Remember the $10,000 California tax credit for newly built homes that state buyers exhausted earlier this year in only about four months? Well, new-home activity is down since that money ran out, and state builders are calling for an extension of the credit, according to today's news release from the California Building Industry Assn.
“Since the discontinuation of the popular home buyer tax credit, we have seen a significant drop in traffic these past few months, which continues to drag down new-home construction, and in turn, job creation,” said Liz Snow, CBIA’s president and CEO. “We applaud the Senate for taking swift action in passing the tax credit extension, and we hope the Assembly follows suit.”
According to statistics compiled by the Construction Industry Research Board (CIRB), home builders pulled permits for 2,920 total housing units in September, down 1% from August. When compared to September of last year, production in 2009 was off by 36%. Permits for single-family homes totaled 2,150, down 2% from the previous month and down 12% from September 2008, while multifamily permits totaled 770, up 0.5% from August but down 63% from September of last year.
The builders' stance is that more home building means more jobs and work for Californians, which would benefit the state's overall economy. Because things slowed once the credit funds were exhausted, this doesn't seem to have much staying power as a strategy, although it did help reduce unsold inventory. Will an extension help fuel an economic recovery or just drag out the process?
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
Glad to have buyer of PYCO oil mill
Greenwood and Leflore County received some welcome economic news last week with the announcement that PYCO oil mill had a buyer.
Delta Oil Mill of Jonestown, the last remaining cottonseed-oil processing facility in Mississippi, has announced its plans to acquire the Greenwood plant as well as PYCO’s storage facilities in Minter City and West Helena, Ark.
The PYCO mill had stopped production in March as the Texas-based company scaled back its operations in response to the severe reduction in cotton acreage in Mississippi and throughout the South.
The acquisition works for Delta Oil Mill, a gin-owned cooperative just like PYCO, because it plans to use this opportunity to diversify its business.
At least in the short term, the Greenwood oil mill will be converted to processing soybeans, while all the cottonseed production will be concentrated at the Jonestown plant.
Should cotton acreage rebound sufficiently in the future, however, the Greenwood plant will have the capability to quickly revert back to cottonseed.
This strategy gives Delta Oil Mill more flexibility to respond to the planting decisions made by farmers, which in recent years have been heavy on grains and light on cotton.
Since it doesn’t take as much labor to process soybeans as cotton, the anticipated employment at the Greenwood mill, when it resumes production in the first quarter of 2010, will be less than one-third of what PYCO employed at its peak. Still, 30 jobs are 30 jobs. Given the spate of closures and reductions during this recession, it’s nice to have news of jobs being added back.
Those 30 jobs are not the only benefit that Delta Oil Mill brings to this community. It gives grain elevators and farmers a nearby buyer for their commodity, and it brings back on line for Greenwood Utilities one of its larger industrial consumers.
We welcome Delta Oil Mill to Greenwood and hope this is the beginning of a long and prosperous relationship.
Source
Delta Oil Mill of Jonestown, the last remaining cottonseed-oil processing facility in Mississippi, has announced its plans to acquire the Greenwood plant as well as PYCO’s storage facilities in Minter City and West Helena, Ark.
The PYCO mill had stopped production in March as the Texas-based company scaled back its operations in response to the severe reduction in cotton acreage in Mississippi and throughout the South.
The acquisition works for Delta Oil Mill, a gin-owned cooperative just like PYCO, because it plans to use this opportunity to diversify its business.
At least in the short term, the Greenwood oil mill will be converted to processing soybeans, while all the cottonseed production will be concentrated at the Jonestown plant.
Should cotton acreage rebound sufficiently in the future, however, the Greenwood plant will have the capability to quickly revert back to cottonseed.
This strategy gives Delta Oil Mill more flexibility to respond to the planting decisions made by farmers, which in recent years have been heavy on grains and light on cotton.
Since it doesn’t take as much labor to process soybeans as cotton, the anticipated employment at the Greenwood mill, when it resumes production in the first quarter of 2010, will be less than one-third of what PYCO employed at its peak. Still, 30 jobs are 30 jobs. Given the spate of closures and reductions during this recession, it’s nice to have news of jobs being added back.
