Monday, December 26, 2011

Analysis: GOP's struggle on taxes gives Dems hope (AP)



WASHINGTON ? For all his problems with the economy, President Barack Obama is getting unexpected help from a Republican Party that seems incapable of capitalizing on its advantages. Congressional Republicans' fumbling of the payroll tax extension issue is the latest example of party in-fighting and disarray that gives Democrats hope for the 2012 elections. GOP presidential contenders tried to distance themselves from the legislative mess. But they might be tarred nonetheless if swing voters decide the party is either inept at governing or too extreme. The eventual GOP presidential nominee "will be somewhat shackled to the Republican brand," said Democratic strategist Erik Smith, even if it was Republicans in Congress who led the charge in an unpopular fight over the payroll tax. He said GOP House and Senate candidates will face even more problems. The Wall Street Journal editorial page ? an important voice among conservatives ? berated Republican lawmakers for their handling of the payroll tax matter. Obama wanted to add another year to this year's reduction in the tax, which nearly all workers pay toward Social Security. Senate Republicans, after forcing Democrats to swallow several unrelated concessions, joined in an overwhelmingly bipartisan vote to approve only a two-month tax cut extension, with plans to revisit the issue next year. House Republicans, who generally disliked the payroll tax cut from Louis Vuitton Outlet the start, refused to concur early this week. But House Speaker John Boehner on Thursday bowed to relentless criticism from conservative bloggers and several GOP senators and cleared a path for passing a bill Friday to renew the break for two months while congressional negotiators work on a longer-term measure. If Congress doesn't act in the next 10 days, the payroll tax rate will return to 6.2 percent on Jan. 1, after one year at 4.2 percent. That would cost a family Louis Vuitton making 50,000 about 1,000. Republican congressional leaders' actions "might end up re-electing the president before the 2012 campaign even begins in earnest," the Journal's editorial page said Wednesday. Democrats point to episodes like the payroll tax fuss and say congressional Republicans are essentially controlled by tea party activists, whose tax and spending agendas are outside the political mainstream. "Tea Party Republicans blocked a bipartisan bill to extend President Obama's payroll tax cut," the Democratic Congressional Campaign Committee said in a fundraising email Tuesday, minutes after a key House vote. House Democratic leader Nancy Pelosi told reporters, "The tea party tail is wagging the elephant." Democratic strategists hope to remind voters of last summer's near-calamity over raising the limit on the federal debt ceiling. Then, as now, Boehner struggled to control his GOP caucus and to calculate which bills can and cannot pass. These Democrats want to paint the Republican Party as an out-of-touch institution that would rather stand for rigidly conservative principles than solve the nation's problems. "I think the tea party-engendered dysfunction has the potential to really get the electorate's attention," said Jared Bernstein, a former Obama administration economist now with the Center on Budget and Policy Priorities. "At this point, the system is crippled by them." All of this, of course, may be wishful thinking by Democrats. Republicans crushed them in the 2010 elections, giving the GOP control of the House and many governorships. Unemployment and other economic indicators bode badly for Obama's re-election hopes, and the payroll tax dust-up may seem a musty memory by next November. One other worry looms. Americans' taxes still might rise by billions of dollars in 2012 if a deal can't be struck on a longer, one-year extension. Economists say that would depress spending and slow job growth, at least somewhat. Even if more voters blame Republicans than Democrats, Obama could end up as a net loser politically, given that the economic climate already is deeply troublesome for him. GOP leaders say income tax cuts do more to stimulate economic growth than payroll tax reductions but worry about independents thinking it was Republicans who sought to raise their payroll taxes. At the same time, they know that hard-core conservative voters who have a bigger voice in GOP primaries might blame them for a tax cut they dislike. Republicans may yet claim one political victory out of the payroll tax imbroglio, assuming the two-month extension goes through. In House-Senate negotiations they forced Obama to agree to an expedited decision on a proposed transcontinental oil pipeline opposed by environmental groups as part of the two-month extension. The GOP still has a perception problem, Louis Vuitton Outlet though. Americans hold Congress in extremely low regard, but they put more blame on Republicans than Democrats. A recent poll by the Pew Research Center found that a record-high 50 percent of Americans say the current Congress is less effective than most. By nearly 2-to-1, "more blame Republican leaders than Democratic leaders for this," Pew found. "By wide margins, the GOP is seen as the party that is more extreme in its positions, less willing to work with the other side to get things done, and less honest and ethical in the way it governs. And for the first time in over two years, the Democratic Party has gained the edge as the party better able to manage the federal government."

