Metals USA Holdings Corp (MUSA) …..I’m here! Are you?


This company just reported a very profitable and frankly surprising to most (except me) third quarter 2011. Closed today @ $10.03 (+11.1%).  EPS of $0.45 on revenues of $492 million. Not an easy task by any stretch, in the base metals sector and it’s businesses the last few months. They did meet and even exceed a bit, previous guidance of 2Q. They did what they said, so they get some props/kudos for that in my book. Especially those companies with predominantly domestic manufacturing exposure. They also were aided by some very savvy feed stock buying/stoking, to lay away in inventory/stockpiling it seems. And used it and managed it well as to not have over hang inventory. Also a “vast  diversification of produced products mixture that is not only beneficial, but defensive of profit margins.” This in Plates and Shapes added to core ferrous business that was before. They managed to mitigate the cyclically nature of the business it seems. They stepped in and filled the supply gap created by some others going out of business during these tough economic conditions. They did this for a major HVAC maker just recently in fact.
The number of clients MUSA has across a vast array of industries really makes them a good proxy for the overall parts and manufacturing macro picture in the USA. 14 different markets they touch. 25% of revenues come from non ferrous sales this Q. That is up 20% from last year alone. (PCP) Precision Cast Parts should be looking at this company IMO. As well as Harold Simmons from Contran Corps Valhi Inc. (VHI). One analyst on the call today asked the CEO if he (the CEO) had any intentions of acquiring anything else soon. I felt that was the wrong question to ask. I would have asked > “Anybody been sniffing around looking to buy MUSA?” Because they are a target rich M&A caidate here at this market cap….. for sure in my book. (RS) (NUE) (AA) (CMC)(STLD)…all potential buyers

They supply Boeing (BA) and it’s 787 Dream-Liner (uses twice as much aluminum sheeting  as rest of BA’s models), among other aerospace companies that will be refurbishing fleets over the next decade, the oil and gas service industry, The trucking industry, Farm and agriculture equipment, Major Appliance Manufacturers, General Electric (GE), They make some electrical components and cabinets for them. Like the aluminum cabinets you see on street corners that house the traffic light controllers. That is bullish in itself for USA infrastructure revamp. This company has a monopoly on many specific things used in a lot of specific industries that will be seeing increased sales and demand soon. They also have some very lucrative Federal Government contracts both military and non. They also make ‘heat exchangers’ for geothermal wells/alternative energy and home heating industry. I personally would give this company any credit facility they needed or wanted and send them on a shopping spree to grow some more. I also see a dividend in future from the cash flow creation taking shape here. They make a lot of the steel for the automotive business (flat rolled steel) from their Ohio Valley recent acquisition. This is a USA jobs producer company (that goes milessssssssss in my trading book) Look below. They are paying less in taxes and employing more people. All USA companies should take note and lessons!

7. Accrued Liabilities

Accrued liabilities consist of the following:

     June 30,      December 31,  
     2011      2010  
Salaries and employee benefits    $ 14.2       $ 10.8   
Income taxes      2.3         3.1  

June 29, 2010

Metals USA Holdings announced  the acquisition of J. Rubin & Co.. A well-established metal service center with locations in Illinois, Wisconsin and Minnesota, J. Rubin’s broad product range consists of carbon steel bars, carbon plate and laser-cut flat-rolled products. J. Rubin’s product mix and value-added services are provided to a diverse range of end-markets.

March 11, 2011

Acquires The Richardson Trident Company. It’s third acquisition since its IPO last April. With sales for the twelve months ending December 31, 2010 at approximately $148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident’s eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States

Flag Intermediate Holdings Corporation (“Flag Intermediate”) and its 100% wholly owned subsidiary Metals USA, Inc. (“Metals USA”) and the 100% wholly owned subsidiaries of Metals USA are referred to collectively herein as the “Company,” “we” or “our.” Metals USA prior to its November 30, 2005 acquisition by Apollo Management V L.P. (“Apollo Management” and together with its affiliated investment entities “Apollo” or “Apollo V”) (the “Merger”) is referred to herein as the “Predecessor Company.” The condensed consolidated financial statements include the accounts of Flag Intermediate, and Metals USA and its subsidiaries. Intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. Flag Intermediate and Metals USA are 100% wholly owned subsidiaries of Metals USA Holdings Corp. (“Metals USA Holdings”).

