Altilio Works Closely With Y Mets
Obama Steps into Healthcare Melee
Ethics: Pentagon implementing smoking ban
Altilio shares his unique experience and what he did to win a highly acclaimed scholarship. See p. 7
President Obama spoke to Congress on Sept. 10, addressing his See p. 13 plans to reform the U.S.’s health care system.
A thrifty move for already tight government budgets or an injustice See p. 8 for selfless soldiers?
The Stillman Exchange
The Official Business Publication of Seton Hall University
TUESDAY, SEPTEMBER 15, 2009 - VOL. 6 NO. 1
Made possible by the generous support of the O’Brien Family
Retail Unravels As School Year Starts By Danielle Hudson Everybody loves to go back-toschool shopping, at least everyone except retail and sales analysts, who collectively are putting an end to a shopping spree on back-to-school stocks. Every year when July and August roll around, retailers look to post some of their biggest sales figures of the year from the back-to-school shopping rush. Although estimates are that consumer
spending for back-to-school related items will be better than last year, retailers still fear that the numbers will not reach those of two or even three years ago. Major corporations that supply clothing for teens, especially companies such as American Eagle Outfitters (NYSE: AEO), Abercrombie & Fitch (NYSE: ANF), and Gap Inc. (NYSE: GPS) have all reported sales declines, but that is not to say that all similar companies are in the same boat. Urban Outfitters (NASDAQ: URBN), for example, looks to be a hot stock for the back-to-school season. Also, other compa-
IDEX Money & Investing.............. 2 Stillman ews...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic ews..................... 13 International ews.............. 15 International Business........ 16 Photos courtesy of: T-Mobile, France Telecom, Hollister, Abercrombie & Fitch, and American Eagle Front cover image designed by: Christine Wotton The first undergraduate-published business newspaper in the nation
nies who not only offer clothing, but the essential back-to-school products such as paper, pencils, stationary, and computers, appear to be doing well enough to warrant a chance in portfolios. Although analysts have predicted the state of the economy to be better than last year’s school season, they still believe major retailers will see declines in their sales revenues for the back-to-school season.
Sales at Gap Inc., which owns and operates stores under the brand names of Banana Republic and Old Navy, saw a decrease of 3 percent compared to the 6.7 percent that analysts had predicted, while American Eagle Outfitters saw a decrease in sales of 7 percent compared to the 8.9 percent that was predicted. These declines may not be what these companies wish to see at this point in the year, but that is not taking into account the late September rush that could potentially drive sales forward. Many believe that the current decreases in sales are partly due to the fact
TV Blackouts Threaten FL Season for Fans By Anthony Crisci Is it possible that the time will come when a diehard football fan won’t be able to afford a ticket to a game, and will not even be able to watch the game on TV? Let’s face it, America is in a serious time of financial
that the summer job market was greatly impacted this year. Teens did not get the working opportunities that they have had in past summers, and therefore did not make nearly the same amount of money. With less spending by teens, clothing companies tailored towards high school audiences suffer. On the other hand, there are numerous stocks that appear to be on the rise during the back-to-school season. Many of these companies either reflect upon the up-
and-coming trends of today or are simply companies who supply the items that every student needs to be ready to head back to school. One company that looks great right now in particular is Urban Outfitters, which also operates under the Free People, Anthropologie, and Terrain brands. Each of these brands has become increasingly more popular in recent months due to the new fashion trends for the fall.
crisis, and many fans can’t find a way to go to a couple of live football games. The current recession is playing a huge part in this year’s NFL season. In 2008, only three teams suffered from blackouts on local channels. A blackout is normally caused by a game not being sold out 72 hours before kickoff and as a consequence the local channels of the game will not broadcast it. Last season, those three teams included the Lions, Raiders, and Rams, who all finished in the bottom of the league standings. Those teams combined for nine total blackouts.
European Heavyweights Team Up in British Cellular Battle By Tristan Hugo-Webb A proposed merger by two of Europe’s largest cell phone providers, Deutsche Telekom’s T-Mobile and France Telecom – owner of Orange – will create one “super” company in the highly competitive United Kingdom market. The deal is expected to be signed by November and will allow the
new company, which has yet to be named, to control around 37 percent of the market. This share will make it the largest telecommunications provider over Telefonica’s O2. However, the other UK cell phone providers have decided not to miss the call, and several unnamed companies have promised to ask the proper authorities to probe the merger. Within the European block, there are strict antitrust laws, preventing one company from becoming a monopoly on a certain market. There is a fear that this new merger will corner the cell phone market in the UK. However, mobile phone analyst Nigel Hawkins told the BBC that it was not unprecedented for a firm to have more than a third of a European country's mobile phone market: “If the deal goes ahead, then this merged firm, along with O2 and Vodafone, will have more than 90 percent of the UK market and there will be concern that there remains plenty of competition and that this position is not abused.”
Continued on page 5... The 2009 season is expected to see much worse conditions, with up to 12 teams possibly being blacked out. The Jacksonville Jaguars potentially face not having a single home game televised this year, which would already put the blackout number at eight. The NFL has a very strict blackout policy, and they seem to be sticking to it even with this harsh economic downturn. “There is no consideration being given to amending the blackout policy,” wrote NFL spokesman Brian McCarthy, in an e-mail to the Sports Business
Continued on page 4...
Journal. “The policy is important in supporting the ability of the clubs to sell tickets and keeping our games attractive as television programming with large crowds so we can keep all our games on free TV.” From a different perspective, not only will Jaguars fans, or any NFL fan for that matter, not be able to afford to purchase tickets for their favorite team’s games, but now they might not even be able to go home and enjoy the game on their 52-inch TV that they’ve been paying off for 14 months. Continued on page 11...
TUESDAY, SEPTEMBER 15, 2009
Money & Investing
Stillman Exchange Still-Frame
THE STILLMAN EXCHANGE
Poll Question: What company will end up acquiring Cadbury Candy?
real market insights by Kathryn Green A: The Hershey Company B: Kraft Foods Inc. C: estle SA D: o one E:Who cares, just make more candy!
• A five day strike of Jet Airways in India ended Sunday, after more than 800 cancelled flights while more than 450 employees called in “sick.” • FedEx raised its first quarter forecasts, signaling a resurgence in international trade that could indicate a recovery. • Dana Holding Corp, a holding company that had recent accounting troubles with the SEC, has settled without penalties or fines on fraudulent 2004 and 2005 reports.
• Forty-two year old Danny Pang, under fire from investigators for allegedly masterminding enormous securities fraud over the last few years, died early Saturday at a ewport Beach hospital.
Home sales in the ewark area rose 8.28% last quarter, fueled by a governmental tax credit and the lowered prices offered from foreclosures. Sales are still down across the board over 9%. Read more on page 3.
• Chinese tires are facing a 35 percent tariff in the United States, which could increase tire prices in coming months.
Two Weeks in Earnings
Earnings Play: Research in Motion, Inc.
Watch for Palm’s earnings call on September 17, which could foreshadow where Research in Motion reports its earnings shortly after. A successful quarter for Palm could see a drop-off from Research in Motion’s stock price (pictured above).
Thanks for the Warning, Bernie By Kyle Connell, Money and Investing Writer Remember a year ago when the Armageddon hit? Lehman suffered a pitiable end, Bear Sterns and AIG required extensive nursing to avoid similar fates, the housing market collapsed to nothing, and credit existed only in the sense that a word can. Yet, amidst that misery and sure felt depression, one man generously stood up to deflect the focus: Bernard L. Madoff. How selfless he acted in creating a scheme to distract the public from turmoil revealing his defrauding of $50 billion. As such a hero of the recession, certainly the public became curious as to how he could operate for the amount of time required to accrue such a balance. Naturally, he would have needed some help for such a large scale operation. Well finally, after almost a year has passed, through an Office of Inspector General report on August 31, the assistants to his production have been unmasked: the Securities and Exchange Commission. Since 1992, the SEC has been involved in saving Madoff’s Ponzi scheme
until the best moment— Administrator to feign last year’s recession. In ignorance on the topic and 1992, the SEC handled its credit that as a reason for first faux-ignorance task. not investigating Madoff. Under customer comEvading Markopolos plaint, the SEC investigatproved greater skill than ed investment firm necessary for the folks from Avellino & Bienes for Avellino & Bienes though. suspicion of operating a Markopolos came back in Ponzi scheme. 2001 with more evidence The firm had punching holes in Madoff’s invested all of its money buy-Fortune-500-stocksthrough Madoff, so the and-hedge-against-theSEC intelligently avoided Photo courtsey of the Y Times S&P-index strategy, showany investigation of ing that he had only three Madoff, by focusing nar- Was Bernard Madoff just asking to down months versus the rowly on Avellino & markets 26 in the same get caught, or was the SEC just trying not to catch him? Bienes, simply shutting period. Instead of feigned the firm down and allowignorance, they dismissed ing the continuation of Madoff’s operation him under the technicality that Madoff was in secrecy. not a registered investment advisor. Eight years later, a Boston In 2003, the SEC opened up anothaccountant named Harry Markopolos sub- er investigation upon receipt of another mitted a complaint questioning Madoff’s Ponzi complaint. Their resources concealoperations, noting his “returns were unat- ing the scheme for another five years tainable with his business strategy,” specifi- proved unmatchable, using inexperienced cally his “perfect-market timing ability.” In investigators to feign disbelief and skeptimeeting with Markopolos, it was necessary cism and the Ponzi accusation and investifor the SEC’s Boston Assistant District gate front running instead because of the
crew’s greater expertise in it. In 2004 and 2005, the most effective act of delaying the revelation of Madoff’s plan until 2008 occurred. When presented with enough evidence and a challenge to check with an independent third party to see if actual trades had been made, the investigation team ingeniously said it would have been too time-consuming to review the data they would have obtained. Only with their feigned ignorance and apathy could the SEC have successfully skived off the leakage of the scheme until a time best suitable for the nation, such as mass financial turmoil. Only they could ignore the lack of $8-10 billion of trading volume in the market; the fact Madoff’s strategy was not duplicable; the lack of correlation to overall equity markets for 10 years; and that his accounts were typically in cash at the close of every month. So congratulations SEC, you deserve the same accolades and laudation as the hero Bernie Madoff himself. Will the party get old after 150 years? Contact Kyle at firstname.lastname@example.org
All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.
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Money & Investing
M-I-C-K-E-Y’s New Economy By Bryan Murawski, Money & Investing Writer Mickey Mouse is on the move, and investors are finding it hard to ignore the rodent’s attack on a weak entertainment market. The Walt Disney Company (NYSE: DIS) is world renowned for its classic cartoon characters, movies, and great family theme parks. Now, as people are trying to lessen their spending in all of these areas, Disney is reminding the world that life can be fun, even during a recession. Recently, Disney has announced plans to re-release the popular “Toy Story”
Photo courtesy of Disney.com Disney is hoping that re-releases of old classics will help fuel a resurgence in the downtrodden entertainment industry.
series in 3D, as well as “Beauty and the Beast” in 3D, and Tim Burtons “Alice in Wonderland.” Disney has also announced on August 31, a possible acquisition of Marvel Entertainment (NYSE: MVL) for approximately $4 billion. Disney is hoping that these bets on old favorites will guide the company into new market opportunities. The Marvel Comics transaction will give Disney the rights to over 5000 Marvel characters and much more. This means you could soon see characters such as Captain America and Spiderman side by side with Mickey Mouse and other Disney characters in Disney theme parks around the country. Disney has always marketed more towards the younger families. With Marvel Entertainment, Disney has the ability to appeal to a wider
audience than ever before, one that can look past the pre-teen crowd. Since its founding in 1939, Marvel has been building its character base. This allows for Disney to market to younger kids, teenagers, and also adults who grew up with these characters. After the acquisition, Disney will have successfully transcended the generation gap in more ways than one. The “Toy Story” series has gone through a complete makeover to bring the series back in full force for the upcoming release of “Toy Story 3”, which is set to hit theaters in 2010. The main selling point for the original movies is the re-mastered look in full 3D animation. Walt Disney Studios Chairman, Dick Cook, says that the re-release of the series is a “good launching pad to reintroduce the characters.” Regardless of its effect as a good launching pad for its characters, the rerelease is a great launching pad for profits. Since acquiring Pixar Studios, Disney has yet to release or re-release an animated picture without surprising success in the industry. Recently, Pixar’s 3D Film “Up” grossed $413.9 million worldwide, despite expectations that the movie would only return several million dollars. Along with the “Toy Story” series, Disney also has plans to bring back “Beauty and the Beast” in full 3D. The movie could hit theaters some time in 2010, which would help draw back Disney fans now in their late twenties and early thirties. With these re-releases alone, the company has taken a step forward in reconnecting with its whole audience, specifically the older generations. Disney’s recent bold moves in the market have given it the ability to target different age groups than it has in the past. Along with the diehard fans of movies like “Beauty and the Beast” and “Alice in Wonderland,” Disney believes the people who grew up with these movies could get their children to fall in love with the same classics. It remains to be seen if Disney can continue to juggle all the new projects it is boasting, but one thing is for sure: Walt Disney’s company is not taking this recession lying down.
