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My Old Man

By Ron Harris, Conway, SC

There was great relief and much celebration in America on August 14, 1945, as America noted “Victory over Japan,” or “V-J Day.”  Some three weeks later, World War II was formally over with the signing of Japan’s surrender on Sept. 2, 1945 on the USS Missouri in Tokyo Bay.

Those events’ upcoming 65th anniversaries likely won’t draw much attention, at least not as much as they should.  When I think of what occurred the four years previous (1941-45) to those historic dates, I remember My Old Man.

As I grow older, I think about him a lot — my long-deceased father whom I rarely had time for as a teenager, young man, 30-something, etc.  He died in 1986 at the age of 65.  I passed the 67-year mark this past March and reflect periodically on that uneventful birthday: “Well, I’ve outlived my old man, for whatever that means from an anatomical and heredity analysis,” I muse.  Of course, my mother died in 1964 at age 40, so my mortality genes are likely quite confused.

With my family’s health history, I’m probably not likely to probe the treasure troves of life many more years, but that’s okay.  I live life on life’s terms now. For all the potholes and problems therein, my tenure on this planet has been good.  I have a comfortable retirement income, a wonderful spouse, two loving adult children, an outstanding daughter-in-law and the three cutest, smartest grandkids east of the Mississippi.

I believe I owe my good life, in some or large part, to the efforts of My Old Man, and his American brethren who have come to be regarded as the nation’s “Greatest Generation.”   The years are taking their toll, and those Greats are dwindling rapidly.

And now you’re muttering, “Oh, geez – here we go with another sentimental journey under the apple tree with those geezers that whipped the Axis powers and saved the world.  Put on Glenn Miller and Andrews Sisters’ music, old dude.”

Well, okay, let’s take that journey (sans Glenn and the Sisters), and I promise not to get overly sentimental.  If at any time you want to hop off this cruise, feel free…

…he was the youngest of five children raised in the Texas panhandle, kids of cotton farmers who squeezed out a living during the Great Depression.  College, of course, was out of the question for them.  His two sisters married in their teens and moved nearby, he and his two brothers helped on the farm, the oldest becoming a farmer himself, the other a tractor mechanic.

They did what they had to do and rarely complained about their situation(s), or lack of material things.  They were decent, hard-working men and women who loved their families and country, asking nothing from anyone.

My Old Man was the only one in his family to serve in the military and WWII.  He sought to enlist immediately after Pearl Harbor, but his eyesight nixed his admittance into the Navy or Air Corps.  He tried the Army, but was rejected for his “flat feet.”  He resigned himself to the notion that the military didn’t have a place for him.

But those feet must have miraculously improved in two years, because in the fall of 1943 (a few months after I was born), he got the “Greetings” letter from Uncle Sam – and he was off for basic training in the Army.  A few months later he was on a troopship to the South Pacific, along with hundreds of other troopships and thousands of GIs as the war in the Pacific raged.

Growing up, I learned in bits and pieces from family conversations that My Old Man – a muscular farm-kid who made PFC merely by toting a Browning Automatic Rifle (BAR) and its belted ammo — had been at New Guinea, Saipan, and then the retaking of the Philippines in late 1944, the battles for Leyte and Leyte Gulf, particularly.

I asked him only once over the years if he had gotten any medals in WWII.  He commented, dismissively, “Yeah, I got a Purple Heart and a Good Conduct medal – both of which I could have done without.”

He fibbed a bit there, but I didn’t know it until after his death in 1986, because, as with most Americans in that war, he talked little about his experiences in combat.  The horrors of war are often unspeakable and something few people, particularly those in WWII, want to revisit.

In the summer of 1986, my wife, stepmother and I were going through My Old Man’s belongings and papers, as families do after a loved one’s passing. Therein we found the paperwork, and old hometown newspaper accounts, of some incidents on Leyte — his actions in combat that won him a Bronze Star with oak leaf cluster for bravery in combat.

I won’t go into too much detail here about those actions; he wouldn’t like that. The military report, I’m sure, was minimal, and the hometown newspaper article possibly hyperbolic.  Suffice to say that he provided cover that assisted most of his squad to slip away from a strategically-positioned Japanese machine-gun nest, before he was wounded twice in each leg in that firefight.  But he remained conscious and helped take out the nest before passing out.

