2008 May 29 | money news blog

29 05 2008

Programming As a Part of a Science Education?

Posted by: in Life and Science

An anonymous reader writes “I’m a fairly new physics professor at a well-ranked undergraduate university. When I arrived, I was surprised to discover there were no personal programming requirements for our majors. This has led to a series of fairly animated faculty curriculum conversations, driven by the question: to what extent should computer programming be a part of an undergraduate science education (in particular, physics)? This is a surprising line of questioning to me because in my career (dominated by research), I’ve never seriously even questioned the need. If you are a physics major, you learn to program. The exact language isn’t so important as is flow control, file handling, basic methods/technique, basic resource management, and troubleshooting. The methods learned in any language can then be ported over to just about any numerical or scientific computational problem. Read on for the rest of the reader’s questions and his experiences dealing with faculty who have their own ideas.

Read more of this story at Slashdot.

29 05 2008

NASA’s Educational Game Proposal Deadline Extended

Posted by: in Life and Science

NASA MMO Team writes “Due to the additional time required to respond to the number of questions that were raised during the NASA Massively Multiplayer On the web Educational Game RFP Briefing held on April 21, 2008 in Baltimore, MD, we have decided to extend the RFP Proposal response date to Monday, July 21, 2008 at 12:00 midnight EDT. … Please contact the NASA Learning Technologies Project Office at mmo@nasa.gov with any additional questions.” (NASA has set up a site with additional information on the NASA MMO Education Game project, too.)

Read more of this story at Slashdot.

29 05 2008

SoCal Selene Group Drops Google Lunar X Prize Bid

Posted by: in Life and Science

anzha writes “On Saturday, after the vaunted First Team Summit was completed in Strasbourg, The Southern California Selene Group announced publicly that they are dropping out of the Google Lunar X Prize. Citing very strong differences in opinions over how the X Prize was being run, the team felt they could no longer participate. On the flip side, the X Prize Foundation announced at the team summit that there are four new teams. With the drop out, there are now thirteen official competitive teams. Assuredly, there are more to come.”

Read more of this story at Slashdot.

29 05 2008

SmartMoney sees homebuilders poised for a nice recovery

Posted by: in Housing

Filed under: Forecasts, Management, Lennar Corp’A’ (LEN), Toll Brothers (TOL), Economic data, Housing

Despite the fact that the challenging housing conditions are still persisting, it looks like that some major housing companies are poised to see the light at the end of tunnel. SmartMoney underlines the fact that there has been some encouraging trend for homebuilders during the past few months.

Major names such as Toll Brothers Inc. (NYSE: TOL), Lennar Corp. (NYSE: LEN), Pulte Homes Inc. (NYSE: PHM), Hovnanian Enterprises Inc. (NYSE: HOV) and D.R. Horton Inc. (NYSE: DHI) showed a nice recovery attempt lately, but the National Association of Home Builders still warns investors to remain cautions regarding companies in the housing sector.

The National Association points out that, “the housing market has shown no evidence of improvement thus far,” and the sentiment index is close to a historical low.

Looking at investing in housing stocks, one analyst at T. Rowe Price, Josh Spencer, makes a two-way analysis. From his point of view, housing stocks have a lot of risk if we are speaking about their volatility, but they’re not as risky when referring to a long-term time horizon due to their current cheap value.

One point of interest for some analysts is Toll Brothers, which came with earnings of $1.23 billion for its April quarter. The company’s Chief Executive Robert Toll showed optimism related to its further recovery, while a Soleil Securities analyst lifted her price target on the stock to $28 from $24.

As the past moments have already proved, housing stocks have the potential to outperform difficult times. Just have some patience and be prepared for even more volatility, while staying close to the huge builders that have cash. Thus, you can witness some really nice gains using these housing stocks.

Eliza Popescu is a financial writer for the on the web investment advisory service Investor’s Observer.

29 05 2008

U.K. home prices in Might register biggest drop in 15 years

Posted by: in Housing

Filed under: International markets, Forecasts, Bad news, Housing

The venerable George Bernard Shaw once observed that the United States and Britain are two nations separated by a common language.

Well, in the initial decade of the globalization era, one could argue that the United States and Britain are two nations united by a common housing slump.

