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    November 13, 2009

    Competition is Global, and it's Good

    Capitalism is all about creative destruction.  If you want to stay on top, you have to earn it.  Every day.  Don't forget that!!!!

    Migrating to an open source solution

    Sheela Foam has doubled its system performance, slashed costs, and reduced processing time by 25% by implementing Red Hat Enterprise Linux, writes Nivedan Prakash

    A $200 million group and an ISO 9001:2000 company, Sheela Foam is the largest manufacturer of flexible Polyurethane Foam (PU) in India. The company ranks among the top five PU foam manufacturing companies in the Asia-Pacific region. In India, the firm has many manufacturing units, supported through a distribution network of over 70 distributors and 3,000 dealers.

    The firm also has a presence in Australia, with five manufacturing units located in five major cities. A combination of manufacturing excellence and distribution network has enabled the company to capture over 40% of the Indian PU foam market.

    Business challenges

    Sheela Foam had previously developed its own custom Enterprise Resource Planning (ERP) application, Greatplus, based on a proprietary enterprise database management system running on a proprietary UNIX environment to automate its entire production process—from procurement to production.

    This custom-built ERP was integrated into Sheela Foam’s distribution network of 70 distributors and 3,000 dealers and the firm also used an innovative SMS-based tracking system that helped it accurately track and maintain inventory with its distributors and dealers. With every dispatch made by the company to the dealer, an SMS message was sent to the distributor about the stock dispatched to him.

    In this process, every transaction made by over 1,500 users worldwide each day was recorded by the ERP system. While the self-constructed ERP system helped Sheela Foam boost customer confidence, it also meant that the costly system had to be available 24x7. In an effort to improve its cost-value ratio, lower costs, and reduce vendor lock-in, Sheela Foam evaluated a number of platforms, including those based on open source technology.

    “As a company, we wanted to maximize the value gained from the support provided, as the support costs were too high and prevented us from scaling effectively,” said Pertish Mankotia, Head of IT, Sheela Foam.

    Moreover, Sheela Foam’s Proprietary UNIX system, forced it to depend on a proprietary vendor to test and implement improvements, which further made the process less effective and expensive to maintain.

    “We decided to adopt an open source solution after the company’s UNIX system went down and took more than 16 hours to recover. As a mission-critical system, any system downtime directly impacted the reputation of the company and in turn, sales and profits. The incident provided Sheela Foam the impetus to migrate to an open source solution that could be independently maintained by its own IT team,” added Mankotia.

    Implementation in a nutshell
    CompanySheela Foam
    SoftwareRed Hat Enterprise Linux 5 and a popular enterprise database management system
    HardwareDell 2950 PowerEdge server with 2 Intel Quad Core Xeon-based E5410 processors
    Migration PathFrom proprietary UNIX to Red Hat Enterprise Linux 5
    Challenges
    • To reduce dependence on UNIX systems
    • Improve cost-efficiency ratio
    • Simplify systems management
    • Improve scalability for business growth
    Benefits
    • Eliminated vendor lock-in
    • Doubled system performance
    • Slashed costs by one-tenth translating into cost savings of over Rs 40 lakhs
    • Gained the ability to independently manage systems

    The Solution

    After evaluating a host of options, Sheela Foam consulted Red Hat Enterprise Linux partner Keen & Able Computers. Convinced about the value offered, the company decided to run Red Hat Enterprise Linux 5 on an Intel Xeon processor-based Dell PowerEdge server. The preloaded Dell 2950 PowerEdge server and the thoroughness of the implementation team made the migration and installation of Red Hat Enterprise Linux (RHEL) quick and easy. The system was ready to be tested and could be deployed immediately.

    Benefits of the implementation

    RHEL has enabled the Sheela Foam to deploy its ERP system on a single server, compared to the two servers that were previously required, doubling system performance with no downtime. The Red Hat solution has also reduced the amount of time required for processing heavy reports by 25%.

    It has also brought down the costs of maintaining backups and server redundancy in the face of unforeseen failures. The reduction in servers and associated maintenance costs has translated to cost savings of over Rs. 40 lakh. The firm now spends only Rs. 4 lakh per year compared to the more than Rs. 44 lakh on its previous UNIX system.

    The deployment has doubled Sheela Foam’s performance levels, significantly lowered costs, and has given it the ability to independently manage its systems. Today, the company’s IT team is able to make improvements with ease.

    “I have complete peace of mind because Red Hat Enterprise Linux running on an Intel Xeon processor-based Dell PowerEdge server system is known for its stability and is well-designed to scale to the rapidly growing demands of our organization. My only regret is that I did not start this earlier,” said Mankotia.

    The solution has given the Sheela Foam IT team the ability to focus on more strategic issues that can boost the competitiveness of the company.

    nivedan.prakash@expressindia.com

    http://www.expresscomputeronline.com/20091116/casestudy14.shtml

    Posted at 07:52 PM in Company News | Permalink | Comments (0) | TrackBack (0)

    Ecofil Update

    Arnco’s Environmentally Friendly Ecofil® Marks Strong First Year

    Arnco, the world's largest supplier of polyurethane flatproofing products marks the one-year anniversary of their revolutionary product ecofil®. Released last year at the World of Concrete Exhibition, ecofil® has become an instant success with many customers. Arnco has sold over ten million pounds of ecofil® during its first year (equivalent to approximately 40,000 tires filled).

    South Gate, CA (Vocus/PRWEB ) November 13, 2009 -- Arnco, the world's largest supplier of polyurethane flatproofing products marks the one-year anniversary of their revolutionary product ecofil®. Released last year at the World of Concrete Exhibition, ecofil® has become an instant success with many customers. Arnco has sold over ten million pounds of ecofil® during its first year (equivalent to approximately 40,000 tires filled).

