.CO sets sights on changing ‘the fabric of the Internet’

For the millions of people who equate the Web with .com, . CO Internet is out to change that mindset.

The Miami company that manages and markets the .co domain is already making impressive gains — more than 1.4 million in 200 countries have hung their businesses, blogs, personal projects or dreams on a .co virtual shingle. Still, that’s just a tiny fraction of industry titan VeriSign’s 105 million .com registrants.

“We want to change the fabric of the Internet,” Juan Diego Calle, founder and CEO of .CO Internet, said during an interview in .CO’s Brickell office. “We can only make that happen not by changing what happened in the last 25 years of the Web, which is owned by .com. We want to change the next 25.”

About 2½ years after the launch of .CO Internet, .co — the country code of Colombia — continues to be one of the fastest-growing Internet domains in the world and grew by 24 percent in 2012. .CO Internet is profitable and is projecting to bring in more than $25 million in revenues this year, the company said. The early success of .CO Internet, with operations in Miami and Colombia, is powered by passion and perseverance.

Calle moved to Miami from Colombia at age 15 with his family. He started several businesses, including one he sold in 2005 providing seed capital for what would come next. “I can’t say I ever sat still.” When he learned Colombia would be licensing its .co Internet code in late 2006, he said it hit him like a lightning bolt.

With the right strategy and by “marketing the hell out of it,” the entrepreneur believed .co could solve a huge problem in the market — vanishing Internet domain names. If you’ve tried to nab a new .com address lately, you can relate — it’s difficult to find one that hasn’t been snatched up.

Calle thought that by appealing to the hearts and minds of the entrepreneur, .co could go where .info, .biz, .net or .me had never gone before. But first he needed the right team.

One of this first stops: The Big Apple, to visit Nicolai Bezsonoff, who had been an advisor and shareholder in Calle’s TeRespondo.com, a sort of Ask Jeeves for the Latin American market that was sold to Yahoo in 2005. At the time, Bezsonoff was the director of technology and operations at Citigroup.

“We went out for coffee, he started pitching me on a napkin. I said ‘really dude you want me to leave a big job at Citigroup for this?’ ” said Bezsonoff. “But he kept showing me the numbers … Later, that napkin was on my desk and it was one of those boring days and I kept looking at it and thought maybe I should.” He would become .CO’s chief operating officer.

Lori Anne Wardi, a lawyer and serial entrepreneur who was working at a venture capital firm at the time, became vice president in charge of brand strategy, business development and global communications. “She’s the heart and soul of the company,” said Calle. Eduardo Santoyo, based in Bogota, would become corporate vice president over policy and be the iaison with the Colombian government. “Some would say it was overkill talent but I needed the best. ... When you have a big dream, you have to think big and hire the right people,” Calle said.

Read More..

Miami Beach builder Robert Turchin looks back — and ahead

If former Miami Beach vice mayor Robert Turchin had been a Miami decision maker during the recent vote that decided the fate of The Miami Herald building, he would probably have voted with the ‘nays’ allowing its demolition.

“There’s nothing special about it,” says the 90-year-old Turchin as he cruises Collins Avenue between 63rd and 48th streets, a strip dense with buildings from the same period as the Herald’s — specimens of post-war Miami Modern (MiMo) architecture that he constructed.

It is no exaggeration to say that Turchin built much of post-war Miami Beach, collaborating with Melvin Grossman, Morris Lapidus and other MiMo period architects. From 1945 to 1985, his firm was the busiest in the building trade. Royal York, Montmartre, Moulin Rouge, King Cole, Charter Club, Four Ambassadors — the list goes on, numbering upward of 100 buildings.

“I grew up when Miami Beach was a small town. It was 1945, and the hotels would close during the summer for renovations because they had no air conditioning. I couldn’t wait for summers, when I would return from school and work on the construction sites,” Turchin says.

In an era when hotel signs sometimes read “No Jews or dogs,” Turchin’s father was a successful builder who hoped his son would be a diplomat. It was not to be. After serving in World War II, for which he recently received a French Legion of Honor medal, he started his first project. Like subsequent ones, it broke the mold.

“The GI Bill made housing affordable for veterans, but it was single-family housing. I wanted to build a four-family unit under the bill,” Turchin says. It was an unprecedented proposal that went from city to state to federal agencies before it was approved. The multi-unit buildings launched the concept of condominiums.

As did other builders, he began to experiment with air conditioning. “Once we were able to air condition them, the hotels stayed open year-round. The beach boomed then,” he says.

Buildings came down to make way for new ones. Turchin’s Morton Towers went up where Carl Fisher’s circa 1920 Flamingo Hotel stood on 15 acres. “The land had become more valuable than the building,” he explains.

Turchin became known as “the builder’s builder” for riding to the top floor of construction sites on the hook of a crane, and walking the beams to inspect the work. His view of the built landscape was daring, pragmatic, and often at odds with those of preservationists like Nancy Liebman, a Miami Beach city commissioner from 1993 to 2001 who served with Turchin on the city’s first historic preservation board.

“A lot of the beautiful mansions on the bay and beach were lost to that kind of development,” laments Liebman. “It was the typical mentality of throw it away and build something new.”

But Turchin was building for the next generation. To him, the Art Deco buildings of his father’s generation — Edgewater Beach, the Sands and the Sea Isle where he honeymooned with his wife — were old school.

“They made no sense. They were all building with a few trees in front. They weren’t called Deco back then. Curlicues on concrete is how we thought of them,” he says.