TUESDAY, SEPTEMBER 15, 2009
Tax Credit Bandages Wound By Scott Giveans, Money & Investing Writer
For the first time in years, the housing market appears to have hope. Aided by the $8,000 tax credit given to first time homebuyers, the housing sector saw its largest monthly increase in home resale this past July. The resurgence has many hopeful homebuyers eager that Congress will provide “Cash for Clunkers”-like treatment and extend the incentive program for the real estate market due to its success. Under the current first time homebuyer tax credit program, buyers can receive up to $8,000 or 10 percent of the home’s purchase price if the sale of the house closes before November 30, 2009. The program has helped induce the recent 7.2 percent increase in home sales which surpassed expectations and marked the largest boost in sales in more than a decade, according to the National Association of Realtors. Even though the tax credit plan has lifted recent sales, legislators are looking for more assistance from Congress to help the housing sector continue to improve. The plan being proposed would call for a $7,000 increase in tax credit to $15,000 that would be available to all homebuyers, regardless whether they are buying their first home or tenth. Currently there are close to 4.1 million unsold homes on the market, up from 3.8 million a month earlier. The huge inventory of homes represents a significant disparity between the supply of homes and demand for buyers looking to make the most important investment of their lives in uncertain times. At the present pace, where unsold homes rose by 7.3 percent in the month of July, it would take 9.4 months to sell off the current supply of homes, according to the National Association of Realtors. As positive as July’s home sales were, there is still much work to be done. With the unemployment rate continuing to rise there is no telling when it will end. Simply, if a person does not have a job, they do not receive an income and therefore cannot pay their monthly mortgage payments. Some people can afford to withstand a temporary job loss, but many Americans simply cannot endure that type of economic loss. These losses lead to foreclosures, Contact Bryan at email@example.com which bring down real estate prices throughout the neighborhood. Real estate is
all relative, so when one house becomes “distressed” all the houses around it lose value all based on that image. Although July’s sales jump was a relief, the unfortunate fact is 31 percent of those home sales were for “distressed” properties. Therefore, an individual may have gotten a below-market-value on a house, but
Photo courtesy of Australia ational Housing prices across the country are down, but the tax credit the government has released may just be bandaging the wounds from foreclosures.
it could have still come at a loss to the seller of the home, either the owner or the bank taking on the property. However, if Congress were to pass an extension to the current incentive program that beefed up tax credits to almost double previous numbers, then home shoppers would become home buyers. The increased incentive would induce 675,000 additional home sales, according to an analysis by Mark M. Zandi, chief economist at Moody’s Economy.com The recent sales results shown signs of life for the housing market, but there is a much deeper story to what seems like a step forward. The $8,000 tax credit currently in place has been a huge factor to this success, but the housing market will not rebound that easily. More has to be done by Congress to keep the housing sector moving forward by eliminating future foreclosures and enticing more would-be buyers into the market. Congress has double dipped before in regards to the “Cash for Clunkers”, the question is will they do it again?
Contact Scott at firstname.lastname@example.org
Unemployment Keeps Dropping; No End in Sight By Li Duan, Money & Investing Writer The employment situation report, released on September 4, 2009, shows unemployment increasing at the slowest rate in a year. In August, the United States shed an additional 216,000 jobs which increased the unemployment rate to 9.7 percent; the jump has the economy at its highest unemployment rate in 26 years and marks 20 consecutive months of job losses. The hardest hit industries were construction and manufacturing, losing 65,000 and 63,000 jobs respectively. Financial services continued to decline with 28,000 jobs lost while retail positions stayed flat. In contrast, job growth occurred in the healthcare and government sectors. Although it is believed that the economy will begin to create jobs sometime early next year, the weak labor market will continue to hamper down on economic growth. The Federal Reserve and most economists believe the unemployment rate
will reach the 10 percent mark by the end of this year. Even as recent market rallies and other economic data suggests the recession coming to a close, the high rate of unemployment will continue to be a stark reminder that the economic recovery will be drawn out. This could not be more prevalent when examining the unemployed. According to a ew York Times survey, those who are disheartened by the lack of hiring are continuing their education, becoming stay-at-home parents, retiring early or not searching for work at all among other things. This is especially true for those who worked in what are now considered collapsed industries. Being a nation of specialized workers, positions that were once plentiful are no longer available. Laid off workers are thus left with irrelevant experience and qualifications, leading to the unlikelihood of finding employment. Consistent dejection by the few employers that are hiring has created a pessimistic atmosphere on the
large number of unemployed workers. The Bureau of Labor Statistics, which creates the much-publicized unemployment rate, does not include in its unemployment calculations what they categorize as discouraged workers. According to the Bureau, these are “are persons not currently looking for work because they believe no jobs are available for them.” Currently, there are approximately 758,000 people in this category which has nearly doubled since August 2008. An additional 1.5 million potential workers are also not included in the unemployment rate because they have not searched for employment due to other reasons such as school attendance or family responsibilities. However, many economists believe that if jobs were available, they would also be employed. These two classifications of potential workers, categorized as being “marginally attached to the labor force,” total approximately 2.3 million; this figure is 64 percent higher than those published in
November 2007. A calculation of adding the marginally attached to the labor force population brings the August unemployment rate to 11 percent. The labor department, which uses a broader range of criteria for unemployment such as those who have given up on looking for work and those who cannot find full-time employment, measured the unemployment rate at a record rate of 16.8 percent. This is a strong indication that the economy is significantly underutilizing its workforce. Therefore, many economists argue the weak labor market as the principle hindrance to a quick economic recovery. Although there has been a slowdown in aggressive job cuts seen at the peak of the recession, lackluster hiring and high unemployment suggests a slow and gradual recovery as weak consumer spending continues to stall the growth of gross domestic product. Contact Li at email@example.com
Money & Investing
TUESDAY, SEPTEMBER 15, 2009
Rent-A-Companies: Rental Industry Soars in Hard Pressed Economy By Joseph Doty, Money & Investing Writer Behind closed doors, many of the people who previously flaunted their cash in the streets are turning towards a cheaper alternative for entertaining themselves: renting. Rental companies have grown into their own the last few years, with increasing
Photo courtesy of Enterprise.com Enterprise Rent-a-Car, along with many other rental companies, is seeing an increase in sales and rentals due to the current economy.
revenues in movie and car rentals highlighting a rental industry thriving during the recession. Over recent years the public has had many options for movie rentals, which help in avoiding the restrictions and hassle of the movie theater. Alternatives have arisen which have made watching movies more affordable and consumer friendly. Netflix has benefited from granting the consumer greater flexibility when renting movies. Netflix, along with Redbox,
was formed largely to change the way the public views and rents movies. Now, an individual’s favorite movies are obtainable at a local fast food chain, grocery store, pharmacy, in the mail, or over the internet. In the past few years these two companies have grown tremendously, offering the public affordable and convenient movie rentals. However, the rental companies now face a new threat to their business. A potential deal between YouTube and movie studios would give consumers another level of convenience of renting movies that Netflix and Redbox may not be able to compete with. Netflix shares have dropped since the news of a possible YouTube deal. Netflix offers much of its business through online digital streaming which no doubt would be hurt if YouTube were able to provide movies as well. YouTube has grown quickly since it started in 2005. As the world’s most popular online video site, YouTube continues discussions with Lions Gate Entertainment Corp, Sony Pictures, and Warner Brothers about what would perhaps make YouTube the dominate video rental distributer. The site has never charged its users for videos, but the convenience of watching movies online and the familiarity with the site might make other movie rental companies a thing of the past. Netflix also must address its relationship with Time Warner who stated last week that they are dissatisfied with their business coming from Netflix. The Film industry has recently seen
a decline in DVD rental sales, and with the potential threat of YouTube, movie rental companies may struggle to compete. Still, other rental companies have far less threats from the market, specifically in the area of car rentals. Enterprise Rent-a-Car has always been a successful company. The nation’s largest rental car company has not had much difficulty operating in the current economic downturn. It continues to hire new employees and recruit fresh talent, evidenced by its favorable ranking in BusinessWeek’s “best places to launch a career.” The company, which owns National Car Rental and Alamo Rent-A-Car, reported 2009 Labor Day weekend rentals increased 15 percent from last year’s numbers. Locations in airports and neighborhoods across the country give Enterprise an advantage in hiring a diverse group of employees and continuing to produce in a difficult economic period. With the current state of the economy, investors would be hard-pressed to find groups that are still spending large amounts of their income on movies, cars and entertainment. But, with the options of rentals, these sectors have presented an opportunity to keep a portfolio diversified. The entire renting industry has experienced significant growth, but only time will tell whether or not the industry will survive the current economic conditions.
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T-Mobile Teams with France Telecom ..continued from page 1 Despite the claims of foul play by the other cell phone companies, TMobile and Orange have stood firm and are promising substantial benefits which include expanded network coverage, better network quality and improved customer service. In a true power sharing agreement, Orange chief executive Tom Alexander would take charge of the new company, with T-Mobile's UK boss Richard Moat as chief operating officer. The proposed deal will also increase the efficiency of the two companies and in the long-term save approximately £3.5 billion (approximately $5.82 billion) for T-Mobile and Orange. However, this increase in efficiency will not come lightly with an expected price tag of nearly $1.5 billion. The bill will include decommissioning mobile phone masts, cutting back on the number of stores and laying off workers. It is expected that both T-Mobile and Orange are going to be forced to shed a large number of their combined 20,000 staff.
Contact Joseph at firstname.lastname@example.org
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Bull vs. Bear: The Hershey Company Bull on Hershey By Andrew Felbinger Money & Investing Writer As inconceivable as it is for any investor to be confident enough in any company right now, there is one company that should tickle every investor’s sweet tooth: Hershey. With the recent news of Kraft Foods’ failure to merge with British chocolate king Cadbury, investors have been all over Hershey as the news that it is the frontrunner in the Cadbury sweepstakes has spread around the globe. As Forbes reporter Javier Espinoza so eloquently explains, “A deal between the two chocolate makers make sense strategically, as the British company lacks presence in the U.S. while Hershey lacks the global scope of Cadbury’s business.” Early morning action took place on Wednesday, September 8 as activity around Hershey spiked to 28 times the normal level. Investors picked up 42,000 calls to buy Hershey shares and just 10,000 calls to sell them according to Track Data. Hershey’s stock rose from $38.63 per share on the morning of September 7 to $41.62 per share in mid-September 8 trading. News of the potential global chocolate merger has caused quite a commotion around Hershey, and investors do not want to be left behind. With news coming out every hour about the Cadbury sweepstakes, it is important for every investor to keep an eye and ear on the news. But, the reasons to invest in Hershey do not stop at the mere speculation of the international merger that would thrust Hershey into elite chocolate company; Hershey is one of the few companies that has not only survived the recession – it has thrived. Hershey’s income statement shows that the company’s revenue increased from the 2007 fiscal year to the 2008 fiscal year by nearly $200 million, to bring its total revenue for the period ending December 31,
2008 to $5.13 billion. Similarly, the company’s profit increased by $150 million, bringing its gross profit for the period ending December 31, 2008 to $1.76 billion. However, financial analysts do not see anything that proves that Hershey earnings are going to stop now. Hershey is predicted to raise its total revenue for the 2009 fiscal year to $5.35 billion. Coincidently, for the 2009 fiscal year, Hershey is predicted to grow at a whopping 10.6 percent, whereas its industry is predicted to contract 6.3 percent. A strong income statement, positive financial predictions for the end of the 2009 fiscal year and the potential merger with England’s chocolate king are reasons why all investors need to find a way to sandwich s’mores favorite accessory into his or her portfolio. Contact Andrew at firstname.lastname@example.org
Quick Statistics: The Hershey Company (NYSE: HSY) ROA
Sales Growth (5 year)
Quote (as of 9/11/09)
Bear On Hershey By Michael Pernal Money & Investing Writer With Halloween right around the corner, The Hershey Company better have some tricks up its sleeve, because the stock certainly is not offering up any treats for investors. Although the chocolate and candy industry is weathering this recession quite well, most of that is due to the business that occurs overseas, where Hershey is almost non-existent. When you couple Hershey’s extremely limited market share overseas with the fact that sugar prices are rising world over, especially in the United States due to quotas placed on sugar by the government, it makes sense that Hershey is playing “catch up” to its competitors, as reflected in its stock price. If that was not enough, it gets worse for domestic-heavy Hershey, given that unemployment is still rising in the United States, which places a limit on household spending. Less spending in the United States means less spending on unnecessary products, meaning less people will splurge on the last minute candy bar at checkout. With Hershey’s “Christmas” in the holiday of Halloween upcoming, it must meet expectations in sales and its third quarter earnings release on October 22, or it could be two devastating quarters in a row for the storied sweets dealer. In looking at the financials of the company, the price to sales is 1.74, which is excellent, but investors should definitely take note of the price to book of 22.02, a mark that is about three times more than what conservative investors would like to see. Many stock analysts have noticed these numbers and have since downgraded their ratings for Hershey. It should also be noted that the price strength of Hershey
stock is decreasing, meaning that Hershey’s three month price strength is twenty percent lower than its twelve month relative strength. When you combine that with Hershey currently trading near its 52 week high, it means that Hershey is overvalued. This overvaluation, along with the unusual amount of volume over the past few weeks, can be explained by the rumors swirling about that British candy maker Cadbury is looking to be acquired. After Cadbury rejected Kraft Food’s bid to buy the company, many investors started to speculate that Cadbury and Hershey would merge. It would make sense that Hershey would buy Cadbury, as it could then easily expand into overseas markets. Yet, it is highly unlikely as Hershey does not possess enough cash and would be hurt by taking on added debts. There is the possibility that Hershey and Nestle could make a joint bid, with Hershey taking the chocolate business and Nestle taking the gum business. The smarter business decision would be to let Cadbury acquire Hershey, as it would be able to capitalize on the market for chocolate and candy the world over. Letting this happen would create a great financial windfall for Hershey’s investors. Still, the Hershey Trust, which controls 78 percent of Hershey’s votes, has said it will not cease control of the company. While the Hershey Trust may defend its position for the sentimental reason of protecting the name and reputation of Hershey’s founder, Milton Hershey, it cannot defend its position as a sound business decision to the investors of the company. If Hershey is willing to make bad business decisions for the sole reason of keeping around a historic name, investors should throw this stock in the same place as last year’s Halloween candy. Contact Michael at email@example.com
Money & Investing
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TUESDAY, SEPTEMBER 15, 2009
Fast Food Companies Lovin’ Increased Marketing By Stefano D’Urso, Money & Investing Writer With competitive marketing strategies and an increased interest in the food industry, fast food chain stocks have begun to soar, but which one is the best out of the bunch? Wendy’s, McDonald’s, and Burger King have all had investors and analysts buzzing over the last few months, and for good reason. These fast food chains have all made vast improvements in both their marketing strategies and financial numbers. Beginning with Wendy’s, which is currently trading at $5.03 a share (as of Friday, September 11); it recently announced its push in the breakfast business. As of now, only 2 percent of its total orders are for breakfast items compared to an industry average of 22 percent. The hamburger specialist hopes to increase this number by introducing a new breakfast menu. Wendy’s is also looking to expand internationally, in comparison to McDonald’s and Burger King, which domi-
nate Europe and Asia. Wendy’s is planning to focus its international blitz on Saudi Arabia as well as Singapore to compete globally. Also, it recently introduced the Baconator in hoping to draw in more customers. Financially, Wendy’s is headed in the right direction with a quarterly revenue growth of 191.60 percent and a price/book ratio of 0.99, two numbers that show the new marketing strategy is paying off. McDonald’s has also jumped in the ring with new marketing ideas. The “golden arches” are now offering a coupon for a free Angus Third Pounder Premium burger plus a free transit pass to public transit systems in Atlanta, Baltimore, Chicago, Dallas, Denver, and Washington D.C. as part of the “Try Free, Ride Free” promotion. McDonald’s has gotten positive feedback from customers for its McCafé line of coffee, complete with espresso drinks and frozen mochas. Getting coffee addicts on its side is a huge boost for the chain restaurant. McDonalds’ sales rose 2.2 percent
globally in August, even with the stagnant economy and Americans looking to cut back on fast food. Trading at $54.85 a share, McDonald’s has a return on equity (ROE) of close to 30 percent, knocking out its competitors. Also, with a P/E ratio of 14, McDonald’s has room for growth within its industry. McDonald’s is one of the most well known brands worldwide, its financials seem to be secure and any push from competitors will most likely lead to a push back from Ronald McDonald and company. Burger King, the world’s second largest hamburger chain behind McDonald’s, is also an interesting stock to watch. BK executives have stated that its dollar menu’s double cheeseburger has competed well against rival McDonald’s dollar menu double burger, which is a huge victory for them. Burger King has also signed an endorsement deal with NASCAR driver Tony Stewart where he will appear in a series of commercials on television endorsing the whopper, his favorite Burger King sandwich. These moves are aimed at
catching a younger generation; one that Burger King believes will expand with less young people cooking at home. Presently trading at $17.44 a share, Burger King has an astounding return on equity (ROE) of 22 percent and a P/E ratio of 12, making it one of the upper echelon fast food companies in its market that still seems relatively discounted. Analysts are predicting a slower quarter for all restaurant chains, but this should not discourage investors to put their money in any of the above mentioned stocks. Between Wendy’s, McDonald’s, and Burger King, Wendy’s is the riskiest, yet most attractive buy now due to the fact it is trading at such a low price relative to its recent growth. Just like its low priced hamburgers, Wendy’s is a cheap stock that could have investors increasing their waistlines with the profits they will find.
