Tuesday, March 31, 2015

Forget What You've Heard: Reed Hastings Is Still a Recluse

Netflix (NASDAQ: NFLX  ) chief Reed Hastings isn't doing enough to take advantage of social media.

Sound crazy? Yes, I know the SEC has accused him of oversharing only to back off later. That some companies are now posting material disclosures to Facebook (NASDAQ: FB  ) and Twitter, turning the 140-character news network into a sort of carnival freak show, is undeniably Hastings' fault.

Yet neither Facebook nor Twitter is useful when it comes to social discovery of interesting televised content. At least not the way Netflix handles it.

The author's social settings. Source: Netflix.com.

See the problem? My best chance of knowing what my friends are into is to be tuned into Facebook at the precise moment they're watching something. Good news for digital stalkers, I suppose. Not so much for me and, I suspect, most investors.

Enter GetGlue, a specialized social network for TV and movie watchers. Whereas LinkedIn (NYSE: LNKD  ) Today aims to provide members with intelligence about the most relevant trends and topics in their fields of expertise, GetGlue offers a customizable view of the entire televised zeitgeist.

For example, GetGlue keeps track of shows that are "trending" at certain times. Think of it as a looking glass into ratings but with the added benefit of including on-demand content. Sunday night, Arrested Development ranked sixth despite being available only on-demand. The Bluths even outdueled the formidable Starks and Lannisters of HBO's Game of Thrones.

Isn't this precisely the sort of information Netflix needs? Hastings and his team use data to achieve a deep understanding of viewer wants and desires, which, in turn, informs how the company bids for existing shows and prices originals.

Importantly, GetGlue shouldn't be too expensive to acquire. Last November, competitor Viggle successfully bid $85 million for the start-up, only to see the founders pull out of the deal in January. Fortunate, since Netflix would be the better partner -- and with $325 million more cash than debt and a smoking-hot stock price, also able to pay a little more.

You've been a recluse for too long, Mr. Hastings. Time for Netflix to join the social media mixer. Do you agree? Let us know what you think of GetGlue and the future of TV in the comments box below.

A toe in the stream
For further analysis of how Netflix is changing entertainment, tune into our newest premium research report in which we take you inside Netflix's entertainment empire and tell you what the streaming sensation is really worth, and whether the stock deserves a place in your portfolio. Access your report now by clicking here.

Hugh Jackman Is No Robert Downey Jr.

Comic book summer is upon us, and that means more blockbusters in the making. Walt Disney (NYSE: DIS  ) already has one in Iron Man 3. Will The Wolverine, due July 26 from News Corp.'s (NASDAQ: FOXA  ) 21st Century Fox, cash in, too?

We have little to go on so far. The U.S. trailer depicts a confusing mix of action and drama while teasing a legendary comics storyline in which the X-Man remakes himself during a sojourn to Japan. The character would go on to sell millions of comics in the decades following, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova.

On screen, actor Hugh Jackman plays Wolverine with the same gusto Robert Downey Jr. brings to the role of Tony Stark and Iron Man. But at the box office, there's no comparison: X-Men Origins: Wolverine generated just $373 million worldwide in its 2009 debut versus $585 million for Iron Man the year prior. Premium showings could pull The Wolverine above that mark, and enrich News Corp. shareholders, but only if the story holds up. Right now, Tim says, there's no way to tell if it will.

Who's your favorite comic book-protagonist actor: Downey Jr. or Jackman? Why? Please watch the video to get Tim's full take, and then tell us what you expect from the Wolverine and whether you'd be a buyer of News Corp. at current levels.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Sunday, March 29, 2015

3 Reasons to Buy General Motors Today

General Motors (NYSE: GM  ) became one of America's most unpopular companies in the wake of its $49.5 billion taxpayer-funded bailout. But there are more and more signs that GM is following in Ford's (NYSE: F  ) footsteps and becoming a great turnaround story. In this video, Motley Fool contributor John Rosevear lists three good reasons to consider buying GM now, and goes into detail about the current state of GM's push to become a top global contender.

Should you really buy GM?
Few companies lead to such strong feelings as General Motors. But ignoring emotions to make good investing decisions is hard. The Fool's premium GM research service can help, by telling you the truth about GM's growth potential in coming years. (Hint: It's even bigger than you think. But it's not a sure thing, and we'll help you understand why.) It might help give you the courage to be greedy while others are still fearful, as well as a better understanding of the real risks facing General Motors. Just click here to get started now.

Friday, March 27, 2015

Everything You Need to Know About the Wells Fargo Earnings Report

Mr. Market's expectations can be awfully greedy sometimes. After reporting a record quarterly profit of $5.2 billion for the first quarter of 2013, shares of Wells Fargo (NYSE: WFC  ) traded lower.