Read More..

Legal feud over Spanish-language TV leads to federal suit in Miami

What began as a highly-touted affiliation between a new Spanish-language national television network and a popular independent local station in Miami has dissolved into a legal dispute of David and Goliath proportions.

MundoFox Broadcasting, part of the family of communications giant News Corporation, filed suit in the U.S. District Court Southern District of Florida against the parent company of America Tevé Channel 41-WJAN, America-CV Network, for breaching two agreements forged in May.

The complaint alleges that in South Florida "MundoFox’s initial launch had less exposure, viewership was lower, soliciting advertisers became more difficult and advertising revenue decreased,” because the network was swapped to inferior channel positions by cable providers.

In a statement, America-CV Network, denied the allegations in the complaint and announced that it will defend itself vigorously.

— DANIEL SHOER ROTH

Read More..

Unemployment claims on the rise in Miami-Dade

Miami-Dade County ended 2012 with more people joining the unemployment rolls than it did last year.

The late-year increase in first-time unemployment claims broke a trend of declining applications throughout most of 2012. First-time claims spiked about 15 percent in November and December, with about 17,500 new applications in all over those 60 days. That’s compared to 15,000 during the same time in 2011. For the entire year, claims were still down about 10 percent.

In Broward, overall claims were down 15 percent. In November and December, Broward residents applies for 10,200 first-time unemployment benefits, compared to about 10,500 in 2011 — a 3 percent drop.

DOUGLAS HANKS

Read More..

4 smartphones with standout features

These days, smartphones are almost all drawing from the same bag of tricks, and it can be hard to tell one from the next. If the average smartphone will do all the basic things you want it to, what does it take to be special? Here are four smartphones with unusual features that really make them stand out.

Nokia Lumia 920

Rating: 4 stars out of 5 (Excellent)

The good: This phone forges new Windows Phone ground with wireless-charging support and a highly sensitive screen you can use with gloves. Moreover, Nokia helps fill in Windows Phone OS gaps with a few missing features.

The bad: A thick, heavy build and slippery finish for some colors make the Lumia 920 harder to hold and carry, and the phone’s overhyped camera doesn’t have enough settings.

The cost: $99.99

The bottom line: Nokia’s Lumia 920 is heavy and thick, but if you want the most powerful, feature-rich Windows Phone smartphone available, this is it.

Samsung Galaxy Note 2

Rating: 4 stars out of 5 (Excellent)

The good: Oodles of screen real estate make this terrific for videos, games, and reading, and its improved stylus aids productivity. A blazing quad-core processor, a great camera and strong battery life round out the advantages of this Android 4.1 phone.

The bad: The huge display makes it unwieldy to carry, and hiccups in the S Pen stylus and apps can slow you down. The pricey Note 2 isn’t a suitable tablet replacement across all categories.

The cost: $149.99 to $309.99

The bottom line: Samsung delivers a powerful, boundary-pushing device that gets a lot right. Yet its complicated features and high price raise questions about its purpose.

Motorola Droid Razr Maxx HD

Rating: 4 stars out of 5 (Excellent)

The good: This Droid (Verizon) offers fast performance, a big, eye-popping screen and luxurious design. It also has great call quality, lots of storage, 4G data speeds, and unbeatable battery life.

The bad: The major weakness is a camera that produces subpar images. The phone is filled with Verizon bloatware as well.

The cost: $149.99 to $299.99

The bottom line: Motorola’s fast, stylish Droid Razr Maxx HD offers outstanding battery life, but its camera captures unimpressive images.

Samsung Galaxy Beam

Rating: 3.5 stars out of 5 (Very good)

The good: An integrated pico projector, as well as a dual-core processor, 720p video capture and a 4-inch Super AMOLED screen.

The bad: The projection software needs some work, the 5-megapixel camera sometimes blurs indoor shots, and the Beam is thicker and heavier than many phones.

The cost: $474.49 to $839.99

The bottom line: Despite weak software, the Galaxy Beam’s bright projector pushes boundaries, and strong smartphone features make it a worthy standalone device.

Read More..

Jobs grow, wages dip

Wages in South Florida took a dip last summer, despite a spike in hiring.

New federal data show that while employment continues to grow in Broward and Miami-Dade counties, the average weekly wage dropped during the second quarter of 2012. In Broward, the weekly wage dropped .7 percent to $830 and in Miami-Dade it inched down .5 percent to $876, according to the Bureau of Labor Statistics.

The shift is tiny, and bucks an overall trend of rising wages in South Florida since the end of the 2007-09 recession. But the statistics also show South Florida underperforming most of the nation as the recovery gains traction. Of the ten largest counties in the country, only Miami-Dade saw wages decrease between the second quarter of 2011 and the second quarter of 2012.

Taking the broader pool of the 329 largest counties in the United States, Broward have 276th worse record in terms of wage gains for the second quarter of 2012, and Miami-Dade the 269th.

Both counties fared far better in terms of adding jobs, with employment up 2 percent in Broward and 2.3 percent in Miami-Dade. That put Broward in 122nd place in terms of employment growth among the large counties, and Miami-Dade in 98th place.

Read More..

Florida company provides electrical power for the world

More than 4,000 miles from its home base in Doral, Energy International is helping keep the lights on and the power grid humming in Gibraltar, the British territory on the southern tip of the Iberian Peninsula.

Energy International, a global provider of power plants and energy solutions, sent a temporary plant that will provide power for at least the next two years while a more permanent fix is sought for the territory’s erratic and aging electrical system.

