My Desultory Blog

Posted By RichC on March 1, 2015

Really just love the above camera angle of the Elio … a new micro-car company making its public relation rounds and aggressively taking pre-orders. I’ve mentioned Elio previously and am anxious to see, drive and OWN the little commuter car. There are plenty of details to be concerned about since their targets are aggressive for any car manufacturer … let alone one that has not been built yet. Still, I’m “all in” and optimistic.

Today we are going to spice up the day with a topic that is important to us and our fans and seems to have a few people flummoxed as to the logic and communication behind it. That topic is our $6,800* retail selling price.

First, we have set four targets, called “must haves” that drive the entire Elio project: 84 MPG highway, $6,800, Safe, and made in America. These are the guiding principles for the Elio. Any time we talk about modifying a part or adding something to the Elio, the part has to fit in these four criteria. Does everything fit into these criteria, no, so those items go into a “bubble list” for future consideration or straight to the options list. The final decision always must come back to whether it meets these four criteria.

MORE

Category: Automotive, Marketing | 1 Comment »
Tags: car, commuter, concept, elio

Posted By RichC on February 28, 2015

The Overdrive app on my iPad is one of my favorite reading and “listening” apps on any of my devices (previously commented). It is super for those who would love to spend more time going to the public libraries but have trouble finding the time to go. Have a “FREE” way to borrow from libraries on an e-reading device (iPad in my case) makes downloading books and audiobooks very convenient – but the fairly long waits and 14 day loaning period is a challenge.

I’ve been waiting a couple months for either the text or audio version of “13 Hours in Benghazi” and just “checked it out.” Looking forward to the audiobook AND not forgetting what “we” (U.S. State Department and Whitehouse) allowed to happen to our ambassador and staff in Libya. Shameful!

Category: Audio, Books, Software, Tablet | No Comments »
Tags: app, audio, Books, ereader, ipad, library

Posted By RichC on February 27, 2015

A debate over controlling free and open access to the “pipes of the Internet” is not as simple (or probably as inexpensive) as it sounds. While the Federal Communications Commission considered views for and against regulating the Internet on Thursday, called “net neutrality,” the commission voted in favor by 3-2. In comments, FCC chairman Tom Wheeler said that this policy will ensure “that no one – whether government or corporate – should control free open access to the Internet.” 

Initially I hear “neutrality” and “open access” and it seemed like a no-brainer. As a consumer, I want high speed for everybody and a level playing field … but the argument is a bit more “nuanced” said Max Levchin, PayPal co-founder commented on CNBC Thursday morning. Those in favor are looking to keep “the pipes” open to all and prevents providers from throttling or pricing heavy data users if they require more bandwidth. Think NetFlix or YouTube as heavy users; the public wants the low cost content, but this requires ISPs opening their “pipes” to these content provider selling their services and using their routers, switches, airwaves and wires. Most consumers just want to be able to receive what they want when they want it without overpaying.

Now the cynic in me wants the open pipes and equal access to all … even if some companies use more bandwidth than others. I understand that the “pure content providers” feel disadvantaged if providers of both content and bandwidth control access and speeds … but don’t have much faith that the government regulates things all that well and that ultimately we’ll suffer due to more regulations, higher overhead costs and even more complaints (think regulated phone companies, airlines, post office, utilities, etc).

Speaking of estimating the cost to taxpayers … the numbers vary, just as they did with Obamacare (are you keeping your existing plan, access to doctors or saving $2500 per year yet?)

"I’m still unsure exactly how much" net neutrality will end up costing taxpayers” says Michelle Ye Hee Lee, who writes the Washington Post‘s "Fact-Checker" column. "The pro-net neutrality camp says it’ll cost $0, the anti-net neutrality camp pegs it at $15 billion … it will be somewhere between there.” It looks like Americans want some additional regulation besides laws focused on monopolistic behaviors by companies, but we’ll have to implement it before we know … haven’t we heard that before, Nancy? Unfortunately the track record when assuming government can manage efficiently does not have me confident. I’ll be surprise if the taxpayer cost  hits the “close to $4 billion" calculated by Matt Wood, the policy director at Free Press.

It passed and will no doubt be challenged … but for now “net neutrality” supporters can be happy.

