| To: The Ox who wrote (3789) | 1/13/2015 1:32:49 PM | | From: Glenn Petersen | | | | Paul Ryan has announced that he is not going to run for President, which increases the chances that we will see corporate tax reform this year. The window closes as soon as the presidential campaign heats up next year. Let's hope that they close some of the loopholes.
GOP targets budget process for tax reform
Republicans debate how best to use a potent budget tool.
By Manu Raju and Burgess Everett
Politico
1/13/15 5:34 AM EST
Several influential Republicans want to use a filibuster-proof budget procedure to overhaul the corporate tax code — rather than wield it as a weapon against Obamacare, as conservatives are demanding.
The quiet push, led by South Dakota Sen. John Thune, seeks to use the potent tool known as budget reconciliation to give both the GOP and President Barack Obama the sweeping victory on tax policy that business groups want, which could include a significant cut in corporate tax rates as well as provide funding for a long-term transportation bill. In contrast, an attempt to use reconciliation to gut Obama’s health care law might showcase Republicans’ new strength on Capitol Hill but would inevitably end in a veto.
“I would rather use reconciliation to do tax reform, which I think is very pro-growth — and have votes on Obamacare” separately, said Thune, the No. 3 Senate GOP leader. “There’s going to be a lot of interest in using it to repeal Obamacare, but you only get so many bites at the apple for reconciliation.”
It’s still unclear whether Republicans and the White House could reach a tax deal: Though both sides have said they favor tax reform, they’ve been far apart on specifics. And the discussions on Capitol Hill, now in their nascent phases, represent a tricky calculus for the two parties.
If GOP lawmakers try to use the budget maneuver to repeal Obamacare, they could send a powerful political message, which they’d be able to replicate after 2016 if they take back the White House and keep control of the Capitol — but it wouldn’t become law in the 114th Congress. And while focusing on tax reform and infrastructure funding could win presidential support, the move could anger conservatives who want to show voters that Republicans are prepared to use every means possible to attack the health law.
The dilemma showcases the larger question facing Republicans as they chart a course for their control of Congress: Should they fight to show a clear distinction with their Democratic adversaries, or should they compromise and pass more centrist legislation that could prompt backlash from the right?
“The conference has to decide, and will decide, whether or not the tools that we have in reconciliation ought to be used for things that we know provide a contrast with the president — we know that he will not support Obamacare repeal in reconciliation — or things that are possible for us to get a true change in public policy, with his signature,” Georgia Rep. Tom Price, who chairs the House Budget Committee, told reporters last month. “We haven’t, as a conference, as a group, reached a strategic decision.”
Ahead of a White House meeting with President Barack Obama and congressional leaders on Tuesday, and as the House and Senate GOP head to Pennsylvania this week for a rare joint retreat, some Republicans say a tax deal could be one of the few bipartisan agreements between Congress and the lame-duck president — if the two sides agree on the process for achieving it.
But moving tax legislation through budget reconciliation creates its own problems. If the overhaul blows a hole in the deficit, it could violate budget rules — so Republicans could have to scale back their ambitions or sunset the legislation after a certain number of years. Moreover, many GOP lawmakers believe that Obama is highly unlikely to sign a tax overhaul that passes Congress on a party-line vote of mostly Republicans. So, they argue, it makes more sense to use the reconciliation process for an attack on Obamacare and instead go through regular order for a broader tax overhaul that could garner a bipartisan supermajority in the Senate.
“There is a reality that anything that gets through here with 51 votes is unlikely to get signed into law,” said Sen. Pat Toomey of Pennsylvania, who sits on the Senate Budget Committee.
“My sense from a tax-reform standpoint is that it has real limitations,” Rep. Kevin Brady (R-Texas), a senior member on the House Ways and Means Committee, said of reconciliation. “We want to do the most pro-growth tax reform there is. My sense is that it would be through regular order, which is where I’d like to see it.”
In private conversations with GOP leaders, Obama has indicated an interest in tax reform during this Congress but has yet to go beyond generalities. Rewriting the Tax Code would prompt a massive lobbying war in Washington, and the White House and Capitol Hill are at loggerheads over setting tax rates for different industry sectors and overhauling an array of popular tax deductions.
