Category Archives: Uncategorized

Five Questions To Ask Before Investing With A Stockbroker

Whether you’re a first-time investor or have been investing for many years, there are some basic questions you should always ask before you commit your hard-earned money to an investment.

Question 1: Is the seller licensed?

Con-artists are experts at the art of persuasion, often using a variety of influence tactics tailored to the vulnerabilities of their victims. Smart investors check the background of anyone promoting an investment opportunity, even before learning about opportunity itself. While it’s usually safe to trust larger firms with more established reputations – relying on their internal oversight to keep you safe – even the biggest and best of brokerages have loosed wolves among their flocks, albeit unknowingly.

Researching brokers: Details on a broker’s background and qualifications are available for free on FINRA’s BrokerCheck website.

Researching investment advisers: The Investment Adviser Public Disclosure website provides information about investment adviser firms registered with the SEC and most state-registered investment adviser firms.

Researching SEC actions: The SEC Action Lookup – Individuals allows you to look up information about certain individuals who have been named as defendants in SEC federal court actions or respondents in SEC administrative proceedings.

If you are not sure who to contact or have any questions regarding checking the background of an investment professional, call the SEC’s toll-free investor assistance line at (800) 732-0330.

Question 2: Is the investment registered?

Any offer or sale of securities must either be registered with the SEC or exempt from registration. Registration is best because it provides investors with access to key information about the company’s management, products, services, and finances. Smart investors always check whether an investment is registered with the SEC by using the SEC’s EDGAR database or contacting the SEC’s toll-free investor assistance line at (800) 732-0330.

Question 3: How do the risks compare with the potential rewards?

The potential for greater returns comes with greater risk. Understanding this crucial trade-off between risk and reward can help you separate legitimate opportunities from unlawful schemes. Investments with greater risk may offer higher potential returns, but they may expose you to greater investment losses. Keep in mind every investment carries some degree of risk and no legitimate investment offers the best of both worlds. Many investment frauds are pitched as high return opportunities with little or no risk. It’s usually best to ignore these so-called opportunities. If you truly believe you smell a fraud, report them to the SEC, your local state securities licensing agency or state’s attorney general’s office.

Question 4: Do you understand the investment?

Many successful investors follow this rule of thumb: Never invest in something you don’t understand. Be sure to always read an investment’s prospectus or disclosure statement carefully. If you can’t understand the investment and how it will help you make money, ask a trusted financial professional for help. If you are still confused, you should think twice about investing.

This particular question, “Do you understand the investment?” has broader application. Savvy investors apply it across the investment spectrum, not just in their stock market considerations. Real estate, cryptocurrency, NFTs, the bond and commodities futures markets are all unique in their own ways, all offering potential rewards, all presenting their own potential pitfalls. If you don’t understand them, don’t invest in them until you do. Keep safe!

Question 5: Where can you turn for help?

Whether checking out an investment professional, researching an investment, or learning about new products or scams, unbiased information can be a great advantage when it comes to investing wisely. Make a habit of using the information and tools on available on reputable public sites, and take advantage of the securities regulators’ websites. If you have a question or concern about an investment, get a second opinion from a different broker or investment advisor. Remember, too, that you can contact the SEC, FINRA, or your state securities regulator for help in a crunch.

A final piece of advice: Don’t be afraid to ask questions, of the person offering the investment and others.

Any broker or advisor who fears questions, or deflects without actually answering them, either doesn’t understand the investment or doesn’t want you to understand it. The most successful Ponzi scheme of all time (excepting Social Security), was run by Bernie Madoff. A large part of his success was found in his practice of scaring investors away from asking questions by implying that if they didn’t trust him they could take their money elsewhere.

Don’t be afraid to ask your questions, and don’t be afraid to leave if you don’t get, don’t understand – or don’t like – the answers.

February 8, 2022 – Mike Spillan, Editor

IRS Abandons Facial Recognition Plans

February 7, 2022 – Mike Spillan, Editor

WASHINGTON — The IRS announced it will transition away from using a third-party service for facial recognition to help authenticate people creating new online accounts. The transition will occur over the coming weeks in order to prevent larger disruptions to taxpayers during filing season.

During the transition, the IRS says it will quickly develop and bring online an additional authentication process that does not involve facial recognition. Instead, The agency will also continue to work with its cross-government partners to develop authentication methods that protect taxpayer data and ensure broad access to online tools.

