Tag Archives: GW

An Interview With Lawrence Cunningham

By Buck Hartzell, The Motley Fool

Filed under:

Recently, I had the pleasure of talking with Lawrence Cunningham, esteemed professor of law at George Washington University. Professor Cunningham has written numerous books about investing and business, including one of my all-time favorites, The Essays of Warren Buffett: Lessons for Corporate America. His latest work, a collaboration with former AIG CEO Maurice Greenberg, is titled The AIG Story.

Cunningham’s classic on Buffett is a seminal text here at The Motley Fool, so that was the main focus of our discussion. Here’s the full transcript of our chat:

Buck Hartzell: You’re a prolific writer, in addition to all your teaching duties. We’re here today to talk about the third edition of The Essays of Warren Buffett: Lessons for Corporate America. Thanks for joining us, Lawrence.

Lawrence Cunningham: It’s a pleasure, Buck. Thanks for having me.

Hartzell: This is one book that the Fool uses to train all of its managers. It’s required reading, and we think anybody that’s a student of business, or certainly an investor or a manager anywhere should definitely read this book. We use it as a textbook for how we go about things in our business.

Cunningham: Yes, we use it, too, as a textbook. We teach a couple of different courses at GW. George Washington University is where I teach. We teach a little bit in the business school on corporate governance, and they use it in the Applied Portfolio Management course to train students in value investing.

Hartzell: As you reflect back on the first book, and now through the third version, is there a lesson or two that really resonates with you as an investor or a student of business?

Cunningham: Oh, yes. I guess probably the favorite (there are a dozen and they appear in different ways on different readings) and it applies in investing, business and life, is what I call the “son-in-law‘s test.” This is his principle about only going into business to work with people that you would be happy to have your daughter marry.

Hartzell: OK…

Cunningham: He avoids working with people unless he likes them, admires them, and trusts them. That resonates with me, so I try to avoid working with people that I wouldn’t want to have my daughter marry and avoid getting into businesses relationships with them. I think it’s a wonderful test and a great principle to apply.

Hartzell: Absolutely.

Cunningham: I think the second thing was once you have that principle in place, it will take you a long way. A great example of that concerns the original publication of this book. When I first compiled it, he and I talked about publishing arrangements. He discouraged me from going with the big publishing houses who are these big, anonymous institutions that have their own set of interests and so on, and encouraged me, instead, to think about publishing it myself, which I did.

And then I went and teamed up with some friends of mine who run a …read more

Source: FULL ARTICLE at DailyFinance

Can America Blow Away Nuclear Power?

By Maxxwell A.R. Chatsko, The Motley Fool

Filed under:

Imagine if you opened up your electricity bill next month and it showed that your energy provider owed you money for sending you your monthly allotment of kilowatts. Think negative prices sound farfetched? Think again. Several Texas and Midwestern utilities, such as Exelon and Dominion Resources , are facing just such a predicament in several markets during off-peak hours.

OK, so customers don’t actually get paid by their providers since off-peak prices represent a small piece of the amount paid each month. Nonetheless, negative prices are a real problem facing utilities relying on nuclear and fossil-fuel generation — and they have little to do with cheap natural gas. The main contributor to off-peak negative prices is actually wind power. If the problem persists, energy companies such as Exelon and Dominion, which focus on nuclear and coal, respectively, may be forced to retire their less competitive plants. Can America really blow away nuclear power?

Good news, bad news
Last year, the power industry sprinted to capture what was expected to be the last opportunity for a federal tax credit for new wind farm construction. The credit was eventually extended through 2013, but that didn’t stop a record 13 GW of capacity from being added to the nation’s grid. In fact, 8.38 GW were added in the fourth quarter alone.  

That’s great news for renewable energy-minded power generators such as NextEra Energy . The company owns more than 10 GW of wind capacity, or one-sixth of the nation’s total. The subsidy has enabled NextEra to create an impressive fleet of wind farms:

Source: NextEra Energy. Powered by Google Maps.  

