Amid the reports and cacophony of (seemingly) one bad economic news story after another, it's important -- perhaps essential -- to take time out to notice the good economic news stories out there.
One such good news story: smart parking technology, currently being tested in San Francisco.
This fall, San Francisco will test 6,000 of its 24,000 metered parking spaces in the nation's first large trial of wireless sensor network that will communicate which spaces are free at any moment, The New York Times reported.
How much would you bid for a meal with investing legend Warren Buffett, chairman and CEO of Berkshire Hathaway (NYSE: BRK.A)? For the sixth time, you can again bid on the grand privilege of lunch with the Oracle of Omaha to benefit the poor and homeless of San Francisco. The Glide Foundation is to be the beneficiary of the auction proceeds. The sale will take place -- where else? -- on eBay.
If I were to bid on this wonderful experience, I think my offer would top out at about $28.50. That's not because I don't think that lunch with Mr. Buffett would be a worthwhile investment of time and money, but because I believe that Warren respects fiscal responsibility.
I think Mr. Buffett would understand that $28.50 is about the most I'd pay for lunch with just about anybody. It's a simple matter of living within your means. Besides, this opportunity isn't about purchasing a photo op with a great man. It's about helping people in dire straights. I believe that's the one reason why Warren Buffett does this, he wants to raise awareness of the plight of the masses and to show them that someone really does care.
If you live in Philadelphia's Society Hill, Atlanta's Grant Park, or Dallas's University Park, (and if you're the type who doesn't pay much attention to what's going on in the world), you might be tempted to ask, "Housing slump? What housing slump?"
That's because you live in one of the most lucrative neighborhoods in the U.S., as listed by Forbes. Neighborhoods in 15 major metropolitan areas made the list because they experienced the greatest increase in home sales prices since 1990 -- between 300% and 4,000%. Many were downtrodden areas that benefited from an influx of development. A few others were already among the most upscale neighborhoods in the nation, and have thus far resisted the recent housing slump. For example:
Bucking the Florida real estate downturn is Miami Beach's City Center, with its mega-mansions with built-on docks. The 2006 median home sales price was $1.64 million, up 1,532% since 1990.
Chicago's Wicker Park benefited from an influx of young urban professionals and rehabbers. The 2006 median home sales price was $575,525, an increase of 1,870%.
San Francisco's Western Addition neighborhood is among the fastest growing in U.S. The 2006 median home sales price was $1.38 million, an increase of 522% since 1990.
New York's uptown neighborhood around 149th Street and Riverside drive features large brownstones and federal townhouses. Its 2006 median home sales price was $774,708, up 4,391%.
Steve Jobs is expected to introduce the Apple 3G iPhone with pricing in early 2008. Macworld will be held January 14-18 in San Francisco. COMDEX will be held January 7-10 in Las Vegas. AAPL December option implied volatility was at 40, January was at 50. AAPL's 26-week average option implied volatility was 45 according to Track Data, suggesting larger price risk in January.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Our sister site, Engadget, sat down to an exclusive interview with Virgin Group Chairman Sir Richard Branson. Branson, the swash-buckling founder of the Virgin empire, flew to San Francisco on the first ever Virgin America flight. Branson, who has a 25% stake in the new company, worked for three years to get U.S. regulators to approve his new low-cost carrier.
Sir Richard is vocal in his criticism of the U.S. airline industry. Indeed, he tells Engadget that if it weren't for America's peculiar Chapter 11, none of the legacy carriers in this country would still be around. To wit:
"...they just keep on going in and out of bankruptcy. In Europe, if you're dead you're dead, make room for new children to grow. It's not good for the traveling public. It's much better if you have the English system, where if you don't succeed you're bankrupt and you make room for somebody else."
The airline will compete with the likes of Jetblue Airways Corp. (NASDAQ: JBLU) and Southwest Airline Co. (NYSE: LUV), and will feature two flights a day to New York and five to Los Angeles from SFO. Frequent flyers must be excited, given the high reputation of the Virgin brand name, and Branson has promised these new planes, Airbus A319 and A320 jets, will have the latest in high-tech entertainment options.