    News Image

     Presently, the prices of oil and petrochemicals have stabilized mainly due to the weak demand caused by the world-wide recession. But we can be sure that as demand increases we will see more spikes in these highly speculative commodities and the price of 
    The announcement came from Arnco President Larry Carapellotti who said “ecofil® has proven itself as a viable tire flatproofing alternative with the benefits of using 50% less petrochemicals and an inherently less expensive price. Its performance benefits have also been proven in most OTR tire applications.”

    Mr. Carapellotti continued, “Presently, the prices of oil and petrochemicals have stabilized mainly due to the weak demand caused by the world-wide recession. But we can be sure that as demand increases we will see more spikes in these highly speculative commodities and the price of flatproofing will increase accordingly. That is why we at Arnco are committed to the concept of less oil dependent products which are both good for the planet and more stable economically.”

    Mr. Carapellotti finished by saying, “We are proud of our contribution to environmental and economic stewardship and wish to thank all of our customers that have participated in this new technology development. It is our pledge to continue to bring innovations like ecofil® to the market with the commitment and demand from our loyal customers.”

    To thank their customers loyalty Arnco has initiated the “one tote, one tree” (onetoteonetree.org) program. Through this program Arnco is planting one tree for every tote of Arnco material sold. Since starting the program they have planted close to 13,000 trees.

    Arnco is based in South Gate, CA., and has production facilities in South Gate, CA, Berea, OH, and Manchester, England. For further information, call 800-821-4147, or visit the newly designed Arnco website at www.arnconet.com

    ###

    Posted at 07:43 PM in Company News | Permalink | Comments (0) | TrackBack (0)

    BASF, Meet Proctor & Gamble

    BASF is getting into branding . . .


    The BASF brand is about to become more visible now for BASF's polyurethane customers all over the world. With the launch of the new Polyurethane Solutions brand and associated harmonization of branding across European affiliates, BASF showcases the benefits of the global Verbund for PU customers: Polyurethane Solutions stands for customer focus, innovation, flexibility, consulting and problem solving expertise, and excellent product quality from a global network of more than 35 BASF system houses.

    The new brand will be visible on the title page of a PUR customer magazine.
    The new brand will be visible on the title page of a PUR customer magazine.

    Customers all over the world experience first hand the company's customized consulting and development services in polyurethane systems and specialties whenever they do business with BASF's polyurethanes specialists. Polyurethane Solutions brings BASF close to the customer, providing local support to help customers become even more successful. "It also gives customers all over the world access to BASF's expertise, problem-solving skills and extensive presence in many key industries," comments Jacques Delmoitiez, head of BASF Polyurethanes division.

    The new branding intensifies BASF's market presence in polyurethanes and harmonizes branding for the BASF affiliate Elastogran GmbH in Europe by using the BASF corporate brand for all Elastogran sites. BASF will continue to use the Elastogran name to market polyurethane services in Europe in the PU Solutions Elastogran brand.

    "BASF is not only a reliable globally leading manufacturer of PU basic products, but also offers customers in every part of the world the support they need to optimize product performance, especially regarding customized PU system solutions," Jacques Delmoitiez continues. "Our customers benefit from the wide-ranging applications and positive features of polyurethane as a specialty plastic - as well as BASF's extensive global knowledge and experience."

    In the highly service-oriented polyurethane systems and specialties business, experience and expertise are what customers require. With its network of system houses, BASF offers fast local support in the development of individual solutions, including technical service, sales and marketing. BASF ensures reliable supply of basic polyurethane products like MDI, TDI and polyols on a global scale from the company's world-scale plants.

    Polyurethanes are used in a vast range of products. They make life more convenient, safer and enjoyable - and help save energy on a sustainable basis. Polyurethanes enable architects to design buildings with better insulation and allow car manufacturers to build more attractive, lighter-weight vehicles. BASF's PU customers also include top suppliers of sport and leisure footwear, mattresses, household appliances and sports equipment.

    BASF is the leading supplier of polyurethane basic products, systems and specialties. With its global network of more than 35 polyurethane system houses and its comprehensive product and service portfolio, BASF is the preferred partner of its customers in many industries. With its world-scale plants BASF secures its leading market position in the manufacture of polyurethane basic products in all regions of the world.

    Posted Nov 12, 2009

    http://www.azom.com/news.asp?newsID=19674

    Posted at 07:42 PM in Company News | Permalink | Comments (0) | TrackBack (0)

    November 12, 2009

    PU Critical to Manure Power

    Manure Power: Dairies harness methane to create renewable energy

    Posted by Jennifer Baldwin on 11/11/09 • Categorized as Green Living

    The 2,600 cows at Vintage Dairy west of Fresno produce up to 140 tons of manure per day. Photo by Jennifer Baldwin

    The 2,600 cows at Vintage Dairy west of Fresno produce up to 140 tons of manure per day. Photo by Jennifer Baldwin

    Four times a day, 5,000 gallons of water flush manure down the rows of the open-stall barns at Vintage Dairy – collecting about 90 percent of the waste. Photo by Jennifer Baldwin

    Four times a day, 5,000 gallons of water flush manure down the rows of the open-stall barns at Vintage Dairy – collecting about 90 percent of the waste. Photo by Jennifer Baldwin

    David Albers is a third-generation dairy farmer, and environmental lawyer, and founder and CEO of BioEnergy Solutions. Photo by Jennifer Baldwin

    David Albers is a third-generation dairy farmer, and environmental lawyer, and founder and CEO of BioEnergy Solutions. Photo by Jennifer Baldwin

    Albers demonstrates the thickness of the polyurethane liner covering the anaerobic digestion lagoon at Vintage Dairy. His guests are students from Independence High School’s energy academy in Bakersfield. Photo by Jennifer Baldwin