Say what you want about the federal tax credit for new construction, but that isn’t the government subsidy fueling negative prices. The owners of wind farms receive a production tax credit, or PTC, of $0.022 for every kWh of wind energy produced. That may not seem like much, but consider this: Wind speeds, on average, are inversely proportional to demand from the grid. When the grid needs the least amount of power — during the night and in spring and fall — wind speeds are at their peak.

Generally, providers curtail their power production during off-peak times to obey the law of supply and demand. Flooding the grid with juice that has nowhere to go results in negative prices, thus forcing providers to pay the grid to take the power they created. No business aims to sell products with negative values.

A question of fairness
The PTC for renewable-energy generation creates an artificial incentive for owners of wind farms. Why shut down turbines during the grid’s off-peak hours when it’s the best time to maximize production and therefore subsidy revenue? For instance, wholesale electricity prices for off-peak hours sank to negative-$0.0411 per kWh in October 2012. A recent report (link opens PDF) from the Northbridge Group, an electricity consultancy firm, showed that the problem is becoming more profound …read more
Source: FULL ARTICLE at DailyFinance

Navigant Research Releases New BTM Wind Report: World Market Update 2012

By Business Wirevia The Motley Fool

Filed under:

Navigant Research Releases New BTM Wind Report: World Market Update 2012


Report Highlights Regional Trends, Production Data, Demand Drivers & Forecast 2013 – 2017

CHICAGO & COPENHAGEN, Denmark–(BUSINESS WIRE)– Navigant Research announced today that it has released the annual BTM wind report International Wind Energy Development: World Market Update 2012. The 180+ page BTM wind report, World Market Update 2012, published by Navigant Research, is the eighteenth edition of this annual wind energy market report. The report includes more than 80 tables, charts and graphs illustrating global wind market development, as well as a wind market forecast for 2013-2017 and highlighted trends for the wind market through 2022.

The report delivers several views on the fast‐growing wind market, including:

  • More than 285 GW of wind power now installed globally
  • 45 GW of new capacity added in 2012, including 1.1 GW from offshore wind
  • The United States surpassed China as the largest market in terms of new installations in 2012
  • Europe lost its position as the largest world region in terms of new installations
  • Wind installations in the Americas grew by 12.3 percent compared with 2011
  • Big shake-up in the top ten wind turbine supplier ranking
  • Strong Chinese presence among top 15 wind owner‐operators
  • Wind market structures continue to evolve
  • The penetration of wind power in the world’s electricity supply has reached 2.62 percent
  • Offshore wind more than doubled the capacity added in 2011, with more than 4 GW currently under construction

Demand

With the addition of 44,951 MW in new installations in 2012, world wind power capacity grew to around 285,700 MW, an increase in the total wind power installation base of 18.6 percent. Market growth year-over-year in 2012, though a modest 7.8 percent, was still higher than in …read more
Source: FULL ARTICLE at DailyFinance

GW Pharmaceuticals Files Registration Statement for NASDAQ Global Market Listing and IPO

By MarketNewsVideo GW Pharmaceuticals, the biopharmaceutical company focused on discovering, developing and commercialising novel therapeutics from its proprietary cannabinoid product platform, announced today that it has filed a registration statement with the U.S. SEC for an IPO of American Depositary Shares on the NASDAQ Global Market. GW has applied to have its ADSs quoted on the NASDAQ Global Market under the ticker symbol “GWPH”. The number of shares to be offered and the price range for the offering have not yet been determined. …read more
Source: FULL ARTICLE at Forbes Markets

Suntech Power on the Brink of Bankruptcy?

By Travis Hoium, The Motley Fool

Filed under:

Suntech Power is in a pickle that could lead to consequences as severe as an involuntary bankruptcy. On Monday, the company announced a forbearance agreement with lenders, essentially holding off payment on $541 million of bonds due on Friday. As more reports have emerged, it appears the forbearance agreement was only with 60% of bondholders and the other 40% want nothing to do with it.