Contact Stefano at firstname.lastname@example.org
Companies Smarting from Too Much Innovation By Christine Wotton, Money & Investing Writer Becasuse smart phones are being released every few months, they no longer make a significant change in the company’s stock. The flood of these phones on the market has also led to variety of problems. Back in the beginning of 2007, when Apple released the first iPhone, its stock grew from $84 to $189. But in 2008, when Apple released a second iPhone, there was a significant drop in the stock. Currently, Apple is in the process of introducing the latest version of the iPhone onto the market. Apple is releasing this iPhone at the same time of the year as the last iPhone. Right now, Apple’s stock is on the rise but, considering what happened last year an iPhone with no extremely innovative functions could spell trouble again for Apple’s stock. Apple is not the only technology company to fall victim to an increasingly competitive smart phone market. Nokia,
who has several models of smart phones on the market, has shown little or no effect in its stock other than the rise after the Nokia N95 smart phone was released. Since then there has been a significant decrease. With the new Nokia N900 coming soon there might be a rise in stock, but Wall Street and analysts seem skeptical of any major change in stock price, even with a new phone. Other phone companies have had the same problems. The competition is preventing any significant positive change in the phone company’s stock. The other problem with so much competition is that by the time a company gathers information about how well the product is selling, a new smart phone is on the market with new features. Then the information is no longer valid. Even looking past revenues, smart phones are facing serious problems moving forward, especially concerning the actual effectiveness of the phone itself. Studies conducted by Consumer Reports indicate that the voice quality on a phone call is consistently worse on a “smart phone” then on a normal cell phone by the
same company. The main purpose of the product is to make phone calls, but to be useful for a variety of other things. People are so focused on the “smart” and not the actual phone. What happens when people realize they are not able to make out the person’s voice at the other end? There is no standard definition for the question, what is a smart phone? At this point they are handheld devices with everything that the manufacturer can fit inside of its shell. All of these devices have different operating systems to support their basic programs, and different “apps” that are phone specific. This inconsistency can lead to problems if files need to be transferred. Each phone needs to be able to convert and reformat data, and the converters needed take up space in the small amount of storage that is left over after all the apps have been loaded on the phone. Some have word processing applications on them like Microsoft Word, others require cloud computing. And the differences go on from there. The lack of stan-
dards is confusing for buyers and as well as users. The new “Smart Phones” entice people to buy them because it promises productivity. Things like getting notes ready on the bus, sending email on the subway or having a mini office on the golf course. But this begs the question, do they really help productivity? The small keys and screen make it hard to type; the navigation of a webpages is significantly different, and the mouse is hard to accurately move. Simple tasks on a computer are more labor intensive and time consuming on a “Smart Phone”. Since companies are pushing out new “Smart Phones” every few months, who knows what will be in store for their future. But until these and other issues are resolved, buying a “Smart Phone” might not be the most intelligent choice a consumer can make, especially when they are released quicker than a company has time to fully develop them. Contact Christine at email@example.com
Cadbury Expects More Than Just Sweets From Suitor By Justin Ruffing, Money & Ivesting Writer This past Labor Day weekend, Kraft Food Inc. (NYSE: KFT) tried and failed to sweet talk the management at Cadbury Candy (NYSE: CBY) into a lucrative acquisition. The offer of $16.7 billion to buy Cadbury Candy came as a surprise to many, especially to Cadbury Candy, a company with international favorites including its famed Easter Cadbury eggs and Bubblicious gum. Initially, Cadbury rejected the offer because its shares were trading
above the price offered by Kraft. From the time of the rejection, Cadbury’s stock has taken a major jump in price from $37.46 on September 9 to $51.82 as of September 11’s close in trading. Unfortunately for Kraft, its stock has not fared as well, falling from $28.10 on September 9 to $26.10 on September 11’s market close. In a letter to Kraft CEO Irene Rosenfeld, Cadbury’s Chairman Roger Carr stated that the offer “fundamentally fails to reflect the current value of Cadbury as a standalone business.” So far this year, candy stocks have
been very rewarding for those who are invested in them. Hershey (NYSE: HSY), which has risen by 21 percent so far this year, not only has reaped investors returns, but could move in on a play for Cadbury itself. Currently, Hersey’s price is 40.24, and is expected to continue to rise. Other candy companies continue to benefit from the news of Cadbury’s sale, especially while weather continues to remain stable near cocoa-producing countries. Kraft wants to acquire Cadbury for its already established position in many of the world’s fastest growing emerging markets, including India and many parts of
South America. This would help Kraft because it would give them an already well established international business, along with Cadbury’s very lucrative chewing gum brand, Trident. One major problem with this deal is Kraft’s already large debt. On June 30, its debt total was $20.2 billion, and since it would have to finance $8 billion for this deal, that debt would only get larger. Cadbury is holding out hoping that Kraft will increase its bid, but with this debt it seems highly unlikely that Kraft will sweeten any deal with Cadbury. Contact Justin at firstname.lastname@example.org
Back-to-School Still Hard on Retail Sector ...continued from page 1 Urban Outfitters, which provides clothing for both guys and girls along with apartment furnishings, seems to have high expectations for the back-to-school shopping season. Investors seem to agree with the company’s optimistic view, as its stock has risen from just around $18 in early July to almost $30 per share during the first week of September. Along with trendy clothing com-
panies, stores that carry products in multiple disciplines for back-to-school shopping are also doing well. Industry giant Wal-Mart (NYSE: WMT) says that they expect sales at stores open for more than one year to increase 2 percent in the quarter ending on October 31. In accordance, Target is also expecting sales increase, although not as much as Wal-Mart. These sales increases are most likely the byproducts of the stores ability to
offer one-stop-shopping for back-to-school needs. The convenience of the stores along with their very competitive pricing makes them very appealing to the bargain shopping consumers of today’s world. All in all, although sales may not be staggering for many companies during this back to school season, the numbers are sure to be better than last years. While high school teens have given investors the right answer in the past with companies like American Eagle
Outfitters and Abercrombie & Fitch, it looks like this year the older generations will finally run the market. Move over beach boys and surfer chicks, and say hello to the rising stock of the hipsters at Urban Outfitters and the parent shoppers at Wal-Mart.
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TUESDAY, SEPTEMBER 15, 2009
THE STILLMAN EXCHANGE
Stillman Semester Kicks-Off at the Involvement Fair By John Ceniza, Stillman NewsWriter Popcorn and cotton candy were there, but it certainly was not an amusement park. The 2009 Seton Hall University’s Involvement Fair was held on Thursday, September 10. Among the array of clubs, honor societies, and greek life organizations, the Stillman School of Business’s Stillman Semester Kick-off, headed by Deans Karen Boroff and Leigh Onimus, was bombarded with people interested in becoming more active Stillman students. According to Dean Boroff, “a Seton Hall education is not just about academics. It is about making the school a better place by taking one’s skills and applying them via club activities”. Employers are looking for well rounded students, and by joining multiple organizations, students can strengthen their leadership, communication, and time management skills. Dean Boroff advised that business students to participate in business clubs since it can be a great benefit. By joining a club of their interest, or perhaps their major, they can better understand what it is that they really want. Joining these clubs can also be a form of motivation since it is not unusual to see suc-
cessful people with business degrees give a speech or presentation to club members. These clubs are here to present the student with multiple choices so that they may achieve success through a variety of ways given that they put in some effort to do so. “Every minute of their time is an investment to themselves,” said Dean Boroff, which is a sure way to have a successful school year. The most important lesson is time management. One should thoroughly think about their choices especially when choosing between work and fun. Another participanting organization at the Involvement Fair was the Entrepreneurship Club. When asked what benefit one would get from joining this particular club they emphasized the importance of networking. Not only are they close with the staff, prominent alumni and CEOs, but the club can also help students learn about planning, communication, and even building a resume. It is very easy to join clubs like these. They generally reach out in a variety of ways including, but not limited to: emails, events, word of mouth, and fliers. Most clubs welcome everyone regardless of major so there are plenty of choices for all students.
Photo courtesy of Carolyn Taggart Students interested in becoming involved with Seton Hall’s radio station, one of the many organizations that participated in the 2009 Involvement Fair.
By the massive crowd and plenty of chatter, one could say that the Involvement Fair was a success. One student said that he “thought it was rewarding.” The general consensus seems to
agree that this event, as one student put it, “lays the groundwork for a productive year.” Contact John at firstname.lastname@example.org
Take Charge of Your Future at the ‘Careers in Business’ Fair With the unemployment rate in New Jersey hovering around 9 percent and a trend by employers to cut back their hiring by 25-30 percent, now is the time to step out ahead of the crowd and take action to get the internship or full time job you’ve been thinking you’d like to have this spring. If you’re wondering how you can do this with all the demands on your schedule and the natural tendency to wait until “later” – which always comes sooner than expected– a well-timed event is planned in just a few weeks that can help you get an opportunity to explore career possibilities and even talk face-to-face to representatives from companies that are hiring. The Career Center is hosting its Careers in Business Fair on Thursday,
September 24 in the Regan Field House from 4:30-6:30 pm. With over 45 employers recruiting for both internships and full-time positions, this event is the place to look for an internship for the spring or summer, or for a job after graduation. “Careers in Business is a must attend event for all students, including first-years! Your participation and professionalism is the “first impression” of what Seton Hall and the Stillman School has to offer this year’s hiring organizations,” comments Jacquline Chaffin, director of the Career Center. And do not be fooled by thinking that looking for an internship or job can be put off since, in the current economic climate, finding jobs and internships will con-
“And do not be fooled by thinking that looking for an internship or job can be put off since, in the current economic climate, finding jobs and internships will continue to be extremely difficult.” tinue to be extremely difficult. You will want to be sure to use Seton Hall’s Navigator site as your first source for looking for internships or career opportunities. You will need as well to diversify and expand your job search strategies and mount a special effort to begin professional networking; Navigator with its link to alumni Pirate Mentors is a good place to start. And, if this seems daunting, career fairs are the ideal place to network! They are the perfect place where you can have the opportunity to speak with an entire room of representatives from top business organizations that are looking to hire you! So what will stop you from making Careers in Business the place to be on September 24?
- You will have the chance to meet with Pirate Mentors. These are SHU alumni who volunteer their expertise and time to answer your questions and talk to you about their career paths in business.
online career database that lists all the internship and career listings posted on its site; explore VAULT, which is a great site to gain in-depth information about a specific career, employer, or industry; and learn about Optimal Resource, which is an online tool that allows you to create your resume and practice your interviewing skills. Also, after the career fair, you might want to attend the “Meet the Firms” networking event targeted to finance and accounting majors at 6:30 PM in the Atrium at Jubliee Hall, where you’ll have a chance to talk with company representatives in an informal business setting. Careers In Business is a great event to initiate or energize your career search. And, you’ll want to put your best foot forward. As a result, Ms. Chaffin recommends that “to take full advantage of this valuable networking opportunity and possible entree to your next internship or career endeavor, you’ll want to dress professionally and come prepared with a 60 second crisp introduction and questions to ask.” Treat it as a job interview: research the companies that are going to be there, practice your interview skills, put on your suit, bring multiple copies of your resume, be prepared with your best handshake, be ready to sell yourself, and enjoy talking to company representatives who want to talk to you!
- You will be able to: check out demonstrations of Navigator, the Career Center’s
Regards, The Career Center
- You will get to meet employers like Aerotek, Eli Lilly, L’Oreal, PepsiCo, State Farm, Prudential Financial, PricewaterhouseCoopers, and Ernst & Young, LLC, as well as many other organizations looking to hire for both internship and professional opportunities.
Photo courtesy of The Stillman Exchange Students have a chance to network with professionals from Fortune 500 companies at Beta Alpha Psi’s “Meet the Firms” event on Thursday, September 24, 2009 at 6:30 pm.