“Trident provides a broad range of metals and processing services with a product mix that emphasizes aluminum, stainless steel and nickel. The majority of Trident’s customer base operates in the oil and gas services sector. Trident also serves customers in the aerospace, defense and transportation industries. Processing services include precision sawing, boring, honing, slitting, sheeting, shearing and tuning. Trident also offers supply chain solutions such as just-in-time delivery and value-added components required by original equipment manufacturers. As a result of the acquisition, we expect to increase our non-ferrous and value-added processing product and service offerings in the geographic areas and end markets that Trident currently serves.”

http://www.sec.gov/Archives/edgar/data/1038363/000119312511223280/d10q.htm

 This from the CEO’s comments today in the 3Q conference call. Who by the way, while on the call was very adamant as to how MUSA managed to do so well this past quarter. And the PE the market is currently treating MUSA with is utterly ridiculous. He seemed actually mad in his speaking tone about this. I think he is justified in his sentiment based upon the growth MUSA has exhibited in it’s recent acquisitions within the space. I also took note how he was very stern and repetitive towards the 3 analyst who were on the call (GS, JMP, JEF). Who all congratulated him on a ‘beat’ on earnings this Q. I am expecting an upgrade or two in the net few days from someone beside myself.

The cash flow machine created here will be paying off and down acquisition debt here in no time. Plus a little company debt is a good thing right now on balance sheets. He also stated he had ‘BIG’ clients who have recently moved some of their manufacturing businesses from abroad to grow operations domestically now. It seems the (MADE IN THE USA) protectionist trading thesis is also hitting MUSA here of late. He stated that because the cost of production in some cases is  no longer significantly more beneficial to do outside the USA. DID I JUST HEAR THEY/WE ARE STEELING JOB BACK FROM OVERSEAS? Niiceeee……re patriot-ising America JOBS JOBS JOBS they are!

Metal shipments were 340,600 tons for the third quarter of 2011, up 25% from metal shipments of 272,600 tons in the third quarter of 2010. Metal shipments for the first nine months of 2011 were 1,069,000 tons, up 35% compared to metal shipments of 791,600 tons for the first nine months of 2010. Toll processed tonnage was 36,900 tons during the third quarter of 2011 compared to 15,500 tons for the third quarter of 2010. Toll processed tonnage was 123,600 tons during the first nine months of 2011 compared to 36,000 tons for the first nine months of 2010.

Lourenco Goncalves, the Company’s Chairman, President and C.E.O., stated: “Our third quarter results confirm we are succeeding with our plan to make Metals USA the most efficient company in the service center industry. We operate with a mentality to constantly go after profitable business, regardless of the economic headwinds, and have shifted our business to support markets that are doing well. Growth in automotive, energy, lawn and garden, heavy equipment, and agriculture, to name a few, have all contributed to offset end-markets that continue to struggle with recession overhang, such as non-residential construction.”

*YOY a 25% increase in shipping tonnage

*43% improvement in revenues

*70% improvement in EBITDA

*188% net income increase YOY

Net sales for the third quarter of 2011 were $492.3 million, up 43% from net sales of $345.3 million for the third quarter of 2010. Net income for the third quarter of 2011 was $16.7 million compared to net income of $5.8 million for the third quarter of 2010. Earnings per diluted share (“EPS”) were $0.45 in the third quarter of 2011 compared to $0.16 for the third quarter of 2010.

Net sales for the first nine months of 2011 were $1,430.2 million, up 48% from net sales of $968.2 million for the first nine months of 2010. Net income for the first nine months of 2011 was $50.6 million compared to net income of $8.4 million for the nine months ended September 30, 2010. EPS was $1.36 in the first nine months of 2011 compared to $0.26 for the first nine months of 2010.

I’m a ‘committed, shares in strong hands’ LONG here! And very bullish on this company here today at $10. I owned the stock higher from here but did some good ‘blood in the streets’ buying in August to dollar cost average down to a nice avg that is well above water now. But frankly, that lack of them NOT doing the same opportunistic buying (and them as insiders and me as only Average Joe Investor) bothers me some. They need to put up some money and do some buying for me to commit more capital to my investment here. But what I do own I feel is going to make a lot of money here!

The 11 1/8% Senior Secured Notes due 2015 (Metals USA Notes) are obviously first thing to get paid down with cash or restructured. 

Metals USA Holdings is not a guarantor of the Metals USA Notes. There is a limitation on the amount of funds which can be transferred by the Guarantors to Metals USA Holdings in the form of dividends. Such amount available for distribution shall be increased by an amount equal to 50% of Consolidated Net Income, as defined, or reduced by an amount equal to 100% of Consolidated Net Loss, as defined. As of June 30, 2011, $3.4 was available for general distribution under the restricted payment covenant contained in the Indenture governing the Metals USA Notes.

 Com onnnnnn Bank of America, N.A., as Administrative Agent and Collateral Agent…..help a brother out!