However, here at the Fool, we do not let earnings from one quarter cloud our judgment about the overall position of the company. Wells Fargo currently trades at the richest multiples compared to its competitors JPMorgan Chase, Bank of America, and Citigroup, and these quarterly results confirmed why. While others are still cleaning up legacy issues and determining long-term strategies, Wells Fargo is continuing to fire on all cylinders and build relationships.

3 reasons to love Wells Fargo's earnings
While the market sold off the stock upon the earnings release, there are some things to love about the bank's current position:

1. The profit engine: The quarterly income was the highest in the bank's history, and the company has increased EPS for 13 consecutive quarters.

2. Flowing credit: Although overall loan demand remains tepid, Wells Fargo grew its total loan book by 4.2%, mostly in the commercial lending space.

3. Capital cushion and massive deposit base: Retail deposits continue to flow into the giant money center, and capital ratios sit at healthy levels that allow the bank to engage in share buybacks and dividend increases.

To learn more about these areas of strength, click here to read Amanda Alix's full analysis.

3 reasons to hate Wells Fargo's earning
Despite the record earnings, Wells Fargo is not spared from some damaging industry headwinds:

1. Declining mortgage business: As expected, Wells Fargo's mortgage banking income dropped 9% from the previous quarter as volume decreased and profit margins were squeezed.

2. NIM compression: The bank's net interest margin crept lower as the lower interest rate environment resulted in fewer investment opportunities as deposits grew.

3. Lower overall revenue: Despite beating earnings estimates, the bank missed overall revenue expectations as they continue to search for new revenue opportunities.

To learn more about these potential weaknesses, click here to read John Maxfield's full analysis.

Listen closely
One of the more encouraging topics covered during Wells Fargo's earnings conference call was the improving housing market. While overall volumes declined as refinancing acticvity slowed, home purchase volume in the bank's pipeline was a bright spot.

"A year ago, our pipeline starting the second quarter was $79 billion; and now we're at $74 billion. And 35% of that $74 billion pipeline is purchase money activity. That is an increase from about 24% a year ago."

–Tim Sloan, CFO

Although lower volume will undoubtedly hinder growth in the bank's mortgage banking segment, more Americans purchasing homes is a positive sign for the broader U.S. economy, which ultimately strengthens Wells Fargo.

To read more key quotes from Wells Fargo's earning call, click here.

Foolish conclusion
Despite the market's slightly negative reaction to the earnings report, Foolish investors have many reasons to be encouraged. Wells Fargo's profit engine will surely continue to generate steady earnings, which will allow for incremental dividend increases as well as share buybacks. While the overall company will certainly perform in step with the broader U.S. economy, Stumpf's leadership should continue to give the bank the edge as opportunities arise.

Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.

Thursday, March 26, 2015

U.S. Dollar Unchanged As Trading Winds Down

The U.S. Dollar is trading unchanged late Monday, off the session highs. March U.S. Dollar Futures are trading at 92.15, up 0.03 as the session winds down.

In other Forex markets, the AUD/USD is trading at 0.8166, down 0.0023; he Dollar-Swiss (USD/CHF) is trading at 1.0139.

Posted-In: Futures Forex Markets

© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Monday, March 23, 2015

The U.S. Oil Export Surge Is Coming

My wife and I just returned home from a family event in Seattle, and something there caught my eye that will have a big effect on energy investors.

Something is now afoot in the Pacific Northwest that is going to change how we think about pricing oil - and this new wrinkle is going to provide a range of fantastic opportunities for investors.

It revolves around the prospect of U.S. oil exports and the changes that will be needed to make it all happen...

Preparing for a Generational Change in U.S. Oil Exports

These preparations are already underway. In fact, entire networks are now being restructured to increase the transport of oil to the West Coast for export to Asia.

Of course, this will still require an act of Congress, since the government restriction against exports in the wake of the oil embargo of the early 1970s is still on the books.

But as I have mentioned before, that change is certainly coming.

US Oil ExportAnd from the looks of what is taking shape among pipeline administrators, tanker companies, port authorities, and railways, the broad-based assumption is that this decades-old policy will be revised soon. Local officials in port cities throughout the Pacific Northwest are counting on it.

But it's the companies that will haul, offload, and transport the oil that are moving first. Several major industry meetings are now scheduled on the West Coast on the subject, whereas last year there were none.

According to veteran officials at the Port of Seattle, the expected revisions will be one of the largest changes in American export policy (and shipping priorities) in several generations.

Of course, the West Coast will not be the only area affected. But it does have the advantage of being the ready loading point for deliveries to Asia. And the Asian market is where the energy expansion over the course of the next two decades will be the most pronounced, offering the highest profit potential and greatest pricing differentials available anywhere on the market.