The Doral company was founded 14 years ago as MCA Power Systems and its initial goal was to pursue energy contracts in Latin America. It began 2000 with a name change and in recent years its focus has become global.

“The world needs energy,’’ said Brett Hall, EI’s vice president of finance.

While the 2007-2008 recession curtailed the growth of worldwide energy demand, the U.S. Energy Information Agency has projected that global demand for electricity will increase by 2.3 percent annually from 2008 to 2035.

The potential is especially strong in developing nations. The International Energy Agency estimated that in 2009, 21 percent of the world’s population — 1.4 billion people — didn’t have access to electricity. In sub-Saharan Africa, the percentage of people without power rises to 69 percent.

Energy International has expanded sales from Latin America and the Caribbean to Europe, Africa and the Middle East, boosting revenue from $100 million annually in 2009 to more than $300 million today, Hall said. This year, EI is anticipating revenue of $350 million to $375 million.

In the next seven years the company, which is privately owned by American shareholders and affiliated with Gecolsa — the Caterpillar dealership in Colombia — hopes revenue will top $1 billion, he said.

Even though Energy International is based in the United States, it does little work domestically. Its sweet spot is emerging economies and contracts of $100 million or less.

“Our focus is to do whatever makes the most economic sense for a particular market,’’ said Hall.

“We’re not going to be building a nuclear power plant,’’ he said. But EI will accommodate its solutions to local fuel supplies whether it’s biofuel, natural gas or heavy fuels that are more prevalent.

When it comes to the type of temporary power solution needed by Gibraltar, which had been plagued by a string of power outages at its archaic electrical facilities, EI can have a temporary plant up and running in 30 to 40 days, supplying the engineering, rental turbines and other equipment and doing the installation.

“We were able to support Gibraltar’s power needs on short notice,’’ said Andres Molano, EI’s vice president of sales. “Some of their equipment required major maintenance and they needed to stop their plants.’’

EI, one of the world’s largest suppliers of interim energy solutions, signed a $12 million contract with the government of Gibraltar in November and the plant was operational by Dec. 21. The agreement includes an option for a three-year extension.

The equipment now in use in Gibraltar is considered part of EI’s fleet and will move on to other energy emergencies when its service in the territory famed for the Rock of Gibraltar is complete.

But when it comes to its permanent power plants, EI will build a facility for a client looking to generate its own power or construct a plant, run it and sell power directly to the final user.

“We can do all the work ourselves. We have all the skills in house — finance, design, operations, maintenance, building and the equipment,’’ said Hall.

Energy International has moved into the Middle East, completing projects in Oman and Yemen and establishing a subsidiary in Dubai in 2012 to pursue business in Africa and the Middle East, said Molano.

“Africa is new to us, but we believe there are opportunities there,’’ he said.

The company also is looking for continued growth in Latin America, especially in Colombia, which is now attracting foreign investors who previously had been spooked by violence.

Remote areas of the Amazon where temporary power solutions are needed also represent opportunity for the company.

“EI is very fortunate to be in a position in which we have more excellent opportunities than capital.’’ said Hall, so this year it will be concentrating on raising equity to finance growth.

“One of our biggest challenges in 2013,’’ Hall said, “will be to find investors or joint venture partners to provide capital that will enable EI to perform these projects so our aggressive revenue growth targets can be achieved.’’

Read More..

Needle reaches the inner groove for Spec’s

In the end, even the almighty Adele and Taylor Swift could not hold back the inevitable.

Spec’s, one of the last great record stores, will close its flagship location in Coral Gables on U.S.1, thus joining once-favored chains like Virgin, Tower and Peaches, locally and abroad, that have withered from Internet shopping.

With the closing, sometime in January after the merchandise is liquidated, 64 years of history becomes memory for countless people who discovered a love of music in the home Martin “Mike” Spector built in 1948 when U.S.1 was but a two-lane road.

The original store, which sold cameras alongside 78-rpm records, was a few blocks south on the highway in South Miami and is now an Einstein’s bagel spot. The present location, opened in 1953 in Coral Gables, lived through the bobby sox era, Beatlemania, disco, punk, hip hop/rap, grunge, electronic dance music and all the format changes including 12-inch vinyl, 45-rpm, reel to reel, 8-track, cassette, compact disc and mp3.

After the first music industry recession in the late 1970s, Spec’s still managed to double in size by breaking through the walls of two restaurants in 1980 on its north side. The original room on the south side of the building would house, first, Spec’s’ VHS movie rentals and sales — Saturday Night at Spec’s! — and, later, one of the most expansive collections of classical music in town.

“It’s the soundtrack of our lives,” said store manager Lennie Rohrbacher, who spent 23 years of his life working at Spec’s, from Clearwater to Coral Gables

Music sales

At its peak, the Spec’s chain grew to some 80 stores in Florida and Puerto Rico. In 1993, annual sales exceeded $70 million. Spec’s went public in 1985 and, in 1998, the Spectors sold to Camelot Music Group, which was acquired by Trans World Entertainment Corp.

Trans World, which did not return several telephone messages, shrewdly kept the Spec’s name attached to the flagship store as goodwill even though, technically, it operated under the company’s retail subsidiary, F.Y.E. (For Your Entertainment).

But those are the cold, hard business facts.

Spec’s was “not like another Eckerd’s,” a drug store chain that also slipped into oblivion amid changing times, said Rohrbacher. “This was part of the community, part of my life. It’s not another store going under.”