Which is why the boys at Engadget wanted to go along for the ride, no doubt. Check out the whole interview here:
It's tough to get a feel for the status of the government-sponsored WiFi project in San Francisco.
Interestingly enough, the city has actually submitted a ballot that asks: do you want free wireless access?
Hmmm......
As far as I know, Earthlink (NASDAQ: ELNK) is going to provide the infrastructure. There is also supposed to be advertising monetization from Google (NASDAQ: GOOG).
"First, asking people if they want free wireless in a measure that has no binding power is like asking a room full of 17-year old guys if they'd like a date with Angelina Jolie. Not only are you wasting resources asking a question with an obvious result, you're pandering to a desire for something not likely to happen.
"The upside to this exercise is that the resulting publicity should deep-six this fantasy of the 'free' muni network in whatever pockets of America that still believe. This is a good thing. Almost every article that covers this election is going to point out that vendors in the industry have decidedly turned thumbs down on freebies.
"What you should see happening as a result is that cities will start to seriously look at viable business models, if they aren't doing so already. With luck, they'll look at San Francisco's 3-year ordeal and learn some lessons on how to avoid a similar fate. Since Philadelphia is slowly coming online with its network and low income folks there are receiving bundles with hardware, training and highspeed access, EarthLink would do well to trumpet this success story at every opportunity to counter the painful experience with San Francisco." Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Gap Inc.(NYSE: GPS) volatility Elevated into new CEO. GPS, the San Francisco based parent company of 3,200 Gap, Old Navy, and Banana Republic stores, appointed Glenn Murphy, 45, to serve as GPS's Chairman and CEO and as a member of the Board of Directors. Smith Barney upgraded GPS to Buy. SBSH says: "The new CEO can positively impact customer focus and in-store experience." GPS over all option implied volatility of 31 is above its 26-week average of 29 according to Track Data, suggesting larger price fluctuations.
Target Corp. (NYSE: TGT) volatility increases; TGT sells off after Ackman announces position. TGT closed at $62.10. William Ackman's Pershing Square owns a 9.6% position in TGT. Robert Ulrich, TGT's Chairman of the Board, filed to sell one million shares of TGT on 7/12 through SEC form 144. TGT August option implied volatility of 35 is above its 26-week average of 24 according to Track Data, suggesting larger price risks.
GlaxoSmithKline (NYSE: GSK) volatility Elevated into 7/30 FDA meeting on Avandia. GSK closed at $49.63. A FDA advisory committee meeting on 7/30/07 will review GSK's diabetes drug Avandia. The New England Journal of Medicine carried a story on 5/21 saying, Avandia "significantly increases" the risk of heart attack. Cowen says: "It is difficult to envision what GSK could present that would significantly alter FDA and prescriber sentiment." GSK August option implied volatility of 30 is above its 26-week average of 20 according to Track Data, suggesting larger risk.
General Motors Corp. (NYSE: GM) volatility Elevated on tighter credit and into 7/31 EPS. GM closed at $31.10. GM will report EPS on July 31st. GM August over all option implied volatility of 53 is above its 26-week average of 37 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
San Francisco mayor Gavin Newsom has made his share of headlines: In 2004, he ordered the city-county clerk to issue marriage licenses to same-sex couples, and he's been outspoken about homelessness, immigration and health care. Now Newsom has a new crusade: bottled water.
Last week, the mayor signed an executive order banning the use of city funds for the purchase of single-serving water bottles, and also banned the sale of bottled water on city-owned property. It's all part of the city's effort to become more environmentally friendly and less wasteful, and residents who sign an online pledge not to buy bottled water can get a free stainless steel water bottle. The city also recently outlawed the use of plastic grocery bags.
In an interview with Newsweek, Newsom said: "These people are making huge amounts of money selling God's natural resources. Sorry, we're not going to be part of it. Our water in San Francisco comes from the Hetch Hetchy [reservoir] and is some of the most pristine water on the planet. Our water is arguably cleaner than a vast majority of the bottled water sold as 'pure'."
