College Homecoming

I went to my college homecoming last weekend. I never thought I would answer the question "what are you doing now?" so many times. That said, I loved it. It was a great opportunity to catch up with people about what they were doing. The question is worth answering because that way others have to answer.

I get alot of ideas out of interactions like that. And some folks offer valuable connections.

Important lesson learned from my father

Always have a book with you wherever you go. It's amazing how having an interesting book can make otherwise frustrating waits into an enjoyable time. The 10 minute wait at the dentist's office can be productive if you let it be.

What I'm reading now: Eyewitness to Power by David Gergen. Gergen is a former speechwriter to Nixon who went on to work in the White House for Ford, Reagan and Clinton. He's a very moderate Republican who now teaches in the Harvard Kennedy School of Government. His book is supposed to be about leadership lessons from those four presidents. In other words, it seems like he wrote the book with his classes at the Kennedy School in mind. So now he can make students buy his book, and he can profit from teaching. [This is a personal pet peeve of mine.] The book is much less anecdote-heavy than usual. I'm underwhelmed thus far.

I also got The New New Thing by Michael Lewis of Liar's Poker and Moneyball fame. The Tipping Point by Malcolm Gladwell, which seems to be a highly recommended business book. Netanyahu: The Road to Power, a 1998 biography by Caspit and Kfir (originally written in Hebrew; translated by Cummings).

Rocket

I know that this blog focuses mainly on business and related topics. But I still have to brag on my Astros, even if I am the ultimate fair weather fan.

I'll let the article say it all:

At 42, Roger Clemens is the oldest Cy Young winner and an unprecedented seven-time honoree. The right-hander won the award six times in the American League — three with the Boston Red Sox, two with the Toronto Blue Jays and one with the New York Yankees.

With this latest honor, Clemens is the only player to win BBWAA postseason awards with four teams. His eight trophies, including the 1986 AL Most Valuable Player award, are the most for any player or manager. He joins Gaylord Perry, Pedro Martinez and Randy Johnson as Cy Young winners in both leagues.

After pitching for the Yankees in the 2003 World Series, Clemens posted an 18-4 record and 2.98 ERA to help the Astros qualify for the playoffs, resulting in them coming within a victory of reaching the World Series for the first time in franchise history.

Clemens is a hometown Houston boy.

Oil prices falling

The Houston economy is still very affected by the price of crude. The price has finally declined below $50 to about $48.

As I love Houston, I do hope that the price of oil stays as a reasonable level long-term. However, sustained short-term oil price plunges create buying opportunities in the real estate market as the economy suffers. I'll be watching the price of oil.

Merck

Merck is trading at about $26 or $27. This is about a 75% decrease from the stock's January 2001 high.

Merck obviously has troubles. It faces expensive litigation even if it wins, and possible regulatory review. It has lost the earnings of one of its primary performers. According to rumors, Merck resumes are floating around the industry.

I still haven't done a thorough investigation of how I think the stock should be valued. However, my gut is telling me that the market is overreacting. Traders have a tendency to do this. The PE is 8.5, the dividend yield is almost 6%. Even if the price can only hold steady, 6% yield is pretty good.

Product lines for PR

This story makes me laugh:

Jones Soda Co. takes the idea of a liquid diet to a new low. How does Green Bean Casserole Soda strike you? And how about an aggressively buttery-smelling Mashed Potato Soda?

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Even the creators of the fizzy concoctions at this small Seattle soda company can hardly stomach the stuff. But last year's unexpected success of the Turkey & Gravy Soda means another round of bizarre food-flavored soft drinks.

As an added bonus, they're calorie-free.

This week Jones Soda Co. launches a full meal deal of five Thanksgiving soda flavors, from the bile-colored Green Bean Casserole to the sweet — but slightly sickly — Fruitcake Soda. Last year's Turkey & Gravy is also back on the menu.

I think this is a PR stunt.

Jones is a smart, quirky company. They make "gourmet" sodas, which are generally very tasty. I believe they are from the Northwest, and seem to love that quirky semi-hippie vibe from up there. Their problem isn't so much in keeping customers; it's in getting the distribution that allows them to go after customers. Jones isn't available many places so far, but I'm sure they'd like to build some brand recognition for places that they go in the future.

And look -- they've managed to get very good coverage. Most newspapers have picked up the story!