| Rolling Up the Online Newspaper Coverage
Ironically enough, it was in a data-based article about the future of the newspaper business, which has been turning shareholders into sob sisters for years now without more than vague promise for a reversal. If you can find a single hard fact to support the hope that they'll get out of their roiling cauldron, do let me know. But here's the data on the future of newspapers: Nielsen compiled numbers showing that newspapers saw 6% growth in online readers for 2007 vs. 2006. Alone, this is bad news. If newspaper companies like Gannett (GCI - Cramer's Take - Stockpickr) and New York Times (NYT - Cramer's Take - Stockpickr) are going to replace enough of their exponentially more profitable print readers with the fly-by-night, cheap-o Internet ones -- well, they gotta' be growing their readership base by more than this or my name ain't Rupert T.
ALL BUSINESS: Banks face more woes from rising delinquencies on second ...
Contrarian investors who think now is the time to start buying beaten-down banking stocks could be in for a shock if they don't carefully review those companies' distressed home-equity loan portfolios. Massive losses tied to subprime-mortgage investments knocked down bank earnings over the last year, spurring investors to flee those stocks. But that could be only the start: Rising delinquencies in home-equity loans and other second mortgages could keep the banks' results from improving anytime soon. In recent days, executives at Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. said missed loan payments were a factor in their quarterly earnings declines. Most said the problem would only get worse. Why? A so-far small, but growing, number of homeowners who used their homes like an ATM to fund their spending and investment bets are finding themselves in a financial pinch.
Mortgage-rate reset needn't be crisis
And for those facing higher resets on adjustable-rate mortgage payments, it's time to negotiate. If your mortgage is ratcheting up to a monthly payment you can't afford, you may have some leverage in lowering the rate. Your lender may even welcome the move and allow you to do a low- cost loan modification. To date, some $150 billion in adjustable loans have reset with $300 billion more in the pipeline, according to the Federal Deposit Insurance Corp. The greatest number of mortgage-rate increases is likely to hit borrowers this year. In many cases, your lender may call you first to see if you want to modify your loan's terms. That's what happened to Dick Lepre, a loan officer for Residential Pacific Mortgage Corp. in San Francisco. "I had a 5/1 adjustable at 4.25 percent and Chase Mortgage called me up to reset it at 5.625 percent for seven years," Lepre told me.
IRS says Enron stock can't be deducted as theft losses
Personal finance columnist Shannon Buggs answers readers' questions about managing money. Q: We still own Enron stock and qualify for the reimbursement package that was mailed to investors this week. My question: Can we deduct the losses not covered by the reimbursement as theft losses on our taxes next year? At what point does a capital loss become a theft loss? A: No, you cannot deduct as theft losses the amount you invested in Enron stock that is not covered by the reimbursement. The Internal Revenue Service stated in an April 19, 2004, notice that it would "disallow such deductions and may impose penalties" on taxpayers who claimed theft loss deductions for "the decline in market value of their stock caused by disclosure of accounting fraud or other illegal misconduct of the officers or directors of the corporation that issued the stock." The tax code limits losses for individuals to: Losses incurred in a trade or business.
Unversity Place litigation settled
A settlement has been reached in litigation over the University of Idahos failed University Place real estate project in Boise. Under its terms, the UI Foundation will pay $2.5 million and the various parties insurers will pay $5.8 million, for a total $8.3 million mediated settlement. Of that, $5.8 million goes to the foundations Consolidated Investment Trust, and the other $2.5 million goes to the university. In a joint statement, the parties, who include law firms, insurance companies, the UI Foundation board, and former UI officials including former President Robert Hoover, said, The settlement is a reasonable resolution of an extremely complex matter, avoids substantial future litigation costs, and is in the best interest of the University community. The amount being paid by each party is being kept secret.
Phoenix Suns (30-13) at Cleveland Cavaliers (23-18), 7 p.m.
The Cleveland Cavaliers will continue their hot start to the new year tonight, when they close out a two-game homestand versus the Phoenix Suns at Quicken Loans Arena.The Cavs have won five straight and improved to 9-1 in January after Wednesday's 121-85 victory over the Washington Wizards in the opener of the homestand. Zydrunas Ilgauskas scored 24 points for Cleveland, which has won 11 of its last 13 games. LeBron James had 23 points, eight rebounds and eight assists for the Cavaliers, while Drew Gooden had 18 points and 10 boards.Cleveland has won six in a row at home and owns a 13-6 mark at Quicken Loans Arena this season. In injury news for the Cavaliers, forward Cedric Simmons (finger) is doubtful for Friday's game, while forward Donyell Marshall (wrist/finger) is listed as questionable.Meanwhile, Phoenix will try to get back on the winning track when it resume a four-game road trip on Friday night.
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