All of which adds up to the massive move that is now taking shape to start sending crude out of the United States.

Growing U.S. Production Alters the Balance

What makes all of this possible, of course, is the resurgence of U.S. oil production. The onset of huge unconventional (shale, tight, heavy) oil reserves has caused our concerns about sufficient oil supplies to become a non-issue.

Meanwhile, the market offering the highest rate of return is foreign, especially in those regions with developing economies and accelerating populations. This is hardly news, since these regions of the world have been driving oil prices for some time now.

What changes the equation this time around is where that supply will be sourced.

As it stands, Asia currently pays a premium for deliveries of Saudi and other OPEC oil. Put simply, it costs more for an Asian end user to secure crude than for the equivalent consignment to be delivered just about anywhere else on earth.

Despite everything that has taken place, it is still cheaper to receive a crude oil tanker in Galveston than it is in Japan, China, or India. The so-called "Asian premium" has long been a fact of life to do business there.

However, some new additions are now about to upset that balance.

One is the growing use of the East Siberia-Pacific Ocean (ESPO) export pipeline, which moves Russian oil for export and also has a spur for the direct transit of crude by land to Northwest China.

As this develops, ESPO will also introduce a new crude benchmark rate (also named ESPO). In fact, these flows have already become sufficient enough to justify pricing quotes from Argus in London. What's more, the oil is of better quality than Saudi crude (lower sulfur content) and, once the confidence in regular deliveries builds, it should begin to cut into the additional price paid by Asia.

But this is not going to happen overnight.

Even still, Asian consumers would certainly welcome another major oil exporter that was in a position to compete with OPEC and Russian sources. The continent is certainly going to need all of the oil it can secure.

Shifting the Flow of Oil to the Pacific Northwest

That's why what's happening in places like Seattle is so important.

The combination of U.S. and Canadian production becoming available - all without sacrificing any domestic needs - is tailor-made for where the energy balance is heading. As the energy balance shifts toward Asia, so also will the exports.

Already, the movement of crude south from Canada to the United States by rail has emerged as a major change in North American transit corridors. Plans are underway to build central offloading facilities to move oil from railcars and pipelines to tankers headed across the Pacific.

At some point, the Keystone XL pipeline will be approved and construction of the last major leg in the largest North American crude pipeline network will finally get underway.

By that point, the ability of the United States to be effectively self-sufficient in both oil and natural gas will have become a reality. By 2025 (maybe even sooner), the American market will only need to import about 30% of its daily requirements. That's down from almost 70% only a few years ago.

Those imports will come primarily from Canada. Other sources will only be utilized if they benefit from cost-side considerations.

As a result, the United States will be left with significant additional production over and above what is needed. So there is no longer any strategic reason to prevent U.S. oil exports.

In fact, there is too much to gain from an employment and tax base perspective, which means the political pressure to allow exports will grow.

As the policy change meets the infrastructure development, a number of companies all along this new value chain will become great targets for investment.

Also, as we begin to see a short-term ceiling forming for oil prices, do not forget these simple facts.

First, as I recently explained, making profits in the oil sector is no longer dependent upon the rising price of oil.

Second, the United States will have plenty of excess oil for some time to come.

Finally, even with the changes taking place in the trading balance, prices (and therefore profits) will be higher in Asia.

All of these conditions will set the stage for the coming U.S. oil export surge... and our ability to profit from it.

And don't forget: The Gulf and East Coasts are about to benefit big time from the export of liquefied natural gas (LNG) to Europe and Asia.

It all adds up to be an exciting time for energy investors.

More from Dr. Kent Moors: Making money in the energy sector is no longer pegged to higher oil prices. But it does require a different approach. This is the best way to profit from crude oil prices right now...

Saturday, March 21, 2015

Five Reasons Celgene Could Gain 20%

RBC Capital Markets analyst Michael Yee and team explain why they think Celgene (CELG) is heading higher into 2015:

1. We think Celgene will go higher because Phase II Crohn’s data in October will look much better than Humira, plus it’s in oral form…we have a GED-0301 model and APP supporting $1B peak base-case and bulls are even higher than that.

2. Actavis (ACT) settlement: Based on recent commentary by Celgene and separate RBC notes on prior Actavis mgmt meetings, we expect rational market behavior. Case discovery ends in Feb ’15 and opens the door to settlement before Court begins mid-15.

3. We see 23+ partnered pipeline assets and are most positive on Phase I/II MOR202 anti-CD38 for myeloma with data in 2015, and others such as Acceleron Pharma (XLRN), Agios Pharmaceuticals (AGIO), Epizyme (EPZM), Concert Pharmaceuticals (CNCE) (just started Phase I for next-gen Revlimid).