THE STILLMAN EXCHANGE
TUESDAY, SEPTEMBER 15, 2009
Senior Sebastian Altilio Has the Experience of a Lifetime By Ryan Garrity, Stillman News Writer
Sebastian Altilio, this week’s interesting senior, had a very unique summer. He was able to spend his summer dealing with the many facets of a sports organization. Majoing in sport management and having a strong love for baseball, he was awarded the James R. Plummer memorial scholarship. The scholarship, funded by the Mets Foundation, will annually go to an academically outstanding student who is dedicated to community service. He detailed this experience for The Stillman Exchange in the following interview.
RG: What were the requirements for this internship?
Ryan Garrity: What activities/groups were you involved in for your first 3 years on campus? Sebastian Altilio: During my first few years on campus, I was involved in a number of activities. They included participation in the SHU 500+ day of service and tutoring in various subjects. I was also a Peer Adviser on campus, and participated in the programs that were involved with that. RG: How did you go about receiving the internship with the ew York Mets this summer? SA: I first heard about the internship when both Dr. Mayo and Dr. McCarthy emailed me to call my attention to it. I learned even more about it when Reesa Greenwald and Merideth Mayes let me know about it. I was able to utilize the full resources of the Career Center in order to attain this
SA: The requirements for the position included someone with at least a 3.0 GPA from the New York City area. It also had to be someone with a passion not only for baseball, but a passion for New York Met baseball. They were Photo courtesy ofSebastian Altilio also looking for Altilio is the first recipient of the James R. someone who has Plummer memorial scholarship, granting a desire to perhim an internship experience he form community will never forget. service.
good computer skills (especially email and excel). It also entailed someone with good people skills, as there were a lot of phone calls that had to be handled and many greetings throughout the summer. RG: What experience/skills was this job able to provide you with? SA: The experience that I had was unbelievable. I learned so much - from office behavior, to what goes on in conference meetings, customer service behavior and many different sales and marketing techniques and strategies. It was also incredible because I got to work in community outreach. Everything that we did involved the players and children, so it was a lot of fun to see the kids faces when their favorite players walked in to do an event with them. RG: Would you recommend an internship like this for other students? Why? SA: I would absolutely recommend an internship like this to other students. Although it entailed a lot of hard work, it was a lot of fun and I also learned quite a great deal, especially skill wise. This was also helpful because it helped me to determine if this was something that I really wanted to do for the rest of my life. This is one experience that I will not forget.
RG: What did this position entail? SA: The position entailed a lot of hard work, long hours and
Contact Ryan at email@example.com.
Beta Alpha Psi: Creating the Leaders of Tomorrow By Rory Manning, Stillman News Writer Are you an Accounting, Finance, or Information Technology Management major? If that answer is yes then Beta Alpha Psi is the honor society for you. Beta Alpha Psi is a diverse group of students all working towards the same goal: a job offer after graduation. Beta Alpha Psi not only looks good on a resume, it is a platform that gives students that push to become more efficient student leaders and young professionals before they even enter the workplace. Through their required tutoring they give back to the community, they help themselves grow as leaders. Founded in 1919, the international honor society caters to Finance, Accounting, and Information Technology Management majors. With strict requirements for membership, future employers know that they are getting the “best of the best” says Timothy Mathew, President of Beta Alpha Psi. Beta Alpha Psi is designed to give its members the discipline they need to succeed after graduation. They require professional attire at every meeting and most events. Professor
Photo courtesy of Kristin Dispenziere
Mest, one of the advisors, explained “it allows students to become accustomed to being is a business setting so that when they go on interviews they don’t feel out of place.” They have weekly meetings on Thursday nights in the Faculty Library on the sixth floor of Jubilee. There is a strict attendance policy in place, requiring members to attend every meeting and event unless officers are notified of a previous
engagement. Beta Alpha Psi is not a passive club, it is an organization that goes beyond weekly meetings; they actively organize many off campus trips to different companies such as Prudential, KPMG, and Ernst & Young. While at these companies, students have the opportunity to attend presentations given by business professionals as well as have conversations with professionals in a
real world setting. In today’s economic market, the job market is much more competitive. It is not just enough to be a good student. Employers want to see that potential employees are in clubs and organizations that will enhance their job seeking skills, as well as their professional experience. They want to see that students are working to develop themselves, not just in academics, but professionally as well. There are many events on Beta Alpha Psi’s calendar; most important of all is “Meet the Firms” on September 24 at 6:30pm in the Jubilee Hall Fourth Floor Atrium. “Meet the Firms” is open to all Stillman Students. It is a great opportunity for students to begin networking in a small and informal environment. Beta Alpha Psi is an important organization and it would enhance any students resume. With its wide network of alumni, students are presented with numerous opportunities to further their leadership skills, networking abilities, and their job prospects. Contact Rory at firstname.lastname@example.org
ew Energy Efficient Laundry System Will Cut Costs for Students By Jessica Sladewski, Stillman News Writer Did you ever think that doing your laundry could be environmentally friendly? Seton Hall University’s new set of environmentally friendly washing machines was installed in all dorms and will be sure to please. “So Fresh, So Green” gave students the opportunity to learn about new “green” washing machines as well as learn about ways to help the environment. Attending this event also allowed students to do their laundry for free on Wednesday, September 9.
The purpose of the event was to teach students how to use the new washer and dryer system on campus. Since the washers and dryers are environmentally friendly they use less water than normal washers. Since they use less water that means that it costs less to do laundry as well. Students also learned that using the new washers requires a different way to use detergent. High efficiency detergent has been designed to work the best with these environmentally friendly washers, so that is the ideal type of detergent to purchase. However, students who are using regular detergent will still be able to use it,
but they can use less of it, therefore saving money on detergent as well. This event also acted as a community building activity. Students were able to socialize with other residents. The Resident Assistants that were running this event asked various “Go Green” trivia to all that participated. Questions were asked to students to test their knowledge on recycling and saving water and energy. For example, did you know that recycling one aluminum can saves enough energy to provide power to your television for 3 hours? Not only were students able to get
laundry done for free but students who answered the trivia questions correctly were given free prizes as well. Justin Jackson, a RA in Xavier Hall said, “This was a very successful program, and I was able to meet many residents that I probably would not have met if this event was not held.” Since there was positive feedback from this event, Housing and Residence Life plans on hosting this program again in the future.
Contact Jessica at email@example.com
TUESDAY, SEPTEMBER 15, 2009
THE STILLMAN EXCHANGE
Military Smoking Ban: icotine Fix or icotine Problem? There is a debate in the U.S. Pentagon about whether there should be a military-wide smoking ban instituted within the next 20 years. Is this a proper response to health and budget concerns within the government or is it a violation of a soldier’s right to make his or her own decisions about smoking? Stephanie Urban: Junior, Accounting Major
Pentagon Cuts Costs, Soldiers Pay While I’ve never had to walk even a few yards in the combat boots of one of America’s fine defensemen, I know from the media and friends’ reports that the day in the life of a soldier is certainly nothing like yours or mine. Many American civilians, such as myself, rarely realize that the freedoms we enjoy on a daily basis such as reaching out to hug a family member, choosing which clothes to wear, what food to eat, and when to take a coffee break at work, are inaccessible to the very men and women who spend each day training to protect our liberties. In light of all the sacrifices our soldiers are already expected to make, I think it is unreasonable for the U.S. government to
further restrict their recreational activities by now considering the implementation of a military smoking-ban policy. Those in favor of the s m o k i n g Photo courtesy of scrapetv.com ban say the government is looking to protect the health of America’s finest, but to place such a restriction upon army men and women is impeding upon their personal independence. And yes, smoking tobacco is known to directly cause cancer and disease; and yes, we should want to protect all persons from any malady, but if we expect our military to breathe in sand, gun smoke, and
bomb waste daily, it’s hypocritical to begrudge them a cigarette. This is just the humanitarian aspect of argument against the P e n t a g o n ’s potential smoking ban. The real reason the government is so actively considering a ban is, brace yourself now, for fiscal reasons. According to a study conducted by the U.S. Department of Defense, tobacco use costs the Pentagon $846 million a year in medical care and “lost productivity.” This may seem like a large number, until you compare it with President Obama’s $1 trillion proposed healthcare
reform budget. If the President is willing to spend that much money to ensure that American civilians, yes, even those who do smoke, can have medical care; then it is truly an absolute and undeniably inequitable act to refuse our hardworking soldiers the right to smoke simply because the government is tired of footing the consequential bill. If the government is truly interested in protecting the health of American soldiers, it should begin with mental health initiatives because, after all, stress is a major cause for cigarette smoking. If the government, however, is simply interested in cutting costs, it should not do so at any rate of discomfort to our honorably self-sacrificing servicemen and women.
Contact Stephanie at firstname.lastname@example.org
Morgan Tornetta: Sophomore, Journalism Major
“Some said it would cut medical costs and make the force healthier, while eliminating smoking breaks would increase productivity. Others said it would dampen morale and Smoking Ban is oble Cause, reduce recruitment in the all-volunteer milBut Impractical itary. Nearly all, however, said it was The findings of a study commis- impractical and probably would never hapsioned by the Pentagon and the Department pen”. Enacting a ban, I believe, could of Veterans Affairs have prompted the irritate smokers, who see smoking breaks as Defense Department to consider a total ban their chance to relax. Some soldiers who on tobacco products in the military. began smoking as privates and have continGood for them, I say. I personally support ued for years would have difficulty quitting, anti-smoking legno matter how long the islation, and I government gives them Photo courtesy of sonofthesouth.net would appreciate before the ban is enactthe Defense ed. D e p a r t m e n t ’s Second, smokmove against ers can easily become tobacco connicotine addicts. For sumption. those addicted, withPractically speakdrawal is painful, causing, I am not sure ing headaches, irritabilit would ever ity, insomnia, and diffiwork properly. culty concentrating. I don’t Every active soldier has support the use of to battle minimal sleep tobacco, because and inconsistent eating it is a destructive habits, adding nicotine practice. Habitual withdrawal to this list smokers are at would only add fuel to risk for heart disthe fire. I would not ease, emphyselike to meet an armed ma, diabetes, soldier made anxious stroke, and a slew by withdrawal; it seems of different types like an unnecessary danger to civilians and of cancers. Those who chew tobacco fare no other soldiers. Recovering addicts may be better as it can lead to various oral cancers. more prone to disobedience, wanton vioAccording to the Navy Times, the lence, and other unseemly conduct. percentage of smokers in the military is Also, I fear that the tax dollars the higher than the approximate 25 percent of government would pump into stop-smoking the civilian population, at 32 percent and programs would be wasted if such a ban rising. The article continues, “On the battlefailed. With the economy the way it is, I field, [smokers] bleed harder after surgery, would hate to think of the money I worked heal slower after injury, and are at higher for essentially being thrown away. risk for infection”. Though I would truly love for Since being physically fit and America to take this step in the war on healthy is important for active-duty soltobacco, it would be a highly impractical diers, should they allow smoking in the milstep. Besides, though authorities may ban itary at all? the product, they cannot ban the desire for Sadly, I believe that the ban, which it, and where there’s a will, there’s a way. would be implemented over twenty years, could be more trouble than it’s worth. First, we must consider the soldiers’ opinions. Fox News put it best:
Contact Morgan at email@example.com
Photo courtesy of ew York Daily ews
Kimberly Bolognini: Sophomore, Journalism Major
Guns: The Only Thing Smoking in Combat Zones The Pentagon is contemplating a ban of tobacco on military bases and combat zones. Most people’s initial reactions are shock and disgust; they can’t believe that the government would take away the little mental relief the military receives. Soldiers put their lives on the line everyday to protect fellow Americans and we re-pay them by passing a law to damper their simple stress relief? It’s not that simple, though. If you think about it, smoking drastically affects soldiers’ performances on the battlefield and their short term and long term health. When asked about soldiers who smoke, Kelly Kennedy from Navy Times explains, “They have worse vision and night-vision; they don’t perform as well on fitness tests; and they miss more work.” According to the Institute of Medicine, when soldiers finally go home they face the fact that “about half of them will die from a smoke-related illness.” Not only are they risking their lives at war, but they are risking it from smoking, as well. If the law is passed, 50 percent of military workers who make it home may not die from smoke-related illnesses.
Although I am very thankful for what the military has done for Americans, I feel that if soldiers were to stop smoking it would be the best decision. They protect our safety so why can’t we protect theirs by passing this law? Not only is smoking a health issue, but it also makes soldiers a bad influence. Military workers have always been seen in pictures with a cigarette hanging out of their mouths, starting back in World War II. Many children idolize people in the military for their strength and courage; they look up to them and want to be them some day. These constant images of soldiers smoking is sending the wrong message to children and is making them think that it is okay to smoke and that it is an everyday, normal action. Obviously the military goes above and beyond their duties and we don’t even have a clue what it is like to be in their position. At the same time though, it would be amazing if we could look out for them like they are looking out for us. Some people argue that if smoking is not illegal to everyone else, why should it be illegal for the people that are fighting for us? It may not be fair, but it is the most logical decision and in the long run, it is only saving the lives of our heroes.
Contact Kimberly at firstname.lastname@example.org
The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics. These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.