Category: Innovation, Politics, Technology | No Comments »
Tags: debate, govenment, internet, net neutrality, regulation

Posted By RichC on February 26, 2015

Ever since getting my Keurig Coffeemaker back in 2009, I’ve used it nearly everyday … and multiple times a day at that. It makes making single cups of coffee easier and keeps my coffee drink habit to cups rather than pots! I purchase a variety of specialty coffees or cans of coffee (usually Chock Full o’’ Nuts) and have been thinking about a second smaller unit for the boat since making a single cup would be easier than getting out the percolator or boiling water to pour through a drip basket?

The smaller Hamilton Beach Flexbrew was mentioned by a fellow sailor as small and without the reserve water tank … something they liked. It does run on 110v but could operator for the short brew cycle on the inverter? There are other brands so probably should continue to look around?

Category: Archive, Sailing, Shopping | 1 Comment »
Tags: coffee, flexbrew, keurig

Posted By RichC on February 25, 2015

With oil prices down and the stock market in rally mode (particularly these top 5 Nasdaq stocks), it might be time to nibble on a few of TheStreet Ratings best Oil and Gas companies (below). 

I’ve been watching a few of the “big oil” companies figuring it was time to start building a more diversified core dividend portfolio and Warren Buffett’s selling his $3.7 Billion investment in Exxon (XOM) opened the door to a sale price on XOM, one of the “better than a bank” 3% dividend stocks … but I suspect continued low oil prices will keep downward pressure on the stock. Yes there is risk, but holding a consistent dividend payer while waiting for oil to rebound is something I can comfortably go to sleep with.

For more, check out the February 23, 2015 article by financial writer Dan Moskowitz  on the Top 10 Oil Stocks for 2015.

Top 10 Oil Stocks for 2015

By Dan Moskowitz | February 23, 2015

Oil has been shattered over the past several months. Bulls and bears are steadfast in their beliefs on where oil goes next. It would be impossible for both sides to be right … right? Actually, that’s not true. Of course, it’s nearly impossible to time the market with pinpoint accuracy, but if you take a macro and logical view to today’s current picture, then it shouldn’t be all that difficult to figure out.

The United States is still suffering from an uninspired consumer, and many people believe that low interest rates are what’s really driving the economy (well, Wall Street). In the second-largest economy in the world, China, growth has slowed. In Japan, which is the world’s third-largest economy, an aging population has led to lower consumer spending and deflation. The Bank of Japan is fighting back with monetary stimulus. Then there’s the Eurozone, where the European Central Bank is also printing money to fight against deflation. (For related reading, see: Did the Stimulus Work? It Depends on Whom You Ask.)

Translation: global demand has waned. Unfortunately, there’s no clear catalyst for organic growth to pick back up. This is a negative for oil. The other negative is simply oversupply. Based on these circumstances, oil is more likely to drop than rise over the next year, and perhaps well beyond. However, there will still be pops, and oil could skyrocket following a prolonged period of pain. (For related reading, see: Guide to Oil and Gas Plays in North America.)

When the economy actually recovers organically, then the recent and lengthy low-interest rate environment should lead to rampant inflation. This, in turn, could lead to a significant increase in the price of oil. That would be a long time from now. However, there would be nothing wrong with investing in top-tier oil companies now, which would allow you to buy more on dips. But that’s your call. Regardless of what you choose to do, the Top 10 Oil Stocks for 2015 have been listed below for your convenience. While some are speculative plays, others are here thanks to their resiliency and dividend. (For related reading, see:Top Oil ETFs.)

 

EXXON MOBIL CORPORATION (XOM)

Okay, so Warren Buffett sold his stake. That’s not necessarily bad news, but it can’t be seen as a positive, either. Nevertheless, Exxon Mobil is currently trading near its 52-week low and at 12 times earnings. Its three-year stock performance of up 13.99% isn’t incredible in this market, but it has only depreciated 1.53% over the past year. That might seem like a negative, but many oil stocks have been whooped due to the precipitous drop in oil over the past several months. Exxon Mobil has held its own while offering a 3% annual dividend yield. (For related reading, see: ExxonMobil’s Massive and Reliable Money Machine.)

 

PETROCHINA CO. LTD. (PTR)

Despite slowing growth in China, PetroChina has showed consistent top-line and bottom-line growth through the years, and it currently yields 4.90%. That said, the slowdown in China and a bear market in oil might have a negative impact going forward.