Right now, it appears Suntech has no interest in paying bondholders on Friday and there’s now speculation this could lead to lawsuits and even an involuntary bankruptcy. Bloomberg interviewed a hedge fund manager who said that the fund sees it as worthwhile to pursue a lawsuit if they aren’t paid on Friday. But statements from law firm Wilmer Cutler Pickering Hale and Dorr LLP were even more telling. Bloomberg quotes partner James Millar as saying: “Every piece of information that I’ve looked at suggests that they will default on Friday.” That’s telling no matter what side you are on.  

What is interesting with this debate is that the company could have converted bonds into stock if it would have alerted bondholders three days prior to maturity, which was yesterday. Since it didn’t, it appears that the company will be forced to pay cash or wind up in court.  

Implications across solar
Suntech is the news of the day but this has much wider impact on the solar industry than just one company. China‘s state-run banks haven’t come to the rescue of Suntech even though it has billions of dollars of debt outstanding with them. China may finally be willing to let a few companies fail.

This is bad news for Yingli Green Energy and LDK Solar , in particular. Yingli has $2 billion of net debt, and at last count LDK Solar had $3.3 billion of net debt, both unsustainable in any normal business environment. Will the government let them fail as well, taking multiple gigawatts out of the industry’s overcapacity? Many companies hope so.

A Suntech failure would be good for everyone else
If Suntech goes down it would really be good for everyone else in the industry. Solar is oversupplied right now and Suntech would take 2 GW of that supply off the market. I think U.S. solar companies would benefit the most but there would be winners in China as well.

JA Solar and Jinko Solar have two of the better balance sheets, and they could pick up some of the slack. Trina Solar would also be able to fill in, and with a bigger brand name than JA or Jinko it could experience expanding margins.

Foolish bottom line
This is exactly what the solar industry needs, even if solar stocks aren’t reacting that way today. Keep an eye on Suntech’s developments over the next few days to see if it evades this somehow, or if bondholders try to …read more
Source: FULL ARTICLE at DailyFinance

Remarks by the First Lady to the Partnership for a Healthier America Summit

By The White House

George Washington University
Washington, D.C.

1:45 P.M. EST

MRS. OBAMA: (Applause.) Thank you all so much. (Applause.) Oh, my goodness. Yes! (Applause.) Thank you all so much. It’s great to see you. It is truly a pleasure to be with all of you today.

And of course, I want to start by thanking Eli Manning — (applause) — oh, my gosh! — for that very kind introduction. I’m probably as excited to see him as I am to see all of you. (Laughter.) But I’m thrilled that he could join us today, and I’m just grateful for all of his work and leadership.

I also want to thank Dr. Steven Knapp, not just for hosting us here at GW, but for all the wonderful work this university is doing to forward the agenda of nutrition and fitness. We are so grateful that they are our partners and our neighbors as well.

And I also want to recognize Larry Soler — Larry for — and everybody else at the partnership for all of their wonderful work, as well as Kathleen Tullie and the team at Reebok for all of their leadership. And it’s just a thrill to be working with both of these wonderful organizations and companies that are doing all of these terrific things.

But most of all, I want to thank all of you — the advocates, experts, and executives who have been leading the way to give all of our children a healthy start to their lives. Because of your tremendous efforts, more than half a million people in underserved communities now have access to fresh, healthy food. Because of you, major American businesses like Disney and Walmart and Darden Restaurants are now offering healthier menus and products. Military leaders are serving healthier food on their bases. Faith leaders are educating their congregations about eating healthy. Nearly two and a half million kids have enrolled in recreational sports classes. Democrats and Republicans right here in Washington — (laughter) — came together to pass groundbreaking legislation that is transforming our school lunch program.

And just last week, we had the sheer delight to launch Let’s Move Active Schools, an unprecedented effort to invest more than $70 million to promote physical activity and bring physical education back to our schools. Yes. (Applause.)