THE STILLMAN EXCHANGE
TUESDAY, SEPTEMBER 15, 2009
Editorials Honest Discussion Is Healthcare’s Best Medicine By Dennis Negron, Guest Contributor As Congress resumes session this week, it also resumes one of the most important debates in the history of this great nation. For decades the idea of healthcare reform has been tossed around and then just put off. The procrastination in reform has earned our healthcare system the ranking of 37th in the world and left us little wiggle room for further inaction. Unfortunately, the debate seems to become less about the betterment of America, and more about… well, it seems we’re still trying to figure that out. As the “healthcare debate” rages on, it seems as if we stray further from actual issues, and fall further into our current rut of mindless chatter and petty quarrels. So far, the only details that have emerged from Capitol Hill regarding the plan to alter the way we all receive medical care, is that I’ll meet with a death panel before every doctor visit, and that Barack Obama wants to kill my grandmother. Other than those sultry news stories, the one clear fact that has emerged from the debate is that an era of change has not been bestowed upon Washington. The obstacles standing in the way of forward progress this time seem all too familiar. Insurers spend millions of dollars on lobbyists for situations just like this one, and your elected officials are all too willing to accept their campaign contributions. The drug companies have decided to “play ball” but only if the President promises to deny the importing of cheaper foreign drugs, which seems a bit contradictory to the aim of lowering health costs. The media realizes scare tactics and fear mongering generate far more interest than intellectual discussions regarding complicated issues, and at a time where spending on advertising has contracted sharply, the mainstream media seems content with sticking with their old business models. The problem with the fear mongering in this situation is that it has completely skewed the facts and has made it nearly impossible for the average American to differentiate fact from fiction. This leads us to our next
issue. As a result of the sense of urgency, which seems to have been adopted by both the President and Congress, there has been no time devoted to explaining the core facts to the public. The only interactions between policy makers and their constituents, as of late has come in the form of town hall meetings. What are the issues at hand? By most estimates 46 Million Americans live without health coverage, and in some cases, people with insurance are dropped due to “preexisting conditions.” The cost of insurance has skyrocketed for both patient and doctor, as families shoulder the burden of higher health insurance costs, and doctors are forced to close their practices due to the overbearing cost of malpractice insurance. Higher malpractice premiums drives up the cost of a visit to the doctor, which raises premiums on health insurance, and the cycle continues. Our record keeping is outdated, which means patient test results are not stored in a database and the same test ordered by the treating physician must be retaken at the ER. Long lines at the ER, and understaffed hospitals round off the items I can rattle off the top of my head, and of course, there’s the question of how much sweeping reform will actually cost . So what are the solutions? Well, that’s what the real issue should be when congress reconvenes. America was founded on honest and open dialogue between policy makers who were attempting to find solutions to the issues which threatened the country. A return to these fundamental values is not only essential in getting a healthcare bill passed, but also in insuring the bill addresses the issues at hand. It may be idealistic to hope that both sides will have matured over this break and find some type of middle ground, but that is exactly what is necessary. If the bickering continues, one party may be able to claim a political victory, but it will be the American people who suffer the greatest loss. Contact Dennis at email@example.com
Walt Disney Co. Makes Marvel-ous Buy By Gerardo Pecoraro, Managing Editor On August 31, 2009, Walt Disney Co. (NYSE: DIS) announced its plan to acquire Marvel Entertainment Inc. (NYSE: MVL) and I couldn’t be happier! As a longtime shareholder of Walt Disney Co., this is such a smart move on Disney’s part. Just as in 2006, when Disney purchased Pixar Inc. for $6 billion, the company is taking another substantial risk to grow and expand. Some analysts and critics believe that a $4 billion price tag, or 28 percent premium to Marvel’s stock price, is very steep for a company with only $676 million in revenue and a bottom line of $221 million. I, however, think it’s very appropriate. Yes, it is true that Marvel is a much smaller company than Walt Disney Co., but it is run very efficiently. The company has no debt – none. Since the end of the 2008 fiscal year, the company has taken great strides to use its excess cash reserves to pay down its long-term and short-term debt. Also, in the past five years, since 2004, a favorable pattern formed - as revenue and net income grew, operating expenses remained flat. Marvel did a great job in those five years of keeping operating expenses low as they continued to grow the top and bottom lines. Initially the market was unsure how to react to the deal, Marvel’s stock price rose
$10.19, or 26 percent while Disney shares were off $0.36, or 1.3 percent, to $26.48, in the first half hour of trading after the announcement. This is no longer the case however; the market has a more favorable opinion now. Since the announcement, Disney’s stock price has risen approximately 9 percent and Marvel’s has risen approximately 25 percent. Disney’s and Marvel’s stock price will continue to rise as news reports and company memos from comPhotos courtesy of FSR petitors, Warner Brothers and DC Entertainment, surface. WB and DC Entertainment are trying to hold onto their market share and have released rushed plans to put out more superhero movies to keep people interested in their enterprise. Even the competition knows this is a good deal; they are getting scared. Walt Disney Co. is making a great move by joining forces with a company that has such a strong global brand and world-renowned library of characters. Walt Disney Co. has the creative skills and an extraordinary business structure that is sure to maximize the value of Marvel’s creative properties. I wouldn’t be surprised if Disney’s stock price hits $40+ per share after the dust settles. We’ll just have to wait and see. Contact Gerardo at firstname.lastname@example.org
Universal Healthcare Is ot The Way To Go By John Rodriguez, Guest Contributor Affordable healthcare has been an issue plaguing the country for decades, but in order to provide for affordable healthcare, the federal system already in place must be reformed, including the insurance giants that have been robbing people blind. Completely nationalizing healthcare, however, is not the route America should take. From my own experience working with the government, one of the first things you notice is that nothing is run efficiently. From veteran’s compensation to immigration services to environmental protection laws, none of these things happen on the spot. There are weeks and sometimes months of delay on even the smallest cases due to sheer numbers. We cannot overload the government with all of the work that the private sector is completely capable of carrying out. Many think that universal healthcare will provide free healthcare coverage for all. However, what they fail to notice is that we are still paying for it. How many people like working a long week only to receive a paycheck that has numerous deductions from taxes such as Medicare and Social Security? Universal healthcare will be paid by the people for the people. I am fortunate enough to have healthcare coverage through my family and my parents work hard to maintain my coverage and they do so without complaint. I am not saying that my parents are struggling or wealthy, but I do not believe their tax dollars should have to support the rest of the nation’s healthcare. Dr. Leonard R. Bogaev recently wrote an article in which he brings up a good point – Universal healthcare in Canada and the U.K. is superb, if you aren’t sick. He claims that once people become ill in Europe and Canada they travel to the U.S. for the prestigious medical care that doctors overseas seem to not be able to provide. This trend is a result of competition among doctors. By nationalizing the healthcare system, competition is eliminated. Tort-reform is
what is needed to lower healthcare costs, not a revamping of the entire system. If it’s not broken don’t fix it, so we should try to fix our alreadyworking system so that it works better for all. Contact John at email@example.com
The Stillman Exchange The Official Business Publication of Seton Hall University, Editorial Staff Managing Editors Magdalena Dewane Gerardo Pecoraro Assistant Managing Editor Ian Mehok Money and Investing Ian Mehok Stillman ews Tiffany Dindial Ethics Caitlyn Cafferty Editorials Mark Karatoprak Sports Rich Kimsey Domestic ews Steven Riedel International ews Danielle Storm International Business Alex Cohen Webmaster Mark Karatoprak Faculty Advisors Dean Karen Boroff, Ph.D. Michael Reuter, M.B.A. E-mail firstname.lastname@example.org Website http://www.stillmanexchange.com/
TUESDAY, SEPTEMBER 15, 2009
THE STILLMAN EXCHANGE
Oudin Ousted at Open, But Future Looks Bright For Young Star By David Rind, Stillman Sports Writer Although 17–year-old Melanie Oudin isn’t even legally considered an adult in America, she is certainly playing like one on the tennis courts.After storming her way to the quarterfinals, American teen tennis sensation Melanie Oudin was stopped in straight sets (2-6, 1-6) by the ninth ranked player in the world, Caroline Wozniacki of Denmark, Wednesday night. Oudin had 43 unforced errors compared to Wozniacki’s 20, and Oudin’s second serve winning percentage of 27 percent all contributed to her demise at the U.S. Open in Flushing Meadows Park in Queens. Despite this disappointment, Oudin has sparked hope in a bleak U.S. women’s tennis scene. Oudin burst onto the scene this year in relative anonymity, despite making it to the fourth round at this year’s Wimbledon tournament, beating Jelena Jankovich in the process. She came into Flushing and dispatched of established veterans Elena Dementieva, Maria Sharapova, and Nadia Petrova in the second, third, and fourth rounds respectively, even after dropping the first set to all of them. She used blistering ground strokes and
Photo courtesy of ewsday Oudin enthusiastically celebrates one of her upset victories at the U.S. Open last week in Queens.
frustrated her opponents with her accuracy during her ride to the quarterfinals. Despite her very young age, no moment seemed too big for her and she remained composed in all her matches. Oudin’s rise to fame has been a rather quick one. Growing up in Marietta, Georgia, her and her twin sister (born one minute apart) played tennis and at a young age she realized that she wanted to make a career out of the sport. She has been homeschooled since she was six, and focused all of her efforts on tennis. The experience at the U.S. Open was a whirlwind for Oudin, meeting tennis idols for the first time, and becoming a larger target in the media’s collective eye. All of these new experiences certainly may have affected her on-court play in Wednesday night’s match. Oudin is growing up fast, and it appears that she will be a force on the tennis circuit for years to come. Her maturity and natural talent for the game knows no age limit, as the seasoned veterans now simply look like old timers. Contact David at email@example.com
Big Ten Has Big Reputation, But Results Are Lacking Stillman Sports By Chris Jandreau, Stillman Sports Writer Over the past few years the Big Ten Conference has lost its label as being one of the powerhouse football conferences. While the Big Ten gets a lot of hype and has three of the most historic teams in college football history, the performance of this conference hasn’t matched past expectations. In last year’s bowl games teams from the Big Ten went 1-6, only the MAC at 0-5 was worse. The Big Ten has only had two national champions since 1969. The teams that claimed those titles are Michigan in 1997 and Ohio State in 2002. The performance of the conference may be attributed to the fact that football is bigger in the South and West than the Midwest. No 2009 high school recruits ranked in the Top 25 by Rivals.com were from a state with a Big Ten team and none of those athletes signed with a Big Ten team. “It's become apparent in the Midwest that the rare guys who can change the game on a dime are few and far between because of the talent pool,” Rivals.com editor Jeremy Crabtree said. “The Big Ten schools have to go to new territories. They have to go to Florida.” Ohio State, Penn State, and Iowa were the only teams to be ranked in the AP Top 25 preseason poll from the conference. Ohio
State was ranked sixth, Penn State ninth, and Iowa came in as the 22ranked team. Only one BCS conference had less ranked teams and that was the Big East, which had none. The Mountain West Conference, which isn’t even a BCS Conference, also had three ranked teams. The season started well for the conference as the teams combined to go 10-1 in the first week of the season, but that’s not saying much based on the opponents they played. Illinois and Minnesota were the only teams to play an opponent from another BCS conference. Illinois lost to Missouri 37-9 and Minnesota beat Syracuse 2320 in overtime. Ohio State beat Navy 31-27, a game much closer than Buckeye fans had hoped. Navy scored on a 24 yard touchdown run by quarterback Ricky Dobb’s with 2:23 left in the game to make it 29-27. When Navy went for the two-point conversion to tie it up, Brian Rolle intercepted Dobb’s pass and returned it all the way. Navy failed to recover the onside kick and Ohio State held on to win the game. After that performance, which proves the Big Ten has weakened, Ohio State dropped to eighth in the AP Poll following the first week. Contact Chris at firstname.lastname@example.org
Rangers on trail of Red Sox for wildcard spot By Matt Bartlett, Stillman Sports Writer At the start of the season it would likely have been difficult for baseball fans to imagine the Texas Rangers, owners of eight losing seasons in the previous nine, to be in the middle of a playoff chase come September. That once laughable dream is now reality as
Photo courtesy of theinsider.com Josh Hamilton looks to help Texas catch the Sox.
the Rangers trail the Boston Red Sox by just two games with three weeks left to play. The Rangers did their part in head-tohead play against the Red Sox in 2009, winning the season series by taking seven of nine games. However, with a two-game deficit in front of them and no more matchups against Boston, the Rangers must hope for some outside help if they are to make the playoffs for the first time since 1999. The remaining schedule does not bode well for the Rangers, primarily because the Red Sox have very weak competition through the rest of September. Boston’s final seven games come against the lackluster Blue Jays and Indians, and they also draw seven games against cellar dwellers Kansas City and Baltimore. The key for Texas to make the playoffs this season is going to be to do what they have done fairly well all year, defeat its division rivals in the American League West (24-13 record against the division entering the weekend). Texas has only one series this year remaining against a non-AL West opponent, that being against the struggling Tampa Bay Rays. Twenty of their final 23 games come
against the Seattle Mariners, Oakland A’s, and division-leading Los Angeles Angels. The question mark for the Rangers has historically laid within their pitching staff, however this year they have experienced quite a turnaround and find themselves in the top five in team ERA in the American League. Scott Feldman (16-4, 3.46 ERA) is leading the way in a breakout season for both himself and this pitching staff as a whole. The offense has performed just as well, as they are in the top five in the league in runs scored. Yet with all that is going right for the Rangers, the Red Sox will be the team fans should expect to see in the playoffs. With a remarkably easy September schedule, minus one series against the Yankees, they should cruise towards a second consecutive wild card berth. Ultimately Boston’s experience and familiarity with playoff races should help the Red Sox prevail. As for Texas, there is always next year.
Contact Matt at email@example.com
Super Seven 7. Four men stole the monument honoring Baltimore Orioles great Cal Ripken at Camden Yards. It was recovered after the men were arrested around two hours later. 6. Contract negotiations between Dwyane Wade and the Miami Heat have come to a halt as the NBA’s leading scorer from a year ago will likely test the free agency market in the summer of 2010. 5. Michael Jordan selected former N.C. State star David Thompson to present him at the BA Hall of Fame ceremony. Jordan leads a class that includes David Robinson, John Stockton, and coaches Jerry Sloan of the Utah Jazz and C. Vivian Stringer of Rutgers. 4. John Madden will be an unpaid advisor to NFL commissioner Roger Goodell. As of now, he will assist Goodell in making decisions affecting the game. 3. Former Kentucky basketball coach Billy Gillipsie has checked himself into a rehabilitation program in Houston following his DUI arrest on August 27. 2. After comments made by Brett Favre that the Jets mishandled his bicep injury last season, the team’s general manager, Mike Tannenbaum, says Favre should have been listed on the injury report and the Jets could be disciplined for failing to do so. 1. The BA could have replacement referees officiating the beginning of the exhibition season. This situation would be the first time since 1995, after negotiations broke down last week. One problem the referees have is that they feel commissioner David Stern is negotiating in bad faith.
THE STILLMAN EXCHANGE
TUESDAY, SEPTEMBER 15, 2009
Former HLPA Executive Director Kelly removed from position over trust By Travis Tosoni, Sports Business Writer For the fourth time in five years, the
utive director. Paul Kelly was removed from the position early last week. Kelly’s service lasted only 21 months,
Photo courtesy of SI Lindros (right) was one of the first players to bring to light the problems that HLPA had with Kelly.
