James Rickman - Seeking Alpha 'James Rickman' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/james-rickman On China's 8.9% GDP Growth http://seekingalpha.com/article/170497-on-china-s-8-9-gdp-growth?source=feed 170497 China Federation of Logistics and Purchasing reports October manufacturing (PMI – purchasing manager’s index) rose to 55.2, a full point increase over September 2009. Chinese manufacturing has risen for the eighth straight month, continuing signs that economic recovery in China is on stable ground.

Further, signs of a more robust expansion follow an already healthy economic recovery, with China reporting 8.9% GDP growth in the third quarter -- the highest rate for any major economy in the world. The China Gross Domestic Product is worth 4.326 Trillion dollars or 6.98% of the world economy, according to the World Bank.

]]> Mon, 02 Nov 2009 06:22:03 -0500 James Rickman James Rickman submits:

China Federation of Logistics and Purchasing reports October manufacturing (PMI – purchasing manager’s index) rose to 55.2, a full point increase over September 2009. Chinese manufacturing has risen for the eighth straight month, continuing signs that economic recovery in China is on stable ground.

Further, signs of a more robust expansion follow an already healthy economic recovery, with China reporting 8.9% GDP growth in the third quarter -- the highest rate for any major economy in the world. The China Gross Domestic Product is worth 4.326 Trillion dollars or 6.98% of the world economy, according to the World Bank.


Complete Story »]]> AEM HL NEM OSKFF.PK PD James Rickman China Signs $5.5 Billion Russian Trade Deals Including Energy and Mineral Plans http://seekingalpha.com/article/166191-china-signs-5-5-billion-russian-trade-deals-including-energy-and-mineral-plans?source=feed 166191 Russian Prime Minister Vladimir Putin is visiting Beijing on Oct. 12-14, at a time when the People’s Republic of China and Russia are celebrating the 60th anniversary of their diplomatic ties. Russian Prime Minister Vladimir Putin visits China starting Monday, with deals worth $5.5 billion expected to be signed during his visit. Putin will also attend a meeting in Beijing of the Shanghai Cooperation Organization (SCO), a grouping of central Asian states.

Trade between the two nations soared over 38% last year to $55.9 billion. China is Russia’s second largest trade partner after the European Union, and the two sides expect bilateral trade to increase to $60-80 billion by 2010.

]]> Tue, 13 Oct 2009 07:13:09 -0400 James Rickman James Rickman submits:

Russian Prime Minister Vladimir Putin is visiting Beijing on Oct. 12-14, at a time when the People’s Republic of China and Russia are celebrating the 60th anniversary of their diplomatic ties. Russian Prime Minister Vladimir Putin visits China starting Monday, with deals worth $5.5 billion expected to be signed during his visit. Putin will also attend a meeting in Beijing of the Shanghai Cooperation Organization (SCO), a grouping of central Asian states.

Trade between the two nations soared over 38% last year to $55.9 billion. China is Russia’s second largest trade partner after the European Union, and the two sides expect bilateral trade to increase to $60-80 billion by 2010.


Complete Story »]]> OGZPY.PK ZTCOF.PK James Rickman Global IT Cloud Computing: India vs. China http://seekingalpha.com/article/166176-global-it-cloud-computing-india-vs-china?source=feed 166176 Global IT (SaaS) outsourcing can be defined as a strategy that allows corporations to redesign, redefine, and reshape organizations by transferring the management and/or day-to-day execution of a business function to an external service provider. Used responsibly, new technologies such as mobile cloud computing and software as a service (SaaS) can generate enormous company benefits (35% cost savings) as organizations seek internal restructuring to increase earnings and overall efficiency. Worldwide there are two countries that stand at the forefront of the global outsourcing movement: India, which is considered the standard for outsourcing IT services, and China, which has a strong reputation in the outsourcing of manufacturing work.

India made the decision to focus on IT expertise early on; it also made developing competency in the English language a nationwide priority, thus increasing its competitive advantage in the global marketplace. India's economy has developed through the promotion of internal consumption rather than on exports.

]]> Tue, 13 Oct 2009 06:51:14 -0400 James Rickman James Rickman submits:

Global IT (SaaS) outsourcing can be defined as a strategy that allows corporations to redesign, redefine, and reshape organizations by transferring the management and/or day-to-day execution of a business function to an external service provider. Used responsibly, new technologies such as mobile cloud computing and software as a service (SaaS) can generate enormous company benefits (35% cost savings) as organizations seek internal restructuring to increase earnings and overall efficiency. Worldwide there are two countries that stand at the forefront of the global outsourcing movement: India, which is considered the standard for outsourcing IT services, and China, which has a strong reputation in the outsourcing of manufacturing work.

India made the decision to focus on IT expertise early on; it also made developing competency in the English language a nationwide priority, thus increasing its competitive advantage in the global marketplace. India's economy has developed through the promotion of internal consumption rather than on exports.


Complete Story »]]> CRM GE GOOG HPQ IBM INFY MSFT ORCL PTI SAY WIT James Rickman Wall Street Earnings Indicators Weigh Heavily http://seekingalpha.com/article/164791-wall-street-earnings-indicators-weigh-heavily?source=feed 164791 As Wall Street investors ponder their strategies, the key driving factor is revenue earnings. Some argue this third quarter will show growth with a slight bounce upwards in GDP. There are signs that companies may report better earnings compared to the bottoms of last quarter (Q2) in the next week ahead.

However, we cannot discount the effects of lagging U.S. sectors such as the automobile industry that suffered severe cash-for-clunkers stimulus hangovers as sales plummet with GM down 45%, Chrysler (FIATY.PK) down 42%, and Ford (F) down 5%. Sobering statistics still persist in many sectors demonstrating that consumers are unable to propel significant growth without artificial government stimulus.

]]> Mon, 05 Oct 2009 05:02:41 -0400 James Rickman James Rickman submits:

As Wall Street investors ponder their strategies, the key driving factor is revenue earnings. Some argue this third quarter will show growth with a slight bounce upwards in GDP. There are signs that companies may report better earnings compared to the bottoms of last quarter (Q2) in the next week ahead.

However, we cannot discount the effects of lagging U.S. sectors such as the automobile industry that suffered severe cash-for-clunkers stimulus hangovers as sales plummet with GM down 45%, Chrysler (FIATY.PK) down 42%, and Ford (F) down 5%. Sobering statistics still persist in many sectors demonstrating that consumers are unable to propel significant growth without artificial government stimulus.


Complete Story »]]> AA COST F FDO FIATY.PK INFY MAR MERX MON MSFT PEP YUM James Rickman Fed Exit Strategy: Can Stocks Survive the Bailout Party Hangover? http://seekingalpha.com/article/162416-fed-exit-strategy-can-stocks-survive-the-bailout-party-hangover?source=feed 162416 The Federal Reserve balance sheet has reached beyond $2 trillion during the crisis, requiring temporary liquidity programs and longer-term asset purchases.

