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Blog Entries

Below you find the latest 9 blog entries posted on the site.

Sunday, February 28, 2010 at 4:17:00 PM

Best and Worst Jobs 2010

The Wall Street Journal has published a list of 200 best and worst jobs in 2009 based on five criteria -- environment, income, employment outlook, physical demands and stress.

Some of the highest paying technology jobs and their top salaries are:

Software Engineer                               $129,000

Computer Programmer                  $111,000

Computer Systems Analyst         $118,000

Technical Writer                                  $97,000

Web Developer                                       $91,000



Read full report here

http://online.wsj.com/public/resources/documents/st_BESTJOBS2010_20100105.html



Sunday, February 28, 2010 at 9:51:00 AM

US Cities Poised for Growth 2010 to 2012

1. Austin

Austin is combination of college town, a tech town, and a business town. It has variety of educational  and career opportunities, and it is famous for its internationally known festivals like the yearly South by Southwest music, film, and technology media festival.

 

While it did not have significant GDP growth, the city leads a number of Texas cities that are all on the rise, including Houston, San Antonio, and Dallas .

 

Major employers: Dell, AMD, and the University of Texas .

 

Relocation Population: 3.77% increase to almost 1.7 million
Unemployment Index: 7.2%
State Home Foreclosures: Under 1.25%
Hot Spot Segments: Computer services; Education; Government and public administration; Hotels and lodging; Real estate; Transportation
Job Growth: Expected to increase by 17.5% over the next five years, according to Economy.com
Percentage of population under 50: 77.7%

 

2. San Jose

 

San Jose is known for its high-tech companies in Silicon Valley . And since the industry regained a semblance of normalcy late this year after 18 months of layoffs and decreased financial expectations, expect the tech to be on the way up again with a couple of extra chips to play with: A finally viable green tech industry (Fisker, Tesla) and better performing semiconductor manufacturers (Intel, AMD).

 

San Jose’s South Bay area also has a strong medical supply manufacturing focus. And while the wind- and solar-power industries are not producing great many jobs right now, the large number of start-up firms here is bound to produce a few permanent winners when the stimulus package funds come through. California’s clean-energy businesses have brought in about $6.5 billion in capital investment since 2006 and a big chunk of that went to Silicon Valley and the general San Jose area.

 

San Jose’s proximity to the cultural scene in San Francisco, top universities within distance (Stanford, UC Berkeley, and San Jose State ), and rising diversity make it top place for melting pot-seekers.

 

Percentage of population under 50: 73.3%
Unemployment Index: 11.9%
Home Foreclosures: 1 in every 57,151 housing units received a foreclosure filing in September 2009
Hot Spot Segments: High-tech industries, Medical professionals, Education; Hotels and lodging; Manufacturing; Transportation
Median Family Income: $103,164
Median home price (2008): $449,000

 

3. Atlanta

Atlanta has a varied workforce with a robust number of companies, from manufacturing and food (Coca-Cola), to marketing and media (CNN), to finance and analysis groups. That’s in addition to the city’s vibrant social scene that includes music, sports, and other cultural events that attract top young talent from the many nearby universities.

 

Although a recent Federal Reserve report noted Atlanta showed a “weaker overall economic activity” than most large cities, Atlanta is poised to do well over the next few years.

 

Industrial, medical, and tech start-up industries are being set up by local civic and business leaders to lead the growth. Kia Motors, the Cancer Treatment Centers , and First Data Corp recently made deals to add about 2,000 jobs over the next couple of years, and the research universities are expected to support new medical biotech and research companies. There’s also substantial talk of a micro-business climate of agricultural biotech, which could benefit from future subsidies from the government’s green-jobs programs.

 

Want another reason why this is a good place ready for growth (besides jobs, education, and business?) According to U.S. News, the average one-bedroom apartment costs less here than in most of the other major cities in . This makes it especially welcome because of the city’s average-to-high salary scale — people can actually afford to live here, and well.

