The Oregon Biz Report - Business News from Oregon

1. The US launched air strikes into what nation this week?

2. Which company did not see their profits rise over 30% this week?
A) Viacom
B) Comcast
C) Sony

Harlan Levy, State Director, Oregon NFIB
My Voice in Oregon Newsletter, Oct/Nov. 2008

Keep talking and keep leading, Oregon small business owner. You are pulling more voters into the polling place than just yourself. The power of the small business voting bloc is one of the mightiest in the nation, and it will be measured next month on Election Day, when the entire nation will march to the polls and choose candidates up and down the ballot. Here’s what you should know about your size and influence in polls and surveys taken by NFIB, USA Today/CNN/Gallup, Strategy One, Penn and Schoen Associates, Fabrizio, McLaughlin & Associates, and the Winston Group:

By Mark G. Neil,
Pres. Northwest Wealth Advisors
Radio Host, Your Money & Your Life, KBNP AM 1410

As we move closer to the elections and arguably the most important decision our country has to make in nearly a decade, I thought it appropriate to update you on our thoughts and strategies going forward.

In the short term we are expecting a bounce up in the markets after the election.  While we can never be certain who the winner is until after the elections are over, we do know that there will be a new president and a new administration. The resulting changes and good feelings that accompany that transition should bode well for the markets in the short term. 

By Oregon Biz Report,

Oregon Golf is one of those Oregon home grown companies you hate to see disappear.  This month all three of their stores have closed.  Hurting the chain was the inability to get a bank loan in the crippling credit crunch.   Banks are tightening up and this is putting small businesses in a bind.

A sign on the door simply read, “Oregon Golf has gone out of business.  We appreciated your support over the years.”

From Bill Conerly, Businomics, Conerly Consulting LLC

The world of finance for small and medium businesses was changing even before this year’s financial crisis–but now the changes are galloping.  Money is moving around the world like never before.  When you borrow money, even from an American loan officer working for an American bank, the money may well have come from China or Kuwait.

Securitization of business is common–and you may never know that your loan is being securitized.

1. Amazon.com posted a 48% profit increase this week.  But what was the bad news that caused its stock to drop?
A) eBay passed Amazon in sales for the first time
B) Forecasted difficult holiday sales
C) Their side investments were depleted during the market crisis
D) They announced a shake-up in their management

Steven Hall and Partners reports the equity share of CEO’s investment in their own company and the loss.

CEO, company, Equity Loss
Warren Buffet, Berkshire Hathaway:   -$9.6 Billion
Larry Ellison, Oracle:    -$6.6 Billion
Steve Ballmer, Microsoft:    -$4.8 Billion
Jeff Bezos, Amazon.com:   -$4.2 Billion
Rupert Murdoch, News. Corp.:   - $3.9 Billion

Guest Opinion, Portland

The market crisis has created a wave of full-page and pull-color ads to hit national and local newspapers. Yesterday US Bank aimed for confidence when they placed a full-page ad in The Oregonian stating in large bold headlines “Bank Solid. Bank US Bank”. The ad further states “Since 1863…Our prudent approach to banking, strong balance sheet and solid position have put us in a better position to serve you.”

Also in The Oregonian this week, UBS Financial Services went for large full color advertisement with the headline “You and Us. The World changes. Our commitment doesn’t.” The ad further stated “Markets may be volatile, old certainties may waver. But you can be sure that at UBS, our commitment to our clients has not changed.” Clearly the banks and financial firms are addressing market fears head-on in order to stem customers pulling deposits and making panic stock sells.

By Nike Kern,

As traffic congestion and high fuel costs continue to become a hot topic though out our state, the use of roundabouts are beginning to be more widely discussed and implemented by city planners and traffic specialists. The innovative concept has once again found its way back into the mindsets of Americans who enjoy the effectiveness and safety of using traffic circles.

By Mark G. Neil,
Pres. Northwest Wealth Advisors
Radio Host, Your Money & Your Life, KBNP AM 1410

It is during times like these that I am reminded of two observations on life and the markets.

First in the context of life, our most worrisome times always happen at night.  Whether you are worried about your portfolio or the health and safety of a family member, that anxiety always seems to peak around 2 or 3 AM as you awaken for some inexplicable reason and then spend an hour or so thinking about the worst case scenarios.  Fortunately things do look better in the morning because we can then get up and do something to reduce that anxiety.  For me often times those wakeful hours are fairly productive as I rethink strategies, conversations or steps that I am implementing.  It also helps that as you age, I think you can get by on less sleep.  I don’t have any good advice for you regarding those wakeful nights, but perhaps the discussion that follows may help in some way

By Bill Conerly, Businomics, Conerly Consulting,

A Seattle bank invited  me to speak to their clients, and afterward the bank did something different: they presented a panel of their clients to talk about how the downturn was affecting  them.  The best part was the tips presented by these business leaders.  They covered almost everything I wrote about business strategy in a recession in Businomics.  Here are the key points:

* Watch your inventory level closely; don’t let it get out of hand
* Watch trade credit.  Be cautious extending trade credit, and collect aggressively
* Watch staffing levels.  If you are going to have to cut, better to do it early.

