Cracking Down on “.Sucks”

Posted on by Scott Hodges

Certainly, the internet is a vast world where both good and bad take place. Recently, a Canadian company has been using the new “.sucks” domain in order to extort large sums of money from celebrities and companies that obviously want to protect their brand.

The Internet Corporation for Assigned Names and Numbers, or ICANN has recently sent a letter to the US Federal Trade commission and to Canada’s Office of Consumer Affairs to explore if the actions of Vox Populi Registry Ltd are illegal. Close to six hundred domain names have been added to the internet world lately, expanding beyond the typical “.com” and “.org.” Apparently the “.sucks” was accepted as part of this collection by ICANN. However, such powerhouses as Microsoft, Verizon and eBay have recently been complaining about the newest addition.

So far, purchased names have included Youtube.sucks, Bing.sucks, Visa.sucks and Bankofamerica.sucks, among others. CEO of Vox Populi, John Berard, fought back when he explained that the domain name is meant to create a forum for companies to interact with their critiques. He called his company’s business “well within the lines of ICANN rules and the law.”

Time will tell whether Vox Populi’s business plans sucks, or is seen as a brilliant move in the internet world.

Tiffany & Co. Sales Fall

Posted on by Scott Hodges

In a surprising development to many, Tiffany & Co’s quarterly sales fell for the first time in five years. Their sales are expected to decline even more as the strong dollar keeps tourists away from the NY store and also reduces their sales overseas.

The Fifth Avenue store counts on tourists to make up approximately 40% of their sales. Sales outside of the US account for about 50% of their total revenue.

As CFO Ralph Nicoletti said, “Tourist purchases are expected to continue to be pressured in the Americas.” The company actually expects a 30% drop in sales this quarter.

Read more about Tiffany’s situation.

The Optimism Behind ETFs

Posted on by Scott Hodges
As the old adage goes, there’s a time and a place for everything.  And in the world of finance and investments it also rings true.  Indeed, this is especially the case for Exchange Traded Funds (ETFs) that have over the years not gotten the good rep they deserve. Furthermore, in a recent white paper entitled Are Concerns About Leveraged ETFs Overblown, the case was recently made that concerns are exaggerated and that in fact there are many benefits to leveraged ETFs such as capital flows which limit ETF rebalancing demand and thus “mitigate the potential for ETFs to amplify volatility.”
So what is the truth?  When looking into ETF risks versus gains, it is important to investigate each individual ETF to see which one will fit best in your portfolio.  There are so many different types available these days. For example, one niche ETF is the HealthShares Autoimmune-Inflammation ETF, that tracks an index of American and foreign publicly-traded companies involved in the clinical research and development of treatments for various diseases like arthritis, multiple sclerosis and psoriasis.
Those who prefer the ETFs that center around current investment trends should look at the variety of those based on alternative energy sources like wind or solar power.  Alternative energy sources are becoming more attractive as oil prices gradually increase from the 2008 lows.
When it comes to leveraged ETFs, while there are risks, there are also many potential rewards. Comprising around 2.5 percent of the $2.5 trillion ETF global market, these are fiscally engineered with “leverage” that come from debt and derivative and can supercharge returns of their underlying benchmarks.  In addition, the benefit of using leveraged ETFs is that they represent a self-diversified index or pool of stock, which means market risk can be reduced.

Vis-à-vis inverse ETFs one is able to easily benefit from falling asset prices.  And these ETFs are really good for day trading since many are based on the daily inverse price performance of an underlying index.  Hence for those looking for short-term trading opportunities, inverse ETFs are a good option.

Hotel of the Future Comes to Japan

Posted on by Scott Hodges
Have you ever considered staying at a hotel staffed by robots? That’s the plan for the Huis Ten Bosch, a theme park that is modeled after the Netherlands in Japan’s Nagasaki Prefecture. They plan to open a hotel that is staffed by robots and filled with advanced technology.
The hotel will be called, appropriately, Henn-na Hotel, which means Strange Hotel. The first phase plans to open on July 17 with 72 rooms and the second phase will be finished in 2016 with another 72 rooms.
The hotel plans to have three actroids, which are robots that have strong human likenesses, as receptionists. Then, there will be four service and porter robots and others that will do menial tasks like clearning. As Huis Ten Bosch president Hideo Sawada said, “We’ll make the most efficient hotel in the world. In the future, we’re hoping to build 1,000 similar hotels around the world.” s
Other technology in the hotel will include facial -recognition doors rather than keys, radiation panels that will detect body heat in rooms and adjust the temperature, solar power and more.
Another interesting and unusual feature is the pricing. Rather than having fixed pricing, the room rates will depend on guests who bid for rooms during peak season. The hotel says that, at the time of the opening, the fees will range from $60 for a single room to $153 for a triple room.
You can already reserve your room and get ready for an interesting experience!