And today, we are beyond thrilled to announce that Reebok is joining this effort with an additional investment of $30 million over the next three years. Absolutely. (Applause.) This investment — oh — as you’ve seen, it comes after years of leadership through their BOKS Kids program which supports innovative programs to get kids active in our schools.

So again, I just want to take a moment today to say how grateful I am for Reebok’s longstanding commitment to this issue, and for their groundbreaking investment to take that work to the next level. Thanks to efforts like …read more
Source: White House Press Office

Solar PV Growth Stalled in 2012

By 24/7 Wall St.

Solar rooftop installation

Filed under:

For the first time in a decade, global solar photovoltaic (PV) demand grew by less than 10%. Installations totaled 29,000 megawatts of solar PV in 2012, up just 5% from 27,700 megawatts in 2011. The industry had been hoping for a minimum total of 30,000 megawatts.

Europe remained the largest regional market, taking nearly 16,500 megawatts or 60% of global demand. However the percentage shrank, from 68% in 2011 and 82% in 2010.

Asian nations installed 8,690 megawatts, led by a spurt in Chinese demand in the second half of the year. North America accounted for 3,490 megawatts, with much of the demand coming from California, where renewable portfolio standards and rebates smoothed the path.

The data comes from NPD Group’s Solarbuzz unit, and the company’s senior analyst noted the acute problem for the solar PV makers like First Solar Inc. (NASDAQ: FSLR), SunPower Corp. (NASDAQ: SPWR), and others:

For supply and demand to have been balanced during 2012, end-market demand should have approached the 45 GW level. This is 50% higher than actual PV demand in 2012, and reflects the lack of demand elasticity that characterizes the PV industry today. It also explains why even those companies that gained market-share in 2012 still ended up reporting significant operating losses.

Solarbuzz did not offer a forecast for solar PV installation in 2013, but did say that emerging nations (read “China“) will be “pivotal” to the solar industry’s supply and demand balance.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Green Biz, Technology Companies Tagged: FSLR, SPWR

Read | Permalink | Email this | Comments

…read more
Source: FULL ARTICLE at DailyFinance

How About Some Hate Control Before More Gun Control?

By Bruno Korschek

Nancy Pelosi SC How About Some Hate Control Before More Gun Control?

As most informed people know, there was a tragic and senseless school shooting incident in Newtown, Connecticut last month that left defenseless children and adults killed by an obviously deranged young man. It is inconceivable to most people how a young man can go so astray that he murders random people for no obvious reason.

As a result, certain elements of the political class in Washington have taken advantage of this tragedy to advance their own personal agendas relative to gun control, with the idea that controlling or eliminating gun possession by all of us would have somehow prevented the Newtown tragedy.

Rather than trying to understand the root causes of such abhorrent behavior, these politicians simplistically look at the “what” of the situation (guns were used to kill) rather than the “why” of the situation (what causes such behavior.) By not understanding the root causes, the chance of resolving the problem is next to nothing.

Maybe there are other causes of such behavior, not simply gun possession. Rather than more draconian gun control rules and laws, we should do a little “hate control” before we recklessly and senselessly go off on a gun control tangent, a tangent that will likely increase crime and gun play, not reduce it and shred the Second Amendment in the process.

Let’s be honest; there is a lot of hate and venom circulating in our country today. Much of it is fomented by the political class as they try to incite their supporters and degrade their opponents in the most dehumanizing ways possible.

The more we dehumanize others, the easier it is to see them as less worthy of their opinion and their life. Maybe if we started respecting each other a little more and taking some of the hate and venom out of our politics, thought processes, and speech, incidents like the shootings in Newtown, in south Chicago, in the ghettos of Detroit, etc. might become a little less frequent if we respected each other a little more.

