Finance Blog number 1

July 28, 2010

When will unemployment checks be mailed? Not soon

Filed under: technology — Tags: , , — Sun @ 5:48 pm

Kevin Landry had to give up his San Diego apartment because he couldn’t afford the rent after his federal unemployment benefits were cut off in early June.

Since then, Landry and his cocker spaniel, Curley, have been sleeping in his 1991 Dodge Dakota in a church parking lot. He sold his possessions and applied for food stamps in order to survive.

And even though President Obama signed a measure Thursday that extends benefits through November, Landry knows he won’t get his $475 weekly check anytime soon.

The last time Congress allowed the benefits to lapse, it took a month for him to start getting payments again.

"I’ll just have to scrape by," said Landry, who lost his job as a credit manager for K2 Skis in September 2008. "There’s nothing I can do about it. I’ve learned to deal with it."

Though Congress has finally pushed the deadline to file for federal extended insurance through Nov. 30, it could take weeks before the jobless start getting their checks again.

Nearly 2.9 million people ran out of benefits in the nearly two months it took Congress to extend the filing deadline beyond June 2.

But just when the checks start hitting bank accounts and mailboxes again depends on the state.

The long delay wreaked havoc on the state unemployment insurance technology that process the payments. States often have to call in experts to reprogram the computer systems, which are an average of 22 years old.

And state officials have to make sure that the unemployed were eligible to receive benefits during the interim. If the jobless stopped looking for work or earned income during June or July, they may not qualify.

"States will move as quickly as possible to resume [federal unemployment] payments, but it will not happen overnight," said Rich Hobbie, executive director of the National Association of State Workforce Agencies. "Because the program has lapsed for over a month, state workforce agencies need to ensure that claimants qualify for all retroactive payments."

The unemployed should check their state agency’s website for updates or wait for a letter with instructions on restarting their payments and claiming the retroactive sum, said Judy Conti, federal advocacy coordinator at the National Employment Law Project Low fee payday loans.

Some states asked the jobless to continue sending in the forms certifying they were eligible for payments. The unemployed in those places will likely see their checks sooner.

But it will still take time, said Steve Meissner, a spokesman for the Arizona Department of Economic Security, which told its 64,000 claimants who were affected by the lapse to keep filing.

"We will do it as quickly as we can," he said, adding the state is still waiting to receive official guidance from the federal Department of Labor. "There are always some ambiguities because unemployment law is pretty complicated."

The checks, however, can’t come too quickly for the jobless. For many, it’s the only way they can afford housing, utilities, food and car payments, Conti said.

Vicki Wolf of Lebanon, Pa., is anxiously awaiting her $393 weekly check so she can pay her rent and buy essentials, such as shampoo. The former call center supervisor, who continued sending in her forms to the state, is behind on all her bills because she hasn’t had any income since June 5.

Pennsylvania officials said in a statement that those who kept filing their paperwork should receive payment within two weeks. The rest of the more than 200,000 state residents who lost their benefits should submit their claims online as soon as possible.

Wolf, at least, is one of the luckier ones. She starts a new job at a trucking company on Monday, though she won’t see her first paycheck until mid-August. Until then, she’ll have to walk 45 minutes to work from her home.

"I don’t have money to buy gas to put in the car," she said. 

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July 25, 2010

Kansas City Chiefs’ new Arrowhead Stadium opens for first sporting event

Filed under: finance — Tags: , — Sun @ 9:18 pm

The first big renovation of the Kansas City Chiefs’ Arrowhead Stadium in 40 years — a $375 million, three-year project — hosts its first event this weekend.

It’ll be a test run for the Chiefs, who are using the renovation as a springboard to improve customer service and the fan experience. The project — which includes an array of features evoking Chiefs history and highlights — added about 430,000 square feet to the stadium, for a total of more than 1.64 million square feet.

“This is the culmination of a five-year process designed to return Arrowhead to its status” as the finest stadium in the National Football League, Chiefs Chairman Clark Hunt said Friday as he gave a media tour of the recently completed facility.

Kelly Kerns, a principal with Kansas City-based Populous, the project architect, said the Arrowhead work kept about 100 of the firm’s local employees busy — and gave him a welcome period of work close to home for the past five years no fax payday loan.

But more than that, the project put Populous in a good position to take advantage of what Kerns said probably is going to be the next building trend.

