Category: World Worthy News

Iraq, August 28, 2014
Gas Oil Law
Nouri al-Maliki and the Islamic Dawa Party took office in Iraq eight years ago. Oil revenues topped $41 billion in 2007 and rose to nearly $86 billion in 2013. Oil production ranged between 2 million barrels per day at the beginning of that period to nearly 3 million barrels at its end.
Maliki’s government made an important decision to call on international oil companies to invest in Iraq to increase [oil] field productivity. Despite the need for modern technology and management, these two factors were not the main reasons behind the decision. Instead, it was the government’s urgent need for additional funds, given the global financial crisis and the declining oil prices at the end of the last decade.
Maliki’s rule will be known as the “post-Mosul ravage” in Iraq’s history. He ended his term by failing to repel the “neo-Nazi” invasion of Mosul and the Ninevah province, where mass murders are being committed against Christians and Yazidis. Militias have displaced the region’s peaceful population and confiscated their homes after painting on them a letter identifying their religion, just as the Nazis did to European Jews during World War II.
Maliki’s rule has ended and the Iraqis still remember what they learned in history books about the Mongol invasion of Baghdad — the burning of libraries and bloodshed, the capturing and selling of women in the slave markets, just as the Islamic State (IS) did in Mosul. History will not forget that the Iraqi army did not defend Mosul’s population, nor will it forget the rampant corruption, as the robbery and loss of billions of dollars has become normal.Maliki has threatened the Iraqi people with opening “the gates of hell” if he is removed from power. It is as if this post is reserved for him and his heirs eternally. Since oil is the mainstay of the Iraqi economy, the first thing that comes to mind is the absence of an oil and gas law in Iraq since 2003, which is normal in light of political differences and the absence of a new social contract. Is Iraq a federal state as stipulated in the constitution or a centralized state? Is there any political will for real coexistence — with middle-ground solutions and understandings that take into account the views of other parties in the state — or is there a tendency for some, especially the Kurds, towards independence from Iraq?

The Iraqi people have not given their final answers to these questions, despite the 2005 constitutional referendum. The Iraqi oil industry has suffered from the absence of a social contract between political leaders. Although oil revenues reached $10 billion a year, it is not enough to build a stable modern state in the absence of an understanding among officials on whether the state is centralized or federal. With no clear contract, oil officials will not be able to rationally manage their sector without this understanding between politicians and their parties.
In fact, the disputes that have prevailed over the country’s politics for the past years — adding Iraq to the group of failed states — resulted from delays caused by a fruitless political polemic. The debate has prevented the parliament, since 2007, from passing the oil and gas law, which attempted to resolve the distribution of privileges and responsibilities of the sector between the federal Ministry of Oil in Baghdad and the authorities in the provinces and regions. The dispute over oil also resulted in the possible division of the country, the exploitation of its weaknesses and its invasion by terrorists.
The draft law is clear. It confirmed that the ownership of oil and gas was for the whole Iraqi people in all regions and provinces.
It also suggested forming a federal council for oil and gas that included officials from the federal government and the provinces and regions, and made the necessary state-level, oil-related decisions through coordination and negotiations between the federal oil ministry and the provinces.
In many of its provisions, the draft reiterates tasking federal authorities with the planning and implementation of oil production in the country, on condition of negotiating and coordinating with the different sides. Such responsibility imposes the presence of a responsible and open government that negotiates with the parties and transfers to them the allocated funds on time, without monopolizing them in Baghdad.
This also means that the parties should specify exactly what they want from Iraq. Do they want to exploit Iraq’s natural wealth, then leave? If this threat resurfaces every time the dispute escalates between Baghdad and Erbil, it will be hard to develop the Iraqi oil industry and stop threats from reaching other regions. Conflicts and perhaps international tribunals would be the only alternatives in such a case.
Iraq must learn from two experiences. The first is the experience of the Council for Reconstruction in the 1950s. At that time, oil revenue was allocated to well-studied reconstruction and infrastructure projects instead of salaries of employees and pensions. Furthermore, [oil revenue] failed to provide electricity and water for citizens, as is currently the case.
Second, Iraq is a country that is almost closed geographically and needs a foreign policy that shields it from wars and conflicts with neighboring regions. The country cannot bear the burden of halting its oil exports for long.
It is understandable that disputes regarding the oil law happen, given the conflicts of interest. However, it is inexcusable to keep inviting global oil companies and increasing production in the absence of this law. This means that Iraq will face many problems in the foreseeable future, whether internally, like the division of the country, or legally due to disputes with the oil companies. The absence of the oil law is as serious as the dissolution of the Iraqi army. They are both pillars of the country, albeit each with a different role.
If the Iraqi governments keep bickering over the same issues and following the policies that have been around since 2003, the only solution would be to change the regime rather than these policies. The doors of hell might then break loose, and this is what Maliki has always feared.
JP’s Investment Round Table –
HCL Oil and Gas Law.
#Bluewaters2u  #HCLOilandGasLaw #JP’sInvestmentRoundTable #Iraq #BaghdadandErbil

The SEO Audit

Do you want more traffic to your site?

Is your site search engine friendly?