    Albers demonstrates the thickness of the polyurethane liner covering the anaerobic digestion lagoon at Vintage Dairy. His guests are students from Independence High School’s energy academy in Bakersfield. Photo by Jennifer Baldwin

    The “scrubbing plant” at Vintage Dairy cleans the biogas produced in the digester, upgrading it to high-quality methane that matches the purity of natural gas. The black tower on the left is the desulfurization tower and the white tower on the right burns off the carbon dioxide. Photo by Jennifer Baldwin

    The “scrubbing plant” at Vintage Dairy upgrades the biogas to high-quality methane that matches the purity of natural gas. The black tower on the left is the desulfurization tower and the white tower on the right burns off the carbon dioxide. Photo by Jennifer Baldwin

    A red valve marks the spot where Pacific Gas & Electric Company takes title to the biomethane produced at Vintage Dairy. Photo by Jennifer Baldwin

    A red valve marks the spot where Pacific Gas & Electric Company takes title to the biomethane produced at Vintage Dairy. Photo by Jennifer Baldwin

    David Albers knows the power of poop. Cow manure, that is. The third generation dairy farmer from Bakersfield has 2,600 cows producing about 130 tons of manure each day.

    But he prefers to count it differently.

    “The way we’ve broken it down is, two cows can power one home each day. So our cows power about 1,300 homes.”

    Just how does he make the leap from poop to power? Albers’ Vintage Dairy, located west of Fresno, is the first in the state of California – and one of the first in the nation – to capture the gas released from the decomposing manure, turn it into high-quality methane, and sell it directly to a power company as natural gas.

    In his case, he injects the gas into a Pacific Gas & Electric Company line that runs through his property. The utility company pays Albers for the gas, then pipes it to an energy plant, where it is burned to produce electricity.

    So not only does Albers make a profit as a dairy farmer, he also brings in income for creating and selling renewable energy. Furthermore, he’s helping to lessen the affects of global warming by reducing his dairy farm’s greenhouse gas emissions.

    It’s a practice he believes in so wholeheartedly, he has launched an entire business devoted to it. As founder and CEO of BioEnergy Solutions, based in Bakersfield, Albers offers to fund and install biogas systems at other dairies and split the gas revenue and emission credits with the farmers. So far, his is the only dairy with the system, which went online in 2008. He reports he has contracts with 39 dairies and letters of intent from 150 more.

    His project is certainly gaining attention.

    In September, the California Environmental Protection Agency and other state agencies honored BioEnergy Solutions with a Governor’s Environmental and Economic Leadership Award in the “climate change” category.

    Albers’ project “is at the top of our list for uses for methane,” said Dave Warner, director of permit services for the San Joaquin Valley Air Pollution Control District. “It gets fed directly into a pipeline, so it’s a perfect solution.”

    What to do with all that gas

    There are about 1.8 million diary cows in California producing methane – one of the main greenhouse gasses that cause global warming, and also one of the main sources of energy in this state. With a little “scrubbing,” all that methane can be purified and used to heat homes, generate electricity and even fuel cars.

    So why aren’t more dairies capturing and selling their methane? It comes down to money.

    “Financing is the big obstacle,” said Allen Dusault, program director for sustainable agriculture with the San Francisco-based nonprofit, Sustainable Conservation. He works with dairies that want to capture their methane and put it to use. But these systems are very expensive, and until recent law mandated power companies to use more renewable energy, dairies had a hard time selling either the natural gas or electricity generated on-site. For most dairies, the cost benefit of installing the methane digesters and scrubbing plants does not outweigh the savings from generating their own power. The systems can cost into the millions.

    Even so, there are about 30 dairies in California that digest manure and generate power on-site, according to Cindy Pollard, spokeswoman withPG&E. Of the dairies that use internal combustion engines to burn the gas and generate power, some have recently shut down, according to Dusault, after new regulations required the dairies to cut down on the nitrogen oxides released from those engines.

    Nitrogen oxides are one of the main culprits for ground-level air pollution, including summertime smog, said Warner of the air pollution control district. This is why the district prefers other uses for purified methane, called biomethane, such as injecting it into natural gas lines – or compressing it to fuel vehicles.

    One large dairy in Lindsey is doing just that. Hilarides Dairy has converted its fleet to run on natural gas and compresses its biomethane to fuel their trucks. According to an article by Dairy Herd Management, the 9,000-cow dairy is capable of producing an equivalent of 700 to 800 gallons of diesel fuel each day.

    Could California’s dairies effectively fuel natural gas-powered vehicles? A 2005 report, researched by Ken Krich of Sustainable Conservation, posed this fact:

    “Manure from about half the cows in California could provide enough biomethane to power all the natural gas vehicles currently operating in the state,” according to the report,Biomethane From Dairy Waste.

    Other industries that also produce a lot of methane, such as swine farms, landfills, waste water treatment sites and food processing plants, are also prime for biomethane production. California may want to look to Europe, particularly Sweden and Germany, where biomethane has become an industry standard over the past 10 years, according to Dusault.

    Warner says some waste water treatment plants in California are already capturing their methane and using it to produce their own electricity. And earlier this month, the world’s largest landfill gas to liquefied natural gas facility opened in Livermore. The gas can fuel up to 300 garbage trucks operated by Waste Management, according to the company’s website.

    How it works

    A tour of David Albers’ Vintage Dairy shows just how big of an operation it is to capture, clean and sell natural gas-quality methane. The tour starts in one of the long, open-stall barns that houses row after row of cows. Each row has a feeding station along one side and a sandy spot for the cows to lay down on the other. All manure is aimed into the center of the row.

    The first step in the process is effective manure collection, Albers explains, and this type of housing – unlike an open feed lot – allows his dairy to collect about 90 percent of the manure.

