A major tax increase on loose cigarette tobacco has caused pipe tobacco sales to surge dramatically this year. Historically, the tobacco industry manufactured around 270,000 pounds of pipe tobacco per month. Yet, in April, it hit 566,000 pounds, ultimately skyrocketing to 1.7 million pounds in August. While pipe smoking has risen somewhat in popularity since the recession began, mostly because it's a less expensive alternative to cigars, that dynamic is but a rounding error in the spectacular growth seen this year.

So, what's behind the pipe tobacco explosion? The real answer lies in another question: What's in a name?

Continue reading Smoke and mirrors: Cigarette tobacco makers alter labels to sidestep tax hike

Smoke and mirrors: Cigarette tobacco makers alter labels to sidestep tax hike originally appeared on DailyFinance on Thu, 19 Nov 2009 16:00:00 EST. Please see our terms for use of feeds.

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Facebook looks like its worth close to $10 billion right now, based on actual transactions in the stock. The social networking site has seen its shares surge on an exchange for private companies, suggesting that the company is perceived to be headed in the right direction. Of course, private companies don't have to disclose all their dirty laundry, so assume that the current "market" value is based on only the rosiest of impressions. Some see this as a leading indicator of a Facebook IPO, which is bound to ignite unparalleled excitement.

There's room for a little common sense, though, and investors should take advantage of it. Facebook remains down 33% from its 2007 peak value of $15 billion, and the recent trading activity implies a value slightly below that defined by the latest investment in the company. It probably makes sense to keep the corks in the champagne bottles a little bit longer, but only because the vintage isn't quite right yet.

Continue reading Facebook shares up, but value down by a third: Ready for the IPO?

Facebook shares up, but value down by a third: Ready for the IPO? originally appeared on DailyFinance on Thu, 19 Nov 2009 15:20:00 EST. Please see our terms for use of feeds.

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There was some doubt headed into Saturday's auction of Bernard Madoff's belongings. Strong interest was anticipated, though many thought the public was tired of the Madoff saga. The asking prices for his (former) Manhattan and Palm Beach homes had just been cut by 10% and 7%, respectively. Presale estimates were kept to reasonable levels. Simply, everything was priced to move.

When the gavel came down for the last time, though, expectations were shattered. The personal effects that once belonged to the architect of the world's largest Ponzi scheme fetched as much as 20 times the presale estimates. It looks like bidders will always shell out for even small pieces of sordid history.

Continue reading The Madoff auction take shows Bernie-mania is hardly waning

The Madoff auction take shows Bernie-mania is hardly waning originally appeared on DailyFinance on Sun, 15 Nov 2009 22:10:00 EST. Please see our terms for use of feeds.

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The streets of Caracas are crammed with three times as many cars as they can handle. And why not? Gas is cheaper in Venezuela than anywhere else on Earth. The consequence, of course, is nasty traffic, made only worse by potholes, police checkpoints and other impediments to smooth vehicular movement.

The situation is one that apparently has no solution on the drawing board. Yet, that doesn't mean drivers must suffer without any relief at all. Thanks to social media tools, according to a Bloomberg News report, smartphone-toting drivers have been participating in an emerging answer to Venezuela's gridlock nightmare.

Continue reading How Twitter gets drivers through the gridlocked streets of Caracas

How Twitter gets drivers through the gridlocked streets of Caracas originally appeared on DailyFinance on Sun, 15 Nov 2009 20:00:00 EST. Please see our terms for use of feeds.

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Cancel your flight to Amsterdam - the U.S. just got its first marijuana cafe on Friday. Located in Portland, Ore., the Cannabis Cafe shows how attitudes have changed since the Obama administration moved into the White House. A month ago, President Barack Obama told federal attorneys to ease off medical marijuana prosecutions.

The widening use of medicinal marijuana has forced governments into a tenuous legal balancing act, according to a Reuters report. Some states passed legislation to allow it, starting with California in 1996. Nonetheless, a federal ban remains in place. The operation of businesses like the Cannabis Cafe, as well as marijuana establishments in California, has been possible as long as federal authorities have chosen not to pursue them. Unlike the shops in California, though, the Portland establishment is the first in the U.S. where certified medical marijuana users can both acquire and consume their marijuana, as long as they stay out of public view.