As the U.S. economy claws its way towards recovery, we find ourselves in $9.7 trillion debt, stubbornly rising unemployment rates approaching 10%, stagnate home equity markets and increasing loan defaults accelerating bank failures.

]]> Mon, 21 Sep 2009 04:08:38 -0400 James Rickman James Rickman submits:

The Federal Reserve balance sheet has reached beyond $2 trillion during the crisis, requiring temporary liquidity programs and longer-term asset purchases.

As the U.S. economy claws its way towards recovery, we find ourselves in $9.7 trillion debt, stubbornly rising unemployment rates approaching 10%, stagnate home equity markets and increasing loan defaults accelerating bank failures.


Complete Story »]]> AIG AMR BAC BBT BK C CCF DAL DCX DPHIQ.PK F UAUA WFC James Rickman The Economic Impact of the G20 Ending Oil Subsidies http://seekingalpha.com/article/161966-the-economic-impact-of-the-g20-ending-oil-subsidies?source=feed 161966 The upcoming September 24-25, G20 summit led by the U.S. contingent will propose ending all fossil fuel subsidies within five years. Currently, the G20 nation governments combined spend over $335 Billion annually for all fossil fuel subsidies including oil, gas and coal worldwide. Additionally, it costs governments about $1 trillion annually in related healthcare, climate warming and environmental cleanup of natural disasters linked to fossil fuels, according to several reports including from the National Defense Council Foundation and RAND Center National Security Research Division, 2009.

By eliminating hidden government subsidy costs, it would raise the price of a gasoline to about $5.28 per gallon making the typical fill-up of the average mid size 16 gal tank vehicle cost over $84 per visit.

]]> Thu, 17 Sep 2009 06:42:16 -0400 James Rickman James Rickman submits:

The upcoming September 24-25, G20 summit led by the U.S. contingent will propose ending all fossil fuel subsidies within five years. Currently, the G20 nation governments combined spend over $335 Billion annually for all fossil fuel subsidies including oil, gas and coal worldwide. Additionally, it costs governments about $1 trillion annually in related healthcare, climate warming and environmental cleanup of natural disasters linked to fossil fuels, according to several reports including from the National Defense Council Foundation and RAND Center National Security Research Division, 2009.

By eliminating hidden government subsidy costs, it would raise the price of a gasoline to about $5.28 per gallon making the typical fill-up of the average mid size 16 gal tank vehicle cost over $84 per visit.


Complete Story »]]> AMD BA BP C CVX DAI DB MGM RDS.A SNE TOT XOM James Rickman Wall Street Prepares for Public Healthcare Reforms http://seekingalpha.com/article/161561-wall-street-prepares-for-public-healthcare-reforms?source=feed 161561 Ultimately, the unknown results of U.S. healthcare reforms is like shooting dice in Las Vegas as tax-payers and small companies that employ 62% of Americans wonder just how it will effect their wallets. Still most agree, with healthcare costs almost 17% of U.S. GDP, industry reform must happen particularly in light of the Obama administration’s unwavering political gamble that now must produce some measure of reform.

Monday, preparation for the coming reform is already underway on Wall Street with drugmaker Eli Lilly & Co. (LLY) announcing it will eliminate over 5,500 jobs and reorganize into five business units in an effort to slash costs and speed up development of potential new drugs. Lilly hopes to cut annual costs by $1 billion per year over the same time, and will organize itself into five units: cancer, diabetes, established markets, emerging markets, and Elanco, its animal health business. Key Lilly products like the anti-psychotic drug Zyprexa will lose patent protection starting in 2011.

Bristol-Myers Squibb Co. (BMY) announced the completion of the $2.4 billion acquisition of Medarex, Inc. The deal was funded by Bristol-Myers from available cash. Medarex is set to become a wholly-owned subsidiary of Bristol-Myers.
A growing number of deals now involve foreign companies such as Japanese pharmaceutical company Dainippon Sumitomo Pharma Co., Ltd. reporting that it signed a definitive agreement to buy U.S. pharmaceutical company Sepracor Inc. (SEPR). The deal has been valued at $23 per share or $2.6 billion. Recent, takeover rumors led to a 26.46% increase in Sepracor’s stock price shares.
The Sepracor acquisition is the latest in a series of deals conducted by Japanese companies that are looking to tap the U.S. pharmaceutical market including Eisai’s acquisition of MGI Pharma, Takeda’s acquisition of Millennium Pharma and Shionogi’s acquisition of Sciele. Finally, Daiichi-Sankyo acquired a stake in India’s Ranbaxy Labs.
The trend of foreign healthcare ventures continued with Amylin Pharmaceuticals, Inc. (AMLN) announcing an exclusive agreement with Indian biotech company Biocon Limited for the development, commercialization and manufacture of a novel peptide therapeutic for the potential treatment of diabetes.
On the political front, the Obama administration is preparing to pass its alleged cost-saving universal healthcare reform which promises to impose a new set of rules and restrictions on the industry’s players. Already, the U.S. pharmaceutical industry has been coerced into offering billions in cost reductions over the next ten years. They may also be forced to compete with generic imports, which would effectively put a cap on domestic drug prices. Obama also sketched out a vision for the plan to make it illegal for insurers to drop sick people or deny them coverage for pre-existing conditions, and every American would be required to carry health coverage similar to a driver’s license or auto insurance.
The U.S. Senate version would expand coverage by requiring individuals to get insurance and employers to contribute to the cost. In the House, the Democrat bill would cost between $1 trillion and $1.5 trillion over 10 years and raise taxes by $540 billion for couples earning more than $350,000 a year. Critics charge the plan is inefficient, creates unnecessary bureaucracy, and imposes mandates and tax hikes on small businesses to pay for it.
Despite all its risks and drawbacks, though, healthcare is still a very good business. Aside from helping people and saving lives (no small feat), there are notable benefits to being part of the industry as healthcare is a quintessential defensive sector. People still get sick during recessions and they will often continue paying for medicine and treatment even when they cut back on other things.
The number of people without insurance coverage rose from 45.7 million in 2007 to 46.3 million in 2008. Despite that increase, the percentage of uninsured in the population remained unchanged at 15.4 percent. But with growing unemployment, it’s likely that it jumped again this year. [Source: U.S. Census Bureau]
A new study in Health Affairs concludes that CMS‘ decision to stop paying for hospital-acquired conditions, such as infections and bedsores, will reduce program costs very little. Based on California data, the researchers estimated that Medicare would save less than $3 million per year. This is pretty amazing, considering that each year, about 1.7 million people catch infections in the hospital and that 99,000 of them die as a result. [Source: Wall Street Journal]
During the past year, hospital associations promised President Obama that their members would lower Medicare costs by $155 billion over 10 years to help fund healthcare reform. Now the 5,700 hospitals across the country are looking at how they will do that. Each of them will have to cut $2.6 million annually, on average. While this is going to be difficult for some-especially with half of the hospitals said to be losing money-hospital executives admit that their organizations are rife with inefficiency and waste. [Source: USA Today]
Convenient care clinics, which started out treating only minor acute problems, are starting to expand into chronic disease care. Walgreens’ Take Care (WAG) chain has begun offering asthma and osteoporosis treatment on a pilot basis in Tampa and Orlando. And at some of CVS’ Minute Clinics (CVS), nurse practitioners are offering teenagers advice on acne. While this is just the proverbial camel’s nose under the tent, and retail clinics have not expanded to the extent that was predicted, primary-care physicians will watch this development warily. [Source: Wall Street Journal]
Further, research shows the market for medical automation technology will grow from $13.1 billion this year to $23.2 billion in 2014. Medical automation technology includes therapeutic processes, diagnostics and monitoring, and logistics and training. Examples include patient monitoring kiosks, surgical robots, and automated lab testing and analysis. The therapy segment is currently the largest, with $9.5 billion in sales. The diagnostic and monitoring segment is currently worth $3.3 billion, and the logistic and training market, $272 million. Hospitals are the most important customers for medical automation technology. [Source: Healthcare Finance News]
The 2009 Healthcare Industry Study, released by the Milliken Institute found that 109 million Americans suffered from one or more of the most common, chronic diseases, including cancer, diabetes, heart disease, pulmonary conditions, mental disorders, stroke or hypertension. This means that more than one-third of all Americans have these conditions to one degree or another. The study estimated that one year's cost of treatment of these conditions at $277 billion, but estimated lost economic productivity to be vastly higher at $1 trillion. In other words, lost work and lost output due to these illnesses is reducing the nation's GDP by about 10%. These burdens could be vastly reduced through better consumer practices and better preventative medicine. For example, obesity, lack of exercise and cigarette smoking are immense contributors to these diseases. The U.S. Surgeon General estimates that obesity alone results in 300,000 American deaths and $117 billion in health care costs each year.
Conclusion
The healthcare sector in the U.S. over the next 12-months will continue to consolidate with budget pressures driving political policy and cost effective medical solutions. The market as a whole will see growth of 7% or more annually as 98 million baby boomers retire within five years. The fragmented medical diagnostic lab sector, digital medical records technologies and medical imaging niche markets remain ripe for M&A activity.