When he awoke, he was on the ground in the jungle, not in the clearing where he had previously been.  His wounds had been partially tended, but one Army medic lay dead near him, another was severely wounded some yards away.  Other GIs around him were in a firefight with Japanese soldiers.  My Old Man, according to reports, dragged himself to the wounded medic, then dragged and pulled himself and his comrade to a ditch, away from the heaviest fighting, and used his body to cover his wounded comrade.

For those actions in that clearing and in that jungle, My Old Man received Bronze Stars.  That’s not a big deal to some folks, a lot of those medals have been awarded.  A veteran in Stephen Ambrose’s excellent work, “Citizen Soldiers,” a GI at the Battle of the Bulge, said about medals, “…almost everybody got a Bronze Star there [Bulge], or should have.”

But those Stars and that knowledge was a big deal to me, for I saw My Old Man in a different light than I ever had.  It was an epiphany that I cherish now.

He never mentioned the Bronze Star(s), nor the actions for which he received them, perhaps because he never considered his actions valorous, only necessary. And neither did any of the family talk about it when I was growing up.  My Old Man just didn’t care to speak of any of it, I’m sure preferring to forget rather than remember.

Valor like his, and much more from thousands of others, should never be forgotten.  We Americans should remember the price of freedom every day of our lives, and be forever grateful that My Old Man and thousands of other fathers, husbands, brothers, sisters, sons, and daughters were and are ready to pay that price if necessary.

There are some in our nation who abhor and protest war so vehemently and absolutely that they disdain the people who must pay the price for their right to that protest, and some unequivocally hate the uniform and the symbols the uniform conjures.

My Old Man wouldn’t like that.  But, he wouldn’t say anything about it, except maybe, “They’re entitled to their opinions.  That’s what freedom’s all about.”

For all his human failings and the differences we had, he was a good man and a class act.  One doesn’t have to be a military veteran to be either good or classy, but I give all Vets the benefit of the doubt.  And I say “thank you” to every military person I see in uniform when it’s possible to do so.

I also wore the uniform, Navy whites and blues from 1964 – 68, but the closest I came to combat was a bar-room brawl in San Diego.  Not exactly something I like to talk about, either, but for totally different reasons than that of the Greatest Generation.

As for My Old Man, I salute you, Pop, and also say “Thanks.”  Thanks for doing what had to be done, and never carping about it.  You spent the rest of your life in a painful struggle on so many fronts, physical and emotional, but you never complained.  As you noted from time to time, “Keep your problems and troubles to yourself or within the family, son, and work ‘em out.  Ninety percent of people don’t care about ‘em, and the other 10 percent are glad you got ‘em.”

As horrible as wars were and are, they are a fact of life.  They always have been and always will be, unless or until a human-triggered Armageddon ceases all of mankind’s trials and tribulations.

I pray your great-grandkids will not have to face the horrors you did, Dad.  But if they do, I want them to remember the role models from the “Greatest Generation,” particularly you.

———————–

“There are no extraordinary men – just extraordinary circumstances that ordinary men are forced to deal with.”  — Vice Adm. William “Bull” Halsey, following the Battle of Midway, June, 1942.

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SALE OF NOVALIGN ORTHOPAEDICS, INC.

Gerbsman Partners ( http://www.gerbsmanpartners.com ) has been retained by NovaLign Orthopaedics, Inc. ( http://www.novalign.com  ) to solicit interest for the acquisition of all, or substantially all of, NovaLign’s assets.

Headquartered in Memphis, Tennessee, NovaLign is a medical device company that has developed innovative, next generation intramedullary nail technologies to address the estimated $2 billion global trauma market for the treatment of humeral, femoral, and tibial fractures.

IMPORTANT LEGAL NOTICE:

The information in this memorandum does not constitute the whole or any part of an offer or a contract.

The information contained in this memorandum relating to NovaLign’s Assets (as defined herein) has been supplied by NovaLign.  It has not been independently investigated or verified by Gerbsman Partners or their respective agents.

Potential purchasers should not rely on any information contained in this memorandum or provided by Gerbsman Partners (or their respective staff, agents, and attorneys) in connection herewith, whether transmitted orally or in writing as a statement, opinion, or representation of fact.  Interested parties should satisfy themselves through independent investigations as they or their legal and financial advisors see fit.