4. Celgene continues buying back stock: $475M in Q2 and $2.1B YTD with $3.9B left. We have high confidence this will get completed by YE15 and they’ll open a new authorization.

5. We continue to think 2020 guidance will occur at some point after settlement. Our model can get to $10/share in 2020, so a 15-18x PE multiple can see $180 over the next few years. Bulls with more aggressive buybacks and more margin expansion can get even higher.

Yee and team raised their Celgene target to $115 from $100, 21% higher than today’s price.

Shares of Celgene have gained 0.5% to $94.89 at 12:04 p.m. today, while Actavis has dipped 0.1% to $244.28, Acceleron Pharma risen 1.4% to $29.15, Agios Pharmaceuticals has jumped 7.4% to $68.46, Epizyme has advanced 2% to $27.88 and Concert Pharmaceuticals is up 2.3% at $13.51.

Thursday, March 19, 2015

5 Great American Stocks to Buy

LinkedIn Logo RSS Logo James Brumley Popular Posts: Mannkind (MNKD) – Right Stock, Wrong TimeThis Year’s 5 Hottest Marijuana Stocks5 Great American Stocks to Buy Recent Posts: 5 Great American Stocks to Buy Mannkind (MNKD) – Right Stock, Wrong Time Gold Outlook for Q3 – Don’t Trust the Rise in Gold Prices, GLD View All Posts 5 Great American Stocks to Buy

It's that time of year again — time to celebrate the birth of our nation.

iStock 000005692578 Small 300x199 5 Great American Stocks to Buy Source: ©iStock.com/Squareplum

The most common way of observing Independence Day typically involves fireworks and grilled food enjoyed with friends and family.

For investors, though, what's more patriotic than looking for a few great American stocks to buy? After all, even with all the nation's challenges, there's still nothing quite as compelling as good ol' American corporate spirit.

But which American stocks are the best stocks to buy here in the shadow of the 4th of July? There are plenty of strong possibilities out there to be sure, but five classic American names top the list.

In no particular order …

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Great American Stocks to Buy – Apple (AAPL)

apple1 5 Great American Stocks to BuyIs it cliche by this point to say Apple (AAPL) is one of the quintessential American stocks to buy?

Of course it is, but that doesn’t mean it's not an accurate assessment.

Apple’s iPhone line is the most popular single brand of smartphones sold in the U.S., and though the technological leaps between each release of the iPhone are getting smaller, demand for each iteration of the smartphone somehow seems to be bigger than it was for the prior version.

That's not the only reason Apple belongs on a list of American stocks to buy, however. There's outright value here. Even with the 36% run-up for AAPL stock over the past 12 months, shares are still valued at a palatable trailing price-to-earnings ratio of 15.7.

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Great American Stocks to Buy – Coca-Cola (KO)

Coca Cola 5 Great American Stocks to BuyCoca-Cola (KO) doesn’t just dominate the country's soda market. It established the soft drink category, and has largely defined it over the course of its 128 years of existence.

As it stands right now, America — and the world, for that matter — simply prefer Coke's products to all other soft drinks. For perspective, sales of Coca-Cola made up 17.4% of the United States' soda industry's sales in 2013. In the number-two spot was Diet Coke, with 9%. Pepsi-Cola only enters the picture in the No. 3 slot, with a market share of 8.9% … and this despite the fact that Pepsi tends to win taste tests.

That's the power of branding.

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Great American Stocks to Buy – Harley-Davidson (HOG)

Harley Davidson HOG logo 185 5 Great American Stocks to BuyIf it's good enough for iconic Americans like Jay Leno, Elvis Presley and Evel Knievel in addition to fictional folks like Wyatt from Easy Rider and Captain America himself, then Harley-Davidson (HOG) is easily one of the best American stocks to buy.

And before Harley-Davidson is written off as an increasingly irrelevant supplier of transportation, know that the company is bringing its so-called "hogs" into the 21st century, recently unveiling an electric motorcycle. No, they don't have the classic chrome-overload look and throaty sound, but the new electric Harleys are still cool in their own right.

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Great American Stocks to Buy – Procter & Gamble (PG)

ProcterGambleLogo 5 Great American Stocks to BuyWhat do Bounty paper towels, Crest toothpaste, Gillette razors, Charmin toilet paper and Ivory soap all have in common? They're all classic American brands most of us remember always seeing on store shelves, as well as in our homes.

If they were to go away, a piece of our national history would go away too.

That's not the most relevant answer to investors, however. Those five brand names, along with dozens of other smaller but just is fondly-memorable brands, also all fall under the Procter & Gamble (PG) umbrella and give the company a reliable baseline of revenues year in and year out.

