Brief Spike

Two pollsters from the Republican firm Public Opinion Strategies offer the most convincing explanation for the modest and seemingly brief spike. In a May 12 blog post, Glen Bolger and Jim Hobart laid out five reasons. First, the event that precipitated the higher approval ratings was good news rather than bad news. Ratings bumps are larger, Bolger and Hobart note, when “the major military/national security event is bad news, with September 11 being the most prominent example. These events result in a rally-around-the-flag effect that often produces large and sustained bumps. Positive events, like the first [Reagan-]Gorbachev summit and the capture of Saddam Hussein, more often produce smaller and/or shorter bumps in presidential approval.” As sad as that sounds, it’s probably right. Crisis brings us together; success is soon forgotten.

More Think He Deserves Reelection

At the same time, the AP poll also found that 53% of Americans now think Obama deserves to be reelected next year, while 43% say otherwise. That’s a marked improvement from March when 50% said he deserved reelection, but nearly as many, 47%, said he did not. And it’s a huge turnaround from last November, when a 54% majority said the president did not deserve to be reelected, versus 39% who said he did.

Political Impact

The political impact was important but not for the reasons you might think. Our sense is that the poll bump from the bin laden killing was going to be single digits and short term and it has been borne out so far. These types of events almost never lead to lasting gains in the headline approval rating. However, they can contribute to a more substantive shift in opinion. So, while Gallup and others have shown the President’s approval rating returning to pre-bin Laden levels, the data suggests that there has been a meaningful drop in Obama’s disapproval rating. This is important because it means that some swing voters (Independents and soft partisans) are reconsidering the President.

Receiving Money

Homeowners can receive money from the reverse mortgage in monthly payments, or, if they prefer, they can get a lump sum of cash. The monthly cash payments (or lump sum) that you receive from a reverse mortgage are not taxable income because you (or your heirs) have to pay the money back when the home is sold. It is just like any other kind of loan. Borrowed money is not “income” because it is a debt obligation that has to be repaid.

Interest Deduction

Now, let’s look at how a reverse mortgage affects your interest deduction. We all know that the interest paid on your home mortgage is tax deductible each year. It is the last great tax shelter available to the average American. But what happens when you don’t pay your mortgage interest each year, as is the case with a reverse mortgage? You don’t lose the interest deduction, you merely have to wait until the interest is actually paid before you can claim it.

RMCA

RMCA Senior Membership Program, will give HECM borrowers access to resources and research through communication channels, tools, research and industry feedback. The program is open to new and existing borrowers and encourages current borrowers to connect with new borrowers in building a community of those with reverse mortgages.

Found Anywhere

Plankers can be found anywhere, on the roofs of moving vehicles, on rock formations and even across busy highways. Police in Australia are pretty fed up with the odd craze which has a heightened popularity there, and are cracking the whip by either ticketing or arresting anyone, who takes part in the risky public stunt which has a Facebook following of nearly 195,000.

Teapotting

Teapotting seems innocent enough but then again, there are always those death wish participants, who take the game to another bone-chilling level. The Facebook page has upwards of 3,500 followers, not including copycat pages and groups.

Pillaring

Planking and teapotting have now spawned another wannabe-extremist sport called pillaring. Similar to planking, pillaring is its cadaver-like cousin and requires standing straight and tall with no movement and again, placing yourself in odd places. Thus far, the lame alternative to planking has garnered some nearly 2,500 Facebook followers.

Riskier And Riskier

“The potential for disaster increases as more and more risks are taken to get the ultimate photo.” The obsession started off innocently enough, with plankers targeting landmarks, parked police cars, dishwashers or each other. But they gradually got extreme, with smokestacks, industrial machinery, animals and railway tracks all becoming planking sites. Despite the accidents, the craze shows no signs of abating.

Lying Down Game

Planking — also known as the Lying Down Game — is the seemingly harmless trend of lying face down, perfectly stiff, on various structures in public. It seems the game originated in 1997, and it became known as “planking” in Australia. Although a seemingly harmless activity, planking gained further attention recently after a Australian man was killed after trying to plank off his roof. He fell seven stories to his death. “There’s a difference between a harmless bit of fun done somewhere that’s really safe and taking a risk with your life,” Julia Gillard apparently told reporters according to The Australian.