Gerbsman Partners, and their respective staff, agents, and attorneys, (i) disclaim any and all implied warranties concerning the truth, accuracy, and completeness of any information provided in connection herewith and (ii) do not accept liability for the information, including that contained in this memorandum, whether that liability arises by reasons of NovaLign’s or Gerbsman Partners’ negligence or otherwise.

Any sale of the NovaLign Assets will be made on an “as-is,” “where-is,” and “with all faults” basis, without any warranties, representations, or guarantees, either expressed or implied, of any kind, nature, or type whatsoever from, or on behalf of NovaLign and Gerbsman Partners. Without limiting the generality of the foregoing, NovaLign and Gerbsman Partners and their respective staff, agents, and attorneys,  hereby expressly disclaim any and all implied warranties concerning the condition of the NovaLign Assets and any portions thereof, including, but not limited to, environmental conditions, compliance with any government regulations or requirements, the implied warranties of habitability, merchantability, or fitness for a particular purpose.

This memorandum is not to be supplied to any other person without Gerbsman Partners’ prior consent.  The information contained herein is not subject to the Confidential Disclosure Agreement, however any additional requested information would require execution of the attached CDA attached hereto as Appendix B.

Company Profile

NovaLign Orthopaedics, Inc., a Memphis, Tennessee based medical device company, is developing next generation intramedullary nail technology to address the estimated $2 billion fracture fixation market.  NovaLign™ offers compelling advantages to patients and surgeons by providing implantable devices that avoid damage to nearby joints and tissues in the process of repairing long bone fractures.

Founded in 2005 as a start-up company within The Innovation Factory (Duluth, GA), NovaLign has raised $13.8 million in two rounds of venture capital financing.  Current investors include Versant Ventures (Menlo Park, CA), SV Life Sciences (Boston) and Accuitive Medical Ventures (Duluth, GA).

NovaLign’s mission is to develop new solutions for treating long bone fractures that minimize damage to nearby joints, soft tissues, and neurovascular structures.  The goal of the technology is to create a stable fracture repair that promotes healing and utilizes a surgical technique that is simple and straightforward for surgeons. The ultimate goal is to heal the fracture with the least possible damage to healthy tissues, and allow patients to return to normal function as quickly as possible.

The core of NovaLign’s technology is the NovaLign® Intramedullary Fixation System (IFS), an implant that can be inserted into the intramedullary canal in a flexible state and then converted to a rigid state.  This conversion from flexible-to-rigid imparts the strength and rigidity needed to manage loads encountered during the healing process.


NovaLign believes its assets are attractive for a number of reasons:

· The NovaLign® IFS Nail is FDA cleared and currently on the US market.  NovaLign’s 510(k) (K083458) provides clearance to market in 3 fracture markets: femur, tibia, and humerus.
· NovaLign is the only company offering extra-capsular compression nailing for fracture repair, meeting unmet clinical needs for both patients and physicians.
· NovaLign’s intellectual property, including 1 licensed issued US patent, 15 pending US patent applications, 1 allowed international licensed patent, and 13 pending international patent applications, is a broad portfolio that protects novel ways of treating long bone fractures.
· The NovaLign® IFS Nail technology has no royalty obligations.
· Reimbursement codes have already been established and confirmed for all 3 clinical applications (CMS and AMA certified).
· Leading orthopaedic trauma surgeons have actively supported and implanted NovaLign’s devices.
· The company has collected a significant amount of pre-clinical and clinical scientific evidence in support of the technology.
· NovaLign has achieved and maintains ISO 13485 certification.
· NovaLign has undergone a Technical File review to receive the CE-mark and is currently addressing minor non-conformities.  We estimate that it will take four months to complete the remaining tasks for securing CE-mark approval.
· NovaLign believes the IFS Nail design is scalable for other markets and continues to expand the breadth and depth of its intellectual property.


Impact of Technology on the Market

NovaLign believes that its novel IFS Nail offers several advantages over currently marketed nails and plates.  The surgical technique associated with the technology completely avoids all articular surfaces and preserves all surrounding tendons and ligaments.  No tendon or ligament has to be manipulated, pushed to the side, or split for the insertion of the product; thereby creating minimal additional harm to the patient.