23-Dec-2010

Entry into a Material Definitive Agreement, Creation of a Direct Financ

Item 1.01 Entry into a Material Definitive Agreement. On December 17, 2010, Flag Intermediate Holdings Corporation (“Flag Intermediate”), Metals USA, Inc. (“Metals USA”), and certain subsidiaries of Metals USA (collectively referred to herein as the “Company”) entered into an amended and restated loan and security agreement (the “New ABL Credit Agreement”) with the lenders party thereto and the Bank of America, N.A., as administrative agent and collateral agent. Flag Intermediate and Metals USA are wholly-owned subsidiaries of Metals USA Holdings Corp.The New ABL Credit Agreement provides for a new $500 million (which may be increased up to $750 million at the option of the Company), 5-year, senior secured asset-based credit facility (the “New ABL Facility”) that amends and restates the Company’s existing $625 million senior secured asset-based credit facility (the “Existing ABL Facility”) that was scheduled to mature on November 30, 2011.At the Company’s option, interest accrues on the loans made under the New ABL Facility at either LIBOR plus a specified margin (currently set at 2.50%), or the Base Rate (which is based off of the federal funds rate plus 0.50%, Bank of America’s prime rate or LIBOR plus 1.00%), plus a specified margin (currently set at 1.50%).

http://biz.yahoo.com/e/101223/musa8-k.html

Here is the link to conference call >

The 1 year beat down!

Shares Outstanding5: 37.06M
Float: 8.15M
% Held by Insiders1: 1.33%
% Held by Institutions1: 94.40%
Shares Short (as of Sep 30, 2011)3: 600.12K
Short Ratio (as of Sep 30, 2011)3: 3.80
Short % of Float (as of Sep 30, 2011)3: 5.10%
Shares Short (prior month)3: 606.66K
Top Institutional Holders
Holder Shares % Out Value* Reported
Tempus Quo Capital Management, LLC 3,692,582 9.96 55,019,471 Jun 30, 2011
Apollo Management Holdings, L.P. 23,728,650 64.03 353,556,885 Jun 30, 2011
Ameriprise Financial, Inc. 2,009,115 5.42 29,935,813 Jun 30, 2011
GOLDMAN SACHS GROUP INC 1,037,233 2.80 15,454,771 Jun 30, 2011
UBS O’CONNOR LLC 573,722 1.55 8,548,457 Jun 30, 2011
VANGUARD GROUP, INC. (THE) 481,475 1.30 7,173,977 Jun 30, 2011
FRIESS ASSOCIATES INC 414,200 1.12 6,171,580 Jun 30, 2011
SHAW D.E. & CO., INC. 410,238 1.11 6,112,546 Jun 30, 2011
TOURADJI CAPITAL MANAGEMENT LP 350,000 0.94 5,215,000 Jun 30, 2011
ADAGE CAPITAL PARTNERS GP, L.L.C. 245,768 0.66 3,661,943 Jun 30, 2011
Top Mutual Fund Holders
Holder Shares % Out Value* Reported
Columbia Fds Ser Tr-Columbia Small Cap Value II Fd 950,000 2.56 14,934,000 May 31, 2011
GOLDMAN SACHS SMALL CAP VALUE FUND 639,697 1.73 5,725,288 Sep 30, 2011
Columbia Fds Ser Tr I-Columbia Small Cap Core Fd 404,290 1.09 6,023,921 Jun 30, 2011
VANGUARD SMALL-CAP INDEX FUND 197,965 0.53 2,949,678 Jun 30, 2011
ISHARES RUSSELL 2000 INDEX FD 148,567 0.40 1,852,630 Aug 31, 2011
Advanced Series Tr-AST/Goldman Sachs Small Cap Value Port 105,465 0.28 1,571,428 Jun 30, 2011
ING Parners Inc.-ING/Columbia Small Cap Value II portfolio 105,000 0.28 1,564,500 Jun 30, 2011
COLLEGE RETIREMENT EQUITIES FUND-STOCK ACCOUNT 90,136 0.24 1,475,526 Mar 31, 2011
Powershares Exhg Traded Fd-Powershares Dyn Basic Materials S 82,671 0.22 1,030,907 Aug 31, 2011
ISHARES RUSSELL 2000 GROWTH INDEX FD 75,256 0.20 938,442 Aug 31, 2011
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Another ‘Cold War’ with Russia….might be in the literal sense.


If we fought another ‘Cold War’ with Russia, it might be cold in the literal sense this time around.  (I might as easily have used the term “participated” because that is really all we did in the first one.) This new cold war would be waged for the natural resource reserves (OIL mostly) under the Arctic ice that Russia claims to be theirs  It’s surely not ours, though we might have to back Canada militarily if this evolves.

In August 2007, a Russian submarine, with a mechanical arm, planted a specially made rust-proof titanium flagpole, complete with Russian flag, in the Arctic seabed at a depth of 13,980 feet. There isn’t as much ice up there these days as you’d think, by the way. There is little left since ice-breaker vessels have been breaking it up for the passage of oil tankers for a while now. Even as far back as Standard Oil, decades ago, companies have been trying relentlessly to clear the Northwest Passage for oil shipping.  All the while, they were warming and changing ocean currents unintentionally. (That is a story for another time, however.)  Don’t get me wrong.  I am not taking you down the radical environmentalist, tree-hugger road here. Personally, I would drill an oil well through a polar bear’s head if it would get me $2 gal gasoline for life.

