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Randy Sommovilla

Randy Sommovilla
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CLNE, DBD, F, GE, HNZ, IBM, MO, VZ
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  • FCC Republicans ask Wheeler to delay net neutrality vote [View news story]
    Gil 1937. It's not a "bill". It is 330 pages of regulations promulgated by an Obama majority of FCC commissioners. "Bills" are laws that Congress passes or proposes, something that the administration conveniently bypasses under the guise of regulatory authority. I firmly believe that it will be a costly regulatory scheme that destroys innovation and improvement of an entity that has shown blinding innovation under a very light touch government policy that will now shackle innovation.
    However, this power grab by a regulatory agency is just one more example of the administration's overreach of regulatory power and its incessant attack on the separation of powers. Overreach of regulatory power joins executive orders and the non-enforcement of statutes (immigration) in that attack. The fact that Congress has condoned an extremely "light touch" policy for decades certainly indicates its approval of non-interference in a marvel that is another example of American exceptionalism, the existence of which Mr. Obama denies. I'm not a jingoist and there is exceptionalism all over the world. But this overall denial and attitude should not should not encourage tinkering with the truly American exceptional technological innovations we have enjoyed pretty much without the obtrusiveness of government interference.
    Once again, the WSJ points out that the administration is encouraging publicly funded municipal ISPs. So now we will have subsidized competition. It will no doubt be further subsidized by requiring the existing private ISPs to provide their infrastructure and innovations to the publicly funded (directly and through tax free bonds) entities. Budgets have been strained in several municipalities that have established "competing" systems and are considering abandoning the efforts.
    I think that I may go on a fool's errand and actually read the 330 page monstrosity to see, (in the "Who's" words) "what parcels are for free in curiosity."
    Feb 25, 2015. 01:10 PM | Likes Like |Link to Comment
  • FCC Republicans ask Wheeler to delay net neutrality vote [View news story]
    It seems like most of the comments center upon rate controls which Wheeler stated the FCC would forebear from exercising the power to do so. Given the nature of the comments, it appears that the "public" will be clamoring for rate controls and Wheeler's forebearance will undoubtedly give the public what it wants. A concern of mine is the cost of this regulatory authority--how many new bureaucrats will be needed to enforce new regulations and how many endless hearings will ISP and broadband providers have to endure and pay for? Has any government agency studied the cost of this regulatory scheme--costs that will be passed on to users.
    I would refer the commentators to a WSJ article ("Why Download Europe's Lousy Broadband Policy?") about European regulation of ISP and broadband providers as utilities and the statistical evidence gathered by the Internet Innovation Alliance. In every service category, such regulations have dampened investment and innovation. One example: in 2012, only 30% of European households had access to LTE service compared to 79% of American households. Another: 82% of American households have access to high speed broadband compared to 63% in the EU. It also found that American providers invested $112b in innovation, expansion and system improvements in 2011 and 2102. The total EU investment
    was $31b over the same period of time. the EU has finally recognized the error of its ways and is beginning to withdraw from its regulatory schemes.
    It would be far too trite if I stated the truism that if it isn't broken, don't fix it so I'll just say if it needs any minor repairs in any way, don't let the federal government fix it.
    And StewBabie, I'd like to know if your "public" has any interest in this beyond rate reductions and wait time complaints about service calls. Your "public" has little concern or knowledge about the deleterious effect that heavy handed regulation will have on the internet and broadband innovation and investment.
    Feb 24, 2015. 11:33 AM | 5 Likes Like |Link to Comment
  • Ford Insider Selling Is Probably Nothing, But Bulls Should Note These As Unusual [View article]
    The shares were probably bought by Blackrock. There is nothing nuanced about a 5.4% stake in a company the size of Ford.
    Feb 9, 2015. 08:01 PM | Likes Like |Link to Comment
  • Wells Fargo upgrades Exxon while cutting view for Chevron, Murphy Oil [View news story]
    My, my! Such cynicism.
    Jan 21, 2015. 05:29 PM | Likes Like |Link to Comment
  • N.Y. judge lets Chevron bring fraud claims against Patton Boggs [View news story]
    I admire Chevron's tenacity in fighting back against fraudulent extortion by litigation. Chevron's lawyers will have a field day with discovery which will no doubt yield embarrassing information not only about the firm, but also its clients and the politicians and regulators it lobbies.
    It couldn't come at a worse time for the firm. This will surely throw a monkey wrench into its life line pursuit of a merger with much larger Squire Sanders.
    Mar 31, 2014. 10:11 PM | 5 Likes Like |Link to Comment
  • Is IBM The Apple Of Enterprise Computing? [View article]
    I agree that there is "nothing wrong with increasing earnings per share". But there is something wrong when that increase is solely attributable to buybacks especially when executed at all time highs in the share price. Increasing earnings per share when actual earnings are flat or declining is sheer and misleading folly.
