Continue reading Cablevision has the right assets for the digital age

Cablevision has the right assets for the digital age originally appeared on BloggingStocks on Wed, 02 Dec 2009 17:20:00 EST. Please see our terms for use of feeds.

It's easy to save the world when you've already taken care of yourself. But, we rely on these mavericks -- the wealthy who realize they can make a difference -- to do what we cannot on our own. So, it comes as a relief that Bill Gates, founder of Microsoft (MSFT) believes executive compensation is still too high.

It's a murky topic, and some forms of regulation, Gates believes, won't help. In a discussion on philanthropy at the 92nd Street Y in Manhattan, where many of the people Gates criticized send their kids for early education, the former CEO and still rich guy cites the $1 million executive salary cap required by law in 1993 as a big mistake. While compensation has to be controlled, he believes this measure backfired and thinks that other, similar efforts are doomed to fail now.

Continue reading Rich still too richly compensated according to richest of them all

Rich still too richly compensated according to richest of them all originally appeared on BloggingStocks on Thu, 12 Nov 2009 15:40:00 EST. Please see our terms for use of feeds.

A year ago, Manhattan homeowners lived within the firm grasp of the worst recession in 70 years. A skyrocketing real estate market seemed ready to come back to Earth, as carnage in the financial services industry - which spread to just about every other business - decimated incomes and net worths throughout the city.

From the second quarter to the third, this year, the sale of co-ops and apartments spiked between 46% and 69% according to several reports from the real estate business. Sales are still lower than last year, but the recovery has been nothing short of amazing (to the chagrin of those of us who had dreams of one day moving up from the rental class).

Prudential Douglas Elliman reported a price increase of almost 2% from the second quarter, though the median was down 8% to 18% from last year - to the $760,000 to $850,000 range. Jonathan Miller, president and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm, calls this good news, but cautions that it doesn't mean we're at the bottom.

Continue reading Pricey Manhattan homes are moving again

Pricey Manhattan homes are moving again originally appeared on BloggingStocks on Mon, 05 Oct 2009 09:00:00 EST. Please see our terms for use of feeds.

This is not an abstraction: buildings large and small are showing gaping vacancies. Storefronts are empty. Entire buildings sit waiting to be occupied. In Manhattan, retail vacancies have reached their highest rates since 2001. For the second quarter of this year, vacancies hit the absurd height of 12.4%, thanks to unemployment trends that won't quit and consumers reluctant to pry open their wallets.

Retailers are being hit just like the residential market.

Continue reading Commercial real estate vacancies surge above 12% in Manhattan

Commercial real estate vacancies surge above 12% in Manhattan originally appeared on BloggingStocks on Fri, 17 Jul 2009 13:40:00 EST. Please see our terms for use of feeds.

Apartment vacancies in the United States hit their highest level in 22 years in the second quarter of 2009. Job losses are to blame, according to Bloomberg, as tenant demand falls when people don't have any income. Vacancies rose to 7.5% from 6.1% year-over-year, according to Reis Inc. But this still doesn't reach the 1987 level of 7.6%. In June, the U.S. unemployment rate hit a 26-year high, with payrolls dropping faster than expectations.

Conventional wisdom has it that potential homebuyers turn into renters when the job market softens. The rental pool is shrinking, however, leading to the high rate of apartment vacancies as landlords struggle to fill units. Asking rents for apartments fell 0.6% last quarter (for the second in a row), according to Reis, the largest fall since the company started to track this measure in 1999. Overall, asking rents (including other types of residences) were off 0.7% year-over-year, down to an average of $1,040 a month.

Continue reading Apartment vacancies spiked in Q2 in U.S.

Apartment vacancies spiked in Q2 in U.S. originally appeared on BloggingStocks on Wed, 08 Jul 2009 14:50:00 EST. Please see our terms for use of feeds.

I've had a couple of brushes with fame in my day, and my track record isn't the greatest. I met River Phoenix in April 1991, about 2 1/2 years before his drug-related death at the age of 23 (I love the people who ask me if I got to meet him "while he was still alive." Ummm.) I also knew Ben Curtis (the spokesman, not the golfer). As an elementary-school-age boy, the once-and-future face of Dell (NASDAQ: DELL) was a peripheral friend of my brother and the son of my French teacher.

As I said, my celebrity encounters haven't enjoyed particular longevity. While Curtis isn't overdosing outside the Viper Room, he has been part of the wait staff at Tortilla Flats, a Manhattan bar at Washington and 12th, for the past 18 months. Last week, for Halloween, he dressed up as his former alter-ego, Steve the squirrelly "Dude, you're getting a Dell" kid. He says he gets recognized every day, but appreciated a job at which he can always be himself. And if you ask nicely, he may just repeat his famous catchphrase while he delivers your margarita.

Continue reading Where are they now: Former Dell 'dude' working food service

Where are they now: Former Dell 'dude' working food service originally appeared on BloggingStocks on Thu, 08 Nov 2007 17:55:00 EST. Please see our terms for use of feeds.