This increase in respect and humanizing of other human beings should start with our so-called leaders, However, these so-called leaders are a big cause of the problem, not the solution. They have had a busy and disgraceful past couple of years degrading and abusing the opinions, lives, and very existence of the citizens they are supposed to be serving:

  • Democrat Speaker Of The House Nancy Pelosi called citizen opponents to ObamaCare unpatriotic for simply having a difference of opinion with many politicians in Washington.
  • Democrat Charles Rangel slandered millions of Americans who opposed ObamaCare by calling them racists for simply having an honest difference of opinion with many politicians in Washington.
  • Democrat Shelia Jordan Lee slandered Americans who opposed ObamaCare by associating them with the Ku Klux Klan.
  • Union boss and Democratic supporter Jimmy Hoffa, Jr. stated that his union was at war with the Republicans and Tea Party citizens and that these people “need to be taken out.”
  • Democratic Congressmen Mike Doyle and Henry Waxman and Vice President Joe Biden slandered American citizens opposed to unfettered and destructive government spending and debt by calling them terrorists (those people who bomb and kill innocent civilians).
  • When ordinary Americans objected to the building of a Islamic mosque near the World Trade Center property because of the sad memories of 9-11, Democrat Nancy Pelosi said THEY should be investigated for simply having a passionate opinion on the mosque.
  • Democratic Congresswoman Maxine Walters said all Tea Party American citizens can go to hell simply for having a difference of opinion with her.

When you viciously and unfoundedly associate ordinary citizens with racism, call them terrorists, question their patriotism, wish they would go to hell, and then threaten to take them out/exterminate them, you have dehumanized them in the eyes of your political supporters, making it easy to imagine them actually going away permanently.

Maybe this type of hate, venom, and dehumanizing goes through the head of a young man when he decides to go off and actually follows the advice that those people “need to be taken out.” When your so-called leaders call for this type of behavior and language, it can’t be wrong, can it?

But our political class and their direct supporters also direct their hate and venomous words towards other politicians:

  • The campaign manager of Democrat Jerry Brown’s gubernatorial campaign called his Republican opponent, Meg Whitman, a whore.
  • White House czar Van Jones publicly called all Republicans a**h****s.
  • Democrat Alan Grayson called all Republicans knuckle-dragging Neanderthals.
  • TV host Montel Williams publicly hoped that Republican Congresswoman Michele Bachman would commit suicide by decapitating herself.
  • Ed Schultz, an on-air commentator for the Democratic-leaning MSNBC news channel, called Laura Ingraham of Fox News a slut.
  • HBO TV host Bill Maher, a major donor to Obama’s 2012 Presidential Super PAC, said on air that Republican Sarah Palin “would f*** Rick Perry if he was black.”
  • Bill Maher also called Palin a disgusting and derogatory name that I will not repeat here.
  • Playboy magazine’s online website offered a detailed analysis on why and how each of ten Republican women in politics should be hate raped.
  • Democratic Congressman Steve Cohen likened Republican critics of Obamacare to the Nazis and their propaganda minister Joseph Goebbels.
  • A rap artist gave a Minnesota concert that was billed as the “F*** Michelle Bachman” concert (spelling out the entire f-word).
  • A Democratic operative insulted Ann Romney (and millions of other American women) by slandering and demeaning her as a stay-at-home mother.
  • Martin Bashier of MSNBC News showed a video of Mitt Romney’s campaign bus that was interspersed with video clips of buses blowing up in balls of fire, explicitly wishing that the Romney bus also blow up and that those inside die a fiery death.

When you label others as “sluts” and “whores” and suggest they should be raped or be killed, either by themselves or a fiery bus explosion, you set another stage for dehumanization. If you political opponents are just “sluts” and “whores”, no big deal if they go away, right?

This type of disgusting, hateful behavior is an influence in our society and not an influence for good. It infects the undertone of how we view others. It reduces the amount of respect we have for others, making it easier to abuse others, possibly violently.

It usually does not cause someone to go off and actually start killing others, but it certainly cannot help. It also cuts short the ability to listen to each other and appreciate the diversity of opinion each brings to a potential solution of a problem.

If I have allowed the political class and their ardent supporters to frame you as a racist or a slut or a terrorist, I am unlikely to consider any good you can bring to my life or to a solution of a problem. If I think it is a good thing that you self-decapitate or die in a bus explosion, you will probably not get my attention when it comes to working towards a better society.