Those 30 jobs are not the only benefit that Delta Oil Mill brings to this community. It gives grain elevators and farmers a nearby buyer for their commodity, and it brings back on line for Greenwood Utilities one of its larger industrial consumers.
We welcome Delta Oil Mill to Greenwood and hope this is the beginning of a long and prosperous relationship.
Source
Saturday, November 28, 2009
Husky a big buyer at B.C. land sale
Drilling Rights - Husky Energy revealed itself as a big buyer at last week's British Columbia land sale that saw mostly anonymous bidders plunk down $370 million for drilling rights.
In a news release, Calgarybased Husky said it bought almost 10,000 hectares for an undisclosed sum.
The new acreage will form the basis of an expanded push into tight gas, CEO John Lau said in a news release. "These results are encouraging for Husky to expand its strategy in unconventional resource play development in this area. The acquisition enhances Husky's position in the Doig/ Montney play, which has become one of North America's most promising plays for natural gas development."
Husky said a pair of vertical exploration wells tested 2.9 million cubic feet per day each from the Doig formation, while a third Montney well flowed 5.4 million cubic feet per day.
The company plans to drill its first horizontal well in the area next year.
Source
In a news release, Calgarybased Husky said it bought almost 10,000 hectares for an undisclosed sum.
The new acreage will form the basis of an expanded push into tight gas, CEO John Lau said in a news release. "These results are encouraging for Husky to expand its strategy in unconventional resource play development in this area. The acquisition enhances Husky's position in the Doig/ Montney play, which has become one of North America's most promising plays for natural gas development."
Husky said a pair of vertical exploration wells tested 2.9 million cubic feet per day each from the Doig formation, while a third Montney well flowed 5.4 million cubic feet per day.
The company plans to drill its first horizontal well in the area next year.
Source
Sunday, November 15, 2009
Top-line oven to warm home buyers' hearts
A MIELE oven can do more than bake a cake these days - it might just help whip up a home sale. More developers are including branded appliances in apartments to impress home seekers, and some have certainly stopped to gawk at the gadgetry.
But will all house hunters bite? Anecdotal evidence suggests that some would still care more about the prices of the homes, especially if they were never fans of the brands to begin with.
'The inclusion of branded appliances has both its good and bad points,' said Chesterton Suntec International research and consultancy director Colin Tan.
'If the developer knows his target market well, it is a plus. . . It is a negative if the buyer does not recognise the brand or appreciate it.'
Developers of mid to high-end units have used premium furnishings to boost their projects' image for some time, but the trend gathered more steam some two years ago when markets boomed.
Rich consumers searched for new ways to spend, and steel fridges and dishwashers quickly became the new status symbols.
It is easy to get used to a good thing but difficult to quit it. The recession may have eroded some consumers' savings but not their aspirations for luxury. This is especially so in Asia, which did not bear the brunt of the downturn.
'As consumers become more globalised and develop a taste for fine living, they are more willing to pay for luxury homes that are distinguished in areas such as design and architecture, premium fittings and furnishings as well as facilities,' said Keppel Land marketing general manager Albert Foo.
CapitaLand and Far East Organization also shared that they use fittings which meet home owners' lifestyle needs.
To stand out among the competition, prime-district projects such as Keppel Land's The Promont, Viva, and Belle Vue Residences will have bathrooms decked out with Axor fittings.
The brand comes under Hansgrohe and according to the latter, Axor Starck, Axor Citterio and Axor Massaud fittings are popular with developers here. Single-lever high-riser basin mixer from these lines are priced from around $1,300 to $2,190. 'We have achieved consistent and very significant growth in our partnership with property developers,' Hansgrohe said.
Developers are also giving attention to kitchens. Units at The Ritz-Carlton Residences and The Marq On Paterson Hill will come with a 90cm Miele oven, which is priced at a cool $15,730.
'Apart from the key essentials which are cooker hoods, hobs and ovens, many property developers have further embraced lifestyle components such as Miele wine cellars, coffee makers, steam ovens and plate warmers for their luxury developments,' said Miele projects general manager Roland Ong.
And reflecting the growing trend of using branded appliances, even mass-market projects such as Trevista in Toa Payoh and The Peak @ Balmeg in West Coast are creating a splash in their bathrooms with Hansgrohe fittings.