Examinations

“The examinations were started by employees of the Estate and Gift Tax Unit at the IRS as part of their increased efforts in the area of non-filing of gift and estate tax returns,” she said in the May 13 statement. The Republican senators responded in the letter that they found the IRS explanation insufficient. “We would expect that decisions regarding particular enforcement actions would be made by career civil servants,” they wrote. “The more pressing question, not answered to date, is whether political appointees inside or outside the IRS were involved in any way in the decision to prioritize this category of cases.”

Politically Motivated

The IRS has not historically enforced gift taxes on these donations and its decision to do so now may be politically motivated, charged the Republican senators. “President Obama and his White House staff have made it clear that they view these organizations with deep hostility,” the senators wrote. “Retroactive enforcement of the gift tax in this highly politicized environment raises legitimate concerns and demands further explanation.” The IRS previously stated that the examinations were started by the Estate and Gift Tax unit at the IRS “as part of their increased efforts in the area of nonfiling of gift and estate tax returns.”

Civil Servants

“We would expect that decisions regarding particular enforcement actions would be made by career civil servants,” wrote the senators, who also sounded concerned about the possible retroactive enforcement of the gift tax. “The more pressing question, not answered to date, is whether political appointees inside or outside the IRS were involved in any way in the decision to prioritize this category of cases.”

Buyers And Sellers

Toback says some of the people selling silver now are those who bought silver coins and bullion the last time the price came close to $50 an ounce back in 1980, only to watch it drop below $5 shortly thereafter. Many others, though, aren’t hobbyist investors, but ordinary people hoping to take advantage of silver’s historically high value. Many visit pawn shops or antique stores, while others sell their silver items at Tupperware-party-style events, at which guests come in with silver and leave with cash.

Volatile Metal

“Silver has been a volatile metal in terms of pricing and we’re seeing it now but I think the fundamentals still support (a) strong silver price,” Smith added. Aside from the investment perspective of silver, Smith said the industrial aspect will push silver prices higher in the long run. “There’s no more conductive metal than silver so as more computer, computer-like applications and hardware are built, it is a growing factor not only in demand, but also (in) the amount of technology that’s part of our lives,” Smith said.

Parabolic Move

What has been described as a parabolic move of silver price appears advantageous for people investing in silver with the intent to sell the metal at this time. It is becoming rather unsettling for veterans in the trade. It is clear though how the so-called market swings are going to affect the price of silver; it could either go upwards or downwards.

Defending Ryan

McConnell’s office points out that the GOP leader has defended Ryan for trying to reduce the federal deficit in the absence of any detailed Democratic proposals. McConnell said Ryan has offered a “budget to address our most pressing problems head-on at a moment when the president and other Democrat leaders simply refuse to do so themselves.” However, many Republicans are undecided, and a group of centrists is leaning against voting for the plan because it would cut Medicare benefits substantially. Ryan’s proposal calls for $5.8 trillion in spending cuts over 10 years and would transform Medicare and Medicaid.

Addressing Most Pressing Problems

McConnell said Ryan offered a “budget to address our most pressing problems head-on at a moment when the president and other Democrat leaders simply refuse to do so themselves.” Even so, Republicans are undecided, with a group of centrists leaning against voting for the proposal because of its changes to Medicare benefits, The Hill said. One GOP senator who spoke on the condition of anonymity said he thought Ryan made a serious tactical error by revealing Medicare reforms in his budget plan.

Discomfort

Some Republicans are daring to show some discomfort with Ryan’s budget, despite the Gingrich example. Second-ranking Republican Lamar Alexander says he’ll vote for the Ryan plan but prefers one offered by Sen. Pete Domenici with the help of former White House budget director Alice Rivlin. Susan Collins says she won’t vote for Ryan’s bill, and fellow Mainer Olympia Snowe is leaning against it. Scott Brown said he’d vote for the bill–and his staff scrambled to clarify that he’d merely vote “on” it. Kay Bailey Hutchinson says it’ll be a “problem” if she can’t vote to amend the Ryan budget, which is likely to be the case. Dick Lugar says he hasn’t decided how to vote.

