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  • Rates tumble, but only marginal relief for REITs; utilities gain [View news story]
    SA is showing OHI at 34.33 when cnbc shows it closed at 34.75. Earlier, SA was showing a similar increase today. What gives?
    Jul 1, 2015. 05:46 PM | 1 Like Like |Link to Comment
  • Tesla's Superior Business Model May Justify Tesla's Stock Price [View article]
    See page 73 of the 2014 GM Annual report in your link:
    "Research and Development Expenditures
    Research and development expenditures, which are expensed as incurred in Automotive cost of sales, were $7.4 billion, $7.2 billion
    and $7.4 billion in the years ended December, 31 2014, 2013 and 2012."

    SFAS 2 requires all of R&D falling under its umbrella to be expensed as incurred. That is US GAAP.
    Jun 30, 2015. 04:36 PM | 2 Likes Like |Link to Comment
  • Tesla's Superior Business Model May Justify Tesla's Stock Price [View article]
    @cparmerlee,

    GAAP and non-GAAP gross margins are close to the same, percentage wise.
    Jun 30, 2015. 04:28 PM | 2 Likes Like |Link to Comment
  • Tesla's Superior Business Model May Justify Tesla's Stock Price [View article]
    "How do you explain on page 118 of General Motors annual report: "Capitalized research expenditures" http://tinyurl.com/n9d...

    That is for taxes, not US GAAP. Looking at the table, a deferred tax asset for capitalized research expenditures would be a current expense under GAAP, but a future deduction under tax accounting. That's my interpretation. Thus for tax amounts accounted for under GAAP, there is a future deduction for taxes which lowers future taxes. For GAAP, it is considered a deferred tax asset because there is a future benefit for GAAP (lowered future taxes).

    I covered R&D under GAAP in this link:

    http://tinyurl.com/pbu...
    Jun 30, 2015. 04:22 PM | 2 Likes Like |Link to Comment
  • Tesla's Superior Business Model May Justify Tesla's Stock Price [View article]
    @Tech Talker,

    It's not an apples to apples comparison of gross margins to Porsche. Tesla reports it numbers under US GAAP, Porsche reports its numbers under International Financial Reporting Standards (IFRS). For gross margin, the two standards have material differences.

    Under US GAAP, all R&D must be expensed. I would argue that some development expenses of Tesla should be capitalized and amortized over 4 or more years, but GAAP takes a very simplistic approach and doesn't allow any capitalization. Under IFRS, capitalization of development expenses is allowed, and Porsche does capitalize some. What is expensed is expensed as cost of goods sold (COGS), which impacts Porsche's gross margin. So, to get an apples to apples comparison of the gross margin of Tesla and Porsche, you need to take out the R&D expenses that Porsche has charged to COGS.

    You state in the article link:
    "However, it is worth noting that Tesla does not actually amortize R&D because almost all of its R&D is not model specific, which is why it reports R&D under OpEx rather than COGS."

    Tesla does not capitalize and amortize any of its R&D because it is not allowed under US GAAP, not because its R&D is not model specific. If capitalization were allowed, Tesla could aportion its development expenses based upon some formula, if it is not model specific.
    Jun 30, 2015. 12:54 PM | 4 Likes Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    "I talk with people out here wondering how in the world you put up with tornadoes, and why would earthquakes of that magnitude be a problem."

    With tornadoes, we are talking about something created by nature. Scientists don't believe that is the case with most of the quakes. So, it makes sense to control what you can control. Also, with doppler radar, a person has at least 15 or 20 minutes to protect themselves, and usually 24 or more hours with weather forecasts of today. With an earthquake, do you know when and where it will strike, and do you have any time to protect yourself? I'll take my chances with a twister any day, versus a quake. I've lived in tornado alley, 63 out of 65 years of my life. I have actually seen and felt one twister. You are well protected from harm with a storm shelter built under ground and its inexpensive in relation to the overall price of a home.

    The quakes are viewed as a problem because (1) some, 4 in the past 30 days, have been 4.0 or greater, (2) prior to 2008 less than two magnitude 3.0 or greater quakes occurred each year, now it is two a day, (3) in 2011 there was a 5.6 magnitude quake that injured two and damaged 200 buildings in Prague, OK. Had that occurred in Oklahoma City, it probably would have been much worse, (4) Oklahoma has been slower than Arkansas, Ohio, or Colorado to respond to the increase in the seismicity, (5) the oil and gas industry is downplaying the risk and is still trying to deny they are responsible.

    What will be the response if a 6.0 or greater hits Oklahoma City, with loss of life, as well as significant property damage? Will the oil and gas industry seek to dodge that responsibility? What will you or they say if that should occur? What will be the media response in such an event? How will the nation view it?

    Take the blinders off and look at the situation objectively. What if you had young children in possible harm's way. Would you wait until a major catastrophe to try and do something about it, when it is believed to be man made and there may be something that can actually be done about it?

    As for accurate information, that generally occurs AFTER a disaster, not before. I'm not talking about panicking, but taking proactive steps to stop the quakes, to include stopping disposal of quake triggering amounts of water on or near fault lines that have been reactivated. Dispose of it some other way.

