wince at every step, and you dread staircases, it may be that you’ve run too far or too hard for too long. The danger here is that your daily endorphin high has over-ridden your natural pain receptors. You should probably listen to them more acutely. I tuned them out for longer than I should have and it cost me my career as a marathoner (so I got that going for me, which is nice).

    7. You’re suddenly falling ill a lot more often.

    Many things can compromise your immune system. Dietary changes (especially increased sugar intake), lack of Vitamin D/sunlight, poor sleep habits, mental stress are all usual suspects, but what if those are all locked in and stable? What if you’re eating right, getting plenty of sun, and enjoying a regular eight hours of solid sleep each night, but you find yourself getting sick? Nothing too serious, mind you. A nagging cough here, a little sniffle or two there, some congestion and a headache, perhaps. These were fairly normal before you went Primal, but they’ve returned. Your immune system may be suffering from the added stress of your overtraining. It’s an easy trap to fall into, simply because it’s often the natural progression for many accomplished athletes or trainees looking to increase their work or improve their performance: work harder, work longer. If you’ve recently increased your exercise output, keep track of those early morning sore throats and sneezes. Any increases may indicate a poor immune system brought on by overtraining.

    8. You feel like crap the hours and days after a big workout.

    Once you get into the swing of things, one of the great benefits of exercise is the post-workout feeling of wellness. You’ve got the big, immediate, heady rush of endorphins during and right after a session, followed by that luxurious, warm glow that infuses your mind and body for hours (and even days). It’s the best feeling, isn’t it? We all love it. What if that glow never comes, though? What if instead of feeling energetic and enriched after a workout, you feel sketchy and uncomfortable? As I said before, post-workout DOMS is completely normal, but feeling like death (mentally and physically) is not. Exercise generally elevates mood; if it’s having a negative effect on your mood, it’s probably too much.

    How about you, readers? Do you have any tried-and-true indicators that your body has had more than it can handle? Let me know, and check back next week for information on how to avoid, mitigate, and respond to overtraining.

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    Related posts:

    1. How to Deal with Overtraining
    2. Drink up: Red Wine Ingredient Reduces Signs of Aging
    3. Dear Mark: Primal Compromises for Athletes

  • Democrats cautiously embrace Obama health plan

    WASHINGTON (AP) – Congressional Democrats cautiously embraced President Barack Obama’s new health care plan as their last hope for enacting a comprehensive overhaul. Republicans trashed it, dimming prospects for any deal at the bipartisan health care summit that Obama has scheduled for Thursday to try to jump-start the debate.

    A year after calling on Congress to act to reform the nation’s costly and inefficient health care system, Obama finally produced a plan of his own Monday. It used legislation already passed by the Senate as its starting point, making changes designed to appeal to House Democrats.

    Even after months in which health care gradually turned from Obama’s top domestic priority into a political albatross, Obama opted for one last attempt at full-scale legislation. It costs around $1 trillion over a decade, requires nearly everyone to be insured or pay a fine, and puts new requirements on insurance companies, including – in a new twist responding to recent rate hikes – giving the federal government authority to block big premium increases.

    In the end Obama may have to settle for much less than what he proposed Monday – or nothing at all. But many Democrats said that despite all the bad-news polls and the loss of their filibuster-proof Senate supermajority in a special-election upset, it would still be better to pass a sweeping bill than make small changes or none at all.

    If Obama fails on a comprehensive health care overhaul where Bill Clinton and other presidents failed before him, the chance won’t come around again anytime soon.

    “This is the last time out,” said House Ways and Means Committee Chairman Charles Rangel, D-N.Y. “So this is it. This is it.”

    The whole endeavor will now rise or fall on Obama’s ability to sell his plan at the summit Thursday, and the reaction from lawmakers and the public in the days ahead. Congressional Democrats got their first look at the proposal Monday morning. Reflecting the uncertain future of the health overhaul effort, many focused as much on the fact that Obama finally stepped in with a detailed plan of his own as on the policy details.

    “The president needs to say ‘This is what I’m for’, and it sounds like he’s done that,” said Sen. Tom Carper, D-Del.

    Obama’s plan does not include the government insurance option sought by liberals and it dramatically scales back a tax on high-value insurance plans from the Senate bill that was opposed in the House. It eliminates a controversial Medicaid deal for Nebraska, offers all states more help with Medicaid funding, and beefs up subsidies to help lower-income people buy care, all changes that won praise from House Democrats. It also closes the so-called “doughnut hole” in Medicare’s prescription drug coverage.

