Tuesday, August 30, 2011

The Business to Business Marketing Resource


International Tractor Advertising Poster by Wisconsin Historical Images


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What is advertising? Advertising is a means of conveying information to consumers about a product or service that exists in many different media. Advertising serves to persuade and inform a consumer base in order to influence them and their purchasing power. (47) No matter the channel by which the advertising is communicated, be it in print, video, or sound-all advertising seeks to accomplish the same goal.

Is advertising a direct affect Popular Culture, or is it a direct effect of Popular Culture? Through the exploration of advertising history in the 20th century, brand identities and their development, along with the examination of Popular Culture, and historical events occurring during the same time frame, we can hope to
find an answer to both of these questions.

Lowering of prices and the beginning of mass production made products more widely available to the public, and thus carrying with it, the need to bring their attention to the new items on the market. With the creation and development of the transcontinental railroad, a national market for products opened.

Although the first advertising agency was developed in 1841 by Volney B. Palmer, it wasn't until the 20th century that advertising agencies began to offer a full spectrum of services ranging from branding and logo design, to concepts, and implementation of the campaign. Originally, the agency served to secure the ad space in a newspaper. By the time the 20th century began there were several agencies for companies to choose from. Experts started coming out of the woodwork left and right to share their thoughts on advertising and the best methods to use, writing book after book on the subject. (1)

The nearly three decade span between 1900 and 1929, known as the "Lost Generation" signified a time in our history full of hardship, and struggle for the majority of America. However, it was during this time that several changes took place, affecting the world as we know it today. America at this time was emerging as a global superpower, and facing many of the same issues we still see in our current society; immigration, poverty, labor and safety issues. (6)

The Lost Generation was referred to as such because "their inherited values could not operate in the postwar world and they felt spiritually alienated from a country they considered hopelessly provincial and emotionally barren". More specifically pertaining to a group of writers, all people who were born and came of age during this time are collectively known as members of this generation. (11)

Women and minorities were beginning to find a sense of liberation while they took over running the commercial world in place of the men, who were off fighting in World War I. The development of Henry Ford's assembly line and vehicles occurred in 1914 and made travel possible for more American citizens each and every day. (3)

It was during this era that advertising a product moved from a static announcement about the new product, to a more persuasive manner; actually trying to convince a consumer that they needed the new product. By using this technique advertisers developed repeat customers for a company, which in turn created brand loyalty. Brand loyalty helped even more to bring new products to an existing consumer base, while increasing the consumer base in general. Brand Loyalty "is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually". (31) Brand loyalty occurs because something about the product, be it features, quality, price and value, or even the manner in which it was advertised, has convinced the consumer that it is worth purchasing continually; whether it be on a regular basis or not. To create brand loyalty, advertisers have to break an existing consumer habit, create the new habit of buying their product versus the competitor, and strengthen the newly developed habit by repeating the value of the product and encouraging maintaining purchase of the product in the future. In order for brand loyalty to work efficiently, an advertiser must present the product with a "personality" giving its advertising memorable and positive qualities. (31)

Before World War I, scandalous journals exposing greed and corruption in the business sector were able to achieve widespread circulation. Because of changes in print technology introduced in the 1890's, and a new heavy dependence on advertisers, production costs were lowered; and the discount was reflected to the consumer. Since the magazines were more affordable, they began to circulate publicly more than in the past. Readership began to fall when consumers were bored with the slander, and the magazines began to change course from the "muckracking" and moved to consumerism.

Soon after the change, magazines like Ladies Home Journal, and Saturday Evening Post became staples in most middle class homes. In 1923, a gentleman by the name of Henry Luce began production of Time Magazine, aimed at an audience of serious newsreaders.

With these tools in hand, the advertising industry was soon reaching millions of readers on a daily or weekly basis. Keeping this in mind, the industry chose to step up the game a little by hiring famous figures (movie stars, sports stars, etc) to endorse a product. Famous names and faces were used to endorse anything and everything from medicine and household products to cigarettes and other forms of tobacco.

Woodbury Soap launched its "A Skin you Love to Touch" ad campaign in Ladies Home Journal in 1911, making it the first ad campaign to use sex appeal. (2) The use of sex appeal in this campaign is a clear landmark in advertising history. (10)

In 1915, several agencies form the National Outdoor Advertising Bureau, and eventually end up in control of nearly 75% of America's outdoor advertising. (2) This group was created in order to serve the outdoor advertising needs of multiple agencies; and to inspect fields used for clients.

By the year 1917, the American Association of Advertising (AAAA) is created. This advertising association consisted of 111 charter members, and was America's first agency trade association. (2) AAAA represents the advertising agency businesses in the country. "The AAAA is not a club. It is a management-oriented association that offers its members the broadest possible services, expertise and information regarding the advertising agency business." (8)

America's first radio station debuted in 1920--KDKA, Pittsburgh--breaking new ground for advertising by providing yet another medium to communicate a message with. (2). KDKA's license was issued October 27, 1920, and was the first radio license ever issued in the United States. The call letters "KDKA" were assigned to the station from a roster maintained to provide identification for ships and marine shore stations. At the time these were the only regular radio services operating under official license by the United States Government. When the license was finalized, the call letters given to the station were just the next on that roster. (9)

In 1922, AT&T's radio station in New York, WEAF, begins to sell advertising spots, 10 minutes of airtime to the first person willing to pay $100. A real estate firm out of Long Island purchased 15 spots at a rate of $15 each. Four years later in 1926, the station is bought out to form the National Broadcast Company, and the call letters were changed to WNBC. The following year, a competing radio broadcasting network emerged, known as Columbia Broadcasting Company. (2)

Throughout the mid twenties to the latter parts of the decade, several radio shows are broadcast through advertisers. For instance, in '24, Goodrich tires sponsored the first hour long radio show over nine different stations. (2)

After the stock market crashed in 1929, America left an era of prosperity to enter into an era full of collapse, with the Great Depression and World War II. The generation of this era is referred to as the "G. I. Generation" or the "Greatest Generation".

The people of this generation came into the world during the years of World War I, came of age during the Great Depression, and lifted the country out of wartime at the end of World War II. This generation had the sharpest rise in school attendance ever to be seen at this point in history and people of this generation were the first to benefit from the prosperity of the "Roaring '20's". As teenagers, these generations dealt with the turmoil caused by the Great Depression; and in the latter years of their lives, were the ones responsible for building beautiful neighborhoods, finding incredible vaccinations, and countless other accomplishments. (17)

Ultimately, this was a time in our history that lacked in rich advertising because revenue was so low everywhere. Black Tuesday, (October 29, 1929) the day the stock market crashed, and the ensuing economical collapse that followed led to a dramatic rise in the nation's unemployment rate-- 25%, nearly 15 million Americans were without work, and many families struggled to survive. (15) The desire to create new products or to purchase new products may still have existed, but the means with which to do so, simply did not.

In 1938 in the midst of the Depression, radio surpasses magazines as the most popular method of advertising to use. (2) One can gather that this is due to the costs of printing and distributing the magazines; whereas many people already owned radios from the financial success of the previous decade.