Are you providing a good experience for your customers?

SEO Bullseye



Duplicate Title Tags

Unique, descriptive page titles increase the likelihood that search engines will direct users in your target audience to your website. The Alexa Site Audit gives you a detailed listing of duplicate titles used on multiple unique pages to help users locate pages on your site.

Missing Title Tags

Most search engines display the page title in search results, and if your page is missing a title you could be losing an opportunity to drive traffic to your site. The Alexa Site Audit gives you a comprehensive list of pages on your site that are missing a title.

Long Title Tags

When search engines display your page title, they will often truncate titles that are too long. The Alexa Site Audit identifies all pages on your site with titles that are too long.

Multiple Title Tags

Each page on your site needs a unique title that describes the content on the page, but sometimes it is easy to have more than one title on a page. The Alexa Site Audit checks this for you, and will give you a list of pages with multiple titles.


Reachability is a measure of how many links a crawler must follow to locate pages on your site. Our analysis of your site provides you with a list of hard-to-reach pages to help you quickly identify obscured content.


Redirecting too many of the pages on your site to other pages wastes crawler resources and may result in a smaller number of pages being crawled. Our analysis can determine whether or not you are using redirects effectively.

Anchor Text

Effective anchor text concisely describes the destination page. The Alexa Site Audit provides a comprehensive list of links found on various pages of your site.

Broken Links

A broken link undermines the user experience, wastes search engine crawler resources, and can affect your placement in search engines. With the Alexa Site Audit, you can find all the broken links on your site and quickly make changes.

Dead End Pages

Pages without any links are not good for your visitors. We can show you which pages on your site are dead ends to help you improve the user experience.

Page Not Found

A good ‘404’ or ‘Page Not Found’ error page does more than simply report the error. Our analysis of your site can tell you whether or not you have created a proper ‘Page Not Found’ error page.

Long URLs

Most search engines display URLs in search results. If an URL is too long, people doing searches will see a truncated version and you might miss an opportunity to get them to click.

Duplicate Content

Reusing text and images on your site? This can have more of a negative effect than you know. Find out how the duplicate content on your site affects your search engine rank.

Duplicate Meta Descriptions

Meta descriptions, like page content, should be unique. We can help you find any duplicate meta descriptions across your entire site so that your pages get properly indexed.

Too Many Links

Links are good. Having too many links can potentially make the page more difficult to navigate, and could create other SEO problems. Discover the pages on your site that have too many links.


 Server Errors

Server errors indicate major problems with the content of your site. The Alexa Site Audit checks for server errors on your site and provides a comprehensive list of pages that are giving server errors.


A misconfigured robots.txt file can inadvertently block crawlers from valuable content. The Alexa Site Audit can check to see if your robots.txt file is configured correctly, and provides recommendations if it is not.

Session IDs

Sites that use session ID parameters as part of their URLs may receive a lower ranking in search results. Find out which pages on your site use these with the Alexa Site Audit.

Search Engine Marketing (SEM)

Build upon your existing SEM efforts with our keyword recommendations, tailored to your site. Using our vast database of search analytics, we can help you find the more cost-effective and relevant keywords to use for advertising.

On-Site Links

We also analyze the link structure of your site to determine which pages could benefit from more links from across your site.


Many websites allow for users to visit them through both and Most search engines treat these as separate hosts, so it is important to have one redirect to the other or you risk splitting your Page Rank across the two versions of your site.

Low Word Count

Pages with little or no text content often receive poor placement in search results. In the Alexa Site Audit, you can find a listing of pages containing little or no text content to help improve your placement in search results.

Image Descriptions

Using image descriptions can help search engines index the non-text content of your pages, and makes your site more accessible for the visually impaired. Discover the location of pages on your site that have images without description.

Sources: alexa site audit, Blue’s Research Team

The SEO Audit

#Justin Timberlake

JT has video banned from YouTube.



The following content has been identified by the YouTube community as being potentially offensive or inappropriate. Viewer discretion is advised.

Jul 4, 2013
Source: @Luo_T
Photo : Getty Images
Yesterday ( #JT ) Justin Timberlake unveiled his latest video, “Tunnel Vision”. But barely 24hrs after its debut, the video has been pulled from YouTube due to its raunchy content!
watch video here:
“Tunnel Vision” features several scenes of bare chested women and this is a direct violation of YouTube’s nudity policy.

Copyright : MTV Base
Sources: MTV
#Justin Timberlake. #TunnelVision, #Video Banned,
JUSTIN TIMBERLAKE VIDEO BAN! Tunnel Vision 07/06/1013

Digital marketing is gaining momentum in around the world. Brands, Ad Agencies and companies are taking digital more seriously than ever before. One of the biggest advantages that Digital Marketing brings to the table is Measurement. We all have heard the old adage: “I know half my marketing works, I just don’t know which half.”

Digital marketing solves that problem with analytics and reporting and helps us optimize our ad campaigns. Display ads, social media ads, email ads etc. all are measurable and the computers don’t make mathematical mistakes. We can find out which banners get the maximum CTR, which ads convert the best and what subject lines for the emails get the highest open rates.