As shown in the chart below, every size category of U.S. small business except for 100 to 499 employees, a smaller share of the labor force was employed in 2006 than in 1988. And even the 100 to 499 employee category increased its share of the labor force by only 0.1 percent. Today, over 15 million Americans are unemployed at a rising rate of 9.8%.
The focus is now on how the Obama administrations healthcare reforms will impact the ability of small business owners to hire employees and reduced large company profits reflected on Wall Street with subsidized government competition, mandatory coverage requirements and price regulations. If it mandates every American must have coverage, it may in fact increase the number of paying patients. However, at best we can hope the impact of reforms that contain profits will be minimal on Wall Street stock prices.
DISCLOSURE: NONE
]]> Tue, 15 Sep 2009 08:09:25 -0400 James Rickman James Rickman submits:
Ultimately, the unknown results of U.S. healthcare reforms is like shooting dice in Las Vegas as tax-payers and small companies that employ 62% of Americans wonder just how it will effect their wallets. Still most agree, with healthcare costs almost 17% of U.S. GDP, industry reform must happen particularly in light of the Obama administration’s unwavering political gamble that now must produce some measure of reform.

Monday, preparation for the coming reform is already underway on Wall Street with drugmaker Eli Lilly & Co. (LLY) announcing it will eliminate over 5,500 jobs and reorganize into five business units in an effort to slash costs and speed up development of potential new drugs. Lilly hopes to cut annual costs by $1 billion per year over the same time, and will organize itself into five units: cancer, diabetes, established markets, emerging markets, and Elanco, its animal health business. Key Lilly products like the anti-psychotic drug Zyprexa will lose patent protection starting in 2011.

Bristol-Myers Squibb Co. (BMY) announced the completion of the $2.4 billion acquisition of Medarex, Inc. The deal was funded by Bristol-Myers from available cash. Medarex is set to become a wholly-owned subsidiary of Bristol-Myers.
A growing number of deals now involve foreign companies such as Japanese pharmaceutical company Dainippon Sumitomo Pharma Co., Ltd. reporting that it signed a definitive agreement to buy U.S. pharmaceutical company Sepracor Inc. (SEPR). The deal has been valued at $23 per share or $2.6 billion. Recent, takeover rumors led to a 26.46% increase in Sepracor’s stock price shares.
The Sepracor acquisition is the latest in a series of deals conducted by Japanese companies that are looking to tap the U.S. pharmaceutical market including Eisai’s acquisition of MGI Pharma, Takeda’s acquisition of Millennium Pharma and Shionogi’s acquisition of Sciele. Finally, Daiichi-Sankyo acquired a stake in India’s Ranbaxy Labs.
The trend of foreign healthcare ventures continued with Amylin Pharmaceuticals, Inc. (AMLN) announcing an exclusive agreement with Indian biotech company Biocon Limited for the development, commercialization and manufacture of a novel peptide therapeutic for the potential treatment of diabetes.
On the political front, the Obama administration is preparing to pass its alleged cost-saving universal healthcare reform which promises to impose a new set of rules and restrictions on the industry’s players. Already, the U.S. pharmaceutical industry has been coerced into offering billions in cost reductions over the next ten years. They may also be forced to compete with generic imports, which would effectively put a cap on domestic drug prices. Obama also sketched out a vision for the plan to make it illegal for insurers to drop sick people or deny them coverage for pre-existing conditions, and every American would be required to carry health coverage similar to a driver’s license or auto insurance.
The U.S. Senate version would expand coverage by requiring individuals to get insurance and employers to contribute to the cost. In the House, the Democrat bill would cost between $1 trillion and $1.5 trillion over 10 years and raise taxes by $540 billion for couples earning more than $350,000 a year. Critics charge the plan is inefficient, creates unnecessary bureaucracy, and imposes mandates and tax hikes on small businesses to pay for it.
Despite all its risks and drawbacks, though, healthcare is still a very good business. Aside from helping people and saving lives (no small feat), there are notable benefits to being part of the industry as healthcare is a quintessential defensive sector. People still get sick during recessions and they will often continue paying for medicine and treatment even when they cut back on other things.
The number of people without insurance coverage rose from 45.7 million in 2007 to 46.3 million in 2008. Despite that increase, the percentage of uninsured in the population remained unchanged at 15.4 percent. But with growing unemployment, it’s likely that it jumped again this year. [Source: U.S. Census Bureau]
A new study in Health Affairs concludes that CMS‘ decision to stop paying for hospital-acquired conditions, such as infections and bedsores, will reduce program costs very little. Based on California data, the researchers estimated that Medicare would save less than $3 million per year. This is pretty amazing, considering that each year, about 1.7 million people catch infections in the hospital and that 99,000 of them die as a result. [Source: Wall Street Journal]
During the past year, hospital associations promised President Obama that their members would lower Medicare costs by $155 billion over 10 years to help fund healthcare reform. Now the 5,700 hospitals across the country are looking at how they will do that. Each of them will have to cut $2.6 million annually, on average. While this is going to be difficult for some-especially with half of the hospitals said to be losing money-hospital executives admit that their organizations are rife with inefficiency and waste. [Source: USA Today]
Convenient care clinics, which started out treating only minor acute problems, are starting to expand into chronic disease care. Walgreens’ Take Care (WAG) chain has begun offering asthma and osteoporosis treatment on a pilot basis in Tampa and Orlando. And at some of CVS’ Minute Clinics (CVS), nurse practitioners are offering teenagers advice on acne. While this is just the proverbial camel’s nose under the tent, and retail clinics have not expanded to the extent that was predicted, primary-care physicians will watch this development warily. [Source: Wall Street Journal]
Further, research shows the market for medical automation technology will grow from $13.1 billion this year to $23.2 billion in 2014. Medical automation technology includes therapeutic processes, diagnostics and monitoring, and logistics and training. Examples include patient monitoring kiosks, surgical robots, and automated lab testing and analysis. The therapy segment is currently the largest, with $9.5 billion in sales. The diagnostic and monitoring segment is currently worth $3.3 billion, and the logistic and training market, $272 million. Hospitals are the most important customers for medical automation technology. [Source: Healthcare Finance News]
The 2009 Healthcare Industry Study, released by the Milliken Institute found that 109 million Americans suffered from one or more of the most common, chronic diseases, including cancer, diabetes, heart disease, pulmonary conditions, mental disorders, stroke or hypertension. This means that more than one-third of all Americans have these conditions to one degree or another. The study estimated that one year's cost of treatment of these conditions at $277 billion, but estimated lost economic productivity to be vastly higher at $1 trillion. In other words, lost work and lost output due to these illnesses is reducing the nation's GDP by about 10%. These burdens could be vastly reduced through better consumer practices and better preventative medicine. For example, obesity, lack of exercise and cigarette smoking are immense contributors to these diseases. The U.S. Surgeon General estimates that obesity alone results in 300,000 American deaths and $117 billion in health care costs each year.
Conclusion
The healthcare sector in the U.S. over the next 12-months will continue to consolidate with budget pressures driving political policy and cost effective medical solutions. The market as a whole will see growth of 7% or more annually as 98 million baby boomers retire within five years. The fragmented medical diagnostic lab sector, digital medical records technologies and medical imaging niche markets remain ripe for M&A activity.

