Chase upping small biz lending - South Florida Business Journal:

Chase, the U.S. consumer and commercial banking arm of JPMorgan Chase & Co. (NYSE: JPM), will boost its lending to small businesses by up to $4 billion in 2010, it said Monday.

The move will increase expected new lending to a total of about $10 billion. It also will provide businesses with increased access to working capital, term loans for expansion, commercial mortgages, lines of credit, and business credit cards, Chase said.

While the $4 billion in additional credit will be available to qualified businesses with annual sales of less than $20 million, the majority of new loans will be targeted to companies with sales of less than $10 million.

Chase said it has $29 billion in outstanding balances in loans, lines and credit card balances to businesses with annual sales of less than $20 million.

Chase also will hire 325 additional small business bankers.

“We will provide more credit and more one-on-one advice to small businesses at this crucial time because they are so important to the U.S. economy,” said Charlie Scharf, head of Retail Financial Services at Chase, in a statement. “We urge small businesses owners to use the additional capital to expand and create jobs, and spur economic growth.

Apartments’ profits hit by competition - South Florida Business Journal:

Spiking unemployment, falling demand and growing competition from condo investors-turned-landlords is draining tenants and profits out of South Florida rental apartment complexes.

In September, occupancy levels at apartments in Palm Beach and Broward counties bounced along at lows not seen in a decade. Rents there and in Miami-Dade also continued into another year of decline, according to data from Carrollton, Texas-based apartment research firm MPF Research.

Broward’s occupancy rate of 92.4 is just 0.1 percentage points above a mid-1998 low. Year-over-year rents fell 4.1 percent to an average monthly rate of $1,103.

Palm Beach County’s 91.9 percent occupancy was 0.7 percentage points above a mid-2003 low. Average rents fell 4.6 percent to $1,039.

At 94 percent, Miami-Dade occupancy was the strongest in the region, but average rents fell 2 percent to $1,004 a month. Miami-Dade’s occupancy is 4.7 percentage points above the county’s all-time low of 89.3 percent in early 1998.

“The biggest thing you see this year is rent cuts,” said Greg Willett, VP of MPF Research. “Operators are essentially buying occupancy.”

Free rent now defines dealmaking for many complexes.

In metropolitan Miami, 40 percent of the apartments dangle concessions, MPF data shows. In Broward, the concession rate jumps to 48 percent, and in Palm Beach County, nearly 60 percent of all units are discounted.

At the new Satori in downtown Fort Lauderdale, renters can get up to two months of free rent.

“The concessions drive production,” said Joel Altman, chairman of the Boca Raton-based Altman Cos., developer of the upscale 279-unit Satori. Altman’s strategy: create a niche with green features such as solar roof film to generate power for common areas; super-efficient washers, dryers and HVAC; and luxury finishes inside units.

Rents are among the highest in the area, starting at $1,715 for a one-bedroom unit and going up to $2,700 for a three-bedroom unit.

In downtown Fort Lauderdale, where 781 new units are coming online, competition is particularly intense. Satori competes against two other upscale complexes, 4 Forty Flagler Village and Alexan Solmar, for renters

“The lease velocity is good, the pricing is poor,” said McCallum Parrott, senior managing director for Trammell Crow Residential, developer of the 284-unit Alexan Solmar. In addition to two months’ free rent, base rents were lowered before leasing started to reflect market conditions, he said.

Similar to for-sale housing, apartment leasing and rent growth are tied most closely to employment strength, so rental income isn’t likely to bounce back quickly, experts say.

“The trend is still declining,” said Paula Poskon, a senior research analyst with Robert W. Baird & Co. “I think 2010 will be the trough of the NOI [net operating income] decline.”

Weakening fundamentals and depressed values have trampled South Florida’s once-robust apartment sales market, even though financing is easier to get, due to Fannie Mae and Freddie Mac underwriting.

Apartment sales have plummeted more than 80 percent since 2007 when nearly $2 billion in transactions had occurred by Oct. 31, according to Real Capital Analytics.

“What we are seeing is sellers with a choice choosing not to sell into this market,” said Brad Capas, a senior director at Cushman & Wakefield. “Buyers are looking for deals.”

But, conventional apartments could be setting up for a big rebound in rents by 2012, experts say. That’s because after the current wave of units hit this year and next, few projects are in the pipeline.

Tight vacancy and strong rental growth is in store a few years down the road, said Jay Jacobson, a partner with Wood Partners, which is finishing up a 381-unit complex in Miami.

Wood owns sites in Delray Beach and north Miami-Dade County, but has no immediate plans to develop due to financing challenges.