 

CHEVRON CORPORATION (CVX)

Ignore the oil refinery strike story. That’s a short-term event. What’s more concerning are declines in revenue and net income on an annual basis. These aren’t big moves down, but it’s still not inspiring. Fortunately, Chevron currently yields 3.8%, and it tends to hold up better than most peers during difficult times – relatively speaking. (For related reading, see: How Chevron Found Itself Spanning the Globe.)

 

STATOIL ASA (STO)

Statoil is all over the news because if everything goes well with its Johan Sverdrup oil field, it will be capable of producing the cheapest oil in the world. The break-even number for profitability: $40/barrel. At a cost of $29 billion, this will be the most expensive offshore energy project ever in Europe. The Johan Sverdrup oil field is expected to be in full operation by 2019. Statoil yields 4.9%.

 

CONOCOPHILLIPS CO. (COP)

Buffett sold his stake here as well. That’s a negative. Like him or not, he’s very good at seeing macro trends ahead of time. However, ConocoPhillips is expected to increase production by between 2% and 3% while cutting capex by 2013 in 2015 versus 2014. ConocoPhillips also yields 4.20%. (For related reading, see: Cashing in on Macroeconomic Trends.)

 

BP PLC (BP)

BP is one of those few companies throughout the broader market that has a knack for slowly but very consistently increasing its revenue on a year-over-year basis. And, of course, it’s always very profitable. Add the fact that BP generated $32.75 billion in operational cash flow over the past twelve months and maintaining that 5.70% dividend yield appears to be feasible.

 

PHILLIPS 66 (PSX)

Phillips 66’s revenue declined 19% in the fourth quarter (yoy). However, earnings per share increased 39%. But there are more important points here. One, hedge fund Third Point Management initiated a new position in PSX — 5 million shares at a cost of $359 million. Someone is a believer considering this will represent 3.23% of Third Point’s portfolio. Additionally, Phillips 66 CEO, Greg Garland said on the company’s Q4 conference call, “Investments in Midstream chemicals should result in more consistent earnings and a higher valuation.”

 

VALERO ENERGY CORPORATION (VLO)

As a refiner, it’s more resilient to low oil prices. It has delivered consistent bottom-line growth, it’s trading at nine times earnings, it sports an ROE of 18.41%, and it’s currently yielding 2.70%. (For related reading, see: The Difference Between Oil Services and Refiners.)

 

DELEK US HOLDINGS, INC. (DK)

This is not a traditional play. It’s a play for those who are firm believers that oil will spike again soon. From an objective perspective, this is a possibility. Delek’s stock has been on fire over the past three years, appreciating 165% over that time frame. The problem is that Delek isn’t in a good position from a competitive standpoint if oil prices remain low.

 

WESTERN REFINING, INC. (WNR)

Another refiner. Capable of generating consistent cash flow, which helps protect the 2.90% yield. An ROE of 28.77% is also impressive. Western Refining has been a consistent grower on the top line. While the bottom line hasn’t been as consistent, steady and solid profits are the norm. (For related reading, see: Why Schlumberger is a Name You Should Know.)

 

THE BOTTOM LINE

Now you have a head start if you plan on investing in oil in 2015. In my opinion, oil is likely to close lower at the end of the year than where it is now, but I’ve been wrong before. Please do your own research prior to making any investment decisions. (For related reading, see: 2015’s Most Promising ETFs.)

Dan Moskowitz does not have any positions in any of the stocks listed above.

Category: Financial | No Comments »
Tags: $XOM, cnbc, investing, oil, stocks, trading

Posted By RichC on February 24, 2015

CEO Steven Mollenkopf spoke with Maria Bartiromo on Sunday Morning Futures this past weekend about his company Qualcomm Inc. ($70.94 -0.58 -0.81%) and dealing with taxes and low interest rates impact his business decision making.

About taxes, Mollenkopf commented that the high current U.S. corporate tax rates (graph below) encourage investment and job creation overseas rather than in the United States. He said that companies make business choices to hold income offshore where taxes are friendly to business and in some cases “borrow” money at record low rates in the U.S. in order to return money to shareholders. It make perfect business sense.