Perhaps the most significant advertising of this era comes from World War II. The War Advertising Council is created in 1942 to aid in organizing the voluntary advertising campaigns to boost wartime efforts. Amazingly the council collects roughly $350 million in advertising free public service announcements. When the war was over, the council dropped the word "war" from its name to become known as the Advertising Council. (2)

Development of commercial television was beginning during this era, with a set of standards for electronic television broadcasting being created and settled upon during the spring of 1941. World War II caused a delay in the commercial development of television, though research efforts resulted in a better product and consumer market. At the close of the war, less than 7,000 functioning television sets were in the country; and only nine different networks on air throughout the country. Many of the networks aired simulcasts of the popular radio shows at the time. The commercial development of television later on will prove itself to be one of the most effective and widely used methods of advertising. (16)

The "Greatest" Generation ironically is succeeded by the "Silent" Generation. This generation of people is referred to as such because they were the children who suffered at the hands of the Great Depression, who were too young to participate in the war effort, and too old to be the free spirits of the next generation. The American citizens of this generation were known for marrying early, and for becoming "the risk-averse technicians and professionals-as well as the sensitive rock 'n rollers and civil-rights advocates-of a post-crisis era in which conformity seemed to be a sure ticket to success. Midlife was an anxious 'passage' for a generation torn between stolid elders and passionate juniors." (19) The Silent Generation felt as though they were a "generation without a cause". (20)

The expansion of television ownership during this era allowed for yet another medium of advertising, the television commercial. Advertisers were unsure of how to go about using this method to their advantage. At first, they thought it would best to treat TV advertising as radio advertising, with pictures thrown in. After conducting many surveys, studies showed that the best way to reach an audience about a product would be to create shows that featured a single product or line of products.

Using the concept, many shows from the 1950's came about, such as the Kraft Television Theatre, Coke Time, and Colgate Comedy Hour. This concept had one flaw. As more people began to purchase televisions for use in their homes, more people watching television meant more production costs; because the television networks raised the costs of doing business with them.

The solution to this problem was developed by NBC Executive Sylvester Weaver. His concept, known as the magazine concept, would prove beneficial to all parties involved-consumers, advertisers, and television networks. This concept proposed that rather than advertisers sponsoring an entire show, the sponsor would purchase time blocks within a show. These time blocks ranged from one to three minutes, and this would allow for up to four sponsors to advertise a product within a show. The concept gets its name because like a magazine, the networks would control content, rather than one advertiser "owning" a show. As with any new concept, the magazine concept was met with resistance. However, by the year 1960, it was shown that this method worked far better than the previous one, and is actually the one still in use today. Sponsors can now spread advertising dollars over several networks and blocks of time to ensure that they reach their specific audience the best. The one exception to the magazine advertising model is the infomercial, which reverts back to original television advertising practices-sponsoring an entire show, or block of time, to be aired on a particular network, at a particular time. (21)

With television advertising, came the mystery, who's watching what, and when? How do we know the most efficient time frames and networks to advertise our product on? A company known as A.C. Nielsen, (still very popular in our current television and retail markets) began collecting data in 1953, a year after being backed by the Advertising Research Foundation. By using the IBM 650 computer to compute audience data, along with recordimeter (a device placed in homes) to verify accuracy of information; Nielsen provided advertisers with valuable information about who was watching what and when, so they could more appropriately distribute their advertising budgets to reach the largest consumer base. (22)

The Civil Rights Movement began in 1955 and American Advertising underwent a massive change. This lead to advertisers using more African American and other nationalities in their commercials, as previously our advertising had been focused on other citizens.

The "Boomer" Generation, also known as the "Baby Boomer" Generation grew up as children with suburban conformism, good nuclear families, and Dr. Spock. The teenage years from the Summer of Love (1967) meant the people of this generation came of age rebelling against their parents. Youth morals changed, and created a slide in SAT scores, the worst ever seen in the 17 years prior. As they entered young adult hood in the '80s, many of the boomers found themselves absorbed in mainstream careers, and living "perfectionist" lifestyles. The boomer generation will give America several political figures, and change the world with "culture wars". (23)

Baby Boomers represent about 29% of the U.S. population, as there are about 75 million of them today. A Baby Boomer is a child born between the years of 1946-1964, and though no official rule states this, these years are the most commonly accepted time frame. The baby boom began at the end of World War II.

The children born early in the "boom" were in their early 20's when President Kennedy and Martin Luther King, Jr. were assassinated, and vividly remember Watergate and the Vietnam War. All of these events had an impact on the people of this generation, who they were, and who they became.

On the other end of the boom spectrum, people born after 1959 are too young to have recollections of the assassinations mentioned above, and therefore are very different people. People born at this end of the time period were much more likely to use illegal drugs, and heavily at that. While this generation has much to tie it all together, there is plenty to separate it.

It was this generation who pushed the divorce rate up to 50%, making it an acceptable normalcy for the children of the next generation, and even our current one. In society, the boomers have become the largest age related demographic, with numbers "too large to ignore" so for the past several years, a vast majority of advertising has been dedicated to reaching them; everything from SUV's to active retirement communities!

Many of the nation's current "big names" of society are boomers. Take for instance President Clinton, President Bush, and many other political figures, i.e. Hillary Clinton, Tony Blair, and yes, I said it, even Osama. Oprah, Madonna, Bill Gates, Steven Spielberg, Meg Ryan, Letterman, Leno.... All these people are boomers, and all these people are names we know! (26)

Historically during this time, President Lyndon B. Johnson declares a "War on Poverty" in 1964. It was also during this year that the negative side effects of smoking were brought to the attention of the public eye, with the Surgeon General's Warning being legally required on each pack. Cigarette advertising still reflected the habit as healthy and refreshing. (24) A ban on television and radio advertisements for cigarettes was passed through congress in 1969, signed into law by President Nixon in 1970, and became effective on January 2, 1971. (28)

In 1965 the American Advertising Federation develops a code of ethics for advertising which states that advertising shall be truthful, and agencies should be able and willing to provide proof of all claims. The advertising shall be free of offensive material, and shall serve to speak of their product, rather than bashing competitors. Advertising should only focus on products that are available for purchase at the advertised price, and should not utilize exaggerated claims or false savings claims. Any guarantees or warranties should be stated clearly and avoid misleading information. Any testimonials in advertising should only come from competent people who are reflecting a "real and honest choice". (29)

America's first Super Bowl takes place in 1967, with the Green Bay Packers winning over the Kansas City Chiefs. (24) Little did America know at the time that Super Bowl advertising would end up being a high cost, highly competitive battle. The record for a 30 second spot of advertising time during the NFL show down hit 2.4 million dollars in 2005! (30)

In the 1960's, television advertising accounted for 9 minutes of a television show per one hour block of time, with the average commercial length being about 60 seconds. Nothing regulated the commercials aimed at children, and the kids saw about twice the advertising as adults did, with an average of 16 minutes per hour television show. (28)

Popular advertising icons such as Ronald McDonald and Cap'n Crunch (1963), Fruit Loops Toucan Sam (1964) and the Pillsbury Doughboy (1965) made their first appearances during this decade.