    Individuals and small businesses would shop for insurance in regulated state-based marketplaces called exchanges.

    Obama tried to avoid the mistakes Clinton made in delivering a health care proposal to Capitol Hill and telling Congress to pass it, but many now believe he erred in the opposite direction.

    Republican leaders made no secret of their contempt.

    “Democrats in Washington either aren’t listening, or are completely ignoring what Americans across the country have been saying,” said Senate Minority Leader Mitch McConnell, R-Ky. “Our constituents don’t want yet another partisan, back-room bill that slashes Medicare for our seniors, raises a half-trillion dollars in new taxes, fines them if they don’t buy the right insurance and further expands the role of government.”

    Rep. Eric Cantor, the House Republican whip, assailed the proposal Tuesday as a “repackaged” version of Senate-passed legislation that the American people already have rejected.

    Cantor, R-Va., said “the American people do not like the Senate health care bill,” and he suggested that Obama will be able to rely only on Democrats to push the bill through to final congressional passage. He called it a “nonstarter” and said the health care summit Obama has scheduled later this week likely won’t be productive.

    If Obama can’t achieve agreement with Republicans, White House officials made clear Monday they’re prepared to attempt to push the legislation through the Senate under controversial rules allowing a simple majority vote rather than the 60-vote supermajority Democrats no longer control.

    “The president expects and believes the American people deserve an up or down vote on health reform,” said White House Communications Director Dan Pfeiffer. “And our proposal is designed to give ourselves maximum flexibility to ensure that we can get an up or down vote if the opposition decides that they need the extraordinary step of filibustering health reform.”

    Under that approach, the House would have to pass the bill already passed by the Senate, and both chambers would then pass the package of changes released Monday by Obama. But it’s not at all clear that Democratic leaders command the votes they need to pull it off in either chamber. If Obama chooses to go that route he’ll have to work hard to bring balky Democrats along with him.

    Cantor made his remarks on ABC’s “Good Morning America.”

    On the Web

    White House: http://www.whitehouse.gov

    Distributed via Chicago Press Release Services


  • Home prices rise 0.3 percent in December

    MIAMI (AP) – Home prices rose for the seventh straight month in December, a sign of price stability as the U.S. housing market continues its bumpy road to recovery.

    The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday rose 0.3 percent from November to December, to a seasonally adjusted reading of 145.87. The index was off 3.1 percent from December last year, nearly matching analysts’ estimates that it would fall by 3.2 percent.

    Only five of 20 cities in the index showed declines from November to December. The index is now up more than 3 percent from its bottom in May, but still 30 percent below its May 2006 peak.

    Los Angeles and Phoenix posted the largest price increases. The worst performer was Chicago with a 0.6 percent decline.

    Rising prices are a key to the nation’s economic recovery because they make homeowners feel wealthier and more comfortable to spend money. Consumer spending accounts for more than two-thirds of all economic activity.

    Price increases also help rebuild equity for homeowners who currently owe more on their mortgages than their properties are worth. Roughly one in three homeowners with a mortgage are now in that position, according to Moody’s Economy.com.

    The housing market is seeking stability as it bounces back from a four-year recession. Sales of previously occupied homes fell almost 17 percent in December, the largest monthly drop in 40-years of record-keeping, the National Association of Realtors said. Data for January will be released Friday, with analysts forecasting a 1 percent rise.

    Sales of newly built homes are expected to rise 5.3 percent in January, after declining sharply a month earlier. The Commerce Department will release new data on Wednesday.

    On a quarterly basis, U.S. home prices fell 2.5 percent compared with the fourth quarter of 2008.

    The Case-Shiller indexes measure home price increases and decreases relative to prices in January 2000. The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index.

    Distributed via Chicago Press Release Services


  • The Garrett, Watts Report (Written in 67 degree weather in Berkeley, California, February 23, 2010)

     

    garrettwatts

    To Our Clients, Colleagues and Friends,

    • What happens when governments run massive deficits and then create/print too much money to fund them?  Here’s some data on the world’s worst inflations, and note in the third column that this is the daily rate. If we were to look at it annually, there would be too many zeroes for this page. The famous German inflation had prices rising 29,500% in one month, but if you look at the monthly rate for Hungary , the number comes to 4.19 x 1016.  That’s 4.19 times 10 to the 16th power.