Test your knowledge on these seven questions

1. Which Oregon sports team was sold this week?

2. NIke has filed suit against which company for selling shoes similiar to Nike’s Shox.
A) Addidas
B) Wal-MArt
C) Payless shoes
D) Footlocker

From Mark Burles,
Senior Vice President Ipsos Public Affairs

As dramatic as recent events in financial markets have been, it’s worth taking a moment to look beyond the latest headlines to examine the implications our current crisis holds for the global economy. This crisis promises to finally force the unwinding of the massive imbalances of savings and investment that have characterized the global economy for at least the past 10 years and usher us into an economic world very different from the one Americans have grown accustomed to.

The global economy in recent years has been characterized by  co-dependencies between consumption within the US economy and investment from non-US, primarily Asian, sources. The hard charging, heavy spending US consumer served as the key driver of growth both domestically and globally. Export oriented economies, again mainly in Asia, benefitted from this by providing low-cost, inflation killing products to the seemingly insatiable US consumer.

In response to Wells Fargo Business Survey showing a drop in business optimism, Oregon Biz Report decided to seek for solutions. Here is the question we asked; “Surveys show small business optimism is down in Oregon. What can be done to improve it?”

“Optimism, or its archenemy pessimism, may be based on facts or gut feelings. If a small business is, in fact, seeing sales and profit erosion or balance sheet weakening, a reality check and plan of action to deal with it is critical. If based on “feelings”, it is probably best to stick to your business plan and try not to get caught up in the national or regional malaise. Depending on your capacity to act, times when your competition is bummed out present opportunities to build market share. “
Chuck Martin
Business Savvy, Gearhart

Despite a great location along two highways, this Beaverton Burger King was suddenly closed in the past few weeks.  Next to it was an Azteca Restaurant which represents the largest Mexican chain in the Pacific Northwest.  The Azteca was sold and converted into a private family establishment.    Several blocks West lies an abandoned Chili’s which was one of four Chili’s that closed in the Portland area putting over 250 employees out of work.  Next to that Chili’s is an abandoned Hooters which closed this year as well.

By Bill Conerly, Businomics, Conerly Consulting,

Last night Mrs. Businomics and I were doing things we hardly ever do.  I was admitting that I had been wrong.  She was agreeing with me.  Then I went to read some blogs and I found Brad DeLong saying exactly what I had been thinking, which is also fairly unusual.  The subject: we economists have been wrong about monetary policy and asset bubbles.

Back in the old, old days, like the 1980s, we had all become monetarists.  Professor Friedman taught that money supply growth rates should be stable and low.  Then financial deregulation, sweep accounts, and other innovations made the money supply numbers hard to interpret.  So we economists looked at inflation, and the gap between actual output and potential output, to assess whether the Fed was being loose or tight with monetary policy.

Test your knowledge on key business and foreign affairs news.

1. What is the first state in the U.S. that has officially entered into a recession?
A) Calfironia
B) New York
C) Flordia
D) Washington

By Jack Rubinger, Jack Rubinger Media Relations, 503-788-7325

Over the course of more than 20 years, I’ve participated in hundreds of new business meetings, conversations at trade shows and exchanges with editors and reporters from obscure trade magazines to the Wall Street Journal.   Still. misconceptions remain about the practice of public relations, e.g. “No, it’s not an ad.”  The following should dispel some misconceptions and provide illumination about what public relations is and how it works.

Business Community Update:

Every year the Oregon Ethics in Business Awards goes to businesses and business members who have merited notable ethical values in the workforce.  It is determined by a coalition of organizations such as the Samaritan Counseling Center, Rotary Club of Portland, Willamette University MBA; and the Portland Business Journal. Nominate your choice here before November 16th. See below for a complete description of the awards program.

Target             -.3%
Saks                -3.7%
Kohl’s              -4.6%
Limited Brands -4.7%
Nordstrom       -5.8%
Dillard’s           -6.0%
Gap                  -7.2%
J.C. Penny         -8.3%

Source: Thomson Reuters. September 08 sales compared to September 07 sales.