Wednesday, July 30, 2014

CBO is Substantially Misleading the US Public on the Cost Of Corporate Inversions

The CBO just estimated that the cost to the US Government of Corporate Inversions over the next 10 years is less than $20 bil.

But just one attempted but so far failed corporate inversion by Pfizer and Astra Zeneca would have resulted in a reduction in US Federal Income Taxes Paid of about $1 bil per year, with such amounts increasing each year.

And there have been many actual corporate inversions announced very recently.....Abbvie's $54 bil acquisition of Shire and Medtronic's $43 bil acquisition of Covidien, just to name two of the many.  

With such a ludicrous CBO cost estimate of less than $20 bil over 10 years for Corporate Inversions, which has to be understated by at least 5 times, the CBO is not serving the best interests of US citizens.

When you have a US Government Agency whose cost estimate is clearly off by so much on such a critical issue, it is high time for someone outside the US Government to audit the reasonableness of critical CBO estimates.  And it is also high time for academic CBO economists making such incredibly inaccurate estimates to get some real-world business experience.  Just sayin!

On the positive side, in May 2014 about 14 US Democratic Senators introduced the "STOP CORPORATE INVERSIONS ACT of 2014", led by Michigan US Senator Carl Levin.  Also, Levin's brother introduced similar companion legislation in the US House.

And in late July 2014, US Senators Carl Levin from Michigan and Dick Durbin from Illinois and US House of Representative members Rosa DeLauro from progressive New Haven, Connecticut where Yale is based and Lloyd Doggett from progressive Austin, Texas where the University of Texas is based introduced the "No  Federal Contracts for Corporate Deserters Act", which focuses on Corporate Inversions.

But still, US Congressional Republicans and even some Democrats, all controlled by large US Corporations and their lobbyists, have elected to not pursue this legislation, which would prevent or at least substantially curtail these unpatriotic actions of some large US Corporations which are so substantially detrimental to the finances of both the US Federal Government and the US State Governments.

If there were a properly explained poll taken on whether the massive tax benefits of Corporate Inversions should be allowed for US Federal Income Tax and US State Income Tax purposes, I am certain that more than 90% of US citizens would say that they should not be allowed.  Just this one issue tells you why the country has such a low approval rating of the US Congress, where so many of them.....nearly all Republicans and even some Democrats.....proclaim that they don't favor wealthy citizens and large Corporations over everyone else, but consistently vote otherwise.
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Thursday, July 10, 2014

Los Angeles Area Company Stock Prices Up 406% Since March 6, 2009

I found 132 Los Angeles Area Headquartered Companies in Google or Yahoo's superb Finance websites with current Total Market Capitalizations of at least $100 mil and which also had their common stocks trading on each of the following three dates:
  • On December 31, 2007 during President Bush's second term
  • On March 6, 2009, very early in President Obama's first term, which was the lowest point for the US stock market due to the spillover effects resulting from the 2008 financial meltdown, and 
  • also on the most recent date July 10, 2014
I also included 5 Companies which were sold since July 2013.  And I also included 2 Companies whose common stock first started trading in 2008.  That makes a total of 139 Los Angeles Area Companies.

The historical stock prices of these companies were obtained from the following two excellent internet resources....  Google Finance and MarketWatch Big Charts.

These 139 Los Angeles Area Companies had their average stock market prices decline by a massive 56% from December 31, 2007 during President Bush's second Presidential term, to March 6, 2009, very early in President Obama's first term, which was the very lowest point for the overall stock market due to the spillover effects resulting from the disastrous 2008 Financial Meltdown.

But in the five years and four months since March 6, 2009, the equally-company-weighted average stock market prices of these same 139 Los Angeles Area Companies have increased by a spectacular 406% through July 10, 2014.

In similar fashion on the employment front, the US unemployment rate doubled from 5.0% in December 2007 to 10.0% in October 2009, early in President Obama's first term which was the very lowest point for the US Labor Market due to the spillover effects resulting from the disastrous 2008 Financial Meltdown.

And then with the US economic stimulating actions of the Obama Administration taking full effect, coupled with the Quantitative Easing by the US Fed, the US unemployment rate declined sharply from 10.0% in October 2009 to 6.1% in the most recently reported June 2014.

