| Watch List (Aug. 5-11): Ah Contraire
In this week's issue we report that: while U.S. homebuilders are still writing down land holdings, others are starting to look at the opportunities that may be coming; U.S. newspapers are taking big hits on troubles in residential real estate; Prudential Real Estate Investors says those troubles are hanging heavy over an otherwise strong commercial market; and CBRE Realty Finance takes a hit on foreclosures; plus other news you'll find only here in the entire column and give you the latest facility closures, permanent mass layoffs and properties on The Watch List. Land Speculators Starting To Awaken With run away asset writedowns and land option contract cancellations by U.S. homebuilders still climbing, it would be a solidly contrarian view to start looking for buying opportunities. However, that is just what Canadian property owner Brookfield Asset Management started talking about this week.
Valassis Announces Financial Results for the Second Quarter Ended June 30, 2007
LIVONIA, Mich., July 31 /PRNewswire-FirstCall/ -- Valassis today announced financial results for the second quarter ended June 30, 2007. The company reported quarterly revenues of $612.1 million, up 134.9% from the second quarter of 2006, due to the acquisition of ADVO, Inc. (ADVO) that was completed on March 2, 2007. Second-quarter net earnings were $9.8 million, or $0.20 in earnings per share (EPS). For the second quarter, operating income was $40.6 million and adjusted EBITDA* was $63.1 million. Adjusted free cash flow* was $25.1 million for the quarter.
"Since the close of the ADVO acquisition on March 2, we have been extremely pleased with our efforts to reduce costs and capital expenditures as we focus on maximizing free cash flow," said Alan F. Schultz, Valassis Chairman, President and CEO.
Student loan options are baffling to family
Karen Wons of Maryland finds herself in a quandary that is confronting many parents right now. She is struggling with how best to advise her daughter -- a recent college graduate -- on paying down her $25,000 in student loans. Wons did what any wise parent would do. She asked for help. Wons's daughter works as a project manager at a medical software company. She has an annual salary of more than $50,000. Her employer provides a 401(k). She has about $13,000 in cash from recently redeemed Series EE savings bonds. She has no credit card debt. She has no payments on a reliable car with low mileage. She's sharing an apartment and other living expenses with an older sister in Madison, Wis. Her portion of the rent is a little more than $500 a month. Wons is unsure about the course her daughter should take: Should the daughter consolidate her college loans during her six-month grace period? (She has federally backed Stafford and Perkins loans.) Should she use the entire $13,000 to pay down the loans or keep making monthly payments to take advantage of the interest deduction? Should she invest all of the $13,000? While paying on the loans, should she contribute to her 401(k)? Let's take the consolidation question first.
125% Home Equity Loans Now Close Concurrently with a 100% First-Second Mortgage Refinance from BD Nationwide
BD Nationwide Mortgage introduces the "125% Home Equity Refinance Loan Combination" for refinancing 1st and 2nd mortgages into a new 100% first mortgage with a 125% home equity loan that funds simultaneously. The latest home equity product from BD Nationwide helps homeowners refinance their adjustable rate mortgage to 100% loan-to-value and enables them to consolidate additional consumer debt like revolving credit cards and unsecured high rate loans with a 125% second mortgage. On average, borrowers are saving $800 a month with 1st-2nd combo loans that were clearly created to convert and consolidate adjustable rate mortgages into fixed rate no equity loans that maximize savings. .
A Single Global Currency
Since Europe enacted the euro as its common currency, there has been increased discussion about whether or not the world would benefit from a single global currency. At this point, the proponents seem to have a substantial edge; but like anything else, there are proponents and there are detractors. The Book: The Single Global Currency I just got through reading this interesting book by Morrison Bonpasse, who is the president of the Single Global Currency Association. It was an eye-opener. Additionally, I must say that Mr. Bonpasse recently invited me to serve on the association's international board of directors. Because I have both spoken and written about the pros and cons of currency consolidation and I find the topic fascinating, I was happy to accept the appointment.
MortgageBrokers.com announces the expansion of its brand presence through opening new retail locations across Canada
MortgageBrokers.com Financial group of Companies Inc., a subsidiary of MortgageBrokers.com Holdings Inc. (OTC BB: MBKR - News) announced that the company through it's Managing Partner, opening of 2 new retail locations under the MortgageBrokers.com flag in Toronto, Ontario. These latest retail store front opening continues the company's expanding brand presence through store front retail locations across Canada. .
Promise offers to buy Sanyo Shinpan, to become largest Japanese consumer lender
Promise offered to buy its rival Sanyo Shinpan Finance on Thursday for about ¥110 billion, or $913 million, which would create the largest Japanese consumer lender. Promise offered ¥3,623 a share for the 75 percent of Sanyo Shinpan's stock traded on the market, it said in a statement to the Tokyo Exchange. It agreed to buy the remainder of Sanyo Shinpan from the family of Sanyo's chairman, Masakazu Shiiki for an undisclosed price. Sanyo shares closed Thursday at ¥3,650. The takeover will create a lender with more than ¥2 trillion of outstanding loans and could trigger more mergers in an industry racked by mounting claims for interest refunds. Promise and its rivals in the $170 billion Japanese consumer credit market have seen profits evaporate after courts ruled that borrowers could demand compensation for excessive interest payments.
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