Source: http://forum.iphoneworld.ca/iphone-support-troubleshooting-forum/analysis-gops-struggle-taxes-gives-dems-hope-ap-206735.html

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Sunday, December 25, 2011

Wedding and Travel - Two Great Niches In One! Caribbean Wedding Packages


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Source: https://flippa.com/2679055-wedding-and-travel-two-great-niches-in-one-caribbean-wedding-packages

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Share With Friends: Share on FacebookTweet ThisPost to Google-BuzzSend on GmailPost to Linked-InSubscribe to This Feed | Rss To Twitter | Politics - Top Stories Stories, News Feeds and News via Feedzilla.

Source: http://news.feedzilla.com/en_us/stories/politics/top-stories/178837626?client_source=feed&format=rss

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Saturday, December 24, 2011

Community Health Systems Looks Attractive As Market Overreacts To News

What would you think of a company which has a monopoly in a non-elastic market, great growth prospects and a price that implies pre-tax earnings yield of 34.12% and after-tax earnings yield of 23.76% (without pricing in growth)? If you think it might be an opportunity, keep reading, you may be on to something.

The company I'm talking about is Community Health Systems (CYH). This company provides healthcare services through self-owned or leased 131 hospitals in 29 states. For 60% of its hospitals there are no direct competitors. In addition, since it operates mainly in rural areas, it is unlikely for a competitor to move in and build a new hospital to compete with CYH since the market will not be able to sustain them both.

The management is aware of this fact, as shown in the latest annual report, and as a result the company works continuously to strengthen this advantage. It searches mainly for rural hospitals without direct competition, to buy, renovate and expand them. This strategy also provides the company two ways for growth:

  • Keep on buying more and more hospitals.
  • Reduce indirect competition. You see, in the 60% of the markets CYH operates (those markets without direct competitors), it has only 50% market share. The other half goes a long way to other hospitals (urban usually) that are bigger and more equipped to get specific treatment that CYH facilities don?t offer. This means that if CYH expands the services offers in its facilities, it can reduce indirect competition and gain more market share and revenue.

Both those two methods can keep the company growing profitably for years.

Currently, the company has revenue of approximately $150 per share. Operating and net profit margins are 3.9% and 2.7% respectively and they are getting better and better. The company has $1.75 of current assets for $1 of current liabilities which means no liquidity problems. The net asset value (NAV) is $26 and the earnings for 2011 are going to be 3.30 to 3.39 after tax according to management, and for 2012 around $3.60, after tax also.

With the price of the stock at about $16.5 we have an after tax earnings yield of 20% for 2011 and 21.18% for 2012, which makes for a current P/E ratio of 5 and a forward one of 4.58.

And while all these sound wonderful, every investor in his right mind would ask, "If everything about CYH is so nice why is it priced so cheaply? What's the catch?" Let's see what happened and why the company's stock was hammered from around $40 last April to just $16. All the trouble begun a year ago with an attempt from CYH to acquire Tenet Healthcare Corp. (THC). The whole deal turned ugly when THC rejected the bid and CYH tried unsuccessfully to change THC board. THC responded by suing CYH for overcharging Medicare, something that CYH dismissed and THC watered down after CYH withdraw its bid.

Nevertheless this fight left a scar on CYH stock which continued its decline amidst general worries about a slowdown in healthcare and falling admissions.