The dividend yield of 3.2% isn’t too shabby, either.

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Great American Stocks to Buy – Cummins (CMI)

cummins 5 Great American Stocks to BuyAn engine manufacturer may not be the most riveting investment idea out there, but what Cummins (CMI) lacks in pizzazz it more than makes up for with raw marketability. Its engines are known for being reliable, which is why you'll find them being used in a variety of ways, ranging from powering diesel generators to pulling tractor trailers around.

There's nothing more American-picturesque than an 18-wheeler driving into the sunset.

What makes CMI one of the top American stocks to buy here and now, however? Not only are Cummins engines reliable, they're now remarkably fuel-efficient.

The recently unveiled Cummins/Peterbilt tractor is reported to be 75% more fuel-efficient than other rigs on the road, achieving 10.7 miles per gallon of diesel fuel vs. the more typical 6 miles per gallon other heavy-duty hauling trucks get. That translates into a huge savings for trucking companies … another American ideal.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Monday, March 16, 2015

IDC Provides Good News for Hewlett-Packard

Hewlett-Packard (NYSE: HPQ  ) is a company still searching for a turnaround. After a tumultuous past marked by a revolving door of executives, former eBay head Meg Whitman came in to right the ship. After instituting many changes and marking down past acquisitions, Whitman promised a turnaround for HP -- one that hasn't quite materialized yet. 

The main problem is that HP is tethered to the declining PC market. But a recent IDC report gives a small bit of respite for the beleaguered PC maker. IDC reports the PC Monitor market isn't shrinking as much as anticipated in the first quarter of 2014. And while this only one part of a huge market, the news is mildly encouraging for PC makers.

Motley Fool tech analysts Jamal Carnette and Nathan Hamilton discuss this for Hewlett-Packard investors. Jamal states that this was an encouraging report for HP; HP increased its unit shipments nearly 9%. So while this doesn't lead us to think this is the turnaround HP investors are looking for, it does point toward more favorable industry headwinds than analysts have been expecting. 

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

GM recalls 106,000 more vehicles

chevy camaro 2012 The 2012 Chevrolet Camaro is part of a new recall from GM. NEW YORK (CNNMoney) The list of General Motors recalls keeps getting longer.

The automaker issued four more recalls Friday, adding 105,688 vehicles to the more than 15.8 million cars and trucks it has recalled worldwide this year.

The new recall affects about 36,000 vehicles including the 2012 Buick Verano, Chevrolet Camaro, Cruze and Sonic, which have a problem that can prevent the airbag from deploying in a crash. The flaw has been linked to one crash where someone suffered an injury.

A separate issue that could prevent the passenger airbag from deploying properly affects 87 Chevrolet Sparks from model years 2012 and 2014, as well as Buick Encores from model year 2013. Another airbag issue affects 37 Chevrolet Corvettes from model year 2014. Neither of those problems have been linked to a crash, the company said.

The largest, but less serious recall issued Friday affects 70,000 vehicles including some Chevrolet Silverado LD and HD models, as well as GMC Sierra LDs, Tahoes, Suburbans and Yukons from model years 2014 and 2015. They have a problem that could disable the audible chime that warns drivers and passengers that a front seat belt is not buckled or that the driver's door is opened while the key is in the ignition. GM is not aware of any crashes or injuries related to the issue. It affects

GM (GM) will send letters to customers letting them know when they can bring their vehicles into a dealership to be repaired.

The new recalls come one day after the company released an internal report examining why it took more than a decade to recall 2.6 million cars for a faulty ignition switch. That problem has been linked to at least 13 deaths. GM CEO Mary Barra announced that 15 employees have been dismissed and five more have been disciplined over the matter.

Tuesday, March 10, 2015

Chinese tourists boost U.S. businesses

chinese us tour

From hotels to tour operators, U.S. businesses are looking to cash in on a surge of Chinese tourists.

NEW YORK (CNNMoney) Last year, thousands of Chinese tourists flocked to Yellowstone National Park to view the mountains, the buffalo and Old Faithful.

Later, at least 1,600 trekked to the Ranch at Ucross, some 200 miles to the east, where they feasted on burgers made from said beast, baked beans and biscuits. Following lunch, they were treated to a demonstration of rodeo-style riding by 14-year-old Katie Wilhelm.

"She takes off with that big American flag in her stirrup, and they go crazy," said ranch owner Judie Blair. "All the political issues between the two countries just evaporate."

Blair is one of a growing number of U.S. business owners looking to capitalize on the surge in Chinese tourism to the United States.

Spurred by increasing urbanization, rising levels of disposable income and relaxed travel restrictions, Chinese visitors to the United States jumped from under 400,000 in 2007 to almost 1.5 million in 2012, according to the U.S. Commerce Department. The Chinese spend more traveling than any other nation: In 2012, they spent almost $9 billion in the United States.