Indeed, Spec’s was, first and foremost, a community gathering spot to share a love of music. In the ‘70s and ‘80s Spec’s resembled a makeshift camp site where people would sleep overnight in the parking lot to get the best shot at concert tickets in a pre-Internet world. Spec’s, a hop-skip from the University of Miami’s music school, served as its own music education outlet thanks to a knowledgeable sales staff.

Music education

“The proximity to the UM is prime real estate. Not to have it there will really be different. Even if they didn’t have what I was looking for, the staff was knowledgeable and you were sort of tapping into this knowledge base of people who could turn you on to new music. That’s what I’ll miss about it and the community around the store,” said Margot Winick, an employee at the Coral Gables Spec’s in the mid-1980s when she was a freshman at the UM.

Read More..

New Florida bill would speed up the foreclosure process

TALLAHASSEE --
A “faster foreclosures” proposal that sparked consumer outcry and protest last year has resurfaced in a more moderate form, with a new bill filed this week by Rep. Kathleen Passidomo, R-Naples.

The bill, HB 87, offers a slew of changes to the civil procedures governing foreclosures in Florida, where home repossessions are on the rise again.

Most of the provisions are aimed at speeding up and cleaning up the foreclosure process, which currently takes more 600 days to run its course in Florida.

“We need to make the sure the process is as efficient as possible while at the same time giving the borrower their due process rights,” said Passidomo. “Unfortunately, if you don’t have an income or you can’t afford to pay anything, the property can’t just sit in limbo forever.”

The bill — which proposes strict paperwork requirements for lenders, fast-track foreclosure procedures and a shield against some thorny legal scenarios — comes at a time when banks are beginning to rev up their foreclosure machines again after a two-year lull.

Foreclosure filings in Florida jumped 20 percent in the last year, and the Sunshine State now has the nation’s highest foreclosure rate. And even though the housing market is improving, there are plenty of foreclosures still set to take place in the coming years. One in five mortgages in the state are currently delinquent, and more than half of those have not yet entered the foreclosure process, according to Lender Processing Services.

Lenders spent two years cooling down their home repossession machines after news surfaced in 2010 that bank employees had been rapidly filling out foreclosure paperwork without properly reviewing it. The “robo-signing” scandal led to a landmark $25 billion national settlement between states and five major banks last year, clearing the way for a more streamlined foreclosure process.

But nearly a year after the settlement was announced, foreclosures continue to slog slowly through the court system in Florida.

Passidomo’s bill aims to speed things up. It requires mortgage lenders to certify that they have the correct paperwork proving they have the right to foreclose.

The measure also gives condominium associations the ability to speed up the foreclosure process when a bank is moving too slowly. Condo associations have been forced to shoulder significant maintenance costs while banks carry out foreclosures. Banks have been accused of purposefully slowing down the process in order to limit their costs.

For their part, banks get a bit of a gift in the bill as well. Currently, if a lender forecloses on a home and later is sued for doing so wrongfully, the lender can only be forced to pay monetary damages. That means the homeowner can’t get his or her house back — a proposition that could be especially difficult if the bank has sold the home to an unsuspecting third party. Passidomo’s bill would eliminate that awkward scenario, and free the bank from having to recoup a house it sold to another party after a faulty foreclosure.

Some consumer advocates are already speaking out against the bill. It’s the third attempt by lawmakers in the last three years to push for foreclosure reform — and each has led to consumer outcry, including a march on the state Capitol last year.

“Might be a good time to start contacting your Florida state representatives in the state House and Senate on this issue,” Lisa Epstein, a West Palm Beach foreclosure activist, wrote in an email to her followers. “The more Floridians who oppose this bill and the earlier they oppose it, the better.”

The bill sheds some of the controversial provisions of the 2012 proposal, which passed the Florida House but died in the Senate last year.

A provision that would have allowed for faster foreclosures on homes that appear to be abandoned has been scrapped from the new bill. The “apparently-abandoned property” measure faced backlash from consumer advocates who said people would be thrown out of their homes without proper notice.

The measure includes a provision that consumer activists supported last year to limit banks’ ability to go after homeowners for additional debt after a foreclosure.

Banks currently have five years to pursue a so-called “deficiency judgment” against a homeowner. The bill reduces that time-period to one-year.

“The bill has far more borrower protections than what is current,” said Passidomo.

Toluse Olorunnipa can be reached at tolorunnipa@MiamiHerald.com or on Twitter at @ToluseO.

Read More..

Google strikes deal with FTC to end antitrust probe

LOS ANGELES — Google reached a settlement with the Federal Trade Commission to make voluntary changes to its search practices to put an end to a 19-month antitrust probe, the FTC announced Thursday.

Google also has settled an investigation into its handling of mobile technology patents that it acquired when it bought Motorola Mobility.

The settlement brings to a close one of the FTC's most closely watched investigations. Google still faces antitrust investigations by European regulators and some U.S. state attorneys general. Google is expected to offer concessions to resolve the European Union probe later this month.

Google agreed to give marketers more control over their ads. It also agreed to limit its use of snippets or reviews and other content from rivals, a practice that it had already moved away from.

It also resolved a separate antitrust case involving Google's use of patents to attempt to keep competitors from using mobile technology.