The only indisputable reason for worry about CYH is its great amount of long-term debt. The company as of its latest 10Q had $8.8 billions of debt outstanding. Half of this, $4.4 billions come due at 2014, $2.8 billions at 2015 and the rest later. In the case the company fails to refinance its debt at reasonable rates it may have to sell some of its hospitals. Now it's paying around 7.5% interest and if we assume pre-tax profitability at $350 million, the company can stand an interest rate up to 11%.

Even in the extreme event of a liquidation, stockholders have more than a good chance to be paid the company's net asset value which is $26 per share. The reasoning behind this claim is that the bulk of CYH assets (Hospitals) are unique pieces of real-estate with great positioning (since 60% of them are alone in their respective markets) and this will translate into very nice prices for those to be sold.

In conclusion, my case is that the market got over-spooked and is mispricing CYH for issues that do not exist or are not of such great concern. Admissions may fall a little but will come back because healthcare is one of the most basic needs people have. The company is most likely to refinance since it has a pretty stable business, more than enough profits and great assets as collateral for creditors. Finally the THC suit will most likely be dismissed and even if it's not I don't believe any substantial damage will be done.

I believe that below $18 this stock is a screaming buy and I would assume a fair value somewhere between $36 and $53.

All my info comes from the latest 10-Q, 10-K, and Q3 earnings call of the company, and can be found here and here.

Disclosure: I am long CYH.

Source: http://seekingalpha.com/article/315495-community-health-systems-looks-attractive-as-market-overreacts-to-news?source=feed

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Friday, December 23, 2011

Lenovo H330-77801HU


The Lenovo H330-77801HU ($899 direct and $1,118 with monitor), a small form factor desktop PC, is decked out with a Blu-ray player, fast Core i5 processor, and a huge 1TB hard drive. It bundles in a monitor, making it a reasonably-priced starter PC for those that want more kick than something like the HP Pavilion p7-1167cb ($899.99 list, 4 stars). However, the lack of integrated Wi-Fi edges this system out for users that don't have their router located in the same room as their PC.

Design and Features
The H330-77801HU is a thin and tall small form factor PC, measuring 11.5 by 9.9 by 15.75 inches (HWD). We've seen smaller from Apple's Mac mini (Thunderbolt) ($799 list, 4.5 stars). The front of the chassis has a tray-loading Blu-ray player/ DVD+-RW, audio and mic jacks, two USB 2.0 ports, and a couple of media card readers that support CF I/CF II/ MD and SD/ SDHC/ MMC/ MS/ MSPro formats. The back has more audio jacks, two PS/2 ports (one of which will be occupied by the included keyboard), Ethernet jack, and four USB 2.0 port (one of which will be occupied by the included mouse). One major feature missing from the Lenovo H330-77801HU is Wi-Fi. Because it has been left out, users will have to utilize the wired Ethernet jack to connect to the Internet, which may be a problem for consumers that don't have their router setup in a convenient position nearby for a PC.

The 23.6-inch widescreen LS2421p Wide ($219.99 direct, 4 stars) monitor displays in 1,920-by-1,080. It comes with VGA and HDMI video inputs, corresponding to the included HDMI and VGA outputs on the Lenovo H330-77801HU. The system also comes bundled with VGA and HDMI cables, so you can just plug and play without having to worry about ordering cables ahead of time. Generally, you don't buy a small form factor PC if you're thinking about upgrading; the H330-77801HU is no different. It will require a good chunk of effort, time, and patience to unscrew every screw and separate the entire exterior casing from the internal components by sliding it off?I wouldn't recommend it. Mid-tower chassis, like the Acer AM3470-UC30P ($599.99 list, 4 stars), are easier to tinker with, as all you need to do is unscrew the screws on one of the side panels and slide it off.

The H330-77801HU has a 1TB, 7,200rpm hard drive, much bigger than the Mac mini's 500GB one. There's a little preinstalled software on the system; most of it being Lenovo's proprietary applications.