Continue reading First U.S. marijuana cafe opens for business in Portland

First U.S. marijuana cafe opens for business in Portland originally appeared on DailyFinance on Sun, 15 Nov 2009 10:15:00 EST. Please see our terms for use of feeds.

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Close to half of all solar panels manufactured this year will not be sold in 2009, iSuppli says, and it forecasts that the glut will continue until 2012. In August, the company pegged oversupply at 92% for 2009, but it recently revised the overage rate to 66%.

Continue reading Solar glut is temporary, demand to catch up by 2012

Solar glut is temporary, demand to catch up by 2012 originally appeared on DailyFinance on Sat, 14 Nov 2009 19:00:00 EST. Please see our terms for use of feeds.

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With auction markets showing signs of recovery -- or at least wanting to recover -- capital is surging into funds focusing on these asset classes. In addition to the high net worth investors who have tended to invest in these assets and the specialty funds that operate in these spaces, institutional investors are showing more interest in the world's oldest media sector.

Continue reading Art funds follow hopes of market recovery

Art funds follow hopes of market recovery originally appeared on DailyFinance on Sat, 14 Nov 2009 18:00:00 EST. Please see our terms for use of feeds.

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Manhattan just got its first Costco (COST). The store on E. 116th Street opened on Thursday, making it the first discount club to open in the borough. The experience isn't entirely new, however, as many club members already live in the city. Now, they'll be able to enjoy a shorter jaunt to the nearest Costco.

The store boasts more than 105,000 square feet of selling space and 3,500 products, according to the New York Post. There's an optical department (with doctor), pharmacy and enormous fresh foods area, along with a photo center and food court ... basically, the Manhattan Costco has everything, as the rest of the country already knows, and it comes in one size: huge.

Continue reading Costco opens in Manhattan: Big box retailer for shoe-box living

Costco opens in Manhattan: Big box retailer for shoe-box living originally appeared on DailyFinance on Fri, 13 Nov 2009 10:50:00 EST. Please see our terms for use of feeds.

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The Iraq war is getting too expensive, according to Defense Department auditors, and KBR is part of the problem. The contractor faces close to $200 million in penalties for keeping too many bodies on its payroll in Iraq, and it is being pressured to cut back.

For six years, KBR has increased its staff, even as troop levels have declined. "Each day that passes without taking action results in continued overstaffing and inefficiency," says a report from the Defense Contract Audit Agency quoted by The Associated Press. On the other side of the issue, though, is a $33.8 billion, 10-year contract with KBR signed in 2001.

The recent flare-up over billing and management practices isn't new. KBR and Defense Department auditors have battled over billions for several years, with critics of the contractor claiming its inefficiency has risen to the level of price-gouging and even fraud.

Continue reading Pentagon to KBR: Cut workforce in Iraq

Pentagon to KBR: Cut workforce in Iraq originally appeared on DailyFinance on Mon, 02 Nov 2009 15:30:00 EST. Please see our terms for use of feeds.

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Whether the office holiday party is a chance to unwind with colleagues or an evening of forced fun with people you're already sick of seeing all day, it's an institution of corporate America. The food is abundant, the liquor flows, and for a few hours, your colleagues are human beings. Then the next morning, you return to work with a hangover and with the same beefs you had before the party.

There's only one thing worse than having to go to the holiday party, and that's to learn that yours has been canceled. When corporate penny-pinching axes the event, that sends an unequivocal message about the company's financial strength and puts everyone on edge.

Continue reading Office holiday parties go on hiatus, but the risks remain

Office holiday parties go on hiatus, but the risks remain originally appeared on DailyFinance on Tue, 27 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

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The 2008/2009 art market ended seven years of astonishing price inflation. By the end of 2008, contemporary art suffered a price decline of 27.1 percent, followed by another 4 percent drop in the first half of 2009, according to ArtPrice's new report, Contemporary Art Market: The ArtPrice Annual Report. A change in auction-house strategy was fundamental to preventing the continuation of the plunge.

From 2002 to 2008, speculation fueled profound growth in the contemporary art market. New auction records were the norm as prices climbed with unprecedented velocity. The high end of the market was particularly active, with the number of pieces selling for more than €1 million surging by 620 percent. Because of that bubble, the contemporary segment was the first to get slammed after the financial market downturn was accelerated by the collapse of Lehman Brothers. Before that point, contemporary art had resisted the effects of the subprime mortgage crisis.

