Tencent investment in Reddit sparks censorship worry

SAN FRANCISCO, United States — Reddit confirmed Monday a new funding round that included a $150 million investment by Chinese technology behemoth Tencent, prompting concerns that “the front page of the internet” might wind up censored.

San Francisco-based Reddit raised a total of $300 million at a $3 billion valuation, with investors including Andreessen Horowitz, Fidelity, Sequoia and Tencent, the company’s CEO told CNBC.

The TechCrunch website reported about the funding round last week, but that information was unconfirmed until now.


Reddit said it planned to use the money for international expansion and to enhance its digital ad platform to better compete in a market where Facebook and Google currently take in most of the revenue.

“We are the only company at our scale that is still a private company, so we have had a lot of investor attention in the last year,” Reddit chief executive Steve Huffman told CNBC.

News of Tencent buying into the popular social news website, which is banned in China, prompted concerns by some users that the platform could be vulnerable to the kind of online censorship that takes place in that country.

Reddit users protested, some posting pictures known to be banned in China, such as cartoon character “Winnie the Pooh.”


A “Pooh” picture voted to near the top of the Reddit home page bore the caption: “Since Reddit took a $150 million investment from Chinese Censorship company Tencent, please welcome our leader President Xi.”

Images of the storybook bear were reportedly banned online in China after bloggers used them to represent President Xi Jinping in posts.

Reddit was co-founded by Alexis Ohanian, husband of tennis superstar Serena Williams. Reddit is ranked among the most visited US websites, and has more than 138,000 “communities” for discussions on various topics.

The site boasts that, on average, more than 330 million people use it each month, contending that half of those users range in age from 18 to 24 years old.


Reddit is also known for ask-me-anything (AMA) sessions with well-known people such as Microsoft co-founder Bill Gates and former US president Barack Obama.

Tencent has invested in a broad array of companies, including Tesla, Snapchat-parent Snap and Epic Games — the maker of popular video game “Fortnite.” /ee

source: technology.inquirer.net

3 Things To Know About Mortgages For Overseas Properties

There are many good reasons to invest in property overseas. You may want to use the property as a vacation rental or as a vacation home for yourself and your family. Your child may be going to university overseas, and you may be thinking about buying a property as an investment where they are studying. Getting a mortgage for an overseas property is different than getting a mortgage in your country of residence, however, and there are some things to consider.

1. Hire an Expert

Even if you are experienced in buying real estate, the rules are often quite different when it comes to buying overseas. The best thing to do would be to find a local real estate agent in the country where you want to buy, who is experienced when it comes to dealing with overseas buyers. By working with a local agent, you can better understand the local laws and regulations when it comes to home purchasing and financing.

2. Getting Financing is Challenging

Obtaining a mortgage for an overseas property can be challenging. If you have a credit score from a foreign country, it won’t be counted overseas. You will have to obtain a mortgage from a bank in the country you are purchasing in, and the application process will be similar to that in your home country. You will still have to prove income and provide all other supporting documents. As a foreign buyer, you will likely be unable to get low mortgage rates.

Experts recommend you buy your first couple properties overseas outright, as it is unlikely you’ll be able to get a loan. Once you have a bit of a portfolio overseas, it will be easier to get a loan for future purchases.

3. You Can Leverage Your Current Property

While it’s difficult to get a mortgage from a foreign bank, some homeowners use the equity on their current residence to finance a purchase overseas. Speak to a mortgage broker about obtaining a home equity loan or refinancing in order to finance an overseas’ property. Refinancing can be tricky, so it’s best to seek the advice of a professional.

Buying a home overseas can be very rewarding. If you choose to use it as a holiday rental, you can make a good income. If you are moving overseas yourself, it’s a great investment and a good way to diversify your portfolio. While it is more difficult to get a mortgage and to get low mortgage rates overseas, it isn’t impossible. Of course, your ability to find low mortgage rates will differ depending on where you are buying. If you are considering buying a property overseas, contact one of our mortgage experts today for more information and advice!

source:  northwoodmortgage.com

Owning VS. Renting: Which Is Better For You?

It’s quite common to get frustrated when renting. After all, you’re paying often expensive rent each month, sometimes even putting work into the property, and while it does cover your accommodation, once you move out you’ve got nothing to show for it. If you own your home however, your monthly mortgage payments are similar to paying rent except they are going directly towards your own home: your own investment. Once you own your home outright, it’s a huge asset, especially in a city with such a high and competitive real estate market.

 Many people, if financially able, would choose owning a home as the money they put into accommodation goes directly into the property, their own investment. There are, however, considerations to take into account whether renting or owning. Depending on your lifestyle, owning may not be right for you even if you do have the cash for a down payment.

In this article, we’ll take a quick look at some of the pros and cons of owning versus renting.

Owning

Advantages to owning a home include:

    Owning a home gives you a sense of stability and of ownership. Many people grow up imagining they will one day own property. If you want to settle and start a family, owning a home can give you the stability to do so.

    Buying a house is likely the largest purchase you will ever make. While it takes time to pay off a mortgage, a home is a good investment, one which you can also keep in the family should you choose.

    If you own, you have more freedom when it comes to renovations and home improvements. No more dealing with potentially difficult landlords.

    There are certain tax deductions you can make as a homeowner, such as deductions on property tax and on interest paid.

Potential disadvantages include:

    You will have to spend more money. Even though your mortgage payments may be the same or less than paying rent, there are still considerable expenses, especially in the first few years of home ownership. This can include such expenses as utilities, insurance, and property tax. Make sure you fully understand the expenses before you buy. A mortgage broker can help advise you in that regard.

    Having a mortgage and owning a home is a big commitment, both financially and timewise. If you plan on moving around or travelling a lot, homeownership may not be right for you.

Renting

Advantages of renting property include:

    Renting can give you more flexibility. Usually after a year long lease, leases change to month-to-month which can give you the flexibility you need if you are unsure of your future living situation.

    As a renter, you will not have to pay for many repairs as those fall under the responsibility of the landlord.

    Rent is often cheaper than a mortgage, and you don’t pay property tax.