Performance
Lenovo H330-77801HU The H330-77801HU is outfitted with a 3.3GHz Intel Core i5-2500 processor, 8GB of RAM, and an AMD Radeon HD 6450 (512MB) discrete graphics. These components beat allowed it to beat out the Apple Mac mini (1,936) and Acer AM3470 (2,081) by a significant margin in PCMark 7 (2,606)?a test measuring day-to-day performance. In more media-oriented tests, the Lenovo H330-77801HU was able to quickly encode a video in Handbrake in 1 minute 12 seconds. While the Mac mini (1:42) and Acer AM3470 (2:33) fell behind again.

The H330-77801HU does come with a discrete graphics processor, but that doesn't necessarily mean it's ready for the gaming grid. In Crysis (DirectX 10), it wasn't able to average a playable frame rate (29.2fps) during its play-through (30fps is considered playable) on Medium quality settings and 1,280-by-720 resolution. Similar results were seen in Lost Planet 2 (DirectX 11), averaging 12.4fps on the same settings. The H330-77801HU's AMD Radeon HD 6450 graphics will be able to get you through Azeroth if you're an avid World of Warcraft player, but anything more complex and the system will stutter. If you want more gaming performance without sacrificing the small form factor, the Apple Mac mini comes with a much more powerful AMD Radeon HD 6630M (256MB) that could easily play Crysis on Medium settings (48 frames per second), but not Lost Planet 2. If a monitor/ PC bundle is more what you're looking for, and you don't mind sacrificing some space, the Acer AM3470's AMD Radeon HD 6550D graphics was able to garner playable frame rates in Crysis (40fps).

The Lenovo H330-77801HU is a powerful small form factor PC and well-priced monitor/PC bundle unit. However, it comes with a major feature missing?Wi-Fi. For just $20 more Lenovo could have installed a wireless card, and it's beyond me why they omitted it. If you're looking for a great budget PC/monitor bundle, the Editors' Choice Acer AM3470-UC30P is a great option. If you're more concerned about saving space, the Editors' Choice Apple Mac mini (Thunderbolt) is a powerful small form factor PC, but it doesn't come with a monitor.

BENCHMARK TEST RESULTS:

COMPARISON TABLE
Compare the Lenovo H330-77801HU with several other laptops side by side.

More laptop reviews:
??? Lenovo H330-77801HU
??? HP Omni 220-1080qd
??? HP TouchSmart 520-1070
??? Samsung Series 7 (DP700A3B-A01US)
??? HP TouchSmart 520-1030
?? more

Source: http://feedproxy.google.com/~r/ziffdavis/pcmag/~3/lH5BQXjk8EI/0,2817,2397698,00.asp

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Jimino announces contract for Rensselaer County employees union

Rensselaer County Executive Kathleen Jimino has announced that the contract between the County and the largest bargaining unit representing County employees (UPSEU) has been approved by the union members and is now awaiting County Legislative approval.

"This contract will provide the County the ability to fund the majority of the programs set to be cut on April 1, 2012 until the end of the year, granting more time for the State to enact meaningful mandate relief that would allow non mandated County services to be continued," said Jimino in a statement.

Under the contract employees would receive a one-half percent raise in 2012 and another one-half percent increase in salary in 2013.? According to a release issued by Jimino?s office, a qualified "no layoff" and "no outsource" clause in year one of the contract has also been established.?

?I want to commend the employees for approving this contract that will afford us the ability to continue these vital local services short term.? However, I must caution that until meaningful mandate relief is provided by the state, local services will continue to fall victim of the ever escalating costs of the state mandated programs" added Jimino.

Proposed cuts to be delayed until December 31, 2012 due to Union ratification unless state mandate relief is achieved are:

  • Aging Services home delivered meals will be reduced from five days per week to four days per week; medical transportation will be reduced; the senior center in Rensselaer will be closed;
  • Cornell Cooperative Extension subsidy will be reduced;
  • Planning funding for economic development staff will be reduced;
  • Public Safety funding for training and future planning will be reduced and funding for a replacement vehicle for the Fire Coordinator will be eliminated;
  • Sheriff?s Department funding will be reduced, the specifics to be determined by the Sheriff as a separately elected official;
  • Soil and Water subsidy will be reduced;
  • Van Rensselaer Manor housekeeping and laundry services currently staffed with county employees will be considered for outsourcing, a practice that is currently being exercised in the pharmacy department; and
  • Veterans? transportation services will be reduced from two to one van per day.