As shown in the chart below, every size category of U.S. small business except for 100 to 499 employees, a smaller share of the labor force was employed in 2006 than in 1988. And even the 100 to 499 employee category increased its share of the labor force by only 0.1 percent. Today, over 15 million Americans are unemployed at a rising rate of 9.8%.
The focus is now on how the Obama administrations healthcare reforms will impact the ability of small business owners to hire employees and reduced large company profits reflected on Wall Street with subsidized government competition, mandatory coverage requirements and price regulations. If it mandates every American must have coverage, it may in fact increase the number of paying patients. However, at best we can hope the impact of reforms that contain profits will be minimal on Wall Street stock prices.
DISCLOSURE: NONE

Complete Story »]]> AMLN BMY CVS LLY SEPR WAG James Rickman CLIQ: Motorola’s SMART Device Shows Interesting Potential http://seekingalpha.com/article/161206-cliq-motorolas-smart-device-shows-interesting-potential?source=feed 161206 Motorola Inc. (MOT) announced it will release a new line of SMART mobile cell devices based on Google’s (GOOG) Android software. Over the past year, it’s been a bumpy ride for Motorola stock. However, the new Motorola CLIQ SMART networking device shows interesting potential with a wide range of productivity features built into a touch screen smart-phone set for release this holiday season. It will be introduced at about $350 each.

The CLIQ boasts a 5-megapixel digital camera, video recording, Bluetooth, USB connection, standard headphone jack and expandable memory up to 32GB.

Motorola is also rolling out the software-as-a-service (SaaS) Android based application MOTOBLUR that it intends to integrate with several other new social networking SMART devices set for release next year. The service will allow users to perform administrative tasks accessing personal and work calendar applications or data remotely including if the phone is lost and/or stolen.
]]> Sun, 13 Sep 2009 03:11:20 -0400 James Rickman James Rickman submits:
Motorola Inc. (MOT) announced it will release a new line of SMART mobile cell devices based on Google’s (GOOG) Android software. Over the past year, it’s been a bumpy ride for Motorola stock. However, the new Motorola CLIQ SMART networking device shows interesting potential with a wide range of productivity features built into a touch screen smart-phone set for release this holiday season. It will be introduced at about $350 each.

The CLIQ boasts a 5-megapixel digital camera, video recording, Bluetooth, USB connection, standard headphone jack and expandable memory up to 32GB.

Motorola is also rolling out the software-as-a-service (SaaS) Android based application MOTOBLUR that it intends to integrate with several other new social networking SMART devices set for release next year. The service will allow users to perform administrative tasks accessing personal and work calendar applications or data remotely including if the phone is lost and/or stolen.

Complete Story »]]> AAPL AMX DT FTE GOOG HTC LG MOT SNE SSNLF.PK T TEF VZ James Rickman Stocks to Watch This Week http://seekingalpha.com/article/160803-stocks-to-watch-this-week?source=feed 160803 The European Union has proposed a mandate that new vehicles sold in its member states be equipped with systems that automatically alert emergency centers after drivers get involved in road accidents. Honda Motor Co. (HMC) already offers similar alert features on some models.

BMW (BAMXY.PK) was upgraded to overweight on Wednesday by Morgan Stanley analysts who recommended switching out of Daimler (DAI) into BMW. Morgan Stanley also raised its price target on BMW to 36 euros, implying 11% upside from current levels.

]]> Thu, 10 Sep 2009 08:05:24 -0400 James Rickman James Rickman submits:

The European Union has proposed a mandate that new vehicles sold in its member states be equipped with systems that automatically alert emergency centers after drivers get involved in road accidents. Honda Motor Co. (HMC) already offers similar alert features on some models.

BMW (BAMXY.PK) was upgraded to overweight on Wednesday by Morgan Stanley analysts who recommended switching out of Daimler (DAI) into BMW. Morgan Stanley also raised its price target on BMW to 36 euros, implying 11% upside from current levels.