Display ads, email marketing, social media marketing, PPC marketing and content marketing are the digital marketing methods which has caught the most attention of the companies who usually invested only in traditional marketing.



Old-School SEO Can Hurt You!

SEO is also gaining momentum but because of the recent algorithmic changes by Google, marketers are confused about the right approach to it.

By now, I guess many companies have realized that hiring an SEO agency to do old school SEO stuff like link building, article marketing and directory submissions can do more harm in the long term than good.

Now that there are so many digital marketing methods available to be exploited, the question arises – how to use all of these methods in such a way that each digital marketing method complements each other?

Investment in social media should help SEO, SEO should help content marketing, content should help in email marketing and in turn email should help in social media and SEO. The art of combining all the digital marketing methods into a single efficient system is called Integrated Digital Marketing.

Integrated Digital Marketing


Integrated digital marketing works in such a way that SEO, Email, Content and Social Media complement each other instead of trying to achieve the goal of increasing branding or sales on its own.

For example, it has been proved that Social Media advertising gives a poor ROI since the conversion rates are very low. But that happens only when marketers try to use social media ads to drive the sales directly.

But social media is best utilized when trying to build a following, spread the word about an idea or a brand and used as a listening tool instead of a sales machine.

The following diagram shows how each digital marketing method can complement each other and help build a tribe/following which helps in branding, lead generation, sales and getting feedback about the products and services of a company.



You can observe that content marketing is the central piece in integrated digital marketing. Content marketing helps build a brand online, build trust and authority in the marketplace.

Content Marketing is Crucial

When you publish good content, the search engines pick up quality signals through the user behavior. For example if a search result is clicked and a user spends a lot of time on the page without clicking the back button, then it is an obvious signal that the page is of good quality and also relevant to the search keyword.

Thus content marketing, or rather quality content marketing can help in SEO. In the above diagram, the orange lines mean signals and black ones means the traffic flow.

Social Media Marketing

Good content is also shared on social media. When new visitors come through the search engines and find the content very useful, they will be compelled to share it with their friends because by sharing something useful they gain credibility among their followers


Good quality content is a key to an effective social media strategy. Fortunately, the search engines also pickup social signals to determine the quality of a page. If a page is shared 100 times on Facebook, that information helps the search engines in ranking the page.

Off-Page and On Page SEO

SEO is not dead. But off-page optimization is dead. Because off-page signals have to be sent to the search engines through the user behavior and not the webmaster.

User behavior such as no social sharing and less time spent on the site is a signal that the web page is either of low quality or it is of low relevancy. You cannot off-page-optimize a website. There is no such thing as off page optimization now. There is only off page signals and a webmaster has nothing to do about it.

On-page optimization is the webmaster communicating to the search engines about the quality and relevancy of a website. On-page optimization has to be done properly because the search engines are robots and not humans.

The data has to be spoon fed to them so that they can understand what the site is about. This information combined with off-page signals can help them rank a website accordingly.

Email Marketing

Now let us see how to integrate email marketing into this mix. To do email marketing, you need subscribers first. And these subscribers should be opt-in subscribers who are giving you permission to send them messages.

High quality opt-in subscribers can be gained only from a content channel. This content channel can be your own or it can be someone else’s. (You can advertise in other’s content channel to gain subscribers). But having your own content channel can help reduce cost per lead acquisition drastically.

You basically pull in subscribers from search and social media using your content as the magnet. Search engines do not send traffic directly to landing pages with forms and such landing pages are also not shared on social media. But both channels will send traffic to content from which you can get email subscribers.

How it all Comes Together

When you publish fresh content, you can update your email subscribers with the new content you have published and those subscribers will share it on social media. This sends user behavior signals and social signals to the search engines and new visitors will come to your content channel via the search engines – which can help in increasing your social media followers and email subscribers as well!

I hope this post gave you a lot of ideas about how content marketing can be enhanced using social, search and email. I have been using this method to gain footprint in a lot of markets and I have also been consulting a lot of companies to follow the integrated marketing route to get the maximum out of digital marketing. Every time, I am just pleasantly surprised with the results. This is content marketing 2.0!

Web Design Solutions Unlimited is launching a new Product soon and Integrated digital marketing will be the forefront of this great new product..Less than 30 Days for this coming out product to hit our product line in July…jp

Sources: Shared great articles of Interest:, and Bluewaters2u Research Team.


How Integrated Digital Marketing Can Help Increase Your Traffic and Conversions

Panic exchange wall street

Traders gather at the post of specialist Patrick Murphy, right, on the floor of the New York Stock Exchange on Monday. Traders in the U.S. dumped stocks, bonds and commodities, prompted by signs of distress in China’s economy and worries about the end of the Federal Reserve bank’s easy money policies.

The Federal Reserve thinks the economy is improving, so much so that it has hinted it may throttle back a bit on easy money policies in place since the financial crisis. So why are the financial markets acting like the sky is falling?

Stock markets have been in turmoil since Fed chairman Ben Bernanke last week suggested that if the economy continues to perk up the central bank will remove a least some of the low interest rate punch bowls that banks and businesses have been drinking from for years. And while part of Monday’s stock drop could be blamed on worries about China’s economy, the world’s second largest, it came against a backdrop of fears about what the Fed may do later this year.