NovaLign’s cannulated IFS Nail contains interconnected segments that transition from a flexible state to a rigid state through cable tensioning, allowing the system to be inserted outside of the joint. This preserves critical soft tissues around the joint.  Acquiring access to NovaLign’s intellectual property is critical for any company that must be on the leading edge of the trauma market.

Current treatment methods for fractures include bracing, plating, and nailing.  Bracing requires multiple adjustments that cause patient discomfort throughout the healing process.  Plating requires large incisions for direct exposure of the fracture site that can lead to increased blood loss, risk of nerve damage and disruption of the blood supply.  Conventional intramedullary (IM) nails for humeral fractures violate the rotator cuff leading to shoulder pain and motion loss in 16-37% of patients. Standard retrograde femoral nailing (through the knee joint) causes knee pain in 20-36% of patients with the pain lasting for years.  Conventional tibial IM nailing can lead to knee pain in 57-83% of patients with the pain having been documented to last more than 14 years.


Intellectual Property Summary

NovaLign believes it has a unique intellectual property portfolio for minimally invasive treatment of long bone fractures. At present, NovaLign has an exclusive license to 1 issued US patent, 15 pending U.S. patent applications, 1 allowed licensed international patent, and 13 pending international patent applications, each as more specifically described in Appendix C.  The portfolio represents a broad array of strategic variables including:

  • Specific claims regarding fracture compression with an IM device;
  • Multiple embodiments of implant technology that enable the intramedullary device to be inserted in a flexible state and transitioned to a rigid state once inside the bone;
  • Exclusive license for use of a collet fixation system patent for all orthopaedic and spine applications excluding cerclage fixation, ACL fixation, articulating joint applications and bunion surgery of the first MTP joint.  This fixation system is a key design feature that ensures the rigid state of the device is repeatable and reversible;
  • Unique instrument for tensioning a device and maintaining tension while locking the device;
  • Provisional application for multiple embodiments of devices designed for treating proximal femur fractures;
  • Technology using metal reinforced structures combined with a hardenable fluid to repair bone fractures; and
  • Expandable stent technology combined with polymer to repair bone fractures.


NovaLign’s Assets

NovaLign has developed a technology portfolio that delivers a product platform for treating long bone fractures with minimal damage to bone, soft tissues, and neurovascular structures.  These assets fall into a variety of categories, including:

· Patents, patent applications, and trademarks

· 510(k) clearance in 3 fracture markets including humerus, femur, and tibia

· Technology addressing the estimated $2 billion global market for treating humeral, femoral, and tibial fractures (US Markets for Trauma Devices: 2008 and 2009 by Millennium Research).

· Established and certified reimbursement codes

· Extra-capsular intramedullary fixation that meets clinically unmet needs

· Optional fracture compression

· Unique and clinically relevant patient data

· Market supporting pre-clinical and clinical trials underway

· Next generation product designs

· Product cost reduction designs

· Manufacturing and design equipment

· Surgical product inventory

· Intellectual capital and expertise

The assets of NovaLign will be sold in whole or in part (collectively, the “NovaLign Assets”). The sale of these assets is being conducted with the cooperation of NovaLign. NovaLign and its employees will be available to assist purchasers with due diligence and a prompt, efficient transition to new ownership. Notwithstanding the foregoing, NovaLign should not be contacted directly without the prior consent of Gerbsman Partners.

Next Milestones – August 2010

NovaLign is working toward additional key milestones that will be achieved by the end of August 2010.  These include:
1)   Completion of an animal study at Auburn University assessing the ability of the NovaLign® IFS Nail to be removed from a living animal (goat humerus) six months post-operatively.
2)   Obtaining 6-month human clinical results on approximately ten patients enrolled in NovaLign’s multi-center, multi-national clinical study.


Management

Jeffrey G. Roberts – President & CEO: Jeff has served as NovaLign’s president and CEO since September 2007. From 2000 to 2007, Jeff served in executive management roles, including Senior Vice President and Chief Technical Officer at Wright Medical Technology, Inc., a publicly traded orthopaedic implant company. Jeff has more than 25 years of experience in the orthopaedic medical device industry and has been involved in the design, development, and manufacture of many orthopaedic devices, implants, and instruments for total joint reconstruction, arthroscopy, biologic, and extremity applications.