Radio Heard Here - FM Radio Receivers in Mobile Phones

The Facts AboutFM Radio In Mobile Phones

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FM Radio in a Mobile Phone

FM Radio Receivers in Mobile Phones

There is a strong belief among many in the radio industry that FM radio receivers should be incorporated into virtually all mobile devices, including mobile phones. Such a move helps to perpetuate the ubiquitous nature of radio and to provide a communication lifeline during times of crisis or natural disaster. Some may wonder why FM radio receivers are necessary when many mobile devices already have access to radio through internet connections. When radio is needed most it's least likely to be available through an internet connection on a mobile device and only available when a mobile device has an FM receiver built-in.

Radio's Importance in Times of Crisis

In January 2009, parts of the Midwestern United States were struck by a voracious winter storm. Combinations of snow and ice virtually paralyzed many areas. Owensboro, Kentucky was one area struck exceptionally hard and declared a federal disaster area. Residents were without power, land line communication, mobile phone communication and cable television. The only functioning source of information was "over the air" broadcasting. A nearby radio station run by the Cromwell Group was broadcasting. However, residents could only tap into the radio station with a radio receiving device that did not require an external power source (such as a battery-operated or crank radio, or a mobile phone with a built-in FM receiver).

Mobile phones were incapacitated because the mobile phone infrastructure was not working. That means internet access over the mobile phone network was also incapacitated. Access to information using a mobile phone was only possible if the mobile phone contained an FM receiver.

Capacity and Bandwidth: Over the Air Radio Versus Internet-Based Radio

What about cases in which the mobile networks are still functioning? Mobile networks are built assuming that only a percentage of users will use the network at the same time. On occasions in which usage begins to exceed capacity, the networks begin to exhibit stress (we've all experienced the "all circuits are busy" message from time to time). In times of crisis when all other means of communication have been disabled, usage of the network to talk and to access information using a mobile internet connection has been shown to skyrocket. Will networks be able to handle the burden and still be able to support access to critical information from radio broadcasts over mobile internet connections? With FM receivers in mobile devices one would not need to worry about this issue. Essential information would be available from nearby radio stations via "over the air" signals that are unaffected by network burden.

Bud Walters, owner of Cromwell Group, summed it up succinctly after January's Midwestern storm by saying, "If there ever was a case for FM radio receivers in cell phones, this is it. Everyone has a cell phone, now useless. The cell phone would not be useless if it had an FM radio in it."

The Current State of FM Radio Receivers in Mobile Devices

Why not add an inexpensive analog FM radio receiver into all mobile devices? It provides essential access to critical information over the air during times of crisis using a device that consumers will already be carrying.

Broadcom recently announced an integrated circuit device that combines WiFi, Bluetooth and FM on a single "chip," making it easier for manufacturers to integrate essential functionality in one chip.

Verizon Wireless, AT&T and T-Mobile are including FM radio-capable handsets in their offering and the radio industry is working on getting Apple on board as well. In fact, the Apple iPhone 3GS includes the Broadcom chip described above which has FM receiver capability. It is not a current function of the 3GS but can be easily included in a future upgrade since the FM-capable device is already present in the current design.

Nokia has sold more than 700 million devices with built-in FM radio receivers worldwide, demonstrating consumer recognition of the value.

What Can You Do?

Tell us your thoughts on this initiative by visiting www.radioheardhere.com/fmchip. Spread the word among your radio industry colleagues and ask them to do the same. Spread the word to listeners over the air and on your radio station website and ask them to voice their support for FM radio on cell phones. Together, we can mobilize this initiative throughout the industry and the listening population to demonstrate the fundamental necessity for FM radio receivers in mobile devices.

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Report: Foreclosure activity up in October - South Florida Business Journal:

Lenders filed an average of 272 foreclosure actions in South Florida each day in October, an 8 percent increase from the same time last year, according to Condo Vultures report.

The October activity is also an 86 percent increase from 2007, which could mean more trouble for the residential real estate market.

But, the overall pace of foreclosures is slowing for the year, said Peter Zalewski, managing principal of Bal Harbour-based real estate consultancy Condo Vultures, which tracks sales activity in the tri-county area.

Condo Vultures projects that 2009 will log 98,000 actions this year based on the pace of foreclosure filings to date. The high volume of activity earlier in the year put the tri-county area on pace for 102,000 foreclosure filings.

“Foreclosure filings are up from last year, but beginning to slow in volume compared to a quarter or two ago," Zalewski said.

Looking at the first 10 months of the year, lenders filed foreclosures against 75,000 properties in 2008 and 33,000 in 2007. Foreclosures through the end of October this year represent a 28 percent increase compared to the same period last year.

Broward is leading the pack, with a 21 percent year-over-year jump – with 4,002 foreclosure actions filed in October. Miami-Dade saw its foreclosure activity grow by 10 percent, and Palm Beach actually saw its numbers drop by 9 percent.