    In 2014, Oklahoma had three times the number of quakes as California. Three times as many.
    Jun 29, 2015. 10:12 PM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    @Craig Cooper,

    And if there is a magnitude 5 or greater in the next year, I will be revisiting your statements.

    When it comes to oil/gas companies doing the right thing and the government doing the right thing, you do understand why I am skeptical, I assume.
    Jun 29, 2015. 07:51 PM | Likes Like |Link to Comment
  • Linn Energy: The Earnings Reporter Edition [View article]
    Well, Kirby, are you buying more on the dip? The yield is now in excess of 13%.
    Jun 29, 2015. 07:02 PM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    D. Rockefeller,

    Is your post serious or sarcastic?

    Money overcomes a ton of objections? Even at the risk of lives lost? In Mother Russia, yes, here in the states, no.

    Tornados are not man made. The evidence points to the probability that the quakes are man made, meaning we may be able to control them. The fuss is about controlling what we can to prevent loss of life and property.

    I served 4 years in R.O.T.C. (with honors) and two years in the military. I knew the day I signed a contract (1971) that my life could be on the line. Everyone that serves today is a volunteer. They understand the same. Don't lecture me about the military. Did you serve?

    A "few" earthquakes? LOL
    Jun 29, 2015. 06:55 PM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    @Craig Cooper,

    "The second conclusion statement says that even though overall seismicity will increase there will not be a commensurate increase in large-magnitude earthquakes. As stated above, I personally believe that the likelihood of occurrence of large-magnitude quakes will decrease."

    Here is more up to date info than what I initially presented that supports what I am saying:

    "Drawing from the analysis presented in this study, we identified several factors that signify the potential for larger and more damaging earthquakes to occur in the future. Key findings include the following: (1) the majority of the faults in the region are favorably oriented relative to the regional compressive stress field (N85E) and thus susceptible to rupture; (2) earthquakes are shallow and primarily constrained to the upper portion of the crystalline basement (less than 6 km depth); (3) a substantial number of faults are relatively long (up to 10 km), and (4) in a few cases, earthquakes are occurring on well-known, subsurface faults that have the potential to produce larger earthquakes. Together these findings indicate an increased level of potential earthquake hazard in central Oklahoma."

    http://tinyurl.com/ow4...

    http://tinyurl.com/pf8...

    Published 4-23-2015. I stand by what I have said. The warning published in 2014 is still applicable. Nothing has changed, unless it has gotten worse. Mark_A doesn't know what he us talking about.

    FWIW, I have been following this via Oklahoma public tv for a year now.
    Jun 29, 2015. 06:29 PM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    @Mark_A,

    To make fun of such a serious issue is beyond my comprehension. IT seems obvious you don't care about Oklahomans are the real cause of the quakes.
    Jun 28, 2015. 09:42 AM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    I'm out. Believe what you will. It doesn't change the facts, and there will be more regulation of disposal of waster water, no matter what you think.
    Jun 28, 2015. 08:55 AM | 1 Like Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    @macombet,

    "The last three years we have seen a large increase of volcanoes and earth quakes."

    To quote you seems applicable here:
    "Sounds like a bunch of crazy people trying to use maybes of information to justify there information."
    Jun 28, 2015. 08:52 AM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    @macombet,

    All opinion based on nothing but bias. No credibility whatsoever. It's crazy not to think that the 600 times increase in earthquakes has a cause other than a change in naturally occurring seismicity rates.
    Jun 28, 2015. 08:28 AM | Likes Like |Link to Comment
  • Oklahoma Earthquakes: Is There A Liability And What Companies Are Impacted? [View article]
    @Craig Cooper,

    Have you read this?

    "The rate of earthquakes in Oklahoma has increased remarkably since October 2013 – by about 50 percent – significantly increasing the chance for a damaging magnitude 5.5 or greater quake in central Oklahoma."

    http://tinyurl.com/qd9...

    Or this?

    "We know that Oklahoma experienced 109 magnitude 3+ earthquakes in 2013 and five times that amount in 2014. The pace of earthquake activity has accelerated this year. The current average rate of earthquakes is approximately 600 times historical averages.

    While we understand that Oklahoma has historically experienced some level of seismicity, we know that the recent rise in earthquakes cannot be entirely attributed to natural causes. Seismologists have documented the relationship between wastewater disposal and triggered seismic activity. The Oklahoma Geological Survey has determined that the majority of recent earthquakes in central and north-central Oklahoma are very likely triggered by the injection of produced water in disposal wells."

    http://tinyurl.com/q5c...

    Even without a major quake occurring, are you aware of the shaking and rattling going on in OK, with some damage occurring as a result? We who have experienced it believe, based on our life experience of few to no earthquakes experienced prior to 2009, that the cause is the increase in waste water disposal, and that has been backed up by the USGS. We don't want anymore "induced" quakes. It's as simple as that. Oklahomans are rising up in anger over this problem, and the Oklahoma state government is having to address the issue because so many are impacted. This Texan supports those rising up because I have been on the receiving end of it as well.

    Obviously, those who are out of harm's way are going to have a different view than those who are, many anyway. Go find another academic argument to fight. Until you have experienced it, you really have no dog in the fight.
    Jun 28, 2015. 08:15 AM | Likes Like |Link to Comment
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