“The changes Google has agreed to make will ensure that consumers continue to reap the benefits of competition in the online marketplace and in the market for innovative wireless devices they enjoy,” said FTC Chairman Jon Leibowitz. “This was an incredibly thorough and careful investigation by the commission, and the outcome is a strong and enforceable set of agreements.”

But competitors don't see it that way. That the Internet search giant is emerging largely unscathed from the antitrust probe frustrated competitors, including software giant Microsoft, which had its own years-long battle with antitrust regulators in the late 1990s and 2000s just as Google began its rise to dominance in online search.

Microsoft, which runs the Bing search engine, has accused Google of abusing that dominance, harming consumers and competitors. It has railed against the FTC for doing nothing to rein in Google's growing monopoly on the Web.

Google handles about two-thirds of all U.S. Web searches, according to research firm ComScore Inc. It handles more than 80 percent in much of Europe. The software giant has mounted campaigns to condemn Google's business practices. Smaller competitors have also complained that Google search results unfairly promote links to its own business listings, Google+ social network and other online services.

Google has maintained that it has done nothing wrong.

“The evidence the FTC uncovered through this intensive investigation prompted us to require significant changes in Google's business practices. However, regarding the specific allegations that the company biased its search results to hurt competition, the evidence collected to date did not justify legal action by the Commission,” Beth Wilkinson, outside counsel to the FTC, said in a written statement. “Undoubtedly, Google took aggressive actions to gain advantage over rival search providers. However, the FTC's mission is to protect competition, and not individual competitors. The evidence did not demonstrate that Google's actions in this area stifled competition in violation of U.S. law.”

“The conclusion is clear: Google's services are good for users and good for competition,” David Drummond, Google's senior vice president and chief legal officer, said in a blog post.

The settlement with the FTC and the search giant was nearly done before the Christmas holiday, but concern that the deal was too weak from rivals and state attorneys general delayed a vote from the commission.

David Balto, a former policy director of the FTC's bureau of competition, who also has done some paid work for Google, said the decision was a “win-win” for consumers.

“Consumers benefit because Google will not be hobbled by unnecessary regulation or denied the opportunity to try to win consumer loyalty through aggressive competition,” Balto said. “The FTC's mission is protect consumers and as today's statement makes clear, there is no consumer harm.”

Read More..

Cruise industry veteran Pamela Conover named CEO of SeaDream

SeaDream Yacht Club, a niche cruise operator with two small ships, announced the appointment of Pamela Conover as CEO on Wednesday.

Conover, who was previously president and CEO of luxury six-ship Seabourn Cruise Line, took over the position Wednesday. It had been filled by Atle Brynestad, SeaDream’s chairman and owner, since 2009. SeaDream president Bob Lepisto will keep that role.

Since 2011, when Seabourn moved its offices from Miami to Seattle, Conover has been special advisor and brand ambassador for the brand, part of Carnival Corp. She was Seabourn’s president and CEO from 2006-2011 and also served as president and chief operating officer of Cunard Line Limited, which operated Cunard and Seabourn ships, from 2001 until 2004, when the brands were split.

She will work from the Miami office of SeaDream, known for its focus on service and upscale but casual atmosphere. SeaDream’s “yachts,” as they’re called, sail to the Caribbean, Costa Rica, the Amazon, the Mediterranean, the Black Sea and Asia.

Conover and Brynestad have their former companies in common: Brynestad founded Seabourn in 1987 and became chairman of Cunard Line Limited when Seabourn and Cunard merged in 1998. He left that job in 2000 and founded SeaDream the following year, using ships that were formerly from the Seabourn fleet.

“I am delighted to have an executive of Pam’s talent and expertise to lead the SeaDream management team,” Brynestad said in a statement. “We have worked together over the years and have a great track record of success together.”

Read More..

Housing, jobs key to lifting S&P toward record

NEW YORK --
With it appearing that Washington lawmakers are working their way past the “fiscal cliff,” many analysts say that the outlook for stocks in 2013 is good, as a recovering housing market and an improving jobs outlook helps the economy maintain a slow, but steady recovery.

Reasonable returns in 2013 would send the S&P 500 toward, and possibly past, its record close of 1,565 reached in October 2007.

A mid-year rally in 2012 pushed stocks to their highest in more than four years. Both the Standard & Poor’s 500 and the Dow Jones industrial average posted strong gains in 2012. Those advances came despite uncertainty about the outcome of the presidential election and bouts of turmoil from Europe, where policy makers finally appear to be getting a grip on the region’s debt crisis.

“As you remove little bits of uncertainty, investors can then once again return to focusing on the fundamentals,” says Joseph Tanious, a global market strategist at J.P. Morgan Funds. “Corporate America is actually doing quite well.”

Although earnings growth of S&P 500 listed companies dipped as low as 0.8 percent in the summer, analysts are predicting that it will rebound to average 9.5 percent for 2013, according to data from S&P Capital IQ. Companies have also been hoarding cash. The amount of cash and cash-equivalents being held by companies listed in the S&P 500 climbed to an all-time high $1 trillion at the end of September, 65 percent more than five years ago, according to S&P Dow Jones Indices.

Assuming a budget deal is reached in a reasonable amount of time, investors will be more comfortable owning stocks in 2013, allowing valuations to rise, says Tanious.

Stocks in the S&P 500 index are currently trading on a price-to-earnings multiple of about 13.5, compared with the average of 17.9 since 1988, according to S&P Capital IQ data. The ratio rises when investors are willing to pay more for a stock’s future earnings potential.