In like manner, California's Stare Unemployment rate more than doubled, spiking up sharply from 5.8% in December 2007 to 12.1% in October 2009. And then with the US economic stimulating actions of the Obama Administration going full throttle, coupled with the Quantitative Easing by the US Fed, the California State unemployment rate declined sharply from 12.1% in October 2009 to 7.6% in the most recently reported May 2014.

Los Angeles Area Citizens must be very pleased with both the outstanding performance of nearly all of their Los Angeles Area Companies as well as the substantial drop in the California State Unemployment rate during the Obama Administration.

Below here are the stock market prices of each of these 139 Los Angeles Area Companies on July 10, 2014, on March 6, 2009, and on December 31, 2007, along with the related Stock Market Price Percentage Changes:




Market Market






Price Price






% %






Change Change



Market Market Market 3-6-09 12-31-07



Price Price Price to to
California Company HQs Area 7-10-14 3-6-09 12-31-07 7-10-14 3-6-09



$s $s $s

Los Angeles Area






…..Technology






CalAmp Oxnard LA       17.79      0.39      2.78 4462% -86%
Power One Camarillo LA         6.34      0.38      3.99 1568% -90%
Autobytel Irvine LA       12.46      1.40    13.75 790% -90%
Western Digital Irvine LA       95.41    14.55    30.21 556% -52%
QAD Santa Barbara LA       17.47      2.72      9.34 542% -71%
Newport Irvine LA       17.72      3.19    12.79 455% -75%
OSI Systems Hawthorne LA       64.81    14.07    26.47 361% -47%
Stamps.com El Segundo LA       34.00      8.15    12.18 317% -33%
Conversant Westlake Village LA       24.28      5.84    21.90 316% -73%
Guidance Software Pasadena LA         9.15      3.09    13.96 196% -78%
Ingram Micro Santa Ana LA       29.06      9.95    18.04 192% -45%
MRV Communications Chatsworth LA 14.19 5.00 46.40 184% -89%
Microsemi Aliso Viejo LA       26.36      9.29    22.14 184% -58%
j2 Global Los Angeles LA       50.04    18.62    21.17 169% -12%
CoreLogic Santa Ana LA       29.62    11.37    19.47 161% -42%
Ixia Calabasas LA       10.82      4.36      9.48 148% -54%
International Rectifier El Segundo LA       27.99    11.59    33.97 142% -66%
Broadcom Irvine LA       37.85    16.97    26.14 123% -35%
Activision Blizzard Santa Monica LA       22.44    10.33    14.85 117% -30%
Semtech Camarillo LA       25.25    11.84    15.52 113% -24%
TTM Technologies Costa Mesa LA         7.90      4.29    11.66 84% -63%
DTS Inc Calabasas LA       19.29    15.35    25.57 26% -40%
Emulex Costa Mesa LA         5.31      4.72    16.32 13% -71%
Qlogic Aliso Viejo LA       10.21      9.70    14.20 5% -32%
Quality Systems Irvine LA       15.08    17.75    15.25 -15% 16%
Multi-Fineline Electronix Irvine LA       10.71    13.05    17.34 -18% -25%








Average % Change all 26 Technology



430% -52%








…..Health Care






Questcor Pharmaceuticals Anaheim LA       93.49      5.02      5.77 1762% -13%
Avanir Pharmaceuticals Aliso Viejo LA         5.62      0.38      1.26 1379% -70%
Endologix Irvine LA       14.31      1.38      2.80 937% -51%
STAAR Surgical Monrovia LA       12.28      1.25      2.64 882% -53%
MannKind Valencia LA         9.89      2.17      7.96 356% -73%
Allergan Irvine LA      165.60    36.52    64.24 353% -43%
The Ensign Group Mission Viejo LA       31.64      7.82      7.86 305% 0%
Molina Healthcare Long Beach LA       46.02    11.43    25.80 303% -56%
Health Net Woodland Hills LA       42.88    10.93    48.30 292% -77%
Edwards Lifesciences Irvine LA       88.15    27.45    23.00 221% 19%
IPC The Hospitalist Co North Hollywood LA       46.73    15.30    20.48 205% -25%
Arrowhead Research Pasadena LA       12.22      4.30    37.80 184% -89%
Amgen Thousand Oaks LA      118.95    46.38    46.44 156% 0%
ICU Medical San Clemente LA       60.80    28.41    36.01 114% -21%
CytRx Los Angeles LA         3.52      1.96    19.88 80% -90%
Peregrine Pharmaceuticals Tustin LA         1.71      1.60      2.22 7% -28%
Masimo Irvine LA       24.33    24.08    39.45 1% -39%
Alliance Healthcare Services Newport Beach LA       28.04    34.35    48.10 -18% -29%
Skilled Healthcare Group Foothill Ranch LA         6.06      8.00    14.63 -24% -45%