While disadvantages include:

    You must obey the landlord’s rules, which may, for instance, forbid pets.
    There are limitations on the appearance of the home and home decor.
    Zero return on your investment.

If you are considering making the move from renting to owning, consult a mortgage broker today. A mortgage broker can help you understand the market and assess your financial situation to help you determine if owning is right for you. Contact one of our mortgage professionals today to set up a consultation!

source: northwoodmortgage.com

Mortgage Insurance Vs Life Insurance

People often see their homes as their biggest investment, and naturally they want to protect that investment. On the other hand, people also worry about what would happen to their loved ones if they were no longer around to care for them. For both of these situations, there is life insurance and mortgage insurance. Both types of insurance offer benefits, but they differ in their nature and eligibility criteria. If you are considering one or both forms of insurance, here are some things that you need to be aware of before making a decision.

Life Insurance

Life insurance is a smart move for many people who have dependents. However, life insurance does not often come without a rigorous application process. Age is a critical factor in the monthly premium you pay and you often have to undergo a medical exam. If you have had any previous complications, then that could work against you. In short, the younger and healthier you are, the better your chances of getting a good premium. However, for those who don’t qualify for life insurance but still want to protect their assets, they have to look at other options.

Mortgage Insurance

Mortgage insurance is usually offered by the same lender providing you with the mortgage. This form of insurance covers your monthly mortgage payments in case you can‘t pay them with your regular income. While mortgage insurance is much easier to secure than life insurance, there is a higher cost. Also, while the premiums don’t change as time goes by, the benefits are reduced as you pay down your mortgage. If you have trouble qualifying for life insurance but still want some form of protection, then mortgage insurance might be a more practical option. However, if you change your lender, your policy will also change.

Which Is Better?

Choosing between mortgage insurance and life insurance depends on your situation. If you know that you may not qualify for life insurance then mortgage insurance may be the next best thing. That said, there are many life insurance plans that offer flexibility and require little medical examination (often just a short questionnaire). So it is best to fully explore your options.

At Northwood Mortgage, our agents can help you find the best solution for your needs. Contact us today for a free consultation and let us see how we can help you protect your assets and your loved ones.

source: northwoodmortgage.com

Apple stock surges after Warren Buffett’s hefty investment

Warren Buffet has been wary of making tech-related investments in the past because he reportedly doesn’t understand it, but apparently, the octogenarian investment guru has had a change of heart.

Berkshire Hathaway Inc (BH), the conglomerate run by Buffett, disclosed in a regulatory filing on Monday (Tuesday in Manila) that it purchased more than 9.8 million shares in Apple during the first quarter.

The move marks BH’s first investment with Apple, which has been steadily adding to its stake in IBM (International Business Machines) in recent years, as per reports from stock market website, MarketWatch.

Shortly after the purchase, the California tech giant’s stock experienced a 2 percent surge during premarket trades.

BH acquired its position at an average price of about $109 a share, the report said, while the value of the original investment,  $1.1 billion, has already dropped significantly due to the slow demand for iPhones in recent months.

The company also disclosed that it had sold over 99 percent of its holdings in Procter & Gamble, retaining just 315K shares in the multinational product manufacturer, to make room for the Apple investment.

BH also reportedly thinned its holdings of multi-national retail corporation, Walmart by 1.7%

Apple’s stock price, meanwhile, has since fallen to just above $90, meaning that Berkshire’s stake in Apple is now worth about $888 million.

BH is also reportedly eyeing  a takeover bid for the core assets of another struggling Internet company, Yahoo. Khristian Ibarrola

source: business.inquirer.net

How To Buy Stock Online – Your Ultimate Guide

If you would like to buy stock online, then you’re making a smart move – because more and more traders are using the Internet to place their trades conveniently and easily by using an online brokerage service. In this guide, we are going to share some further information on the subject of purchasing stock online, so by the time you have finished reading, you will know which steps to take next.

To begin with, the most efficient way to buy stock online is to simply use an online broker, but it’s important to remember that not all of these services are created equally. In general, they come with various features and functions that you need to understand before you settle on a specific platform.

In particular, you need to pay close attention to the commission that’s involved when using an online brokerage to trade stock for you. In most cases, this commission will be a percentage of the stock purchase price, but there will be a variety of different deals available if you investigate further.

Next, it’s well worth finding a stockbroker who has expert advice and knowledge to share – because this goes a long way towards making sure you purchase stock that will give you a respectable return on your investment rather than become a liability. Several of the top online stockbroker services come with a range of educational and training materials, and this information is very useful – especially if you are a beginner.

Something else you need to consider when it comes to purchasing stock online is whether you want to use a full-service solution. The key benefit of using full-service brokers is that you will not need to follow the markets yourself, and you can trust the experience and knowledge of your broker to make savvy trading decisions for you.

Of course, this involves a great deal of trust, and there will usually be no guarantees of a return on your investment –so you will need to do plenty of research into the overall track record of any full-service broker before you part with your cash.

However, many people greatly appreciate the convenience offered by a full-service solution, and this is often an effective way to invest part of a retirement fund or a cash windfall that you want to make the most out of. By placing these funds into the hands of a skilled broker, you will be able to secure your financial investment for the long term, and possibly earn an excellent profit in the process.

Yet another option you may be interested in is using a discount broker. While these services do not require such a hands-on experience, they can certainly save you quite a bit of money – so many people refer them for this reason alone.

If you already have expert knowledge in the stock market and know exactly which stocks you want to buy and sell, then using a discount broker who charges a minor fee will usually be a good decision. In most cases, these services are best for people who already have a great deal of experience, so they do not need the extra handholding that comes with using a full-service broker.

Finally, it’s wise to devise a system for buying and selling your stocks, rather than doing it in a careless and haphazard manner. Many people use a stock pick service which gives them expert picking advice, and this type of assistance can be a huge boon to your stock trading efforts.

Conclusion

Overall, learning how to buy stock online is a relatively straightforward process – but the hard part comes with knowing which stocks to buy and when to sell them. However, the first step is to find a quality broker, and the information in this guide should guide you towards a savvy decision.

source: stocktrading4beginners.info

Google invests in Chinese artificial intelligence firm

Google has taken a stake in a Chinese artificial intelligence startup which is aiming to develop smart wearable technologies, the companies said Tuesday.