Complete Story »]]> BAMXY.PK CASY CLZR ELOS HMC ISTA LNY NYX PBY TLB UPS VIVDY.PK James Rickman Real Estate Delinquency Rates Accelerate: Do We Need More Bailout Money? http://seekingalpha.com/article/159952-real-estate-delinquency-rates-accelerate-do-we-need-more-bailout-money?source=feed 159952 Currently, there is approximately $3.5 trillion or more of outstanding debt associated with U.S. commercial real estate. The delinquency rate on commercial property loans pooled together into investments is about $750 billion considered under/nonperforming in Q2, 2009. This rate is nearly triple from where it was at the end of last year. The increasing real estate delinquency rate combined with stagnate L-shaped U.S. GDP growth into 2011 and high unemployment leads us to question whether or not some form of additional bailout stimulus is necessary.

]]> Fri, 04 Sep 2009 04:31:10 -0400 James Rickman James Rickman submits:

Currently, there is approximately $3.5 trillion or more of outstanding debt associated with U.S. commercial real estate. The delinquency rate on commercial property loans pooled together into investments is about $750 billion considered under/nonperforming in Q2, 2009. This rate is nearly triple from where it was at the end of last year. The increasing real estate delinquency rate combined with stagnate L-shaped U.S. GDP growth into 2011 and high unemployment leads us to question whether or not some form of additional bailout stimulus is necessary.


Complete Story »]]> CNB CORS FBC GFG MI SNV James Rickman BP Strikes Oil, Enhances Exploration Potential in Gulf of Mexico http://seekingalpha.com/article/159845-bp-strikes-oil-enhances-exploration-potential-in-gulf-of-mexico?source=feed 159845 British Petroleum (BP) reports it has discovered a new oil reserve potentially reaching 3 billion barrels in the deepwater Tiber Prospect area in the Gulf of Mexico section known as Keathley Canyon block 102 (located 250 miles southeast of Houston, Texas). The oil reserve was struck at over 33,000 feet. The exact size and commercial value has not yet been determined but it will take several years to any begin production.

BP has an over 62% working interest in the Keathley Canyon block while Brazilian state-controlled Petrobras (PZE) owns 20% and U.S. oil gaint ConocoPhillips (COP) owns 18%. BP will need to extract the oil, typically recovering about 25% to 40% of the reserves in place.

]]> Thu, 03 Sep 2009 12:20:33 -0400 James Rickman James Rickman submits:

British Petroleum (BP) reports it has discovered a new oil reserve potentially reaching 3 billion barrels in the deepwater Tiber Prospect area in the Gulf of Mexico section known as Keathley Canyon block 102 (located 250 miles southeast of Houston, Texas). The oil reserve was struck at over 33,000 feet. The exact size and commercial value has not yet been determined but it will take several years to any begin production.

BP has an over 62% working interest in the Keathley Canyon block while Brazilian state-controlled Petrobras (PZE) owns 20% and U.S. oil gaint ConocoPhillips (COP) owns 18%. BP will need to extract the oil, typically recovering about 25% to 40% of the reserves in place.


Complete Story »]]> BP COP PZE RDS.A James Rickman Gold Trades Up on Weak Dollar, Poor Non-Farm Employment Data http://seekingalpha.com/article/159832-gold-trades-up-on-weak-dollar-poor-non-farm-employment-data?source=feed 159832 Larger than expected drops in private sector nonfarm employment of over 290,000 (The ADP National Employment Report) for August 2009 continues to accelerate demand for precious metals such as Gold. The December delivery lately traded up $10.20, or 1%, at $966.70 an ounce in electronic trading.

Historically it has acted as a hedge against inflation - as inflation goes up, the price of gold goes up along with it. The five highest years of inflation in the U.S. from the end of World War II were 1946, 1974, 1975, 1979, and 1980. During those five years, the average real return on stocks, as measured by the Dow, was minus (-12.33%), while the average real return on gold was 130.4%.

]]> Thu, 03 Sep 2009 10:42:59 -0400 James Rickman James Rickman submits:

Larger than expected drops in private sector nonfarm employment of over 290,000 (The ADP National Employment Report) for August 2009 continues to accelerate demand for precious metals such as Gold. The December delivery lately traded up $10.20, or 1%, at $966.70 an ounce in electronic trading.

Historically it has acted as a hedge against inflation - as inflation goes up, the price of gold goes up along with it. The five highest years of inflation in the U.S. from the end of World War II were 1946, 1974, 1975, 1979, and 1980. During those five years, the average real return on stocks, as measured by the Dow, was minus (-12.33%), while the average real return on gold was 130.4%.


Complete Story »]]> ABX EGO GFI GOLD GV MTOGF.PK RBIFF.PK SIOGF.PK XSRAF.PK James Rickman EV Market: Ener1 Inc. Reaches Deal for 30% of THINK http://seekingalpha.com/article/159552-ev-market-ener1-inc-reaches-deal-for-30-of-think?source=feed 159552 Ener1, Inc. (HEV), the parent company of EnerDel, is among a group of investors pumping a total of $47 million dollars of equity funding into Norwegian EV manufacturer THINK GLOBAL AS. EnerDel is a leading manufacturer of lithium ion automotive battery systems.

The terms of the agreement calls for about $18 million in three tranches with an additional $3 million in debt for convertible preferred shares of THINK. Once the deal transfers are completed Ener1, Inc. will own about 30% of THINK GLOBAL AS. Additionally, the Norwegian investment company, Investinor will own a percentage investing $5 million.

]]> Wed, 02 Sep 2009 06:57:18 -0400 James Rickman James Rickman submits:

Ener1, Inc. (HEV), the parent company of EnerDel, is among a group of investors pumping a total of $47 million dollars of equity funding into Norwegian EV manufacturer THINK GLOBAL AS. EnerDel is a leading manufacturer of lithium ion automotive battery systems.

The terms of the agreement calls for about $18 million in three tranches with an additional $3 million in debt for convertible preferred shares of THINK. Once the deal transfers are completed Ener1, Inc. will own about 30% of THINK GLOBAL AS. Additionally, the Norwegian investment company, Investinor will own a percentage investing $5 million.


Complete Story »]]> AONE F HEV HIT JCI MXCYY.PK PC TM James Rickman Market Correction Brings Opportunity to Buy Energy Stocks http://seekingalpha.com/article/159577-market-correction-brings-opportunity-to-buy-energy-stocks?source=feed 159577 A market correction is under way as investors seek to take profits on the over-priced hyped recovery that has been slow to materialize. The economic growth forecasts for the U.S. in particular look stagnate at maybe 2% growth starting late 2010. Emerging markets GDP growth in Asia, Africa, South America and parts of Europe look promising but lack the ability to maintain the speculative DJIA levels over 9,200. These regions appear unable to lift world markets to new highs without healthy U.S. consumer spending which is unlikely for sometime given massive debt obligations. However, we should see the 700 million emerging middle class people of China and India significantly accelerate demands for both fossil fuel and renewable energy for the next 10-years.