The White House and many Republicans both say they’d like to cut the top corporate tax rate, now 35 percent, and that they want the outcome to be revenue neutral, though there is some dispute over what that means. That’s where the agreement usually ends.
Some believe it would be nearly impossible to do business-only reform — without addressing individuals — and the parties are at odds over how to handle small businesses that file taxes under the individual side of the code, known as pass-throughs. The White House also believes that a broader tax overhaul must raise revenue, a nonstarter for most Republicans.
Ohio Sen. Rob Portman, a former head of George W. Bush’s Office of Management and Budget, said a GOP decision to gamble on using reconciliation for tax reform depends largely on whether Obama is committed to the process.
“It depends on how it’s used and if the president is with us,” said Portman, a Republican who sits on the Budget Committee. “The more important thing is where the president is.”
Senior Obama administration officials and GOP leadership aides said it’s premature to game out the forthcoming budget battle, saying they have yet to engage in serious discussions on the matter.
“Reconciliation is a powerful tool, and Republican senators will continue to discuss the path forward,” said John Ashbrook, a spokesman for Senate Majority Leader Mitch McConnell (R-Ky.).
Despite the hurdles, making a priority of tax reform is one of the few broad areas of consensus between Republicans and the White House, along with international trade agreements.
“Having tax discussions makes more sense than some other things,” Republican Sen. Jeff Flake of Arizona said when asked if he’d rather pursue tax reform than a health care repeal in a reconciliation bill.
Thune, who chairs the Commerce, Science and Transportation Committee, said he already had discussions with senior administration officials, including Transportation Secretary Anthony Foxx, about using reconciliation to overhaul corporate tax laws. Along with several other Republicans, Thune said repatriating roughly $2 trillion in profits held overseas could create enough revenue to pay for changes to the corporate tax code and fund a five- or six-year transportation and infrastructure bill, which Congress must act on by late spring.
“If the White House was able to get infrastructure out of tax reform, it might be a way of bringing Democrats in to vote for something that they otherwise wouldn’t,” Thune said.
The budget reconciliation process is a highly complex, controversial and generally partisan process that majorities of both parties have repeatedly employed to pass legislation by a simple Senate majority of 51 votes. Democrats used reconciliation to enact a portion of Obamacare in 2010, and Republicans used it to shepherd through the Bush tax cuts in 2001 and 2003. Republicans were forced to sunset those tax cuts after a decade to meet strict rules prohibiting the budget bill from worsening the deficit, which eventually helped set the stage for the 2012 “fiscal cliff” drama.
The first step to passing a reconciliation bill is for Congress to adopt a nonbinding budget blueprint, a treacherous task for Republicans given the diversity of views within the House and Senate GOP. In that budget blueprint, Republicans plan to include “reconciliation” instructions, directing congressional panels to propose binding legislation aimed at reconciling tax and spending laws to meet the goals of the budget.
In addition to their special protections that prevent Senate filibusters, reconciliation bills are on a fast track for passage, subject to just 20 hours of debate, meaning Republicans could pass one quickly by a party-line vote. But the president could still veto it.
Senate Budget Committee Chairman Mike Enzi (R-Wyo.) is open to using reconciliation to both alter Obamacare and change the Tax Code, though the ultimate decision on how to proceed is likely weeks away, said Enzi spokesman Daniel Head.
“I will look at all forms of legislative acts,” added Sen. Orrin Hatch (R-Utah), the new Finance Committee chairman, when asked about passing tax reform through reconciliation. “I would rather do things straight up — if we can.”
Indeed, a number of Republicans won’t rule out the possibility of backing a strategy in which the Obamacare repeal votes occur outside the budget process and let Congress write the budget to instead focus on areas of potential bipartisan support like tax reform. Still, some want the GOP to go even bigger.
“It needs to be a very broad bill that would make a very significant difference,” said Sen. Dan Coats (R-Ind.), who sits on the Senate Finance Committee. “Corporate tax reform is important, but it’s only a piece of what tax reform ought to be.”
Kelsey Snell and Brian Faler contributed to this report.
politico.com |
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| To: richardred who wrote (3865) | 1/27/2015 10:24:28 AM | | From: richardred | | | | Hershey close to acquiring healthy snacks company Krave -sources
Jan 27 (Reuters) - Chocolate maker Hershey Co is in late-stage talks to acquire Krave, a maker of healthy beef, turkey and pork jerky snacks, according to people familiar with the matter.