    Country

    Peak of inflation

    Daily inflation

    Time for prices      to double

    Hungary

    July, 1946

    207%

    15.0 hours

    Zimbabwe

    November, 2008

    98%

    24.7 hours

    Yugoslavia

    January, 1994

    65%

    1.4 days

    Germany

    October, 1923

    21%

    3.7 days

    Greece

    October, 1944

    18%

    4.3 days

    China

    May, 1949

    11%

    6.7 days

    And isn’t it interesting that inflation so often goes hand-in-hand with disruption of civil society and personal freedom? Hungary and China had inflation concurrent with takeovers by Communist thugs, and in Zimbabwe , the inflation left something like 90% of the population unemployed. Let’s not forget that Germany ’s 1923 inflation is widely credited with giving rise to Hitler.  With enough inflation, governments can pay off their debts for pennies on the dollar, but they will destroy the country. Look no further than Yugoslavia .  The time of their great inflation was when the country came apart, and today there is no more Yugoslavia .

    • Some 25-30 years ago, this writer went to Rio de Janeiro for the Carnival at a time when Brazil was suffering from runaway inflation.  We did a little test by buying a can of Coke Cola at the same time every morning in the hotel lobby, and at the same time every evening, and it was scary to see prices move up so quickly and inexorably. .
    • Will the mortgage broker ever go away?  We know some smart people who’ve started up broker shops recently, and we think they’ll find good niches where they add value and make a good living.  Scott Van Dellen and Preston James are two such people, both of whom we helped make the move.  The days of mortgage brokers making bazillions of dollars are gone, but you can make decent money and be your own boss. There are worse things in life.
    • Do you want to acquire a failed bank with those great terms from the FDIC?  Fine, but in order to qualify, you must have at least 10% total risk-based capital, Tier 1 risk-based capital of at least 6%, a Tier 1 leveraged capital ratio of at least 4%, and a CAMEL rating of 2 or better.  The management component of your rating must also be a 1 or a 2.
    • The last requirement reminds us of a friend who was CFO of a San Diego bank that got a CAMEL 1 but a 2 for management.  Their argument to the Examiner-in-Charge was essentially, “How can you give us an overall rating of 1 and then give us a 2 for management?  Who do you think did all the things that got us the CAMEL 1 if it wasn’t management?   Was it little fairies that came in during the night?”  A hilarious and true story, but we forget the outcome.  If they appealed it to the Ombudsman, we doubt he changed it. The Ombudsmanalways rules in favor of the regulators.
    • Last week we wrote “This week’s cartoon is…….. mostly a comment on yes-men, brief-case carriers, ass-kissers and sycophants.”  We just re-read that sentence and were particularly pleased with it.  Do you ever do that, write something you really like?  By the way, Ardythe Brandon was the first person we heard who referred to someone as his boss’ brief-case carrier.
    • You know that 2-3 minute Hitler video that has subtitles about the USC football program?  Someone now put in sub-titles having Hitler screaming about HVCC.    It’s pretty clever.
    • Last week we mentioned that almost $42 out of every $100 of the federal budget goes to service the debt.  Maybe we’re being simplistic, but isn’t that a bit like a family spending 42% of its money on credit card bills?  Yes, a government can print money the way a family can’t, but printing too much money almost always leads to disaster.  Zimbabwe went crazy the last few years printing new money, and the result was inflation last year of 231,000,000%.  Yes, that 231 million!  If that happened here, that $4 bag of popcorn at the movies would cost $920 million.
    • You say it can’t happen here? Going back only 150 years to our Civil War, inflation in the confederate states was 9,000% by the end of hostilities. In the North, inflation peaked at “only” 80%.
    • We see lots of smaller companies whose owners decide they no longer like personally guaranteeing warehouse lines, who are struggling, and who want to join a bigger organization.  We also see few of these “mergers” really succeed. Client (and one-time Real Estate Finance student of mine at Cal ) Evan Stone did one such “merger” and it’s been a big success. The company he absorbed was much larger than his own Pacific Union, and one reason it may be succeeding is that he’s letting the acquired company maintain a separate income statement, keep almost their entire management staff, and retain their corporate culture. We just find this interesting.
    • What did Bob Gibson, Lew Burdette, Randy Johnson and Mickey Lolich all have in common?  All won three games in a World Series, and that’s quite something.  Here’s Randy Johnson, and if 12 year old kids still put together All Ugly Teams, he’d be the starting pitcher.
      j3
      It’s amazing how much time we spent the summer after 7th grade doing All-Star Lefties teams, All-Star Jewish teams and so on, but the one we worked on most was the All-Star Ugly Team. Don Mossi (below) was always our starting picture. Bill James wrote of him “Don Mossi was the complete five-tool ugly player. He could run ugly, hit ugly, throw ugly, field ugly and ugly for power. He was ugly to all fields. He could ugly behind the runner as well as anybody, and you talk about pressure … man, you never saw a player who was uglier in the clutch.”
      j2
    • We mentioned the movie Valentine’s Day, and we forgot to mention that Taylor Swift can really act. Her portrayal of an airhead cheerleader is hilarious.
    • Remember National Bank of Detroit (NYSE: NDB), Nice But Dull?   Mike McMahon reminds us that they never did big deals, just lots of small ones, and hence their other nickname for NBD, No Big Deals.
    • Farmers Bank and Trust is a great example of a successful family-owned community bank, and we’re proud to have done work for them.  The banks owns an excellent mortgage company, CapWest Mortgage, and their head of secondary marketing Director dug up the Sinatra version of “I  Left My Heart in San Francisco,” which is attached.   What do you think?  We think it’s good but lacks the soulfulness of the Tony Bennett one.
    • We made a donation to the U.S.O. in lieu of Christmas gifts to our clients, and the more we learn about this great organization, the more we like what they do. Whether you’re for or against the wars in Iraq or Afghanistan , we all support the young men and women stationed there.  We strongly urge all of you to send a small donation to them, even if only $10.  Contact them at www.uso.org.
      j1
    • We were just in Maryland , and what do you make of their state motto?  It’s Manley Deeds, Womanly words.  What the heck does that mean?  Well, we’re off to Seattle .  See you soon.