While there are no major public companies that sell only bottled water, companies like The Coca Cola Co. (NYSE: KO) and PepsiCo (NYSE: PEP) could be adversely effected if the anti-bottled water trend catches on nationally. Coke and Pepsi own Dasani and Aquafina, respectively.
Who says you can't save the planet and be stylish?
Last month, the city of San Francisco banned the use of nonbiodegradable plastic grocery bags, and other metropolitan areas are considering similar proposals. Just in time, designers Hermes and Stella McCartney have gotten into the reusable grocery-tote business, created for shoppers who need to show off their haute couture while they dash out for Romaine and instant oatmeal. The Hermes version will hit U.S. stores this summer. Made of "hand-wrought" silk, it carries a price tag of $960 (roughly equal to the amount I spend on groceries over the course of six months). McCartney's offering is a bargain, at just $495 for organic canvas.
A fan of committing to help the environment without the highway robbery? For 60 bucks, you can get a FEED Bag, the proceeds from which provide enough nourishment for one child for an entire school year (where, exactly, do the profits for the Hermes and McCartney bags wind up?). Endorsed by first niece Lauren Bush, the FEED Bag craze seems to be sweeping the nation; there's a four-to-six week wait for the canvas tote on Amazon.com (NASDAQ: AMZN).
For the bargain price of $1.99 each, you can pick up a reusable canvas tote or two at Trader Joe's. Next time I'm at my favorite natural-foods chain, I must remember to do so. I already have a great one, five years old and solid as ever, from The Strand. And it didn't even cost me a week's paycheck.
Most of you have probably heard about the local ordinance that will ban the use of petroleum-based plastic bags in the city of San Francisco. Reports state that the measure is likely to pass with the Mayor's signature. I will refrain from stating any opinion on whether I think the move is good or bad. What I want to mention about the likely change in West Coast grocery bag options is that I think this provides an opportunity for the snatching of some timely investments.
Quick! Find those companies that produce brown kraft paper roll stock and get a little chunk of them. When the bag measure passes, those companies might get a nice boost. You may wish to consider subsidiaries of (privately held) Koch Industries,International Paper (NYSE: IP), Kimberly-Clark (NYSE: KMB) or possibly Domtar (NYSE: DTC) (Toronto:DTC). On the local level, find the companies that are manufacturing brown paper bags for the West Coast market.
It is my personal opinion that this change in bag material usage will catch on fast, most especially on the coasts. Look into the shopping bag manufacturing field with a critical eye and watch this situation closely. If it looks like this shopping bag pony is going to "break out of the gate," I have a sneaking suspicion that this will be one pony that you want to ride!
There seems to be quite the fuss around the web these last few days centered around Wal-Mart's latest salvo in the PR landscape (or so it seems) -- its "green initiatives" lined up by CEO H. Lee Scott recently.
In this rather mean-spirited article from San Francisco (wow, this guy's mad!), the green "piece", as it were is, looks from this author to be nothing more than just another cost-cutting exercise guised as a "help the planet" march. Perhaps it's a little bit of both?
As much as naysayers may slug through Wal-Mart's green initiatives, as least it's trying, yes? More than likely, the reason for companies "going green" -- besides the PR boost that inevitably happens -- has to do with costs and planning more than doing good by the environment. I have to agree with that sentiment, as shareholders, by and large, look for returns (which come from cost cutting) and not "good feelings".
We can think that sustainability helps the landscape, but at the end of the day, it's returns that matter. Well, for most (or all) investors, that is. The question is this: is the motive behind cost cutting results in a greener planet, is that a bad thing?
How much would you bid for a meal with investing legend Warren Buffett, chairman and CEO of 
Our sister site, Engadget, sat down to an exclusive interview with Virgin Group Chairman Sir Richard Branson. Branson, the swash-buckling founder of the Virgin empire, flew to 
It's tough to get a feel for the status of the government-sponsored WiFi project in San Francisco. 
San Francisco mayor Gavin Newsom has made his share of headlines: In 2004, he ordered the city-county clerk to issue marriage licenses to same-sex couples, and he's been outspoken about homelessness, immigration and health care. Now Newsom has a new crusade: bottled water.
Who says you can't save the planet and be stylish?
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