The stock market will also likely face less drag from the European debt crisis this year, said Steven Bulko, the chief investment officer at Lombard Odier Investment Managers. While policy makers in Europe have yet to come up with a comprehensive solution to the region’s woes, they appear to have a better handle on the region’s problems than they have for quite some time.

Stocks fell in the second quarter of 2012 as investors fretted that the euro region’s government debt crisis was about to engulf Spain and possibly Italy, increasing the chances of a dramatic slowdown in global economic growth.

“There is still some heavy lifting that needs to be done in Europe,” said Bulko. Now, though, “we are dealing with much more manageable risk than we have had in the past few years.”

Next year may also see an increase in mergers and acquisitions as companies seeks to make use of the cash on their balance sheets, says Jarred Kessler, global head of equities at broker Cantor Fitzgerald.

While the number of M&A deals has gradually crept higher in the past four years, the dollar value of the deals remains well short of the total reached five years ago. U.S. targeted acquisitions totaled $964 billion through Dec. 27, according to data tracking firm Dealogic. That’s slightly down from last year’s total of $1 trillion and about 40 percent lower than in 2007, when deals worth $1.6 trillion were struck.

Read More..

Week brings startup launches, social media advice for 2013

Jared Kleinert, a South Florida entrepreneur, plans to soon launch Synergist, a platform that allow social entrepreneurs to meet potential co-founders online, collaborate and crowdfund their new projects. He also just launched AliveNDead, a blog about risk-taking, and he interns for a Silicon Valley startup.

And when he’s not doing all that, he’s going to class — he’s a junior at Spanish River High School in Boca Raton.

Lester Mapp is CEO and founder of the new Miami-based startup called designed by m. His team has just designed a sleek, ultra-thin aluminum iPhone bumper and launched the project on Kickstarter. After just a few days, Mapp is already more than a third of the way to his $20,000 fund-raising goal.

Read about both these entrepreneurs on The Starting Gate blog, where there’s also a post on the most pressing issues facing small businesses in the coming year — taxes, healthcare, lending and a skilled worker shortage, for starters.

And as you are ringing in the New Year, you may be resolving to beef up your business’ social media strategy. Susan Linning's guest post offers five top tips for boosting your social media effectiveness. Among them: Go beyond retweets and make your posts original, fun and personal (but not too personal.) Use visuals, too. Find this and other news, views and tools for entrepreneurs on the blog, which is at the bottom of MiamiHerald.com /business.

Follow me on Twitter @ndahlberg and Happy New Year to all.

Read More..

Sales contracts for houses and condos in Miami-Dade rose in November

Homebuyers continued to sign contracts to buy homes and condominiums in Miami-Dade county at a brisk pace in November.

Pending sales for an existing single-family home or condominium spiked 52 percent in Miami-Dade in November to 3,374 units from 2,226 a year earlier, according to the Miami Association of Realtors.

The volume of pending sales – reflecting a sales contract signed on a transaction that hasn’t closed – fell 19.1 percent in November from October, the Realtors’ group said.

Pending sales for single-family homes rose 73.8 percent in November from a year earlier, while that for condos increased 37.4 percent year over year, Miami Realtors said.

The group said Miami-Dade is on track to hit a new sales record existing homes and condos for 2012.

With exceptionally tight inventory of residential property on the market and rising demand, properties are selling at closer to their asking prices. Single-family homes sold in November got 93.7 percent of the original listing price on average, while condominiums fetched 96.2 percent, Miami Realtors said.

Read More..

90-year-old real estate baron, philanthropist Jay Kislak is forever young

Real estate baron Jay I. Kislak discovered a Fountain of Youth of sorts that springs from an inquisitive and acquisitive mind.

At 90, Kislak is wheeling and dealing in real estate, and he’s exploring history and art with the fervor of a man generations younger.

The patriarch of The Kislak Organization marked 74 years in real estate this year, 59 spent in Miami.

While he has long since appointed a protégé, Thomas Bartelmo, as president and CEO of the diverse family-owned real-estate businesses, Kislak remains chairman. And he is a regular at the headquarters in Miami Lakes.

That is, when he’s not off to Maine for the summer.

Or busy chairing a blue-ribbon commission named by the U.S. Interior Secretary to orchestrate the 450th anniversary in 2015 of the founding of St. Augustine.

Or jetting off to evaluate a possible acquisition. (Kislak recently looked at the potential for real estate development in North Dakota, booming with shale oil, but decided to pass.)

Kislak’s empire has gone through dramatic changes over the years. He built — and eventually sold — commercial banking, mortgage servicing and insurance firms.

Today, with annual revenue in excess of $28 million, his organization focuses on the commercial brokerage business started by his father, Julius Kislak, in Hoboken, N.J., more than a century ago; on owning a portfolio of apartments and other property (Kislak is on the prowl for more), and on managing funds of property-tax certificates, a niche created by the economic downturn.

Looking out his office window at a bustling interchange recently, Kislak mused: “I remember when they built the Palmetto Expressway and you could drive down it and never see another car.”

“The same thing with I-95: There was hardly any traffic,” said Kislak, a slender man with a signature mustache and a thick Hoboken accent that never faded.

Kislak moved to Miami in 1953 to grow the mortgage business, but his world view hardly dates to 1950s Florida. Already a book lover, he began pulling on a thread of Florida history, soon broadening his interest to the early Americas.

Over the decades, Kislak, bankrolled by a stream of brokerage commissions, mortgage fees and apartment rent, grew into a prominent collector of rare books and maps, manuscripts, artifacts and art to feed his fascination with the pre-Columbian era and the European exploration of America.