Cross-Cultural Meeting for Medical Advancement

Posted on by Scott Hodges
In a cross-cultural exchange, Changzhou City Mayor Gaoyun Fei recently met with Israeli scientist Professor Shlomo Ben-Haim. Also at the meeting were MicroPort Scientific Corporation Chairman Zhaohua Chang and Blue Sail Medical Co. Ltd. Chairman Zhenping Li.
According to Mayor Gaoyun Fei, biomedicine is advancing in the area at an accelerated pace. By meeting with these three people including Professor Shlomo Ben-Haim, he hoped that they could further strengthen cooperation with Changzhou in the healthcare field with professional education and training, among other things.
Professor Shlomo Ben-Haim expressed his admiration for the innovative environment that has been cultivated in Chanzhou. He has accepted the government’s invitation to be a Changzhou Scientific Advisor and to bring his experience, with 180 patents behind him, to their area.
Read about the meeting between Changzhou City Mayor Gaoyun Fei and Professor Shlomo Ben-Haim in the Chinese press.

Staying Above the Pack: Lindt Chocolates

Posted on by Scott Hodges

Lindt chocolates appear to be ahead of the chocolate pack, avoiding the cocoa price rise that has made many other chocolate makers have to raise their prices. With their North American expansion and their focus on the premium segment of the population, they have managed to boost their sales in 2014.

Their full-year sales are up 10%, far ahead of other chocolate makers in the market. As Chief Executive and Chairman Ernst Tanner told Reuters in a telephone interview on Tuesday, “I’m confident sales will continue to grow 6 to 8 percent in the future. Russell Stover should also be able to generate similar growth rates, but we first have to fully integrate them.”

Lindt paid approximately $1.3-$1.5 billion for their Russell Stover take over last year and were able to secure a third place standing in the US. Lindt’s operating margin should rise by 20-40 basis points in 2014. 

Google Setting Its Sites on the Kid Market

Posted on by Scott Hodges
Google has reported that it plans to refine its search for children next year, creating specific versions of its products such as YouTube and Chrome. Google won’t offer a specific timetable but they did say that it’s going to be a fulltime effort.

Certainly, this idea will not come without controversy. Will Google to mining younger user information without parental consent? Will Google be helping young children, who don’t necessarily belong online, to become more tech savvy and to find information they don’t need to have more easily?

As Marc Rotenberg, president of the watchdog group Electronic Privacy Information Center said, “The prospect of audio-based advertising targeting our children is very real, and that’s significant when you’re talking about an age group that is very susceptible to manipulation. The FTC will have to step up on this. I don’t think we want a world where our kids are sold things they don’t need.”
Pavni Diwanji, VP of engineering at Google, who is in charge of leading Google’s upcoming initiative to make things more kid-friendly, said, “We want to enable supervision but not be regimental. But that’s challenging because no two parents are alike. I have friends who are helicopter parents and others are even more liberal than me, but everyone has to be accommodated by whatever we create.”

She continued, “This is perhaps one of my greatest challenges. We want to lay the foundation right, and then make sure every single part of Google is great for kids. They are the future, so why not give them the tools to let them create it.”

Burger King Comes to India

Posted on by Scott Hodges

Burger King Worldwide is opening 12 outlets in India in the next 60-90 days. This is according to the chief executive of the India unit, Rajeev Varman. The chain has changed its menu in India and will sell mutton, chicken and veggie sandwiches.

As Varman said, “In the long run, India is going to be one of the largest markets globally. Burger King most certainly sees India as one of the biggest opportunities in the future.”

McDonald’s has already been around for almost two decades in India. Burger King is a bit behind the times and is hoping to catch up on this front.

Varman said in a recent email, “Turkey, China and Russia are each growing by around 100 restaurants a year. Here in India, we will set up our first few restaurants and use that to fine-tune our operating model before determining our growth plans.”

Bleak Numbers for America’s Workforce

Posted on by Scott Hodges
The most recent US job report showed that the unemployment rate has fallen to a six year low of 5.9%. However, the number of Americans looking for work hit 13,346,000 in September and this is the highest level since December of 2007 and the start of the Great Recession.
Similarly, the number of underemployed remains quite high with seven million people working part-time out of necessity. The number of unemployed and marginally attached part time workers is at 11.8%.

And the news is even worse for black and Hispanic workers who have unemployment rates of 11% and 6.9% respectively. 

Dreaming of DreamWorks Animation

Posted on by Scott Hodges

There is speculation that Japan’s SoftBank Corp will acquire DreamWorks Animation SKG, the Hollywood studio behind hits such as “Shrek” and “Madagascar.” The talks between the two were first reported by the Hollywood Reporter which quoted a source as saying the buyout would value DreamWorks at $3.4 billion.

Hollywood Reporter said that SoftBank had offered $32 per share for DreamWorks, a dramatic offer when Friday’s closing price was $22.36.

If SoftBank picks up DreamWorks, they will become the second Japanese technology company to buy a Hollywood studio, after Sony Corp bought Columbia Pictures in 1989.

SoftBank has stakes in many large listed companies including US mobile carrier Sprint, internet portal Yahoo Japan and onli8ne game maker GungHo Online Entertainment.

Time will tell if the deal goes through – but it’s certainly worth having our eyes on these two companies.