Board of Directors

· Charles Larsen, Chairman: Vice Chairman, The Innovation Factory – Duluth, GA
· David Milne: Managing Partner, SV Life Sciences – Boston, MA
· Jeffrey G. Roberts: President & CEO, NovaLign Orthopaedics, Inc.  –  Memphis, TN
· Beckie Robertson: Managing Director, Versant Ventures – Menlo Park, CA


The Bidding Process for Interested Buyers

Interested and qualified parties will be expected to sign a Confidential Disclosure Agreement (attached hereto as Appendix B) to have access to key members of management and intellectual capital teams and the due diligence “war room” documentation (“Due Diligence Access”). Each interested party, as a consequence of the Due Diligence Access granted to it, shall be deemed to acknowledge and represent (i) that it is bound by the bidding procedures described herein; (ii) that it has had an opportunity to inspect and examine the NovaLign Assets and to review all pertinent documents and information with respect thereto; (iii) that it is not relying upon any written or oral statements, representations, or warranties of Gerbsman Partners, or their respective staff, agents, or attorneys; and (iv) all such documents and reports have been provided solely for the convenience of the interested party, and Gerbsman Partners (and their respective staff, agents, or attorneys) do not make any representations as to the accuracy or completeness of the same.

Following an initial round of due diligence, interested parties will be invited to participate with a sealed bid, for the acquisition of the NovaLign Assets. Each sealed bid must be submitted so that it is received by Gerbsman Partners no later than Friday, September 17, 2010 at 5:00pm Central Daylight Time (the “Bid Deadline”) at NovaLign’s office, located at 5885 Ridgeway Center Parkway, Suite 210, Memphis, TN 38120.  Please also email steve@gerbsmanpartners.com <mailto:steve@gerbsmanpartners.com>  with any bid.

Bids should identify those assets being tendered for in a specific and identifiable way. In particular, please identify separately certain equipment or other fixed assets. The attached NovaLign fixed asset list may not be complete and bidders interested in the NovaLign equipment must submit a separate bid for such assets.

Any person or other entity making a bid must be prepared to provide independent confirmation that they possess the financial resources to complete the purchase.  All bids must be accompanied by a refundable deposit in the amount of $200,000 (payable to NovaLign Orthopaedics, Inc.).  The deposit should be wired to NovaLign’s attorneys Murray & Murray, A Professional Corporation.  The winning bidder will be notified within 3 business days of the Bid Deadline. The deposit will be held in trust by NovaLign’s counsel.  Unsuccessful bidders will have their deposit returned to them within 3 business days of notification that they are an unsuccessful bidder.

NovaLign reserves the right to, in its sole discretion, accept or reject any bid, or withdraw any or all assets from sale.  Interested parties should understand that it is expected that the highest and best bid submitted will be chosen as the winning bidder and bidders may not have the opportunity to improve their bids after submission.

NovaLign will require the successful bidder to close within a 7 day period. Any or all of the assets of NovaLign will be sold on an “as is, where is” basis, with no representation or warranties whatsoever.

All sales, transfer, and recording taxes, stamp taxes, or similar taxes, if any, relating to the sale of the NovaLign Assets shall be the sole responsibility of the successful bidder and shall be paid to NovaLign at the closing of each transaction.

For additional information, please see below and/or contact:

Steven R. Gerbsman
Gerbsman Partners
(415) 456-0628
steve@gerbsmanpartners.com

Kenneth Hardesty
Gerbsman Partners
(408) 591-7528
ken@gerbsmanpartners.com

Dennis Sholl
Gerbsman Partners
(415) 457-9596
dennis@gerbsmanpartners.com

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Here is a piece from WSJ´s Venture Capital Dispatch blog by Scott Austin.

“How confident are venture capitalists about the industry right now? It depends on whom you ask, and how you ask it.

A small quarterly survey that checks the confidence meter of venture capitalists in Silicon Valley shows these investors lost some of their enthusiasm in the second quarter due to concerns over macroeconomic trends, unpredictable liquidity opportunities, and regulatory uncertainty specific to the venture industry.