 

Relocation Population: 2.19%
Unemployment Index: 10.4% (stays virtually the same last 2 months)
Income Growth: 2003 to 2008 (5 years)
Home Foreclosures: 1 in every 2,032 – 6th highest in the nation (by September ’09)
Hot Spot Segments: Computer services; Education; Government and public administration; Hotels and lodging; Printing and publishing; Travel
Job Growth: 2.19%
Median home price: $164,600
Percentage of population under 50: 71.5%

 

 

 

4. Houston

 

Houston ’s economy kept a semblance of stability throughout the recession and median home prices never really bottomed out here. This helps out the local business infrastructure as it builds out already successful areas like aeronautics, shipping, medical services, and finance. The University of Texas Medical Center alone is an employer of more than 75,000 workers in the city alone, and it’s becoming one of the most highly-sought after places to live and do research in the medical profession. Forbes recently noted there were 5,000 medical jobs available in the area last month and there will soon be 30,000 more with building expansion.

 

The financial center is also strong and growing. Just this year, companies downtown added about 2,000 jobs and the city’s mortgage lines weren’t as difficult to overcome as in other large cities. In terms of overall job growth, Houston beat recession trends by actually posting the fastest job growth of any metro area in the This included new jobs in energy (1,600 of them) and IT.

 

Relocation Population: 2.33%
Income Growth 2003 to 2008 (5 years): 37.3 percent
Unemployment Index: 8.5%
Home Foreclosures: .39% last quarter, down 8.1 percent at this time from last year.
Hot Spot Segments: Advertising; Communications; Computer services; Construction; Education; Government and public administration; Legal services; Travel; Other
Median home price: $161,339
Percentage of population under 50: 74.0%

 

5. New Orleans

 

Hurricane Katrina devastated New Orleans in 2005 and it took a couple of years to get its bearings before starting to come back. Now all the necessary growth indicators are there: More construction in the rising green jobs, industry improved medical services, and a better energy industry.

 

Even the people are coming back. 22% left within a year of the hurricane but the area has grown more than any city in the since 2007.

 

As expected, some of the biggest areas of success and job gain are in the home building industry. Medical and scientific centers are also due for growth and will benefit from government spending, as will green energy businesses, bringing pre-Katrina employment numbers back within two years, according to analysts.

 

Expected growth from film industry and natural gas businesses are also bringing jobs and an influx of much-needed young people to the city. Recently, the U.S. Department of Energy gave local green energy company Entergy a $5 million grant for a pilot project to help low-income people better manage electric bills through “smart meters.” The city also pushed through many incentives for new businesses, like $1,500 wage credits.

 

The city’s per capita income has suffered wild swings in the last few years, but a bizjournals study released this month indicated New Orleans currently is on pace for the best record of long-term income growth. This probably has something to do with the fact that people that were displaced by the hurricane were poor and were replaced by a new, younger crowd.

 

New Orleans is famous for the wonderful food, music, and old-school southern culture.

 

 

Relocation Population: 8.2 growth
Unemployment Index: 6.8% (down 0.5% from last month)
Home Foreclosures: 1 in every 7,551
housing units received a foreclosure filing in September 2009
Hot Spot Segments: natural resources such as coal, oil and natural gas.
Job Growth: - 2% (2008-2009)
Income growth: 2003 to 2008 (5 years): 50.9 percent

 

6. Oklahoma City

 

Even in the middle of the recession, there was modest job growth in Oklahoma City and as the economy rebounds there will be many more.

 

Business, health care, energy, government jobs, and a growing number of high-tech companies are all leading the growth. Oil and gas sectors push construction and mining jobs and even sinking overall profits in that sector won’t derail overall growth. Defense spending will probably go down with the current administration, but just like with Austin and energy, it should continue to thrive at a smaller pace.