    “Four times a day, 5,000 gallons of water is pushed through here,” washing the manure down the row into a canal, Albers says.

    The canal transports the sludge to a processing pit, where it is then pumped about 200 yards away to a mechanical separator. Solids are dumped into a composting pile to be turned into fertilizer for the dairy’s feed crops.

    The liquid remainder flows by gravity into a 5-acre, 38-feet-deep pit covered with a thick liner made of high-density polyurethane. This is the anaerobic digester. In the absence of oxygen, bacteria break down the sludge and release biogas, which is composed of mostly methane and carbon dioxide, with a little hydrogen sulfide as well.

    The gas enters a perforated pipe that runs the perimeter of the covered lagoon and is delivered to an on-site “scrubbing plant” that first desulfurizes the gas, and then removes the carbon dioxide. The carbon dioxide is “flared,” or burned off (the effects of which are not harmful to the air, Warner of the air pollution control district said). What is left is high-quality methane that matches the purity of natural gas.

    The gas runs to a station 1,500 feet away where a compressor brings it up to the same level as the natural gas flowing through PG&E’s line running through the dairy’s property. Then, at a red valve, PG&E takes title to the gas.

    And, what happens to all of that water? Albers points to a crystal clear pond on the other side of PG&E’s right of way.

    “There’s nothing floating in it. It’s all been broken down in the digester,” Albers says. The water will be used to irrigate the dairy’s crops of alfalfa, wheat and sorghum when the economy lets up and it becomes feasible to grow their own feed again, he says. For now, their crop farming operations are shut down.

    Affects of the economy

    The economic recession has also slowed Albers’ plans for expansion. Once he’s able to secure the financing, his first step will be to build digesters at four neighboring dairies and pipe their biogas to his plant for processing.

    Next up will be to build a similar system in Shafter, starting with Tjaarda Dairy and expanding to its neighbors. That 3,000-cow dairy also has a PG&E natural gas pipeline running through it. By clustering the digesters, Albers can invest in one scrubbing station to be shared by several dairies.

    Perry Tjaarda has been in the dairy business for 45 years, starting in Corona, then Bakersfield and now, for the past 10 years, in Shafter. He’s experienced ever-tightening regulations and knows he has to do something to get ahead of future greenhouse gas emission rules.

    “Over the last few years a lot of focus has been put on dairies and the possible pollutants they produce. Are we polluting or are we not? And if we are, what are we doing about it?” he said.

    Regardless of the “science behind the rhetoric,” Tjaarda says he sees an economic benefit to capturing and utilizing the methane from his dairy’s manure – especially if Albers’ BioEnergy Solutions is willing to front the cost of the system.

    “By pumping into PG&E’s gas line, we get paid a little, David gets paid a little, and we get (emission) credits. It’s a win-win. It makes sense,” he said.

    All this wouldn’t be possible if a new law hadn’t been passed in 2006 that mandated utility companies in California to get at least 20 percent of their energy from renewable sources by 2010. It also helps that Albers has 10 years under his belt as an environmental lawyer and knows his way around the legal issues and permitting processes for dairies.

    Every time a project he represented was up for environmental review, “at least one person would say, ‘Why not build an anaerobic digester?’” he said. “Under California law, I would have to respond with an analysis showing we researched the economic feasibility.”

    And in every case it would not be economically feasible to build a digester only to produce an excessive amount of power that utilities would be unwilling to pay for. But when Senate Bill 107 passed in 2006, utilities changed their tunes. And, in November 2008, Gov. Arnold Schwarzenegger signed an executive order that utilities obtain at least 33 percent of their power from renewable sources by 2020.

    Furthermore, dairies face possible mandatory greenhouse gas emission reductions under Assembly Bill 32. That bill, called the “California Global Warming Solutions Act of 2006,” mandated the California Air Resources Board to develop a scoping plan to reduce statewide greenhouse gas emissions to 1990 levels by 2020.

    That plan points out that 6 percent of greenhouse gas emissions in California come from agriculture, and they are “largely methane emissions from livestock, both from animals and their waste.”

    While the plan currently calls for voluntary reductions among dairies, it also recommends revisiting the issue in 2013 to possibly make the reductions mandatory.

    If that becomes the case, manure digesters could become the industry standard for large dairies in California and Albers’s BioEnergy Solutions could very well be the state’s leader in the effort.

    PG&E spokeswoman Pollard said the utility does have contracts with other companies to buy biomethane. One of those is Microgy, a subsidiary of New York-based Environmental Power Corporation, which has plans to buildthree scrubbing stations near dairy clusters in Kerman, Riverdale and Hanford. But those projects are not yet online.

    Albers’ Vintage Dairy is the only one injecting biomethane from dairy manure into existing pipeline in California today.

    “I love what we’re doing,” Albers said. “With this kind of thing, we have to pinch ourselves. How cool is it to come up with something that’s good all the way around? We are doing an environmental project on a dairy, we are providing renewable energy to PG&E, the dairyman gets a new revenue stream, and all of us get cleaner air because there are less emissions in the atmosphere.”

    David Albers will be one of the featured speakers at the third annual Kern County Energy Summit presented by the Kern Economic Development Corporation. “Kern County’s Emerging Energy Technologies” is from 8 a.m. to 4 p.m. Thursday, Nov. 12, at Bakersfield Marriott at the Convention Center, 801 Truxtun Ave. Registration is $50. For a registration form, go to www.kedc.com or call 862-5150.


    http://bakersfieldexpress.org/2009/11/11/manure-power-dairies-harness-methane-to-create-renewable-energy/

    Posted at 07:43 AM in Technology | Permalink | Comments (0) | TrackBack (0)

    November 11, 2009

    Here Comes The Death Blow to Small Business

    As an entrepreneur and small business owner, my CPA has been warning of this for over a year now.  The government will want to eliminate the limit to FICA and Medicare taxes--this is a step in that direction.  Currently W2 earners pay 8.5% up to somewhere around $115K of earnings, with employers matching that amount.  If you run your own business, you pay the "employee" and the  "employer" portion of the taxes, each at 8.5% for a total of 17% on that portion of your income, even before the individual and business taxes.  