Same Store Sales Growth

While some analysts believe the company has already seen a peak in same-store sales growth, I believe its acquisition of CSK Auto Stores could serve as an important catalyst going forward. O’Reilly acquired the West Coast auto-parts leader for a hefty $1 billion in 2008. Since then, the company’s devoted much of its effort and spending toward rebranding its more than 1,000 acquired stores, and even more importantly, moving the CSK outlets onto the O’Reilly point-of-sale and distribution system.

Dual Market Strategy

The company’s results were attributable to solid consolidated comparable store sales growth led by its dual market strategy and strong distribution network as well as effective cost control measures. Comparable store sales (change in sales for stores open at least one year) rose 5.7% during the quarter versus 6.9% in the same quarter of prior year.

Quarter Sales

Sales during the quarter scaled up 8% to $1.38 billion from $1.28 billion for the same period a year ago. It was slightly higher than the Zacks Consensus Estimate of $1.37 billion. Gross profit increased 8% to $670 million (48.4% of sales) from $618 million (48.3% of sales) in the first quarter of 2010.

Cash Equivalent

O’Reilly had cash and cash equivalents of $230.1 million as of March 31, 2011, a significant increase from $29.9 million in the corresponding period-end a year ago driven by higher operating cash flow. Long-term debt was $498.8 million as of the above date, down from $702.5 million as of March 31, 2010. This translated into a lower long-term debt-to-capitalization ratio of 14% compared with 20% in the prior year.

Pharmaceutical Care

Omnicare, Inc., a Fortune 500 company based in Covington, Kentucky, is a leading provider of pharmaceutical care for the elderly.  Omnicare serves residents in long-term care facilities, chronic care and other settings comprising approximately 1.4 million beds in 47 states, the District of Columbia and Canada.  Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings.  Omnicare’s pharmacy services also include specialty pharmacy operations and a wide range of support services for specialty pharmaceuticals. 

Business Unit Model

With over 25 years of quality service, Omnicare CR has established its own strategic business-unit model to best serve the most complex trials. Over the last five years, Omnicare CR has successfully completed over 1,500 studies worldwide with more than 337,000 participating patients. Now, as the CRO takes this next step forward, added support from Nautic will allow Omnicare CR to meet customer needs even more quickly.

Prescription Volumes

“Our first quarter results were driven principally by strength in prescription volumes, which were favorably impacted by higher utilization and generally stable occupancy rates at our customers’ facilities,” said Mr. Figueroa. “Further, our generic dispensing rate climbed 120 basis points sequentially, benefitting both Omnicare and its payors alike. These volume-related and pharmaceutical market developments continue to support our plan, to reposition the company for sustained growth.”

Traders

Traders wanting to establish a position should place close attention to Office Depot’s price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $4.84 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Office Product Warehouse Stores

Office Depot, Inc. (NYSE:ODP) operates a chain of office product warehouse stores in North America, Europe, Asia and Central America. The Company sells branded merchandise and provides business services primarily to small and medium-sized businesses and the home office market. Office Depot’s current stock range is defined by current calculated support defined at $4.10 and by the resistance level at $4.84, which should be used by traders planning their trades.

First Quarter Sales

First quarter 2011 sales in the North American Retail Division were $1.3 billion, a decrease of 2% compared to the same period last year. Same store sales in the 1,115 stores in the U.S. and Canada that have been open for more than one year decreased 1% in the first quarter compared to the prior year period. Average order value rose slightly in the first quarter versus prior year while customer transaction counts declined in part due to the negative impact of winter weather.

Operating Profit

The North American Retail Division reported an operating profit of $58 million for the first quarter of 2011, compared to $73 million reported in the same period of the prior year. The operating profit decline was driven primarily by the negative flow-through impact from lower sales, rolling over a shrink benefit reported one year ago, incremental advertising expense to drive brand awareness and additional investment in key initiatives. These factors were somewhat offset by lower property costs.