That’s because U.K. home prices plunged an alarming 2.5% in May 2008, Nationwide Building Society announced Thursday — the largest drop since 1991.

The U.K.’s median home price declined to173,583 pounds or $342,774. Prices are now down 4.4% in the past 12 months, according to Nationwide, the U.K.’s fourth-largest lender. Further, property values have declined for seven straight months, the longest consecutive drop since 1992.

U.K. housing slump mirroring U.S.?

London-based economist Mark Chandler told BloggingStocks Thursday there are new data points each week that recommend that those who felt the United Kingdom’s housing sector would fare superior than the U.S.’s during the economic downturn, are wrong.

“We’ve got this double-whammy acting on housing prices now, so it doesn’t look too good for home prices, near-term,” Chandler stated. “Demand is weakening and lenders are increasing mortgage approval requirements. Clearly that means we won’t see the robust demand we saw for about four years, which advocates an extended down cycle, much like in America.”

Further, even though Chandler doesn’t expect U.K. foreclosure rates to rival U.S. foreclosure rates during the U.K.’s down cycle, due to the lower percentage of investor-based, speculative residential properties in the U.K., but average and median home price declines might end up rivaling the U.S.’s, he said, due to what he called “a housing frenzy” that gripped Britain earlier in the decade.

“It seemed that everyone ‘discovered’ the benefits of home ownership in about a five-year period,” Chandler said. “Price increases in some neighborhoods were really quite breathtaking, and almost everyone realized that they couldn’t possibly maintain the feverish pace.”

Chandler, who as a husband and dad of two grade-school children is also in the market for a house, notes the example of neighborhoods in the Swindon - Bristol area, about 100-120 miles west of London. Home prices in several neighborhoods he’s sampled in these locales are decreasing at the rate of $1,500-$2,500 per month, “strong evidence of a pronounced housing slump,” he stated.

29 05 2008

Signs point to Fed rate increase

Posted by: in Housing

Filed under: Forecasts, Bad news, Economic data, Housing, Federal Reserve, Recession

It seems that the Fed just got done slicing rates. Now, it may want to raise them. Inflation appears to be getting bad enough so the the bureau could need to up interest rates to keep prices from overheating. According to Reuters, “Two Federal Reserve policy makers warned on Wednesday that interest rate increases might be needed before too long to curb inflation.” And, the FT writes,”A sell-off in the US bond market pushed the yield on 10-year Treasuries above 4 percent on Wednesday for the first time since January, as investors bet that pressure from record oil prices would force the Federal Reserve to raise interest rates this year.”

In other words, two different papers using two sets of reasoning to come to the same conclusion. Great minds thinking in the same direction but coming at it from different points of view. In all probability so many smart people are probably not wrong.

But, what about that recession? If credit is tight and housing markets continue to fail, where is the relief for consumers? Their spending did drive the economy for half a decade. If they don’t return to their old habits, how does the foundation of a recovery get built?

The answer might not be very attractive. Inflation may be cut down by Fed increases, and the lack of credit might drive the economy further into a deep downturn.

It may be as simple as realizing that both problems can’t be fixed at once.

Douglas A. McIntyre is an editor at 247wallst.com.

29 05 2008

Please pass the Heinz ketchup

Posted by: in Products and Services

Filed under: Earnings reports, Products and services, Commodities, Agriculture

Shares in H.J. Heinz Company (NYSE: HNZ) are trading at a 52 week-high, on the heels of a superior than expected earnings report. The AP reported that: “In the quarter, Heinz earned $194.1 million, or 61 cents per share, compared with $181 million, or 55 cents, a year earlier. Sales rose by 11 percent to $2.69 billion, driven by strong sales in Heinz’s top 15 brands. Prices rose 4.5 percent while sales volume went up by 1.2 percent.”

The company also raised its dividend by 9%. What’s interesting about the report is that we are finally seeing food producers be able to pass on some of their costs to consumers. This obviously will spell continued inflation pressures going forward, but for the food producer it provides some welcome relief. With the soaring costs of food materials, the ones making all the money are those that are producing the materials. Those that take the materials and add value to them are getting crushed. Until now they’ve had to eat much of the increase in production costs, thus adversely impacting their bottom lines. The fact that Heinz is trading at a 52 week high is a testament to solid management.