    How will these extra taxes affect small business?  Simple--they will downsize and take less risk, employ fewer people.  When your "fair share" gets a lot more than 50%, people will just shut down.  My opinion only, but this doesn't bode well for job creation . . .

    Reid eyes payroll tax hike on wealthy

    AP

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    Senate Majority Leader Harry Reid of Nev. gestures during a news conference toAP – Senate Majority Leader Harry Reid of Nev. gestures during a news conference to highlight the continuing …


      By DAVID ESPO, AP Special Correspondent – 19 mins ago

    WASHINGTON – Majority Leader Harry Reid is considering a plan for higher payroll taxes on the upper-income earners to help finance health care legislation he intends to introduce in the Senate in the next several days, numerous Democratic officials said Wednesday.

    These officials said one of the options Reid has had under review would raise the payroll tax that goes to Medicare, but only on income above $250,000 a year. Current law sets the tax at 1.45 percent of income, an amount matched by employers.

    It was not known how large an increase Reid, D-Nev., was considering, or whether it would also apply to a company's portion of the tax. President Barack Obama has said he will not raise taxes on wage earners making less than $250,000.

    The officials spoke only on condition of anonymity, saying they were not authorized to disclose details of private deliberations.

    Reid's spokesman, Jim Manley, declined comment and said the majority leader has made no final decisions and is awaiting detailed information from the Congressional Budget Office about the cost and coverage implications of the proposals he has drafted.

    Reid sent his proposals to the CBO more than two weeks ago and recently took the first step on the Senate floor to begin a debate on health care as early as next week.

    The House passed its version of the legislation late last week on a near party line vote of 220-215, a victory for Obama as well as his allies in Congress.

    In general, the House-passed measure and the one Reid is expected to propose are designed to expand coverage to tens of millions of uninsured, eliminate insurance industry practices such as denying coverage on the basis of pre-existing medical conditions, and slow the overall rate of growth in health care spendingnationally.

    Reid has been merging bills cleared earlier by two separate committees but has a virtual free hand in the bill he crafts.

    On one contentious issue, he has already said his measure will include an option for consumers to purchase health care from the government as a way to create competition with private companies. States could drop out of the system.

    The House bill is significantly more generous in providing subsidies to help lower-income individuals and families afford coverage, and Reid is under pressure to find additional financing. Additionally, a Senate Finance Committee-approved proposal to tax very high-cost insurance policies has drawn criticism from organized labor, which wants it either modified or dropped altogether.

    The House-passed legislation includes a surtax of 5.4 percent on income above $500,000 for individuals and $1 million for couples, a proposal that has drawn little if any backing in the Senate.

    The House's passage of a health care bill was marked by last-minute controversy over abortion, the result of far-reaching restrictions that foes of the procedure succeeded in inserting into the measure. No government-run insurance plan could cover abortions, except in cases of rape, incest or if the life of the mother were in danger. Nor could any health plan provide abortion coverage except for those three exceptions if any of its customers received federal subsidies.

    Obama has called for changes to ease the restrictions, and it was not known what the impact of the House-passed bill would have on the Senate. Officials have said Reid was ready to propose that individuals receiving subsidies would be able to buy abortion coverage with their own funds.

    http://news.yahoo.com/s/ap/20091112/ap_on_go_co/us_health_care_overhaul

    Posted at 09:22 PM in Tax Tips for Small Business | Permalink | Comments (0) | TrackBack (0)

    Tell It Like It Is

    Posted at 07:23 PM in Current Affairs | Permalink | Comments (0) | TrackBack (0)

    The Latest PU Gadget

    I don't know about you, but in our office we have more worries about the food that never leaves the fridge for months!

    New Invention: The Fridge Locker Stops the #1 Office Crime

    Fridge Locker is the world’s first personal food snack-urity system.

     98% of employees said the worst office crime was to steal food from the office refrigerator. 

    Las Vegas, NV (PRWEB) November 11, 2009 -- According to a 2008 study done by TheLadders.com, 98% of employees said the worst office crime was to steal food from the office refrigerator.

    The Fridge Locker

    The Fridge Locker

    In order to solve this shocking and growing epidemic, Locker Brand, Inc. has officially launched its flagship product: The Fridge Locker, worldwide.

    The Fridge Locker is a high density polyurethane storage unit that conveniently fits in just about any refrigerator and easily secures food and drinks with a chrome metal combination lock. Its application is perfect for any common areas such as offices, dorms, homes and schools.

    Users will never again feel the disappointment of finding a favorite food item missing when they open the refrigerator door…. With The Fridge Locker securing the snacks, Refrig-A Raiders don't stand a chance!

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    Posted at 03:31 PM in Technology | Permalink | Comments (0) | TrackBack (0)

    Propylene Up 2.5c/lb in November

    Chemical grade propylene contract prices settled at $0.48/lb for November, up 2.5c/lb from the October $0.455/lb.

    Spot propylene was last reported at $0.435/lb.

    Posted at 11:21 AM in Pricing and Markets | Permalink | Comments (0) | TrackBack (0)

    Most Valuable Blogs

    The world is really changing quickly . . .

    The Twenty-Five Most Valuable Blogs In America

    Posted: November 10, 2009 at 3:15 am

    uncle sam

    It has been nearly a year since 24/7 Wall St. did its latest edition of the Twenty Five Most Valuable Blogs. Valuations have moved up significantly since then. Advertising CPMs have improved markedly since the beginning of this year. A number of the largest blogs on our list have larger audiences than they did a year ago.

