• curiouscat.com
  • About
  • Books
  • Glossary

    Categories

    • All
    • carnival (41)
    • chart (8)
    • Cool (35)
    • Credit Cards (45)
    • economic data (62)
    • Economics (439)
    • economy (126)
    • Financial Literacy (292)
    • Investing (324)
    • Personal finance (356)
    • Popular (43)
    • quote (194)
    • Real Estate (120)
    • Retirement (65)
    • Saving (90)
    • Stocks (158)
    • Taxes (51)
    • Tips (129)
    • Travel (7)

    Tags

    Asia banking bonds capitalism chart China commentary consumer debt Credit Cards credit crisis curiouscat debt economic data Economics economy employment energy entrepreneur Europe Financial Literacy government health care housing India interest rates Investing Japan John Hunter manufacturing markets micro-finance mortgage Personal finance Popular quote Real Estate regulation Retirement save money Saving spending money Stocks Taxes Tips USA

    Recently Posts

    • New Health Care Insurance Subsidies in the USA
    • Individual Stock Portfolio Investment Planning
    • Finding Great Investments Keeps Getting Harder
    • Huge Growth in USA Corporate Debt from 2005 to 2020
    • Retirement Portfolio Allocation for 2020
    • Tencent Gaming
    • Tucows: Building 3 Businesses With Strong Positive Cash Flow
    • The 20 Most Valuable Companies in the World – Jan 2019
    • 20 Most Popular Posts on the Curious Cat Investing and Economics Blog in 2018
    • An Inverted Yield Curve Predicts Recessions in the USA
  • Blogroll

    • Curious Cat Management Improvement Blog
    • Freakonomics
    • I Will Teach You to be Rich
    • Jubak Picks
  • Links

    • Articles on Investing
    • fool.com
    • Investing Books
    • Investment Dictionary
    • Leading Investors
    • Marketplace
    • Trickle Up
  • Subscribe

    • RSS Feed

    Curious Cat Kivans

    • Making a Difference

Investing and Economics Blog

FreeWave: Successful Company in Difficult Times

It is easy with the existing economic news to think things are bleak everywhere. But even in the current climate companies find success. Founded in 1993, FreeWave Technologies is a world leader in the innovative design and manufacture of ISM Band radios and wireless data solutions. Their data-transmitting radios span the globe from the Middle East to Mount Everest to the Amazon Rainforest to Antarctica to New York. They are used by defense contractors, oil and gas companies, city and county municipalities and industrial manufacturers.

The privately held company is based in Boulder, Colorado, the company offers network design, pre-installation engineering services and manufactures its own radios (manufacturing them in Boulder).

FreeWave’s increase in revenues of 112 percent from 2003 to 2007. The company has paid this bonus every six months since the first one was paid in July 1995. Over the past year, FreeWave has invested in expanding its facility to accommodate more staff; growing its manufacturing space and capabilities; dedicating more resources and technology to its product development; increasing its customer and partner training; and, investing in marketing and sales.

Boulder company shares $9 million with employees

The Boulder-based company says it has had profits every month since it hired its first employee in 1995. There have been no layoffs. Employees get company-funded retirement plans and bonuses based on profits and growth.

And there’s more: As part of a $113 million private-equity investment deal in 2007, FreeWave is sharing $9 million of investors’ money with its fewer than 100 employees as a reward for the company’s success. Shares are divvied up based on individual performance.

Related: Another Great Quarter for Amazon (July 2007) – Great Google Earnings (April 2007) – Curious Cat Investing Books – $60 Million Bonus – For all Staff – Family Business Gives $6.6 million in Bonuses to Workers

March 7th, 2009 by John Hunter | Leave a Comment | Tags: Economics, Investing

USA Unemployment Rate Rises to 8.1%, Highest Level Since 1983

The employment news in the USA continues to be very bad. We knew the news on job was going to be bad in 2009; still the actual news confirming those beliefs is not welcome. Of all the economic statistics for the health of the economy, employment is about the most important.