Average % Change all 19 Health Care



395% -41%








…..Finance






Consumer Portfolio Services Irvine LA         7.93      0.35      3.35 2166% -90%
CapitalSource Los Angeles LA       15.50      1.01    17.59 1435% -94%
CBRE Group Los Angeles LA       32.63      2.52    21.55 1195% -88%
Macerich Santa Monica LA       67.05      6.79    67.32 887% -90%
East West Bancorp Pasadena LA       35.75      3.69    24.23 869% -85%
BBCN Bancorp Los Angeles LA       15.99      2.25    11.67 611% -81%
Sunstone Hotel Investors Aliso Viejo LA       14.85      2.11    18.29 604% -88%
Pacific Premier Bancorp Irvine LA       14.04      2.80      6.91 401% -59%
CorVel Irvine LA       45.35      9.25    11.51 390% -20%
Douglas Emmett Inc Santa Monica LA       28.80      6.45    22.61 347% -71%
Preferred Bank Los Angeles LA       23.08      5.35    26.02 331% -79%
PacWest Bancorp Los Angeles LA       42.19      9.78    41.24 331% -76%
MPG Office Trust Los Angeles LA         3.14      0.76    29.47 313% -97%
Kilroy Realty Los Angeles LA       62.26    15.52    54.96 301% -72%
Public Storage Glendale LA      171.26    48.83    73.41 251% -33%
Sabra Health Care REIT Irvine LA       28.79      8.24    17.17 249% -52%
Hanmi Financial Los Angeles LA       22.15      6.64    69.96 234% -91%
City National Los Angeles LA       75.42    23.68    59.55 218% -60%
Cathay General Bancorp Los Angeles LA       25.37      8.08    26.49 214% -69%
Provident Financial Holdings Riverside LA       14.45      4.80    16.46 201% -71%
Wilshire Bancorp Los Angeles LA       10.16      3.65      7.85 178% -54%
CVB Financial Ontario LA       15.87      5.77    10.34 175% -44%
HCP Inc Long Beach LA       41.54    16.08    34.78 158% -54%
American Business Bank Los Angeles LA       29.60    11.65    16.53 154% -30%
Simplicity Bancorp Covina LA       17.00      6.80    10.09 150% -33%
CU Bancorp Encino LA       18.76      7.65    14.00 145% -45%
Alexandria Real Estate Equities Pasadena LA       77.87    32.83  101.67 137% -68%
LTC Properties Westlake Village LA       39.21    16.74    25.05 134% -33%
Pacific Mercantile Bancorp Costa Mesa LA         6.75      3.15    12.31 114% -74%
California First Natl Bancorp Irvine LA       15.25      7.53      9.74 103% -23%
Mercury General Los Angeles LA       46.60    23.53    49.81 98% -53%
Banc of California Irvine LA       10.76      5.63    18.00 91% -69%
Anworth Mortgage Asset Santa Monica LA         5.18      5.54      8.26 -6% -33%