We have problems coming with Russia. It is festering on a few different fronts. There are Iran issues that involve them, missile shield issues, the fact that they have their interjected themselves into the European debt crisis, land disputes that involve the future energy plans of many countries. Putin is about to take the helm again in Russia as its ‘decider’. His reputation does precede him. I am a student of Putin and his life. While I am not an expert on him, I can say I know just about everything about this, except where the bodies are buried. He is brilliant and cunning and has the heart of a lion. I personally live my life by the Latin saying: “nihil timendum est,” which translates as “fear nothing,” but this man eats that for breakfast as a shake. He even once said he would “one day bring the USA to its knees….without even firing a single shot or missile”.  As much as I admire this man and how ‘bad ass’ I think he is in a lot of ways, that he continues to hold power concerns me greatly going forward, as I think it should concern every American.

As an investor in US markets however, I am as excited as a child on Christmas Eve night.  If events unfold in the right way, these problems with Russia could be a boon to our economy.

I once wrote a thesis on how I suspect Putin could try to hurt the US’s economic stability (without a shot or missile). He might try to play the role of ‘savior’ to the European Union and the Euro by announcing Russia’s intention to enter the EU and adopt the Euro.  Such a move could save the EU and Euro if a super-crisis develops over there.  Even a mere whisper or implication of Russia’s stepping in would have the desired effect, sending the markets whipsawing and just going crazy. This could potentially send the US Dollar crashing (or at least running around with its head cut off for a bit). Putin can move markets with words and actions like no other.  It could get real crazy, real quick if he starts talking some more about this kind of intervention.

Putin is also fortifying and revamping his military and he has plenty of money to do it.  Right now Russia is in a position similar to the one the US was in during the Cold War era when we used spending tactics to try to bankrupt them. I am a great student of ‘social cyclicality’ and how great societies switch places in the course of the evolution of the world. It has happened many times before. I find it ironic that we seem to be heading toward socialism while Russia is now living life high on the capitalist hog so to speak. I am a child of the 1980s,  back when it was preached in schools that all Communism and Socialism was the axis of evil, period. That wasn’t very long ago


Notes:

Canadian foreign policy and the law of the sea

By Barbara Johnson, Mark W. Zacher

Barbara JohnsonMark W. Zacher - 1977 – Law – 387 pages

“In 1968 vast quantities of oil and gas were discovered at Prudhoe Bay in Alaska.  the Humble Oil Company, a subsidiary of Standard Oil Company of New  send a large oil tanker, to be specially modified into an ice-breaking vessel to clear the North West Passage for oil shipping from the North Slope.”

========

http://www.cnn.com/2007/WORLD/europe/08/02/arctic.sub.reut/index.html

Russia plants flag on Arctic floor

==============

Putin Pumps Over $9B Into Shipbuilding for Nuclear Submarines

Friday, November 11, 2011

Prime minister of Russia, Vladimir Putin, has announced plans for the country to build five nuclear submarines in a massive $280 billion rubles (US$9.28 billion) shipbuilding and maintenance order for the Russian Navy.

In all, seven contracts were signed by the Defense Ministry and United Shipbuilding at the Sevmash shipyard in Severodvinsk .  Among these contracts were orders for five Yasen and Borei class strategic nuclear submarines.  The agreements will serve as some of the final requirements set by the Defense Ministry in 2011 for the Russia’s military revamp.

Putin, who is seeking to be elected for his third term next year, was quoted by Reuters saying that he is sure the realization of the unprecedented program in terms of both goals and financial resources will enable his nation to carry out a large scale modernization of the Naval fleet.

He added that all of these vessels will be built by Russian companies and that the Russian shipbuilding industry must be prepared for serial production of advanced hardware and weapons that are completely compliant with standards and tasks that the Navy must fulfill.

The Moscow Times said that the submarines are to be built at a Sevmash shipyard atop of an Orthodox monastery.  The precise value of each contract has not been disclosed, however it has been estimated that one Yasen submarine costs around US$1.3 billion.

Since 1993, the Borei and Yasen nuclear submarine programs in Russia have been strangled by delays and controversies with late delivery times, questionable technologies, and a sharp drop in military spending in the ‘90s.

The nuclear submarine contracts are only one installment of the US$653 billion modernization plan to be completed by 2020.