U.S. Unemployment Rate Jumps to 8.1 Percent by Debbi Wilgoren

The Bureau of Labor Statistics said the jobless rate rose from 7.6 percent in January to 8.1 percent in February, the highest rate in more than 25 years. An estimated 12.5 million Americans were unemployed in February, the data show, an increase of 851,000 since January. More than 4.4 million people have lost their jobs since the recession began in December 2007, U.S. Labor Secretary Hilda Solis said.

The government revised sharply upward the number of jobs the economy lost in December and January, showing a staggering 1.99 million jobs disappearing in the past three months. More jobs were lost in each of those months than in any single month since October 1949
…
The February data showed profound losses in the professional and business services sector, with 180,000 jobs gone. Some 168,000 jobs were lost in the manufacturing industry, with most of the decline in the durable goods sector. There were 104,000 construction jobs lost as projects stalled due to the collapse of the real estate industry and the ongoing credit crisis. The financial sector shed 44,000 jobs, retail lost 40,000 jobs and the leisure and hospitality industry reported 33,000 fewer jobs. Job growth continued, however, in the health-care sector.

Analysts say the pace of job cuts is likely to remain brisk for at least a few more months
…
The number of people working part time because they cannot find full-time employment rose by 767,000 in February to 8.6 million, the government said. The unemployment rate does not reflect people who say they would like to work full-time, but can only find part-time job

Related: Over 500,000 Jobs Disappeared in November – What Do Unemployment Stats Mean? – Bad News on Jobs – Poll: 60% say Depression Likely

March 6th, 2009 by John Hunter | 2 Comments | Tags: Economics, quote

Changing Shopping Habits

I think this article stretches pretty far to try and find a silver lining but these days it is hard to find anything positive: A silver lining to the economic crisis? by James Melik

“People are now understanding they are going to have to depend on each other – employees are deciding to take a day off work without pay, or even a pay cut, to avoid their colleagues losing their jobs – that’s kind of a new phenomenon,” says Mr Wallis. He believes there is a growing sense of community.

“People are trying to understand that we are all in this together, not just in an idealistic, altruistic way, but in a practical way,” he says. He is also concerned about how future generations will look after the environment. “We are stewards of fragile resources,” he says.

“That conversion to a green economy is more than structural, it is also spiritual and that is the chance this crisis offers us,” he says.

We certainly do need people to be more financially responsible in their spending habits. Poor spending habits have been a problem for quite some time, the poor economy just is now focusing more people on those bad habits.

Related: Trying to Keep up with the Jones – Can I Afford That? – Too Much Stuff – Americans are Drowning in Debt

March 5th, 2009 by John Hunter | Leave a Comment | Tags: Economics, Personal finance

House of Cards – Mortgage Crisis Documentary

A documentary of the mortgage crisis by CNBC: House of Cards. It is a bit slow and simple but still for people that don’t really understand the basics of what happened it is interesting.

Related: Nearly 10% of Mortgages Delinquent or in Foreclosure – Ignorance of Many Mortgage Holders (2007) – How Not to Convert Equity – mortgage terms

March 4th, 2009 by John Hunter | 1 Comment | Tags: Economics, Financial Literacy, Investing, Personal finance, Real Estate

I Wouldn’t Sell Oil at These Prices

Oil has fallen to $40 a barrel from nearly $140 less than a year ago. Now that $140 level was the result of a huge spike in the price. But if I owned a bunch of oil (as a country or a company) I sure wouldn’t want to sell it at $40. I would much rather just keep it in the ground and sell it later.

OPEC has reduced quotas in an attempt to react to the global recession. But it strikes me as bad management to sell your resources at these low levels. Now you might have to sell some to service debt and meet fixed expenses. But continuing to sell at these levels instead of just keeping it in the ground and waiting a year or two (or longer) just seems like a very shortsighted action.