    Garrett, Watts & Co.

    “Helping lenders increase revenues, control costs, and better manage risk.

  • VC Explains How Damaging Software Patents Can Be

    Despite claims that no VCs would ever invest in companies without patents, we’ve been seeing more and more VCs moving over to the side of recognizing that patents are more often hindering their portfolio companies rather than helping them — and these are some of the most respected VCs around these days. Brad Burnham, who has already called for an independent invention defense for patents has responded to Nathan Myhrvold’s ongoing campaign to legitimize patent shakedowns. Burnham has written up a detailed post on how and why software patents are so damaging. It comes back to the same point that we’ve been making for years: truly inventive people don’t need a patent as incentive to invent: they just need a need in the marketplace and they go and create. And, when there’s a need, plenty of people are probably coming up with similar solutions — but why do we limit the market to just one?

    Burnham talks about the experiences with his portfolio companies. First, in explaining why the software industry took off, he points out that Myhrvold is wrong in suggesting that it was intellectual property protection that resulted in software becoming an industry:


    The real reason the independent software industry emerged is that operating systems and APIs made it possible for independent software vendors to develop applications independently. They no longer had to ask permission of the hardware vendors. This same characteristic of permissionless innovation led to the explosion of independently created services on the internet. The rampant abuse of the patent system has created the opposite condition for the creators of software and web services today.

    Not only is it becoming impossible to invent new services on the web without the permission of a patent holder who claims to own the intellectual property embodied in your invention, it is impossible to know who you need to ask permission of.

    From there, he puts to rest the myth put forth by our favorite patent supporters in the comments that every tech company should just do a simple patent search and they’ll be “safe” by pointing out how unrealistic that is. An entrepreneur, who Burnham knows, gave this example:


    I hired several firms to search for patents that our service might infringe. Each of them came back with completely different patents and each time I sent them back to do it again, they came back with still more different patents. When I searched myself in the patent database, each time I entered the same search query, it would return different results. None of these patents seemed to cover what we did, so I eventually gave up.

    But the real issue here is the total myth that tech companies infringing on patents are “stealing” ideas from others. Time and time again, the actual details of lawsuits have shown that it’s almost never the case that a company accused of infringing ever actually knew about the original patent. Instead, it’s almost always an independent invention. And yet, Myhrvold persists with the myth that techies are going out and “stealing” the ideas of others. Burnham points out how rare this seems to be:


    I have been investing in software and web services since 1993 and have worked in venture backed startups since 1985. I have never met the people Nathan is describing here. I have never been a party to a discussion about ignoring someone’s intellectual property rights for the sake of market share or to free up expansion capital. If anyone can point me to the clear cut abuses that Nathan is describing, I’d be grateful. My experience has been the opposite. As I described in this post, the companies I work with invest a huge amount of time and energy creating a service from scratch only to find after they have launched and become successful that a patent holder they have never heard of, operating (if they operate at all) in an entirely different market claims that our company has stolen their property.