Continue reading The global art market finds its floor

The global art market finds its floor originally appeared on DailyFinance on Mon, 26 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

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Tom Dart's crusade against Craigslist appears to have come to a close. The Cook County, Ill., sheriff sought to have the online classified site's erotic section shut down, filing suit in federal court to close what he called the "single largest source of prostitution in the nation." He didn't get much help from the judge, however, who dismissed the lawsuit, according to the San Francisco affiliate of NBC.

Dart filed the suit earlier this year, claiming that "Craigslist unabashedly facilitates prostitution, then ultimately makes a profit from it."

U.S. District Judge John F. Grady didn't see it that way. "Sheriff Dart may continue to use Craigslist's Web site to identify and pursue individuals who post allegedly unlawful content," the federal judge wrote in his ruling, "But he cannot sue Craigslist for their conduct." The net result is that law enforcement officials can use Craigslist to investigate prostitution schemes, but the website itself shouldn't be the target.

Gallery: Craigslist Sex Ads Exposed

Continue reading Law enforcement must target hookers, not Craigslist

Law enforcement must target hookers, not Craigslist originally appeared on DailyFinance on Sun, 25 Oct 2009 16:30:00 EST. Please see our terms for use of feeds.

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It's no secret that Twitter still hasn't found a way to do much with money other than spend it. The company is pulling back on its plan not to run ads on the site, and continues to say that paid corporate accounts will likely be its ultimate revenue source. While the white-hot microblogging platform's founders try to make this a reality, the businesses that use Twitter are finding ways to make money from it now.

Ad.ly is the latest company to enter the fray. Started by Sean Rad, a 23-year-old entrepreneur, it seeks to do more than push ads into a user's Twitter stream. In fact, Rad appears to have found a way to deliver what Twitter itself has said it wants to include in its up-market version: targeting. This has been the missing link in the Twitter environment; companies have been able to push out their content 140 characters at a time, but they don't really know who they are reaching. Ad.ly appears to have solved this problem.

Continue reading Ad.ly shows Twitter how to make money on Twitter: Targeted advertising

Ad.ly shows Twitter how to make money on Twitter: Targeted advertising originally appeared on DailyFinance on Thu, 22 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

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For the past year, silver linings have been in short supply. Even as financial markets claw their way back up, the wealth lost has been neither forgotten nor completely recovered. In the private equity sector, the good news is that, frankly, the situation could have been worse. Though returns plunged, the asset class still outperformed the public equity markets.

A new analysis from alternative investment research firm Preqin puts the private equity industry's return at -30 percent for the 12 months ending March 31, 2009, a period that encompasses the bulk of the lows without the benefit of the upswing that followed. For the same year-long period, the S&P 500's return was -38.1 percent, with the MSCI Europe's at -49.9 percent and the MSCI Emerging Markets' return at -47.1 percent.

Continue reading Private equity returns down 30 percent -- and that's the good news

Private equity returns down 30 percent -- and that's the good news originally appeared on DailyFinance on Mon, 19 Oct 2009 09:30:00 EST. Please see our terms for use of feeds.

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Sir Isaac Newton could see as far as he did, he said, because he stood on the shoulders of giants. Ted Turner, it seems, has footprints on either side of his neck, while the likes of Rupert Murdoch get to enjoy the view. Father of the 24-hour cable news industry, Turner is now on the sidelines with but a few billion dollars of his fortune left, no media company to call his own and only the memory of sharing a bed with movie star Jane Fonda.

Turner "feels like a dummy," he tells Bloomberg News, despite the fact that he's now "working on issues that are life or death for us," through his role as co-chair of the Nuclear Threat Initiative -- a job he shares with former U.S. Senator Sam Nunn. Once a media mogul, Turner has put the world of News Corp (NWS), Time Warner (TWX) and Viacom (VIA) behind him. Now, he's reinventing himself in the government policy arena and focusing on challenges of greater importance.

Continue reading The new Ted Turner misses the old

The new Ted Turner misses the old originally appeared on DailyFinance on Sun, 18 Oct 2009 14:30:00 EST. Please see our terms for use of feeds.