Average % Change all 33 Financial




399% -63%








…..Services






Entravision Communications Santa Monica LA         6.06      0.20      7.83 2930% -97%
Salem Communications Camarillo LA         9.52      0.34      6.59 2700% -95%
On Assignment Calabasas LA       35.19      1.44      7.01 2344% -79%
DineEquity Glendale LA       78.83      5.93    36.58 1229% -84%
Live Nation Entertainment Beverly Hills LA       24.62      2.89    14.52 752% -80%
Cheesecake Factory Calabasas LA       46.34      7.15    23.71 548% -70%
General Finance Corp Pasadena LA         9.43      1.46      9.08 546% -84%
Acacia Research Corp Newport Beach LA       15.45      2.50      8.98 518% -72%
Collectors Universe Santa Ana LA       18.85      3.38    11.18 458% -70%
Walt Disney Co Burbank LA       86.86    15.83    32.28 449% -51%
Lions Gate Entertainment Santa Monica LA       28.43      5.32      9.42 434% -44%
Daily Journal Los Angeles LA      183.10    34.32    41.25 434% -17%
DIRECTV El Segundo LA       86.41    19.68    23.12 339% -15%
Korn/Ferry Intl Los Angeles LA       29.81      8.30    18.82 259% -56%
PCM Inc El Segundo LA       11.03      3.24      9.31 240% -65%
BJs Restaurants Huntington Beach LA       34.23    10.66    16.26 221% -34%
US Auto Parts Network Carson LA         3.56      1.26      8.11 183% -84%
Reading Intl Los Angeles LA         8.25      3.05      9.99 170% -69%
Big 5 Sporting Goods El Segundo LA       12.02      4.46    14.42 170% -69%
United Online Woodland Hills LA         9.69      4.06    11.82 139% -66%
Crown Media Holdings Studio City LA         3.57      1.62      6.50 120% -75%
Spark Networks Los Angeles LA         5.25      2.44      4.98 115% -51%
Guess? Inc Los Angeles LA       27.63    13.29    37.89 108% -65%
VCA Antech Inc Los Angeles LA       35.66    18.06    44.23 97% -59%
Pacific Sunwear California Anaheim LA         2.27      1.32    14.11 72% -91%
Jacobs Engineering Group Pasadena LA       53.15    32.71    95.61 62% -66%
Arden Group Compton LA      126.38    83.86  154.69 51% -46%
AECOM Technology Los Angeles LA       31.66    21.17    28.57 50% -26%
Tetra Tech Pasadena LA       27.17    21.17    21.50 28% -2%
DreamWorks Animation SKG Glendale LA       22.64    18.56    25.54 22% -27%
Cherokee Sherman Oaks LA       15.18    13.27    32.27 14% -59%
Resources Connection Irvine LA       12.99    13.02    18.16 0% -28%








Average % Change all 32 Services




494% -59%








…..Other Sectors






Standard Pacific Irvine LA         8.25      0.69      3.35 1096% -79%
Signature Group Holdings Sherman Oaks LA         9.45      0.80    35.00 1081% -98%
Herbalife Los Angeles LA       64.99      6.47    20.14 904% -68%
Skechers USA Manhattan Beach LA       45.30      5.71    19.51 693% -71%
Motor Parts America Torrance LA       24.53      3.45    10.96 611% -69%
Kaiser Aluminum Foothill Ranch LA       72.05    16.70    79.48 331% -79%
Teledyne Technologies Thousand Oaks LA       94.64    22.29    53.33 325% -58%
Rentech Los Angeles LA         2.32      0.56      1.81 314% -69%
Monster Beverage Corona LA       70.86    17.68    22.15 301% -20%
True Religion Apparel Vernon LA       31.98      8.18    21.35 291% -62%
Mattel El Segundo LA       39.25    10.82    19.04 263% -43%
Breitburn Energy Partners LP Los Angeles LA       21.96      6.11    28.90 260% -79%
Quiksilver Huntington Beach LA         3.29      0.99      8.58 232% -88%
Capstone Turbine Chatsworth LA         1.42      0.43      1.63 230% -74%
Reliance Steel & Aluminum Los Angeles LA       73.22    22.44    54.20 226% -59%
Calavo Growers Santa Paula LA       34.69    10.99    18.95 216% -42%
Ryland Group Westlake Village LA       38.66    12.33    27.55 214% -55%
Universal Electronics Santa Ana LA       49.32    15.75    33.44 213% -53%
Avery Dennison Pasadena LA       50.85    17.40    53.14 192% -67%
Tutor Perini Sylmar LA       29.74    10.77    41.42 176% -74%
Superior Industries Intl Van Nuys LA       20.50      9.48    18.17 116% -48%
KB Home Los Angeles LA       17.82      8.27    21.60 115% -62%
Ducommun Inc Carson LA       24.78    11.96    38.00 107% -69%
Chromadex Irvine LA         1.44      0.70      3.75 106% -81%
Occidental Petroleum Los Angeles LA      100.41    50.54    76.99 99% -34%
Farmer Brothers Torrance LA       22.00    15.19    22.99 45% -34%
AeroVironment Monrovia LA       34.15    31.78    24.20 7% 31%
American Vanguard Newport Beach LA       12.32    11.73    17.35 5% -32%
JAKKS Pacific Malibu LA         7.89    10.80    23.61 -27% -54%








Average % Change all 29 Services




302% -58%








Average % Change all 139 LA Area Companies



406% -56%




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