====================

November 12, 2011 3:40 pm

“In his first meeting with foreign journalists and academics since announcing he
would stand again for the Russian presidency next March, Mr Putin on Friday
night dismissed the risk of “catastrophic” inflation as a result of ECB
intervention. But he warned that the combined forces of the IMF and the European
financial stability facility would not be sufficient for a task that could
require “1.5 trillion euros”.

HE IS GETTING READY….this is laid ground work coming now.

Steve Goff says : “listen to the whispers…this way the screams are not so
shocking”

http://www.ft.com/intl/cms/s/a512dc20-0cb6-11e1-a45b-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fa512dc20-0cb6-11e1-a45b-00144feabdc0.html&_i_referer=#axzz1dXKFghb9

=================

Flash: Russia to honor Syria arms contracts

MOSCOW, November 13 (RIA Novosti)

Russia will honor all arms contacts with Syria despite continuing violence against anti-government protesters in the country, a senior military official said on Sunday.
“Since there are no restrictions on the supply of arms to Syria, Russia will fulfill its obligations under the contracts signed with this country,” Vyacheslav Dzirkaln, deputy head of Russia’s Federal Service for Military and Technical Cooperation, told reporters in Dubai.

http://en.ria.ru/world/20111113/168663837.html

 

 

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Charles Schwab Corp @ $12.50 (SCHW) is a BUY!


I have already told you many times, the multi-sensational, ‘in the cat bird seat’ fundamentals, going forward with Charles Schwab (SCHW).

Now for a technical catalyst!

Look at the 1yr chart and the very nice ‘cup’ taking formation. We are makin our way up towards the the beginning formation of the handle to come. Now, I am not a technician. Nor do I play one on TV. But I have spotted this before. In Church & Dwight (CHD). It was pre 2:1 split in (CHD) when it was trading 45-50. And then it’s run to $85 before splitting. See old post below.

“Components of the Cup and Handle

There are several components of the cup and handle that should be noted in order to evaluate the potential trading signal. First, it’s important that there is an upward trend before the formation of the cup and handle. In general, the larger the prior trend is, the lower the potential for a large breakout after the pattern has been completed. The reason being that a lot of the run-up in the security happened prior to the formation of the cup, again weakening the size of the potential upward move

A cup-and-handle pattern resembles the shape of a tea cup on a chart. This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same.

The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend.”

————-

old Stockpickr post

I’m pondering whether to commit more $ to Church & Dwight Co. Inc. (CHD) @ or
around $56-57? In anticipation of a move up to the next level in the coming
weeks. One based on the underlying fundamentals in the company and it’s stock
being strong within the space. Second, I give them props for ‘staying strong all
along’, so to speak. Lastly, what seems to be a “cup n handle” formation in
the charts. That’s indicative of a move to the upside to come. Maybe to the
$65-68 range some 17-19%. Stock close Fri July 17 2009 @ 56.19. I would’ve liked
to see a little more roundness on the formation of the bottom of the cup to be
honest, but I think it’s there or presents itself enough (this crap ain’t a
precise science ya know ;)

steve goff

7-18-09

http://stockpickr.com/view/answers/73884/

===================

Church & Dwight Co. Inc. (CHD) @ $68…one to watch in the coming weeks.

Building yet another ‘cup n handle’ formation in the charts and the fundies just look sensational… for this Domestic Consumer Staple BEAST!…and the
manufacturer of Trojan Brand Condoms.

Asked by Steven L. Goff  months ago - 2 answers - 266 views

http://www.stockpickr.com/view/answers/74181/

====================

Re:  (CHD) Chart is showing a  Cup n Handle formation!    18-Jul-09 12:53 pm    
this stock is getting ready to break out…..am I alone? ~steve goff

18-Jul-09 12:53 pm

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=3548&tid=928&mid=930&tof=-1&rt=2&frt=2&off=1

====================

16-Oct-11 07:38 pm

I’m expecting upside surprise from Chuck!    16-Oct-11 07:38 pm    
Schwab Corps (SCHW) earnings on Monday? Dare I even attempt to calculate
estimated analysis??? he he off course > Along the lines of $0.25-.29 per share
for the past quarter. This surprise to most, will stem from a few different market and societal catalyst that are currently taken place and shape.*The Good-Guy Bank/Bad-Guy Bank, in the ‘Occupy Wall Street Campaign’ (What are they calling themselves these days?)During the whole sub-prime lending fiasco, the CDS’s and CDO’s cesspool, the mortgage lender and housing market meltdown, Major insurers collapses, that have occurred since 2007. Schwab is one names you have not seen in the headlines.

Orrrrr ever standing in line for some TARP from ‘Hammering Hank Paulson’ at the time. Because you participated in casino games. That is very important to Chuck Schwab being THE industry ‘poster child’ for asset management integrity and ‘prudent man rule’ business practices and investments. Not a DIME of TARP taken here. It’s even tough to get Schwab to lend you stock to short (now that is tight run ship) They were not even made to do the en-unison ‘perp walk’ to the FED Discount Borrowing window by Paulson. Like he made some do who did not even really need TARP assistance. Goldman Sachs even had to become a ‘bank holding company’ in order to tap the FED window then. We are now reading headlines about that change hurting Goldman. Goldman Sachs should BUY Charles Schwab out for a few reasons.