Stocks dropped again Monday, though the markets recovered some of their losses later in the day. The Dow Jones Industrial Average shed nearly 250 points before making up some of that lost ground, closing 140 points lower, nearly 1 percent down. The S&P 500 and the Nasdaq also finished off their lows. So far this month, the S&P has shed about 3.5 percent.

Several Fed officials spent the day trying to talk the financial markets off a ledge, and they partly succeeded. But investors remain jittery. They have have good reasons to be concerned. They hate uncertainty, and few people alive today have ever lived through an economic and financial cycle like this one. That’s because the financial panic of 2008 was deeper than any since the Great Depression. And the remedies applied by the Federal Reserve have never been tried on such a giant scale.

But causes of the gut-wrenching market plunge of the last week are pretty easy to spot. Here are the big ones:

Why are interest rates moving higher?

Soon after the collapse of Lehman Brothers in 2008, the flow of capital around the planet seized up as banks and investment firms feared lending to one another. No one knew which bank might be the next Lehman. The global credit machine completely froze.

To restart lending, the central banks around the world began pumping trillions of dollars into the financial system. Since then, the Fed has continued pumping $85 billion a month of surplus into the credit markets to keep rates low.

But at its regular policy meeting last week, central bankers said they’re getting ready to “taper off” that flow of cash. With less money sloshing around the system, the cost of borrowing will begin rising.

That means I’ll get a higher return on my savings account, right? What’s wrong with that?

Nothing, as long as the economy keeps humming along and employers keep creating new jobs. But the worry is that those higher rates could make consumers more reluctant to use their credit cards, or potential home buyers think twice about taking out a mortgage to buy a house.

The Fed, though, thinks the economy may be nearly ready to sustain those higher rates. Consumer confidence and spending have been gathering momentum – partly because house prices have begun recovering and the job market continues to improve, albeit slowly. And while stock prices have fallen nearly 5 percent in just the last four days trading days, prices are still 20 percent higher than they were a year ago. That extra stock market wealth has also helped fill in the $7 trillion crater in household wealth that was created by the twin collapses of the housing and financial markets five years ago.

Is the market going lower?

Yes, and then higher. But we have no idea when. Or how far. This is a website, not a psychic hotline.

If the folks at the Fed spooked the markets, can’t they calm them down again?

Yes and no. Fed Chairman Ben Bernanke has made it clear that as central bankers begin slowing the flow of the money fountain, they can always restore full pressure if the economy falters or the markets begin to tank. And the Fed hasn’t actually started to taper off the flow of money – they’re just telling the world they’re beginning to think about how and when to do so.

But while the Fed’s money machine is the biggest in the world, and the dollar is the closest thing to a global currency, the U.S. central bank isn’t the only game in town.

The latest market jitters have been heightened by a much more immediate – and severe – credit clampdown in China. On Friday, the People’s Bank of China (the country’s central bank) tried to cut off the financial oxygen of a loose network of speculators and informal lenders who have been inflating a bubble in stocks and real estate. In doing so, the People’s Bank let short term interest rates spike as high as 25 percent.

That sounds a lot like the kind of credit crunch that started this whole mess five years ago.

It certainly spooked investors around the world – that’s why stocks markets have fallen in unison over the last few week.

But there’s a big difference between the panic-induced collapse of Lehman Brothers and the People’s Bank- engineered Chinese credit crunch. China’s central bankers can restore the flow of credit with the click of a mouse (or two).

That makes the Chinese crunch more like the U.S. interest rate spike of the early 1980s, when then Fed chairman Paul Volcker all but strangled the U.S. bond market. Volcker’s move was designed to snap a decade of runaway inflation and reignite growth. It worked. Once inflation subsided, the Fed let rates fall, and the economy and stock market roared back to life.

China faces a very different set of problems, and the Chinese state-owned banking system is very different than the U.S. But the current credit crunch that is rippling through Asia could easily be reversed.

Chinese officials are betting that a short-term credit squeeze will throw enough cold water on the speculators and show banking lenders to prevent another bubble-bust cycle.

But there’s not a lot that Fed Chairman Bernanke and his Fed colleagues can do if the People’s Bank made the wrong bet.

Sources: John W. Schoen CNBC,  , Bluewaters2u Research Team

Blue’s Comments: 

Is the market going lower?

Yes, and then higher. But we have no idea when. Or how far. This is a website, not a psychic hotline…lol..Very True statement…Brace yourself for further downtrend here imo..We have talked about this Fed bailout to Wall street ending the ride here through the Bond route and now the ripple effects are here..maybe even tidal very wise here folks..Bluewaters2u/jp

Follow us and feel free to share this on Facebook with your Investment friends..

See more on this discussion: Jp’s Facebook Investment Round Table group

Stocks gone wild: Why are investors so panicked?

Juicing with JP.. Many friends have asked if I would share some of my Nutri Bullet recipes. One of my favorite morning recipes for the Nutri Bullet..from Jp’s place. Juicing Startup 2013-06-24

Click  pic to enlarge

What you will need to put your Healthy Juice together.