Goldman Sachs (NYSE: GS) volatility Elevated into EPS, Risk Exposure & Outlook. GS is expected to report EPS on 9/20. Wachovia Corp.(NYSE:WB) say's "Lack of mortgage and Chinese exposure distinguish GS." GS September option implied volatility is at 50; October is at 45; above its 26-week average of 35 according to Track Data, suggesting larger risk.

Morgan Stanley (NYSE: MS) MS is expected to report EPS on 9/19. MS September option implied volatility is at 48; October is at 41; above its 26-week average of 33 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) is expected to report EPS on 9/20. Aquarian Investments holds a 6.97% stake in BSC for investment purposes. BSC Chairman & CEO James Cayne is 72. BSC Chairman of Executive committee Alan Greenberg is 79. WB say's BSC "shares are currently 1.2x book value compared to its historical average of 1.6x." BSC September option implied volatility is at 71; October is at 63; is above its 26-week average of 43 according to Track Data, suggesting large price movement.

Lehman Brothers (NYSE: LEH) is expected to report 3rd quarter EPS on 9/18. WCHV say's LEH's "Q3 started strong but ended real weak." LEH September option implied volatility is at 76; October is at 62; above its 26-week average of 40 according to Track Data, suggesting larger price risk.

Option update: Goldman (GS), Morgan (MS), Bear (BSC) & Lehman (LEH) EPS, Risk Outlook originally appeared on BloggingStocks on Tue, 11 Sep 2007 11:35:00 EST. Please see our terms for use of feeds.

Peabody Energy Corp. (NYSE: BTU) -- volume and volatility increases on renewed buyout chatter. BTU, the world's largest private-sector coal company, with 2006 sales of 248 million tons and $5.3 billion in revenues, is recently up $2.30 to $45.60 on unconfirmed and renewed buyout chatter. BTU's CEO Greg Boyce presented at the Lehman Brothers CEO Energy/Power Conference in New York City today. BTU call option volume of 8,070 contracts compares to put volume of 9,128 contracts. BTU September option implied volatility of 39 is above its 26-week average of 36 according to Track Data, suggesting larger price risks.

Massey Energy Corp. (NYSE: MEE) -- implied volatility of 52 is above the 26-week average of 45. MEE, the fourth largest coal company in the U.S. based on produced coal revenue, is recently up $1.44 to $22.24. MEE's Chairman & CEO Don Blankenship will present at the Lehman Brothers CEO Energy/Power Conference in New York City this afternoon.
MEE October option implied volatility of 52 is above its 26-week average of 45 according to Track Data, suggesting larger price fluctuations.

Consol Energy Inc. (NYSE: CNX) -- volatility Flat as CNX rallies on idling of mine. CNX is recently up $1.31 to $41.24. CNX announced it plans to idle its Mine 84 in Northern Appalachia because of the mine's inability to meet its targeted rate of return. Stifel Nicolaus has a Buy rating and $58 price target on CNX. STFL says, "we continue to favor CNX shares over most of its coal industry peers due to its strong coal reserve base, its favorable market position as the dominant Northern Appalachian coal miner, and its direct exposure to natural gas markets." CNX call option volume of 3,348 contracts compares to put volume of 386 contracts. CNX October option implied volatility of 41 is near its 26-week average according to Track Data, suggesting non-directional price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Coal producers active originally appeared on BloggingStocks on Thu, 06 Sep 2007 14:34:00 EST. Please see our terms for use of feeds.

Continue reading A little relief at the pump

A little relief at the pump originally appeared on BloggingStocks on Tue, 12 Jun 2007 14:50:00 EST. Please see our terms for use of feeds.

Consolidated Edison (NYSE: ED) reported good first quarter earnings of $256 million, $0.99 EPS, up 41% from 1Q 2006 earnings of $181 million, or $0.74 per share. A big enough increase to make even a jaded in-bound strap hanger smile. Con Edison posted these numbers despite a $10 million loss, $0.04 per share, in complicated net mark-to-market valuations. This amount is only one-third as big as net mark to market losses of $31 million in 1Q 2006. Con Edison management states the earnings increase is a result of sales growth, a stretch of colder than normal temperatures during the early part of 1Q as well as a utility rate hike for NYC.

Con Edison transmits electricity, gas and even steam, and all three sectors recorded volume increases during 1Q 2007, electricity up 2.6%, gas up 7.4% and steam up 0.5%. Con Edison will continue its expansion and updating schema in both NYC and several surrounding boroughs during FY 2007 and beyond, and recently began the process of issuing an additional 11 million shares at an average price of $50.60 to fund these ambitious programs. The stock recently closed at $50.95, and its P/E ratio of 15.9 is less than the industry average of 17.10. Con Edison has annual revenues in excess of $12 billion, with assets valued at over $27 billion. It is one of the largest investor-owned energy companies in the US.

Con Edison posts good 1Q earnings originally appeared on BloggingStocks on Tue, 22 May 2007 14:52:00 EST. Please see our terms for use of feeds.

