The Federal Reserve Bank of New York this month began publishing the Business Leaders Survey covering service firms in New York, northern New Jersey, and southwestern Connecticut. The new survey makes sense for a region of the U.S. that is more closely connected to finance, tourism, and media than it is to manufacturing.
Cybercrime is on the rise. In the past, you only needed to worry about pickpockets or losing your wallet. You knew could cancel your credit cards the next day and not have to worry much. Today criminals are focused on stealing millions of identities at a time. This is proved by Target's recent data breach of up to 110 million customers' data including credit card numbers, PIN numbers, names and addresses. According to the Bureau of Justice Statistics, about 7% of people aged 16 or over were victims of identity theft in 2012. This translates into over 12 million Americans who had to deal with the hassle of the aftermath. Identity theft resulted in over $21 billion in costs to victims and businesses. Today your data may be floating around the black market and you don't know when the actual identity theft will occur. 15% of identity theft victims don't know until 4 or more years has past.
The US service sector slowed again in December but more alarmingly new orders contracted for the first time since 2009.
The Institute for Supply Management (ISM) reported that its service index fell to 53% in November, a decrease from its 53.9% November reading. This missed expectatoins of 54.5 from forecasters surveyed by Dow Jones Newswires. This marks the 48th consecutive month of growth. A reading above 50 indicates the sector is expanding.
The US service sector firms grew at the weakest pace since June, evidence that consumers and businesses are more cautious heading into year end.
The Institute for Supply Management (ISM) reported that its service index fell to 53.9% in November, a decrease from its 55.4% October reading. This marks the 47th consecutive month of growth. A reading above 50 indicates the sector is expanding.
The Institute for Supply Management (ISM) reported that its service index rose to 55.4 percent in October, 1 percentage point higher than the 54.4 percent registered in September. This marks the 46th consecutive month of growth.
Starbucks is making waves as it opened its first Teavana Fine Teas + Tea Bar on Madison Ave in New York City last week.
Should investors take notice? A most resounding yes! Starbucks has transformed the way Americans drink coffee and you have to listen closely when CEO Howard Shultz states, “We'll do for tea what we've done for coffee.”
On Wednesday, Core Laboratories reported record 3rd quarter results as new technology helped set all-time quarterly highs for EPS, net income and revenue. Its business continues to kerchunk, kerchunk, kerchunk. What makes Core Lab a great service company? It targets the more stable, less volatile production and production enhancement component of the oil companies’ budget. This makes results less cyclical and much more predicable than most energy investments. The proof is in the pudding. Over the last 10 years, sales growth has averaged 10% per annum while earnings have grown by over 35% per annum.
On the heels of my recent post "What Are Kerchunker Companies? 5 Reasons Why You Should Like Them," please watch this recent CNBC interview of Mike Smerklo, Chairman and CEO of ServiceSource. Many high tech companies are realizing what IBM did 20 years ago. The information technology industry can rapidly become commoditized so IBM determined that the company needed to shift its portfolio to a more balanced mix of high-value offerings. That meant a transition away from products (hardware) and growing its services and software businesses. Today, the cloud is enabling companies to offer Software as a Service (SaaS) which often boasts better customer retention and more recurring revenue.
"What the heck is a kerchunker® company?" you ask. Kerchunker is a term trademarked by Runnymede professionals to describe service sector companies that are steady and often have recurring revenue models. Hopefully, each quarter and each year, they grow... kerchunk, kerchunk, kerchunk!
The Institute for Supply Management (ISM) reported that its service index rose to 58.6 percent in August, 2.6 percentage points higher than the 56 percent registered in July. This marks the 44th consecutive month of growth and the highest reading since its inception in January 2008.
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