1. Hand full of Kale or Hand full of Baby Spinach and or both..

2. Half a cup to cup of Blueberries

3. 1 tablespoon of local honey

4. 1 Teaspoon of Fresh Ground Cinnamon.  (Note here: don’t use 1 year old and or older powder that is stashed in your pantry. Get some fresh cinnamon from the local store, powder is fine and shaving a cinnamon stick is great too)

5. 1/4 or half of apple

6. Slice of mango, nice chunk of Cantaloupe, half a banana or chunks of fresh Pineapple. (I use a little of all these most of the time)

6. 2 caps full of Beet Root Juice concentrated or if not concentrated use 1 cup of organic Beet juice.

7.  2 tablespoons of Spectrum Essentials Ground Flaxseed- Omega-3 & Super Fruits..    (12 Ounces Seeds , $0.33/serving )

8. 1 scoop of Amazing Grass Orac Green Super food (7.4 Ounces Powder, $0.90/serving )|top-_-alpha

9. Fill Nutri Bullet glass halfway with desired natural juice such as V8  V.Fusion Vegetable & Fruit Juice ( many types pick your favorites)  OJ, Cranberry/Blueberry juice, Welch’s Grape juice and so on. Brand name “Naked Juice” all natural Pepsi Juices are awesome here.. They have Kiwi, Carrot and many other awesome juices and you don’t need much to fill the glass half way prior to purging the mix. Juicing befor purging 2013-06-24

Product just before purging in your juicer.

Be sure to shake mix between purging your juice mixture to help breakup the Super Green Powder and Flax Seed.. Juice blended 2013-06-24

Your Juice after purging.

By the way the Beet root juice is an excellent choice for lowering Blood pressure! #1 juice for lowering Blood Pressure according to Dr Oz and many other clinically backed facts reports. Note here: purge your mix and shake it a few times and purge it again when using the powers and flaxseed.. Enjoy and Happy Health…jp Juice Final Product 2013-06-24

Enjoy your Healthy Juice to start your day!

Special note here: I am not selling or affiliate for reseller on any of these products. Just a Juicer from Florida…jp Start a small Garden in your backyard for fresh veggies and fruits to add to your juicing is one I started below. Garden 2013-06-24 My Garden, Tomatoes,Bell Peppers, Yellow Squash and Cucumbers for starters. Feel free to follow this new page and share/ like it to your facebook as well..thanks for checking Juicing with Jp

Sources:, Nutri Bullet and My Juicing recipe /pic experience. You should not use the information on this site for diagnosis or treatment of any health problem or for prescription of any medication or other treatment. You should consult with a healthcare professional before starting any diet, exercise or supplementation program, before taking any medication, or if you have or suspect you might have a health problem.

Juicing Startup 2013-06-24

Juicing with Jp… A Healthy Start for your Day!

Tip of the Day!
June 23rd

Google dropped the hammer on low-quality links.

Before Penguin, SEOs widely believed that bad links couldn’t hurt you, and redirecting entire domains with bad links wasn’t likely to have much of an effect.

If the Penguin update and developments of the past year have taught us anything, it’s this:

When you redirect a domain, its bad backlinks go with it.
Webmasters often roll up several older domains into a single website, not realizing that bad backlinks may harbor poison that sickens the entire effort. If you’ve been penalized or suffered from low-quality backlinks, it’s often easier and more effective to simply stop the redirect than to try and clean up individual links.

Check out Web Design Solutions Unlimited Website Checklist and

Website Q&A here.

Tip of the Day! Google dropped the hammer on low-quality links.

Gotta luv this new up-and-comer of syncing services, with its choice for unlimited peer-to-peer syncing and super-clear interface.
With Cubby, your stuff is shared across all your computers, tablets, and smartphones and always accessible at It’s everything in its everyplace.

Click here to review Free Cubby…jp

  • PROSBeautiful modern design. Extreme simplicity of setup and use. Peer-to-peer syncing removes storage limits. Syncs any folder on your drive, but also has a master sync folder. Easy sharing. Saves unlimited versions. Well-designed iOS and Android apps.
  • CONS     

No Web-based document editing. Past versions of files only available from Web interface. A top feature, DirectSync, is Pro only. Whole updated files transferred instead of just changed bits.

  • BOTTOM LINECubby is an up-and-comer of syncing services, with its choice for unlimited peer-to-peer syncing and super clear interface.

The highly regarded maker of remote-computer-control software, LogMeIn, claims that its new file-cloud-syncing and online storage offering, Cubby, attracted more beta testers than any product in the company’s history. And it’s no wonder: Cubby is a delight to use, and offers all the simplicity, apps, and features you could want in such a service. Of course, it didn’t hurt that the service was free with 5GB of online storage space. With the service’s exit from beta, the free 5GB offer remains, but paying $6.99 a month ups that limit to 100GB and adds collaboration and more management and security features.
Cubby – Cubbies
Each cubby gets a folder entry like this in the desktop interface. You can drag-and-drop any folder on your computer to create a cubby that syncs it. Note the gray one is not cloud synced, but rather Direct Synced to your other computers. You can’t add sub-cubbies, but if you add a subfolder to the folder the cubby represents, it will also be synced.