As he does each quarter, Professor Mark Cannice of the University of San Francisco emailed Silicon Valley VCs in June and asked them to estimate their confidence in the San Francisco Bay Area entrepreneurial environment over the next six to 18 months. On a five-point scale, with five being the most confident, 32 VCs registered an average of 3.28. That’s lower than the first-quarter reading of 3.65 and ending five consecutive quarters of improvement.

So much for VCs getting their swagger back.

But wait, there’s another survey. This one, from executive-recruiting firm Polachi Inc., is much larger, polling more than 1,000 VCs nationwide. Among the survey’s six questions is, “Are you more confident about the state of the VC industry today than you were one year ago?” Fifty-six percent said yes.

As Polachi notes, that’s considerably better than in last year’s survey when 60% said no, even if that was during one of the worst years for venture investors on record.

No matter whether confidence is rising or not, venture capitalists have plenty to be worried about. According to the Polachi survey, the exit market is the top concern, followed by investor syndicate risk and their portfolios.

Cannice compiled comments from most of the VCs in the survey, asking them to clarify their confidence rating. One of the weightiest comments came from an anonymous investor who seems to have lost his confidence in everything: “Structural shifts in the venture business will constrain the availability of capital at a time when funds need cash. Several firms will collapse in the next 18 months. Add a bit of carry tax and corporate income tax rate increases and a soft Euro and US economy and you have a more difficult situation developing.”

Here are some select venture capitalist comments from Cannice’s survey (you’ll see a common theme):

Bob Ackerman, Allegis Capital: “While entrepreneurial activity continues apace, uncertainty around the broader funding and exit environments continue to place an on-going damper on new investment activity…Until either or both of these factors are addressed, capital investment in new ventures is likely to be moderate.”

Igor Sill, Geneva Venture Management: “Key to investment timing in start-ups is visibility in public market liquidity, and though we’ve seen a few IPOs, there appears to be little appetite for IPOs over the next 6-9 month period. Having said that, there are several outstanding, profitable and high growth private companies well prepared to go public when the public market window prevails. Optimistic employment metrics will go a long way in opening up the public markets for new tech offerings.”

Brian Panoff, Granite Ventures: “I think the fundamental value of innovative technology companies remains strong. In this type of economic environment, productivity gains through technology are more important than ever. My optimism is only tempered by instability in the capital markets and regulatory environments.”

Bill Byun, Samsung Ventures: “General deal flow is strong but the next few quarters will determine the enthusiasm, based mainly on market performance.”

Dan Lankford, Wavepoint Ventures: “The large tech companies have cash and are looking to fill their product pipelines, so we are starting to see some acquisitions. It would be helpful if the public equity markets could show some positive movement.”

Read the original post here.

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Here is an interresting outlook from SF Gate.

“Corporate profits may grow at the slowest pace of the year in the third quarter as an economic recovery that’s short on jobs and consumer demand curbs income at companies from Chevron Corp. to 3M.

Earnings at Standard & Poor’s 500 index companies may rise 25 percent in the three months through September, compared with projected gains of 34 percent for the just-ended second quarter, according to analysts’ estimates compiled by Bloomberg. Per-share earnings rose 52 percent from January through March.

“We’ve got players out there that are suffering from Armageddon hypochondria,” said James Paulsen, chief investment strategist of Wells Capital Management in Minneapolis, which oversees $375 billion. Instead of portending an economic crisis, the slower profit growth is “your commonplace, very normal mid-cycle soft patch in the recovery.”

Financial market turmoil has increased risks to the recovery, the International Monetary Fund said Thursday, while predicting the world economy will grow 4.6 percent this year, the most since 2007. In the United States, the S&P 500 dropped 12 percent from April through June as unemployment averaged 9.7 percent and new home sales slumped to the lowest pace on record in May.

Companies in the Stoxx Europe 600 index may post average profit gains of 57 percent this year, dwindling to 22 percent in 2011, based on analysts’ estimates compiled by Bloomberg. Luxury carmakers such as Daimler are benefiting from the euro’s slide against the dollar, while the euro’s weakness against the yen may have curbed earnings at Japanese technology firms.

Sales at nonfinancial companies will be the best indicators of the economy’s health worldwide, said Sinan Akiman, chief investment officer at Istanbul-based Garanti Asset Management, which oversees $4.2 billion.