 

And high-tech firms like Orthocare (tech prosthetic devices, robotics), True Tech, and @Link Wi-Fi seem especially ready to take up their end of the growth. Expect more start-ups to blossom here too, including in bio-tech: Forbes Small Business Magazine recently announced that Oklahoma City was the best place in the country for entrepreneurs to try to start a new business.

 

One of the major reasons it wasn’t dragged down by the economy is because its banks avoided risky loans like the plague. Why? An oil boom 25 years ago led to bad home deals and a local recession, giving locals a lesson in over-investment. So most people here didn’t get overly excited when the energy and military markets brought in a lot of money earlier this decade. Instead, Oklahoma natives used that money to finance a diversified business climate – the state’s revenue from energy and military still only comes to about 12% of GDP. As a result, financial and housing markets are relatively healthy now and into the next few years.

 

People also just want to live here. The 5.5 percent state income tax rate and a new NBA team (with one of the best players in the league) will do that. The economy is buoyed by Tinker Air Force Base (the state’s largest employer) and Oklahoma State University .

 

Relocation Population: 6.6%
Unemployment Index: 6.5% (6th lowest in the U.S. as of September 2009, though it went up 0.5% in October 2009)
Home Foreclosures: 1 in every 3,373
housing units received a foreclosure filing in September 2009 (second lowest in the country)
Hot Spot Segments: Agriculture, forestry, and fishing; Computer services; Construction; Education; Health and medical services; Legal services; Real estate; Travel; Other
Job Growth: 5.7% (mostly in small businesses)
Percentage of population under 50: 70.3%

 

7. Denver

 

While Denver didn’t escape the recession completely (it’s currently experiencing a business job freeze and continued foreclosures), there are indicators it will do well shortly. The Metro Denver Economic Development Corporation noted that the city has maintained top rankings in the areas of residential real estate, labor supply, and business tax favorability climate throughout the recession.

 

 

As with the other cities on this list, a minor tech rumble simmers within the city’s business climate. Several biotech medical device-manufacturing companies call Denver home, including CaridianBCT, which just received a $5.6 million grant for the Department of Defense to develop blood transfusion safety technology. Another, publishing software-maker Quark, is expected to bring in hundreds of jobs.

 

 

The main tech talent that will be needed here are website and database developers and network engineers. Other top areas in growth mode are in social media, cable/satellite TV/telecommunications, energy, health care, cloud computing, and government. Education, government, and health sectors saw minor job growths in the last year and are expected to be among the first to benefit from an improved economy. The main areas that struggled during the recession (retail, construction, natural resources) accounted for most of the layoffs, so they shouldn’t affect the city’s economic growth as much as Denver diversifies its economy.

 

 

City apartment vacancy rates fell this past quarter, according to the Denver Business Times, indicating lowering levels of unemployment.

 

 

Relocation Population: 2.17% (In 2008, Denver was the 10th-fastest growing metro area in the )
Unemployment Index: 6.8% (down 0.3 since last month)
Home Foreclosures: 1 in every 1,783 housing units received a foreclosure filing in September 2009
Hot Spot Segments: aerospace, bioscience, and energy. Computer services; Construction; Education; Government and public administration; Health and medical services; Hotels and lodging; Legal services; Real estate; Travel; Other
Percentage of population under 50: ~ 72.4%
Intangibles: Sports (Boating/Sailing, Skiing/Snowshoeing, Sporting events, Swimming, Trails and wildlife, Travel), bars, culture, nation’s largest city park system. Denver brews more beer than any other city.

 

 

8. Raleigh

 

Spurred by technology companies, a sound business infrastructure and job market, and a better-than-average housing outlook, Raleigh is already on the way up economically. The next two years should place the city in an even better position.

 

A lot of the excitement is centered on the area’s Research Triangle Park , or what some locals call the “ Silicon Valley of the South.” This area on the border of Raleigh and nearby Durham includes more than 180 known companies and many start-up incubators. The main industries on the rise are pharmaceuticals (GlaxoSmithKline), biotech research, IT (IBM, RedHat, SageWorks), general health care (at NC State, UNC, and Duke Universities ), and telecommunications.