    Indeed. This is the key sticking point. Patent system supporters love to create this false imagery of the independent inventor who had his “idea stolen” by some big company. And, there’s no doubt that there are very rarely stories of some company copying an idea from someone else — but it’s pretty rare — and usually it just happens in the course of traditional competition. When McDonald’s launches chicken nuggets, should that mean that Burger King cannot do the same? That’s the nature of competition and it’s what leads to greater and greater innovation. What Myhrvold is pushing does not lead to greater innovation at all, but to the hoarding of information and to the limitation on the necessary process of experimentation and competition that result in real, and necessary, innovation.

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  • RadioShack’s Earnings Just Exposed How Greedy Investors Have Become (RSH)

    Last night, old-time electronics retailer Radio Shack (RSH) reported its fourth-quarter earnings and they were very strong. Profits jumped 26% thanks to an increased demand for wireless products and services.

    The company earned $75.7 million, up from $60.1 million compared to last year.

    It’s fantastic news, especially for an old player like Radio Shack. But there’s just one problem: its stock is currently down 6.16% to $19.36 a share, making it the second biggest loser in the S&P 500 today.

    Why are investors shunning Radio Shack?

    Well, the market is down as a whole, but that can’t be all of it.

    What seems likely is that investors have become uber-greedy, and even strong earnings are a reason to sell.

    RSH Chart Feb23

    Traders clearly think that Radio Shack has enjoyed its bull run for too long now. Since June of 2009, the stock has doubled in value and has “double topped,” a technical analysis term that indicates a major sell off is about to occur after an extended uptrend. Keep in mind: this is Radio Shack. Who do you know that shops at a Radio Shack? No one I know goes there.

    It will be interesting to see if RSH can hold above $20 a share for much longer.

    Join the conversation about this story »

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  • My Big Question: iPad 3G or Verizon MiFi?

    Because I hail from Massachusetts, where our politicians are famous for being against something before they are for it, I’ll just state this: I was dead set against another data plan for wireless Internet before I was for it. I pay $70 a month for my Edge iPhone contract. Adding in any sort of additional data plan would jump my “out of house” Internet access costs to over $100/month.

    However, as I look to use an iPad to supplement my iPhone usage — or have a device that does sit between an iPhone and my MacBook Pro — I’ve been giving this question a lot of thought. I’m not a heavy traveller. Most of my “travel” time is spent on the commuter rail, and the MBTA has at least one or two Wi-Fi-equipped coaches per train. The service isn’t great — Edge access on my iPhone is faster — but it’s handy if I need to get my laptop online. Due to security reasons, I can’t get a device on the wireless network at work, so I would have to hope that if I needed to get a file onto the iPad, the rumored mounting solution would work.

    So, assuming I always have my iPhone with me, the odds are very good I’ll not be without Internet access. The problem, though, is the more I check my e-mail, read blogs, Twitter, watch a video, etc. on the iPhone, I’m running the battery down and can’t use it as a phone. This is problematic for emergency uses, and a hassle when you get home and your wife asks, “Did you get my voice mail about picking something up for me?” As a result, I have a support line of charging cables (one by the bed, one in my home office, one in my work office, two in my bag, one in my truck) because the iPhone battery life is so abysmal.

    Which gets me to thinking: if the iPad can handle that and the battery dies down, I’m not crap out of luck. I can wait until I get home, to the office etc. to charge it. Plus, there’s enough times during the year I want a device larger than an iPhone to get online with: My dad and I take road trips, and I’d like to leave my MacBook at home and not worry about getting online if the hotel doesn’t have free Wi-Fi. A month’s worth of iPad data usage is roughly 2-3 nights of paid Wi-Fi in a hotel. So, I came around to the idea that additional “always on” Internet isn’t a bad thing. Once  I had that paradigm shift, I started debating the idea of a Verizon MiFi vs. the iPad 3G.