?

Source: http://troy.wnyt.com/news/business/102360-jimino-announces-contract-rensselaer-county-employees-union

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Thursday, December 22, 2011

Canadian banks eye Cuban presence as tensions ease (Reuters)

TORONTO (Reuters) ? Bank of Nova Scotia has applied to re-establish a presence in Cuba and a report says rival Royal Bank of Canada is considering a similar move in the wake of Cuban reforms and a thawing of the country's icy relationship with the United States.

Both banks were players in the country before the 1959 revolution in which Fidel Castro took power. The revolution ushered in an era of communism and U.S. sanctions that has made it difficult for companies with a U.S. presence to do business there.

But U.S. relations with Cuba have thawed somewhat under U.S. President Barack Obama and after the aging Fidel Castro handed over power to his liberalizing younger brother Raul, encouraging the banks to take initial - if tentative - steps back into the country.

"I think a lot of people are looking at the regime changes and the age of Castro and his brother and thinking it's only a matter of time before Cuba basically opens up," said Lawrence Booth, a finance professor at the University of Toronto's Rotman School of Management.

Scotiabank, Canada's No. 3 lender, said it has applied to the Central Bank of Cuba for a representative office license.

"A representative office will allow Scotiabank to reacquaint ourselves with the Cuban market, which will provide a strategic window into the marketplace and enable us to acquire in-depth local knowledge and build relationships," the bank said in a statement.

The office would aim to expand the bank's trade-finance business with Cuba, but would not conduct any local transactions or direct banking services, Scotiabank said.

RBC, Canada's biggest bank, is also considering a move back into the country, the Financial Times reported.

Jim Westlake, head of RBC's international operations, met with the Cuban ambassador to Canada this month with a view of "trying to gauge how they are feeling about business generally coming to Cuba," the paper reported.

CONCERNS ABOUT SANCTIONS

However, the bank is concerned that it not run afoul of U.S. sanctions, the paper said.

An RBC spokeswoman would not confirm Westlake's comments.

While RBC agreed earlier this year to sell its U.S. retail bank, it still has a sizable capital markets presence in the United States that could leave it exposed to U.S. sanctions.

Under the 1996 U.S. Helms-Burton Act, officers of Canadian companies that operate in Cuba can be barred from entering the United States.

However, the act focuses on companies that deal with property that may have been expropriated from U.S. citizens following the Cuban revolution, so it may not apply to banking operations being started from scratch, observers say.

"The question is simply whether the Cuban government wants (the banks) in and whether they can go in in a way that doesn't alienate the Americans too much," Booth said.

Establishing a presence early on in the reform process could give the Canadian lenders a head start if Cuba's financial sector opens up.

Canadian banks escaped the financial crisis in relatively good shape, and have been pushing to expand their global presence, taking advantage of hard-hit U.S. and European banks eager to unload assets.

If RBC and Scotiabank do return to Cuba, they will join National Bank of Canada, which entered the country in 1995 and runs a small trade-finance operation.

National, Canada's sixth-largest lender, is one of a handful of foreign banks - including Societe Generale and BNP Paribas - that have a presence in Cuba.

National has few operations outside Canada, and so has not had to fear that it would be sanctioned by the United States, said a person familiar with the matter.

Setting up shop in Cuba would mesh nicely with Scotiabank's extensive operations in Latin America. RBC also has a Caribbean operation that spans eight countries.

(Reporting By Cameron French; Editing by Peter Galloway)

Source: http://us.rd.yahoo.com/dailynews/rss/latam/*http%3A//news.yahoo.com/s/nm/20111220/wl_canada_nm/canada_us_banks_cuba

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