'Not only in the prime areas - in other districts also, more developers are using branded goods,' Knight Frank executive director (residential) Peter Ow observed.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak estimates that 6-8 per cent of the cost of building a high-end apartment goes to appliances and furnishings such as dryers and cooker hoods. For mass-market condominium units, the figure is about 5-6 per cent.
Chesterton Suntec's Mr Tan believes that the money is well spent for prime projects which compete less on pricing. The appliances 'add considerably to the overall show apartment experience' and with them, 'developers are able to go some way to justify the higher prices'.
In fact, market watchers reckon that developers could have received discounts from buying the appliances in bulk. This would lower the cost of including them in units.
But the strategy may not be as effective for mass-market projects which tend to draw more price-sensitive buyers. A civil servant who declined to be named told BT that she recently bought a resale condominium unit because it cost less than a newly launched one. The place did not come with fancy appliances but she later installed one - a Hansgrohe shower.
Home seekers in this market may also place less emphasis on brands and developers need to know their target markets well, Mr Tan said.
Source
But will all house hunters bite? Anecdotal evidence suggests that some would still care more about the prices of the homes, especially if they were never fans of the brands to begin with.
'The inclusion of branded appliances has both its good and bad points,' said Chesterton Suntec International research and consultancy director Colin Tan.
'If the developer knows his target market well, it is a plus. . . It is a negative if the buyer does not recognise the brand or appreciate it.'
Developers of mid to high-end units have used premium furnishings to boost their projects' image for some time, but the trend gathered more steam some two years ago when markets boomed.
Rich consumers searched for new ways to spend, and steel fridges and dishwashers quickly became the new status symbols.
It is easy to get used to a good thing but difficult to quit it. The recession may have eroded some consumers' savings but not their aspirations for luxury. This is especially so in Asia, which did not bear the brunt of the downturn.
'As consumers become more globalised and develop a taste for fine living, they are more willing to pay for luxury homes that are distinguished in areas such as design and architecture, premium fittings and furnishings as well as facilities,' said Keppel Land marketing general manager Albert Foo.
CapitaLand and Far East Organization also shared that they use fittings which meet home owners' lifestyle needs.
To stand out among the competition, prime-district projects such as Keppel Land's The Promont, Viva, and Belle Vue Residences will have bathrooms decked out with Axor fittings.
The brand comes under Hansgrohe and according to the latter, Axor Starck, Axor Citterio and Axor Massaud fittings are popular with developers here. Single-lever high-riser basin mixer from these lines are priced from around $1,300 to $2,190. 'We have achieved consistent and very significant growth in our partnership with property developers,' Hansgrohe said.
Developers are also giving attention to kitchens. Units at The Ritz-Carlton Residences and The Marq On Paterson Hill will come with a 90cm Miele oven, which is priced at a cool $15,730.
'Apart from the key essentials which are cooker hoods, hobs and ovens, many property developers have further embraced lifestyle components such as Miele wine cellars, coffee makers, steam ovens and plate warmers for their luxury developments,' said Miele projects general manager Roland Ong.
And reflecting the growing trend of using branded appliances, even mass-market projects such as Trevista in Toa Payoh and The Peak @ Balmeg in West Coast are creating a splash in their bathrooms with Hansgrohe fittings.
'Not only in the prime areas - in other districts also, more developers are using branded goods,' Knight Frank executive director (residential) Peter Ow observed.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak estimates that 6-8 per cent of the cost of building a high-end apartment goes to appliances and furnishings such as dryers and cooker hoods. For mass-market condominium units, the figure is about 5-6 per cent.
Chesterton Suntec's Mr Tan believes that the money is well spent for prime projects which compete less on pricing. The appliances 'add considerably to the overall show apartment experience' and with them, 'developers are able to go some way to justify the higher prices'.
In fact, market watchers reckon that developers could have received discounts from buying the appliances in bulk. This would lower the cost of including them in units.
But the strategy may not be as effective for mass-market projects which tend to draw more price-sensitive buyers. A civil servant who declined to be named told BT that she recently bought a resale condominium unit because it cost less than a newly launched one. The place did not come with fancy appliances but she later installed one - a Hansgrohe shower.
Home seekers in this market may also place less emphasis on brands and developers need to know their target markets well, Mr Tan said.
