PROFNET EXPERT ALERTS: Business & Technology

1. Automotive: Speed of the GM and Chrysler Bankruptcy Deals
2. Business: Down Economy Exposes Pyramid Schemes' Shaky Foundations
3. Business: Political Trouble in Honduras Impacts U.S. Business
4. Charities: Future of Fundraising
5. Economy: A Second Stimulus Package Already?
6. Economy: Possible Default by California: Healthy for Financial System
7. Economy: Jobless Recovery?
8. Energy: Legislation, Supply, Demand Driving Vehicle Natural Gas Use
9. Finance: Due Diligence More Important than Ever
10. Finance: New California Law a Potential Tax Threat for Celeb Estates
11. Finance: Resolution of Jackson Will Won't Be Easy
12. Finance: Suggested Portfolio for Investors Getting Back into Market
13. Finance: CLO Market: Still a Bargain?
14. Internet: Reckless E-mails Claim Another High-Profile Victim
15. Non-Profits: Facing Financial Anxiety but Battling Through It

1. AUTOMOTIVE: SPEED OF THE GM AND CHRYSLER BANKRUPTCY DEALS. DAVID SCHILLI,
an attorney with ROBINSON BRADSHAW & HINSON in Charlotte, N.C., can discuss
how the speed of the GM and Chrysler bankruptcy deals was rooted in the
interest of several parties: "Government intervention on several different
fronts and a decision that it did not want Chrysler to fail helped provide
unprecedented speed to both the GM and Chrysler automotive bankruptcy deals.
Some would say this is because of the importance of the automotive industry to
the overall American manufacturing economy, while others would say because of
the political support and positioning of the United Auto Workers with respect
to the current administration. But really, it was not that much different than
fall 2008, when the government made similar decisions with respect to AIG and
Lehman Brothers." News Contact: Mike Henry, mhenry@wrayward.com Phone: +1-704-
926-1364 (7/13/09)
2. BUSINESS: DOWN ECONOMY EXPOSES PYRAMID SCHEMES' SHAKY FOUNDATIONS. SCOTT
CLEARMAN of Houston's CLEARMAN LAW FIRM: "With promises of stable income and
even wealth, many people are drawn to pyramid schemes during harsh economic
times. Most pyramid schemes use an intensive campaign to enlist new members
who pay for the rights to sell a product, then receive payment for recruiting
other participants. Pyramid schemes may make money for those at the top, but
not those at the bottom. Law enforcement officials across the nation have
reported a sharp increase in open investigations into such businesses. The
Internet and social networking sites have made these schemes easier to manage,
grow and give the appearance of legitimacy, but they still inevitably fail."
News Contact: Barry Pound, barry@androvett.com Phone: +1-800-559-4534
(7/13/09)
3. BUSINESS: POLITICAL TROUBLE IN HONDURAS IMPACTS U.S. BUSINESS. TREY
BRANHAM, a Dallas attorney with interests in Honduras: "The current unrest in
Central America over the Honduran government will have a significant effect on
business in the U.S. There are several major manufacturers that have
significant Honduran facilities, and 2005 statistics show more than $7 billion
in bilateral trade between Honduras and the U.S. Honduras also is a
significant tourist destination, receiving more than 100 cruise ships every
year. It's pretty simple: stability in the government there is good for
business here. And it's good for the people of Honduras as well. It's in both
our interests to do whatever possible to help resolve this situation quickly."
News Contact: Mark Annick, mark@androvett.com Phone: +1-800-559-4534 (7/13/09)
4. CHARITIES: FUTURE OF FUNDRAISING. TODD LEVY, managing partner of Internet
software company GLOBAL CLOUD, has developed and studied new online tools that
empower charities to drive giving via online and social networks. A GivingUSA
study, released less than a month ago, shows charitable giving decreased in
2008 for the first time in more than 20 years. Furthermore, more than two-
thirds of public charities saw donations decrease in the past year. Levy: "The
economy partly explains the first drop in charitable giving in more than 20
years, but that misses the bigger story. The charity model is broken and a
monumental evolution in fundraising is happening before our eyes." Levy can
speak about the future of fundraising and how the Obama model of incremental
giving, mixed with social media, will change the way charities operate and
people give. He is based in Cincinnati. News Contact: Will Sikes,
will@jzmcbride.com Phone: +1-513-231-5115 (7/13/09)
5. ECONOMY: A SECOND STIMULUS PACKAGE ALREADY? JAMES FRISCHLING, president at
NEWOAK CAPITAL LLC, a New York City-based advisory and asset management firm:
"The calls for a second stimulus package appear to be getting louder and we're
only four months into the first one. Recent economic surveys suggest the U.S.
economy will expand faster in the second half of the year, and signs of
stability in the housing market and an improving consumer confidence should
suggest more time is needed to allow the package to work its way through the
system before another package is even considered. It seems the issue of the
first, and now talk of a second, stimulus package is a political lightening
rod, but the most meaningless statistic in sports is the score at half-time,
and the first package approved in February still leaves us only in the first
quarter of what predicted to be a two-year game. I'd like to see the
administration do what it can to tone down the debate and give the $787
billion a chance to work before going back to the well for another package.