The amount on investment in Mobvoi was not disclosed.

But the companies said that the firm, created by a former Google researcher, has now raised $75 million in equity financing.

Google will lead the latest round and hold a minority stake, according to the statement. The move comes five years after Google's highly contentious exit from its Chinese operations over censorship.

"Mobvoi is very excited to welcome Google as an investor as both companies share a long-term view on technologies and are dedicated to deliver an uncompromising user experience through emerging technologies," said Mobvoi founder Zhifei Li.

The new funding is aimed at helping develop "a new generation of wearable experiences and explore consumer-oriented products for the in-vehicle environment" as well as exploring robotics technologies.

“Mobvoi has developed some very unique speech and natural language processing technologies,” said Don Harrison, vice president of corporate development at Google Inc.

"We were impressed by their innovative approach and the early traction that they've seen, which is why we're pleased to support them with this investment."

The two firms announced an agreement earlier this year to bring the Google Android Wear operating system to China. —Agence France-Presse

source: gmanetwork.com

Alibaba in funding talks with India's Snapdeal

SHANGHAI/MUMBAI – Alibaba is in talks with Indian online marketplace Snapdeal over a potential cash investment, a source familiar with the negotiations said, in what would be the Chinese e-commerce giant's first direct investment in India.

Snapdeal competes in India with bigger rivals Flipkart.com and Amazon.com, and media reports have said it is seeking $1 billion in its latest funding round to fuel growth.

In October last year, Snapdeal secured a $627 million investment from Japan's Softbank, itself an early backer of Alibaba.

The source, who declined to be named as talks are not public, said on Wednesday that negotiations were "ongoing," confirming Indian media reports. The source said Alibaba was "looking, but there’s still no deal."

A second source familiar with the matter confirmed the two sides had spoken in the past and said investor interest was "high," but gave no detail on any current negotiations.

Snapdeal declined to comment.

Alibaba has been eyeing India for months, but has yet to invest directly in the e-commerce space. Ant Financial, an affiliate of Alibaba controlled by senior Alibaba executives, bought a 25 percent stake in the Indian payment services provider behind Paytm last month. – Reuters

Dollar nurses losses as euro rallies, commodity currencies surge

SYDNEY/TOKYO  – The dollar nursed broad losses on Wednesday, having suffered its biggest one-day fall in over a year as it came under pressure from many fronts amid oil-fueled gains by commodity currencies.

Buyers snapped up commodity currencies as the oil market extended its recovery and copper prices also surged.

Elsewhere in the market, the euro recovered on hopes that Greece may yet secure a new debt deal.

The euro's rally from Tuesday's low of $1.1312 went as far as $1.1534. It last traded at $1.1470, well off an 11-year trough of $1.1098 set last week.

That contributed to a 0.9 percent slide in the dollar index, its biggest one-day fall since October, 2013. The index last traded at 93.758 after stooping to 93.25 overnight.

In a development that supported the battered euro, Greek Prime Minister Alexis Tsipras sought to reassure international partners that Athens did not want to create divisions in Europe with its call for a new debt accord and said he was open to listening to alternative proposals.

Yet, there was still plenty of uncertainty whether Tsipras will be successful, suggesting the rally in the euro was more about positioning rather than any change in fundamentals, traders said.

Commodity currencies remained in the spotlight with crude oil up about 19 percent over the past four sessions, while copper saw its biggest one-day gain since July 2013. Oil's recovery helped spur a global rally in risk assets.

"It feels a little strange seeing crude oil and equities move in tandem, as higher oil under normal circumstances would slow economic growth. But we just have to go with the flow, and brace for 'risk on' when oil goes up," said Bart Wakabayashi, head of forex at State Street in Tokyo.

"Currencies appear to be at the whim of the oil market. For now oil has become an indicator of risk appetite," he said.

The Australian dollar hovered around 78 US cents, staging an impressive turnaround from a slump to a six year trough of $0.7627.

The short-covering rally followed the Aussie's slump on Tuesday, when the Reserve Bank of Australia (RBA) cut interest rates to a record low 2.25 percent.

The Canadian dollar jumped for a second session to two-week highs of C$1.2353 per US dollar. It last traded at C$1.2428.

Sterling climbed to $1.5198, pulling further away from a near 19-month low of $1.4952 set last month. The British currency had posted its best session in nearly 10 months on Tuesday.

Against the yen, the dollar fared better as US Treasury yields jumped and a rally by Tokyo shares lessened the allure of the safe-haven Japanese currency. The greenback was rose 0.3 percent to 117.95, having recovered from a low of 116.87.

Traders said the dollar's recent rally to multi-year highs against the yen and euro could falter as doubts emerge over whether the Federal Reserve will raise interest rates this year.

"When most central banks across developed and emerging economies are in easing mode, the assumption that the Federal Reserve will raise rates this year is starting to look questionable," said David Absolon, Investment Director at Heartwood Investment Management.

"For Fed policymakers, the external environment and the actions of other central banks are becoming increasingly hard to ignore," he wrote in a note to clients. – Reuters

How to Invest in Real Estate

Real estate is an attractive investment, and it’s getting more attractive all the time.

Land is a finite resource, but Canada’s population is increasing. The basic laws of supply and demand mean that land, in general, will become more valuable in the future.

Real estate investment has also kicked into high gear recently as low mortgage rates inspire many to buy additional investment properties.

Although attractive, real estate investment is complicated. Here are several different approaches to entering the world of real estate investment:

          1. House Flipping

Many people first become involved in the real estate market through house-flipping. This is when you buy a house when the market is low, renovating it, and selling it when the market is high again.

An advantage of this approach is the ability to live in a house while waiting for its value to mature. This option carries one major risk: the cost of renovations might exceed the profit on the house. Make sure you understand what kinds of repairs will be needed before buying a house to flip.
  