Source
Wednesday, October 28, 2009
Successfully sell your business to the right buyer
f you plan on selling your business, it will help you to understand the different types of buyer. Each buyer who inquires will have their own unique reason to want to buy. By talking with the buyer, understanding their needs and then placing them in one of the categories below, will help you understand what they are looking for so you are better prepared to discuss and negotiate the transaction.
Individual Buyer
This is generally one person with good financial resources and background or experience for managing and leading a particular business in a particular industry. This type of buyer is usually looking for a particular business that is financially healthy. They are looking for a return on their investment and some flexibility in lifestyle choices. They also believe they can buy and at least maintain the current performance of the business or take it to a higher level.
Corporate Executive
This is a buyer who has many years of service with a large corporation and has concerns that downsizing may occur. In some cases, they are getting older and have their retirement money tucked away and would like to see what it would be like to run their own business. Franchise businesses are particularly attractive to them as they like the structure and organization that comes from working in this business model.
Existing Employee
The buyer of a business can be an existing employee. If the business has a strong cash flow and the employee is able to put together a small down payment with the seller carrying back some of the financing, this can be a mutually beneficial arrangement. SBA financing may be an option here—especially if the employee has management expertise.
Investment Buyer or Financial Buyer
All buyers want a return on their investment. However, with investment or financial buyers this is their primary motivation. Their ability to get financing on as large part of the purchase price as possible is also motivating. They have less interest in the type of industry and many of the specifics of the business operation.
Synergistic Buyer
This is usually a company and their purpose of buying the business is their belief that joining the two companies will produce more, or be worth more, together than if the two companies were to remain separate.
Industry Buyer
This type of buyer is often a competitor or owns a very similar operation. They know the industry well and therefore see little value in paying for the expertise and skill of the seller.
Strategic Buyer
Like the synergistic buyer, the strategic buyer is usually a business owner with a goal to expand their current company. They leverage their expertise to enter into new markets by acquiring market share and then increase market share through the acquisition. Their strategy can also include deploying a new technology and/or eliminating a competitor or some competitive element.
Source
Individual Buyer
This is generally one person with good financial resources and background or experience for managing and leading a particular business in a particular industry. This type of buyer is usually looking for a particular business that is financially healthy. They are looking for a return on their investment and some flexibility in lifestyle choices. They also believe they can buy and at least maintain the current performance of the business or take it to a higher level.
Corporate Executive
This is a buyer who has many years of service with a large corporation and has concerns that downsizing may occur. In some cases, they are getting older and have their retirement money tucked away and would like to see what it would be like to run their own business. Franchise businesses are particularly attractive to them as they like the structure and organization that comes from working in this business model.
Existing Employee
The buyer of a business can be an existing employee. If the business has a strong cash flow and the employee is able to put together a small down payment with the seller carrying back some of the financing, this can be a mutually beneficial arrangement. SBA financing may be an option here—especially if the employee has management expertise.
Investment Buyer or Financial Buyer
All buyers want a return on their investment. However, with investment or financial buyers this is their primary motivation. Their ability to get financing on as large part of the purchase price as possible is also motivating. They have less interest in the type of industry and many of the specifics of the business operation.
Synergistic Buyer
This is usually a company and their purpose of buying the business is their belief that joining the two companies will produce more, or be worth more, together than if the two companies were to remain separate.
Industry Buyer
This type of buyer is often a competitor or owns a very similar operation. They know the industry well and therefore see little value in paying for the expertise and skill of the seller.
Strategic Buyer
Like the synergistic buyer, the strategic buyer is usually a business owner with a goal to expand their current company. They leverage their expertise to enter into new markets by acquiring market share and then increase market share through the acquisition. Their strategy can also include deploying a new technology and/or eliminating a competitor or some competitive element.
Source
Thursday, October 15, 2009
Strategic Buyer
A manufacturing company in Noord-Brabant (west) is currently looking for a Strategic Buyer to be responsible for all sourcing and procurement activities for the Dutch production sites.
The Strategic Buyer will be part of the global procurement team and is responsible for the location the Netherlands. He/she reports directly to the Head of Strategic Procurement and Sourcing and works independently on sourcing strategies and procurement activities in the Netherlands.