 

Raleigh has heavily invested in new transportation initiatives, which will place it near the front of the line when government subsidies come through with green jobs. Business has suffered a bit because of the economy (like everywhere else), but it’s not in too much trouble because of the diversified job force. The presence of so many recession-proof positions in the government and education sectors helps keep the balance.

 

A recent big indicator of job growth was Deutsche Bank AG’s expansion into the Raleigh suburbs, bringing with it more than 300 jobs.

 

For all these reasons, Moody’s recently ranked the Raleigh-Cary area as the third-best place to start a business in the .

 

Culturally, Raleigh has pleasant weather and a growing population of educated achievers that slide in to jobs straight from the local universities. The city has been criticized for lack of diversity, but it’s improving there too as immigrant populations slowly come in.

 

Percentage of population under 50: 73.6%
Relocation Population: 6.14% new people
Unemployment Index: 8.6% (same as October)
Home Foreclosures: 1 in every 177,791 housing units received a foreclosure filing in September 2009
Hot Spot Segments: Computer services; Education; Government and public administration; Health and medical services; Hotels and lodging; Legal services; Manufacturing; Real estate; Other
Job Growth: 4.29%

 

9. Seattle

 

Seattle and the high-tech industry have been synonymous with success and growth ever since Bill Gates and Paul Allen started a little company called Microsoft about 30 years ago. While this city suffered some of the same recession drops as other tech hubs (and worse when counting the bad trends of the forest products industry and housing market), the city is already set up for continued growth.

 

 

Health care has always been a good stable part of the economic equation here, with almost 100,000 jobs and nearly $10 Billion generated for the local economy. As a result, the industry that melds both main growth trends, biotech, is huge now and will only get bigger.

 

 

Small businesses, financial institutions and retail stores have had a tough time of it during the recession and because of the bad credit markets, some are expecting that a full recovery won’t come to Seattle until late in 2010. But the growing investment in new companies at the end of this year (many in tech) will eventually benefit the whole area and lead an economic rise.

 

 

IHS Global Insight recently said that annual job growth in Washington state will “average 1.42 percent between 2009 and 2015,” which will be good enough for 16th best in the country. And Moody’s says the Seattle economy will “reach a new peak in the third quarter of 2009 and keep growing from there.” Both of those estimates are conservative and don’t take into account any new boost that might come from this innovation-rich area.

 

 

Current GDP: $168.3 billion. End of 2010: $179.8 billion (projected)
Unemployment: 9.0%
Average cap rate: 6.8% on purchases of big, mid-grade commercial properties. That’s below average, a good sign for renters.
Percentage of population under 50: 67.7%
Income Growth rate (2003-2008): 30.2%
Home Foreclosures: 1 in every 185,805
Hot Spot Segments: Communications; Computer services; Education; Entertainment and recreation; Government and public administration; Health and medical services; Legal services; Real estate
Intangibles: It’s Seattle so this means coffee, a cool music scene and the still-growing techy-geeky scene.

 

Saturday, February 27, 2010 at 12:23:00 PM

How to Write an Effective Resume

If writing a resume may seems intimidating to you, you're not alone. What makes resume writing difficult is identifying what to include, what to emphasize and what details to include. In this economy, Human Resource professionals and recruiters receive thousands of resumes for any given position; therefore, the question is whether they will spend about 10-30 seconds on yours. Organizing information incorrectly could cost you a shot at an interview, unfortunately it's a very common mistake made by job seekers. 