    The MiFi is an interesting device. It’s about the same size as a credit card and can get up to five devices online, Without a two-year contract it’s $269 and then $60 a month. With a two-year contact, it’s $99 and $60/month. The iPad 3G is $130 more, and no-contract plans range from $15 (for an almost useless amount of data) to $30 for what they claim is unlimited.

    On the surface, the 3G seems like a better economic model. If financial hardships befall me, I can cancel the 3G plan and suffer like the rest of the great unwashed masses, or, if I don’t use it much, I can just activate it when I need to. It’s very flexible.

    Where the MiFi starts to shine is connecting more than one device , and each of those devices thinks it’s on a Wi-Fi network. This is very key when you think of the restrictions Apple has placed on the iTunes store. Want do download an album that’s over 20MB? You can’t. Also, apps that simply don’t work on 3G (like placing Skype Calls) now do. The extra frosting is it’s not on AT&T, so I’m doubly covered for data access.

    In the end, I’m going to just get the 3G iPad. It’s cheaper with no contract, and if I really have to, I can use it as a bridge to getting data to and from my MacBook — I can’t tether, but if needed I can exchange Word files via sync. It’s also an all-in-one device; I won’t have to worry about extra charging cables or another battery life. Were I a more heavy traveller, carrying all three devices with me, I would be giving the MiFi serious thought. As an aside, for the rare times I need to get my MacBook online, I might look at the Virgin Broadband2go. It’s only $100, and pay-as-you-go prices range from $10-50.

    How about you? Are you getting the iPad 3G, or looking into a device like the MiFi?

    Related GigaOM Pro Research:
    • 5 Tips for Developers Targeting the iPad
    • Web Tablet Survey: Apple’s iPad Hits Right Notes
    With The iPad, Apple Takes Google To the Mat

  • Top loading oven

    The applications such as the maintenance and the burn-in and qualification testing of down-hole electronic logging equipment for the petroleum industry, the polymerization of very long composites parts (helicopter or windmill blades) have required the production of top loading ovens, speciality of FRANCE ETUVES.
    The standard top loading ovens are 4 m long and have a 360L working volume. They heat up to 200°C (280°C in option and with the addition of a cooled air generator they can cool up to -40°C).
    The inner casing is made of corrosion resistant stainless steel bright polished. The outer casing, made of sheet steel, is finished in tough stoved epoxy paint RAL7035 or colours desired by the customer. The oven is on a robust frame with swivel and braked casters allowing to easily move the oven.
    The two extremities of the oven can be easily removed to connect end-to-end 2 or several ovens of this type. This system allows to adapt the oven to the lengths of the different parts to dry and to assure in safety the continuity of the process.
    The opening of the door at 90° allows a top loading for an easy loading.
    The ventilation speed is adjusted so as to speed up the drying phase and the temperature homogenization in the oven. The hot air is horizontally distributed in the whole working volume. Adjustable deflectors allow to adapt the direction of the airflow.
    The temperature is constantly and precisely controlled. The control is assured thanks to a PID digital controller. A thermostat prevents possible overheating.
    A lot of options are forecasted and created specification after specifications.

  • Welding Travel Carriage – Fillet, Butt, Lap

    The Moggy® portable friction drive carriage automates horizontal, fillet, lap, and butt welding operations. The carriage can carry one or two guns to weld either one or both sides of a work piece. Adjustable guide rolls automatically and accurately align the weld gun to follow the weld seam. The unit automates continuous or stitch welding in which the stitch weld is controlled by a computer chip programmed to provide true distance on/off regardless of weld speed. While the carriage does not require track for most applications it is designed to run on standard machine track if required.
    www.gullco.com

  • DMS63 Series telescopic rails

    With DMS63 Telescopic Rail Series ROLLON introduces a new linear solution to move very heavy structures maintaining high stiffness.
    The strenghtness of the system is guaranteed by sections 63 and 43 rails and by double “T” intermediate element.
    It can support extremely heavy loads even with vibrations and for 24 hours a day movements with high stroke frequences.
    On request we can provide rails with double direction stroke.
    Superficial treatments available are electrolytic zinc coating as per ISO2081 or, if the working environment requires stronger protection, chemical nickel coating.