The purchasing package includes direct and indirect material and the Strategic Buyer develops and implements sourcing strategic for all commodities in co-operation with his/her manager and other Buyers on site.
Depending on commodity he/she works with different departments of the company from engineering and facility management to marketing and material management.
The Strategic Buyer works project-driven as well as standardised and documents and reports all activities, results and bottlenecks to the strategic procurement organisation. His/her sourcing strategy needs to be in line with the global sourcing strategy set up by the global sourcing manager. He/she will therefore work closely with procurement managers and colleagues in different countries and areas to ensure that all activities are managed efficiently.
The right candidate for this role has a Master Degree and 5 – 10 years of professional procurement experience in which the following aspects have been learnt to a professional extent: sourcing, development of sourcing strategies, setting up and improving of procurement procedures as cost-saving programs, contracting. The candidate must have worked in a manufacturing environment gaining knowledge and experience in production processes. Knowledge of lean manufacturing, kanban, six sigma and/or MRP is preferred. Excellent communication skills in English and Dutch are required.
The Strategic Buyer will be part of the global procurement team and is responsible for the location the Netherlands. He/she reports directly to the Head of Strategic Procurement and Sourcing and works independently on sourcing strategies and procurement activities in the Netherlands.
The purchasing package includes direct and indirect material and the Strategic Buyer develops and implements sourcing strategic for all commodities in co-operation with his/her manager and other Buyers on site.
Depending on commodity he/she works with different departments of the company from engineering and facility management to marketing and material management.
The Strategic Buyer works project-driven as well as standardised and documents and reports all activities, results and bottlenecks to the strategic procurement organisation. His/her sourcing strategy needs to be in line with the global sourcing strategy set up by the global sourcing manager. He/she will therefore work closely with procurement managers and colleagues in different countries and areas to ensure that all activities are managed efficiently.
The right candidate for this role has a Master Degree and 5 – 10 years of professional procurement experience in which the following aspects have been learnt to a professional extent: sourcing, development of sourcing strategies, setting up and improving of procurement procedures as cost-saving programs, contracting. The candidate must have worked in a manufacturing environment gaining knowledge and experience in production processes. Knowledge of lean manufacturing, kanban, six sigma and/or MRP is preferred. Excellent communication skills in English and Dutch are required.
Monday, September 28, 2009
Covered calls: a strategy for the adventurous investor
At the risk of sounding like a conspiracy theorist, I firmly believe that most investors are intentionally kept in the dark about anything that breaks away from the "buy stocks and mutual funds" mantra that makes Wall Street money.
Most mutual fund managers can't see much further beyond Investing 101, and too many people in general are sceptical of options altogether. The problem is that they have no idea what they're missing.
The options market was created for professionals, institutional money managers, and those who report to their wealthy, sophisticated constituents instead of the general public. But that doesn't mean that the average Joe and Jane can't use it too. They just need to get a few pieces of inside information first.
When George Soros took down the Bank of England to the tune of billions of pounds, he did it by using the leverage that options provided him. Basically, he saw a trend and figured out how to exploit it legally and with a surprisingly small amount of risk.
Sure, if it went against him, he would have lost out big time, but not nearly as much as someone who played the game the usual way. You see, the key to trading options is knowing how to use them to maximize the efficiency of your money. And the first and easiest strategy for doing that is the covered call trade...
Source
Most mutual fund managers can't see much further beyond Investing 101, and too many people in general are sceptical of options altogether. The problem is that they have no idea what they're missing.
The options market was created for professionals, institutional money managers, and those who report to their wealthy, sophisticated constituents instead of the general public. But that doesn't mean that the average Joe and Jane can't use it too. They just need to get a few pieces of inside information first.
When George Soros took down the Bank of England to the tune of billions of pounds, he did it by using the leverage that options provided him. Basically, he saw a trend and figured out how to exploit it legally and with a surprisingly small amount of risk.
Sure, if it went against him, he would have lost out big time, but not nearly as much as someone who played the game the usual way. You see, the key to trading options is knowing how to use them to maximize the efficiency of your money. And the first and easiest strategy for doing that is the covered call trade...
Source
Tuesday, September 15, 2009
A Strategy You Should Consider
With the explosion of option use in recent years, you may be asking yourself “what are options, and why would anyone consider using them?”
