American Economic Indicators

Much like Atlanta, Knoxville seems to have suffered according to Tam:

Meanwhile, the TeeWee talking heads are cooing at the Dow passing 13,000 again. Investors, they say, are excited about yet another Greek bailout. Let me get this straight: Germany has taken out another cash advance on its maxed-out credit card and given it to its deadbeat cousin, Greece, who swears that this time they’ll use the money to get a haircut and a job, instead of wasting it on hookers and blow again, and investors take this as a good sign?

Every time I hear the words “Leading economic indicators are…” come out of a newscaster’s mouth these days, I expect them to be followed by “…from the planet Mars.”

To add to that, places that should be seeing some kind of uptick in revenue (people not eating steak, but shifting to cheap fast food) are not:

Get this: these deals are usually priced in multiples of EBITDA, that is, the earnings before interest, taxes, amortization and depreciation. For non-accountants like me, all that matters is that annual EBITDA  for this package at the time the sale contract was signed four months ago was roughly $900k, so a sale price of 3x EBITDA (a steal, BTW) would be $2.7 million.

So what happened while we were doing all the due diligence, licensing, and other legal crap to actually complete the sale? Well, in the last three months of 2011, yes food costs rose, but more importantly sales plummeted. I am not going to quote numbers because I can’t, but I can say the combination dropped annual EBITDA to roughly $500k. That means that sale price of $2.7 million was transformed to more than 5x EBITDA, taking this from a really good deal to being some of the most overpriced restaurants in the country.

That also means much more than just “oh one year was $400k worse than the other.” It means that just this past quarter alone was SO bad that it caused that kind of drop to the annual figure for this package of stores.

Something to ponder. Spooky indeed.

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CA’s Salient Points on Gunwalker

Read the post here. Important bits below:

– The Communist President of the United States is well on the path to re-election.

– There is NO – repeat: NO – effective political opposition to the President and his treasonous policies in the House, the Senate, or the judiciary.

– You have an army of more than 2.15 million Federal leeches and tyrants standing over you.

– There will be a massive tax hike on January 1, 2013 that will further tank the already-moribund American economy.

– The few electoral political restraints on the Mighty Kenyan and his stooges will disappear should he be re-elected to a second term.

– The Republican Party is completely finished as anything but a junior collaborator in the destruction of America.

– And most importantly to each of you, you and your families are consider irredeemable kulaks by the Obama regime – suitable only for plunder and eventual relocation to reeducation facilities.

Yes, it can, and will happen here. Yes, some of your neighbors will be cheering this on – at least 44% of them. This is the battlespace in which you will be forced to operate in. There are workflows and processes that will successfully oppose this tyranny.

Prep and plan now. Time truly is running out.

 

As the dark clouds of Gunwalker gather – Is anyone surprised?

Based on what you know about the current group of weasels in dotgov, is any of this truly a surprise to you?

Codrea said a while back (paraphrased):

“There is no way the first black president will fire the first black attorney general.”

And hey listen, it’s not about the dude’s skin color. It never has been. That’s just ‘the other hand’ moving in another circle. I maintain that Holder is doing such a good job where he is that OPFOR would be outright insane to pull him out. He is too bloody effective.

Keep training. Keep up the PT. Stack it deep.

and the band played on

Once again, we are treated to the same excrement, different day:

Just when one thinks American crony capitalism couldn’t hit new lows, here comes Warren Buffett and his personal puppet, the president, proving everyone wrong once more. Because if one thinks there is no (s)quid pro quo for all that “sage” advice that Buffett has been giving to Obama on extracting as much wealth as possible from future wealthy Americans (before they decide they have had enough with this crony shit and leave the country for good), one would be fatally wrong. As it turns out, it is not just natural resources and aquifer purity that Obama had in mind when sealing the fate of the Keystone XL pipeline. No – it appears there were far more relevant numerial metrics that determined Obama’s decisions. Such as the bottom line number of Buffett’s Burlington Northern, which according to Bloomberg, is among U.S. and Canadian railroads that stand to benefit from the Obama administration’s decision to reject TransCanada Corp.’s Keystone XL oil pipeline permit. ‘“Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, a unit of Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK/A), said in an interview. If Keystone XL “doesn’t happen, we’re here to haul.” And quite delighted to reap the windfalls of unfounded populist fears she forgot to add. Because while the whole “carbon-credit” multi-trillion top line expansion scheme for Goldman under the pretense of actually caring for the environment may have collapsed, it is not preventing others from trying and succeeding where even Goldman has failed.

Proving the author’s continuing mantra: “Watch the other hand.”

The chess board is bigger than you or I dear readers. Plan accordingly.