Global Markets Fight Back Terrorists; Lumber Liquidators Whacked with Another Settlement; Starbucks Feeds America’s Hungry

The terrorists have not won…


Image courtesy of FrameAngel/

Markets all over the world took a beating because of the cowardly terrorist attacks in Belgium that left dozens dead and many more wounded and forever haunted. Companies dealing in travel and hospitality industries suffered the most today with Royal Caribbean losing almost 4% and Carnival Cruise Lines taking its own 3% hit. Online booking site Priceline Group endured a 3% loss as airlines like Delta Airlines and American Airlines Group lost a couple of percentage points, as well. It’s no surprise, I suppose, that healthcare stocks actually saw increases, as did material stocks. But in a big f.u. to terrorism, the Dow Jones actually picked up a point as global markets rebounded later in the day, even those in Europe. Gold also rose, because well…gold always rise. Investors consider the precious metal as a perennially safe bet. Seems fair.



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The settlements just keep coming in for Lumber Liquidators Holdings. Today’s award goes to the California Air Resources Board (CARB) – I laughed at the acronym too – in the amount of $2.5 million. The number seemed a bit low to me, especially since 40 of Lumber Liquidators 375 stores are in California, not to mention, the company’s flooring has the potential to cause cancer from the high levels of formaldehyde present in them.  Not exactly minor details, I feel. But the other reason I’m scratching my head is because there was no formal finding of any violation, nor was there any admission of wrongdoing by Lumber Liquidators. Just saying. This settlement, by the way, has nothing to do with Lumber Liquidator’s previous settlement with the DOJ that had the flooring company shelling out $10 million to the government agency. Naturally, shares of Lumber Liquidators are up by almost 16% and closed at $13.93. But considering that shares lost more than 70% of their value since that scathing “60 Minutes” report last March, and there are still plenty of class-action suits headed toward Lumber Liquidators, you probably don’t want to hold your breath waiting for the company to fully fiscally recover. In fact, if you ask Kase Capital’s Whitney Tilson,  who is a big fan of shorting Lumber Liquidators, he thinks the flooring company actually has a 50% chance of going bust.

Bon appétit…


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Don’t feel so bad skipping that sandwich you’ve been eyeing at Starbucks. If nobody buys it, you might just help feed someone who is considered “food insecure.” The plan came from baristas and now the coffee chain has made a pledge to donate 100% of its unsold food through FoodShare and Food Donation Connection (FDC). It’s all in an effort to feed the 48 million Americans who don’t have the luxury of knowing if or when their next meal is coming.  It is estimated that 15% of American households are considered “food insecure” while at the same time an estimated 70 billion of food waste is produced by Americans that are far more fortunate. Starbucks had already been donating pastries and other types of foods that had longer shelf lives since 2010. The challenge, however, was how best to preserve the highly perishable products like salads and sandwiches. But now the FDC will send refrigerated vans to all of Starbucks 7,600 plus U.S. locations, pick up all those unsold goodies and fill the bellies of those who could really use them. Starbucks plans to have given out 5 million meals by the end of 2016.


Greece Needs a Man With a Plan; Cruisin’ to Cuba; Starbuck$-ing Your Coffee

Ode to a Grecian fiscal burn…

Image courtesy of  jesadaphorn/

Image courtesy of jesadaphorn/

Today is yet another day where the world gets to sit back and cry as stocks all over the globe continue to go south because the Greeks just can’t seem to get their debt crisis under control. The mood might have improved had Greek officials bothered to come up with some sort of plan to help ease the situation. But as more than one eurozone official put it, they have “no concrete proposals.”  However, Greece’s Prime Minister Alexis Tsipras has a plan…to address the European Parliament on Wednesday, much to the irritation of many a European official, who aren’t eager to bail out Greece, yet again. Germany’s Chancellor Angela Merkel and French President Francois Hollande also have a meeting planned with Tsipras. But both leaders have very different ideas about how to handle Greece. The Germans do not want Chancellor Merkel to give in to the Greeks, once more, and would even like to see Greece out of the eurozone altogether. In fact, one German official would prefer if Merkel would just completely reject negotiations. France doesn’t see the benefits of these actions but doesn’t exactly want to pony up the cash either.


Image courtesy of Gualberto107/

Image courtesy of Gualberto107/

You can now add Carnival Cruise Lines to the list of operators making their way down to Cuba. “All of our research suggests there is huge pent-up demand for the Cuba experience,” a company spokesman noted. As part of the line’s “fathom” brand, travelers eager to visit the island nation will now have the chance to book that dream trip for a mere $2,990 per person – plus taxes and port fees. However, don’t bother bringing extra cash for gambling or booking reservations for snorkeling expeditions. Passengers aboard the Adonia ship, which carries just 710 passengers, will be required to spend eight hours of each of their trip days immersed in Cuban cultural experiences instead. If that sort of trip doesn’t appeal to you, then take it up with the U.S. government as this is all part of its rules and regulations in order to travel to Cuba.  At least you’ll have plenty of time to pack as the ships don’t set sail for the island nation until May of 2016. The tourism industry in Cuba generates more than $2.6 billion and plays a significant role in the nation’s economy. With the U.S.’s entry into the fold, you can expect that role to get even bigger.


Image courtesy of foto76/

Image courtesy of foto76/

Good news for Starbucks. But not for you. Coffee futures fell. A lot. But that cup of coffee you just picked up from the Seattle-based chain just got pricier as Starbucks started charging up to 20 cents more for its brew. The price per pound of coffee was over $221 back in October. But since then the price has fallen 44% to about $124.70 per pound. Overhead is the magic word here as Starbucks has a lot of it, from employee benefits, to rent to..well…coffee.  In fact, 88% of its costs come from goods sold – as in coffee . So, in keeping with corporate spirit, the coffee company has passed those price increases onto its customers. Funny how that works out. If you find yourself just a tad bit irritated by the price hike, then head on over to your local grocery store. and pick up some coffee products from J.M. Smucker. That company owns Folgers and has actually been cutting the cost of its coffee products since the price of coffee has been declining.