The rise in foreclosure activity does not coincide with a rise in inventory, as would be expected. In fact, South Florida’s residential resale inventory dropped 1.1 percent on a week-over-week basis on Nov. 2, to 69,342 single-family houses, townhouses, and condominium units, according to the report produced using Florida Association of Realtors data.

Free citywide Wi-Fi now available in Miami Beach | MuniWireless

After a long period of planning and deployment, Miami Beach (Florida) has launched its citywide free Wi-Fi service. The network provides free Wi-Fi access with 95% outdoor coverage and 70% indoor coverage up through the second floor of buildings. The city is also using the network for public safety and other municipal departments, allowing employees to use laptops and handheld devices to perform tasks that include building inspections, public works and code compliance.

Miami Beach is one of the few cities that offer free citywide Wi-Fi service. Others have abandoned their projects after private companies such as EarthLink left the business. Municipalities, such as St. Cloud in Florida, are struggling to maintain free Wi-Fi access in the face of budget cuts. St. Cloud’s city council had initially voted to shut down the public access side of the network, but fierce opposition from residents, many of whom use the network because they cannot afford to pay for Internet access, has forced the city to keep the network open.

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Report on the WiMAX Band (2.5 GHz) after the FCC auction is now available. Click here to find out more and to purchase the report.

News & Views / ABI Research: 385 Million Ultra Mobile Devices to Ship in 2014

NEW YORK – The netbook, or ultralight computer designed mainly for Web access, exploded into the public consciousness in the past year. Suddenly netbooks seem to be everywhere, and they have emerged as an important driver for the growth of Internet traffic. ABI Research expects netbooks and related devices to become even more ubiquitous over the next five years. The market research firm forecasts the Ultra Mobile Device (UMD) market – which includes  UMPCs (Ultra Mobile PCs), netbooks, MIDs (Mobile Internet Devices) and mobile consumer electronics devices combined – to achieve a 385 million-unit size in 2014. The diversity of form factors and device types we see today will likely continue as vendors look to meet each audience’s unique preferences.

“Consumers and business buyers are only recently accustomed to the netbook feature set,” says senior analyst Jeff Orr. “Regardless of vendor, the majority of today’s netbooks ship with Intel processors and Windows XP into developed markets.” As uptake continues, developing markets will become the larger opportunity. The premium netbook category will also be established, offering larger screens and greater choices in connectivity solutions. With little distinction today in feature sets and a relatively small price band, brands are differentiating themselves on aesthetics and build quality.

Pocketable MIDs remain a far more interesting product segment to watch, says Orr, as the market is still emerging. While the most common product design remains the tablet form, competing form factors such as models with slider keyboards, clamshells and touch-screen-only interfaces are gaining in popularity. He adds, “However, there is a danger that the MID market will disappear before it gets the chance to mature, as smartphones increase in popularity and mimic most, if not all, tasks performed by MIDs.” The line distinguishing MIDs from smartphones may blur as MIDs add voice: Nokia has equipped its latest “Internet Tablet,” the model N900, with cellular voice capabilities, for example.

Forbes: S. Fla. at bottom of safest city list - South Florida Business Journal:

The Miami-Fort Lauderdale metro area ranked dead last on Forbes list of the safest largest cities in the U.S.

The rankings are based on a city’s levels of violent crime, workplace fatalities rates, traffic death rates and natural disaster risk.

America's southernmost metropolis ranked among the six worst in all four categories earning it the lowest overall safety ranking the list, according to Forbes.

The S. Fla. area ranked No. 35 for violent crime, No. 34 in workplace fatalities, No. 35 in traffic deaths and No. 40 for natural disaster risk.

Minneapolis-St. Paul ranked No. 1 scoring high in all categories. Portland, Ore., ranked third, and Boston and Seattle tied for fourth in Forbes’ rankings.

Click here for the full report.

Facebook wins $711M in spam suit - South Florida Business Journal:

Facebook Inc. said Thursday that it won a $711 million damage award from Internet marketer Sanford Wallace for spamming its popular social networking site.

Palo Alto-based Facebook alleged that Wallace accessed its users' accounts without permission and sent them phony posts and messages after accessing their accounts.

The company announced the damages award in a post on its blog Thursday night, saying the San Jose district court judge in the case also referred Wallace to the U.S. Attorney's office for prosecution for criminal contempt of court.

Wallace did not oppose the damages motion nor appear at the Sept. 18 hearing, according to a court filing.

Facebook's General Counsel Sam O'Rourke wrote in the blog posting, "While we don't expect to receive the vast majority of the award, we hope that this will act as a continued deterrent against these criminals."

The Wallace case marks the second large anti-spam award Facebook has won in the past year. It was awarded $873 million a year ago from Adam Guerbuez and his business, Atlantis Blue Capital, who bombarded users with sexually explicit spam messages.

Amtrak plans Wi-Fi, more security - South Florida Business Journal:

Amtrak has released a five-year strategic plan that includes improved customer service, new trains and aggressive passenger growth and revenue goals.