The New York Times printed some really bizarre comments from Wal-Mart Stores Inc. (NYSE: WMT) CEO Lee Scott yesterday in which he appeared to be venting about the company's struggles in opening stores in New York City. Here are a few of his comments:

• "I don't care if we are ever here."
• "I don't think it's worth the effort."
• "It's too hard to make money here."
• Referring to the company's struggles in New York, Chicago, and Los Angeles: "The glue is the unions."
• "You have people who are just better than us and don't want a Wal-Mart in their community."

What's stunning about Lee's comments is his candor and arrogance, and it's difficult to imagine what he's hoping to accomplish here. They provide ample ammo for the anti-Big Box brigade, and the responses have already started to come. Ed Ott, executive director of the New York City Central Labor Council said, "We don't care if they're never here. We don't miss them. We have great supermarkets and great retail outlets in New York. We don't need Wal-Mart." Lee Scott has struggled to win the battle for the hearts and minds of consumers and the media and the company's stock price has also lagged during his tenure.

His petulant attacks on the city of New York are unlikely to please the company's Board of Directors and could add to the calls for his resignation.

Wal-Mart CEO hammers New York originally appeared on BloggingStocks on Wed, 28 Mar 2007 09:43:00 EST. Please see our terms for use of feeds.

It's been giddy times on Wall Street. Might this be the prelude to a big fall?

That's the take from a recent report from Senator Charles E. Schumer and Mayor Michael R. Bloomberg. The research is based on the work of the management consulting firm McKinsey, which conducted 50 extensive interviews of business leaders.

Basically, unless certain changes are made, NY may lose anywhere from 4% to 7% of its global share of the financial services market within the next five years.

It should be no surprise, since among other problems the US has too much litigation.

What's more, the new regulations of Sarbanes-Oxley (SOX) make it unfavorable for companies to go public in the US. As a result, overseas markets look more attractive.

The good news is that these are things that can be fixed. For example, it looks like the SEC is already making moves to lessen the impact of SOX.

But as usual, such issues are complex and can be crowded out by other political issues -- after all, how many Americans really know what SOX is? So it is likely to take a while for change to take place.

In the meantime, other major overseas financial centers will, of course, not wait.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

New York City: A financial rust belt? originally appeared on BloggingStocks on Mon, 22 Jan 2007 14:02:00 EST. Please see our terms for use of feeds.

Think before you answer.

What would a $200,000 salary get you in New York, and what in Cleveland? Well, let's strip it down:

• What would be your purchasing power after accounting for the cost of living? New York's cost of living, for example, is double the national average.
• What about effective tax rates? The tax rate in New York is 25.4% for the $200K salary vs. a tax rate of 20.4% in Cleveland for the $100K salary.
• Different inflation rates? May annual inflation rate in New York metropolitan area was 4.8%, in Cleveland, the rate was 3%.

All these should be considered before deciding. So, have you changed your answer?

Let's start by saying that if you have that choice (of making a six figure salary), then congratulations are in order. You are part of the 5% of Americans who do (according to 2004 census reports). But the real question is - where do you live?

CNNMoney.com used data from 6FigureJobs.com and TheLadders.com to figure out the equivalent of $100,000 after adjusting for the cost of living in the top cities that have the largest numbers of six figures jobs listings. In New York, a $100,000 equivalent salary would require a salary of over $205,000, in Boston more than $137,000, about $101,000 in Cleveland and less than $89,000 in Houston.

So while many six figure jobs are indeed offered in higher cost of living areas, there are still many cities such as Chicago, Atlanta, Seattle, Cleveland and Denver as well as a few others that also have relatively high numbers of six figures jobs to offer. And as if that isn't enough to convince you, sometimes, just to attract talent, companies in those "lesser" cities would offer the same high salaries as in, say, New York.

Would you rather make $200K in NY, or $100K in Cleveland? originally appeared on BloggingStocks on Fri, 15 Sep 2006 13:04:00 EST. Please see our terms for use of feeds.

Dick Parsons for New York City mayor? A few weeks ago, I picked out an interesting tidbit in a story on why Parsons should be fired: Gramercy Capital Management's Joan Lappin dribbled the tantalizing rumor that the Time Warner CEO was considering a run for mayor when Michael Bloomberg's term is up in 2009.

Today's New York Magazine says "it's all but official." Parsons will run, with some insiders even saying he'll hand over the CEO position to Bewkes (Lappin said this, too) before his current contract ends in 2008. Naturally Parsons has said he'll fulfill his contract, but not opined on the mayoral run.

Frank Barnako of MarketWatch says this must be why Carl Icahn is buying up shares of Time Warner, while DealBreaker.com says Parsons entrance into the race "is not entirely unwelcome" and hints that the I-banking elite might vote for him. Would you?

Dick Parsons for NY mayor -- would you vote for him? originally appeared on BloggingStocks on Tue, 15 Aug 2006 06:32:00 EST. Please see our terms for use of feeds.