As many (including me – post from 2012) have stated many times before, corporate income tax rates need to be lower or inline with worldwide rates to encourage corporations to invest and earn their profits domestically rather than internationally. One would think that with a newly elected Republican congress that a friendly business relationship and job creation would be a top priority? Perhaps they need a little more pressure from those who lost a job or have seen stagnate wages this past decade?

Category: Audio, Business, Politics | 2 Comments »
Tags: bartiromo, congress, fox business, interview, mollenkopf, mp3, qualcomm, taxes

Posted By RichC on February 23, 2015

While getting sidetracked from the Whale Gusher Mk3 pump rebuild (soaking and cleaning), I started working on Encore’s hatch screen idea since it will soon be bug season on the sailboat in Florida. I’ve been mulling around a few way to “frame” the fiberglass screen material and ending up forgoing the stainless steel for galvanized wire (cost and availability) … and this works well, I’ll look for some “no-see-um” screen and aluminum wire. I still need to source the grommets, suction cups and “bungee or line pinch clamps” in order to hold the screens in place, but I did work on straightening the coil of heavy wire and then forming it around a plywood form.

Category: Archive, Misc, Sailing | No Comments »
Tags: encore, hatch, idea, projects, pump, sailboat, screen

Posted By RichC on February 22, 2015

Joey Legano took the win in 2015’s NASCAR’s season opening race, the Daytona 500, with an exciting finish with the yellow flag waving due to a wreck in the rear of the field.

The racers bunched for a restart after cleaning up with 3 laps to go and there was no looking back for Legano. “The car was really fast” said Joey in the after the race appearance. There was some super exciting and unbelievable three wide racing as the leading cars all pushed each other around during those final few laps. Great race … congratulations to the “young” Joey Legano (and to his supportive dad and family).

Category: Automotive, Entertainment, Sports | No Comments »
Tags: daytona, nascar, racing

Posted By RichC on February 22, 2015

As predicted, we pick up our share of snow in the Cincinnati area on Saturday. I was hoping to make it through the winter without having to put the chains and snowblower on the old John Deere, but realized Friday night that it was not to be. Thankfully all operated as it was suppose to as we picked up an additional 6” early Saturday morning (to the existing few inches) and after the first morning plow this morning watch the snow continue to come down most of the day. By afternoon southwestern Ohio area was in a level 2 snow emergency and by evening I was shoveling another 6 or so more inches. Enough! I think it is time to head down to the boat … except that Judy and Mark on Windbird anchored in Dinner Key (Miami) waiting for a weather window to cross to the Bahamas reported 42 F! Brrr.

Pano photo – Where’s the pool?

A little more wet snow was added by Saturday evening.

Category: Personal, Photos, Weather | No Comments »
Tags: cincinnati, liberty township, ohio, snow, tootsie

Posted By RichC on February 21, 2015

CNBC interviewed Gov. Scott Walker on Thursday morning (video below) as America is beginning to talk and take note of him as he makes the media rounds. It is early, but for Walker getting a little better better name recognition is a way to keep dollars growing for a potential (and likely) campaign run to become the GOP presidential nominee.

The biggest surprise to those belittling him is just how savvy and likeable Gov Walker is as a candidate. The criticism that he didn’t finish his state college education and left in his senior year to start work for the Red Cross may actually be his biggest strength when it comes to gaining support from working class America – at least for those who pay attention to Mike Rowe. “How are those  Ivy League educated president doing lately?” The last couple haven’t exactly left a positive impression, especially for those still suffering through never ending wars, a recession, a flood of illegals keeping wages low and a “supposed rebound”  and a new Obamacare law that has disproportionally hurt the middle class.

Heading into Iowa (the first primary), the polling has conservatives of that state showing a healthy respect for Walker’s record as the governor of Wisconsin. Most Republicans admire his tenacity in facing the strong union challenges and by sticking to his principles during previous elections … and the recall attempts. As the GOP field starts to narrow, it would be great to see the fresh face of an experience executive espousing conservative principles and leading rather than a politician pandering to and pitting one group against the other? For once it would be rewarding to elect a president with policies that would actually help beleaguered working Americans, rather than advocating for income redistribution schemes or electing based on political legacy and name recognition like either a Clinton or a Bush (no offense Jeb).

It’s time to change the status quo in Washington DC … and I like what I’m hearing and seeing from Scott Walker.

Part 1 Gov Walker on keeping America safe.
Video was removed from CNBC