National Hockey League Players’ Association will be looking for a new exec-
Sanctions laid on Chelsea; restricted from purchasing players until 2011
and NHLPA general counsel Ian Perry will take over as interim executive director until
a suitable replacement is found. In the past year, questions about Kelly’s actions really began to surface. An incident involving former NHLPA ombudsman Eric Lindros was the first curious case. Lindros presented a report to the NHLPA which contained problems that fellow employees had with Kelly. When Lindros read a letter written by then-NHLPA human resources director Sara Zlabis, it hinted at Kelly’s questionable review process for employees. She was eventually fired a few months later. Current ombudsman Buzz Hargrove has said he has fielded numerous complaints regarding Kelly since February, and the main problem seemed to be that Kelly was unwilling to listen to other members of the NHLPA. These complaints led to the formation of a player committee at a June NHLPA meeting, to further investigate the claims. The four players leading the committee consisted of Brad Boyes of the St. Louis Blues, Andrew Ference of the Boston Bruins, and Mike Komisarek and Matt Stajan of the Toronto Maple Leafs. On August 30 in Chicago, the 27 player committee met to discuss the findings of their investigation. The general consensus was that Paul Kelly was no longer considered an adequate leader of the NHLPA. At the meeting, the four players revealed their findings and ombudsman
Hargrove made a presentation. What the players discovered was that Kelly was admired for his communication skills, however, his inability to increase league revenue and negotiate a new Collective Bargaining Agreement were both major concerns. They ultimately felt that Kelly should be removed from his position. Hargrove’s presentation sealed Kelly’s fate. He discovered emails where Kelly requested the sealed, confidential transcripts from a June players meeting. That particular meeting in Las Vegas was where the investigation committee evaluating him was formed. Hargrove also claimed that Kelly obtained notes from the meeting by requesting them from the court stenographer who was present at the time. This action did not follow NHLPA protocol. Soon after, the 27 representatives were asked to vote on Kelly’s job. The results showed a 22-5 decision in favor of firing Kelly. The National Hockey League now finds itself one year away from the expiration of the current CBA, without a representative for the players in the upcoming negotiations. The Paul Kelly saga is yet another example of uncertainty that has surrounded the NHLPA since the lockout of the 2004-2005 season. Contact Travis at firstname.lastname@example.org
Alltech makes a strong investment in World Equestrian Games sponsorship
By Ian Baker, Sports Business Writer FIFA has banned English soccer giant Chelsea from buying any players until 2011. In 2007, Chelsea pursued the signing of 16-year-old French winger Gael Kakuta. Chelsea was found guilty of inducing Kakuta to breach his contract with the French club Lens. Kakuta signed a contract to the Lens training group at the age of eight. Kakuta has also been banned from playing in official matches for the next four months. In addition to the two year signing ban and the four month match ban, FIFA has levied fines on the English side. Kakuta must pay 780,000 Euros, for which Chelsea is jointly liable, according to the BBC. Also, Chelsea must pay Lens a training compensation fee of 130,000 Euros. Lens president Gervais Martel feels the ruling by FIFA is fair and will send the right message to clubs breaking the rules. “We expected this kind of decision,” Martel said to BBC. “The player was under contract with us and they came and stole him away from us.” The BBC reported that Chelsea is planning to mount the strongest appeal possible. BBC also reported that Chelsea feels the sanctions are inconsistent with the alleged offense. These infractions have also brought up accusations by FIFA president Sepp Blatter and Union of European Football Association’s president Michael Platini. The BBC reports Blatter calling Chelsea’s action “child slavery” and Platini calling it “child trafficking.” With many games still remaining in Chelsea’s future, how will the fare with the sanctions placed on them by FIFA? Contact Ian at email@example.com
Photo courtesy of Alltech Even though CEO Pearse Lyons doesn’t know much about sports sponsorships, he surely struck gold for his company with the World Equestrian Games.
By Bryce Vorters, Sports Business Writer When people think of companies that have major effects on certain sports they normally think of super companies like Nike golf and Reebok NFL apparel. Companies like these gained their noteriety through tireless hours of work advertising and growing their brand through their respective sports. When it comes to these super brands there seems to be an emerging company in horse racing and equestrian sports. Nicholasville, Kentucky-based Alltech is a global animal nutrition supplement maker that recently invested $20 million into its effort to become a superbrand. The company, headed by CEO and Co-founder Pearse Lyons, decided in 2006 to invest an
initial $10 million in sponsorship of the 2010 FEI World Equestrian Games, not knowing what his company would make of it. The company chose to assign 12 people to maximize its investment and that they did. After investing another 10 million dollars in activating their investment, the company was able to get their name on 110 million feedbags worldwide and create two new suppliment products that it believes are going to boost its sales over the next five years. Lyons has said Alltech will accrue $200 million in marketing value for the $20 million spent on the sponsorship investment. Although the immediate impact is highly lucrative for the company, it believes that the key to its investments is going to be
FL BLACKOUTS ...continued from page 1 Some NFL teams are approaching this upcoming season with a new outlook on selling tickets. The New York Jets, who usually have a strong fan base, are sending out a viral marketing program, which is going to include a personalized message with the fans name included. Many teams are accustomed to falling back on big corpo-
shown in the future. Since NBC plans to air six hours of the games on national television the company expects more national exposure, possibly making equestrian a bigger sport in the U.S. But, Alltech believes the international market tuning in is going to open new doors abroad, which it argues will make the company truly a super company. Lyons believes his initial sponsorship was such a good investment that the company has already announced its sponsorship of the 2014 games. Contact Bryce at firstname.lastname@example.org
rations to buy out the rest of the tickets, but these harsh economic times are diminishing this way out. Only time will tell if this is going to significantly hurt the NFL’s overall business structure. Contact Anthony at email@example.com
TUESDAY, SEPTEMBER 15, 2009
THE STILLMAN EXCHANGE
Gonzalez gets three-year extension; SHU slated to play game on CBS By Tony Cramond, SHU Sports Writer Bobby Gonzalez has been given a few more years to bring Seton Hall’s basketball program back to the top of the Big East Conference. Gonzalez signed a contract extension on Thursday that will keep him in South Orange until the end of the 2014-2015 season. The terms of the contract have not been revealed, according to CBS Sports. Gonzalez has recorded a record of 4746 during his first three seasons with the Pirates. However, these wins haven’t helped the Pirates to move up in the standing of the Big East Conference, arguably the toughest conference in the country. Seton Hall has been near the bottom of the conference for the past three seasons. However, Gonzalez has been able to capture some surprise upsets in his time here. Last season Seton Hall upset then 12ranked Georgetown following a victory over 19-ranked USC earlier in the year. With Gonzalez is off the hot seat now, but everything will depend on whether the Hall makes the playoffs. Gonzalez’s job now secure, the coach can Also, it has been announced that Seton nationally televised game is a big step for focus on bringing Seton Hall basketball to Hall will have a game on CBS this season Seton Hall, giving the program a chance to the upper echelon of the Big East. against West Virginia on December 26. This gain publicity.
If the team is able to perform well, this can open up the door to trying to sign high level recruits and bring more attention to the Seton Hall basketball program. With the season only two months away, expectations are high for Seton Hall to deliver on what is being called the “Next year is this year” season. The season’s goals lie in the hands of returning players: Jeremy Hazell, Eugene Harvey, John Garcia, and Robert Mitchell as well as a successful recruiting class bringing in power forward Ferrakohn Hall and a new group of transfers, which include Herb Pope from New Mexico State, Keon Lawrence from Missouri, and Jeff Robinson from Memphis, who will join the team after the first semester. Seton Hall looks poised to make a long run in the Big East Conference tournament and hopefully the NCAA Tournament. Only time will tell if Seton Hall has made a good choice in giving Gonzalez an extension. This is the year he has to make it happen. Contact Tony at firstname.lastname@example.org
Gross, women’s soccer team look to build on early season success By Anthony Holesworth, SHU Sports Writer The Seton Hall Women’s soccer team is off to a blazing start. Following a perfect 3-0 pre-season, the team was on fire entering the regular season. After a 2-0 loss to league-leading Maryland in the season opener, the Lady Pirates have bounced back in a big way with a winning
streak of three games and counting. The first win was a 4-2 come-frombehind victory at home against Fairfield on August 31. The high points of the game were two clutch goals by junior Nicki Gross. The other two goals were scored by sophomore Ashley Beamish and freshman Stephanie Soma. On September 4, the team followed up
Seton Hall’s Buried Treasure Seton Hall Baseball ran an exposure camp to allow high school baseball players to show off their talents in a recruiting contest. The camp held approximately 56 young athletes and allowed for them to compete in a simulated game as well as individual workouts. The Seton Hall Golf team showed their academic prowess as they were one of only seven Division-1 programs to receive the President’s Special Recognition by the Golf Coaches Association of America for a team G.P.A. above 3.5. Although not yet a Pirate, Seton Hall Baseball top recruit David Bachner will forever be remembered as one of the most talented left handed pitchers this state has seen. Bachner, an incoming freshman, passed away August 11, but will forever remain in the hearts of the Seton Hall Community.
Women’s Tennis continues to look outside the United States for their talent as they bring in Karina Cordero from Venezuela to join the girls for the fall in order to fill the large footsteps of graduate Danielle Viola. Cordero was voted as the top under-18 player in all of Venezuela last year. Former Army assistant coach Ty Grace joins the Pirates this year to assist Women’s Basketball head coach Phyllis Mangina. Grace not only helped with the coaching efforts at Army, she doubled as the recruiting and alumni effort coordinator.
their win against Fairfield with another come-from-behind victory. This time it was a 2-1 win against Monmouth with both of Seton Hall’s goals scored by sophomore Danielle Schulmann. Game three was an impressive 4-1 win against Fordham on September 6. This game saw two goals from Gross and one goal apiece from sophomore Wiebke Balcke and senior Kaitlyn Rogers. To further emphasize the Lady Pirates’
recent success, Gross was named the Big East Player of the Week last week. Her four goals and one assist in the past three games have been more than instrumental to the team’s success. The team is looking to keep up its high level of play.
Contact Anthony at email@example.com
Preseason All-Big East selection Martinez leads men’s soccer team By Kayla Mjaatvedt, SHU Sports Writer The Seton Hall Men’s Soccer team was picked to finish sixth in the Blue Division this season, according to the NCAA Men’s Soccer Preseason Poll. The Pirates showed great potential as the team defeated Army, 3-1, on August 19 and dominated Saint Peter’s with a 6-0 shutout on August 27. The team’s starting line-up looks promising as it starts one senior, six juniors, three sophomores, and one freshman, highlighted by junior Brayan Martinez, who was selected to the 2009 Preseason All-Big East team. After going 2-0 in the preseason the team has managed to win two of its first four games. The Pirates two losses came at the hands of Monmouth (3-0-0) and Princeton (2-0-0), each game was lost by a single goal. Although the Pirates were unlucky at the end of the Princeton game, junior midfielder captain, Steven Rose, netted a pair of goals, including an effortless penalty kick. The Pirates’ win on September 4 against University of Pennsylvania (0-1-1) was achieved with the help of junior Andrew Welker scoring two goals in the first fifteen minutes of the game. Junior Dritan Sela helped to increase the Pirates lead giving the Pirates a 3-0 advantage in the 29-minute of the game. After the Quakers managed two goals on Seton Hall senior keeper Paul McHenry, the Pirates stepped up to hold off Penn in the final minutes of the game. Thanks to the dynamic goals from juniors Bryan Longo and Dritan Sela, the
Photo courtesy of SHU Athletics Coach Manfred Schellschedit has guided Seton Hall to a strong start for the soccer season.
Pirates were able to boost their record to 22-0 after an exceptional win against Virginia Commonwealth (2-1-0) on Friday. The Pirates’ defense did a remarkable job during the match as well. McHenry made an outstanding diving save during the Rams’ penalty kick in the 75-minute of the game. The Pirates begin a three-game road swing against Stony Brook at presstime, followed by Syracuse and St. John’s, before returning home to face rival, Rutgers. The Pirates and Scarlet Knights face off on Friday, September 25 at 7:00 pm at Owen T. Carroll Field. Contact Kayla at firstname.lastname@example.org
THE STILLMAN EXCHANGE
TUESDAY, SEPTEMBER 15, 2009
Obama Steps Into Healthcare Melee By Rachel Ressler, Domestic News Writer
Comprehensive healthcare has been a topic of debate since Theodore Roosevelt was president in the first decade of the 1900s, and in his speech Wednesday night, President Obama said he is “not the first President to take up this cause,” but “is determined to be the last.” He outlined the most important parts of his speech, saying they were essential knowledge. First, he said, for people who are currently insured, there is absolutely nothing in the plan that will require a change in plan or doctor. However, there will be new rules that insurance companies would be under.