That is one of them for sure. Everyone and there mother knows a majority of
Chucks investments and assets are tied to low rates right now. Eventually that
tide will turn hard.The inevitable consolidation of the retail brokerage market is coming to a head so to speak. Only the strong are left and are attracting the folks (customers) who fled others for either integral issues or poor asset management and performance, or exorbitant management fee’s.*Chucks recent and accretive to earnings acquisitions.

Especially into the retail options market. the bought OptionsExpress in mid March for about $1 billion. Also last August 2010 bought Windward Investment

Management for $140 million. And today With more and more ‘Average Joe Investor  using the options market to both hedge core long holdings and to participate in volatile stock movements with out having to buy long or short stock, thus deadening your trading/operating capital. To writing and selling covered calls
on positions.

The financial information playing field is now mostly level for investors, via
the evolution of the Internet and the instantaneous information news cycle of
the modern world we now live and trade in. A ‘ticker-tape parade today’ would
kinda hurt from all the iPhones hitting you on the head….lol! Serious
investors are smarter and more well equipped today than ever. And if you just
want to let someone else make your investments and growth your wealth while
mitigating foreseen risk. They have some of the best in the biz working there
doing just that.

The mass creation blitzkrieg of the ETF and ETN markets. Chucks stands to benefit from that as well. Even know ETF’s are the next black swan event IMO. Chuck still make coin on the transactions of them and not the managing of them. They have a little….but not much exposure there.

$1.7 trillion in total assets, roughly half are held in retail brokerage
accounts. Assets in retail advisory accounts now weigh in at about $115 billion
and growing. 750,000 bank accounts. With no $5 DEBIT FREE…..lol

The trading software/platform is great also.In the second quarter, retail advisory assets rose by 20 percent from the year-earlier period. Indeed, Schwab is converting “billions” of dollars a month from self-directed accounts to one of its advisory offerings, Bettinger said.

===============

Charles Schwab Corp. (SCHW) @ $12.75

on 10-14-2011

Sentiment : Buy

=======================

Schwab 3Q net income up 77 percent

Schwab 3Q net income climbs 77 percent as assets increase, clients use help advisory services

Discount broker Charles Schwab Corp. said Monday its third-quarter net income rose 77 percent as more investors turned to the company’s advisory services amid increased market volatility and stock trading increased.

The San Francisco-based company posted net income of $220 million, or 18 cents per share, compared with $124 million, or 10 cents per share, a year ago. The year-ago profit was $218 million excluding certain charges.

Revenue rose 11 percent to $1.18 billion from $1.06 billion a year earlier.

The results missed the estimates expected by analysts surveyed by FactSet. They expected earnings per share of 19 cents and revenue of $1.19 billion.

Shares of Charles Schwab fell 81 cents, or 6.4 percent, to close at $11.94 Monday. They’ve traded between $10.56 and $19.69 in the past 52 weeks.

Client assets grew 7 percent to $1.58 trillion, which includes $655.4 billion in the investor services segment of the business, which was up 2 percent from a year ago, and $640.1 billion in adviser services, up 5 percent. Other institutional services assets grew 30 percent to $280.9 billion.

Clients opened 191,000 new brokerage accounts during the period, up 14 percent. The company ended the quarter with 8.5 million active brokerage accounts, 769,000 banking accounts and 1.46 million retirement plan participants.

CEO Walt Bettinger said the business environment weakened further in the third quarter, but clients stayed with their long-term investing plans.

“Their cash holdings at Schwab remained close to pre-crisis levels, and they were consistently net purchasers of securities,” he said. “Our full-service capabilities were in demand during the recent quarter as enrollments in our advisory solutions continued at a strong pace.”

Net interest revenue jumped nearly 14 percent to $443 million from $387 million. That gain was largely the result of growth in interest-earnings assets. The average rate earned on those assets was 1.82 percent in the latest quarter, slightly below the 1.89 average in the year-ago quarter.

Net trading revenue grew to $248 million from $182 million.

Expenses fell to $821 million from $864 million.

Bettinger said effective expense discipline will be key to the company’s near-term profitability as economic conditions remain challenging.

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Morbid Entertainment….The Dead Pool!


I signed up for this ‘dead pool’ at http://deadpool.rotten.com/. And only two days into it, with Egypt’s Qadaffi, I get my first scored points of the 10 people I picked to ‘kick-the-bucket’ in the next 12 months. It’s kinda morbid entertainment, I agree. To spend ones spare time in life or any time for that matter, trying to calculate another human’s death, based upon the information traveling around cyberspace and in tabloid magazines! (Yes, them rag mags are still in your face in checkout -lines at the supermarket)

I use this game as a tool to exercise my deductive reasoning abilities and critical decision making process.