2. Rental Properties

Buying property to rent has a lesser level of risk. As long as the rent can cover your mortgage interest, taxes, and maintenance, you will not lose money by holding a rental property. All you have to do is continue to pay down the principal and wait for a good time to sell.

Although these benefits are tempting, rental properties are hampered by tighter mortgage restrictions. To purchase a rental property on mortgage, you will need to provide at least 20% of the value as a down payment. Another disadvantage is a continuing time commitment of finding tenants, collecting rent, and arranging for maintenance.
  
3. Commercial Mortgages

For a less demanding rental property, consider using a commercial mortgage to buy storefront or office space.

This has all the high benefits and low risks of rental property, with (usually) much less work. Commercial mortgages, unfortunately, require more stringent appraisals, including environmental assessments. All these appraisals can cost a lot of fees and take a lot of work.

The typical value of a commercial mortgage, often over a million dollars, can also dissuade potential buyers.

4. Real Estate Investment Trusts

Real Estate Investment Trusts (REITS) are a solution for those who want to invest in real estate, but lack the capital to use as a down payment on large properties.


A REIT is run as a corporation that collectively acquires and sells property. REITs typically pay out over 90% of their rental profits directly to investors, making them far more profitable than most investment groups.


source: northwoodmortgage.com

Benefits of Paying off your Mortgage Early

Even when you get the best deal possible on your mortgage, having those monthly payments loom over your head can be enough to stress out even the most financially sound.

So what happens if you find yourself in a situation with more money than you expected at this point in your life? Should you invest it, spend it, or pay off your mortgage?

Early mortgage repayment is not for everyone, or every situation. However, if you can afford early repayment, there are several benefits for your life and financial situation.

1. 1. Net Income Increase
A common reason why people are delaying their repayments is the low interest rate on their mortgage. When your rate is only slightly above inflation, it’s extremely attractive to keep refinancing it indefinitely and use that money for investing.

There’s one problem though: the reason that mortgage rates are so low is because investment returns in general are low.

Investors across the world are finding that there are few profitable places to put their money these days. Even riskier investments often barely return enough to keep step with inflation.

Take a good look at your investments. How many of them produce a return equal to the cost of your mortgage, at no risk? If you look at your mortgage repayment as a form of investment, you might see that putting money into it has a greater and more reliable effect on your income than your investments.


2. 2. Fewer Fees
Refinancing a mortgage requires a payment of closing fees. Although refinancing at a lower rate can be attractive, the fees add up over a lifetime.


3. 3. Simple Finances
A general rule in life is that more investments means more work. Investing in property, stocks, or even RRSPs can eat up your time by forcing you to go to meetings, watch the markets, and manage your portfolio.

Paying your mortgage off can increase your income and free up your time.


4. 4. Payment Freedom
Changing careers while under a mortgage is extremely stressful. It is difficult to risk striking out on your own when you have debt to service. Freeing yourself of monthly payments can give you the freedom to pursue your dreams.

Some of these benefits are financial, some are psychological. Both types can greatly increase your quality of life.

source: northwoodmortgage.com

S&P gives PHL an investment grade rating

The Philippines on Thursday received its second investment grade rating, this time from debt-watcher Standard & Poor's Ratings Services, lending credence to an earlier upgrade from Fitch Ratings last March, and strengthening the perception that the country has truly turned into a well-managed economy.

"The upgrade on the Philippines reflects a strengthening external profile, moderating inflation, and the government's declining reliance on foreign currency debt," Standard & Poor's credit analyst Agost Benard noted in an e-mailed statement to media outlets.

“The outlook is stable,” the debt-watcher noted, signifying the rating is not likely to change in the next 18 months.

S&P is the second debt-watcher to give the country an investment grade after Fitch Ratings raised the country's sovereign rating last March 27.

In prasing the latest upgrade, Malacañang said the government can now borrow for less in financing for hospitals, schools, and other vital structural improvements that benefit Filipinos.

"It is further indicative of sustained confidence in the Philippine economy: of our collective resilience, optimism, and growing potential, amidst global economic uncertainty, borne not just on the shoulders of discipline and prudence that has marked the economic policies of the Aquino administration, but also on the hard work and dedication of the Filipino people," Malacañang noted.

Bank of the Philippine Islands economist Emilio Neri Jr. said the latest investment grade rating will result in more money coming into financial markets.

"Markets will pose gains as some fund managers follow indices that only include countries with investment grade rating. Now, these fund managers that were waiting for confirmation will try to get a hold of some Philippine assets—equities, bonds, local and foreign currency issues both by corporations and the sovereign government," he told GMA News Online.

An investment grade rating helps strengthen industries that in turn create more jobs, but the Philippines must work on investment hurdles to fully seize the opportunity, Neri noted. "The right investments in the real economy usually follow an investment grade rating.

“Now, it's a challenge for both the government and private sector that the Philippines will not become an exception to the rule," he added.

An investment grade rating lowers the cost of government and private sector borrowings, which could lead to easier funding for investments. It stokes investor confidence in the Philippines supports the assessment that the country has strong macroeconomic fundamentals and the capacity to pay-off debts.

Inflation remained within the central bank's target and is expected to settle at 3.2 percent this year unchanged from last year.

'Brightest prospects globally'

"We expect the country to move into a near-balanced external position because of persistent current account surpluses, in which large net transfers from Filipinos working abroad more than offset ongoing trade deficits," Benard also said.

In a separate statement, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the latest upgrade "undoubtedly cements the Philippines’ status as an economy with one of the brightest prospects globally."

"With our investment grade rating, we are more confident that these inflows, particularly of more FDIs (foreign direct investments), will swing towards increasing the country’s productive capacity, thereby generating more employment and higher incomes," he added.

Fiscal consolidation has reduced government debt to a projected 47 percent of gross domestic product this year, S&P noted.

The debt-watcher noted the past and present administration's initiatives toward a better fiscal position.  "The current and previous administrations improved fiscal flexibility through restraining expenditures, reducing the share of foreign currency debt, deepening domestic capital markets, and more recently through modest revenue gains," it said.

S&P, however, said income levels in the country remain low compared to its peer neighbors int eh region.