“If there is no, or very limited, increase in sales of nonfinancial companies, that means the economy is still not recovering,” Akiman said. “We should especially look at big retail industry companies.”

In the United States, earnings gains for S&P 500 companies will continue through the second half of 2010 and average 34 percent for the full year, analysts surveyed by Bloomberg project.

“Our economy is beginning to repair itself, but it’s by no means ready to run a marathon,” said Matt McCormick of Cincinnati-based Bahl & Gaynor Inc., which has $2.8 billion under management. “I do see earnings growth, but it’s not going to be broad-based.”

Alcoa, the first company in the Dow to report earnings for the second quarter, may post a profit for the first time in three quarters today. Financial companies are predicted to post an average gain of 54 percent in the third quarter, with increases of 36 percent for information technology firms and 39 percent for energy companies. The estimates all represent declines from the quarter that ended in June, when those sectors are projected to have grown 84 percent, 53 percent and 73 percent, respectively.

In energy, fuel demand may be stunted at Chevron, Exxon Mobil and ConocoPhillips, the largest U.S. oil companies. New York oil futures, which traded as high as $87.15 a barrel in May, dropped to as low as $71.09 this month.

Analysts have trimmed estimates for financial companies in the past month in response to weaker revenue from trading and investment banking.

“There won’t be any standout companies reporting to the upside, and there could be some real shockers on the downside,” said Dick Bove, a Lutz, Fla.-based analyst at Rochdale Securities. Investment banking, trading and retail sales of financial products “suffered severe reversals from the first quarter,” when four of the largest U.S. banks reported zero days of trading losses, Bove said.”

Read more here.

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What goes up must stall and… Here is an interesting article on Facebook´s growthfigures from SF Gate.

“The number of new Facebook users in the United States dropped dramatically in June, with the popular social networking site losing more than a quarter of a million regular users between ages 18 and 44, according to figures collected by a market research website.

Inside Facebook, which analyzes user data that the social network provides to advertisers, noted that in the last 31 days Facebook registered 320,800 new active members – first-time users and those who logged into Facebook for the first time in over a month. The figure is notably low compared with the astronomical 7.8 million new active users registered in May, which represented a 6.7 percent monthly growth.

According to the latest company figures, Facebook has 500 million registered users.

“In terms of the overall trends in Facebook’s U.S. growth, this was a flatter month than usual for Facebook, which has seen about 3 to 4 percent monthly growth in the U.S. on average over the last year,” said Inside Facebook founder Justin Smith.

In contrast, June’s monthly growth was only 0.3 percent.

What’s more, 253,840 American members ages 18 to 44 didn’t even log on to Facebook in the same 31-day period. The largest group – more than 100,000 – was women ages 26 through 34.

Analysts believe it’s too early to say exactly what these numbers mean because a month’s data is not enough to detect patterns. The decline might be something as simple as a glitch, a reporting mistake from Facebook or a seasonal fluctuation.

Ray Valdes, an analyst with market research firm Gartner, said many people travel, graduate and get married during the summer, which may keep them away from their social networks.

“Less excitingly, the negative growth could simply be a blip. But in the years we’ve been tracking the demographic data, we’ve rarely seen a dip like this, so we would tend to favor the idea of a root cause,” Inside Facebook’s Chris Morrison wrote on Tuesday.

The data could also be a reflection of the saturation of the U.S. market, which Smith said they have been anticipating for some time. According to Inside Facebook, the social network giant had achieved a 41.1 percent market penetration as of the end of last month.

And there’s even less room to grow among young adults in the United States, said Josh Bernoff, an analyst with technology research firm Forrester.

“It certainly wouldn’t surprise me if we have seen growth among users between ages 18 to 34 reach its maximum,” he said. “Of course, once you do that, the only way to go is down.”

Bernoff said the decline in new active users might be a calculated consequence of a shift in Facebook’s growth strategy. For one, given the saturation of the young adult market, Facebook has been focusing on attracting users in older demographics.

“Growth among people 35 years old and up is always accompanied by a decline among people 18 to 34,” he said. “The reason is quite simple: Once your dad is in there, it’s not cool anymore.””

Read more here. 

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