With color television becoming such a big deal during the '60s, advertising began to stress the importance of the bright colors, to make sure the colors on the screen were true to their real life counterparts. (28)

The 1970's continued to bring on change as its 1960's predecessor did. Television went from "Father Knows Best" a wholesome family show, to "Three's Company" a show with three unmarried roommates slap full of sexual innuendos. The first interracial couple on television came with "The Jeffersons".

The "Seven Dirty Words You can Never Say on Television or Radio", a comedic skit by George Carlin in the '60s, cut the list down to three in the '70s. This goes to show how much change that television and radio underwent in this decade span.

The sexual revolution that began in the 1960's "came of age" in the 1970's with the birth control pill now becoming widely readily available and the Supreme Court Roe vs. Wade case now legalizing abortion. These events paved way for the sexual freedom that many experienced during the time.

With it the 1970's brought massive amounts of illegal drugs for the boomers to use. It's speculated that over half of the seventy five million boomers participated in the use of the recreational drugs, and did so frequently, and massively. (27)

The Supreme Court gives the advertising industry first amendment protection in 1976. Prior to this time, no commercial advertising was protected under the rights of the first amendment, and the protection is only granted to truthful advertising. (34)

The late 1970's also saw a dramatic jump in the number of networks available to the public for viewing with cable, allowing for more television advertising. The new networks of the decade were: HBO, TBS, Nickelodeon, Showtime, and ESPN. (31)

The 1980's see a plethora of radical events that changed the way Americans thought about several issues. There was an overall decline in birth rates, a record rise in marriage and divorce rates, and the end of the casual sex era had come; this was because was AIDS becoming prevalent in American lives. A sort of hysteria came over the American public when faced with AIDS. Many Americans did not understand the disease, where it came from, how it was contracted, and how to avoid it. Despite the decline in casual sex due to fear of contracting a sexually transmitted disease, there was a sharp rise in teen pregnancies; and nearly half of those pregnancies ended in abortion. The legalities of abortion also came under fire, as many citizens began to believe and fight for the rights of a fetus, claiming abortion as murder. This continues to be hot topic issue today, and appears to be just as split now, as it was then. (33)

At the turn of the decade, Ted Turner creates CNN, one of the most popular news sources we see in our society today. When it debuted, the network was shown to 1.7 million cable subscribers, and has seen exponential growth since then. CNN is now a world news leader because of its work with groundbreaking technology, as well as many talented journalists. (35) The number of cable subscribers was continuously on the rise, prompting new satellites, which allowed for additional networks to launch and become part of the cable package.

Music Television, otherwise known as MTV debuts in 1981 as a network showing music videos. The first music video aired was "Video Killed the Radio Star" by the Buggles. During the first hours of airing, there were several problems with clips and promos being aired in the wrong sequence, or without audio, but they made it on air after the many difficulties they faced setting up the network. (32) The nature of the network brings a change to television commercials. (2) The popular culture of the 1980's was heavily influenced by the music videos that MTV aired. Clothing and hairstyles were reflected by what viewers saw in the videos. How a musician looked in their videos became just as important as how they sounded on a track, and many artists of the time were able to take advantage of this. (32)

Other television networks to arrive on the cable circuits at this time were: Black Entertainment Television (BET), USA, Cinemax, The Weather Channel (TWC), Playboy, Disney, Country Music Television (CMT), VH-1, Lifetime, the Discovery Channel, and various others. (31)

Generation X comes next in history, with members of this generation being born between 1961 and 1981. Generation X is referred to as such because they were the "odd" generation, the "Friday the 13th generation, crossed out with a capital X. More recently the term has come to mean "Xtreme" for the cutting edge personalities many of the people possess. (39) Sometimes this generation is called Generation 13. (37) People of this generation survived an early force into adulthood, dealing with split families due to the high divorce rates, becoming latch-key kids because only one parent was around, and he/she was working to support the family. This generation came of age holding back the earlier rise in childhood offenses and plunge in test scores-yet they heard themselves condemned as such slackers they would put the country at risk for harm and misfortune. As folks of this generation aged from childhood to adolescence and young adulthood, they dealt with the AIDS crisis, and tended to date and marry with caution for fear of the STD. From a political standpoint, the majority of this generation would rather volunteer for a good cause that vote in an election, as they lean toward no affiliation. (38)

Historically speaking, the mid '80s to late '90s was a time focused on materialistic and egotistical ventures, being all about the wealth and the individual. Credit card use became high as people were becoming focused on having anything and everything their hearts desired regardless of cost. The mottos of the time became, "If you've got it, flaunt it, you can have it all!" and "Shop 'til You Drop!". (40)During this time many women came on to the forefront in professions normally occupied by men. For instance, Sandra Day O'Conner and Ruth Bader Ginsburg became the first female Supreme Court Justices. Sally Ride became the first woman to explore outer space. In addition to the new ground broken by women, African American men took charge with Jesse Jackson becoming America's first African American Presidential candidate.

The high divorce and low birth rates that America saw in the '70s changed when Generation X members began graduating from high school. They began to take a new approach to parenting, as to combat the ways of their parents, by keeping a closer eye on their children, and following up with their whereabouts and activities. (39)

With it, the '80s brought more scientific and technological advances and more people began to use personal computers in their homes, which fueled the growth of the internet; which would soon become another large source of revenue for advertisers and consumers alike. (40)

Video Cassette Recorders (VCR) gradually became more affordable, leading to a 200% sales increase. When the federal government ruled that recording TV shows on to blank tapes for home viewing wasn't illegal, we see our first forms of modern day TiVo, digital video recording.

The number of computers with internet access jumped from 30,000 in 1985 to 160,000 by 1989. By 1991, the web as we know it today was developed and put into use.

Popular advertising icons from the '80s include the Dominoes Pizza Noid, California Raisins, and the Snuggle Teddy Bear.

One of the most popular advertising campaigns to hit TV debuted in 1984 with Wendy's "Where's the Beef?" slogan. Statistics show this ad being responsible for a 31% sales increase. (41)

The 1990's doesn't seem so far back in our past, yet there is plenty of nostalgia to commemorate it. Many of us remember those days as if they were just yesterday, but let us take a trip back down memory lane and we may learn something new!