Historically a full 10% correction from the Friday’s intraday highs of 9,630.20 would move the DJIA down to 8,667. That would sync up fairly closely with the lower trend line of higher lows if it happens in the next couple of weeks. A 5% correction from those same Friday highs would move the DJIA down to 9,148.

]]> Wed, 02 Sep 2009 04:57:42 -0400 James Rickman James Rickman submits:

A market correction is under way as investors seek to take profits on the over-priced hyped recovery that has been slow to materialize. The economic growth forecasts for the U.S. in particular look stagnate at maybe 2% growth starting late 2010. Emerging markets GDP growth in Asia, Africa, South America and parts of Europe look promising but lack the ability to maintain the speculative DJIA levels over 9,200. These regions appear unable to lift world markets to new highs without healthy U.S. consumer spending which is unlikely for sometime given massive debt obligations. However, we should see the 700 million emerging middle class people of China and India significantly accelerate demands for both fossil fuel and renewable energy for the next 10-years.

Historically a full 10% correction from the Friday’s intraday highs of 9,630.20 would move the DJIA down to 8,667. That would sync up fairly closely with the lower trend line of higher lows if it happens in the next couple of weeks. A 5% correction from those same Friday highs would move the DJIA down to 9,148.


Complete Story »]]> BP CVX RDS.A TOT XOM James Rickman General Motors China Signs $293M FAW Group Deal http://seekingalpha.com/article/159154-general-motors-china-signs-293m-faw-group-deal?source=feed 159154 GM China announced a joint venture (50-50 split) with Chinese state-owned FAW Group Corporation for $293 million. Under the terms of the agreement, GM will use FAW Group's existing production plants to manufacture light duty trucks and vans. The agreement represents a tremendous opportunity for GM to increase revenues penetrating the Chinese light truck market that has grown on over 35% this year.
GM initially plans to manufacture 100,000 light trucks and vans per month then double that production by late 2010. The terms of the agreement also include the development of a new assembly plant site in Harbin, China. GM in the meantime will use two existing facilities in southwestern China's Yunnan province, a facility owned by FAW-affiliate Hongta Yunnan Automobile Manufacturing Co. Ltd., and at Harbin Light Vehicle Co. Ltd. in the northeastern city of Harbin.
GM China’s sales jumped 38% in the first half of this year, as demand for minivans and small vehicles accelerated. GM China sold more than 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year. That compares with sales of 1,094,561 GM vehicles in China for all of 2008.
FAW Group Corporation, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008.
China’s Top heavy truck makers include:
GM China also expects its commercial vehicle sales to reach 80,000 to 90,000 this year and to rise significantly by mid 2010. The Chinese economic stimulus package has propelled major car makers in China to post record sales last month. The accelerating sales signal that China's auto sales may see a new high in the traditionally non-prime sales season, following a 38% year-on-year increase to 1.14 million units in June.
Chang'an Ford Sales Co, the Chinese venture of Ford Motor Corp (F) sales rose 54% last month to 19,486 units. The Chinese government has offered a lower tax and subsidies for vehicle purchases that has proved effective in sparking market demand and helped car makers to offset slumping sales in the US and Europe. China's auto sales topped 1.14 million units in June, according to China Association of Automobile Manufacturers.
Japan's Honda Motor (HMC) also reported sales for last month were a record high at 32,382 units in its passenger car venture Guangqi Honda Automobile Co. The future looks bright for auto manufacturers in China.
Disclosure: None
]]> Mon, 31 Aug 2009 08:45:03 -0400 James Rickman James Rickman submits:
GM China announced a joint venture (50-50 split) with Chinese state-owned FAW Group Corporation for $293 million. Under the terms of the agreement, GM will use FAW Group's existing production plants to manufacture light duty trucks and vans. The agreement represents a tremendous opportunity for GM to increase revenues penetrating the Chinese light truck market that has grown on over 35% this year.
GM initially plans to manufacture 100,000 light trucks and vans per month then double that production by late 2010. The terms of the agreement also include the development of a new assembly plant site in Harbin, China. GM in the meantime will use two existing facilities in southwestern China's Yunnan province, a facility owned by FAW-affiliate Hongta Yunnan Automobile Manufacturing Co. Ltd., and at Harbin Light Vehicle Co. Ltd. in the northeastern city of Harbin.
GM China’s sales jumped 38% in the first half of this year, as demand for minivans and small vehicles accelerated. GM China sold more than 100,000 vehicles a month in China from January to June for a total of 814,442, a record for any half year. That compares with sales of 1,094,561 GM vehicles in China for all of 2008.
FAW Group Corporation, originally known as First Auto Works, was founded in 1953 and began production in 1956. It sold 1.53 million vehicles, including sedans, vans and trucks, in 2008.
China’s Top heavy truck makers include:
GM China also expects its commercial vehicle sales to reach 80,000 to 90,000 this year and to rise significantly by mid 2010. The Chinese economic stimulus package has propelled major car makers in China to post record sales last month. The accelerating sales signal that China's auto sales may see a new high in the traditionally non-prime sales season, following a 38% year-on-year increase to 1.14 million units in June.
Chang'an Ford Sales Co, the Chinese venture of Ford Motor Corp (F) sales rose 54% last month to 19,486 units. The Chinese government has offered a lower tax and subsidies for vehicle purchases that has proved effective in sparking market demand and helped car makers to offset slumping sales in the US and Europe. China's auto sales topped 1.14 million units in June, according to China Association of Automobile Manufacturers.
Japan's Honda Motor (HMC) also reported sales for last month were a record high at 32,382 units in its passenger car venture Guangqi Honda Automobile Co. The future looks bright for auto manufacturers in China.
Disclosure: None

Complete Story »]]> F HMC TM James Rickman Ethanol Biomass $285M Plant Proposed as Biofuel Production Rises http://seekingalpha.com/article/158986-ethanol-biomass-285m-plant-proposed-as-biofuel-production-rises?source=feed 158986 The ethanol biofuel industry as part of the overall domestic renewable energy strategy (wind, solar, geothermal etc) is showing signs of sustainable life as several promising industry deals are announced building on the pledge from the U.S. Department of Energy Recovery Act to invest $800 million to accelerate biofuel research and commercialization to stimulate economic growth creating jobs.

Recently, total U.S. ethanol production rose 70,000 bbl or 24,647 bpd to 20.822 million bbl or 694,067 bpd in as plants boosted run rates by 3% to 84% of operable capacity.

Power Energy of America, an advanced biofuels company based in Evansville, Indiana, announced today it hopes to build a $285 million waste-to-ethanol plant in Lake County, about 65 miles north of Bloomington. The state of Indiana is now developing more than 12 separate biomass ethanol plants.