Click here to review Free Cubby…jp

Tip of the Day!
June 21, 2013
Lap Top shaking Hands Tip of the Day Web Design Solutions UnlimitedIs Your Business Share-Worthy?

Technology has made it easier than ever for your customers to share information about your business. Your packaging, services, emails, website and more can all be shared and reviewed instantly. Walk through every facet of your customer experience to ensure that if you go viral it’s for the right reasons.

Web Design Solutions Unlimited, LLC

Our company is founded on a strong principle of quality, affordability, professionalism & outstanding customer service. Our vision & mission is to become one of the largest web service providers world wide. And to deliver high-quality products at very competitive prices while providing first-clas…

Page: 373 like this
Green Circle Tip od the Day Web Design Solutions Unlimited
Tip of Day! Web Design Solutions Unlimited.

10 companies buying their own stock.

Already this year, U.S. companies have announced plans to snap up more than $210 million worth of their own shares, which usually means higher stock prices. Here are the 10 biggest buybacks so far.


Stock traders look at monitors displaying financial information. (© Joshua Hodge Photography/E+/Getty Images)

Driving prices higher

The stock market has been churning higher for a lot of reasons — including the large number of investors who spent years waiting on the sidelines, now trickling back in with every tick higher.

But here’s a reason for the rally that hasn’t been talked about quite so much: Companies are buying back tons of their own stock.

Through May 1, U.S. companies announced a massive $210.6 billion worth of stock buybacks — a level we haven’t seen in the past decade, according to Thomson Reuters. That’s 93% higher than the average for the prior 10 years.

Companies are buying back so much stock because they think their shares are underpriced. They’re also simply awash in cash after hunkering down during the financial crisis. Some, like Apple (AAPL), are under pressure from shareholders to unleash their reserves. Others, including PepsiCo (PEP), are mature companies that don’t have many other ways to use the tons of cash they spin off.

Whatever the reasons, U.S. companies have $1.7 trillion worth of cash. So you can expect the big buybacks to keep marching on.

What’s in it for you? Two key takeaways:

  1. These massive planned buybacks should nudge stocks and the market higher, barring scary disasters. That’s because of the sheer buying demand from companies.
  2. You can do well buying the shares of buyback leaders, as long as the stocks aren’t overpriced, says a study by Merrill Lynch. Besides the buying pressure from buybacks, this is because of some simple math. With fewer shares on the market, a company is worth more per share.

Here’s a look at the 10 biggest buyback announcements through the end of May 1, and some thoughts on whether you should join these companies and buy their shares.

A man talks on his cell phone as customers walk through an Apple store. (© Lucas Jackson/Newscom/Reuters)



2013 announced buyback: $50 billion

Apple (AAPL) is a case study in the power of the buyback. Its shares were in a grindingly painful decline from above $700 last September through mid-April, when the stock pierced $400. Then on April 23, the company upped its recent buyback plan by a massive $50 billion, to a total of $60 billion. It also hiked its dividend to $3.05 a share. The stock hasn’t looked back since. It traded recently at $450.

“The buyback and increased dividend have really brought a new investor base into the stock,” says David Heupel, a stock analyst with Thrivent Financial for Lutherans. That would be income investors — those who shop for dividends and buybacks.

Will that be enough to restore Apple stock to its glory days when it traded above $700? Probably not. One problem is that Apple products have lost a bit of their luster, so Apple has lost its pricing power. The average price of iPhones and iPads slipped 4% in the first quarter, as consumers bought competing products and Apple expanded in emerging markets. Above all, though, a read of Walter Isaacson’s biography “Steve Jobs” reveals just how much Apple was a personality-driven company. And, sadly, that personality is gone forever.

We won’t really know Apple’s fate until we see new products, and that won’t happen for another six months, says Mike Sorrentino, chief strategist at Global Financial Private Capital, a value shop. “Apple is probably range-bound for the time being,” he says. Sorrentino thinks the downside risk is limited, because Apple has a “war chest” of cash to defend its stock with buybacks. But upside? Possibly limited, too

Customers walk towards a Home Depot store in Washington, D.C. © Andrew Harrer/Bloomberg via Getty Images

Home Depot

2013 announced buyback: $17 billion

Buying the shares of companies with the biggest buyback plans — the top fifth — beat the market by 1.3 percentage points in annualized returns for 1986-2012. But that outperformance goes up to 3.5 percentage points if you focus on buyback companies with cheap shares. This strategy produced 13.3% annualized return versus 9.8% for the market, according to a study by Merrill Lynch.

This little piece of wisdom is all you need to know to be wary of Home Depot (HD) as a potential buy because of its huge buyback plan. Home Depot’s stock trades for 21 times estimated 2013 earnings, compared to 14.7 for the S&P 500 ($INX), says John Kozey, a senior analyst at Thomson Reuters. (Stock price times earnings, or the price/earnings ratio, is a common measure used to gauge if a stock is overpriced or underpriced.)