Rising unemployment is clearly something everyone is watching carefully and
remains a key driver for concern, but we're in a much better place today than
we were just a few months ago. This won't be a straight-line recovery, and my
hope is that the administration gives their own program the time it needs to
take effect before judgment is passed." News Contact: Marisa D'Vari,
MDVari@newoakcapital.com (7/13/09)
6. ECONOMY: POSSIBLE DEFAULT BY CALIFORNIA MIGHT BE HEALTHY FOR FINANCIAL
SYSTEM. VINCENT TRUGLIA, managing director of global economic research at
NEWOAK CAPITAL LLC, a New York City-based advisory and asset management firm:
"Although I usually support government bailouts in financial situations that
are dangerous to the financial system as a whole, a possible default by
California might be healthy for the financial system and also California. Over
40 years ago, New York City was forced into a default that ultimately caused
reform in Albany and in the city government, which brought spending and taxing
powers into line for the first time in decades. Prior to the crisis, not only
was New York City profligate, but the state and local governments each boasted
income tax rates of 15 percent and 7+ percent respectively. Those tax rates
are down significantly from those days. New York City is today among the
better-prepared major cities for this economic downturn. Without pain,
unfortunately, there is sometimes no gain." News Contact: Marisa D'Vari,
MDVari@newoakcapital.com (7/13/09)
7. ECONOMY: JOBLESS RECOVERY? RON D'VARI, CEO/co-founder of NEWOAK CAPITAL
LLC, a New York City-based advisory and asset management firm: "There is
always a lag between economic response and economic stimulus. Even if GDP
starts stabilizing and possibly reversing soon, according to some surveys of
economists, the unemployment will continue to be a drag for quite a while and
it would feel like a jobless recovery. Businesses and investors have to just
adjust their expectations and not focus so much on the lagging indicators, but
for real signs of change in direction of economy. Sometimes less bad news is
good news." News Contact: Marisa D'Vari, MDVari@newoakcapital.com (7/13/09)
8. ENERGY: LEGISLATION, SUPPLY, DEMAND DRIVING VEHICLE NATURAL GAS USE. SCOTT
DEATHERAGE, attorney at Dallas's THOMPSON & KNIGHT: "As the U.S. Senate takes
up the debate on climate change legislation, many public and private entities
are taking advantage of existing federal incentives that encourage the use of
natural gas-powered vehicles. The final Senate bill will likely echo the House
version in extending tax and fuel credits for the use of natural gas into the
next decade. Regardless of what happens legislatively, there is a plentiful
domestic supply and a growing market for natural gas as a vehicle fuel,
particularly for large fleet operators. There are also a number of
entrepreneurs who are looking into independent fueling stations to sell liquid
or compressed forms of natural gas." News Contact: Barry Pound,
barry@androvett.com Phone: +1-800-559-4534 (7/13/09)
9. FINANCE: DUE DILIGENCE MORE IMPORTANT THAN EVER. CLIFF RISMAN, real estate
attorney at the Dallas office of GARDERE WYNNE SEWELL LLP: "With investor
money becoming tighter, it might be tempting for businesses to accept whatever
seemingly reasonable investments they might be able to secure. However, due
diligence on all investors is a must. In the current environment, due
diligence is critical, and this goes far beyond traditional reviews of
business and financial fitness. Checks may involve the State Department,
Treasury Department and other governmental agencies, as well as investigations
by private investigation services. Regardless of the domicile or nationality
of the investor, care must be taken to be sure the funds are not the proceeds
of some form of illegal enterprise and that the investor is not on any of the
various terrorism or other watch lists." News Contact: Rhonda Reddick,
rhonda@androvett.com Phone: +1-800-559-4534 (7/13/09)
10. FINANCE: NEW CALIFORNIA LAW A POTENTIAL TAX THREAT FOR ESTATES OF MICHAEL
JACKSON AND OTHER CELEBS. BRIDGET J. CRAWFORD, tax law expert and professor of
law and an associate dean at Pace Law School in White Plains, N.Y.: "Under a
new law passed last year in California, dead celebrities can designate in
their will who gets to benefit from their name after death. What lawmakers,
pundits and even tax experts don't realize, though, is that this means famous
people's estates will have astronomical tax bills -- tax bills that likely
will be much, much bigger than the value of all of the property they owned
during their lifetime. Everyone is talking about the value of Michael
Jackson's business assets, but they are overlooking the 1,000-pound tax man in
the room. 'Tax Man' -- wasn't that a Beatles song? Maybe Michael Jackson owned
it. Tell that to the IRS." Crawford is based in New York City. News Contact:
Gladwyn Lopez, glopez@rubenstein.com Phone: +1-212-843-9231 (7/13/09)
11. FINANCE: RESOLUTION OF JACKSON WILL WON'T BE EASY. STEVE SPITZER, head of
the probate litigation section at Texas-based COWLES & THOMPSON, P.C.: "Few
deaths will attract the massive attention Michael Jackson's has, but anyone
can learn from his estate planning missteps. While he did have a will, it was
not as up-to-date as it could have been. You need to continually update your
will as situations necessitate. Many times, this involves naming an executor
or a child's guardian. It is particularly important that parents of minor
children include guardianship provisions so that their wishes are made known.