Blair hosted over 80 buses of Chinese tourists at the three hotels she owns in Cody, Wyo., last year. It's a small but rapidly growing part of her family-run business, Blair Hotels, which also includes the ranch. This year, she's expecting 160 buses, and over 200 are already booked for 2015. The increase in Chinese tour groups has helped offset losses from other Asian countries.

Cody (founded by William "Buffalo Bill" Cody) offers easy access to Yellowstone -- which is hugely popular with Chinese tourists thanks to an Chinese television program on U.S. National Parks, said Blair.

For the last five ye! ars, she's been attending tourism trade shows to meet with operators of Chinese tours and tout her properties and the local activities. Other than translate a few brochures and a local promotional video into Mandarin, she said she doesn't have to do much to cater to the Chinese crowd. She used to serve a classic Chinese breakfast -- a kind of rice porridge known as congee -- but she said her Chinese guests clamored for bacon and eggs.

"They ooh and aah over the little packs of jelly," she said. "They don't want to be treated like Chinese. They want the full American experience."

At the ranch -- three hours east of Cody -- Chinese tourists stop for lunch on their way from Yellowstone to Mount Rushmore -- part of a popular bus loop that starts in Denver or Salt Lake City and runs through parts of the Rockies. Blair hopes the Chinese tour groups will soon start spending the night at the ranch, which is a more upscale property.

Not surprisingly, other popular U.S. destinations include Los Angeles, New York City, Washington D.C., Las Vegas and Niagara Falls, said Nick Hentschel, head of business development at AmericanTours International.

Hentschel's company is also trying to tap the Chinese tourism market, and Chinese patrons now make up nearly 20% of the tour operator's business.

The company is partnering with big Chinese-based tour operators to increase its businesses, and offers cross-country tour packages popular with Chinese customers.

Paris vs London: Wooing Chinese tourists   Paris vs London: Wooing Chinese tourists

Shopping is the number one activity Chinese nationals enjoy in the United States, according to the Commerce Department.

It's so popular in Los Angeles that some stores on fancy Rodeo Drive now get 60% of their business from Chinese cust! omers, sa! id Karissa Fowler, a spokeswoman for the Beverly Hills Conference & Visitors Bureau. Some stores have even started accepting UnionPay, a credit card popular in China.

In addition to the touristy things, what the Chinese like most about coming to America is seeing the everyday stuff, said Hentschel. His company arranges visits to places like grocery stores or the homes of company executives. The Chinese, he said, love to see how Americans live.

What they complain about the most: The smoking bans. To top of page

Drones poised to transform agriculture

WASHINGTON — Drones are quickly moving from the battlefield to the farmer's field — on the verge of helping growers oversee millions of acres throughout rural America and saving them big money in the process.

While much of the attention regarding drones has focused recently on Amazon and UPS seeking to use them to deliver packages, much of the future for drones is expected to come on the farm. That's because agriculture operations span large distances and are mostly free of privacy and safety concerns that have dogged the use of these aerial high-fliers in more heavily populated areas.

The Association for Unmanned Vehicle Systems International, the trade group that represents producers and users of drones and other robotic equipment, predicts that 80% of the commercial market for drones will eventually be for agricultural uses. Once the Federal Aviation Administration establishes guidelines for commercial use, the drone industry said it expects more than 100,000 jobs to be created and nearly half a billion in tax revenue to be generated collectively by 2025, much of it from agriculture. Iowa, the country's largest corn and second-biggest soybean grower, could see 1,200 more jobs and an economic impact topping $950 million in the next decade.

"It is endless right now, the applications in agriculture," said Kevin Price, a former professor at Kansas State who left the university this month to join RoboFlight, a Denver-based company that sells drones and analyzes the data collected on corn, soybean and other field crops. Farmers "are going to be able to see things and monitor their crops in ways they never have before. In the next 10 years almost every farm will be using it."

Today, satellites, manned planes and walking the field are the main ways farmers monitor their crops. But these methods often can be incomplete or time consuming, and when data is collected it can take a long time to process and analyze. As a result, it can be difficult or impossible for the farmer to react t! o a problem like a disease outbreak before it's too late or the costs to treat it have soared.

Drones — which range in cost from $2,000 for a plane the farmer puts together up to around $160,000 for a military-style device — are equipped with infrared cameras, sensors and other technology controlled by a pilot on the ground. The sticker shock may be steep, but backers of the technology say the data they collect — from identifying insect problems, watering issues, assessing crop yields or tracking down cattle that have wandered off — help farmers recover the investment, often within a year.