“I would not want to own Home Depot because I would not want them paying 21 times earnings for a company,” says Patrick Kaser, a portfolio manager at Brandywine Global, meaning its own shares. “I’d rather have them give me the cash, so I can buy a company at 11 times earnings,” he says, referring to cheaper stocks available in discounted areas such as large-cap tech, energy and banks. Home Depot should probably be raising its dividend instead of buying back stock.

A Merck scientist at the company's Pennsylvania lab earlier this year. © Matt Rourke/AP Photo


2013 announced buyback: $17 billion

If Home Depot isn’t attractive based on its buyback plan because its shares are too expensive, then what buyback giant looks a lot better because its shares are cheap? That would be Merck (MRK).

Merck stock fell under $46 recently, from above $48.50, on soft earnings news and weak guidance. It now trades at a 32% discount to its peers, according to Thomson Reuters, using its trailing price-earnings ratio, another common measure of a stock’s relative value.

One of Merck’s biggest challenges is that its blockbuster asthma drug, Singulair, started facing competition from generic versions last summer. It sorely needs some new hits, but its pipeline has not produced. Merck has been cutting costs in response, and it just brought in a new head of research, Roger Perlmutter.

The pharma giant does have strengths in vaccines, animal health and consumer products. Combined with a massive buyback plan, these positives make its stock look attractive in the pullback, believes Heupel, at Thrivent Financial for Lutherans.

BingWhat’s in the Merck pipeline?

A General Electric logo hangs above the entrance to a GE news conference in New York in 2009. © Daniel Acker/Bloomberg via Getty Images

General Electric

2013 announced buyback: $10 billion

Back in February, General Electric (GE) announced a huge, $10 billion buyback plan for 2013. “This tells us they are feeling more confident,” says David Fried, editor of The Buyback Letter.

It also tells us that it has tons of cash and that it’s tough to find uses for it, since the company already pays a 3.4% dividend yield and there aren’t enough potential acquisitions around. Where is all this cash coming from?

In February, GE sold its remaining stake in NBC Universal to Comcast (CMCSA) for $16.7 billion. That brought in $12 billion (the rest is made up of loans to Comcast). Just before that deal, GE had reported $15.6 billion in cash on hand.

The other source of cash is GE Capital, which does leasing and commercial, consumer and real-estate lending. GE is deliberately shrinking this business. This frees up cash that GE is redeploying to shrink its share count, to offset the hit to earnings from a shrinking GE Capital, says Kaser at Brandywine Global.

GE is struggling with weakness in Europe. But the company is solid in its core businesses, such as energy equipment, and the stock looks cheap. Plus a director bought $218,000 worth of stock at $21.80 in late April. Any time both a company’s board and an insider sees value in a stock, I’ll take that as a good sign.

Bottles of Pepsi cola drinks on display. © Mike Segar/Newscom/Reuters


2013 announced buyback: $10 billion

When a company controls 40% of the planet’s salty snack market and boasts powerful brands such as Pepsi, Gatorade, Tropicana, Lay’s and Doritos, it’s bound to throw off lots of cash. And that’s what we see at PepsiCo (PEP).

But a company this big also has some natural limits on just how fast it can grow. As this puts a lid on internal investment opportunities, what’s a company to do with all its cash? PepsiCo already pays a 2.7% dividend yield. So one obvious answer: Give the cash back to shareholders.

The problem, though, is that PepsiCo stock has been on fire this year, advancing 23% to all-time highs of $84.32. The stock has retreated slightly, but at just under $83, it still trades for a fairly rich valuation of 17.3 times 2014 earnings, which is about 20% above its historical average and 10% over the $75 fair value estimate for the stock by Thomas Mullarkey, at Morningstar. Buybacks at rich valuations aren’t a great deal for shareholders.

There’s a decent chance PepsiCo might use some of its financial clout to buy Mondelēz International(MDLZ), the snack food company housing popular brands such as Oreo, Nabisco and Cadbury, Mullarkey says. But a Mondelēz purchase or no, PepsiCo stock seem pretty pricey, especially for a major buyback. I’d wait for a pullback, despite the huge buyback plans.

Fred Harster drives a UPS truck on Park Avenue in New York in 2009. © Daniel Acker/Bloomberg via Getty Images

United Parcel Service

2013 announced buyback: $10 billion

United Parcel Service (UPS) is the biggest shipping company in the world, delivering more than 16 million packages each weekday on average. As such a huge transport company, UPS offers a great read on the economy, so I’ll take it as a bullish signal for the economy that UPS has such a big buyback plan in place.

Like PepsiCo, United Parcel Service stock has been on a tear of late. It’s up 19% since it started its most recent leg up in early December, to trade recently at $86.

But this doesn’t necessarily negate the buyback here, because the valuation on UPS is not so rich. UPS trades for 15 times 2014 earnings, or just above the market multiple. Yet UPS has a much bigger protective moat than most companies in the stock market. That’s because it would be tough to replicate its global shipping network, brand and solid reputation among customers.

The bottom line: A pullback in UPS stock would not be surprising, given the recent strength. But the company’s moat, its plans for international expansion and its huge buyback suggest decent gains from here.