    All of the blogs analyzed here are private companies. Blogs owned by larger firms are not measured.  Blogs used primarily as fronts for other businesses have also been excluded. Some of the blogs on the list have raised VC money and those sums can be used as guidelines if they are disclosed. The only worthwhile value is what an acquirer will pay, so any estimate needs to take into account the value the blog may have to an outside buyer. Several blogs from earlier versions of this list were sold, among them Ars Technica and PaidContent. Some of the largest blogs based on audience measurements do not have significant revenue and are also excluded.  For instance, “The Daily Beast”, a large news commentary site controlled by IACI, takes almost no advertising. In theory, it has little if any economic value at all.

    Because of the recovering economy, 24/7 Wall St. has moved up the multiples that it assigned to blog revenue and operating profits, when there are any, by about 45% from our last list. Several large public companies in the media sector have stock prices that have doubled since their March lows. The prices being paid for online media properties are almost certainly rising.

    To determine value, 24/7 Wall St. looked at unique visitor and page view information from several public sources including Alexa, Quantcast, Compete, and comScore. These services are often criticized for estimating website traffic too low and we have taken that into account to the extent possible. We also looked at audience measurements provided by the blogs themselves when it seemed credible. Our estimated CPMs for ads are based on the current display and text ad environment, the quality of ads at each blog, and the number of ads that it runs on the average page. The CPM value assigned to each blog is based on all the ads it runs on its typical pages. To determine margins, 24/7 looked at headcount when available, and estimated costs of operating and maintaining websites. More complex content platforms were assigned higher monthly costs. Current audience growth rates were taken into account.  A site which has traffic doubling year-over-year was given a higher multiple than one which is losing traffic.  Because not all blogs make money, multiples of revenue and operating income were used to assess value. 24/7 used its estimate for revenue over the last three months and annualized the figure to derive an annual revenue and expense figure.

    Large blogs with big “moats” got higher multiple that smaller ones. Recreating Huffington Post or TechCrunch would be extremely difficult, even in a moderately good economy. Blogs with one founder who does most of the writing were given lower multiple because the presence of that single person is essential to the company’s value. Finally, blogs which have operated for a long time or have recently received funding received higher valuations because they are more likely to survive.

    1. Gawker Properties, $300 million. This group of blogs which includes Gawker, Deadspin, Gizmodo, and Lifehacker has about 23 million monthly unique visitors and 250 million page views. Owner Nick Denton has pointed out the business is highly profitable and growing and that advertising revenue has performed better than expected. Almost all the advertising at the family of websites is premium marketing from major companies. The average CPM on a page is estimated to be $20. That would drive $60 million in annual revenue. Gawker is not expensive to run. Its writers are paid relatively low wages. Many of the blogs Gawker owns have only five or ten writers and editors. Gawker keeps at least 50% of its revenue as operating income. The valuation is based on 10x operating income.

    2. The Huffington Post, $112 million. The Huffington Post is ranked first among all blogs on the Technorati 100, which means it has a huge number of websites linking to it. Quantcast puts its global unique visitor audience at 20 million. The site is set up to encourage navigation from page to page and uses editor slide shows to build page views which are probably about seven per visitor. Huffington advertisers are a mix of high and middle CPM marketers. Average CPM per page is about $10. The company’s annual revenue run rate should be up to $16 million. Huffington executives say that the company does not make money. Huffington’s prestige and its strategic value to a buyer make it extremely valuable. The 24/7 figure is based on seven times revenue, a much larger-than-normal premium for a media property.

    3. Perez Hilton, $44 million. The entertainment and gossip site have over 7 million unique visitors. 24/7 estimates twelve page views per visitor. The site carries very little premium advertising although its text link ads probably do well. CPM per page is $6. The site has revenue of about $6.2 million a year. Perez Hilton has very little staff and appears to have very low operating costs. The company’s margin should be 60%. This site would be very valuable to a large media company with online entertainment content.

    4. Drudge Report. $42 million. Most measurements of the blog show that traffic trends are flat to down. The site has about nine million unique visitors. Page view estimates published by Drudge are absurdly high. The site carries a very modest amount of premium advertising and it is unlikely that the CPM per page is above $5. Revenue is about $8 million. Drudge appears to have very low staff levels and extremely small operating costs. Operating income should be about $6 million.

    5. TechCrunch. $32 million. The sites that make up TechCrunch have almost 4 million unique visitors and the network has about eighteen million page views. CPMs are very high due to the quality and number of advertisers. 24/7 Wall St. estimates them to be $35 per page. Advertising revenue is about $7.5 million. Other related businesses bring in another $2 million. TechCrunch has a staff of about thirty. Company margins are about 30%, or just less than $3 million.

    6. PopSugar Properties. $26 million. The Sugar Network has 11 million unique visitors to its site which include PopSugar, FitSugar, GeekSuger, and SavvySugar. The visitors to the sites are young and predominantly female. The quality of the advertising is low and the sites probably do not get a CPM per page of much more than $6. The company has revenue of about $7.5 million a year. The sites have a very large staff, probably more than 60 people. Operating profits are no better than 25% of revenue, or $2 million. This company would have tremendous value to a media company that targets young women.

    7. Politico. $23 million. The site is the largest single media property in the US devoted exclusively to national politics. It has more than 5 million unique visitors and 40 million page views a month. Politico needs a better sales operation. It carries a number of high quality advertisers from corporate image and policy marketers mixed with a number of very low CPM campaigns. Advertising CPM per page is $10. Politico has a great deal of value to a national news organization. It does, however, have very high costs and employs at least 80  people. Politico loses $5 million a year on $5 million in revenue.