How cool is my screen name I made up for game? > StPeterPickr

I am also pretty good at picking winning stocks and trades in the markets. So if you are reading this, be glad you are not on this list….cuase I am very good pickr! And it means there is a fair chance of you being ‘worm food’ in the next 12 months.

I also wonder how the modern-day ‘harnessed collective consciousness of the Internet’ and so many people around the world focusing on one person(s) ill demise on this planet…plays into it now. I really wonder about how it does in the future of our species.

“It may be that our role on this planet is not a worship a God, but to create it”~ Sir Arthur Charles Clarke

…That’s an interesting and fascinating concept when you think of the harnessed collective consciousness the Internet has brought to our species….yes? And the never-ending exponential advancements in technology and where that will take us with regards to religion. The conquering of the multi human language communication barrier via computer translation and voice recognition software.

The Almighty Voice From Above…might someday be the best of our collective gene pool who emigrated off of this planet either in the future………or in it’s past!

Here below is my picks for the next 12 months:

Hello, StPeterPickr. Your game ends on 17-Oct-2012.
Your ranking in this game is #2,113 of 91,078 users.

Your Player Page URL, to share with friends: http://deadpool.rotten.com/profiles/30/12/90458.html
Change Password | Log Out
Data Feed: RSS (What is this?)

# SUBJECT OCCUPATION SUMMARY BORN DIED LISTED
1 Muammar Qaddafi Head of State Dictator of Libya 1942 20-Oct-2011 18-Oct-2011
2 Kirk Douglas Actor Spartacus 09-Dec-1916 TBD 22-Oct-2011
3 Joe Frazier Boxing Smokin’ Joe 12-Jan-1944 07-Nov-2011 05-Nov-2011
4 Zsa Zsa Gabor Actor Cop-slapping Gabor sister 06-Feb-1917 TBD 18-Oct-2011
5 Billy Graham Religion Televangelist 07-Nov-1918 TBD 22-Oct-2011
6 Johannes Heesters Actor Dutch/German film actor 05-Dec-1903 24-Dec-2011 22-Oct-2011
7 Joseph Kony Criminal Lord’s Resistance Army in Uganda 18-Sep-1964 TBD 18-Oct-2011
8 Andy Rooney Journalist 60 Minutes‘ resident crank 14-Jan-1919 04-Nov-2011 26-Oct-2011
9 Mickey Rooney Actor Actor in Andy Hardy comedies, musicals 23-Sep-1920 TBD 22-Oct-2011
10 Jiang Zemin Head of State President of China, 1993-2003 17-Aug-1926 TBD 20-Oct-2011
SCORE: 4
Player name: StPeterPickr
Game No.: 201,110
Hometown: Ventnor NJ
Game started: 18-Oct-2011
Game ends: 17-Oct-2012
Rotten Dead Pool
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They should hold lottery drawing for the first to walk on MARS!


NASA Sets Plan for Deep-Space Rocket
Sept. 14, 2011

NASA unveiled plans for a long-awaited $35 billion new rocket
program designed to dwarf the storied boosters of the Apollo era and powerful enough to launch astronauts to asteroids and eventually to Mars.

Is the stock trade titanium and satellites?

(originally written  on January 29, 2010)

The Banks get Trillions…..and humanity and it’s DREAMS get cut from the budget!

I have disagreed and on rare occasions agreed, with much of what President
Obama and his Administration has done. Since not only taking the steering wheel
of our nation, but supposedly humanity and it’s species, via the Nobel Peace
Prize.

But I am a sad and repulsed American here today. When I see that the banks and
special interest can get trillions in ‘Tax Payer money’, that is comprised of human
blood, sweat, and tears of the last 200 plus years. Yet, we as a nation, supposedly a highly educated and developed one, can not muster up $5 billion bucks a year to give NASA?

This to explore sending a human, once again returning or manning a permanent space
station on the Moons surface or even Mars. If not for the sake of a
demonstration and exhibit of our advancements as a species thus far, that will possibly boost morale across the nation.
And while taking prudent measures to ensure the survival of our species in the
event of catastrophe, be it man-made or naturally caused. Than to at least
acknowledge the fact, it is our specie’s next frontier in our evolving to a
higher living and functioning intelligent being. Preferably with the best of
our collective gene pool, via the understanding of the human genome(DNA). It’s called ‘seeding the STARS’ It is where our exponential advancements in technology and medicine, and the creation/morph between biological and machine begin. It is not as creepy as it sounds. Dont think ‘The Terminator’. Think more along the line of a permanent Bluetooth in your ear at first.