His wife Jean Kislak shares his passion for collecting. They met at a party for Andy Warhol; it would be her second marriage, his third. Their quest for art, history and collecting has taken them to all continents, even Antarctica.

“We don’t quit [collecting]. But we are going to quit,” said Jean, a former corporate art director. “Acquisition has always been a part of my life. I don’t know if it’s a sickness.”

In 2004, Kislak gave away much of the treasure. His foundation donated more than 3,000 rare maps, manuscripts, paintings and artifacts to the Library of Congress. The gift, estimated to be worth in excess of $150 million, is housed in the ornate Thomas Jefferson building in an exhibit that bears his name. Kislak also funds fellowships for studies of the collection, part of his diverse efforts over the years to support education. Among other things, his family foundation endowed the Kislak Real Estate Institute at Monmouth University, in West Long Branch, N.J., and has provided key support to a real estate program at Florida State University.

Read More..

Miami: We’re still busiest cruise port

Florida’s ports are steaming bow-to-bow in the race to be the world’s businest cruise ship port.

Though some publications have reported Port Canaveral in the lead with 3,761,056 million for its fiscal year ending Sept. 30, PortMiami officials Monday said they had hosted 3,774,452 passengers during the same period, putting it slightly ahead. Fort Lauderdale’s PortEverglades reported 3,689,000 passengers for the period, putting it slightly behind the others in third place.

“We’re all very close,’’ said Paula Musto, PortMiami spokeswoman.

PortMiami has slipped below its previous high of 4 million plus passengers because of changing ship deployments, she said. That number is expected to again cruise past 4 million in 2013 as several new ships homeport in Miami.

Jane Wooldridge

Read More..

Lawyer takes child-support practice on the road

Her clients know her as “the child support lady with the cool truck.”

Chantale Suttle thinks that’s a pretty good description of her and her months-old business, DADvocacy.

For almost 20 years, she’s dealt with child support issues. In law school at the University of Miami, she interned in the child support office, and she went on to handle child support issues as a prosecutor, defense attorney and magistrate judge.

These days, she helps dads navigate the child support system from her mobile office: a bulletproof truck, wrapped with a photo of a man’s muscular, crossed arms, complete with a soundproof consultation room, sports magazines, sodas — and free diapers.

“We do not want to be fancy, golf-playing, mahogany-office kind of lawyers. I’m just a lady you come talk to about child support,” said 42-year old Suttle.

And for teen dads, she does it for free.

“I feel that’s when I can help them the most, and I feel that’s where being part of the child support system can be the most damaging to his future because of the credit bureau reporting,” Suttle said.

Older dads can get help for a flat fee.

Suttle drives the converted 22-passenger van herself. When it’s not parked outside of the child support courthouse at in Downtown Miami, Suttle motors throughout the county to speak at community events.

On a recent evening, the DADvocacy van was parked outside of the Girl Power community center, on Seventh Avenue just off I-95 in Miami. There, Fatherz in the Hood — an organization that provides training and resources for dads — organized an information session for parents frustrated with the child support system.

Suttle stood in front of a semi-circle of seated dads, both young and old, and schooled them about the child support system so that they, hopefully, would not have to see her for services.

Florida’s child support court is different from family court, where parents sort out divorce and domestic violence issues, she explained. Child support court deals only with issues related to collecting child support, which goes often goes directly to the state for social programs — not the mother.

Child support is based on “time-sharing” between parents, and fathers who spend more time with their kids may pay less child support.

“This system is supposed to reward good dads who spend time with their kids,” she told the Fatherz in the Hood group. “On this, we are light-years away from any other state.”

The dads at Fatherz in the Hood chuckled when, using an online calculator, Suttle showed them a huge drop in the amount of child support a dad would have to pay just by spending more overnight time with his kids. In one scenario, the mother actually ended up owing the father child support.

“Any of you know moms paying child support?” an amazed participant asked.

The dads shook their heads, “No.”

Another eye-opening bit of information that Suttle shares with all of her clients — whether they hire her or not — is how to use the Miami-Dade Clerk of Courts online filing system to check on their own cases’ status and any upcoming hearings. Her truck has a hotspot with internet access to check this information on the road, and she also checks to make sure she doesn’t have a conflict in the case — such as having ruled on any issues involving the mother while she served in her other legal roles.

Read More..

Time’s up for holiday shopping procrastinators

Last minute shoppers like Josette Tyne are in luck this year.

With a long weekend before Christmas, retailers want to make it easier for procrastinators to finish their gift buying. Macy’s for the first time is keeping all its stores open around the clock from Friday until Sunday at midnight. Toys “R” Us and Walmart Supercenters will be open non-stop until Christmas Eve.

Even those retailers skipping the all nighter still have added extended hours often as late as 11 pm or midnight. Coupled with a flurry of last minute promotions, they hope to lure shoppers, many of whom have been largely sitting on the sidelines since Black Friday.

Tyne, 33, just starting her shopping this week at Aventura Mall, armed with a list of about two dozen people and the presents they wanted. The list would have been longer if the Fort Lauderdale resident hadn’t limited it to the kids in her family.

“I’ll probably be shopping every day from now till Sunday,” said Tyne, as she wheeled the youngest of her three boys around H&M in a stroller before heading on to Game Stop, Urban Outfitters and BCBG. “Whatever catches my eye. Luckily the kids usually like everything I get. I’m the awesome Auntie.”