  • A WORLDWIDE VISIT TO NUREMBERG

    The worldwide opening of the windows, doors and facades exhibition will take place at the Fensterbau/Frontale 2010 Trade Fair in Nuremberg from March 24 to March 27.
    The Fom Group will display its product range in a 340-square-metre exhibition space set aside for machine manufacturers, together with its partners COMALL (one of Europe’s leading players for punching machines and an emerging market for office logistics) and PROFTEQ (specialising in PVC processing machines).
    There are plenty of novelties on view. The FOM multispindle line with external PVC screw drive offers a highly automated and technologically advanced system offering customers the chance to carry out complex profile cutting and processing operations in PVC.
    FOM Industrie systems cater to a number of industrial applications, ranging from the automotive industry to road marking, urban design, furniture, subcontracting and door and window fittings.
    To receive your free invitation, please write to: [email protected]

    FOM GROUP_Pavilion 4A_ Stand 221

  • New General Manager for Rollon Corporation

    Rollon Corporation has appointed Richard Wood as General Manager for North America. He joins Rollon from NSK Precision America and brings with him twenty years of linear motion industry experience including positions with Bosch Rexroth and RHP Bearings.

    “ROLLON is a first class manufacturer with high performance products and a reputation for outstanding customer service,” reports Wood. “I am delighted to be leading a company that places such a high value on working alongside engineers to provide expert applications support and deliver compelling linear motion solutions.”

  • DRX30 stainless steel telescopic rail with radial ball bearings

    ROLLON’s X RAIL product family is growing with the new DRX30 telescopic rail.
    ROLLON DRX30 bridges the gap between cheap drawer slides and heavy duty telescopic linear bearings.
    ROLLON’s experience making heavy-duty linear bearings and drawer slides has given us the knowledge to develop this new family characterized by simple and economical designs assembled from heavier guage steel.
    Fully telescopic movement equal to more than the total closed length but assembled with a reenforced intermediate member for added strength and load capacity.
    DRS30 in zinc-plated steel also available.

  • Euromate launches XL modular extraction hood

    Alkmaar (the Netherlands), January 2010 – In 2009, Euromate launched a unique extraction hood based entirely on modular components. With the new XL version, Euromate is meeting the latest demand for stretched extraction hoods up to 30 m². When extraction at source is impossible, extraction hoods may be the best way to extracting welding fumes at workshops.

    In addition to many logistical advantages, the extraction hood’s extremely functional design makes it easy to install. The hood can be hung from the ceiling with its integrated hoisting eyes or mounted on aluminium legs. The XL version has extra corner reinforcement to guarantee a solid construction.

    The spark-resistant welding strips are a significant accessory and can be used to isolate a working area. The high-quality strips are made of thermal plastic material and can be cut into specific sizes, according to your needs. The strips not only protect the welders inside, they can also protect people working nearby from the welding light, arc-eye and weld-flash. Furthermore, the welding strips keep other airflows – such as draughts – outside the extraction hood and prevent fumes from escaping the isolated area – thereby optimising the entire extraction system.

    As extraction often takes place in the middle of an extraction hood, fumes easily escape on the sides. Euromate therefore developed an extraordinary side-extraction framework, optimising the airflow considerably. The XL version has extra extraction points in the cross profiles to guarantee optimum extraction in larger working areas. Thanks to the well designed deflector plate the risk of fire is reduced significantly; sparks are prevented from being sucked into the ductwork, effectively eliminating this well-known fire hazard.

    The modular extraction hood of Euromate is available from 1.5 m² (1 x 1.5 m) up to 30 m² (5.5 x 5.5 m).

    Euromate has been specialising in indoor air cleaning for more than 30 years, with industrial pollution and welding fumes being special areas of expertise. We know about the work, the discomforts and risks that welders face on a daily basis and what the air-cleaning aspects of that work entail.

    For more information please visit www.euromate.com or contact Euromate directly on +31 (0)72 5640 604.

  • Conventional valves – Electrohydraulic components

    A full line of conventional valves, mostly cartridge type, are available on subplate execution, or with threaded ports or flange mounting

    Flow up to 600 l/min
    Pressure up to 350 bar

    Also in PED execution (European
    Directive for pressure equipments)

  • Best PSP Games

    Many people carry a portable gaming system for on-the-go play and for most, the PSP is the way to go.  So what are the best PSP games available right now or coming very soon?  Well, lucky for the player, MMO Explorer has found that there are some seriously awesome titles in the PSP games roundup.

    Metal Gear Solid has always been one of the most popular PSP games out there and the latest, Peace Walker, has taken it up a notch with some awesome Metal Gear Solid gameplay for the portable.  Definitely tops right now in the most anticipated of the great PSP games to hit the shelf.