As a result of this hateful divisiveness the political class has driven into our society, we despise others who have opinions different from ours. Major issues, such as failing public schools, a lost war on drugs, skyrocketing national debt, high health care costs, illegal immigration, etc. never get resolved. The hate prevents us from listening to each other and calibrating our view of the world with others’ views of the world.

And possibly in the case of Newtown, we go beyond not listening, and we start shooting. Not because guns are legal, but because we have allowed the political class to desensitize us to each other as human beings.

But it is not only politicians who spew the hate and venom, hate and venom that others take to heart, hate and venom that their children take and internalize. Consider just some recent examples that have appeared in the news:

– Consider the hateful speech and intentions of Professor Richard Parncutt of the University of Graz regarding other human beings who are global warming deniers, those daring to have a different opinion than his: “In this article I am going to suggest that the death penalty is an appropriate punishment for influential GW [global warming] deniers… They [global warming deniers] are already causing the deaths of hundreds of millions of future people. We could be speaking of billions, but I am making a conservative estimate… With high probability it will cause hundreds of millions of deaths. For this reason I propose that the death penalty is appropriate for influential GW deniers.”

Different opinion; therefore, you should die. If you have a different opinion than Professor Parncutt, he deigns that you do not deserve to live.

– Pulitzer nominated newspaper columnist Donald Kaul recently wrote an article for the Des Moines Register where he called for the killing of gun owners and “dragging legislators who disagree with gun control behind pickup trucks until they get the message.” Don’t agree with my opinion? Thus, we should have more killing and more torture for those who dare to have a difference of opinion. How does this stop the cycle of hate that starts with the political class?

Erik Loomis, PhD, assistant professor of history at the University of Rhode Island, decided he needed to get into the hate and venom game also when he recently stated on Twitter that he wanted the death of National Rifle Association (NRA) CEO Wayne LaPierre, branding the gun rights group he heads as a terrorist organization””[I] want Wayne LaPierre’s head on a stick.” A little hateful, a little violent?

Karen Lewis, head of the Chicago Teachers’ Union, recently had some violent rhetoric of her own to share: “Do not think for a minute that the wealthy are ever going to allow you to legislate their riches away from them. Please understand that. However, we are in a moment where the wealth disparity in this country is very reminiscent of the robber baron ages. The labor leaders of that time, though, were ready to kill. They were. They were just – off with their heads. They were seriously talking about that.”

And this person is associated with educating young minds and kids. Don’t like someone or are jealous of their wealth (that in all probability was garnered via hard work and sweat? Then just off with their heads.

You cannot have such hate and disrespect and venomous speech floating around and not have a negative impact on how we treat each other, how it dehumanizes others. You cannot say the Newtown shooting was directly caused because of this poisonous environment, but it certainly did not help. Was the shooter seated around his dinner table through the years when slurs and demeaning things were said about others, how others different from him were worthy of being “taken out“?

And it certainly does not allow us to sit down and go face-to-face with others to leverage everyone’s knowledge and skills to confront all of our problems from school shootings to high debt, high illiteracy levels, failing public education, a failing health care system, etc.

But if we solved all of our problems, on what issues would our politicians run on? And that, my friends, is the root cause of most of our problems from school shootings to the lack of a national energy problem; our shameless politicians need the hate and venom to frame and finance their continual reelection effort.

So tonight, when you are sitting around the table with your family, how about a little more hate control and a lot more respect for others in front of our kids? Again, it couldn’t hurt.

And when you come across such people in life, those who want others to die simply because they have a different opinion, walk away. These people are part of the problem; do not join them in spreading their venom and hatred. There is an old saying that goes as follows: “Never mud wrestle with a pig. You both get dirty, and the pig likes it.” Stay clean, reduce the hatred, and maybe save the Second Amendment in the process.

Source: FULL ARTICLE at Western Journalism