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The next time you take a bite of a Carvel ice-cream cake, you'd better make sure you earned it. The company that owns it, Roark Capital Group, is an Atlanta-based private equity fund named for the virtuously selfish architect concocted by writer and philosopher -- and master of neither writing nor philosophy -- Ayn Rand, the founder of Objectivism.

A tribute to the author in more than just name, Roark has spent most of the financial crisis on the sidelines. Now it has $750 million to put into the private equity market - nearly half of the $1.55 billion it has under management.

Continue reading Private equity fund follows Ayn Rand's teachings and finds opportunity

Private equity fund follows Ayn Rand's teachings and finds opportunity originally appeared on DailyFinance on Sat, 17 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

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For the private equity industry, 2009 is looking a lot like 2003. After yet another tough quarter, the amount of new funds raised plummeted, reaching levels not seen in six years, according to documents London-based private equity research firm Preqin has provided to DailyFinance. Fewer funds are closing, and many of those that are closing are doing so short of their initial targets. There are indicators, however, that the situation could turn around by the end of 2009 or early in 2010.

Private equity funds raised only $38 billion in the third quarter of 2009. This is the lowest worldwide total since the fourth quarter of 2003. From the second quarter of 2008's level of $84 billion, this is a decline of 45 percent, and it is a mere 18 percent of the record $208 billion that global private equity funds raised in the second quarter of 2007. "Historical data shows that the summer months of Q3 often represent a relatively slow quarter for fundraising in any given year," says Tim Friedman, Preqin's head of communications. "For the rate of fundraising to drop by nearly 70 percent over the course of a year is a dramatic fall," he continues, "and demonstrates just how challenging it has become to raise new funds in the current climate."

Continue reading Global private equity market is way down, but it may have hit bottom

Global private equity market is way down, but it may have hit bottom originally appeared on DailyFinance on Thu, 01 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

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Online travel agents are holding up through the recession on business and leisure travel. A new report from research firm PhoCusWright and Compete.com, travel websites showed increases in both monthly traffic and sales conversions for the second quarter of 2009 relative to previous years.

Transactional travel websites - suppliers and online travel agencies - saw monthly visitors surge in June, with cruise lines gaining 19 percent year-over-year, and hotel chains picking up 13 percent. For the first half of the year, compared to 2007 and 2008, hotel and car-rental visitor traffic showed modest gains. Only the air sector of online travel-agency business posted a decline from last year, of 15 percent, but the conversion of air travel-oriented visits to sales increased.

Continue reading Online travel business sees traffic and conversion bumps

Online travel business sees traffic and conversion bumps originally appeared on DailyFinance on Mon, 28 Sep 2009 13:30:00 EST. Please see our terms for use of feeds.

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Once upon a time, Capitol Hill was teeming with newspapermen looking for the obvious and hidden, so they could inform the American people. Today, the press is still spending plenty of time in Washington -- but for a much different reason. An industry representative sought tax breaks for the newspaper industry on Thursday, citing difficult market conditions and company pension obligations.

John Sturm, president and CEO of the Newspaper Association of America, was clear when he approached Congress -- the newspaper industry was not interested in a subsidy. This is probably because a bailout request was already denied this year. Rather, Sturm said, the industry is looking for a tax break that would allow newspaper companies to get back taxes they paid on profits over the past decade to offset current losses, according to an Associated Press report. The newspaper companies also want permission to spread out their contributions to employee pension plans.

Continue reading Newspapers go back to Congress looking for relief (again)

Newspapers go back to Congress looking for relief (again) originally appeared on DailyFinance on Fri, 25 Sep 2009 09:20:00 EST. Please see our terms for use of feeds.

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Twitter announced on Tuesday that it does not plan to run advertisements on its website this year. This comes after a recent modification to the micro-blogging site's terms of service, which makes room for ads.

Co-founder Biz Stone announced that the company has sufficient funding for the time being and has emphasized that its focus is on improving search functions, adding new features and developing a revenue stream around commercial Twitter accounts. At present, the two-year-old company does not have a revenue model.

Continue reading Twitter says no ads in 2009, focused on commercial accounts

Twitter says no ads in 2009, focused on commercial accounts originally appeared on DailyFinance on Wed, 23 Sep 2009 11:20:00 EST. Please see our terms for use of feeds.

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