 

Below we have outlined some tips for composing your resume. You may be skeptical of paying someone to write your resume. However, price for our resume writing service is very reasonable ($40 - $200), considering the amount of time spent writing an effective resume. Resume-writers do this for a living, and study how to position a person's skills for a particular industry.  Therefore, for a few hundred dollars you will be given the edge to get a position that pays a few thousand more per year.  Therefore, it’s a cost of the job hunt process worth paying.  In closing, while the free resume writing tips below will assist you in the preparation of your resume, I would recommend using our resume writing service from the beginning, or using our free resume critique service after you have completed a final draft of your resume.

Let’s now look at resume writing tips....

Before putting your pen to paper (or fingers to the keys), begin by determining your objective (do this prior to writing the resume).  You should clearly state what sort of a job you want, and know what kinds of skills and experiences are needed to do well in that job. Even if you decide to change your job objective later, it is very important that you decide on a temporary objective for now. After your objective is determined, you can structure the content of your resume around that objective.  As noted above, you have a very small window of time to get the interest of a hiring manager, therefore being general and scattered will insure that your resume is filed in the trash can. Therefore, it is essential that you take the time before you start your resume to form a clear and targeted objective.

Now that you have your objective, you're on your way.  Now lets begin the resume writing process.  Keep in mind, the single and most important goal of a resume is to obtain an interview. It's a marketing tool to get you in the company and in front of your potential boss – that’s it. Once in, you will need to do the sales pitch, and close the deal. With that said, you do not want to go into detail about every accomplishment in your resume. Strive to be clear and concise, as the sole purpose is to have a potential employer contact you for an interview.  Bottom line – you should put yourself in the shoes of the resume reader - when looking at the job qualifications needed for the position; what would you be looking for in a candidate - Obviously, that is what you should include in your resume.

In the body of your resume, use bullet points with short sentences rather than lengthy paragraphs. As noted above, resumes are read quickly (usually 10-30 seconds). Therefore, having key phrases standing alone and bulleted will help the reader see the important information at a glance - while at the same time absorbing the most important information.  Again, don't worry about the specifics; you will go into the details during the interview.

Use action word -- words like prepared, managed, developed, monitored, and presented will cause your resume to stand out.

In addition to standing out to a reader - you are also insuring that if your resume is scanned, the computer will pick up on the words. You read correctly, some companies now scan in your resume, and have computers pick the resumes to be looked at. The computers are looking for one thing – they’re looking for keywords that have been picked by the hiring manager. These are action key words that relate to the position; therefore not including them could mean your resume is disregarded as a "non-match".

You should always use %'s, $'s and #'s.  Percentages, dollar totals, and numbers stand out in the body of a resume.  I’ve included an example below of a job duty described with them (correct), and without (incorrect).  As is obvious with the below examples, being specific does not mean being lengthy.

Example
Incorrect: Sold advertising to 15 companies
Correct: Closed 15 strategic accounts billing in excess of $20M annually

Highlight your strengths, and what is most relevant to the potential employer. Due to the fact that most resumes are typically reviewed in 10-30 seconds, put forth the effort and determine which bullets most strongly support your job search objective. Put the strong and most relevant points first where they are more apt to be read. Doing this will hook the reader, and the rest of your resume will reel them in.

Match the needs of the hiring company - Review job postings online and in the newspapers for positions that interest you. Each listing will almost always have a brief blurb about the company and the position available. Read the job description closely, and use the key words listed in these ads, and match them to the bullet points in your resume. Chances are that you have some of these as key points already, however if you have missed any, be sure to add them to your resume. It sounds obvious, but its worth mentioning that using a custom resume instead of a generic one will greatly increase your chances of an interview, as you will be a better match in the eyes of the reader – how can you not be? – you’ve tailored your resume to the position.

Above all in your resume and interview - you must be positive.  Therefore, avoid including negative and irrelevant points. If you feel your graduation date will subject you to age discrimination, leave it off your resume. If you do some duties in your current job that don't support your job search objective, do not include them. Focus on the duties that do support your objective, and leave off irrelevant personal information like your race, weight, and height.

