RadioShack Files for Bankruptcy, Sell Up to 2,400 Stores

February 5th, 2015

I have lots of fond childhood memories of RadioShack, although I don’t know how it has survived for about the last two decades.

Via: Reuters:

Electronics retailer RadioShack Corp (RSHC.PK) filed for U.S. bankruptcy protection on Thursday and said it had a deal in place to sell as many as 2,400 stores to an affiliate of hedge fund Standard General, its lender and largest shareholder.

Wireless company Sprint Corp (S.N) would operate as many as 1,750 of those stores under an agreement with Standard General, Sprint said separately.

RadioShack’s bankruptcy, which has been expected for months, follows 11 consecutive unprofitable quarters as the company has failed to transform itself into a destination for mobile phone buyers. But its sale agreement with Standard General could spare it the fate most retailers suffer in Chapter 11, liquidation.

RadioShack said in a statement that the Standard General affiliate, called General Wireless, will acquire between 1,500 and 2,400 of its more than 4,000 stores.

Sprint would occupy about one-third of each RadioShack store, selling “mobile devices across Sprint`s brand portfolio as well as RadioShack products, services and accessories,” Sprint said in its statement.

Other potential buyers will also have the opportunity to bid on RadioShack assets. Any deal will need approval by the U.S. Bankruptcy Court in Delaware, so nothing is etched in stone.


An Alloy of Iron and Aluminum Is as Good as Titanium, Tenth the Cost

February 5th, 2015

Via: The Economist:

The obvious way out of this is to alloy steel with a lighter metal. And the obvious one to choose is aluminium, which is, like iron (steel’s principal component), cheap and abundant. An alloy of iron, aluminium and carbon (steel’s other essential ingredient) is too brittle to be useful. Adding manganese helps a bit, but not enough for aluminium-steel to be used in vehicles.

Dr Kim and his colleagues have, however, found that a fifth ingredient, nickel, overcomes this problem. To a chemist, an alloy is a mixture of materials rather than a true chemical compound. But metals do sometimes react to form real compounds, and one class of these, known as B2 intermetallic compounds (which have equal numbers of atoms of two different metals within them), lies at the heart of Dr Kim’s invention. The nickel reacts with some of the aluminium to create B2 crystals a few nanometres across. These crystals form both between and within the steel’s grains when it is annealed (a form of heat treatment).

B2 crystals are resistant to shearing, so when a force is applied to the new material they do not break. This stops tiny cracks propagating through the stuff, which gives it strength. That strength, allied with the lightness brought by the aluminium, is what Dr Kim was after.


Alibaba Tests Drone Deliveries in China

February 4th, 2015

Via: Forbes:

Amazon Chief Executive Jeff Bezos is not the only one with a drone-delivery dream. Alibaba’s billionaire founder Jack Ma is also testing drone-delivery services, as the company races to overcome logistics barriers in the country.

The initial scope of Alibaba’s experiment is small. The company’s online Taobao bazaar is inviting 450 shoppers in Beijing, Shanghai and Guangzhou to try parcel deliveries by unmanned drones today, according to a Feb. 4 post on Taobao’s verified microblog account. The drones will only deliver ginger tea packages under the Shou Quanzhai brand during the three-day trial carried out with Shanghai-based YTO Express EXPR, the company says.

“This is a one-off campaign where ginger tea packets ordered on Taobao can be delivered to designated cities or regions within an hour,” Alibaba said in an e-mailed note. “We’re unsure about future possibilities yet, but this is our first drone delivery service campaign.”

The drones can each carry a maximum weight of 1 kilogram and fly a maximum distance of 10 kilometers, according to Xue Ren, a YTO spokesperson. Ren said the express-delivery firm is just testing the market and has no immediate plan to expand the service.


The Big Lie: 5.6% Unemployment

February 4th, 2015

Via: Gallup:

Here’s something that many Americans — including some of the smartest and most educated among us — don’t know: The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading.

Right now, we’re hearing much celebrating from the media, the White House and Wall Street about how unemployment is “down” to 5.6%. The cheerleading for this number is deafening. The media loves a comeback story, the White House wants to score political points and Wall Street would like you to stay in the market.

None of them will tell you this: If you, a family member or anyone is unemployed and has subsequently given up on finding a job — if you are so hopelessly out of work that you’ve stopped looking over the past four weeks — the Department of Labor doesn’t count you as unemployed. That’s right. While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news — currently 5.6%. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren’t throwing parties to toast “falling” unemployment.