Farmers also can use drones to tailor their use of pesticides, herbicides, fertilizer and other applications based on how much is needed at a specific point in a field — a process known as precision agriculture — saving the grower money from unnecessarily overusing resources while at the same time reducing the amount of runoff that could flow into nearby rivers and streams.

Brent Johnson, a corn and soybean farmer in Calhoun County in central Iowa, purchased a drone in 2013 for $30,000 that is already paying dividends on his 900-acre farm. He's used the aircraft, which covers about 80 acres an hour, to study how yields on his property are affected by changes in topography. And last growing season he identified some areas where his corn stands were not strong enough, information he's going to consider in future plantings when he decides whether to replant or avoid the acreage all together. This year he's going to scout early for any problems and use the data he collects to help determine when to sell his crops.

"I'm always looking for an advantage, looking for how I can do things better," said Johnson, who also owns a precision agriculture company.

While some farmers could join Johnson and buy their own drones, most are expected to hire companies that specialize in this niche market. A major reason to hire someone instead of buying is the extensive training needed to operate th! e costly ! piece of machinery and the complexity of flying it.

RoboFlight, which opened a facility in Des Moines this month to house data it collects from surveying land for farmers, has positioned itself to sell drones in much the same way as General Motors works with its dealers to peddle cars. The company has pacts in place throughout nearly a third of the United States with John Deere dealers who will showcase the devices and sell services like training and hardware right next to the big green tractors and combines displayed in their showrooms.

Phil Ellerbroek, director of sales at RoboFlight, declined to give specific sales data for 2014 but said the firm is on pace to post "triple-digit growth in both hardware and (drone) sales." The company also has seen strong demand from farmers looking to RoboFlight to survey their land. Since it first started signing contracts in January, RoboFlight has inked nearly 400,000 acres. The pace of orders from farmers and ranchers has increased since then.

"Our phones are continually ringing," said Ellerbroek.

Still, he said for drones to have a meaningful and long-lasting impact in agriculture, they need to be retrofitted with additional devices to collect more information such as thermal sensors to identify early signs of plant stress that can later be parsed, analyzed and used by farmers.

"We need to do more than just generate pretty pictures," he said. "Unless you have usable data, it's all noise. Despite how attractive UAVs look, and the potential is there, if we don't help (translate that information) into actual data UAVs could fall into a fad."

For the most part, drone use has been largely relegated to the military, but law enforcement and other government agencies can apply to the FAA for special permission to use them in civil airspace. But the moves have raised privacy concerns. This year alone nearly three dozen states are considering legislation that would place restrictions on drone use and data collection. Lawmakers say they ! feel comp! elled to start working on the issue as a wave of drones are starting to be considered for purposes ranging from finding missing children to delivering pizzas, along with agricultural uses.

Gilbert Landolt, president of the Des Moines Veterans for Peace chapter, said while he and others have protested the way the U.S. military uses drones for operations overseas, they concede the technology could be beneficial for some with the proper oversight.

"There are good uses for drones, I'm not saying there's not, but we need to get a handle on it," said Landolt. "If they had some type of control over it and could do it in a way on a farm that makes sense I don't have an issue with that."

As farmers press ahead using drones, there is some uncertainty over how much flexibility the federal government has really given agriculture to use the aircraft. Even farm operators and drone companies are divided over how much authority they have been given to fly the aircraft.

Later this year, the FAA is expected to propose rules for drones weighing less than 55 pounds. This should cover most uses on the farm. Until then, the agency said some operators will continue to incorrectly assume they can operate drones under the guise of existing model aircraft rules — which would cover planes flown for personal use below 400 feet, within eyesight and a safe distance from airports and populated areas. The use by people or companies for business purposes is not allowed.

There also is uncertainty today as to whether a farmer who decides to use his own drone to survey as part of his effort to run his business and make a profit would be considered a commercial entity. The FAA does not allow drones to be used for commercial operations unless they apply for a special exemption. Government and universities can operate drones as long as they get a waiver and fly them within a specific area.

"We are concerned about any (Unmanned Aircraft Systems) operation that poses a hazard to other aircraft or to people! and prop! erty on the ground," the agency said in a statement. "If we receive a complaint about such UAS flights, we investigate to determine if the operator violated FAA safety regulations."

Johnson, who uses a drone on his Iowa farm, said the lack of rules from the FAA is the biggest challenge for farmers eager to embrace the technology. "We just don't have enough direction from the FAA as to what we can do and what we shouldn't do," he said. "The technology is extremely exciting. People just have to be careful right now with the political pressure and lack of rules."

The Association for Unmanned Vehicle Systems International has been pressing the FAA to allow limited drone use for some operations like farmers and movies, citing authority already granted by Congress. "Instead, they are taking a one size fits all approach, which is to regulate the entire airspace to prevent anyone from flying," said Ben Gielow, general counsel of the Association for Unmanned Vehicle Systems International.