Now you would have great difficulty acting on my opinion if you don’t plan ahead. To do so you would need to bank profit when you are selling at high prices so you can ride out low prices without being forced to sell to meet your obligations. And it seems many countries are unable to do that. And my guess is many oil company contracts require production based on what the country wants done.

It just doesn’t seem to me that the I would do much better waiting to sell my oil than sell it at these prices.

Related: Forecasting Oil Prices – Oil Consumption by Country – South Korea To Invest $22 Billion in Overseas Energy Projects – Curious Cat Science and Engineering Blog posts on energy

March 3rd, 2009 by John Hunter | 4 Comments | Tags: Economics, Financial Literacy, Investing

Manufacturing Contracting Globally

Global manufacturing recession continued in February. From the Institute for Supply Management, the USA is in the 13th consecutive month of contraction:

Manufacturing contracted in February as the PMI registered 35.8 percent, which is 0.2 percentage point higher than the 35.6 percent reported in January. This is the 13th consecutive month of contraction in the manufacturing sector. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

Japanese Factory Output Posts Record Drop in January

Japan says its industrial output plunged a record 10 percent in January, another sign the world’s second-largest economy is facing its worst economic recession since the end of World War II. January’s bad numbers break the previous record of 9.8 percent set just the month before.

European Manufacturing Contracts at Record Pace

A gauge of manufacturing activity declined to 33.5 from 34.4 in January, lower than an initial estimate of 33.6 published on Feb. 20. The index is based on a survey of purchasing managers by Markit Economics and a reading below 50 indicates contraction.
…
The manufacturing index for Germany, Europe’s largest economy, was at 32.1 in February, lower than the initially reported 32.2, according to a separate report. Italy’s dropped to 35 from 36.1 and the French gauge declined to 34.8 from 37.9, less than the initial estimate.
…
The International Monetary Fund predicts the euro area economy will contract 2 percent this year.

In Korea, industrial output shark 26% in January, the largest decline even (statistics available since 1970). A one month period is not very significant but with a 26% decline that is still huge. And the December decline was 19%

China appears to be slowing the least of any sizable manufacturer:

The CLSA China Purchasing Managers Index, produced by U.K.-based research firm Markit Group Ltd., came in at 45.1 in February, compared with 42.2 in January. The index registered a record low of 40.9 in November. A PMI reading below 50 indicates contraction.

It was the third straight month that the PMI came in higher than the month before, which provided some hope that China’s economy, which grew at its slowest pace in seven years in the fourth quarter of 2008, might be starting to stabilize. But economists are far from declaring an economic rebound.

Related: Manufacturing Employment Data from 1979 to 2007 – Top 12 Manufacturing Countries in 2007 – The Economy is in Serious Trouble – Japanese Economy Shrinks 12.7% – USA Job Growth (2007)

March 2nd, 2009 by John Hunter | 1 Comment | Tags: Economics

When Will the Recession Be Over?

6 months ago I figured we could hope than in late 2009 we would see the beginning of the recovery. I am much less optimistic about the later half of 2009 now. The initial reports for the last quarter of 2008 showed GDP Down 3.8%, the worst since 1982. That has now been updated to an annualized decline of 6.2%. Still the economy actually grew for all of 2008 by just over 1%, something I don’t think most people realize.

The New York Times has published the thoughts of several economists on When the Recession Will End, from the always true to the “dismal science” name, Jame Grant, “the end is unknown.” A. Michael Spence, 2001 Nobel Prize in Economics, “The short answer is not soon“:

The recession is global: exports, production and consumption are in high-speed descent. The headwinds are powerful because of excessive leverage, damaged balance sheets and the resulting tight credit.
…
Governments and central banks are the only major sources of credit, liquidity and incremental demand — private capital and sovereign wealth funds, having experienced losses, are largely sidelined. If governments are quick and clear in their intentions and intervene in a coordinated way in both the real economy and the financial sector, we will probably have an unusually long and deep global recession through 2010. If they don’t, it is likely to be worse than that.