    8. MacRumors. $20 million. MacRumors has 6.5 million unique visitors per month and 45 million page views.  The quality of the advertising is weak. The company’s revenue is about $4.4 million. MacRumors staff is small and the publishing platform the site uses is probably very inexpensive. MacRumors margins are at least 50%. Competition in the “Apple” news website business has gotten fierce.

    9. Boing Boing. $18 million. This leading tech and gadget site has 3 million unique visitors a month and probably over twenty-four million page views. CPMs should be relatively high–$14. Boing Boing has revenue of $4 million. The company has thirty or more people so its margins are probably only 50%.

    10. Mashable. $17.5 million.This is the top blog in the country that concentrates on social media. It has 4.2 million unique visitors a month. Mashable employees about thirty people. The site has 30 million page views a month. Some of the advertising is from the tech industry and should carry high CPMS, but a fair amount of the inventory is sold to more generic marketers. Total CPM per page is $12. Total revenue for Mashable is $4.3 million. The site is in a highly competitive part of the blog market and is not the leading site in size or reputation. Margins are about 45%.

    11. Seeking Alpha. $16 million.Seeking Alpha, the financial content aggregation site, is now nearly as large as some major media websites like SmartMoney and FT.com. The site has 2.5 million unique visitors and 18 million page views. Revenue is $3.5 million a year because of the high quality of the financial advertisers that the site runs. The company has a large staff in Israel and the US. Seeking Alpha has a complex publishing structure. The company makes a very small operating profit. It would be very valuable property for a large media conglomerate that has business and financial websites. Unlike some other sites on the list, SA does not rely heavily on its founder and CEO for its future success.

    12. GigaOm. $15 million. This network of websites, founded by Om Malik, includes Tech Insider, CleanTech, Open Source, and Mac Lovers. GigaOm also has a paid research operation and runs several conferences. The sites have about 1.7 million unique visitors and 12 million page views. CPM per page $20. Total advertising revenue is $2.8 million. Sales from other divisions are $1 million. The company has close to 35 employees and high costs of operating conferences. Operating profit is $1.7 million.

    13. Breitbart Sites. $11 million. This family of sites includes Breitbart, Big Hollywood, Big Government, and Breitbart TV. Total unique visitors across all sites are 3.2 million and 18 million page views. The site carries a reasonable amount of premium advertisers. CPMs are $12, putting total revenue at $2.5 million. Staff levels seem to be very low and the publishing platforms are simple. Operating profit is about $1.5 million.

    14. SB Nation Network. $8 million. The company has a network of about 200 relatively small sites across all major sports. The network has 4 million unique visitors. SB Nation has about twenty employees. The sites are a page view machine but the advertising is low quality. Total revenue of $2 million with very modest margins.

    15. ReadWriteWeb. $7 million. The site covers online trends. It bills itself as a site for tech innovators. The site has 1.2 million unique visitors and 10 million page views. The company has a staff of ten. CPM per page is very high with some pages carrying as many as 10 premium ads. CPM at $20 brings total revenue to $2.4 million. Margins are probably close to $1 million. ReadWriteWeb is in an extremely competitive part of the online content business.

    16. The Business Insider. $7 million. The Business Insider is a family of websites covering media, the internet, business, and finance. The sites together have 1.8 million unique visitors and 14 million page views. The sites carry a large amount of premium advertising. The Business Insider revenue is about $2 million. The firm has a large staff of about 20 people and probably losses a modest amount of money.

    17. Destructoid. $5 million. Mega-gamer site with 1.1 million unique visitors and ten million page views. The website is game reviews meets social networking. It appears to have very loyal audience. Most of the content is user-created and the staff appears to be small. There are not a lot of ads, but those that run are from the game industry and should have high CPMs. Annual revenue is $1.4 million and margins are at least 50%.

    18. Apple Insider. $4.5 million. Another of the many websites about what goes on in the land of Steve Jobs and his many spectacularly successful inventions. The site has 1.2 million unique visitors and eight million page views. Advertising is a mix of high-end consumer products, which tend to pay low CPMs, and business electronics. Apple Insider appears to have a small staff. Revenue is about $1.3 million and the site should make $700,000 in operating profit.

    19. //film. (SlashFilm). $4 million. The audience for this film blogging site has dropped about 15% over the last three months, but unique visitors are still 1.3 million and eleven million page views. The site carries very little premium advertising, averaging CPMs at less than $10 per page. Revenue for //film is about $1.3 million a year. The company probably is keeping more than half of that as profit.

    20. SearchEnginLand. $4 million. This site, which covers the search engine industry, makes most of its money from conferences called the SMX Search Market Expos. The company that runs the site and conferences is Third Door Media. The main site has about 400,000 unique visitors and 3.5 million page views. That means the internet part of the company has revenue of just over $600,000. Revenue from the conferences is probably $2 million. The parent firm has a large staff.

    21. Smashing Magazine. $3.5 million. The site is the online destination for graphics design and has 900,000 unique visitors a month and 6 million page views. The site has a huge Twitter following of over 80,000. The company has a very small staff and some outside contributors. Each page has a large number of premium online ads. Revenue of $1.9 million and 30% operating margin.

    22. Talking Points Memo Sites. $3.5 million. This collection of sites includes political coverage site Talking Points Memo, TPMMuckracker, and TPM TV. The sites have 1 million monthly unique and 8 million page views. The company has a small staff and gets some news from wire services. TPM operates in the crowded and competitive space that includes The Huffington Post and Politico. The sites have very little high-CPM ads. Revenue is just under $1 million a year and the business does no better than breakeven.

    23. VentureBeat. $3 million. This is the class of the online venture capital news and analysis websites. The site has 800,000 unique visitors and seven million page views. There are a number of premium advertisers on VentureBeat and most pages carry multiple ads. Revenue for the company is $1.25 million. Venture Beat’s staff is large enough that it probably does not make money.

