Optimism by Richard Crenian

Richard Crenian Blogs
July 6, 2009

Optimistic


I was happy to read on June 22 the heading in the business section of the globe and mail "The Return of Optimism."
It referred to a survey of business executives that responded by a majority (58 per cent) who expected moderate growth for their companies over the next 12 months.
Wow!!!
The other results were 17 per cent for strong growth, 21 per cent for Moderate Decline and 2 per cent for strong decline.
Bottom line, good news!

GM is interesting as it just goes to show big is not better.

The reports showed that the new GM will have lower leverage and a stronger balance sheet, according to the release. Combined with a lower break-even point, this will enable it to reduce its risk, operate profitably at much lower sales volume and reinvest in the business in the key areas of advanced technology and product development, the release said. The new GM will buy subsidiaries outside the United States, which are expected to continue to operate without interruption

Guess who now owns part of GM? Yep the Canadian and Ontario governments with 11.7 percent, no wonder with the 60 per cent ownership of the US and Canada’s 11.7 they are calling it Government Motors. Let’s hope sales will improve, they have been on a declining balance (half the market share), in the last ten years

Yikes about land! If you have bought land in the last 3 years your value may be down anywhere from 30 per cent to 70 per cent. Recently I saw an advert in the Globe that showed a company raising $15 million to buy land in Eloy County , between Phoenix and Tuscon, Arizona. Too bad investors didn’t do the proper research to see that the land went down by 70 per cent in that area.

More in the next blog. Stick with Howard and Darwin. Steady growth, actual numbers are the norm of the day from them. Call them or write, Howard at 403 630 4544, or howardmanley@shaw.ca, or Darwin at darwin@redevproperties.com

Richard Crenian