It also is working with individual states as they apply for federal grants to develop high-speed rail corridors.

Amtrak has set a goal to increase ridership by 15 percent in the next five years, from 27.2 million in fiscal 2009 to 31.4 million by the end of 2014. It also hopes to grow revenue by 20 percent, topping $2 billion by 2014.

To do that, it will have to attract more passengers by improving customer service.

Amtrak will move forward with plans to add Wi-Fi service, initially on its Acela high-speed rail trains and eventually on other service. It will upgrade its reservations systems, including e-ticket options that will let passengers retrieve tickets on mobile devices. And, it says it will improve food and drink choices on its trains.

It also will replace aging locomotives and coaches, modernize car interiors and make stations, platforms and trains more handicapped accessible.

Amtrak also says passengers can expect to see more security, “with greater emphasis on random and unpredictable patrols, baggage screenings and other activities” in stations and on trains. It will also expand its K-9 explosives detection teams, it says.

Greenblatt's Strategy Picks Four Winners - Yahoo! Finance

Is it possible to outperform the market using a strategy that uses only two variables? On Dec. 2, 2005, I started tracking a portfolio I based on the writings of Joel Greenblatt, a strategy he called his "Magic Formula." He described this formula -- which is "magical" in that it includes only two variables -- in his bestseller The Little Book That Beats the Market.

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No sophisticated investor would take a chance on a formula based on magic, and there is not much reassuring about a book that calls itself "The Little Book That Beats the Market," but I have looked at Greenblatt's strategy in detail and decided to include it among the other legendary strategies I offer on my site for one reason -- it works.

It's not magic, despite its name, and there is nothing little or insignificant about it. As a way to invest in the stock market, Greenblatt's strategy sits comfortably among those of the giants of the investing world. Since I began following it, it is up 46.6%, compared to a loss of 14.5% for the S&P 500 over the same period. Year to date, the Greenblatt strategy is up a sterling 64.0%, as compared with the S&P 500's gain of 19.7%. You can see more detailed performance for it on my model portfolio page.

Why does the strategy work? Because it looks it focuses on two variables that get to the core of successful investing -- profitability and valuation.

One of the two variables used is return on capital, which measures how profitably a company is using its assets. This is similar to return on assets, but ROC uses earnings before interest and taxes instead of reported earnings (which is typically used with return on assets) because debt payments and taxes can hide how well a firm's actual operating business is doing.

Why look at ROC? Because it is a measure of a company's competitive advantages. Companies with high ROC tend to be able to charge more than no-name competitors -- take for example Toyota vs. some of the Chinese carmakers reportedly interested in entering the U.S. market. Or perhaps the company has a strong competitive position -- as is the case with Google , which can offer capabilities to customers its smaller competitors cannot.

The second variable addresses earnings yield, but again, Greenblatt has some variations on a common theme. Once more he uses EBIT rather than earnings, and divides this by the value of the company, which includes the price of the company's shares along with the amount of debt used to generate earnings. Another way to look at this is that this variable measures the return one could expect if one bought the whole company, including its debt.

With these two variables (which he weights equally), he ranks the 3,500 largest stocks -- the higher the ranking, the better.

So which stocks are now highly ranked by this strategy? One is Pre-Paid Legal Services , which provides a form of insurance that reimburses members for legal expenses, much as medical insurance reimburses members for medical expenses. Its earnings yield is 21.19%, giving it a rank of 16 out of all stocks, and its return on total capital comes to 104.42%, earning a ranking of 32. However, when combined, Pre-Paid Legal Services is No. 4 among the stocks in our database. That's impressive.

Amedisys is another Greenblatt favorite. It provides home health care services in the Southern and Southeastern regions of the country. This company's earnings yield is 13.82%, which garners a ranking of 98, while return on total capital is 330.65%, a return that ranks fifth among the stocks in our database. Combined, Amedisys comes in at No. 8, a very strong result.

Another company that meets these tests is LHC Group , which provides both home- and facility-based health care services primarily to Medicare beneficiaries in the Southern U.S. Earnings yield for this company is 13.89%, good for a 95 ranking, while return on total capital is 122.23%, 19th among all stocks. Combined, its ranking is No. 9 out of our total database of stocks.

The strategy also likes venerable book publisher McGraw-Hill Companies , which is in the process of selling its Business Week magazine to Bloomberg. Its earnings yield is 12.42%, ranking it 149, while its return on total capital is 149.90%, earning a 13 ranking. In total, McGraw-Hill is ranked 13th among all the stocks in our database.

Greenblatt goes out of his way in his book to point out that, like all strategies, his will not work every month or every year. And that fact is what allows it to continue to work in the long term -- its strong track record and common-sense approach make this strategy one worth paying close attention to.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Pre-Paid Legal Services to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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