This group has the potential to move higher. If we were to get a drop in food material prices — nothing goes up forever — stocks like Heinz conceptually could benefit.

For long term investors looking for a contrarian play, you might want to take a look at the food group.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer’s fund has no position in any stock mentioned, as of 5/29/08.

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29 05 2008

Kraft’s Kool-Aid is still hip (and healthy)

Posted by: in Products and Services

Filed under: Products and services, Consumer experience, Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising, Kraft Foods’A’ (KFT)

Is there anything cooler than Kool-Aid? Kraft (NYSE: KFT) believes there’s, my friends. In fact, Kraft thinks a healthier Kool-Aid is pretty darn hip!

According to this AP article, Kraft wants to position the Kool-Aid brand to health-conscious moms as a beverage that is okay for children to consume. The food company will be adding vitamin E to one of the Kool-Aid varieties, and it has reformulated its sugar-free lineup to improve the taste. There’s also a new Kool-Aid product on the market called Burstin’ Waters that’s supposed to be relatively healthy.

The company actually has been pretty good about trying to make its products not as junky. As the article states, Kraft introduced an initiative a few years back to create a set of nutritional guidelines that would aid the company in making its portfolio more in tune with the current zeitgeist; indeed, moms everywhere seem to be getting sick of putting sugary, fat-inducing foodstuffs into the stomachs of their kids. Of course, I’m sure kids still get away with eating junk at times (it’s like an inalienable right of the youth); for the most part, though, consumer choices are shifting, and woe be the consumer-goods entity that does not respond. Just ask Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP). Those two have been kicking it into high gear when it comes to alternatives to sugary carbonated sodas. Pepsi and Coke now offer all kinds of waters and enhanced beverages; in Pepsi’s case, many of its salty-snack products are decidedly healthier. Coke purchased VitaminWater last year, and has been doing well with it. And with vitamins all the rage, Kraft would be smart to really promote the heck out of that vitamin-E addition.

From this point on, the public is going to increasingly demand food and drink of a higher quality, consumables that can promote wellness. Kraft needs to sell the public on its new Kool-Aid, especially since, no matter how much improved it is, it still is, well, Kool-Aid. It’ll never be the healthiest thing on the market, but with the right campaign, perceptions can change, and sales can grow. Kool-Aid is still a famous brand, and tiny evolutions like this can help it remain relevant.

Disclosure: I own shares of Coca-Cola; positions can change at any time.

29 05 2008

David Cook’s Billboard success nearly matches The Beatles

Posted by: in Products and Services

Filed under: Products and services, Consumer experience, Apple Inc (AAPL), Amazon.com (AMZN), Marketing and advertising

Care about it or not, “American Idol” season seven champion David Cook is off to an impressive begin with 11 songs entering Billboard’s Hot 100 chart this week, and 14 songs enter the magazine’s Hot Digital Songs, both records. Billboard notes that the Hot 100 placing is the most any artist has enjoyed on that chart since The Beatles scored 14 hits in 1964. Cook’s record is the first in Billboard’s Nielson Soundscan “era” (i.e. since 1991) and shatters Miley Cyrus’s 6-song debut in November 2006. Cook’s digital debut is also a record and beats out Cyrus again. According to Billboard, Apple Inc. ’s (NASDAQ: AAPL) iTunes Store withheld reporting digital sales until the show had ended.

Cook is also ready to enter the studio, according to E! On the internet. The winner signed to RCA Records, a Sony BMG label, and 19 Recordings for a new album in the fall. E! erroneously calls the new album Cook’s “debut”, when he released an independent album in 2006, but that album and its songs were pulled from Amazon.com (NASDAQ: AMZN) as he worked his way through “American Idol” competition.

Simon Fuller, “American Idol” creator, told E! that he “honestly believes that David has the potential to go on to become one of the most successful Idols of all time.” If early success and an independent album can hold fans until the fall, then Cook will certainly enjoy a large release. Regardless, “American Idol” winners and finalists albums always seem to do well at first. It’s only later that they lose steam or interest from their supposed fans. Still though, 11 chart debuts is impressive and Cook might never be in the same league as The Beatles, but his success might well come close to duplicating the Fab Four.