Options represent the right (but not the obligation) to take some sort of action by a predetermined date. That right is the buying or selling of shares of the underlying stock.
There are two types of options, calls and puts. And there are two sides to every option transaction -- the party buying the option, and the party selling (also called writing) the option. Each side comes with its own risk/reward profile and may be entered into for different strategic reasons.
What's a call option?
A call is the option to buy the underlying stock at a predetermined price (the strike price) by a predetermined date (the expiry). The buyer of a call has the right to buy shares at the strike price until expiry. If the call buyer decides to buy – also known as exercising the option -- the call writer is obliged to sell his/her shares to the call buyer at the strike price.
Options represent the right (but not the obligation) to take some sort of action by a predetermined date. That right is the buying or selling of shares of the underlying stock.
There are two types of options, calls and puts. And there are two sides to every option transaction -- the party buying the option, and the party selling (also called writing) the option. Each side comes with its own risk/reward profile and may be entered into for different strategic reasons.
What's a call option?
A call is the option to buy the underlying stock at a predetermined price (the strike price) by a predetermined date (the expiry). The buyer of a call has the right to buy shares at the strike price until expiry. If the call buyer decides to buy – also known as exercising the option -- the call writer is obliged to sell his/her shares to the call buyer at the strike price.
Friday, August 28, 2009
Homebuilder's survival strategy - stimulus
NEW YORK (CNN) -- Certified Public Accountant Tom Critelli has never regretted the day 18 years ago when he gave up a secure accounting job to become a homebuilder. But he's thought about it recently as the housing market has continued to sink.
"I've always said to my wife we can go back to doing that," reflected Critelli, President of New Jersey-based Danitom Development Inc.
Before retreating to number crunching, which he concedes was "boring," Critelli is making every effort to remain in business, even as competitors are folding.
He's slashed his staff, now employing only two full-time workers, down from a dozen; he's sold off the majority of plots on which he had planned to build, enabling him to pay off millions in bank debt; and, he's broken ground on only three homes this year compared to more than 50 just a few short years ago. It still hasn't been enough.
"We're struggling. There's only so long you can stay on," said Critelli.
So, the accountant-turned-homebuilder is now looking to Uncle Sam, not for a bailout, but for a piece of the economic stimulus pie. In partnership with contractors who have experience working for the government, Critelli is bidding to repair military recruiting centers and facilities at New Jersey's Fort Dix.
"We're trying to not put all our eggs in one basket anymore," said Critelli. "I'm hoping a government contract can save the business, to keep going for the next year or two, till we get out of the housing crisis."
Though not as severe as the Sun Belt's decline, New Jersey's housing market has suffered. State building permits for the first five months of the year were down 65% from the comparable time frame in 2005, a record year, according to the U.S. Census Bureau and the New Jersey Homebuilders Association.
"It's been a crash and most people will tell you it's been a depression," Critelli said.
Source
"I've always said to my wife we can go back to doing that," reflected Critelli, President of New Jersey-based Danitom Development Inc.
Before retreating to number crunching, which he concedes was "boring," Critelli is making every effort to remain in business, even as competitors are folding.
He's slashed his staff, now employing only two full-time workers, down from a dozen; he's sold off the majority of plots on which he had planned to build, enabling him to pay off millions in bank debt; and, he's broken ground on only three homes this year compared to more than 50 just a few short years ago. It still hasn't been enough.
"We're struggling. There's only so long you can stay on," said Critelli.
So, the accountant-turned-homebuilder is now looking to Uncle Sam, not for a bailout, but for a piece of the economic stimulus pie. In partnership with contractors who have experience working for the government, Critelli is bidding to repair military recruiting centers and facilities at New Jersey's Fort Dix.
"We're trying to not put all our eggs in one basket anymore," said Critelli. "I'm hoping a government contract can save the business, to keep going for the next year or two, till we get out of the housing crisis."
Though not as severe as the Sun Belt's decline, New Jersey's housing market has suffered. State building permits for the first five months of the year were down 65% from the comparable time frame in 2005, a record year, according to the U.S. Census Bureau and the New Jersey Homebuilders Association.
"It's been a crash and most people will tell you it's been a depression," Critelli said.
Source
Subscribe to:
Comments (Atom)