"The Philippine economy's low income level remains a key rating constraint," said S&P, noting that the Philippines per capita income is projected at $2,850 in 2013 which "is below that of most similarly rated sovereigns."

"I would like to thank Standard and Poor's for their upgrade of the Philippines to Investment Grade rating, from BB+ to BBB- with a stable outlook, today," Finance Secretary Cesar Purisima said in a separate statement.

On receiving news of the announcement, Finance Secretary Cesar Purisima thanked the agency for the upgrade.

"We are very pleased that S&P, along with Fitch, has also now affirmed the Philippines' strong economic and fiscal gains," Purisima said in another statement, adding that the investment grade rating "is another resounding vote of confidence on the Philippines." — VS, GMA News

source: gmanetwork.com

Accenture Pledges Big Investment To Develop Cloud

Accenture says it will pony up to put its future in the cloud.

The tech consulting and outsourcing services company on Friday said it plans to spend more than $400 million to develop cloud-computing capabilities over the next 2.5 years.

Accenture is the latest of a long line of technology companies — including Oracle , SAP and Cisco Systems  — scrambling to put its efforts into the cloud, a system for storing and accessing data over the Internet "cloud."

The company is looking to boost growth after posting mixed results last quarter, as IBD reported.

 

 By 2016, global revenue from cloud services will reach $98 billion, up 145% from 2012, says market tracker IDC.

Accenture's Cloud Platform, which it officially launched Friday, is already in use in 200 projects to help customers move their operations to the cloud, Jack Sepple, global senior managing director of Accenture's cloud unit, said in the company's press release.

"We foresee the growing use of public cloud services and are uniquely positioned to offer the best of breed from a variety of vendors," he said. "We are committed to moving our extensive portfolio of cloud offerings, broad ecosystem of alliance relationships, and large global client base to the cloud in all forms — public, private and hybrid."


Accenture's shares were down a fraction in late trading in the stock market today.

source:  news.investors.com

8 Mistakes that Will Prevent Your Home from Selling

It’s a challenging market for home sellers right now. Buyers have a lot of options—and they don’t have to buy what you’re selling. Your house is likely just one located in a sea of for-sale signs, so you can’t be sloppy about putting it on the market.

Luckily, we’ve rounded up the dos and don’ts that will help you collect thousands (if not hundreds of thousands!) for your place.







1. Don’t … ask for too much money.

Yes, you know what you paid for the house. But that doesn’t mean that it’s still worth that amount—or that it’s appreciated in value since you bought it. “Your house is only worth what the market is willing to pay you,” says certified financial planner Ellen Derrick of LearnVest Planning Services, who has bought and sold at least eight homes, including investment properties. “It doesn’t matter what’s in it. And it doesn’t matter what your mortgage is.” Your realtor has an eye on the market and knows what kind of prices homes—just like yours—are garnering now. Pricing your home too high will discourage interested parties from making an offer, and your property could sit for months, which isn’t your goal.

What to do: Have a few realtors give you a price on the home (or get a comparative market analysis), and—this is key—don’t ignore them. Keep in mind that even if you’ve made pricey improvements to the home (granite countertops, stainless steel appliances), you may not get your money back if you’re the only home on the block with such upgrades. If comparable kitchens in the neighborhood don’t have similar upgrades, buyers aren’t expecting fancy perks in yours, and may not be willing to pony up for the difference.

2. Don’t … skip the marketing.

You may think that all you have to do is take one photo of the house, stick a “For Sale” sign in your yard and buyers will come pouring in the door. Au contraire. “The only way to guarantee that you’re going to get the highest price for the house is to use all of the marketing options available to you,” says Holly Mellstrom, a realtor in Pelham, NY. “This means Internet advertising, 30 pictures of your house, public open houses and even postcards.” The more people who see your house, the better your chances are of selling it. In an age when buyers start their searches online, counting on drive-bys and word of mouth isn’t enough anymore.

What to do: Don’t wait until the last minute to notify a realtor that your house is for sale. If you can, give her at least a month of lead time, so she can research comparable homes and set a good price. “Give them time to book their favorite professional photographer,” Mellstrom says. “And give them time to photograph your house on a day the sun is out.” In fact, if you live in a seasonal area, and you know that you’re going to put the house on the market in February, have photos taken in September, when the grass is still green and the trees have leaves.

3. Don’t … go it alone, unless you know what you’re doing.

If you’ve bought and sold half a dozen homes of your own or you live in a sought-after neighborhood where they sell in two days, you might be able to pull off a For Sale By Owner. If you aren’t a seasoned pro, however, let a professional take the reins. “Some people don’t buy and sell houses more than once or twice in a lifetime, and there’s a lot of money at stake,” Mellstrom says. “And there are so many disclosure laws now. Depending on the laws in your state, you’re really accepting some liability by trying to sell it yourself, unless you have a friend or an attorney who can guide you through the process.” A realtor also knows what’s selling around you, and for what price. She can tell you whether an offer is reasonable, and help you negotiate smartly. Plus, you may not save as much as you think in the end. “People who buy For Sale By Owner houses automatically discount the price they’re willing to offer because there is no realtor involved,” Mellstrom says.

What to do: If you can, get a realtor recommendation from a friend or colleague. Check references, conduct interviews and go with someone with a proven track record.

4. Don’t … neglect to fix things that are broken.

If sellers walk through your house and spot a handful of items that need immediate repair, they’re going to wonder how well you’ve maintained the things they can’t see. The entry way is a big tip-off. Got a loose hand rail on the steps, sagging screen door or jiggly door knob? Fix them. Clear your gutters, patch holes in your walls and address dripping faucets.

What to do: Do a walk-through of your own home, pretending that you’re seeing it for the first time. What things have you always meant to fix? Now is the time. Spend a few weekends dealing with all of those niggling projects to get your home in show-worthy shape.