Have you taken an advertising class?  Let us give you one tidbit from our studies that will improve the appearance of your resume.  White space is the open area of an ad, and white space is important to your resume.  Open up the newspaper, and take note of which ads first catch your eye. Are they the ads that are jammed full of text and pictures, or are they ads that have a large amount of unused space ("white space"). This is done to grab your attention, as you are always attracted to open areas. For this reason, don't worry if you are having a hard time filling the page with text; increase your line spacing to compensate – this will increase the white space – and really, that’s a good thing.

How long should your resume be?  What size font should I use? -  The font size should be no smaller than 10 point, and the length of your resume should be 1-2 pages. Yes, you read correctly; you can use more than one page.  But remember,

keep it concise.  It's ok to use 2 pages for your resume, however it’s not necessary.

Ask a friend, and get an outside opinion on your resume before sending it off.  You should always have a 3rd party or our resume critique service review your resume. You are so close to your situation, it can be difficult for you to note all your high points and clearly convey all your accomplishments. Having someone besides you review your resume will allow you to note how others will view your marketing materials - would your resume impress them? If not, why? Don't settle for - "it's good".  You must encourage the 3rd party to give you feedback and ask questions. These questions from the reader can help you to discover items you inadvertently left off your resume. Take their comments into consideration, and revise your resume to include these items. In addition to adding in missed items, their questions can also point to items on your resume that are confusing to the reader. This valuable input will allow you to clarify your resume based on this input.

OK, you’re ready to start applying for positions – When submitting your resume, you should apply for some jobs that appear to be above your qualifications, apply to positions that are a match, and apply to positions which may be beneath you. Why? Perhaps the position beneath will turn out to be more than it appeared once you interview for them. Or perhaps once you have your foot in the door you can learn of other opportunities. If nothing else, interviewing more and more will increase your interviewing skills. Like anything else, repetition will decrease your nervousness, and increase your skills at attacking the tough questions.

Still Stuck?  Try our resume service: ResumeWriting@successfulgeek.com

Wednesday, February 17, 2010 at 9:42:00 PM

Winter Olympics -- Vonn is the first American woman to win downhill gold

Lindsey Vonn of the United States lived up to her billing as the golden girl of the Winter Olympics with a dominant victory in the women's downhill at Whistler Creekside on Wednesday.

Vonn had been troubled by a shin injury in the build-up to the Games in Vancouver but showed no ill-effects with a blistering run of one minute 44.19 seconds to win her first Olympic medal of any color.

The Minnesotan, the reigning world champion in the discipline and totally dominant on the World Cup circuit in the build-up to Games, decimated the time set by fellow American Julia Mancuso by over half a second from start number 16.

"I dreamed about what this would feel like but it is much better in real life," said the 25-year-old.

"I can't stop crying. This is everything that I ever wanted and hoped for. I had a lot of ups and downs in my career. Standing here today at the finish, and to win, is amazing."

Vonn is also the first American woman to win downhill gold and the first to win a speed event at the Olympics since Picabo Street triumphed in the super-G at Nagano in 1998.

Friday, February 12, 2010 at 8:29:00 AM

SharePoint 2010 -- Insights

Empower Decision Makers
Empower users to collaborate better and make more agile business decisions by accessing the information they need, when they need it. With powerful self-service capabilities integrated into familiar tools, users can create and share the right information and drive the business forward by providing timely responses and taking advantage of opportunities as they arise.
 
Improve Organizational Effectiveness
Manage, drive, and define organizational success by aligning to key metrics and strategy through context-driven dashboards. Measure critical success factors and empower everyone to create and analyze the information necessary to stay informed and move the business forward. Enable accountability and transparency across the company and remove barriers to productivity.
 
Enable IT Efficiency
Use a complete, integrated business collaboration platform that can empower users to discover, analyze, and share the right information across unstructured and structured assets. With a platform built on standards, IT can address business requirements by putting information in the hands of users and focusing on developing, maintaining, and securing systems.