Popular trends in the 1990's include the return of the 1970's clothing styles of bell bottoms, floral prints, etc. The grunge and gothic looks find popularity. Short shirts that allowed women to show a little midriff area are widely seen throughout this time period. Tattoos, body piercings (the nose, navel, tongue, and multiple ear) gained popularity as a statement of self expression and individuality. (43)

The most popular celebrity news was of the O. J. Simpson police chase in the unforgettable white bronco, the murder trial, and the subsequent acquittal that made him become the most famous celebrity to be charged with murder. Lest we not forget the less publicized events, such as River Phoenix's death because of a heroin and cocaine overdose, Saturday Night Live star Phil Hartman being shot to death in his sleep by his wife, who later committed suicide, and the drive by shooting death of famous rapper, Notorious B. I. G. in 1997. (44)

In 1993, the Michael Jackson child molestation drama that we still see and hear of today, when speaking of more recent events, begins. The case in '93 was dropped, though Jackson settled with the child for $20 million while continuing to persist that the claim was false. (45) During the same year, while filming a Pepsi commercial, Jackson's hair caught fire, leading to a reconstructive surgery on his scalp, and thus prescription strength pain medicine. The medicine turned into an addiction and he had to enter rehabilitation facilities in Europe. (46)

The progression of the internet continues throughout the 1990's, beginning with 1991: the web now has 5,000 networks, 4 million users, 1 web server, 4 web pages. As the New Year approaches, the net has 10 servers. In 1992, the internet has reached 7,500 networks, 20 million users, and 50 websites on 26 web servers. The following year, we hit 130 websites on 50 servers, and by 1996, we reach 603,367 websites, on 10 million hosts. This was the first year the amount of email sent and received exceeds that of the United States Postal Service. Between 1996 and 1999, we reach 10 million websites on 40 million host computers. The mid-nineties brought many of the search engines we use today, Ebay.com, and java applets. By the end of the decade, the internet started having negative aspects, such as viruses, and spam. (43)

Some of the most popular advertising campaigns of the decade come from Taco Bell, Budweiser, and Motel Six. Who can forget, "Yo Quiero Taco Bell!" and the little Chihuahua puppy? Or, the Budweiser frogs, and "Bud-Wies-ER", and the, "I love you man, but you're not getting my bud light!" campaigns? And of course, "I'm Tom Bodet, we'll leave the light on for ya". (43)

Advertising has certainly come a long way since the beginning of the century. While the basic principles remain the same, as society becomes more accepting of certain topics, the advertising will continue evolve. For instance, consider in the '50s when it was taboo for pregnancy to be shown on television. "I Love Lucy" broke this wall down (48), and it is now commonplace. Things that are "politically incorrect" and aren't seen in advertising during one time period become accepted and visible in another.

The answer to our question, whether or not advertising is a direct effect or affect of advertising, is simple. Both are yes. Advertising uses what it sees as popular in its audience at the particular time the campaign is ran, to call attention to the product. What people see in the advertising of a product that they consider popular, creates a new trend in culture. Advertising both directs and reflects popular culture. Thousands of products are advertised daily in many different ways. Oftentimes people will discuss the manner in which the product was advertised as frequently, if not more so than the product itself. What makes any particular advertisement memorable is the "personality" which it is given, and the consumers ability to relate. While some advertising has proven itself to be more effective than others, once again it all serves the same basic purpose-to inform, and persuade. As long as there is a creative motivation to create new products and to allow the familiar ones to continually impact us, advertising will continue to drive and be driven by popular culture.

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12. http://www.rccolainternational.com/about_history.aspx

13. http://inventors.about.com/library/inventors/bl7up.htm

14. http://www.angelfire.com/ga/struitt/pepsi.html

15. http://www.pbs.org/wgbh/amex/dustbowl/peopleevents/pandeAMEX05.html

16. http://scriptorium.lib.duke.edu/adaccess/tv-history.html

17. http://www.fourthturning.com/html/gi_generation.html

18. http://www.thecoca-colacompany.com/heritage/chronicle_symbol_friendship.html

19. http://www.fourthturning.com/html/silent_generation.html

20. http://library.thinkquest.org/23440/silent.html

21. http://ezinearticles.com/?A-Brief-History-of-Television-Advertising&id=427382

22. http://www.nielsenmedia.com/nc/portal/site/Public/menuitem.138fa1f1af8ff0919a69c71047a062a0/?vgnextoid=fb5579a21afc5010VgnVCM100000880a260aRCRD

23. http://www.fourthturning.com/html/boom_generation.html

24. http://www.bbhq.com/sixties2.php?caller=sixties

25. http://www.bbhq.com/cgi-bin/boomeryr.pl?67

26. http://www.bbhq.com/whatsabm.htm

27. http://www.bbhq.com/sevente2.htm

28. http://members.tripod.com/lisacafe/60sbuyme.html

29. http://ethics.iit.edu/codes/coe/amer.ad.fed.1965.html

30. http://money.cnn.com/2005/01/20/news/fortune500/superbowl_ads/

31. http://www.angelfire.com/il3/timemachine/80stv.html

32. http://members.tripod.com/retrolisa/videos.html#history

33. http://eightiesclub.tripod.com/id44.htm

34. http://www.firstamendmentcenter.org/Speech/advertising/overview.aspx

35. http://www.cnnblogawards.com/since1980.php

36. http://memory.loc.gov/ammem/ccmphtml/colatime4.html

37. http://library.thinkquest.org/23440/er.html

38. http://www.fourthturning.com/html/13th_generation.html

39. Online Lectures from AiO History of Pop Culture Week 5

40. http://kclibrary.nhmccd.edu/decade80.html

41. http://members.tripod.com/lisanostalgia1/80sproducts.html

42. http://heritage.coca-cola.com/

43. http://www.angelfire.com/retro2/lisa2/90s4.html

44. http://www.seeing-stars.com/Died/90s.shtml

45. http://www.seeing-stars.com/Died/Scandals1.shtml

46. http://www.seeing-stars.com/Died/Scandals2.shtml

47. http://www.learnthat.com/define/view.asp?id=162

48. http://www.fiftiesweb.com/i-love-lucy.htm

Friday, August 19, 2011

Comparing Granite and Marble Countertops: Which A person Really should You Choose?

Granite and marble are both stones which suggests they are each durable, heavy, and surprisingly tough. Concurrently, simply because each these stones can truly final a lifetime, they can be equally equally high-priced and quite tough to polish and install. Because they can be each stones, they may be obviously patterned, hence, you may get granite or surface encounters marble that is definitely not really comparable towards the style from the catalog that you ordered so it might be very best to really see the genuine products when choosing the type of style and design and pattern that you just want as an alternative of relying only on images. Both equally are warmth resistant plus they usually do not scorch when put even using a very very hot material these kinds of as iron pots and pans.



However, granite is way more durable than marble and it can be more resistant to scratches and serious impacts compared to marble. At the same time, granite is much more defiant to acids these as vinegar, lemon juice, and tomato juice, and also other items with high levels of acidity. To assist you superior recognize the strengths of both stones, let us consider a closer glimpse as to how they had been shaped. Marble, and all its stone family - onyx, travertine, and limestone with the onset ended up sediments produced of shells, plant make a difference, animal skeletons, and silt which all settled for the bottom of bodies of drinking water and after decades of being soaked in drinking water, they solidify and develop into stones/ Marble’s principal element is calcium and that's the reason why it has a tendency to react to acids this kind of as vinegar as well as other drinks that contain citrus. Granite, on the other hand, is built up of crystallized minerals formed inside the earth’s mantle at substantial temperature. The final result is a tough, really resistant stone. Marble can be scratched and etched by acids because it is produced of calcium carbonate which is a great deal like chalk nevertheless the only big difference is surface encounters marble is compressed and inside a crystallized form. Within the identical manner, marble has less patterns, in reality it's more commonly marketed in its white shade so stains and mars may well stand out a lot more exposed in marble. Granite features a a lot more complicated pattern that may hide the stains better. When it comes to models nonetheless, marble includes a finer, much more stylish search than granite. The crystal formations in marble are far more satiny and finer in nature rendering it look much more luxurious. Granite has bigger, pea-sized crystals which can be coarser towards the eye.