]]> Sun, 30 Aug 2009 05:25:40 -0400 James Rickman James Rickman submits:

The ethanol biofuel industry as part of the overall domestic renewable energy strategy (wind, solar, geothermal etc) is showing signs of sustainable life as several promising industry deals are announced building on the pledge from the U.S. Department of Energy Recovery Act to invest $800 million to accelerate biofuel research and commercialization to stimulate economic growth creating jobs.

Recently, total U.S. ethanol production rose 70,000 bbl or 24,647 bpd to 20.822 million bbl or 694,067 bpd in as plants boosted run rates by 3% to 84% of operable capacity.

Power Energy of America, an advanced biofuels company based in Evansville, Indiana, announced today it hopes to build a $285 million waste-to-ethanol plant in Lake County, about 65 miles north of Bloomington. The state of Indiana is now developing more than 12 separate biomass ethanol plants.


Complete Story »]]> BFRE.OB RDS.A James Rickman LDK Solar Inks China PV Deal http://seekingalpha.com/article/158640-ldk-solar-inks-china-pv-deal?source=feed 158640 LDK Solar Co., Ltd. (LDK), a leading manufacturer of multicrystalline solar wafers, has announced it entered into an agreement with Yancheng City of Jiangsu Province to development PV power projects and it will develop a number of PV power projects, including PV ground-power stations and roof and building integration systems totaling up to 500 MW over the next five years. Yancheng City is currently one of the most important wind power bases in China. Yancheng City possesses the largest coastal area in Jiangsu Province and is rich in natural resources. Yesterday shares of LDK Solar were up about 4.5% at $9.22 on 83,000 shares in mid-day trading.

The terms of the joint venture includes building large ground-power stations to take advantage of wind and photovoltaics as complementary power sources but still require a feasibility study as well as final approval from relevant Chinese state departments prior to commencing.

]]> Thu, 27 Aug 2009 10:10:00 -0400 James Rickman James Rickman submits:

LDK Solar Co., Ltd. (LDK), a leading manufacturer of multicrystalline solar wafers, has announced it entered into an agreement with Yancheng City of Jiangsu Province to development PV power projects and it will develop a number of PV power projects, including PV ground-power stations and roof and building integration systems totaling up to 500 MW over the next five years. Yancheng City is currently one of the most important wind power bases in China. Yancheng City possesses the largest coastal area in Jiangsu Province and is rich in natural resources. Yesterday shares of LDK Solar were up about 4.5% at $9.22 on 83,000 shares in mid-day trading.

The terms of the joint venture includes building large ground-power stations to take advantage of wind and photovoltaics as complementary power sources but still require a feasibility study as well as final approval from relevant Chinese state departments prior to commencing.


Complete Story »]]> FSLR LDK SOLR STP James Rickman Yahoo Buys Maktoob Arabic Portal, Adds 16 Million Internet Users http://seekingalpha.com/article/158184-yahoo-buys-maktoob-arabic-portal-adds-16-million-internet-users?source=feed 158184 In a deal worth potentially $95 million, Yahoo (YHOO) announced today the purchase of Maktoob, an Arabic portal with 16 million users in United Arab Emirates, Jordan, Kuwait, Egypt and Saudi Arabia.

The move by Yahoo almost doubles its current 20 million users base giving it access to one in three Internet users in the emerging oil rich Arab markets. Estimates are that only one percent of the online content is in Arabic despite the 320 million Arabic speakers.

]]> Tue, 25 Aug 2009 10:43:43 -0400 James Rickman James Rickman submits:

In a deal worth potentially $95 million, Yahoo (YHOO) announced today the purchase of Maktoob, an Arabic portal with 16 million users in United Arab Emirates, Jordan, Kuwait, Egypt and Saudi Arabia.

The move by Yahoo almost doubles its current 20 million users base giving it access to one in three Internet users in the emerging oil rich Arab markets. Estimates are that only one percent of the online content is in Arabic despite the 320 million Arabic speakers.


Complete Story »]]> MSFT YHOO James Rickman Procter & Gamble Sells Drug Unit to Warner Chilcott for $3.1 Billion http://seekingalpha.com/article/157965-procter-gamble-sells-drug-unit-to-warner-chilcott-for-3-1-billion?source=feed 157965 Today, Procter & Gamble (PG) reports selling it's prescription drug unit for $3.1 billion to Irish drugmaker Warner Chilcott (WCRX). The deal will nearly double Warner Chilcott revenues.

Procter & Gamble shares rose 47 cents to $54.05 from $53.58 in premarket trading. Warner Chilcott announced it will borrow funds from a group of banks to complete the deal, expected to close by Q1 2010.

]]> Mon, 24 Aug 2009 12:32:54 -0400 James Rickman James Rickman submits:

Today, Procter & Gamble (PG) reports selling it's prescription drug unit for $3.1 billion to Irish drugmaker Warner Chilcott (WCRX). The deal will nearly double Warner Chilcott revenues.

Procter & Gamble shares rose 47 cents to $54.05 from $53.58 in premarket trading. Warner Chilcott announced it will borrow funds from a group of banks to complete the deal, expected to close by Q1 2010.


Complete Story »]]> PG WCRX James Rickman A Long Look at Lithium: Chile's SQM Poised for Growth http://seekingalpha.com/article/156053-a-long-look-at-lithium-chile-s-sqm-poised-for-growth?source=feed 156053 Sociedad Quimica y Minera (SQM), headquartered in Chile, looks poised for solid returns as global markets demand more lithium-ion battery energy and agricultural resources. SQM is a leading producer of key resources such as potassium nitrate, iodine and lithium carbonate. It also produces specialty plant nutrition products, iodine and lithium derivatives, and certain industrial chemicals, including industrial nitrates. SQM is well positioned as the world population adds 700 million new middle class people (examples, China 350 million and India 100 million respectively) by 2022.
Of particular interest is the Chilean-based SQM’s 30% global market share of Lithium derivates used for electric vehicle (EV) lithium-ion batteries.
Its primary competitor, Rockwood Holdings' Chemestall Division (ROC), has 28% global Lithium market share. However, Rockwood -- exposed widely among several sectors -- reported a 21% decrease in net sales for Q2 2009 with debt issues and poor earnings per share results.