A Consumer Reports Poll released earlier this week found that with just five shopping days left until Christmas, a whopping 68 percent of shoppers — a projected 132 million Americans — have yet to finish their holiday shopping.

With an early Thanksgiving leaving an extra week until Christmas and a long weekend before Tuesday’s holiday, shoppers have felt little need to rush. They also haven’t found December deals to be quite as compelling as the November sales.

Based on disappointing sales trends earlier this month, ShopperTrak said Wednesday it was cutting its holiday sales forecast. The company, which counts foot traffic and its own proprietary sales numbers from 40,000 retail outlets across the country, now expects a 2.5 percent sales increase to $257.7 billion, down from the 3.3 percent growth it initially predicted. The National Retail Federation is sticking with its prediction of a 4.1 percent sales increase.

Online sales trends are more encouraging, up 13 percent to $35 billion from Nov. 1 through Dec. 16, according to comScore, an online research firm. But that pace is below the forecast of 17 percent for the season.

“It’s coming down to the wire,” said David Bassuk, managing director and co-head of the retail practice at AlixPartners, a global consulting firm. “It’s going to require retailers to be more aggressive with their promotions than they were hoping heading into the weekend.”

While the economy is certainly in a better position than it was during the recession, many consumers still feel uneasy this year about their financial future. Some are worried about the U.S. job market and others fear the stalemate between Congress and the White House over federal “fiscal cliff’’ that could lead to tax increases and less disposable income for shoppers.

That was the case for Latonya Jones, on the hunt for bargains at Aventura Mall, coupon-loaded iPad in hand.

“I wasn’t going to buy anything this year, because I wanted to save money,” said Jones, 39, of Miami Gardens, who was shopping with her daughter Richelle, 12, this week in Macy’s. “But then I changed my mind.”

Read More..

Time’s up for holiday shopping procrastinators

Last minute shoppers like Josette Tyne are in luck this year.

With a long weekend before Christmas, retailers want to make it easier for procrastinators to finish their gift buying. Macy’s for the first time is keeping all its stores open around the clock from Friday until Sunday at midnight. Toys “R” Us and Walmart Supercenters will be open non-stop until Christmas Eve.

Even those retailers skipping the all nighter still have added extended hours often as late as 11 pm or midnight. Coupled with a flurry of last minute promotions, they hope to lure shoppers, many of whom have been largely sitting on the sidelines since Black Friday.

Tyne, 33, just starting her shopping this week at Aventura Mall, armed with a list of about two dozen people and the presents they wanted. The list would have been longer if the Fort Lauderdale resident hadn’t limited it to the kids in her family.

“I’ll probably be shopping every day from now till Sunday,” said Tyne, as she wheeled the youngest of her three boys around H&M in a stroller before heading on to Game Stop, Urban Outfitters and BCBG. “Whatever catches my eye. Luckily the kids usually like everything I get. I’m the awesome Auntie.”

A Consumer Reports Poll released earlier this week found that with just five shopping days left until Christmas, a whopping 68 percent of shoppers — a projected 132 million Americans — have yet to finish their holiday shopping.

With an early Thanksgiving leaving an extra week until Christmas and a long weekend before Tuesday’s holiday, shoppers have felt little need to rush. They also haven’t found December deals to be quite as compelling as the November sales.

Based on disappointing sales trends earlier this month, ShopperTrak said Wednesday it was cutting its holiday sales forecast. The company, which counts foot traffic and its own proprietary sales numbers from 40,000 retail outlets across the country, now expects a 2.5 percent sales increase to $257.7 billion, down from the 3.3 percent growth it initially predicted. The National Retail Federation is sticking with its prediction of a 4.1 percent sales increase.

Online sales trends are more encouraging, up 13 percent to $35 billion from Nov. 1 through Dec. 16, according to comScore, an online research firm. But that pace is below the forecast of 17 percent for the season.

“It’s coming down to the wire,” said David Bassuk, managing director and co-head of the retail practice at AlixPartners, a global consulting firm. “It’s going to require retailers to be more aggressive with their promotions than they were hoping heading into the weekend.”

While the economy is certainly in a better position than it was during the recession, many consumers still feel uneasy this year about their financial future. Some are worried about the U.S. job market and others fear the stalemate between Congress and the White House over federal “fiscal cliff’’ that could lead to tax increases and less disposable income for shoppers.

That was the case for Latonya Jones, on the hunt for bargains at Aventura Mall, coupon-loaded iPad in hand.

“I wasn’t going to buy anything this year, because I wanted to save money,” said Jones, 39, of Miami Gardens, who was shopping with her daughter Richelle, 12, this week in Macy’s. “But then I changed my mind.”

Read More..

After its sale to South Beach neighbors, Raleigh brand to grow

The Raleigh hotel, an Art Deco gem famous for its curlicue black-framed pool, has sold to new owners with plans to turn the hotel into a national brand.

But before Raleigh siblings pop up in locales around the country, new owners David Edelstein and Sam Nazarian will pour $2-$5 million into the 1940 property at 1775 Collins Ave.

They certainly have experience in that area. Edelstein developed and owns W South Beach, about four blocks north of the Raleigh. And Nazarian, who is based in Los Angeles, opened the SLS Hotel South Beach just south of the Raleigh on the same block earlier this year.

Brilla Group is the seller. The all-in price for the hotel, a parking lot nearby and the brand was $55 million, Edelstein said.

Read More..