In the end, with regards to longevity, the granite countertop would be far more long lasting and much more resistant to stains and scratches whilst the seems are won by marble. Marble however is inexpensive than granite however it involves bigger routine maintenance. So, it all boils right down to that which you seriously want being a countertop. Would you settle for any countertop that's very hard-wearing and however not as pretty as the other a person, or would you trade splendor for longevity and power?

Monday, August 15, 2011

Background Examine Someone Using Criminal Data

An employment online background check is now usually done not only to possible employees but to present workers for marketing as well. It's usually done to validate information discovered on an employee's resume or application form. It's also done to determine the best suited possible employee among the applicants. Also with what has happened on September 11, 2011, employers are actually extremely worried with the type of workers they employ.

A background investigation includes criminal, arrest, imprisonment, and intercourse offender documents. This is really a type of examine exactly where state data are examined to research if a possible employee or current worker has been convicted or charged with any crime against the state.

Citizenship, immigration and legal operating standing checks are also done simply because American companies are barred from hiring unlawful workers by the Division of Homeland Security and its Immigrations and Customs Enforcement Division.

iPhone Background - Cracked Stone by Patrick Hoesly


Litigation data are also checked. Workers who often file discrimination cases may be recognized as a risk into a company thus employers resort to litigation checks. Also, these businesses who do business with the government don't wish to hire whistleblowers who file qui tam suits.

Driving and vehicle records are also component with the background check, particularly when a possible employee is applying for a driver place. Employers appear for employees who have thoroughly clean driving records or those who have no records of vehicular accidents or visitors tickets.

Drug test data will also be being checked. An employer wouldn't want to utilize drug addicts in his company because of company ethics, employee performance will probably be impacted and improve of workers' compensation premiums.

Education records are also component with the criminal search investigation. This really is done to verify educational attainment of the possible employee and occasionally to check if applicant has had misdemeanor data in class.

Previous employment records might also be checked particularly in the event the applicant will fill a delicate position in the business. This really is usually carried out verbally.

Financial info is also checked especially if the position being crammed requires someone to deal with large amount of cash.

For experts, licensing records are checked for complaints, disciplinary actions and investigations.

Medical, mental and physiological files are also checked simply because a possible worker may not be match to function for health reasons. A written consent in the applicant should be procured prior to going through the entire procedure.

Social safety number examine is also carried out because identity theft is quite rampant. A previous existence might be concealed or an applicant may not have fulfilled the citizenship necessity may be verified via the social safety quantity.

Even though most the over data are public records and may be procured from different government companies within the United states of America, it's nonetheless extremely inconvenient for employers to do track record check on its potential employees as well as current employees. You will find numerous private investigators who offer the support. Also, you will find third celebration providers who also offer the same kind of support. There are also accessible on-line information banks which can offer the essential info about people. What they do is they buy U.S. public data and offer them on-line for a charge.



Time to Repair A Reduced Credit rating Having a Bad Credit score Loan

Some are even looking at personal bankruptcy within their hard work to obtain rid of credit card financial debt. Credit card financial debt settlement could help a borrower steer clear of that.

7 to 10 Numerous years

Bankruptcy includes a very extended phrase damaging impact around the buyer who utilizes it to obtain from debt. But, plenty of Americans are going through personal bankruptcy. Bankruptcy can stay in your credit score score report from 7 to ten a long time. That smudge in your credit history can make it pretty difficult to get a residence, or perhaps a car, and even a job, in the long term. You will find other options to personal bankruptcy for these with mind-boggling monetary financial debt, check my credit score or in any other case.

Bank card financial debt Settlement a Terrific Option to get rid of Credit score Card Credit card financial debt

One these sorts of option that exists is really a tactic recognized as monetary debt settlement. What transpires is the fact that a debtor negotiates with a creditor to pay back a part of the financial financial debt. Hunting in the option - missed payments, regular reminders and cellphone calls, personal bankruptcy - a creditor might probably very properly be keen to go over a lower payback volume or decrease month to month payments. Specifically with so plenty of buyers facing bankruptcy or the prospect of defaulting, most collectors are delighted to get some funds somewhat than none. Forestalling personal bankruptcy can be an outstanding effective situation for both equally you as well as your creditor.

ccf Canada Credit Fix - Equifax & TransUnion Credit Report Repair 1-866-530-3646 by www.canadacreditfix.com


Credit score score Card Monetary debt Settlement Negotiation

Approaching a loan business, perhaps just one you have had to cope with in the previous rather than on the most amicable conditions, can be daunting. There's also a good offer of financial track document awareness the normal purchaser just does not have. The typical shopper just does not have a superior hold on their rights and strengths.

Pennies around the Dollar towards Eliminating Bank card Debt

Financial debt settlement needs a free credit score negotiator approaching every single lender and negotiate a pay-back selection. Usually, this complete may be truly essential -- up to 50% or a lot much more of the genuine debt. So quite a few individuals at current are around the brink of individual catastrophe, typically hunting to bankruptcy. Since of this, numerous collectors are relieved to be acquiring anything on the bank card financial debt somewhat than next to absolutely nothing. That will occur quickly have to a borrower declare personal bankruptcy.

Finding a Negotiator

Bank card debt negotiators know how you can tactic loan companies and other collectors. They've an in-depth know-how of financial markets, financial developments, and the fluctuation of curiosity costs and currencies. This information may be priceless when it arrive to negotiating a financial debt settlement. Also, just after preliminary negotiations, the negotiator will be ready to offer you the overcome shopper as to their rights and option pertaining towards the credit card financial debt.

Payment Due to

As soon as all the negotiations have taken region, and this could obtain weeks, specifically if you have much more than 1 or two creditors with whom you're making an attempt to get rid of bank card debt, the payments will probably be produced towards the negotiator and he or she will maintain track the conditions they have negotiated are kept. The debtor will end up performing one particular cost-effective payment the moment a month, to 1 specific place, at 1 rate of interest.

Wednesday, August 3, 2011

Making Money Cash

If you’re looking for investing strategies to help identify undervalued stocks with strong cash holdings, look no further. Your education starts here.


We put together a list of potentially undervalued and fiscally sound stocks by finding names that met all of the following conditions:


- Trailing twelve month (TTM) net profit margin is at least 30% higher than the net profit margin in the previous period. Net profit margin (TTM) is also above 10%.
- Current price is 20% or more below its target price
- Cash and cash equivalents over the recent quarter greater than long-term debt.
- Market cap above $500M


Lastly, we narrowed down our results by identifying the stocks that have experienced significant levels of net institutional buying over the current quarter.


Investing can be complicated, especially when so many accounting terms are being used. If any of the terms above don’t make sense to you, have no fear. Let’s take a look at what each of these metrics mean and why they are important: 

Cash and cash equivalents exceeding long-term debt: It is always good for a company to have solid holdings of cash and cash equivalents. Cash is the most liquid asset because it can easily be used to pay off debts, taxes, dividends, etc. in a pinch, while other assets like property and inventory take time and/or effort to convert to cash, a concept known as "illiquidity".