As federal regulators struggle to define how drones can be used for commercial purposes, many countries around the world have loose guidelines for how these devices can be used. Drones are being used for agriculture in a slew of countries including Canada, Australia, Japan and Brazil.

Price, the former Kansas State professor who is now an executive vice president of commercial integration with RoboFlight, told farm conference attendees in January that farmers should begin learning how to use drones rather than wait until the FAA acts. "It's going to blow your socks off. There is no question this technology is moving forward and it's going to move fast," said Price. "Don't wait. If you're going to wait until the FAA says you can then you'll be two years behind everybody else."

Monday, March 9, 2015

Unemployment benefits extension wins key vote

WASHINGTON — The U.S. Senate agreed Tuesday to move forward with a three-month extension of expired jobless benefits for the long-term unemployed, which affects an estimated 1.3 million Americans.

Six Republicans voted with 54 members of the Senate Democratic Caucus, which includes two independents, to overcome a 60-vote threshold to begin consideration of bipartisan legislation sponsored by Sens. Jack Reed, D-R.I., and Dean Heller, R-Nev.

The bill would reinstate unemployment benefits that expired Dec. 28 because Congress failed to act before the holiday break.

Sen. Mark Begich, D-Alaska, was not present for the vote. Sen. Dan Coats, R-Ind., surprised Democrats by providing the key vote to advance the bill.

Most Republicans opposed the bill because the $6.4 billion cost of the extension is not offset with spending cuts elsewhere in the federal budget. Some Republicans also view the benefits as a deterrent for recipients to look for jobs. Outside conservative groups, including the anti-tax Club for Growth, also oppose the extension and urged lawmakers to oppose it.

Senate Minority Leader Mitch McConnell, R-Ky., was blocked by Senate Majority Leader Harry Reid, D-Nev., from offering an amendment to delay for one year the requirement for individuals to purchase health care under the Affordable Care Act in exchange for GOP support.

Democrats argue that unemployment benefits provide critical economic stimulus by boosting consumer spending as well as much-needed relief to Americans who have found it hardest to recover from the economic downturn and should not have to be offset. "This is basic. This is humane," said Senate Majority Whip Dick Durbin, D-Ill.

The next steps are uncertain. The Senate still has to pass the bill, and it faces considerable opposition in the GOP-controlled House, where Speaker John Boehner, R-Ohio, has said he could consider an extension if the cost is offset by budget cuts elsewhere.

President Obama will keep pressure on Congress to ! act at a White House event Tuesday with some of the Americans affected by the benefits' expiration. Gene Sperling, the director of the National Economic Council, defended the unemployment benefits program Monday as critical to addressing lingering unemployment from the recession, and he noted that the system not only requires recipients to look for work, but is structured to taper off as unemployment rates fall.

The Emergency Unemployment Compensation program was enacted under the George W. Bush administration in 2008 to provide relief for the long-term unemployed who had exhausted standard unemployment benefits.

Sunday, March 8, 2015

AIG selling aircraft leasing unit in $5.4B deal

NEW YORK — AIG is selling its aircraft leasing business International Lease Finance Corp. to AerCap in a cash-and-stock deal valued at about $5.4 billion.

International Lease Finance has almost 1,000 owned and managed aircraft and has commitments to buy approximately 330 high-demand, fuel-efficient aircraft. It will become a subsidiary of AerCap.

American International Group Inc. said Monday that this is the last major sale of one of its non-core assets. AIG received the biggest bailout of the financial crisis five years ago. The insurer has repaid the bailout money and has undergone a massive restructuring that cut its size in half as it focused on its core insurance business.

AIG initially had a deal to sell up to 90 percent of International Lease Finance's stock to Jumbo Acquisition Ltd., but ended that agreement before striking its deal with AerCap.

AerCap, based in the Netherlands, is an aircraft leasing company. It has offices in Ireland, the U.S., China, Singapore and the United Arab Emirates.

AIG said it gets $3 billion in cash and about 97.6 million newly issued shares of AerCap Holdings NV in the deal, or about 46 percent of AerCap's stock. It will enter a stockholders agreement and registration rights agreement with AerCap, which will give it the right to nominate two AerCap board members.

AIG also agreed to provide a $1 billion, five-year unsecured revolving credit facility, which will be available when the deal closes.

The transaction is expected to close in 2014's second quarter. It still needs approval from AerCap shareholders and is subject to required regulatory approvals, including U.S. and foreign regulatory reviews and approvals.

AIG share rose 76 cents, or 1.5%, to $50.49 in premarket trading about 2½ hours before the market opening.