    24. The Superficial. $3 million. The Superficial is the flagship of a small number of sites run by Anticlown Media. The site is a modest version of Perez Hilton, and competes in a sector that includes websites like TMZ and the online operations of People and US magazines. The Superficial has one million monthly unique visitors and Compete shows a slight drop in audience recently. The site has 10 million page views and very little high CPM advertising. Revenue is about $1.5 million.

    25. 24/7 Wall St. Network. $???. Family of sites which includes 24/7 Wall St., Volume Spike Investor, BioHealth Investor, and Apple Financial News.

    Douglas A. McIntyre

    Posted at 09:27 AM in Current Affairs | Permalink | Comments (0) | TrackBack (0)

    Unwinding the Global Stimulus Packages

    Global Confidence Dips as Policy Makers Begin Exit Strategies

    Share Business ExchangeTwitterFacebook| Email | Print | A A A

    By Shamim Adam and Shobhana Chandra

    Nov. 11 (Bloomberg) -- Confidence in the world economy dipped in November as central banks’ actions to withdraw some stimulus measures sparked concern about the strength of the recovery, a Bloomberg survey of users on six continents showed.

    The Bloomberg Professional Global Confidence Index fell to 60.3 from 61.7 in October, the highest level in the series that began two years ago. The index exceeded 50 for a fourth month, which means there were more optimists than pessimists.

    The survey follows steps by central banks including the Federal Reserve to start unwinding emergency measures, seeking to avoid market distortions that may spur bubbles in assets from stocks and commodities to real estate. The shift comes at a time when unemployment is still rising in the U.S. and Europe, threatening a nascent recovery as consumers limit spending.

    “Confidence hinges almost entirely on the level of stability produced by extraordinary monetary support,” said Lena Komileva, an economist at Tullett Prebon Plc in London who participated in the survey. “As the effect of fiscal stimulus peaks, the future path of growth figures will become more volatile and that will affect confidence.”

    The survey of more than 1,500 Bloomberg users was conducted between Nov. 2 and Nov. 6. Since the previous survey, the U.S. jobless rate surpassed 10 percent for the first time since 1983, threatening to hurt household spending in the world’s largest economy. American gross domestic product rose at an annual 3.5 percent in the third quarter, signaling the start of a recovery from the deepest recession since the 1930s.

    Liquidity Injections

    Policy makers’ record injections of liquidity have stirred some concern that inflation will climb. European Central Bank President Jean-Claude Trichet said this month that the bank will withdraw some liquidity operations, while the Bank of England slowed the pace of bond purchases.

    Australia and Norway have started increasing borrowing costs, and the Fed this month indicated the circumstances in which it would be prepared to raise rates. The Group of 20 nations last week outlined a timetable to rebalance the global economy, mapping exit strategies from the stimulus.

    A measure of U.S. participants’ confidence in the world’s largest economy fell to 46.9, the lowest reading since July, from 48.8, the survey showed.

    “The unemployment rate is going to continue to rise and it’ll take a big chunk out of consumer spending,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York and a regular survey participant. “People are concerned growth in the U.S. is likely to be a two-quarter phenomenon as the fiscal stimulus will burn itself out.”

    Europe’s Gauge

    The confidence gauge for western Europe rose to 47.7 from 44 last month. Germany’s index rose to 62.5 from 50 as the government, which is spending 85 billion euros ($127 billion) to stimulate growth, last month raised its outlook for the economy, forecasting an expansion of about 1.2 percent in 2010 after a 5 percent contraction this year.

    Bloomberg users in Spain remained the most pessimistic in Europe as that nation stayed mired in recession, with unemployment soaring toward 20 percent and the economy struggling to recover from a construction-industry collapse. The Spain confidence index was 17.7 this month from 10 in October.

    “We’ve turned the corner but the global economy isn’t really soaring,” said David Semmens, an economist at Standard Chartered Bank in New York, and a regular survey participant. “Businesses and consumers are still quite cautious. You’re not seeing the rebound you saw in earlier recoveries after a recession.”

    Latin America

    Confidence dropped in the South American region this month, with its index falling to 66.5 from 72.9 in October. In Brazil, the region’s biggest economy, the confidence index fell to 86 from 88.3 last month.

    Sentiment fell the most in Japan, where bond yields are rising on concern government pledges to support households will exacerbate what is already the largest debt burden in the industrialized world. The gauge declined to 29.9 from 38.8, the biggest drop among country indices in the survey. Asia’s index dipped to 75.6 from 76.2.

    Fewer respondents expect the U.S. dollar to weaken further in the next six months against the world’s most actively traded currencies. The trade-weighted Dollar Index has fallen 7.7 percent this year. The dollar confidence index rose to 42.4 from 31.2 in October.

    Biggest Decline

    Users in Japan are less optimistic about the yen’s appreciation against the dollar, with the index falling for a second month to 53 from 56.9. Respondents in western Europe were divided on the direction of the euro against its U.S. counterpart.

    Bloomberg users were mixed on the outlook for their equity markets in the next six months. Respondents in the U.S., Japan and the U.K. expect shares to decline, while those in Mexico, Germany and Italy predict their markets will extend their advances.

    Survey participants in the U.S., Europe and Latin America also remained confident short-term interest rates will rise in the next six months, the survey showed.

    To contact the reporters on this story: Shamim Adam in Singapore atsadam2@bloomberg.net; Shobhana Chandra in Washingtonschandra1@bloomberg.net

    Last Updated: November 11, 2009 07:00 EST 


    http://www.bloomberg.com/apps/news?pid=20601087&sid=a8BXE1cFSiIw&pos=3

    Posted at 09:20 AM in Current Affairs | Permalink | Comments (0) | TrackBack (0)

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