Joel Olsen has great information on his blog at:
Joel Olsen's Blog

 

 

Thursday, January 21, 2010 at 6:53:00 AM

Aid to Haiti is improving

 

Stung by criticism that aid hasn't been getting into earthquake-ravaged Haiti quickly enough, U.S. officials say they are taking steps to rectify the problem and the perception.

A senior administration official involved in the aid operation acknowledged Wednesday that not all aid, particularly medical supplies, was getting through fast enough and attributed it to two factors:

Dozens of planes were flying into the Port-Au-Prince airport in Haiti, carrying a variety of food, water, medicine and search-and-rescue gear.

The official, who spoke on condition of anonymity, said military personnel on the ground were sometimes confused about what each plane was carrying.

The military will now station aid officials in the airport control tower to assess the contents of each flight, to ease the flow of aid.

Also, a Web-based system has been created so that aid groups, donor countries and others can track when each flight is scheduled to land and the supplies it has aboard.

Thursday, January 21, 2010 at 6:26:00 AM

Avatar is one the best movies I've seen in recent years!

avatar duo

Here is a review from Hollywoodreporter:

Bottom Line: A titanic entertainment -- movie magic is back!

A dozen years later, James Cameron has proven his point: He is king of the world.

As commander-in-chief of an army of visual-effects technicians, creature designers, motion-capture mavens, stunt performers, dancers, actors and music and sound magicians, he brings science-fiction movies into the 21st century with the jaw-dropping wonder that is "Avatar." And he did it almost from scratch.

There is no underlying novel or myth to generate his story. He certainly draws deeply on Westerns, going back to "The Vanishing American" and, in particular, "Dances With Wolves." And the American tragedy in Vietnam informs much of his story. But then all great stories build on the past ( "Avatar" premiered Thursday in London).

After writing this story many years ago, he discovered that the technology he needed to make it happen did not exist. So, he went out and created it in collaboration with the best effects minds in the business. This is motion capture brought to a new high where every detail of the actors' performances gets preserved in the final CG character as they appear on the screen. Yes, those eyes are no longer dead holes but big and expressive, almost dominating the wide and long alien faces.

You can read full review at:

http://www.hollywoodreporter.com/hr/film-reviews/avatar-film-review-1004052868.story


 

 

 

Saturday, October 24, 2009 at 10:54:00 AM

Home Sales rise 9.4 percent in September

Home resales in September clocked the largest monthly increase in 26 years as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.

Sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million last month, from a downwardly revised pace of 5.1 million in August, the National Association of Realtors said Friday.

That pace was the strongest in two years and beat Wall Street forecasts. Sales had been expected to rise to an annual rate of 5.35 million, according to economists surveyed by Thomson Reuters.

"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.

Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.

Prices, however, continued to be dragged down by foreclosures and short sales, where the mortgage exceeds the sales price. The median price last month was $174,900, down almost 9 percent from $191,200 a year earlier, and slightly lower than August's median of $177,300.

The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's less than an eight-month supply at the current sales pace, and the lowest level since March 2007.

Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas.

First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.

The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30. However, economists note that bargain-priced foreclosures and low mortgage rates are making a big contribution to the sales boom.

"We think the housing market has touched bottom and it is now only a matter of time until home prices stabilize — something that we anticipate to occur in late 2010," wrote Joseph LaVorgna, chief U.S. economist at Deutsche Bank.

Prices could fall further because rising unemployment leads to more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to fall behind on their mortgages.

"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."

With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.

Realtors and homebuilders are loudly in favor, arguing that the tax credit is crucial to get the housing market back on its feet.

"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.

However, some analysts say the tax credit may not be as critical to the housing market as real estate agents suggest. "The group has an incentive to talk up the effects of the credit as it is urging Congress to extend it, and it therefore may be exaggerating the credit's effects," wrote Zach Pandl, an economist with Nomura Securities.

One potential roadblock to an extension also emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.

At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.