As with the naming of an executor, as long as the person named meets basic and
minimal qualifications, the courts usually honor the choice expressed in a
will." News Contact: Rhonda Reddick, rhonda@androvett.com Phone: +1-800-559-
4534 (7/13/09)
12. FINANCE: SUGGESTED PORTFOLIO FOR INVESTORS GETTING BACK INTO THE MARKET.
BRENT BRODESKI, managing partner of SAVANT CAPITAL MANAGEMENT, a fee-only
wealth management firm headquartered in Rockford, Ill., can discuss advice and
suggested allocations for a person who has dropped out of the market and is
looking to get back in: "The odds are in your favor to do the Nestea plunge
and go back in. The wrong answer is to do nothing. For example, for those who
are still anxious, systematic investing is the best route. For instance, an
investor who had a target stock allocation of 70 percent but is now in all
cash may consider adding about 6 percent of the cash into stocks every month
over the next 12 months." Savant Capital Management has been listed as a top
RIA firm in publications such as Barron's, Forbes, InvestmentNews,
BusinessWeek and others. News Contact: Carrie Skogsberg, cskogsberg@pretc.net
Phone: +1-815-489-3955 (7/13/09)
13. FINANCE: CLO MARKET: STILL A BARGAIN? MICHAEL KHANKIN, director of
structured credit portfolio management at NEWOAK CAPITAL LLC, a New York City-
based advisory and asset management firm: "After a relatively quiet holiday
week, the CLO market is back on track. Paper continues to be offered through
auctions and dealer inventories as people take profits and use the rally as an
opportunity to sell. Overall, the market has been flush with good news as
corporate defaults appear to be slowing their pace, matched by rising asset
valuations. CLO tranches are starting to look like bonds again to the
potential bidders and offer substantial relative value as people pare down
their default expectations. Given where we are, CLOs are likely to exhibit
performance that is very sensitive and geared to the corporate market. Should
the corporate loan market stabilize, CLOs will likely outperform as investors
chase for yield. On the contrary, should we hit a down leg of the 'W'
scenario, liquidity is likely to disappear again as recent buyers sustain a
loss to their economic and political capital. Today it looks like the former
scenario is more likely, but compensation for the risk is nowhere near the
levels of a month or two ago." Khankin speaks Russian. News Contact: Marisa
D'Vari, MDVari@newoakcapital.com (7/13/09)
14. INTERNET: RECKLESS E-MAILS CLAIM ANOTHER HIGH-PROFILE VICTIM. ERIN NEALY
COX, a computer forensics expert at Dallas' STROZ FRIEDBERG LLC: "South
Carolina Governor Mark Sanford is only the latest in a long line of public
figures and business leaders tarnished by reckless e-mail communications. Such
ill-conceived e-mail, text messages and social media communications
increasingly play key roles in government investigations and litigation, while
recent studies indicate a growing number of workers are terminated because of
electronic communications. For any person who communicates electronically,
it's advisable to assume there is no expectation of privacy. A good rule of
thumb is this: Don't write anything you wouldn't want your boss, an
investigator or your mother to read." News Contact: Robert Tharp,
robert@androvett.com Phone: +1-800-559-4534 (7/13/09)
15. NON-PROFITS: NON-PROFITS ARE FACING FINANCIAL ANXIETY BUT BATTLING
THROUGH IT. SAMANTHA GRAY is executive director of ATTACHMENT PARENTING
INTERNATIONAL, a non-profit organization that helps create local support
groups, and publishes educational and research materials for parents and
professionals. Non-profits are facing financial anxiety but battling through
it, according to a new survey released by Johns Hopkins University. The survey
found that 80 percent of non-profit organizations are experiencing fiscal
stress and close to 40 percent of them reported the stress is "severe" or
"very severe." Gray: "Non-profit organizations need to be prepared to be
flexible, of course, and even take time to re-evaluate, getting back to their
core mission and assets. Cost-saving activities for a non-profit (like ours)
mean relying on more volunteer participation; leveraging its publications to
trade, rather than purchase, information to promote its activities; and
provide special sponsorship opportunities, like events, to generate added
revenue. Certainly, it's important to use free Internet resources and networks
to reach out for volunteers, promotions, and to encourage contributions -- all
the while, never losing the connection and always remaining understanding of
what the people you're serving are also dealing with in this stressed
economy." Gray is based in Nashville, Tenn. News Contact: Jackie O'Neal,
onealmedia@live.com Phone: +1-609 334-8621 Web site:
http://www.attachmentparenting.org (7/13/09)
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