    If RPG is more your style, you’ll love the latest Valkyria rendition with Valkyria Chronicles 2, which doesn’t have the HD of the console version, but takes it to the next level with some awesome gameplay and great additions to the classes and multiplayer modes of the original.

    For the horror/first person fan, there are a couple of awesome PSP games available.  The classic Resident Evil is now Portable with some great game play, good story continuance, and best of all: a quick-play Gun Survivor option for just getting out your zombie-slaughtering needs with a quickness.  One of the best PSP games available now.

    Close behind, though, is Parasite Eve on its 3rd Birthday, whic his definitely another favorite in the PSP games roundup.  This evolution of the popular story-based RPG/shoot-em-up is more aimed for the 3rd-person-shooter lover than it is for the RPGer.  Still, an awesome game that is definitely one of the great PSP games.

    Overall, whatever your favorite, there are some awesome titles in the lineup, contending for the best PSP games available right now.  PSP keeps its promise of being a console in your hand, for sure.

  • Living with the Tesla Roadster Sport: One week in an electric light orchestra

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    2010 Tesla Roadster Sport – Click above for high-res image gallery

    After finally getting myself situated in the back of the Boeing, I notice the lady to my left wearing a Tesla fleece. As fate, the alignment of the stars and unbridled dumb luck would have it, I was seated next to Rachel Konrad, Tesla’s Senior Manager of Communications… for the next 10 hours.

    After exchanging pleasantries, discussing each other’s plans for the Frankfurt Motor Show and getting acquainted, the topic of conversation naturally turned to cars, and the Tesla Roadster, in particular.

    “It’s not just about performance,” an overly animated Konrad told me. “What journalists don’t understand is how functional it is. Owners forget to clean their windshield because they never have to go to the gas station!”

    Okay, sure. But if you’re selling a vehicle that starts at $109,000, you’re interested in more than avoiding dirty hands at the pump. You want the full sports car monty. Power, poise, engagement, the lot. And a bit of green cred to boot surely doesn’t hurt.

    So after several hours of discussion, I finally say, “Hand it over to us for a week. We’ll give it a proper review on its day-to-day livability. No track tests. No slalom speeds. No smoky burnouts. Just a comprehensive assessment of functionality.”

    A handful of phone calls and dozens of emails later, I arrive at Tesla’s flagship dealership in Menlo Park, CA to pick up a full-kitted 2010 Tesla Roadster Sport. After a tutorial on the charging procedure, the internal computer and signing my life away, I was off. The Roadster was mine for the next five days, so I promptly pulled off into a bus stop, set a destination for the coast, disabled the traction control and laid a set of elevens down the street from the dealership.

    Ladies and gentlemen, it pays to fly coach.

    Follow the jump to keep reading…

    Photos by Brad Wood / Copyright (C)2010 Weblogs, Inc.

    Continue reading Living with the Tesla Roadster Sport: One week in an electric light orchestra

    Living with the Tesla Roadster Sport: One week in an electric light orchestra originally appeared on Autoblog on Tue, 23 Feb 2010 11:57:00 EST. Please see our terms for use of feeds.

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  • Spyker Cars finalizes purchase of Saab from General Motors

    Spyker and General Motors announced today that they have finalized the deal for Spyker to purchase the Saab brand.

    “Going forward, Saab and Spyker will operate under the Spyker umbrella, and Spyker will assume responsibility for Saab operations,” GM said in a statement. “The previously announced wind down of Saab operations has ended.”

    “Today’s announcement is great for Saab’s customers, dealers, suppliers and employees around the globe, the level of passion and support shown to Saab over recent months has been remarkable and this does bode well for the future,” said Jan Åke Jonsson, CEO of Saab Automobile AB. “Now we aim to get back to the execution of our business plan, starting with the introduction of the new 9-5 later this year, and with the continued support of our employees and business partners I am confident we will succeed.”

    “We are delighted – Saab’s future is now secure, said Victor Muller, CEO of Spyker Cars NV. “From today we will be concentrating all of our efforts into reviving Saab and transforming it into a sustainable and profitable company with the confidence to be bold. We will reinforce the emotional experience between Saab drivers and their cars and we will focus on Saab’s historical strengths in the fields of independent thinking, aircraft heritage, ecological performance and motorsport.”

    – By: Stephen Calogera