When talking NASA funding, I always reference a great scene in the movie
Armageddon with Billy Bob Thornton as the NASA space director. And the President asking him: “Why didn’t we see this asteroid coming Dan?” Dan: “Our Earth Collision Budget only allows $3 million dollars Mr. President….that covers about 3% of the sky sir..and with all do respect…it’s a BIG ASS SKY sir”….lol

And for them give reason that Government funding is not needed, nor a budget allotment this year. Because private corporations profit seeking and the creation of enterprise
for space tourism will drive the exploration is just preposterous at the
present time. Don’t get me wrong, I am a believer in that in the longer picture. A big
fan of Sir Richard Branson and his visions there in space tourism. But in it’s
infancy now. We also have many things orbiting around our planet at any giving time
that are crucial to not only our national security, but our way of daily life,
that if interrupted could fall back to creating national security issue. Many
weather satellites, military spy, cell phone, TV, etc. We don’t want people looking for
cheap ways to get things in orbit and risking them screwing things up.

On another note…GOOGLE once had a contest offering like $50 million to anyone who could launch an object(unmanned) from Earth to the Moons surface and drive it like 10 feet remotely from Earth.

I wrote a blog that day entitled: “Google going to the Moon!….Sell the stock
now”….Because ‘going to the moon’ is the all time penny stock pumper-dumper
scammer phrase….lol…..GOOG was trading $700 then Dec 2007.

I think the Govt should just come out and say we have had manned stations on
the dark side of the Moon for the last 20 years. And we feel the human race is
intellectual enough to not only appreciate it. But to understand the need to
be kept secret up until this point. Where now it serves the ‘greater good’ to be
known and developed by the world together in efforts. I would be like
cool! How do I get a job application there? It would inspire generations
and the avarice corporations and bottom lines will take it from there I tell
ya’s!. But most importantly, children will have something to reach for once again in this country.

They say “shoot for the sky, because if ya miss, you’ll only land amongst the
STARS”

So appropriate…yes?

Asked by π/steve goff 10 answers – 150 views

http://www.stockpickr.com/members/view/answers/71117​/

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February 3, 2010

In innovation and cutting edge design. How does the USA maintain, if not excel past China and the rest of world for that matter?

EASYYYYYYYYYYYYYYYY

We suspend if not do away with patents altogether (not creative copyright in
performance arts) but mechanical patents for starters.

And rest on the merits of American creativity, innovation, and ingenuity. Coupled with the spirit of ‘being of the best’ and building the best anything. If not for the betterment of humanity,than to lines ones pockets with the money made from the next big thing…… That creativity now is hindered by the monopolistic control and use of
patents. And we beat CHINA at their own game in the process. With this move
above….innovation would explode and markets would roar….we would have the
closest thing to a ‘virgin free market’ as we’ve ever had in a long time…..I call
it ‘The Renaissance 2.0′

Does anybody want to debate the hindrance that intellectual property and patent laws put
on the creativity and the explosion of exponential growth both in technology
and our world economy, that would occur without them?

There’s no reason why a high school kid(s) or innovative adults should not be
able to compound of existing technology for an invention of something that
serves the ‘Greater Good of Humanity’…my opinion!

Suspend patents, if not do away with intellectual property that is a tool of monopolistic control. And let the innovation rest on the awesome creativity of the USA citizen.

Asked by π – months ago – 6 answers – 160 views

http://www.stockpickr.com/members/view/answers/70720/

===================

April 6, 2011

Have you ever dreamed of going to space? Earlier today we broke it down with Sir Richard Branson (Founder, Virgin Group), and his two goddesses as he spoke about their $200,000/seat trip to space, which is about 12-18 months out from launching.

“I would just like to let you know Sir Richard. When it comes to making an endeavor into space residency, dwelling, and occupancy. Or even a maned space mission to MARS or any other planet you might purchase before then. (We call that SNARK!…Sir Richard…lol) I will surely volunteer to be considered for such mission. For that is the beginning or official acknowledgement of the space/star seeding process of our species. Even if it means never returning to Earth. I mean that. For it is in the interest of ‘The Greater Good’ of our species. And I am of the contention that alone is worth a human life or two or a 1000! “~Steve Goff
==================

I saw a comment by Jim Davis over on NASASpaceflight.com that made me want to do a poll about real attitudes towards Mars colonization.  Let me give some background thoughts, the questions, then some rules for comments.

First off, Jim’s goal here was to ask people questions that really delve into how likely they actually would be to do something like one-way Mars colonization, especially if the situation isn’t exactly a paradise.  He wanted someone to do a scientific poll, and while I’d like that too, I don’t have the money to do so myself.  But I think if we do this right, we can at least get some relevant data, even without doing truly random sampling.  But more on that after the questions.

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