The deal is expected to value Sonoma, California-based Krave at between $200 million and $300 million, the people said this week. An announcement could come as soon as this week, they added.
Consolidation in the so-called better-for-you snacking category has picked up in the last year as consumers' eating habits have begun to shift.
Recent deals have included JM Smucker Co's acquisition of fruits and nuts manufacturer Sahale Snacks in August and TreeHouse Foods Inc's purchase of trail mix maker Flagstone Foods in June.
The U.S. snack industry is a $35 billion market, according to market research firm IBISWorld, with annual growth of around 4 percent.
finance.yahoo.com
P.S. <o> Wink
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| To: richardred who wrote (3846) | 1/28/2015 9:57:53 AM | | From: richardred | | | | RE: Asking for a price break- It happening for suppliers to the oil patch. I'll be watching for smaller oil consolidations. I jumped a little to early on REXX & MCF. I still will hold.
RPC Warns That Oil Companies Demand Lower Costs BY GILLIAN RICH, INVESTOR'S BUSINESS DAILY
RPC Inc. (NYSE: RES) warned Wednesday that oil company customers are seeking lower prices for its oilfield services as production operations get scaled back in the wake of falling oil prices.
"Customers planning to continue exploration and production activities in 2015 are seeking service cost reductions to offset the declines in their projected production revenues," said CEO Richard Hubbell in a release. "These factors will definitely have a negative impact on our 2015 financial results."
Meanwhile, other oilfield service companies are pulling back. Baker Hughes (NYSE: BHI) is laying off 11% of it workforce, roughly 7,000 employees. Schlumberger (NYSE: SLB) slashed its capital budget and said it would cut 9,000 jobs.
It comes as producers like Matador Resources (NYSE: MTDR), Concho Resources (NYSE: CXO) and Chevron (NYSE: CVX) have scaled back on operations in recent months.
Despite the plunge in crude, RPC said Q4 EPS jumped 111.8% to 36 cents. Analysts polled by Thomson Reuters were expecting 32 cents. Revenue was up 39% to $632.2 million, but fell short of views for $636.7 million.
The average domestic rig count during the quarter rose 8.9% to 1,914 vs. a year ago.
Cenovus Energy (NYSE: CVE), a Canadian exploration and production company, said it would cut its 2015 capital spending by an additional $700 million to $1.8 billion to $2 billion.
In December, Cenovus announced a 2015 capital spending budget of $2.5 billion to $2.7 billion, a 15% reduction from 2014 levels.
"I believe crude oil prices will rebound, but the timing is uncertain. We're taking the actions we deem prudent to help protect the financial resilience of Cenovus without compromising our future," said CEO Brian Ferguson in the release.
Read More At Investor's Business Daily: news.investors.com
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| To: richardred who wrote (3830) | 2/3/2015 10:47:34 AM | | From: richardred | | | | RE- COKE's aspirations
I think KO has been doing plenty of moves this past year to reposition itself and diversify more away from it's mainstays. IMO the catalyst move is being self pressured and from big shareholders to make diversifying acquisitions.
I still think salty snacks (hypothetically LNCE) would be a good choice for them. It would be a much less risky hypothetical acquisition than Monster Beverage or GMCR IMO. Coke could take their time with both of them as they already have double digit stakes in both. Coke previously, and more recently looks to be covering many bases, with fruit juices and milk. One area lacking is salty snacks. Lance trades at a lower PE currently. It's also is big in vending along with Coke. I've seen KO being mentioned previously, as a logical buyer for Mondelez International. IMO With Nelson Peltz having seats on both boards of Pepsi and Mondelez,this makes a KO hypothetical acquisition less likely. The question is LNCE's scale, around 2.5 billon, is that big enough scale for KO. If not, IMO LNCE still makes a nice bolt on. Past thoughts linked to this post.