    Dec 6, 2013. 11:29 AM | Likes Like |Link to Comment
  • Ford recalls Escape SUV for 7th time [View news story]
    When will heads begin to roll?
    Nov 26, 2013. 12:56 PM | Likes Like |Link to Comment
  • Ford To Fund Its Pension Fully By Mid-Decade [View article]
    Only if private defined benefit plans continue to fail. And, if the shortfall is not made up gradually by the remaining healthy defined benefit plans, I wouldn't be surprised to see political pressure mount for the PBGC to increase the premiums that healthy plans pay.
    Even though Detroit is a public employer plan, it will be interesting to see what happens with its plans. The problems of private plans pale in comparison to public plans. I guess the only positive thing to emerge is some public awareness of the problems. Maybe I should say increased public cynicism.
    Jul 29, 2013. 01:11 AM | Likes Like |Link to Comment
  • Ford To Fund Its Pension Fully By Mid-Decade [View article]
    ERISA created the Pension Benefit Guarantee Corporation. The pension benefits it insures ARE NOT funded by tax revenues. The funds needed to guarantee and pay beneficiaries of bankrupt defined benefit plans come from premiums paid by solvent companies that have defined benefit pension plans. Taxpayers are not on the hook for anything.
    Jul 27, 2013. 10:17 PM | Likes Like |Link to Comment
  • Ford To Fund Its Pension Fully By Mid-Decade [View article]
    A little analytical thought might help tc. The federal government's losses on its ownership of GM stock will be substantial. It will break even when the stock hits $95.8/share. It trades today at $36 and the Treasury intends to sell it at a loss as it has already done on previous sales. It still holds 189 million shares. With a current $60 disparity, taxpayers are on the hook for over $11 billion.
    A rose by any other name is still a rose. So too are government subsidies.
    Jul 26, 2013. 02:19 PM | Likes Like |Link to Comment
  • Ford To Fund Its Pension Fully By Mid-Decade [View article]
    And our government picks up the tab for GM.
    Jul 25, 2013. 09:58 PM | 2 Likes Like |Link to Comment
  • Commodities Today: 5 Stocks To Avoid Based On Recent News [View article]
    It looks like Jim Cramer is a summer soldier and sunshine patriot. After touting LINE for years, praising its shareholder friendly and extremely competent management, the company's hedging and acquisition strategies and the strength of its assets, he put a sell on it in last night's show calling the SEC's inquiry an "investigation" into "accounting irregularities". I do not believe the SEC called its action an "investigation" into "accounting irregularities", terms that carry suspicious and sinister connotations. Although I do like his show, Cramer should be more careful of his choice of words because they do have consequences and probably contributed to today's further decline in LINE's stock price. Perhaps his comments reflect a paranoiac fear of being snookered like he was by Aubrey McClendon and Erikson Air Crane.
    Jul 3, 2013. 11:59 AM | 8 Likes Like |Link to Comment
  • GE Healthcare Targets Growth Markets And New Technologies To Drive Sales [View article]
    NYCTEXASBANKER
    No, I wasn't aware. I saw Matrix but wasn't so enthralled to be interested in the sequels. But, it doesn't improve the overall impression. It's still a terrible theme and I'm not sure how many people recognize its origin. To me, GE has been the icon of American ingenuity and manufacturing prowess and the ad tarnishes that appeal. Thanks for letting me know.
    May 20, 2013. 06:08 PM | Likes Like |Link to Comment
  • GE Healthcare Targets Growth Markets And New Technologies To Drive Sales [View article]
    One thing GE could do in its health care business is to pull its obnoxious and off-putting commercial with an espionage motif. An actor dressed in black with sunglasses, a sleazy voice and arrogant gait is hardly an attractive or positive image. Rather, it projects a sneaky, less than honest, and secretive image. Compare it to Seimans ads. As a long time suffering shareholder, the ad is almost enough to make me sell. I have to question the judgment of its marketing team. If this is the best its marketers can do, what does it say about the rest of management?
    May 20, 2013. 04:06 PM | 1 Like Like |Link to Comment
  • 4 Reasons Why General Electric Is Now One Of The Most Shorted Dow Stocks [View article]
    I'll add a fifth reason---the obnoxious and grating espionage themed medical software/devices commercial it has been running incessantly for the last month or so. It is simply an off-putting example of extremely bad taste and projects a sleazy, sneaky and underhanded image. It's almost enough to make me sell a position in GE that I have held for 15 years. The marketing/advertising geniuses who created and approved this commercial should be exiled to matchbook advertising. It's hard for me to believe that higher level executives who have seen it haven't pulled it from the air. My confidence in GE management ahs evaporated.
    May 6, 2013. 03:26 PM | 1 Like Like |Link to Comment
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