SQM is financially better positioned long-term, given low debt and Lithium plays with contributing plant nutrition (agriculture) and iodine (medical) revenues, despite its just announced 11% earnings decrease for Q2 2009.
Deposits of lithium are found in South America throughout the Andes mountain chain. Chile is the leading lithium metal producer, followed by Argentina. Both countries recover the lithium from brine pools. In the United States lithium is recovered from brine pools in Nevada. Over the past five years, foreign direct investment inflows into politically stable Chile have quadrupled to some $17 billion in 2008.
However, nearly half the world's known lithium reserves are located in Bolivia, a politically unstable nation sitting along the central eastern slope of the Andes. Most recently, Bolivia has negotiated with Japanese and French firms to begin extraction. The US Geological Survey estimates Bolivia's Uyuni Desert has 5.4 million tons of lithium, which can be used to make batteries for hybrid and electric vehicles. This is the largest amount of lithium in any country, compared to Chile's 3 million tons and the United States’ 760,000 tons.
Additionally, China's proven lithium reserves (converted into pure lithium) have reached 3.35 million tons, meaning China ranks the fourth in terms of salt lake brine lithium reserves and lithium ore resources. There is potential production of up to 64,000 tons per year if projects in Qinghai province and Tibet proceed.
The total recoverable lithium worldwide has been estimated at 35 million tons, which includes 15 million tons of the known global lithium reserve base. The National Research Council panel estimated lithium resources at 10.6 million tons for the Western World. With the inclusion of Russian and Chinese resources as well as new discoveries in Australia, Serbia, Argentina and the United States, the total had nearly tripled by 2008.
As the global economy recovers, it should be moving towards a mix of alternative energy such as electric lithium based and renewable energy sources that are only found in specific regional locations. These factors, combined with SQM's low debt ratios and solid gross margins, should continue to generate significant earnings per share returns by 2010.


Upon examination, of particular note is the future CO2 environmental impact of EV lithium ion battery waste. For example, the U.S. Army spends about $72 million annually on the purchase of batteries. Over the past 18 months it has seen a significant increase in use of the BA 5590 (12-volt lithium battery) with 10 lithium cells, weighing approximately 2.5 pounds. The cost of these batteries is $65 each with disposal cost as a hazardous waste at $9.22 each. On average, 30% of the recycled batteries processed have greater than 70% of their life span remaining and are re-issued, saving the U.S. Army about $500,000 per year.
Note the EV battery C02 emissions results below:
It will be interesting to watch the volatile EV lithium-ion battery manufacturing sector shake out with players including; A123Systems (AONE), Hitachi (HIT), Matsushita (MC), Mitsubishi (MSBHY), Sanyo (SANYY.PK), Advanced Battery (ABAT),Valence Technology (VLNC), Ener1 (HEV), China BAK Battery (CBAK), UltraLife (ULBI), Enersys (ENS), and Exide Technologies (XIDE) among others.
We also foresee that global demand for SQM's industrial nitrates for thermal energy storage in solar energy plants will significantly increase consumption (mixture of sodium nitrate and potassium nitrate).
The intense sector competition, mostly from Asia (e.g., Lithium Energy Japan Venture), particularly among Lithium-ion battery manufacturers, further makes the case for SQM as a stable long-term alternative energy plus agriculture stock portfolio addition.
]]> Fri, 14 Aug 2009 01:17:56 -0400 James Rickman James Rickman submits:
Sociedad Quimica y Minera (SQM), headquartered in Chile, looks poised for solid returns as global markets demand more lithium-ion battery energy and agricultural resources. SQM is a leading producer of key resources such as potassium nitrate, iodine and lithium carbonate. It also produces specialty plant nutrition products, iodine and lithium derivatives, and certain industrial chemicals, including industrial nitrates. SQM is well positioned as the world population adds 700 million new middle class people (examples, China 350 million and India 100 million respectively) by 2022.
Of particular interest is the Chilean-based SQM’s 30% global market share of Lithium derivates used for electric vehicle (EV) lithium-ion batteries.
Its primary competitor, Rockwood Holdings' Chemestall Division (ROC), has 28% global Lithium market share. However, Rockwood -- exposed widely among several sectors -- reported a 21% decrease in net sales for Q2 2009 with debt issues and poor earnings per share results.

SQM is financially better positioned long-term, given low debt and Lithium plays with contributing plant nutrition (agriculture) and iodine (medical) revenues, despite its just announced 11% earnings decrease for Q2 2009.
Deposits of lithium are found in South America throughout the Andes mountain chain. Chile is the leading lithium metal producer, followed by Argentina. Both countries recover the lithium from brine pools. In the United States lithium is recovered from brine pools in Nevada. Over the past five years, foreign direct investment inflows into politically stable Chile have quadrupled to some $17 billion in 2008.
However, nearly half the world's known lithium reserves are located in Bolivia, a politically unstable nation sitting along the central eastern slope of the Andes. Most recently, Bolivia has negotiated with Japanese and French firms to begin extraction. The US Geological Survey estimates Bolivia's Uyuni Desert has 5.4 million tons of lithium, which can be used to make batteries for hybrid and electric vehicles. This is the largest amount of lithium in any country, compared to Chile's 3 million tons and the United States’ 760,000 tons.
Additionally, China's proven lithium reserves (converted into pure lithium) have reached 3.35 million tons, meaning China ranks the fourth in terms of salt lake brine lithium reserves and lithium ore resources. There is potential production of up to 64,000 tons per year if projects in Qinghai province and Tibet proceed.
The total recoverable lithium worldwide has been estimated at 35 million tons, which includes 15 million tons of the known global lithium reserve base. The National Research Council panel estimated lithium resources at 10.6 million tons for the Western World. With the inclusion of Russian and Chinese resources as well as new discoveries in Australia, Serbia, Argentina and the United States, the total had nearly tripled by 2008.
As the global economy recovers, it should be moving towards a mix of alternative energy such as electric lithium based and renewable energy sources that are only found in specific regional locations. These factors, combined with SQM's low debt ratios and solid gross margins, should continue to generate significant earnings per share returns by 2010.


Upon examination, of particular note is the future CO2 environmental impact of EV lithium ion battery waste. For example, the U.S. Army spends about $72 million annually on the purchase of batteries. Over the past 18 months it has seen a significant increase in use of the BA 5590 (12-volt lithium battery) with 10 lithium cells, weighing approximately 2.5 pounds. The cost of these batteries is $65 each with disposal cost as a hazardous waste at $9.22 each. On average, 30% of the recycled batteries processed have greater than 70% of their life span remaining and are re-issued, saving the U.S. Army about $500,000 per year.
Note the EV battery C02 emissions results below:
It will be interesting to watch the volatile EV lithium-ion battery manufacturing sector shake out with players including; A123Systems (AONE), Hitachi (HIT), Matsushita (MC), Mitsubishi (MSBHY), Sanyo (SANYY.PK), Advanced Battery (ABAT),Valence Technology (VLNC), Ener1 (HEV), China BAK Battery (CBAK), UltraLife (ULBI), Enersys (ENS), and Exide Technologies (XIDE) among others.
We also foresee that global demand for SQM's industrial nitrates for thermal energy storage in solar energy plants will significantly increase consumption (mixture of sodium nitrate and potassium nitrate).
The intense sector competition, mostly from Asia (e.g., Lithium Energy Japan Venture), particularly among Lithium-ion battery manufacturers, further makes the case for SQM as a stable long-term alternative energy plus agriculture stock portfolio addition.

Complete Story »]]> ABAT AONE CBAK ENS HEV HIT MC MSBHY ROC SANYY.PK SQM ULBI VLNC XIDE James Rickman