Coke bets on 'premium milk' to boost declining category
Coke bets 'premium milk' Fairlife can boost declining category; more protein, less sugar
Associated Press
By Candice Choi, AP Food Industry Writer 26 minutes ago
Coke bets on 'premium milk' to boost declining category
In this Friday, Jan. 23, 2015 photo, Fairlife milk products appear on display in the dairy section of an Indianapolis grocery store. Fairlife, which is rolling out nationally in coming weeks, is the product of a joint venture between Select Milk Producers, a dairy cooperative, and Coca-Cola. The product is filtered to have more protein and less sugar than regular milk. (AP Photo/Michael Conroy)
NEW YORK (AP) -- Coke is coming out with premium milk that has more protein and less sugar than regular. And it's betting people will pay twice as much for it.
The national rollout of Fairlife over the next several weeks marks Coca-Cola's entry into the milk case in the U.S. and is one way the world's biggest beverage maker is diversifying its offerings as Americans continue turning away from soft drinks.
It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it's more fiber, antioxidants or protein. That has left the door open for Coke step into the milk category, where the differences between options remain relatively minimal and consumption has been declining for decades.
"It's basically the premiumization of milk," Sandy Douglas, president of Coca-Cola North America, said at an analyst conference in November. If developed properly, Douglas said it is the type of product that "rains money."
Fairlife, which Coca-Cola formed in partnership with dairy cooperative Select Milk Producers in 2012, says its milk goes through a filtration process that's akin the way skim milk is made. Filters are used to separate the various components in milk. Then, more of the favorable components are added, while the less desirable ones are kept out.
The result is a drink that Fairlife says is lactose free and has 50 percent more protein, 30 percent more calcium and 50 percent less sugar than regular milk.
The same process is used make Fairlife's Core Power, a drink marketed to athletes that has even more protein and calcium than Fairlife milk.
Sue McCloskey, who developed the system used to make Fairlife with her husband Mike McCloskey, said Fairlife will be marketed more broadly to women who are the "gatekeepers" for their families' nutritional needs.
Related Quotes
Even while touting its nutritional advantages, however, Fairlife will need to be careful about communicating how its drink is made. Jonas Feliciano, senior beverage analyst for market researcher Euromonitor, noted people want drinks that "do something for me," but that Fairlife's juiced-up nutritional stats may make people hesitant about how natural it is.
"They have to explain that this is not an abomination of nature," Feliciano said.
Already, Fairlife has been subject to some teasing. After the drink was referenced in Coke's analyst presentation, comedian Stephen Colbert referred to it as "extra expensive science milk" and made fun of the elaborate way it's made.
"It's like they got Frankenstein to lactate," he said.
Colbert also took a dig at the wholesome image Fairlife is trying to project, noting that it's made by the "nature loving health nuts at Coca-Cola." That may explain why Coca-Cola is distancing itself from the product; a representative for the Atlanta-based company referred questions to Fairlife's outside representative.
In a phone interview, Fairlife CEO and former Coke executive Steve Jones said he thinks his company can help reverse the ongoing decline in milk consumption by offering a superior product. Major retailers including Wal-Mart, Target, Kroger and Safeway have agreed to carry it and
KO has been diversifying away from its mainstays.
Coca-Cola's Minute Maid team plans to make it available wherever milk is sold.
The drink, which comes in a sleek plastic bottle reminiscent of milk cartons, has already started appearing on shelves and is expected to continue rolling out nationally over the next several weeks.
At a supermarket in Indianapolis, a 52-ounce bottle of Fairlife was being sold for $4.59. By comparison, the national average cost for a half-gallon of milk, which is 64 ounces, is $2.18, according to the USDA. For organic milk, the average is $3.99.
Fairlife is just one of many ventures by Coca-Cola, which also recently took stakes in energy drink maker Monster Beverages and Keurig Green Mountain, which makes single-serving coffee machines and pods.
Over time, Coca-Cola is hoping premium milk can become a significant driver of growth. For now, Fairlife is still trying to find its footing in the marketplace.
This summer, the company ran ads in the test markets of Minneapolis and Denver featuring women wearing nothing but milk splashes in the shape of dresses. The images were accompanied by phrases like, "Better Milk Looks Good On You," leading them to be deemed sexist in some corners.
Jones said the ads were intended to be "disruptive," since new products need to grab people's attention. But moving forward, Fairlife plans to focus on its authentic milk taste and the farmers who produce it in national marketing, which will roll out around the end of March or April.
While declining to provide details, Jones said Fairlife intends to "crank up the awareness level very, very quickly."
