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Military housing woes to persist for a while

When you're serving your country, there's a good chance you'll move around a few times . . . which can conflict with the traditional American dream of homeownership. Soldiers who bought homes several years ago could be stuck selling now at depressed prices -- and on fairly short notice.

Needless to say, the financial pressure can be profound. A Staff Sergeant with a decade of service behind him, for example, is paid just under $37,000 a year. Even when you add in the health care and other benefits provided by the Department of Defense, it's still hard to handle a serious loss on a home.

The February stimulus plan included provisions to help military personnel in this situation, but little has happened. Soldiers complain that information is hard to find and guidelines aren't available. So far, none of the funds have been disbursed, and the federal government is keeping its collective mouth shut.

Continue reading Military housing woes to persist for a while

Chasing Value: Feds single source Intuitive Surgical

Yesterday, in response to Chasing Value: ISRG is falling and I'm buying I received the following comment from Beltway Greg, "You're a brave dude. Why? I've watched this stock for awhile and I worry about possible entry by other folks into the market."

Brave perhaps, even foolish on occasion, but I still think this is the time to be selectively buying equities.

To those that might be concerned about competition for Intuitive Surgical Inc (NASDAQ: ISRG) you will be interested in the following:

  • NOTICE TEXT: Department of the Army U.S. Army Medical Command MEDCOM, North Atlantic Regional Contracting Office Subject: Contract prosthetic feet and leg coverings This is a notice of the Governments intent to solicit, negotiate and award a sole source contract (Note 22) contract to Intuitive surgical for Implants based on urgency. This is not a set-aside for small business. This notice is an urgent requirement for Walter Reed Army Medical Center, 6900 Georgia Avenue NW, Washington, DC 20307, contract number W91YTZ-09-P-0147. Parties interested in future announcements shall provide detailed information of their capabilities and certifications to clearly meet the requirements stated above.

It is possible that someday ISRG will have some competition, but there does not seem to be anything on the horizon for now. Furthermore, as the user base expands the barrier to entry increases and the cost of changing systems becomes more challenging.

The most likely scenario for competition would be if another manufacturer were to create a similar system for procedures not yet addressed by ISRG's Di Vinci robotic surgical units. Some of the potential competitors, like Johnson and Johnson (NYSE: JNJ) or Medronic (NYSE: MDT), are actually corporate partners helping to distribute the units world wide. What is most likely from my point of view is that other manufacturers will find a way to partner with ISRG to develop complimentary hardware to expand the capability of the system for more procedures to get to market faster.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

Does support of our troops affect your perception of a company?

question markThe comments on a recent blog post by Sarah Gilbert, about Starbucks retraining efforts took an interesting turn towards discussion about whether or not that company supports our troops. This seems to be a subject which elicits strong passion among many blog readers, which prompts me to ask this question of you: Does a company's position, openly declared or not, regarding support for our troops, affect your perception of that company and whether or not you'll intentionally do business with them?

This issue can be difficult to assess, because often times a company's position on the matter is cloaked, unavailable or skewed by misinformation. The comments on Sarah's blog post give clear evidence of that. Some folks seem convinced that Starbucks doesn't care about our troops, yet packages bearing its logo are reported to arrive at military addresses every day. What's more is the fact that often companies elect not to state a position regarding our restructuring efforts in Iraq. To some people, silence on the matter is interpreted as contempt rather than consent.

I must admit that my own opinions about individual companies regarding their stance on our military involvements are sometimes colored by unconfirmed email commentary and careless internet banter. That is why I generally refrain from discussing the issue. What about you? Do you base your opinions on random emails which purport to reveal a company's stance regarding our military, or do you research the topic before coming to your conclusions?

Continue reading Does support of our troops affect your perception of a company?

Newspaper wrap-up: Bear Stearns CEO expected to step down

MAJOR PAPERS:
OTHER PAPERS:

Newspaper wrap-up 2-12-07: Tribune may not sell itself

MAJOR PAPERS:
  • In today's Wall Street Journal (subscription required):
    • Top Banker Woody Young has left Lehman Brothers Holdings Inc (NYSE: LEH), according to people familiar with the matter.
    • Google Inc (NASDAQ: GOOG) may have benefited from piracy, according to media companies.
    • Tribune Company (NYSE: TRB) is leaning away from accepting offers from outside bidders and may restructure on its own.
    • According to Saudi Arabian Oil Minister Ali Naimi, the world oil market is in "much, much better health and balance" now and, if trends hold, there will be no need for further production cuts or increases in supply when members of the Organization of Petroleum Exporting Countries meet next month.
  • The Financial Times (subscription required) reported that MasterCard Inc (NYSE: MA) is expected to announce a pilot program with the GSM Association that will allow migrant workers to use cellphones for international money transfers.
  • The Deutschland edition of the Financial Times reported that Private Equity is looking at Infineon Technologies ADS (NYSE: IFX).
OTHER PAPERS:
  • According to the U.K. Times, Sanofi-Aventis ADS (NYSE: SNY) has called off talks with Bristol-Myers Squibb Company (NYSE: BMY) over a potential deal.
  • The Washington Post reported that thousands of Army Humvees are lacking the Frag Kit 15 armor upgrade, which is not anticipated to be completed until this summer.
  • Investor's Business Daily's "The New America" column highlighted Web conferencing leader WebEx Communications Inc (NASDAQ: WEBX).

Symbol Lookup
IndexesChangePrice
DJIA-93.7910,197.47
NASDAQ-17.882,149.02
S&P 500-11.271,087.24

Last updated: November 13, 2009: 12:42 AM

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