The professional sports marketplace has experienced a big building boom during the past several years, but those projects in large part have been completed. Now, Kerns said he expects a flurry of projects to improve existing facilities. And Arrowhead provides a showpiece as to the possibilities and Populous’ capabilities.

It’s also a sustainable, green approach, Kerns said. By tackling the project using the existing structure, masses of concrete were kept out of landfills.

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July 20, 2010

BP may owe for spilled oil

Filed under: finance — Tags: , , — Sun @ 7:06 pm

BP will have to pay the U.S. government royalties on oil that spilled into the Gulf of Mexico if it is found that "negligence or regulatory violations" contributed to the accident, according to a government statement Thursday.

U.S. regulators are investigating what caused the April accident, but the findings aren’t expected for several months.

All oil companies pay royalties on oil produced from wells on government land or water.

BP is currently paying royalties on the oil that it is collecting and selling from its damaged well. BP is donating proceeds from those sales to a wildlife fund.

Based on the oil BP has collected as of last week, current oil prices, and the 18.75% royalty rate on the well, BP has paid about $8 million to the government.

But the well is estimated to be leaking up to 60,000 barrels a day. If the company was charged for that full amount, it would owe another $65 million.

BP has set up a payment plan with the government where it has promised at least $20 billion to pay for damages caused by the spill.

BP officials did not immediately respond to a request for comment. 

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July 19, 2010

Epocrates to raise up to $75M in IPO

Filed under: legal — Tags: , , — Sun @ 9:51 pm

Epocrates Inc. said on Friday it plans to sell up to an estimated $75 million in an initial public offering.

This is second attempt at an IPO by the San Mateo mobile drug data company. It withdrew a previous effort in late 2008 amind the economic downturn that year.

Epocrates said it plans to trade on the Nasdaq Global Market with the EPOC symbol.

The company showed a loss in the three months ended March 31 of $855,000 as its revenue dropped 1.6 percent to $24.3 million. It showed a profit of $993,000 a year-earlier in the same quarter no faxing 1 hour payday loans.

Epocrates said it will use money raised through the IPO to pay dividends due to the holders of its Class B preferred stock and for general corporate purposes.

Epocrates said in its filing that about 40 percent of U.S. physicians use its mobile drug reference tools and interactive services, aout 1 million users.

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July 14, 2010

FIU medical school affiliates with Cleveland Clinic

Filed under: finance — Tags: , , — Sun @ 3:42 pm

Florida International University’s Herbert Wertheim College of Medicine secured its ninth clinical partner by signing an affiliation agreement with Cleveland Clinic Florida.

The 150-bed hospital in Weston has 922 employees, including 166 physicians on staff. The nonprofit admitted more than 12,000 patients last year.

With the agreement, fourth-year FIU medical students could get clinical training from specialist physicians at Cleveland Clinic Florida.

“We are very excited to be affiliated with such a respected institution that has an excellent national reputation,” FIU College of Medicine Dean Dr. John Rock said in a news release same day payday loans. “Cleveland Clinic is world renowned for providing quality health care at an affordable cost, and we are proud to partner with them to train the next generation of doctors.”

The state university’s medical program also has affiliation agreements with Baptist Health South Florida, Jackson Health System, Mount Sinai Medical Center, Miami Children’s Hospital, Mercy Hospital, Leon Medical Centers, Broward Health and Memorial Healthcare System.

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July 12, 2010

Culture Works president leaves organization

Filed under: news — Tags: , , — Sun @ 8:38 am

Denise Rehg, president of Culture Works, has stepped down to take a new position.

Rehg, who headed the Dayton-based arts funding, services and advocacy group for nine years, has taken the position of assistant senior vice president for major gifts with the United Way of Central Ohio, according to a press release.

Until a new president is found, Kathy Hollingsworth will be the interim president and chief executive officer, effective Aug. 2. Hollingsworth co-founded Innovative InterChange Associates, a Dayton consulting company low rates payday advance.

Culture Works provides some general operating support to the largest performing arts and arts education organizations in greater Dayton including: Cityfolk, Dayton Ballet, Dayton Contemporary Dance Company, Dayton Opera, Dayton Philharmonic Orchestra, The Human Race Theatre Company and Muse Machine, among others.