5. Don’t … get emotionally involved.
Yes, it’s your house. Yes, you sweated blood and tears to get it just the way you wanted it. But, no, that does not make it someone else’s “perfect,” particularly when you’ve made some unique decorating decisions. You want the space to look as neutral as possible, so buyers can envision themselves in the space. So even if those teal walls in the bedroom look knock-out great with your duvet, they probably won’t match anyone else’s things. Let go of the features you love, and make it a house most people could love—and that might mean painting all of the walls a soft, neutral color. “My office at home is a robin’s egg blue,” Derrick says. “But if we get ready to sell that house, you can bet I’m repainting it.”

What to do: Have a realtor walk through your home, and when she tells you what you’ll need to change to make it marketable, listen to her. Start thinking about your house as a commodity, not an extension of your identity. If buyers don’t love it, it’s not a personal insult. It’s simply a deal that didn’t work out.

6. Don’t … leave your stuff everywhere.

You want buyers to feel like they could move into your house tomorrow—with their things. And your collectible tchotchkes, photos and utility bills make the space feel a little too personal. “That first impression is really important, and if they’re greeted with a huge photograph of you on your wedding day 25 years ago over the fireplace, that’s really distracting,” Mellstrom says. “It sends the message to the buyer that ‘This is my house, not your house.’”

What to do: Before you put the home on the market, get a few boxes and grab every extraneous thing you see: photos, knick-knacks, books. If it helps, take a few pictures of each room, and try to view them through a buyer’s eyes. What could you remove from each room to make the space feel bigger? “You want it to look like a hotel room,” Derrick says. “Hotel rooms look comfortable, but they don’t look like they’re somebody else’s comfortable.” Also? Don’t hang out at showings. While you may want to tell prospective buyers about all of the things you’ve done to the house, it’s best to leave them be. If there’s some information you think is important for them to know, leave a flyer on the kitchen counter.

7. Don’t … get offended by a lowball offer.

Just because someone came in with a really low bid is no reason to walk off in a huff. Now’s your chance to negotiate. “Buyers are trying to buy your house for the lowest price possible,” Mellstrom says. “Don’t blow them off. They might love your house. You can’t blame them for trying.” In other words, it’s not personal, and it’s not a slam on your housekeeping. It’s a business transaction.

What to do: Come back with a counteroffer. Typically, most buyers will come back with a second offer, which is a better indication of what they’re really willing to pay.

8. Don’t … lose a sale over something stupid.

It’s possible to get 99% of the way through a home sale, only to stall out at the end over a minor detail. Don’t be that seller. “I’ve seen people throw away getting a $450,000 house sold over somebody wanting to take the mantle instead of leaving the mantle over the fireplace,” Derrick says.

What to do: Unless it’s an heirloom that’s been in your family for generations, remember that you can probably find another one—but you may not find another buyer at that price. To be safe, if there are things you’re feeling like you can’t live without, such as the curtains you found at a crazy flea market or the light fixture you discovered at an antiques store, replace them with something else before you show the house.

source: foxbusiness.com

11 Common Investment Mistakes To Avoid While Investing In Stocks

There is only one rule to be successful while investing in stocks and that is “to not lose money!” Despite the information overload these days, people still make mistakes investing in stocks and lose money. I am not an exception in this case as I too made all of the mistakes that I have listed below, at one time or another, while investing in stocks earlier in my investment life. I am sharing here those experiences so that somebody else could learn from my mistakes. So here are those 11 common investment mistakes to avoid while investing in stocks.

Borrowing to Invest in Stock Markets

 

We hear success stories about making easy money in the stock markets from our relatives, friends, stock broker etc. Often we fail to know that only success stories are propagandized and failure stories deliberately have been hidden from us! By the time we hear those success stories, we might have already invested our spare cash in some other assets like real estate, gold etc. Greed spares none! We become enthused. To get the seed money, we would either pledge those assets or would borrow new unsecured debt. To be successful in the stock market, we need to have a long-term view and some cash that doesn’t need to service debt, money that we do not need for at least the next five or ten years. If we borrow to invest, interest adds up monthly to our investment costs. So we will be investing under a compulsion to find more returns than what we pay out as interest. That drags down our chances of success. Ultimately we would end up making only our lender rich!

Investing in Startups and IPOs

 

In order to ascertain the investment worthiness and to arrive at a rational investment decision based on some conclusions, we should look for a business or a company that has at least withstood one economic cycle (business cycle). An economic cycle is usually 8 to 11 years long. Based on how the company or the business withstood tough times of an economic cycle, we make an assumption that it will withstand in the same manner at tough times down the lane in the next 5 or 10 years. Fragile companies and business ideas hardly survive an economic cycle and wither away in a matter of years. Eg., the Internet companies of the 1990s that went bust along with the dot com bubble. So any company without a history or track record is undoubtedly not investment worthy howsoever brilliant the business idea or marvelous the company is. To preserve our capital, it is better to go for OPOs (old public offering) at a discounted price than going for IPOs (initial public offering) or startups.

Heeding to Advices, Tips, and Stock Market Predictions

 

Investing heeding to the stock tips, advices, and stock market predictions is the next big mistake that most of us make. You get a ton of them; from your stock broker, on the Internet, in the dailies, magazines, TVs etc. Never rely on such stock market predictions to invest your money. Heeding to those stock tips outright, even if the information is from paid sources, will rip you off your money because those who make those predictions, those who propagate those tips and advices have their own underlying vested interests in making you buy or sell. You should be able to substantiate yourself the reasons why you invest in a stock or why you sell a stock. Else, you would end up making only your stock broker rich.

Investing in Actively Managed Funds and Through Money Managers

 

Most people spend maximum time and effort earning money but hardly any time managing and growing it. If you want to become rich, you should be able to manage your money on your own. You should learn how to invest rather than depending on an investment manager (portfolio manager). It is not rocket science. All of us are not born intelligent, we learn by reading and listening. Why not apply that here too? If you still cannot find time to research about individual companies, investing in an index fund regularly over time should fetch you average market performance. The results still should be far better than an actively managed fund run by the so called pundits who eat 2% a year of your funds as fees. If the fund managers have that secrets of making you rich, why not they themselves become rich using those secrets rather selling you the investment products? So have in mind that no one else could be a better money manager for your money rather than yourself. Find time and will to make it on your own. Do investments in the stock market on your own or you would end up making only your money manager rich.