People walk past an American Express logo. © Steven Senne/AP Photo

American Express

2013 announced buyback: $9.9 billion

Unlike capital-intensive businesses such as steel or autos, a credit card company doesn’t require huge amounts of cash. Plus bad debt is relatively low at American Express (AXP), given the affluent nature of its cardholder base. This lowers the need for reserves, so it makes a lot of sense for this very profitable company to return cash to shareholders.

American Express shrank its shares outstanding by 5.3% last year, says Fried of the Buyback Letter. It could shrink its share count again this year, given the huge size of its announced buyback. This boosts earnings per share, since it spreads out earnings over fewer shares. It also reduces the amount of cash the company needs to fund its dividend.

Plus, regulators would rather see American Express return cash via buybacks as opposed to big dividend hikes, since it’s easier to dial back share repurchases to preserve cash if hard times hit. (Investors can punish companies that cut dividends.) Trading at just 13.3 times expected earnings for the next 12 months, American Express shares are priced 5% below their five-year average. The stock is not dirt cheap, but it’s not too rich for buybacks.

Stacks of lumber frame the store's logo at a Lowe's store in Quincy, Mass. © Brian Snyder/Newscom/Reuters


2013 announced buyback: $5 billion

After a decade of rapid expansion, Lowe’s (LOW) is cutting back on new store openings. It also already has poured a lot of money into setting up 14 automated regional distribution centers. Lowe’s still needs to spend on improving its supply chain, but with much of that spending out of the way, and Lowe’s dialing back store growth, it’s producing lots of cash with nowhere to spend it.

So buybacks make sense, and a lot more sense than at rival Home Depot, because Lowe’s stock is cheaper. It trades for 15.7 times 2014 earnings, compared with 21 at Home Depot. Last year, Lowe’s shrank its share base by 9.2%, says Fried, at the Buyback Letter, which is good for shareholders. Expect more of the same this year.

Lowe’s still has room to grow, even though it has slowed store growth. The reason: Home improvement is still a highly fragmented sector, and Lowe’s can still take plenty of business from smaller stores and lumberyards.

3M Post-it notes are displayed at an Office Depot in Mountain View, Calif. © Paul Sakuma/AP Photo


Announced buyback: $7.5 billion

By fostering a culture of innovation and judiciously plowing money into research year in year out, 3M (MMM) has invented some of the most memorable — and profitable — products ever, such as Scotch tape and Post-it Notes.

In short, innovation is 3M’s wheelhouse, so it’s no surprise the company announced at an analyst day last November that it wants to increase research and development spending to 6% of sales by 2017 from the current mid-5% level. 3M also says it wants to spend $1 billion to $2 billion a year on acquisitions.

Those plans, plus outlays for dividends, still don’t sop up all the cash generated at a large, successful and mature company like 3M, which produces more than $5 billion a year in free cash flow. So the big buyback plans make sense.

At 15.7 times forward 12-month earnings, 3M trades 12% higher than its five-year average, according to Thomson Reuters. That’s not cheap, but it’s not outrageously expensive for buybacks. After all, this is a company with a wide protective moat around its business, the kind that Warren Buffett likes. And there will probably be pullbacks ahead when market turbulence hits, giving us a chance to buy 3M at an even better price.

The Qualcomm logo at a conference in Barcelona, Spain, in 2011. © Denis Doyle/Bloomberg via Getty Images


2013 announced buyback: $5 billion

Qualcomm (QCOM) stands out on the list of top 10 buyback giants so far this year because it’s the highest-growth company there. Sales advanced 24% in the most recent quarter, compared with 18% at Apple, the only other real growth company on the list.

As a key player in the code division multiple access (CDMA) technology and wireless chip sets used in smartphones, Qualcomm produces juicy margins, which net the company lots of cash. Qualcomm has net margins of 28.9%, compared with 13.1% for companies overall, according to Morningstar, and annual free cash flow of more than $5 billion.

Yet Qualcomm trades at a reasonable price. With a forward P/E of 13, it goes for a price earnings to growth ratio of 0.9. Anything under 1.5 at a high-growth company like this one looks like good value, according to a rule of thumb developed by investor great Peter Lynch.

“We like Qualcomm at these levels,” says Sorrentino of Global Financial Private Capital. Sorrentino also likes Qualcomm’s 2.2% dividend yield and the room to increase the dividend given the company’s financial strength. Besides the free cash flow, it has more than $13 billion in cash and little debt. The key takeaway: Buybacks make a lot of sense right now, and so does buying the stock.

Source:  Bing Money Micheal Brush, Bluewaters2u Research Team,

JP’s Investment Round Table as seen Facebook

Blue’s Comments: 

And think about this… I have been told that US companies have trillions of dollars they are sitting on… now think about that… even they are not willing to chance spending their own money on expansion or research / development… they feel the need to have cash on hand in case of a downturn… Well its coming, the downturn that is… Profits are down, unemployment is high… and the Fed. keeps printing money… they may even go a bit higher than the 85 billion per month… When this bubble bursts it will be heard around the world…

10 companies buying their own stock.

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