When a company has more cash than debt, risks to stockholders are lessened because these companies are better prepared to carry their debt and more likely to pay out dividends.

Increasing Net Profit Margin: Net profit margin describes how much profit a company keeps for every $1 it generates in revenues. It is calculated as net profits divided by sales and is reported as a percentage. Increased net profit margin is a good thing because it means the company is retaining more earnings and implies that it is in better control of its costs.

Trailing twelve months (TTM): TTM is an indication that the calculated data has come from the last twelve months.  For example, if data released in July 2045 is "TTM" (ie, P/E TTM or "Trailing P/E"), this means the price and the earning-per-share data comes from the twelve-month period of August 2044 to July 2045. 

Target Price: Analyst target prices can be very useful guides for investors. The target price is a price level set by analysts that, based on their data and estimates, represents their predictions for that company in the upcoming year. Because analysts often have different opinions, we use the average analyst target price. Although target price is upwardly biased, a steep discount from this number can signal that the company has more value to price in (meaning, the stock price may rise).

Institutional Buying: Institutional investors are also known as "big money" investors or managers. They represent big pools of money such as investment banks, pension funds, mutual funds, hedge funds, endowment funds, etc. When they invest in stocks, they can invest hundreds of thousands of dollars or more at one time.


Regular investors pay attention to what institutional investors do because it is easy enough to assume that the big money managers know what they are doing -- or at the very least know more than the average investor. This is why these investors are also sometimes referred to as "smart money.” Note, investors should never blindly trust analysts or institutional investors or anybody else. Use information on institutional investing with other research before making any investing decisions.



Given the data points, do you think these companies will reach their target price? Are institutions making the right moves? Use the list below as a starting-off point for your own analysis. Click on the heat maps to access free, interactive tools to analyze these ideas

Data sorted in alphabetical order.



Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned


 


1. GeoResources, Inc. (GEOI): Independent Oil & Gas industry. Market cap at $607M. Net profit margin (TTM) at 21.61% vs. prior net profit margin (TTM) at 0.17%. Recent price closing at $23.84, compared to target price of $31.86 (implies a potential upside of 33.63%. Cash and equivalents (for recent quarter) at 42.15M vs. long-term debt of $0. Net institutional shares purchased over the current quarter represent 42.74% of the 19.42M share float. 


2. HFF, Inc. (HF): Mortgage Investment industry. Market cap at $512M. Net profit margin (TTM) at 12.79% vs. prior net profit margin (TTM) at 0.09%. Recent price closing at $14.23, compared to target price of $18.00 (implies a potential upside of 26.49%. Cash and equivalents (for recent quarter) at 72.34M vs. long-term debt of $209K. Net institutional shares purchased over the current quarter represent 12.28% of the 28.51M share float. 


3. Hollysys Automation Technologies Ltd (HOLI): Industrial Electrical Equipment industry. Market cap at $512M. Net profit margin (TTM) at 16.46% vs. prior net profit margin (TTM) at 0.04%. Recent price closing at $9.41, compared to target price of $14.84 (implies a potential upside of 57.68%. Cash and equivalents (for recent quarter) at 102M vs. long-term debt of $33.17M. Net institutional shares purchased over the current quarter represent 10.38% of the 31.78M share float. 


4. LogMeIn, Inc. (LOGM): Information Technology Services industry. Market cap at $909M. Net profit margin (TTM) at 17.14% vs. prior net profit margin (TTM) at 0.12%. Recent price closing at $37.78, compared to target price of $50.43 (implies a potential upside of 33.48%. Cash and equivalents (for recent quarter) at 176M vs. long-term debt of $0. Net institutional shares purchased over the current quarter represent 9.81% of the 20.38M share float. 


5. Mercury Computer Systems Inc. (MRCY): Computer Peripherals industry. Market cap at $573M. Net profit margin (TTM) at 13.96% vs. prior net profit margin (TTM) at 0.07%. Recent price closing at $18.99, compared to target price of $25.00 (implies a potential upside of 31.65%. Cash and equivalents (for recent quarter) at 156M vs. long-term debt of $86K. Net institutional shares purchased over the current quarter represent 20.56% of the 27.73M share float. 


6. Optimer Pharmaceuticals, Inc. (OPTR): Biotechnology industry. Market cap at $553M. Net profit margin (TTM) at 14.19% vs. prior net profit margin (TTM) at -40.69%. Recent price closing at $11.94, compared to target price of $18.67 (implies a potential upside of 56.34%. Cash and equivalents (for recent quarter) at 180M vs. long-term debt of $0. Net institutional shares purchased over the current quarter represent 12.37% of the 42.04M share float. 


7. TransGlobe Energy Corporation (USA) (TGA): Independent Oil & Gas industry. Market cap at $911M. Net profit margin (TTM) at 17.98% vs. prior net profit margin (TTM) at 0.08%. Recent price closing at $12.41, compared to target price of $16.77 (implies a potential upside of 35.12%. Cash and equivalents (for recent quarter) at 8.63M vs. long-term debt of $56.73M. Net institutional shares purchased over the current quarter represent 14.71% of the 69.33M share float. 


(List compiled by Becca Lipman)


New to the investing game and interested in learning some metrics that can help you analyze a company’s prospects? If so, this can be a great place to start your education.


To create the list of stocks below we have pulled together several financial analyst metrics to find companies with bullish indicators. Each term is defined in detail to help you perform your own analysis.


In making this list we focused on cash flow growth - arguably one of the most important considerations in the financial analysis of a company. While earnings and net worth are subject to management estimates, cash flow is very difficult to alter.


We wanted to search for companies exhibiting positive trends in cash flow growth. We began by screening for those companies that also had a high compound annual growth rate (CAGR) in free operating cash flow (above 20%) for the past 3 years. We then focused on the names that remain significantly undervalued to their mean analyst target price.


These companies also have higher earnings before interest, taxes, depreciation and amortization (EBITDA) than debt for the last year. Lastly, we narrowed down our list by those experiencing significant increases in institutional buying over the current quarter.


Don’t fully understand these terms? Let’s take a look at what each of these metrics mean and why they are important: 
 


Compound Annual Growth Rate - CAGR
This is the year-over-year growth rate of an investment over a given time. In this article, we used CAGR with Free Operating Cash flow (see below). When a company has a high Free OCF growth rate, it means the company has become increasingly efficient in generating cash from the running its business.


Free Operating Cash Flow
Free operating cash flow (FOCF) is the total operating cash flow minus all operating expenditures, such as wages, repairs, and depreciation. Strong free cash flow signals a company's ability to pay debt, dividends, and invest in their business growth.


Institutional Buying
Institutional investors are also known as "big money" investors or managers. They represent big pools of money such as investment banks, pension funds, mutual funds, hedge funds, endowment funds, etc. When they invest in stocks, they can invest hundreds of thousands of dollars or more at one time.


Regular investors pay attention to what institutional investors do because it is easy enough to assume that the big money managers know what they are doing -- or at the very least know more than the average investor. This is why these investors are also sometimes referred to as "smart money.” Note, investors should never blindly trust analysts or institutional investors or anybody else. Use information on institutional investing with other research before making any investing decisions.