 Looking to Time the Market


Another mistake that investors often make is trying to time the market. You either sit sucking the thumb expecting the market to fall more for you to start buying where as Mr. Market does the opposite or you end up selling too soon expecting the price to fall thereafter. Sometimes, people don’t sell at all even after the P/E having run into exorbitant numbers! I would sell my business if some potential buyer or if Mr. Market expresses interest to buy my business for an upfront payment of 40 or 50 years of profit. I buy and sell stocks as if I would buy or sell a business. Anytime is a good time to invest, as long as you are able to find a stock (business) that you believe is undervalued and you have the patience to sit tight. If the price falls below your purchase price, be greedy, try to buy more diverting all your cash flows! Time and markets wait for none. In the short term, the stock markets act like a voting machine where as in the long term, they act like a weighing machine. Only you need to identify when it is a voting machine and when it is a weighing machine.

Investing in a Company with Questionable Management Integrity

 

Investing in a company that has questionable management integrity is like giving your money to a thief for safekeeping. So the companies that care a damn about shareholder wealth maximization, minority shareholder interests, and labor interests are needed to be avoided to preserve your capital while investing in stocks. We have seen a lot of companies vanishing into air along with shareholder money. Honesty is a very expensive gift; don’t expect it from cheap people. If you are still compelled to invest in such companies, donate the money to charity rather than betting on thieves!

Buying into Turnaround Stories

 

Often you hear turnaround stories in the market but they may be the propaganda by those who are already trapped in the shares of those companies. These companies may end up without turning around at all. Transforming a multi-million or a multi-billion company is terribly difficult. Only exceptional people do it and failures are more common than success stories. So unless you have thorough evidence that the information is true to your satisfaction, investing in such turnaround stories will prove to be a blunder. Buy turnaround stories on proven results, not faith.

Investing in a Company That has no Competitive Advantage

 

Inflation adversely affects the purchasing power of consumers. If a company is finding it tough to pass on the rising costs to the consumers due to reasons like stiff competition, it is ought to wither away in due course. It is here where the competitive advantage of a company over the other companies in the same industry, a widening economic moat which the competitors are unable to break, comes to the advantage. Buying a company that has got no competitive advantage puts your capital at risk.

Investing in a Changing Technology Company

 

Technology is changing at a fast pace in today’s world. We are seeing personal computers and laptops giving way to tablets and smart phones. We saw phonograph records giving way to magnetic tape cassettes which in turn gave way to CDs and DVDs and now to pen drives. Same is with fat TVs to flat TVs, film photography to film-less photography. All these made a lot of companies go bust, belly up. Eg. The Gramophone Company, Kodak etc. Who knows what is in store for tomorrow? So why should we risk our money investing in an industry where the technology is constantly changing?

Investing in a Business Outside Your Circle of Competence

 

People get attracted to investing in glittery businesses that seem attractive from outside but fail to create wealth. For e.g., airline business. If you look at the airline stocks globally, they have little history of creating wealth for the shareholders. The net wealth creation in airline business since Orville Wright flew his first flight at Kittyhawk in 1903 has been next to zero. However, as I said earlier the glamour of the business keeps attracting new investors to set up airlines or to invest in existing airlines. It has evaporated capital over the past century like no other business but people still keep coming back to it and put fresh money in. So study the business model before investing in a company. Invest in a company that is within your circle of competence, invest in a simple business that you know the best rather than succumbing to the glitter and glamour surrounding a business.

Investing in a Debt Laden Company

 

Debt, especially huge, is a major concern both at an individual level as well as at a company level. It is like trying to run with your legs tied. If a company becomes solvent, creditors have utmost rights on the cash and assets of a company than the shareholders, though the money has the same value irrespective of whether it is brought in by the creditors or the shareholders! So investing in a heavily debt laden company is nothing but suicidal! Why should we want to risk our capital, hard saved money, investing in such a company?
Investment mistakes are abound and aplenty. Should you screen your stock pick for these common investing mistakes before you make an investment and buy it at half the price below its intrinsic value, undoubtedly you should be successful with your strategy investing in the stock markets. All these investment mistakes have made me prudent but with a cost. That doesn’t necessarily mean that you too should lose money to learn these lessons. Learn from the mistakes of others because you can’t live long enough to make them all yourselves!

source: mtherald.com

  

Goldman, Morgan Stanley to Pay $557M in Foreclosure-Abuse Settlement

Joining a broad settlement into alleged foreclosure abuse, Goldman Sachs (GS) and Morgan Stanley (MS) reached a deal on Wednesday to pay $557 million to help mortgage borrowers.










The agreement is tied to a federal investigation into deficient practices in mortgage loan servicing and foreclosure processing such as robo-signing.

The Federal Reserve said Goldman and Morgan Stanley agreed to pay $232 million in direct payments to eligible borrowers as well as $325 million in “other assistance,” which includes loan modifications and forgiveness of deficiency judgments.

The deal paves the way for compensation for more than 220,000 borrowers whose homes were foreclosed on in 2009 and 2010 with former subsidiaries of Goldman and Morgan Stanley.

Compensation for eligible borrowers is expected to range between hundreds of dollars to $125,000, depending on the servicer error.

Goldman Sachs and Morgan Stanley have since divested the mortgage-servicing businesses in question: Litton Loan Servicing and Saxon Mortgage Services, respectively.

The Fed said eligible borrowers can expect to be contacted by the end of March by a payment agent who will be appointed to administer the process. Borrowers won’t be required to sign a waiver of any legal claims they may have against their mortgage servicer in exchange for payment, the government said.

The news comes a week after the Fed and the Office of the Comptroller of the Currency reached a similar deal with a range of banks, including Bank of America (BAC), Citigroup (C), J.P. Morgan Chase (JPM), PNC (PNC), U.S. Bank (USB) and Wells Fargo (WFC).

Taking into account the agreement announced on Wednesday, the Fed said more than four million borrowers will now receive a total of $3.5 billion in cash compensation and an additional $5.5 billion for mortgage assistance.

The Fed said it is in talks to reach similar agreements with other mortgage servicers.