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| To: The Ox who wrote (3877) | 2/3/2015 11:33:07 AM | | From: richardred | | | | HI OX- Earnings for LNCE are out soon and the last couple of qtrs have been a little disappointing. Just might be another buying opportunity down the road for myself if that pattern continues. The stock has up quite well though. IMO Mainly do to being a target. I think LNCE hypothetically and realistically might receive around a 40%-50% premium from here 42.00 - 50. WHY- The snack food space that's still public is quite limited. IMO it's also likely to receive interest from other parties. This company won't get the type of sales premium 4X sales General Mills paid for Annie's.
It growing much slower as a whole, but LNCE has made a few niche acquisitions of it's own in the faster growing healthy snacks.
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| To: richardred who wrote (3878) | 2/3/2015 11:42:11 AM | | From: The Ox | | | | Wheat and corn prices have been plunging and were in decline most of last year. One would think that these will be helpful to LNCE going forward, so your theory that they may be very attractive to a potential suitor makes a lot of sense. With relatively flat sales expectations, margins would be a great place for them to place a significant focus.
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| To: The Ox who wrote (3879) | 2/3/2015 11:52:40 AM | | From: richardred | | | | I agree, and your right on the mark with food input costs. The majors should be catching some upside as commodity cost are coming down. Especially those who were on a LIFO accounting. This if they haven't already switched to FIFO. An added bonus for LNCE. If I remember right. They have very little foreign sales. This should be a plus. Especially against Global companies that have to deal with foreign currency. The current factor being a strong US dollar.
p.s. input costs
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| To: richardred who wrote (3876) | 2/4/2015 9:46:05 AM | | From: richardred | | | | Snyder's-Lance, Inc. introduces a new corporate logo reinforcing its focus on premium branded snacks
PR Newswire
Snyder's-Lance, Inc. 43 minutes ago
CHARLOTTE, N.C., Feb. 4, 2015 /PRNewswire/ -- Snyder's-Lance, Inc. (LNCE) is introducing a new corporate logo symbolizing the completion of its strategic shift to become a branded snack food company. Snyder's-Lance is focused on serving consumers' busy lifestyles with quality, premium and differentiated snacks.
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Snyder's-Lance, Inc. is introducing a new corporate logo symbolizing the completion of its strategic shift to become a branded snack food company.
"We are dedicated to serving the snacking expectations of our consumers and retailers. As a result, we are proud to say snacking is our passion," said Carl E. Lee, Jr., CEO and President. "Our company is going through a very exciting time as we compete in a dynamic and growing category. This corporate rebranding effort reflects not only the transformation of our company but it also reinforces the energy and commitment our associates have for making great snacks."
The new logo features a modernized font, visually striking icon and colors that reflect the company's commitment to quality and wholesome ingredients. The icon also symbolizes the journey from seed to table in every Snyder's-Lance product. The new tagline, "Snacking is our passion™," demonstrates Snyder's-Lance's commitment to our consumers and their snacking needs. Together, the new logo, icon and tagline offer a fresh perspective on the company's focus and commitment to meet evolving category trends with innovative new products.
This new corporate identity is part of an overall transformation of the company, which started with the acquisition of Snack Factory® Pretzel Crisps®, and was followed by the divestiture of Lance Private Brands, the acquisition of Baptista's® Bakery and the acquisition of a majority stake in Late July®.
About Snyder's-Lance, Inc.
Snyder's-Lance, Inc., headquartered in Charlotte, N.C., manufactures and markets snack foods throughout the United States and internationally. Snyder's-Lance's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder's-Lance has manufacturing facilities in North Carolina, Pennsylvania, Indiana, Georgia, Arizona, Massachusetts, Florida, Wisconsin and Ohio. Products are sold under the Snyder's of Hanover®, Lance®, Cape Cod®, Snack Factory® Pretzel Crisps®, Late July®, Krunchers!®, Tom's®, Archway®, Jays®, Stella D'oro®, Eatsmart™, O-Ke-Doke® and other brand names. Products are distributed nationally through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. LNCE-G
Logo - photos.prnewswire.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/snyders-lance-inc-introduces-a-new-corporate-logo-reinforcing-its-focus-on-premium-branded-snacks-300030564.html |
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