Earnings before interest, taxes, depreciation and amortization (EBITDA)
This is an indicator of financial performance calculated as:  Revenue – Expenses (excluding tax, interest, depreciation and amortization). Usually it is used as a proxy for what is available to pay interest. It is useful to compare EBITDA to debt, as EBITDA is earnings available before paying off interest on debt.


Target Price 
Analyst target prices can be very useful guides for investors. The target price is a price level set by analysts that, based on their data and estimates, represents their predictions for that company in the upcoming year. Because analysts often have different opinions, we use the average analyst target price.
Although target price is upwardly biased, a steep discount from this number can indicate an undervalued opportunity.

Given the data points, do you think these companies are undervalued? Are institutions making the right moves? Use the list below as a starting-off point for your own analysis.



Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

1. Zumiez Inc. (ZUMZ): Services Industry. Market cap $797.63M. Net institutional shares purchased over the current quarter at 3.2M, representing 14.76% of the 21.68M share float. 3-year CAGR of free operating cash flow at 75.70%. Last year EBITDA at $53.76M vs. total debt at $0. Current price at $25.73 vs. target price at $30.88 (implies a potential upside of 20.02%).

2. Synaptics, Incorporated (SYNA): Technology Industry. Market cap $887.42M. Net institutional shares purchased over the current quarter at 4.3M, representing 12.66% of the 33.96M share float. 3-year CAGR of free operating cash flow at 72.34%. Last year EBITDA at $70.36M vs. total debt at $2.3M. Current price at $25.91 vs. target price at $32.68 (implies a potential upside of 26.14%).

3. Ebix, Inc. (EBIX): Technology Industry. Market cap $762.17M. Net institutional shares purchased over the current quarter at 3.7M, representing 10.87% of the 34.03M share float. 3-year CAGR of free operating cash flow at 56.61%. Last year EBITDA at $58.54M vs. total debt at $35.57M. Current price at $19.31 vs. target price at $29.50 (implies a potential upside of 52.77%).

4. LogMeIn, Inc. (LOGM): Technology Industry. Market cap $901.88M. Net institutional shares purchased over the current quarter at 2.0M, representing 9.81% of the 20.38M share float. 3-year CAGR of free operating cash flow at 165.17%. Last year EBITDA at $21.91M vs. total debt at $0. Current price at $37.5 vs. target price at $50.43 (implies a potential upside of 34.48%).

5. KongZhong Corporation (ADR) (KONG): Services Industry. Market cap $191.87M. Net institutional shares purchased over the current quarter at 530.4K, representing 9.4% of the 5.64M share float. 3-year CAGR of free operating cash flow at 159.85%. Last year EBITDA at $10.16M vs. total debt at $3.55M. Current price at $5.08 vs. target price at $10.00 (implies a potential upside of 96.85%).

6. Travelzoo Inc. (TZOO): Services Industry. Market cap $1108.25M. Net institutional shares purchased over the current quarter at 517.8K, representing 9.35% of the 5.54M share float. 3-year CAGR of free operating cash flow at 34.87%. Last year EBITDA at $25.86M vs. total debt at $0. Current price at $67.33 vs. target price at $109.40 (implies a potential upside of 62.48%).

7. OpenTable Inc. (OPEN): Technology Industry. Market cap $1943.46M. Net institutional shares purchased over the current quarter at 2.0M, representing 9.11% of the 21.95M share float. 3-year CAGR of free operating cash flow at 61.46%. Last year EBITDA at $25.48M vs. total debt at $0. Current price at $82.56 vs. target price at $104.70 (implies a potential upside of 26.82%).

8. LHC Group, Inc. (LHCG): Healthcare Industry. Market cap $440.8M. Net institutional shares purchased over the current quarter at 1.4M, representing 8.91% of the 15.72M share float. 3-year CAGR of free operating cash flow at 90.95%. Last year EBITDA at $103.15M vs. total debt at $0. Current price at $23.61 vs. target price at $28.70 (implies a potential upside of 21.56%).

9. AsiaInfo-Linkage, Inc. (ASIA): Technology Industry. Market cap $1245.54M. Net institutional shares purchased over the current quarter at 4.0M, representing 8.86% of the 45.15M share float. 3-year CAGR of free operating cash flow at 21.01%. Last year EBITDA at $84.95M vs. total debt at $0. Current price at $16.96 vs. target price at $26.92 (implies a potential upside of 58.72%).

10. ION Geophysical Corporation (IO): Energy Industry. Market cap $1533.94M. Net institutional shares purchased over the current quarter at 8.9M, representing 7.78% of the 114.35M share float. 3-year CAGR of free operating cash flow at 55.92%. Last year EBITDA at $180.43M vs. total debt at $108.66M. Current price at $9.89 vs. target price at $14.00 (implies a potential upside of 41.56%).

(List compiled by Becca Lipman)




reputation management process

<b>News</b> attacks — Crooked Timber

I've received the ultimate accolade from News Corporation, graduating from snarky asides and dark mutterings in which I'm identified only indirectly to a full-length hit piece in our only national (general) newspaper, ...

<b>News</b> attacks — Crooked Timber

Fox <b>News&#39;s</b> Twitter Keywords: Crime, Murder, Casey Anthony - Peter <b>...</b>

Fox News Twitter followers click on links about scary stuff. New York Times followers pay attention to basketball. And Economist readers are interested in yogurt.

Fox <b>News&#39;s</b> Twitter Keywords: Crime, Murder, Casey Anthony - Peter <b>...</b>

Great <b>news</b>: Service industry now slowing down, too « Hot Air

Great news: Service industry now slowing down, too.

Great <b>news</b>: Service industry now slowing down, too « Hot Air

Monday, August 1, 2011

Making Money Cash

Ikenna Njoku, 28, was thrilled when he bought his first home with the help of the homebuyer tax credit.


“I was really excited. For the first time, I actually got to buy a lawn mower, mow my lawn and everything,” he told King5 News in Seattle.


As a construction worker in the post-housing bubble Njoku was grateful that he qualified for the first time home buyer tax credit on his tax return. But when he went to cash the JP Morgan Chase check at Chase Bank, the teller told him the check "looked fake," took Njoku's ID and called Bank Support.


After waiting another 15 minutes, Njoku told Chase he needed to take off and run an errand. When he came back the bank was closed and when he called customer service they told him to come back the following day.


He did, but instead of the money the police were waiting for him. “They just threw me in jail. They called the police and said this guy has a fraudulent check,” Njoku said.
 
He was charged with felony forgery on Thursday. “I was like - you’re making a mistake, you’re making a mistake, don’t take me to jail, I got work tomorrow. I can’t afford to miss work,” he said.


On Friday, Chase Special Investigations recognized the check as legitimate and rather than call a 24 hour number, they called the detective in charge of the arrest and left a message that wasn't heard until Monday morning.


By that time Njoku's car was towed from the bank's lot, he'd lost his job by not showing up and his check had been seized as evidence. Because he couldn't access his money his car was then auctioned off.


Almost a year later, Njoku has yet to receive an apology from the bank. Last week a Seattle attorney offered to help and sent the bank a three-page letter demanding reparations.