Nouriel Roubini, this recession may last 36 months:

Today, as we enter the 15th month, it’s obvious that we are already in a painful U-shaped recession that has become global and will last at least until the end of the year — 24 months, the longest since the Great Depression. Even if the gross domestic product grows in 2010, it is likely to be no higher than 1 percent. And at that rate, with the unemployment rate rising toward 10 percent, we will still be substantially in a recession.

And from the Google CEO

But when looking at our economic decline, we can all agree on two things: we did not get here overnight and we will not recover tomorrow.
…
By the end of the year, we may see some growth, with gains in employment to follow a few months later.

I am much less confident that by the end of 2009 we will be in a recovery. That is still very possible, but I am much more worried we will not be. Frankly if we keep the decline in the 2009 GDP to under 2% I think that will be a success. And if the 2010 GDP declines less than 1% or increases I think we should be happy. Another key is how high the unemployment rate goes. It is almost certain to go significantly higher. If 2010 sees a return to the decent or good job growth that will be a huge success. But job growth the last 8 years has been horrible (500,000 more jobs lost).

Related: Uncertain Economic Times (March 2008) – The Economy is in Serious Trouble – What Should You Do With Your Government “Stimulus” Check? – Economic Fault: Income Inequality

March 1st, 2009 by John Hunter | 4 Comments | Tags: Economics, Personal finance

« Previous Page             Newer Posts »
Copyright © Curious Cat Investing and Economics Blog

    Personal Finance

    • Credit Card Tips
    • IRAs
    • Investment Risks
    • Loan Terms
    • Saving for Retirement
  • Archives

      All Posts
    • March 2021
    • January 2021
    • August 2020
    • March 2020
    • February 2020
    • January 2020
    • May 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • August 2018
    • May 2018
    • February 2018
    • January 2018
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    • December 2016
    • November 2016
    • October 2016
    • September 2016
    • August 2016
    • July 2016
    • June 2016
    • May 2016
    • April 2016
    • March 2016
    • February 2016
    • January 2016
    • December 2015
    • November 2015
    • October 2015
    • September 2015
    • August 2015
    • July 2015
    • June 2015
    • May 2015
    • April 2015
    • March 2015
    • February 2015
    • January 2015
    • December 2014
    • November 2014
    • October 2014
    • September 2014
    • August 2014
    • June 2014
    • April 2014
    • March 2014
    • February 2014
    • January 2014
    • December 2013
    • November 2013
    • September 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • April 2013
    • March 2013
    • February 2013
    • January 2013
    • December 2012
    • November 2012
    • October 2012
    • September 2012
    • August 2012
    • July 2012
    • June 2012
    • May 2012
    • April 2012
    • March 2012
    • February 2012
    • January 2012
    • December 2011
    • November 2011
    • October 2011
    • September 2011
    • August 2011
    • July 2011
    • June 2011
    • May 2011
    • April 2011
    • March 2011
    • February 2011
    • January 2011
    • December 2010
    • November 2010
    • October 2010
    • September 2010
    • August 2010
    • July 2010
    • June 2010
    • May 2010
    • April 2010
    • March 2010
    • February 2010
    • January 2010
    • December 2009
    • November 2009
    • October 2009
    • September 2009
    • August 2009
    • July 2009
    • June 2009
    • May 2009
    • April 2009
    • March 2009
    • February 2009
    • January 2009
    • December 2008
    • November 2008
    • October 2008
    • September 2008
    • August 2008
    • July 2008
    • June 2008
    • May 2008
    • April 2008
    • March 2008
    • February 2008
    • January 2008
    • December 2007
    • November 2007
    • October 2007
    • September 2007
    • August 2007
    • July 2007
    • June 2007
    • May 2007
    • April 2007
    • March 2007
    • February 2007
    • January 2007
    • December 2006
    • November 2006
    • October 2006
    • April 2006
    • March 2006
    • January 2006
    • December 2005
    • October 2005
    • July 2005
    • May 2005
    • April 2005
    • April 2004