Saturday, October 24, 2009 at 8:27:00 AM

Diversification and Innovation -- Strategies for long-term viability

Investors are cheering, but they shouldn't. Even in these tough times, more CEOs should be talking about how they are seeking out investments, developing new technologies and making acquisitions.

That's what will set their companies up for a stronger future.

Intel Corp.'s former CEO Gordon Moore had it right when he said years ago that "you can't save your way out of a recession." He meant that even in the toughest times, companies have to spend money on new ideas.

Recessions always end, Moore often said, and when they do, companies that embraced innovation during the downturn won't be stuck with obsolete products and services. Instead, they'll have new things to offer once demand picks up again.

"Customers don't come out of recessions spending the way they did before," said Chunka Mui, who has studied how companies can capitalize on opportunities during crises at his Chicago-based consulting firm, The Devil's Advocate Group. "They demand something different."

Surprisingly few companies are following Moore's advice of innovating during recessions.

Companies in the Standard & Poor's 500 index cut 25 percent on average from their capital expenditures expenses and 5 percent from research and development costs between the end of the third quarter last year and the second quarter this year, according to S&P.

Many have been crippled by the pullback in consumer and business spending as well as tight credit conditions, which is making it harder for companies to get loans to fund their operations. That's driven some to hoard cash and make drastic cost cuts. They're slashing jobs and wages and closing stores and factories.

The aggressive cuts have allowed companies to exceed Wall Street's expectations for their earnings. In fact, the "good" news has sent the Dow Jones industrial average above 10,000 for the first time in a year.

The problem is that too many companies are making widespread, not focused cuts. They're telling every division to cut 10 percent of their work force or slashing marketing dollars by the same amount companywide.

That is a quick way to rid a company of costs. But it doesn't help it get in a better position going forward, says Cesare Mainardi, managing director at the consulting firm Booz & Co. and co-author of the new book "Cut Costs, Grow Stronger."

"A downturn like this should force people's hand," he said.

At Intel, Moore's philosophy has been used consistently since he led the chipmaker starting in the late 1970s. Over the years, the Santa Clara, Calif., company's top executives continue to openly discuss the company's strategy of investing heavily in downturns.

During the 2001 recession, which hit tech companies particularly hard, Intel cut thousands of jobs and shut down unprofitable ventures. But it also ramped up spending on research and development on its core business of making computer microprocessors, even as its profits faltered. That helped the company diversify its product mix.

Apple Inc. had been struggling in the late 1990s as competition in the computer business intensified. But that didn't stop the Cupertino, Calif.-based company from boosting its spending by 30 percent on research and development from 1999 to 2002, even as revenues fell.

As a result, the iPod was launched during a downturn in October 2001. Apple also made headway on its iTunes music store at that time, enabling it to launch in 2003.

Southwest Airlines has also expanded during past recessions. The carrier, which is based in Dallas, was founded during a period of weak economic growth and soaring energy costs during the early 1970s. It boosted its fleet of aircraft and expanded its routes during the early 1990s and 2001 recessions, allowing it to steal market share from competitors.

To be sure, some companies are in fact heeding Moore's advice.

Intel announced plans to spend $7 billion over this year and next to build new manufacturing facilities so it can produce faster chips.

Walt Disney Co. is planning to give a high-tech makeover to its stores that will make them into mini-theme parks. Proctor & Gamble is overhauling its Gillette shaving operations in Boston.

Toys R Us Inc. has been buying up competitors, including high-end specialty chain FAO Schwarz. Cisco Systems Inc. has made five acquisitions this year, including two in the last month with a combined price tag of nearly $6 billion.

Google Inc. said it is ready to step up its hiring and plunge money into up and coming businesses, in areas like mobile technology.

"We now have the business confidence to invest heavily in the next phase of innovation, helping to invent the future as we see it," Google CEO Eric Schmidt told investors earlier this month.

It's a leap of faith -- and the right time to do it.

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