King5 News tried contacting Chase and a week later received this two line email from Darcy Donoahoe-Wilmot at Chase Media Relations: "We received the letter and are reviewing the situation.  We'll be reaching out to the customer."


Check out the King5 story below:





New to the investing game and interested in learning some metrics that can help you analyze a company’s prospects? If so, this can be a great place to start your education.


To create the list of stocks below we have pulled together several financial analyst metrics to find companies with bullish indicators. Each term is defined in detail to help you perform your own analysis.


In making this list we focused on cash flow growth - arguably one of the most important considerations in the financial analysis of a company. While earnings and net worth are subject to management estimates, cash flow is very difficult to alter.


We wanted to search for companies exhibiting positive trends in cash flow growth. We began by screening for those companies that also had a high compound annual growth rate (CAGR) in free operating cash flow (above 20%) for the past 3 years. We then focused on the names that remain significantly undervalued to their mean analyst target price.


These companies also have higher earnings before interest, taxes, depreciation and amortization (EBITDA) than debt for the last year. Lastly, we narrowed down our list by those experiencing significant increases in institutional buying over the current quarter.


Don’t fully understand these terms? Let’s take a look at what each of these metrics mean and why they are important: 
 


Compound Annual Growth Rate - CAGR
This is the year-over-year growth rate of an investment over a given time. In this article, we used CAGR with Free Operating Cash flow (see below). When a company has a high Free OCF growth rate, it means the company has become increasingly efficient in generating cash from the running its business.


Free Operating Cash Flow
Free operating cash flow (FOCF) is the total operating cash flow minus all operating expenditures, such as wages, repairs, and depreciation. Strong free cash flow signals a company's ability to pay debt, dividends, and invest in their business growth.


Institutional Buying
Institutional investors are also known as "big money" investors or managers. They represent big pools of money such as investment banks, pension funds, mutual funds, hedge funds, endowment funds, etc. When they invest in stocks, they can invest hundreds of thousands of dollars or more at one time.


Regular investors pay attention to what institutional investors do because it is easy enough to assume that the big money managers know what they are doing -- or at the very least know more than the average investor. This is why these investors are also sometimes referred to as "smart money.” Note, investors should never blindly trust analysts or institutional investors or anybody else. Use information on institutional investing with other research before making any investing decisions.


Earnings before interest, taxes, depreciation and amortization (EBITDA)
This is an indicator of financial performance calculated as:  Revenue – Expenses (excluding tax, interest, depreciation and amortization). Usually it is used as a proxy for what is available to pay interest. It is useful to compare EBITDA to debt, as EBITDA is earnings available before paying off interest on debt.


Target Price 
Analyst target prices can be very useful guides for investors. The target price is a price level set by analysts that, based on their data and estimates, represents their predictions for that company in the upcoming year. Because analysts often have different opinions, we use the average analyst target price.
Although target price is upwardly biased, a steep discount from this number can indicate an undervalued opportunity.

Given the data points, do you think these companies are undervalued? Are institutions making the right moves? Use the list below as a starting-off point for your own analysis.



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1. Zumiez Inc. (ZUMZ): Services Industry. Market cap $797.63M. Net institutional shares purchased over the current quarter at 3.2M, representing 14.76% of the 21.68M share float. 3-year CAGR of free operating cash flow at 75.70%. Last year EBITDA at $53.76M vs. total debt at $0. Current price at $25.73 vs. target price at $30.88 (implies a potential upside of 20.02%).

2. Synaptics, Incorporated (SYNA): Technology Industry. Market cap $887.42M. Net institutional shares purchased over the current quarter at 4.3M, representing 12.66% of the 33.96M share float. 3-year CAGR of free operating cash flow at 72.34%. Last year EBITDA at $70.36M vs. total debt at $2.3M. Current price at $25.91 vs. target price at $32.68 (implies a potential upside of 26.14%).

3. Ebix, Inc. (EBIX): Technology Industry. Market cap $762.17M. Net institutional shares purchased over the current quarter at 3.7M, representing 10.87% of the 34.03M share float. 3-year CAGR of free operating cash flow at 56.61%. Last year EBITDA at $58.54M vs. total debt at $35.57M. Current price at $19.31 vs. target price at $29.50 (implies a potential upside of 52.77%).

4. LogMeIn, Inc. (LOGM): Technology Industry. Market cap $901.88M. Net institutional shares purchased over the current quarter at 2.0M, representing 9.81% of the 20.38M share float. 3-year CAGR of free operating cash flow at 165.17%. Last year EBITDA at $21.91M vs. total debt at $0. Current price at $37.5 vs. target price at $50.43 (implies a potential upside of 34.48%).

5. KongZhong Corporation (ADR) (KONG): Services Industry. Market cap $191.87M. Net institutional shares purchased over the current quarter at 530.4K, representing 9.4% of the 5.64M share float. 3-year CAGR of free operating cash flow at 159.85%. Last year EBITDA at $10.16M vs. total debt at $3.55M. Current price at $5.08 vs. target price at $10.00 (implies a potential upside of 96.85%).

6. Travelzoo Inc. (TZOO): Services Industry. Market cap $1108.25M. Net institutional shares purchased over the current quarter at 517.8K, representing 9.35% of the 5.54M share float. 3-year CAGR of free operating cash flow at 34.87%. Last year EBITDA at $25.86M vs. total debt at $0. Current price at $67.33 vs. target price at $109.40 (implies a potential upside of 62.48%).

7. OpenTable Inc. (OPEN): Technology Industry. Market cap $1943.46M. Net institutional shares purchased over the current quarter at 2.0M, representing 9.11% of the 21.95M share float. 3-year CAGR of free operating cash flow at 61.46%. Last year EBITDA at $25.48M vs. total debt at $0. Current price at $82.56 vs. target price at $104.70 (implies a potential upside of 26.82%).

8. LHC Group, Inc. (LHCG): Healthcare Industry. Market cap $440.8M. Net institutional shares purchased over the current quarter at 1.4M, representing 8.91% of the 15.72M share float. 3-year CAGR of free operating cash flow at 90.95%. Last year EBITDA at $103.15M vs. total debt at $0. Current price at $23.61 vs. target price at $28.70 (implies a potential upside of 21.56%).

9. AsiaInfo-Linkage, Inc. (ASIA): Technology Industry. Market cap $1245.54M. Net institutional shares purchased over the current quarter at 4.0M, representing 8.86% of the 45.15M share float. 3-year CAGR of free operating cash flow at 21.01%. Last year EBITDA at $84.95M vs. total debt at $0. Current price at $16.96 vs. target price at $26.92 (implies a potential upside of 58.72%).

10. ION Geophysical Corporation (IO): Energy Industry. Market cap $1533.94M. Net institutional shares purchased over the current quarter at 8.9M, representing 7.78% of the 114.35M share float. 3-year CAGR of free operating cash flow at 55.92%. Last year EBITDA at $180.43M vs. total debt at $108.66M. Current price at $9.89 vs. target price at $14.00 (implies a potential upside of 41.56%).

(List compiled by Becca Lipman)



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