Under his bill, it will be illegal for insurance companies to deny coverage because of a pre-existing condition or a cap on the After standing on the sidelines of amount of coverage you can be given. In the healthcare debate for most of the sumaddition, insurance companies will be mer, President Obama offered his thoughts required to cover regular check-ups like on reform on Wednesday, September 9, in a mammograms and colonoscopies, because 47 minute address to Congress and the that “makes sense, it saves money, and it American public. saves lives.” Vowing to “not waste time with For those Americans who are those who have made the calculation that uninsured, President Obama proposed an it’s better politics to kill this plan than “insurance exchange – a marketplace where improve it,” President Obama aimed to individuals and small businesses will be give direction to a Congress that has been able to shop for health insurance at competfighting along partisan lines since he was itive prices.” For those who still can’t elected. afford insurance, tax credits will be available. In his speech, President Obama offered a somewhat modified version of his past goals, stating that he hopes to cover 30 million currently uninsured Americans, rather than the 46 million he had cited in previous discussions. The White House attributed the difference to illegal immigrants and people who would not buy insurance whether available or not. President Obama addressed both groups in his speech, saying that his plan would not cover illegal immigrants- to which Rep. Joe Wilson shouted, “You lie!” President Obama also addressed those, “particularly the young and healthy” who do not buy health insurPhoto courtesy of the ew York Times ance. Such “irresponsible behavior,” President Obama addressed a joint session of Congress on September 11 laying out his vision for reform of he said, will “cost all the rest of us the country’s healthcare system. “I am not the first president to take up this cause, but I am determined to money.” However, President Obama be the last,” Obama declared in his speech. proposed treating basic health insur-
Photo courtesy of C Rep. Joe Wilson (R-SC) shouts “You lie! to Obama’s claims about illegal immigrants and healthcare reform. See ews Briefs for more.
ance like auto insurance- everyone will be required to have it. He also discussed concerns over his healthcare plan that have risen in the last few months. He said, there will not be a board of medical specialists to euthanize the elderly, nor is he trying to put insurance companies out of business. His plan will cost $900 billion, less than the country has spent on wars in the last 10 years. President Obama estimated that most of this money could be found in the savings that will come with healthcare reform. President Obama believes “we can replace acrimony with civility, and gridlock with progress.” However, to a unified laughter through the chamber, he also admitted that there “remain some significant details to be ironed out.” Contact Rachel at email@example.com
Supreme Court Hears Case against Campaign Finance Laws By Anthony Fratanduono, Domestic News Writer In a rare September session, the Supreme Court has opened its doors and is hearing a case that could potentially reshape campaign finance law by removing governmental regulations on corporate expenditures involved in federal elections. The case, Citizens United v. Federal Election Commission, is being appealed to the highest court on the basis that a corporation’s right to freedom of speech is being violated. The problem began in 2008, when Citizens United, a conservative advocacy group, created the film, “Hillary: The Movie”, which critically depicted the then Democratic presidential nominee, Hillary Clinton, in a negative light. At the time, Clinton was in a heated primary election with current President Barack Obama. Under the current cam-
paign finance law, the producers would have had to disclose the financial supporters of the film. With it being supported partially by corporate donations, the FEC claimed Citizens United was in violation of the McCain-Feingold Act of 2002. The bipartisan piece of legislation was created to control the use of business contributions in elections, specifically addressing the issue of “electioneering communication”. The term, used when a corporation or a union spend their funds on media ads to show support or dissent for a politician that is running for office, is prohibited under the legislation what the FEC accuses Citizens United of engaging in with the Hillary film. The campaign reform was done with the intention of ridding the election process of any corruption from large corporations with even larger treasuries. It is believed by some that due to
Photo courtesy of ew York Times Justice Sotamayor, left, will be in the spotlight during the case as the newest member of the Court.
the accessibility of such funds, their political agendas could be much more widely expressed and thus, have a greater influence on the general public without the people knowing who funded the ad or in this case, the film. Opponents of the law refute this notion, stating that a corporation’s voice is being unlawfully restricted. It is, they argue, not only their privilege but also their
right to contribute in an election. W h i l e it is still unclear as to whether the Supreme Court will uphold or overturn the lower courts’ decision on the role of the corporation in campaign finance, their ruling will be felt in the 2010 congressional race.
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President Gives Controversial Speech to Students By Padmavathy Sonti, Domestic News Writer As many of America’s schoolchildren prepared to go back to school this past week, President Obama provided them with words of encouragement. Despite the growing controversy surrounding the content of the speech, President Obama delivered it at a local high school in Virginia on Tuesday, September 8, 2009. Throughout the speech, President Obama urged students around the country to fulfill their educational responsibilities.
He further encouraged students to achieve success through hard work and hope. “The story of America isn't about people who quit when things got tough. It's about people who kept going, who tried harder, who loved their country too much to do anything less than their best,” insisted Obama. Days prior to the speech, many critics, including parents and conservative groups, saw this is as a means for the President to promote his political agenda. Florida GOP chairman Jim Greer stated that the speech would spread
“President Obama’s socialist ideology.” In response to such criticism, Robert Gibbs, the White House Press Secretary, said “it's a sad state of affairs that many in this country politically would rather start an 'Animal House' food fight rather than inspire kids to stay in school.” In an attempt to put an end to the ensuing uproar and speculation, the White House released the transcript of the speech on Monday, a day before the speech was delivered. Many praised President Obama’s efforts to reach out to the youth. Former First Lady, Laura Bush, stated her support
by saying that “there's a place for the president of the United States to talk to school children and encourage school children.” At the close of his speech, President Obama optimistically asked students to “put [their] best effort in everything [they] do.” Ultimately, the schools were left with the choice to broadcast the speech to their students.
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TUESDAY, SEPTEMBER 15, 2009
THE STILLMAN EXCHANGE
Summer Season Scoop - What You May Have Missed By Marc Nation, Domestic News Writer
congress seem poised to pass some type of reform bill in the relatively near future. This summer has been host to one the most heated national debates ever on healthcare. It is hard to ignore the mild global panic that swine flu inflicted on the world this summer. The swine flu, also known as the H1N1 virus, raised fears of a severe outbreak not only nationally but international-
itary campaign. This past summer went by with the Department of Health and Human Services and the World Health Organization scrambling to stay ahead of the disease, and Roche Laboratories, the maker of Tamiflu, rushing to perfect and produce enough of the flu treatment and prevention medication.
when it started. Gov. Sanford’s affair with an Although the academic world Argentinean woman, Sarah Palin’s resignamight enter into a lull every summer, the tion from office, and the unfortunate death ever-intriguing world of politics and policy of Sen. Ted Kennedy are all significant rages on. Here are a few things that garevents. nered headlines in the political spectrum Barack Obama now has less- thanthis summer: superhuman approval ratings, and the war After the contentious passage of in Afghanistan has taken a turn for the TARP and the economic stimulus packworse. age in October and February respectively, On the international scene, the this summer the economic forecast fell exictement did not fade. into better light. The disputed presidential election The stock market has been up in Iran led to massive protests in the nearly 50 percent from its lowest point streets of Tehran and the possibility of during the turmoil and the jobless rate has change in the country. A coup in consistently risen less, meaning second Honduras resulted in a democratically deviation gains. elected president expelled from the counThe money from the stimulus try, worldwide condemnation and a package finally trickled down to the state regional standoff to ensue. In Asia, the and local governments, and projects fundreclusive North Korea regime once again ed by the package have begun to pop up flexed its military muscle by disregarding all over the United States. international warnings and restarting its The idea of a second stimulus nuclear progra, test-fired missiles into bill was brought up and torn down this neighboring waters, and increased regionsummer, and although Obama, Geithner, al security concerns. and Co. will not say we are out of the Summer 2009 was action packed, woods yet, the economy is actually startbut politics does not heed seasons. ing to grow. It’s been a bumpy road since With many of the stories from the Lehman Brothers collapsed on summer still developing, we can expect to September 15, 2008. see much more. How long will it take to As one of the Obama adminissee solid economic recovery in the countration’s most ambitious undertakings, try? Will healthcare reform be implementthe debate on healthcare reform has domed in the country and will it be along the inated political discussion this summer. This summer’s news saw much action that will undoubtedly carry into the fall season. Photos courtesy of lines of Obama’s proposed plan? Does the Those on either side of the swine flu still pose a considerable threat? US ews, Y Daily ews, ew York Times, and ew York Times. debate have been vehemently articulatHow will current international events ing their stances on the issue. From Sarah unfold and what others could arise? Palin’s “death panel” argument to irate con- ly, it caused diplomatic tension between Although swine flu was the great From here on out should be just as stituents at town hall meetings, the conser- countries wary of importing more of the health concern of the summer, the onset of interesting. vative opposition to healthcare reform have disease. flu season should certainly perpetuate the certainly grabbed many headlines. Swine flu’s spread has been disease as a source of concern. Contact Marc at Regardless of the staunch opposi- tracked almost in a case by case basis and As usual, the summer has left us firstname.lastname@example.org tion to reform, Obama and the Democratic its progression mapped out similar to a mil- with a much changed political arena than
Jobless Rates Still High By Amanda Genabith, Domestic News
have looked for a job in the last four weeks. What about those who have Writer claims that the United stopped looking? They have been classiStates economy is starting to bounce back fied as “discouraged workers”- people who from recession have been supported by have looked for a job in the last year, but positive trends in select economic indica- not in the last four weeks- yet it has a tors. restricted meaning. A “discouraged workAlthough there is no conclusive er” includes all types of reasons for calling evidence to prove these claims, many off the hunt, such as no more available jobs experts are foreshadowing the recovery or an individual not meeting the required and that with the recovery, there could be a qualifications. rise in job openings. These “discouraged workers,” According to the Wall Street throughout the nation, are accustomed to Journal, July had a record low of job open- their old lives – going to work, attending meetings and living a generally busy lifestyle. Now they sit home, overwhelmed with hurt and fear of the future, trying to justify what they do all day. Many of the discouraged workers are former career professionals now in their older age. Ray Rucker, a 62 year old former facilities manager Kansas expressed his frustrations in an interview with the New York Times. "You send out so much Photo courtesy of the ew York Times and you don't get responses," Mr. Mr. Rucker stands in his old home office. He plans now on Rucker said. "Then when you get transforming it into a reading room. called in, you're treated like ings of 2.4 million. The lack of available you're too old. Why am I doing this?" and suitable jobs is a reality that has been As one woman said “that feeling all too apparent to the people who have of being rejected again and again is hard” been searching for months for a job. but hopefully if the experts are right, there The unemployment rate has slow- will be more jobs to pull these wounded ly climbed over the summer months and as people out of unemployment. of August it has reached a staggering 9.7 percent, a figure which translates to roughly 14.9 million people without a job. But Contact Amanda at amanthe unemployment rate is deceiving; it email@example.com only counts the number of people who
News Briefs Rep. Wilson Raises over Half a Million Republican South Carolina Representative Joe Wilson has raised “more than $700,000,” after he shouted “You lie” during President Obama’s speech on health care reform on Sept. 10. Though he has apologized, his supporters have been sending money to his campaign. Rep. Wilson’s opponent, Rob Miller, has also seen an increase in campaign contributions, raising more than a million dollars as a result of Rep. Wilson’s comment. An Inadvertent Scare on 9/11 The eighth anniversary of Sept. 11 was observed with a memorial service at the Pentagon by President Obama and an inadvertent scare over a Coast Guard exercise on the Potomac River. CNN reported an incident on the Potomac on Friday morning, grounding planes at the nearby Reagan International Airport for nearly half an hour and sparking international speculation. The incident was determined to be a training exercise and the Coast Guard has said they will be reviewing the exercise. Yale Offers Reward for Information About Missing Student Yale University has offered a $10,000 reward for information about a missing pharmacology graduate student. Annie Le, 24, disappeared on Sept. 10, outside of a Yale School of Medicine building. Authorities are examining her computer and campus security camera footage. Ms. Le is without cell phone or wallet, and has not been heard from. She was to be married on Sept. 13, but family members had cancelled the wedding. The Associated Press reported that her fiancé is not a suspect.
World’s Oldest Person Dies at 115 After holding the title of world’s oldest person for nine months, Gertrude Baines, born in 1894, died in Los Angeles on Sept.11, at the age of 115. Attributing her old age to “the Lord, that she never did drink, never did smoke, and she never did fool around,” according to her doctor, Baines was also the oldest AfricanAmerican to vote for President Obama. Space Shuttle Lands in California The space shuttle Discovery landed in California on Sept. 11, after a moisture system over Kennedy Space Center in Florida forced it to reroute. The shuttle had been at the international space station for 13 days, delivering supplies and making repairs. It may end up being the last California shuttle landing, as only six flights remain on the NASA schedule, due to Congressional budget cuts. Protesting Big Government with a March on the Capital Thousands descended on Washington, D.C. for a Saturday, Sept. 12, protest of big government that was touted as the “culmination of summer protests at town meetings,” according to the New York Times. Protesters came for reasons from health care to spending practices- but signifying a general distrust of government. Widely supported by Republican Congressional leaders, the protest began with a kickoff rally attended by Minority Leader John A. Boehner and other members of Congress.