Shares of Goldman Sachs rallied 2.53% to $139.00 Wednesday morning amid enthusiasm for the company’s big fourth-quarter earnings beat, while Morgan Stanley gained 0.39% to $20.52.

source: foxbusiness.com

Facebook plans to raise $10.6B in mega IPO

SAN FRANCISCO—Facebook Inc. aims to raise about $10.6 billion in Silicon Valley's largest IPO, dwarfing the coming-out parties of tech companies like Google Inc. and granting the world's largest social network a market value close to Amazon.com's.

The eight-year-old social network that began as Mark Zuckerberg's Harvard dorm room project indicated an initial public offering price range of between $28 and $35 a share on Thursday, which would value the company at $77 billion to $96 billion.

The size of the IPO reflects the company's growth and bullish expectations about its money-making potential as a hub for everything from advertising to commerce.

"We certainly haven't ever seen a tech IPO on this grandiose a scale," said Lise Buyer, a principal with the IPO advisory firm Class V Group.

Buyer, who worked on Google's 2004 IPO, said the question about a company "that's already this big and that is raising this much money is how many of the glory days of growth are in the past versus how many are ahead."

Facebook stands to raise as much as $12 billion at the upper end of its planned range. If an over-allotment or "greenshoe" option is triggered, the company could sweep up a maximum of $13.6 billion, according to a Thursday prospectus.

Facebook is only getting about half, or $5.6 billion, of the estimated $10.6 billion that it would raise at the midpoint of its planned IPO range. About $4.9 billon will go to some existing shareholders.

Facebook's stock could begin trading as soon as May 18, according to a road show schedule obtained by Reuters. The offering's price range can be adjusted depending on Wall Street's response during the road show.

Investors are expected to flock to the highly anticipated IPO, although there have been growing concerns about the social network's longer-term growth and Zuckerberg's majority control.

Facebook will trade at 13 to 16 times the revenue that GreenCrest Capital analyst Max Wolff believes it will generate this year. By comparison, Google, the world's dominant Internet search engine, currently trades at 5.5 to 6 times expected 2012 revenue, he said.

Google's valuation was higher when it went public in 2004, though Facebook's IPO valuation is still higher than Google's was back then, Wolff noted.

But some observers said the rich premium was unlikely to deter investors.

"People are going to be very comfortable with this valuation," said Sam Schwerin of Millennium Technology Value Partners, which owns Facebook shares worth roughly $200 million. The firm is not selling in the IPO.

"A price range of $28 to $35 will be a relief to some people who are concerned that they may try to take the highest possible price because of high demand," he said.

"The amount being raised is noteworthy. Selling stockholders are raising about $5 billion in the IPO, which is a lot."

Facebook executives are due to hit the road on Monday, presenting their investment case to audiences. They will start in New York, go to other major cities such as Chicago and Boston, and end up on Facebook's home turf in Menlo Park, California, according to the schedule.

Zuckerberg is expected to participate in the two-week road show, a source has said, although chief operating officer Sheryl Sandberg and finance chief David Ebersman will lead the briefings.

Tantalizing Wall Street

Zuckerberg's involvement in the road show will be key for investors with concerns about Facebook's long-term strategy and money-making potential, said Brian Wieser, an analyst with Pivotal Research Group.

Zuckerberg's control of the company–which was underscored when he orchestrated the $1 billion acquisition of mobile app maker Instagram last month–means that investors need to "get comfortable" with the 27-year-old CEO, said Wieser.

Last week, Facebook reported its first quarter-to-quarter revenue slide in at least two years, a sign that the social network's sizzling growth may be cooling just as it prepares to go public. Some observers have also flagged the company's lack of revenue on mobile devices such as smartphones as an area of concern.

Dressed in a gray t-shirt and jeans, the copper-haired Zuckerberg appeared in a 31-minute road show video posted online on Thursday. In the video, Zuckerberg predicted that in five years almost every software app would be integrated with Facebook.

Facebook generated the lion's share of its $3.7 billion in revenue last year from online advertising. It also collects fees when consumers use its special Credits currency to purchase virtual goods in social games such as Zynga's Farmville. The company has said it may expand the use of its payment business beyond games.

Facebook–which plans to list its stock on the Nasdaq under the ticker "FB"–has long tantalized investors with the prospect of a mega IPO.

As a private company, shares of Facebook have traded briskly in secondary markets for the past couple of years, as investors sought to get a piece of the fast-growing company ahead of its expected IPO.

The IPO price range indicated in Facebook's filing on Thursday would value the company a hair below the level it has traded at in the secondary markets in recent months, with some trades valuing the company at slightly more than $100 billion.

But some investors think Facebook, which touts 900 million users worldwide, is setting itself a fairly conservative target.

"The price range may be tactical. They will likely walk the range up," Schwerin argued.

Facebook plans to sell 337.4 million shares, or 12.3 percent of the company, in the offering. The capital-raising target far outstrips big Internet IPOs that came before it. Google raised just shy of $2 billion in 2004, while last year Groupon tapped investors for $700 million and Zynga raked in $1 billion.

At the top end of the IPO range, Facebook would rival the market value of Amazon.com and Cisco Systems Inc., which are worth just over $100 billion, and surpass the combined market value of older technology companies Hewlett-Packard Co. and Dell Inc.

Among existing shareholders, the largest seller in the IPO will be venture capital firm Accel Partners, which will make about $1.2 billion assuming the shares sell at the $31.5 mid-point. Zuckerberg is selling the next largest chunk of shares, worth a little under $1 billion.

Facebook said that a "substantial majority" of the proceeds from Zuckerberg's stock sale will be used to satisfy taxes he will incur from exercising his options.

In its prospectus, Facebook said the "lock-up" period, during which employees cannot sell shares after the IPO, would range from 151 days to 181 days.

Facebook also added two new underwriters, including online broker E*Trade Securities. The broker caters to retail clients who some have speculated may try to pile into the IPO.

"No doubt Facebook doesn't want to upset the average mom and pop out there," said Craig Huber, research analyst, at independent research firm Huber Research Partners. —Reuters

source: gmanetwork.com