Word: costs
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...Indeed, most companies have just wrapped up a year of dismal quarterly results where many slashed jobs and other expenses to weather the debilitating recession and frozen credit markets. Thus, the near-term earnings may look much improved even though demand for a company's products may have slumped. "Cost-cutting has been the major force driving earnings and earnings surprises," says Dirk Van Dijk, chief equity strategist at Zacks Investment Research, which monitors earnings projections from Wall Street analysts. And "clearly companies cannot continue to grow earnings forever based only on cost-cutting." (See 10 things to buy during...
...wonder that the sweetheart deal Senator Ben Nelson got for his home state of Nebraska as part of the Senate health reform bill has caused such consternation among his colleagues. In exchange for his vote, say critics, Nelson was promised that the Federal Government would pay 100% of the cost of expanding the Medicaid program in Nebraska. The 49 other states, by contrast, would have full federal funding for a few years but would eventually have to pick up part of the tab. As soon as word of the special treatment broke, the deal became known as the "Cornhusker Kickback...
Cougars may have momentum these days, but their relatively small cruise-passenger numbers thus far may have cost them the Carnival business. Unlike other groups like the gay and lesbian communities, which fully charter ships for themselves on themed cruises, the cougars have less leverage because they're just one group among many passengers onboard. Says Carolyn Spencer Brown, editor in chief of the website Cruise Critic: "In a contained environment like a cruise ship, if other passengers find anything potentially offensive about your group's theme, it can be a problem. That's why it's better to take...
This knowledge could one day help doctors better design drug therapies by allowing them to sequence patients’ viruses and predict which drugs the HIV strain would be the most likely to become resistant to in advance, according to Zhang. Such an application could make treatments much more cost-effective, she added...
...Given the stakes in the diplomatic spat, Ayalon's defiance potentially carried a high cost. But it took a behind-the-scenes intervention of the proverbial grownup in the Israeli establishment - President Shimon Peres, who served for decades as Israel's key diplomat - to orchestrate a climbdown. Peres called Prime Minister Benjamin Netanyahu and Foreign Minister Lieberman and urged them to defuse the crisis. But domestic politics was in play: not only was Ayalon's initial action calculated to burnish the nationalist appeal of his and Lieberman's Yisrael Beitenu party, but Netanyahu's need to maintain that party...