There’s another reason why the official rate is misleading. Say you’re an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 — maybe someone pays you to mow their lawn — you’re not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.

Yet another figure of importance that doesn’t get much press: those working part time but wanting full-time work. If you have a degree in chemistry or math and are working 10 hours part time because it is all you can find — in other words, you are severely underemployed — the government doesn’t count you in the 5.6%. Few Americans know this.

There’s no other way to say this. The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.


Draft of Arrest Request for Argentine President Found at Dead Prosecutor’s Home

February 4th, 2015

Via: New York Times:

Alberto Nisman, the prosecutor whose mysterious death has gripped Argentina, had drafted a request for the arrest of President Cristina Fernández de Kirchner, accusing her of trying to shield Iranian officials from responsibility in the 1994 bombing of a Jewish center here, the lead investigator into his death said Tuesday.

The 26-page document, which was found in the garbage at Mr. Nisman’s apartment, also sought the arrest of Héctor Timerman, Argentina’s foreign minister. Both Mrs. Kirchner and Mr. Timerman have repeatedly denied Mr. Nisman’s accusation that they tried to reach a secret deal with Iran to lift international arrest warrants for Iranian officials wanted in connection with the bombing.

The new revelation that Mr. Nisman had drafted documents seeking the arrest of the president and the foreign minister illustrates the heightened tensions between the prosecutor and the government before he was found dead on Jan. 18 at his apartment with a gunshot wound to his head. He had been scheduled the next day to provide details before Congress about his accusations against Mrs. Kirchner.


Britain: Three-Person Babies

February 4th, 2015

Via: BBC:

MPs have voted in favour of the creation of babies with DNA from two women and one man, in a historic move.

The UK is now set to become the first country to introduce laws to allow the creation of babies from three people.

In a free vote in the Commons, 382 MPs were in favour and 128 against the technique that stops genetic diseases being passed from mother to child.

During the debate, ministers said the technique was “light at the end of a dark tunnel” for families.

A further vote is required in the House of Lords. It everything goes ahead then the first such baby could be born next year.

Proponents said the backing was “good news for progressive medicine” but critics say they will continue to fight against the technique that they say raises too many ethical and safety concerns.

Estimates suggest 150 three-person babies could be born each year.

Prime Minister David Cameron said: “We’re not playing god here, we’re just making sure that two parents who want a healthy baby can have one.”


Massive Worldwide Layoff Underway At IBM

February 4th, 2015

Via: IEEE:

Project Chrome, a massive layoff that IBM is pretending is not a massive layoff, is underway. First reported by Robert X. Cringely (a pen name) in Forbes, about 26 percent of the company’s global workforce is being shown the door. At more than 100,000 people, that makes it the largest mass layoff at any U.S. corporation in at least 20 years. Cringely wrote that notices have started going out, and most of the hundred-thousand-plus will likely be gone by the end of February.

IBM immediately denied Cringely’s report, indicating that a planned $600 million “workforce rebalancing” was going to involve layoffs (or what the company calls “Resource Actions”) of just thousands of people. But Cringely responded that he never said that the workforce reductions would be all called layoffs—instead, multiple tactics are being used, including pushing employees out through low ratings (more on that in a moment). And some managers are indeed admitting to employees that their job has been eliminated as part of Project Chrome, leading employees to coin a new catchphrase: “Getting Chromed.”

The news is coming in from around the world, and is affecting folks in sales, support, engineering—just about every job description. The only IBM’ers spared are those working in semiconductor manufacturing, an operation that is in the process of being acquired by Global Foundries.


Brookings Video Piece on Aquion

February 3rd, 2015

Disclosure: I sell solar power systems in NZ.

Bring it on.

Via: Brookings Institution:

More: America’s Advanced Industries: What They Are, Where They Are, and Why They Matter


Apple to Convert Failed Arizona Sapphire Factory to Data Center

February 3rd, 2015

Disclosure: I bought a single Feb27 put option on Apple last week.

The better to see you with, my pretties!

Via: ComputerWorld:

Apple on Monday confirmed it will convert a failed sapphire factory into a data center that will also double as the hub to control the company’s other server farms.

“We’re proud to continue investing in the U.S. with a new data center in Arizona, which will serve as a command center for our global networks,” an Apple spokeswoman said in an emailed statement. She characterized the center as “one of the largest investments we’ve ever made.”


Disclosure: I’m Long DBA

February 3rd, 2015

Warning: This is not a recommendation to buy, sell or hold any financial instrument.

Went long PowerShares DB Agriculture ETF (DBA) this morning.


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