THE STILLMAN EXCHANGE
TUESDAY, SEPTEMBER 15, 2009
Controversy Surrounds Brown’s Release of Lockerbie Bomber By Amelia Snoblin, International News Writer Since the release of the Lockerbie bomber last month, British Prime Minister Gordon Brown has found himself in a controversial situation. With public pressure, Brown announced on Sunday, September 6 that Britain would be supporting a lawsuit against Libya by victims of the Irish Republican Army bombings. Libya is resistant to paying compensation to the victims, though it has admitted that the country under leader Colonel Muammar Gaddafi supplied explosives and arms to the IRA during the 1980s and 90s. According to the Associated Press, the lawyers in charge of the case expect Libya to pay $16 million to each member of the growing list of IRA victims. Prior to his announcement, Brown had been receiving widespread criticism for his lack of response in the outcry following the release of the fatally ill bomber Abdel Baset al-Megrahi. Many critics accused Brown of putting the security of oil deals before justice for the victims. Britain has only recently developed a trade relationship with Libya. In prior statements, the British government had cited the need to stay friendly with Libya for the
sake of Britain’s oil interests as well as anti-terror intelligence tips. Some argue that this turnaround has come too late to save Brown’s credibility. In a highly publicized letter to the lawyer representing the IRA victims, James McCue, Brown stated that he did not “consider it appropriate to enter into a bilateral discussion with Libya on this matter,” and in another letter stated that Libya would be “strongly opposed to reopening the issue”. According to the Belfast Telegraph, the lack of action has not been limited to Britain, but has also been seen in the Irish Republic in the 1980s when there was no communication with the Libyan government after a sizeable arms shipment was intercepted off the coast of the Irish Republic. As the Financial Times indicates, one of the reasons for Brown’s change of heart lies in strained relations with the United States. Due to opposing views on Libya, Brown has not spoken with President Barack Obama for over a month. As the New York Times reports, while the British government is not communicating directly with the Libyan government, they are attempting to obtain compensation for IRA victims through “a dedicated Foreign Office support
Reality TV Scam in Turkey By Maggie Dougherty, International News Writer Have you ever wanted to be famous? Perhaps star in a reality TV show? Nine women in Riva, Turkey, on the outskirts of Istanbul, wanted to fulfill this dream and ended up living a nightmare. The women answered an advertisement Photo courtesy of Mail Online seeking contestants for a “Big Brother” type reality Villa in Instanbul Turkey where nine young women were held TV show entitled “ under the misconception that they were on a reality T V show while their photos were sold on the internet Somebody’s Watching You”. testants were 16 and older, controversy The nine participants stated that has arisen as to the identity and age of one they signed a contract banning them from teenage girl. any outside contact with friends and famTurkish police detained four peoily. If this contract was breached or if they ple who lived with the women during their left the show before completing two captivity. All were released from custody months of filming, they were obligated to pending the outcome of a trail. Their idenpay a fine of $33,000 U.S. dollars. tities and the charges brought upon them While Grup Bilisim Electronic, Trade, were not released. Police are still searchCommunication and Advertisement ing for the gang’s leader who sold the Company claimed the show would be images of women to the internet site. The aired on Turkish television, the women homepage of the site carries a statement found themselves being sexually exploit- denying the news reports. It also still cared. The communication ries a link to the competition. and actions of the production company Hilmi Tufan Cakir, the legal are questionable as photographs of the counsel for Grup Bilisim Electronic, women were being sold on the internet. Trade, Communication and Internet users could vote for their favorite Advertisement company, said that eight of contestant and subscribe through their the nine women had decided to sue but mobile phones to view more of the action. denied that they had been held captive. Mr. Cakir denied newspapers accusations The women realized they were that naked pictures were sold to a website. being duped soon after arriving at the villa In addition, he claims the girls were not when they were instructed to participate tricked or ever threatened by the producin bikini contests. Most were reluctant to tion company. In fact he stated, “They leave because of the hefty fines and knew that this competition would be aired threats by the production company. on the Internet live and that this broadcast After two months of captivity in would not be open to everyone”. the villa, the women were found and In a country with relatively low released on September 7 when police social mobility, becoming a Turkish realiraided the facilities after receiving a ty TV star is a quick ticket up the social phone call from one of the women’s par- ladder. A mother of one of the participants ents. At the time of admitted, “We were not after the money the raid, police noted broken glass at the but we thought our daughter could have entrance of the two-story stone villa and the chance of becoming famous if she around the pool. There was also com- took part in the contest.” pelling evidence that surveillance cameras had been removed as a room containing Contact Maggie at editing and video-monitoring equipment Margaret.Dougherty@student.shu.edu remained undisturbed. While most con-
for the victims’ campaign”. In 2004, Britain failed in its attempt to negotiate compensation packages with Libya. This failure is a reflection of the informal agreement between Britain and Libya to, as Ed Balls, the government’s schools secretary, told the BBC, “recognize what had happened in the past, put it behind us and move on”. The families of victims, however, feel differently. As Colin Parry, who lost his son Tim, 13, to an IRA bomb in 1993, states, “It’s now time for Libya to acknowledge the pain and suffering they inflicted by supporting the IRA and show the same compassion to its victims”. Victims are welcoming the current shift in mindset, no matter the political agenda. According to the Irish Times, lawyer in charge of the class action, James McCue, applauds the change and called it “a great day for victims”. He added, “I am confident that [Gordon Brown’s] moral and logistical backing for British victims of Libyan Semtex will ensure that they now receive justice and compensation, as did the U.S. victims when they received the support of their president”. Contact Amelia at firstname.lastname@example.org
Indian Pilots’ Labor Dispute Reaches Crisis Point By Raphael Baseman International News Writer
intervened, asking both sides to travel to the nation’s capital to resolve the crisis. Talks are scheduled to begin on Friday. Both The massive “sick-leave strike” by sides feel pressure to resolve the conflict as Indian pilots continued on Friday, September soon as possible. NAG head Girish Kaushik 11.The strikes were a result of the termina- in an interview with the Times of India stattions of eleven Jet Airways pilots and have ed, "We will have conciliation talks with the led to widespread disruptions in airline serv- management at the labour commissioner's ice. office in Delhi on Friday. The problem The dispute began when two senior would be solved once all the four boys pilots were fired in August after they joined (pilots) are taken on board. ..[the chief labor the newly created National Aviators Guild. commissioner] has assured me that justice According to NAG, the two pilots were fired would be done. If that is done, I will ask my after trying to get the newly-formed union pilots to get onto their jobs within 30 secrecognized by Jet Airlines’ management. onds." Three more pilots were fired earlier this In 2008, Jet Airways announced month, including the head of the NAG. More plans to lay off 1,900 staff in an effort to cut have followed since the strike began costs, but was forced to reinstate them after Monday. government pressure due to employee comWhen talks between NAG and plaints. management broke down over the reinstateJet Airways India is the second ment of the two fired pilots, Jet Airways largest airline in the country, and with half of pilots began calling in sick in protest. This its 760 pilots on strike, it has been forced to mass sick-leave is a common form of protest cancel nearly 700 local and international by Indian workers who are not allowed to flights. Though India’s national airline, Air organize formal strikes. India, has offered help to Jet Airways, the However, the union crisis has affected says the strike will 28,000 passengers. continue until the According to pilots are reinstated. Reuters, the majority of NAG has private Indian airlines indicated willingdo not have unions. ness to commence There is fear that the talks with airline unrest at Jet Airways management once could trigger similar their demands are problems in other airmet, but there is no lines. This could cause a question of disbandsituation similar to that ing the union. which occurred in the Jet Airways cotton textile industry in Photo courtesy of Reuters India said the termiwestern India in the nations were a result Jet Airways customers grow impatient with the 1970s and 1980s, which cancellation of flights due to recent strikes. of indiscipline and was virtually wiped out sought to obtain a by labor unrest. restraining order from Bombay’s high court India’s strict labor laws regulate the on Tuesday, arguing that the mass sick-leave hiring and firing of employees and provide was illegal. "We were assured by the for the formation of trade unions and negotiNational Aviators Guild last night that there ation of wages and fringe benefits, but forbid would be no strike and we went by this unions in the IT sectors and export processassurance. But, we were shocked by the ing zones. Upcoming negotiations will soon mass sick leave by about 360 pilots... it is indicate the future of the airlines and potennothing but a simulated strike,” said Jet tial changes in policy. Airways CEO Wolfgang Prock-Schauer on Monday in an interview with the Times of Contact Raphael at India. email@example.com On Thursday, India’s labor ministry
TUESDAY, SEPTEMBER 15, 2009
THE STILLMAN EXCHANGE
Italy Readies Winds of Change Set to Impact Japanese Economy Itself for Rocky Road to Economic Recovery By Meg Reilly, International Business Writer
By Nicole Blackford, International Business Writer The year 2008 was not an easy one for the Italian economy, but the increasing financial crisis continuing in 2009 has left little hope for change. The increasing unemployment rate is a problem that seems to lack a solution while the current government spending plans are worrying the public. Italy’s GDP had dropped approximately 9.6 percent at the beginning of 2009, the lowest recorded GDP in almost twenty years. Coinciding with the substantial drop, the retail sales percentage has also been falling consecutively for over two years. Furthermore,unemployment numbers have frighteningly increased—by the end of 2009 the total of job losses for the year is expected to reach more than 500,000. In addition to these issues, the government’s spending plans for the upcoming year have the public worried. Some city governments, due to their budget plans and money deficits, have turned to the Superenalotto, Italy’s lottery, in hopes of earning quick money in order to carry out their plans. As a result of the recession, consumers have turned to shopping less or utilizing sales. Furthermore, the Italian people are still suffering from increasingly high prices of fuel. However, this inflation rate is still 11.8 percent lower than it was at this time last year. One attempt at leading the economy towards a recovery was the government’s increase of the inflation rate from 0 percent to 0.4 percent. There should be some hope in the sense that predictions for 2010 include a rise in the GDP and the public spending rate. Public spending reached over 50 percent this year and is expected to stay at a similar rate in the upcoming year. Additionally, sales in the automo-
On August 30, Japan experienced the first change in government between two major political parties since the end of World War II. Hoping for economic change, 70 percent of all eligible voters brought the Democratic Party of Japan (DPJ) into power. The DPJ won control of the government over the former ruling party, the Liberal Democratic Party (LDP). The Democratic Party of Japan’s control of the lower house allows the party to nominate the Prime Minister for Japan; Yukio Hatoyama, president of the DPJ, is the expected nominee. Since 1991, Japan has suffered a recession and now is struggling to attain positive economic growth amidst a global recession. The DPJ won on the promise to incite change in the economy by helping households as the country strives to emerge from its worst postwar recession. Its platform included a plan to overhaul the economic policy in government spending, social safety nets, and the strong reliance on exports in hopes of restoring growth in the economy. Japan has been impacted greatly by the global economic crisis as its export-oriented economy endures declining demand for automobiles and electronics. This drop in demand resulted in an 11.7 percent fall in their Gross Domestic Product (GDP) in the first three months of this year. To combat this issue, the DPJ believes that reducing the tax rate for small firms from 18 percent to 11 percent will put more money into the pockets of the Japanese, as these companies cater to domestic consumers. Reliance on exports and the vulnerability of Japan’s economy, in conjunction with the global economic issues, are
not Japan’s only problem; consumer spending has gone down and the economy has shrunk by 10 percent earlier this year. As the public debt is over 200 percent of Japan’s GDP, there are a number of issues that the DPJ has to tackle before the situation get worse. Currently, the unemployment rate is 5.7 percent, which is the highest in recorded history; this rate could actually be close to 12 percent if the former government did not implement a subsidy program that encouraged companies to keep surplus workers. However, these workers do not necessarily add to the productivity of the company, as many are facing high inefficiency rates due to the lack of transformation into information technology. In an attempt to restore the economy, the DPJ aims to boost growth by a consumer driven approach. The DPJ plans to provide parents with 26,000 yen (about $284) a month per child and also offer free high school tuition. Additionally, the DPJ wants to expand payments for the unemployed as well as provide a minimum monthly pen-
sion of 70,000 yen ($765). Although, as one fifth of Japan’s population is over the age of 65 and the required retirement age is 60, this will surely cause more debt to the country than aid to the GDP. In order to finance these election pledges, the DPJ needs an estimated 7.1 trillion yen ($77.7 billion). Where will this money come from? In May 2009, the Parliament passed a 13.9 trillion yen supplementary budget to fund former Prime Minister Taro Aso’s stimulus plan. His party’s recent defeat has left money that is unspent and available for reallocation. Hirohisa Fujii, contender for the finance minister, plans to redeploy as much as 5 trillion yen in stimulus spending that was planned for “wasteful” programs and government related agencies without a specific purpose. Currently, big businesses are worried that their taxes will increase in order to fund the DPJ’s platforms.
tive industry have been on the rise and are expected to continue increasing. In August alone there was an 8.5 percent increase in the sale of new cars. The exceptional increase is believed to be related to government incentives. Another positive factor is Air France’s bid to take over Alitalia; this takeover could take some weight off the suffering economy’s shoulders. Another positive is Adolfo Urso’s recent visit to Luanda, the capital of Angola.
Urso, the Italian Economy Development deputy minister, planned the visit with hopes of obtaining a mutual attempt, between Angola and Italy, to improve economic conditions in both countries. Trading between the two countries is now expected to reach over $2 billion over the next four years. Italy’s economy is expected to improve in 2010 but the Italian people must survive the rest of the year first. The job loss rate is expected to decrease by 300,000,
there is an expected increase in the GDP, and despite high numbers in unemployment and huge decreases in the country’s exports, many Italian economists are confident that the next five years will lead Italy back to pre-recession financial circumstances.
Photo courtesy of the Guardian Yukio Hatoyama hopes his party can bring Japan out of the recession
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Chinese Companies Search for ew Wealth in Latin America By Rachel Rosenstrock, International Business Writer As China continues to grow and develop, its influence on the world economy only becomes more readily apparent. In the past few years, China has pushed itself toward a rapid growth in trade. In 2009 alone, China will invest an estimated $150 to $180 billon in overseas transactions. This projected figure is up from the $50 billion invested in 2008. For Chinese corporations, Latin America in particular has become a market of increasing importance. Most notably, it is the resources available in this region which are holding China’s attention. In order for China to sustain and provide for its large population, it must rely heavily on outside sources for commodities. Natural resources such as oil, natural gas, copper, and soybeans are in high demand. In addition, China is looking for alternative outlets for trade, especially in
light of the global economic crisis. By diversifying its investments, China hopes to reduce its dependence on the American dollar and open up new markets to carry out its vast needs. China has also begun enacting currency swaps. In March, China and Argentina agreed to an exchange of $10.25 billion; instead of Chinese exporters receiving their revenue in US dollars they will receive Chinese Yuan. This move not only helps to unblock trade financing, but it also pushes forward China’s desire to decrease its reliance on the American dollar. At this time, rather than withdraw from overseas investments, China has benefited by viewing the predicament as a buying opportunity. Within the past year, China has become Brazil’s largest trading partner as well as Argentina’s second largest. For the first time, China has surpassed the United States, which has long dominated the region. Chinese companies have been hard at work procuring deals and invest-
ments to build upon their growing ties. For instance, this past May, Brazil’s state-controlled oil company, Petrobras, reached an agreement concerning Chinese assets with Sinopec, a Chinese Petroleum and Chemical corporation, In exchange for investing $10 billon, Petrobras will provide Sinopec with up to 200,000 barrels of crude oil a day for ten years. This oil will come from the country’s newly developed deepsea fields. All over Latin America, Chinese companies are striking deals that are deepening their presence in this region to previously unseen levels. Chinalco, a Chinese mining company, has recently begun the development of a Peruvian mine at the cost of $2.2 billion. When this mine is completed in 2012, Chinalco will extract the vast amounts of copper from within the mountain. Meanwhile, in Venezuela, up to 16 percent of Venezuelan oil is now being exported to China. Lenovo, a Chinese PC manufac-
turer, has also recently disclosed its plans of entering the retail market in Colombia. They have experienced an overall net loss this quarter, dropping 17.9 percent in global revenues compared to the previous year. However, Lenovo stated that its market share grew in Latin America. Currently, Lenovo is targeting emerging markets hoping to expand its presence in the residential sector. As China looks toward new markets of expansion, Latin America certainly holds enticing opportunities. The region’s abundance of untapped resources as well as its interest in expanding its infrastructure helps to facilitate entry of even more Chinese firms into the region. While China’s presence in Latin America is relatively new, there is no doubt that its influence will only continue to grow and prosper in the coming years. Contact Rachel at firstname.lastname@example.org