Thursday, May 16, 2013

Pack Heat or Pay Up

The small southern town of Nelson, Georgia recently passed a law requiring all "Heads of Households" within city limits to maintain a loaded firearm in their homes, under penalty of a maximun fine of $1,000.  Exempted from this ordinance are those who either (1) “suffer from a physical or mental disability,” (2) are “paupers,” (3) “conscientiously oppose maintaining firearms as a result of beliefs or religious doctrine,” or (4) have been “convicted of a felony.”

One city resident, Harold Kellett, does not suffer from any physical or mental disability, he is not destitute; Mr. Kellett has never been convicted of a felony, nor does he object to owning a weapon on any philosophical or religious grounds.  Mr. Kellett simply does not want a gun in his home.  As such, Mr. Kellett was forced to purchase a firearm, under the threat of a $1,000 fine.  

Luckily for Mr. Kellett, he is a member of the Brady Center to Prevent Gun Violence, which has filed a lawsuit against Nelson, on the grounds that the town's mandatory gun ownership law is unconstitutional.

Specifically, the Brady campaign asserts that this law infringes on the constitutional rights of the residents of Nelson in four ways, citing three amendments (Second, First, Fourteenth) and one constitutional principle (right to privacy):

A) SECOND AMENDMENT (Right to Bear Arms) -- The Second Amendment, in its most individualistic interpretation, affords an individual the right to own a gun for his own personal protection.  The argument that seems to be made by Brady's attorneys here (if I read it correctly) is that the Second Amendment also gives individuals the right not to own a gun, if that is how they decide to protect themselves.  This position is akin to the First Amendment argument currently being used by cigarette manufacturers in their fight against the FDA's requirement that they put 'graphic imagery' on all packs of cigarettes sold in the US.  The cigarette companies claim that the first amendment not only gives them the right of free speech, but protects them from being compelled to speak -- or in this case, put a picture of a dying lung cancer patient on their product.

B)  FIRST AMENDMENT (Free Speech) -- Brady's attorneys have channeled the above-mentioned thinking in their complaint by stating "Freedom of speech includes freedom to act or not to act."  By requiring, in lieu of purchasing a firearm, that a resident identify himself as member of one of the exempt groups (disabled, destitute, a felon, or morally opposed to gun ownership), the statute "forces individuals to impugn their own mental abilities, stigmatize themselves as impoverished, or profess to having beliefs including religious beliefs, different from other members of their community."

C) FOURTEENTH AMENDMENT (Equal Protection Clause) -- The statute requires that the 'Head of Household' maintains a weapon in his or her home.  As such, this law creates two classes: heads of households and non-heads of households, who are treated differently under the law.  The law turns the non-heads of households into "second-class individuals [who] have no input into the decision whether guns are brought into their homes."  For example, a non-head of household could fit into one of the exempt groups, but no consideration for this is made.

D) THE RIGHT TO PRIVACY -- Lastly, the attorneys for Brady cite precedent establishing a constitutional "zone of privacy," protecting the sanctity of one's home.  By forcing a resident to bring a firearm into his or her home, the statute is in potential violation of this principle.



Sunday, March 10, 2013

Saturday, October 20, 2012

All's Fair

NYTimes covers the Assad regime's involvement in the booby-trapping of rebel ammunition.  The very brief Op-Doc on the history of this practice is well worth viewing.

Friday, July 27, 2012

24.6%

At 24.6 percent, "Spanish unemployment hit its highest level in the second quarter since the Franco dictatorship." - Reuters

Never a good headline to wake up to...

Sunday, July 22, 2012

4 Minute Warning

1'06" mark, Josh Fox's GasLand (2010): Radiohead's "4 Minute Warning" eerily begins to play.

Of course, the chemical-infested frozen rabit corpse has been preserved in a WalMart bag. If you're looking for a powerful amalgamation of emotions, this is it.

Have yet to finish the documentary, but will certainly return to this EID article.

Thursday, July 12, 2012

Refranchising Gains and Losses

Are YUM's refranchising losses cause for concern? The company "[does] not allocate such gains and losses to [its] segments (China / YRI / U.S. / India) for performance reporting purposes." RT's FY2008 10-K provides a decent definition of the concept:

Refranchising Gains (Losses)
Refranchising gains (losses), included in other restaurant operating costs, include gains or losses on sales of restaurants to franchisees. All direct costs associated with refranchising are included in the calculation of the gain or loss. Upon making the decision to sell a restaurant to a franchisee, the restaurant is reclassified to assets held for sale at the lower of book value or fair market value less cost to sell and any anticipated loss is immediately recognized. When the sale occurs, any loss not previously recognized is recorded concurrently with the sale. Any gains to be recognized are recorded when the sale closes.

To be continuted...

Wednesday, July 11, 2012

Risk Factors...

How could anyone feel comfortable with a PEIX common equity/convertible debt investment? I've never seen a more terrifying "Business Risks" portion of an annual filing.

From "Risks Related to our Business," 2011 PEIX 10-K...
"The results of operations of the Pacific Ethanol Plants and their ability to operate at a profit is largely dependent on managing the spreads among the prices of corn, natural gas, ethanol and WDG, the prices of which are subject to significant volatility and uncertainty."

If only 2006 wasn't the peak...
"In early 2006, the spread between ethanol and corn prices was at an historically high level, driven in large part by oil companies removing a competitive product, methyl tertiary butyl ether (MTBE), from the fuel stream and replacing it with ethanol in a relatively short time period. However, since that time, this spread has fluctuated widely and narrowed significantly. Fluctuations are likely to continue to occur."

Terrifying chart for PEIX investors...
Extracted from CBOT/CRB's 7/9/12 Ethanol Outlook Report, this chart bluntly exhibits the soaring input costs (corn) alongside near-month ethanol futures. Sep corn prices +36% in just 3 weeks, touching a 10-month high of $7.14. Severe heat and drought conditions have shattered the summer's corn supply outlook: Sep ethanol-corn margin remains negative at -11.5c/gallon.