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July 9, 2010

Google, Yahoo, Microsoft seen in MySpace ad talks

Filed under: finance — Tags: , , — Sun @ 1:21 pm

A $900 million search ad deal between Google Inc. and News Corp. expires this summer, reportedly setting up a competition involving the search giant, Yahoo Inc. and Microsoft Corp.

But declining Web traffic and other milestones on News Corp.'s MySpace have been far short of the goals laid out in the existing contract which expires in August, according to the Wall Street Journal, which is owned by News Corp.

The Journal cited unnamed sources familiar with the matter on Tuesday who said that any deal will be for significantly less money and will be much narrower.

The ad contract was a major factor in News Corp.'s ownership of MySpace, which it paid $650 million for.

But the social network has been surpassed by Palo Alto-based Facebook Inc payday loans., which has more than half a billion unique users compared to MySpace's 109 million users.

A number of high-level executives have left the company, amid a 30 percent cut in work force and a $450 million write down of the value of MySpace and other digital businesses by News Corp.

TechCrunch reported Tuesday that the search ad contract competition comes at a time that News Corp. may sell the Fox Audience Network (FAN), which it says serves most of the ads on MySpace. The blog reports that Menlo Park-based Silver Lake Partners is among the bidders and that if FAN is sold, MySpace is likely to quickly be sold as well.

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July 5, 2010

BP could be ripe for takeover

Filed under: technology — Tags: , , — Sun @ 3:05 am

BP’s stock price has fallen far enough for the oil company to become an attractive takeover target for its biggest rivals, according to industry analysts.

BP’s (BP) stock finished at $28.88 Wednesday, a plunge of more than 50% from its close of $60.09 on April 19, the day before its leased oil rig, the Deepwater Horizon, exploded and sank in the Gulf of Mexico.

Fred Lucas of JPMorgan believes that investors have overdone it, making the stock an attractive value for buyers — including other companies.

"In theory, either Exxon Mobil or RD Shell could consider a bid for BP," wrote Lucas in a note to investors. "We focus on these two names because they have similar business models and similar global asset structures. They also bear the lowest political risk to a potential combination with BP."

Lucas said that his idea of a proposed takeover of BP was "prompted by the gap between the current market value of BP and the intrinsic value that we see in BP."

Another oil industry analyst, Douglas Youngson of Arbuthnot Securities, told CNNMoney last month that if BP’s stock dropped below $30 a share, it would become an attractive takeover target.

"If the share price continues to fall, other companies may see this for the bargain it will be," said Youngson on June 2, when BP’s stock closed at $37.66.

Of the various big players in the oil industry — including Gazprom and PetroChina (PTR) — Lucas believes that ExxonMobil (XOM, Fortune 500) is in the best position to be the acquirer.

He wrote that Exxon Mobil "has the largest rating advantage and strongest balance sheet," providing it with enough cash to handle the deal.

"Exxon Mobil has also proven its ability to integrate a very large transaction successfully — its merger with Mobil was a resounding success," added Lucas low fee cash advance. "RD Shell has no large-scale merger integration experience."

Gazprom wouldn’t be a contender because of a "low stock market rating," he said, while PetroChina "would encounter major political barriers given its controlling shareholder - the Chinese government."

BP has been purging itself of cash to try and fix the environmental and economic aftermath of the disaster.

The company said it has paid out $2.65 billion for the clean-up, and another $130 million on 41,000 claims from workers and business owners who lost their livelihoods in the wake of the spill. More than 80,000 claims have been submitted so far. Bowing to pressure from the U.S. government, BP has put $20 billion in escrow to cover damages.

Lucas figures that the leak will stop sometime in July, meaning a finite cap to the liabilities. So this might be a good time for Exxon Mobil to swoop in, especially since the oil giant has had its own experiences with catastrophic oil spills.

Before BP’s environmental disaster in the Gulf, Exxon had the dubious distinction of causing the nation’s worst oil spill, when the Exxon Valdez oil tanker ran aground off the coast of Alaska in 1989.

"In many respects, an accurate valuation of BP today depends less on a valuation of its assets, but more on an accurate value of its potential liabilities," wrote Lucas. "Who knows better how to price potential clean-up costs and associated civil claims than Exxon Mobil?"

Spokesmen for BP and RD Shell declined to comment on this story. Exxon Mobil did not respond to messages from CNNMoney.com. 

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