“The IRS takes taxpayer privacy and security seriously, and we understand the concerns that have been raised,” said IRS Commissioner Chuck Rettig. “Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition.”

Unfortunately, privacy experts have expressed additional concerns about the IRS’ “work with it’s cross-government partners” as well.

Still, the transition announced today should not interfere with the taxpayer’s ability to file their return or pay taxes owed. During this period, the IRS will continue to accept tax filings, and it has no other impact on the current tax season. People should continue to file their taxes as they normally would.

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FTC Sues to Block Lockheed Martin Corporation’s $4.4 Billion Vertical Acquisition of Aerojet Rocketdyne Holdings Inc.

Agency Seeks to Prevent World’s Largest Defense Contractor from Eliminating Last Independent U.S. Missile Propulsion Provider

February 1, 2022 – Mike Spillan, Editor

Today, the Federal Trade Commission sued to block Lockheed Martin Corporation’s $4.4 billion proposed vertical acquisition of Aerojet Rocketdyne Holdings Inc, the last independent U.S. supplier of missile propulsion systems. Aerojet supplies advanced power, propulsion, and armament systems, which are critical components for the missiles made by Lockheed and other defense prime contractors.

The agency’s complaint alleges that if the deal is allowed to proceed, Lockheed will use its control of Aerojet to harm rival defense contractors and further consolidate multiple markets critical to national security and defense. This is the agency’s first litigated defense merger challenge in decades.“The FTC is suing to block Lockheed Martin, the world’s largest defense contractor, from eliminating Aerojet, our nation’s last independent supplier of key missile inputs,” said FTC Bureau of Competition Director Holly Vedova. “Lockheed is one of a few missile middlemen the U.S. military relies on to supply vital weapons that keep our country safe. If consummated, this deal would give Lockheed the ability to cut off other defense contractors from the critical components they need to build competing missiles. Without competitive pressure, Lockheed can jack up the price the U.S. government has to pay, while delivering lower quality and less innovation. We cannot afford to allow further concentration in markets critical to our national security and defense.”

The U.S. Department of Defense (“DoD”) reviewed the acquisition and considered the potential impacts of the transaction on national security, the nation’s industrial and technological base, competition, and innovation.

As part this assessment, the DoD facilitated a series of FTC-led interviews with DoD-impacted stakeholders. DoD’s assessment was provided to the FTC for its deliberations and final decision-making.“I deeply appreciate the collaborative relationship between DoD and FTC staff who worked closely throughout this investigation,” said Director Vedova. “The FTC determined that the proposed transaction harms competition for several weapons systems that DoD relies on to defend the nation and there is no sufficient remedy to alleviate those harms.”

Lockheed is the world’s largest defense contractor and a leading missile supplier in a highly concentrated sector. Lockheed, and its U.S missile competitors—Raytheon Technologies, Inc., Northrop Grumman Corporation, and The Boeing Company—act as missile system prime contractors to DoD. These prime contractors are key intermediaries between the U.S. government and the rest of the missile systems supply chain, including the subcontractors such as Aerojet which provide system components to them.

DoD relies on prime contractors to develop, produce, sustain, and source a variety of weapons, including missile systems, hypersonic cruise missiles, and missile defense kill vehicles. Each of these weapons depend on critical propulsion technologies of the type supplied by Aerojet.Aerojet, as a subcontractor, is the last independent U.S. supplier of critical inputs for missile systems, hypersonic cruise missiles, and missile defense kill vehicles. Aerojet and only one other competitor – Northrop Grumman – compete to provide propulsion inputs for missile systems and hypersonic cruise missiles to defense prime contractors.

Aerojet and Northrop Grumman both provide solid rocket motors for missile systems and supersonic combustion ramjets, or “scramjets,” which are air-breathing engines that propel hypersonic cruise missiles. Further, Aerojet is the only proven U.S. supplier of divert-and-attitude control systems that propel missile defense kill vehicles. Lockheed’s proposed acquisition of Aerojet would give Lockheed control over critical propulsion inputs that its rivals require to compete against Lockheed. Specifically, the complaint alleges that the proposed acquisition would give Lockheed the ability and incentive to deny, limit, or otherwise disadvantage competitors’ access to critical propulsion inputs for various weapons systems. The combined firm could disadvantage rivals by affecting the price or quality of the product, the quality of the engineering support, and the schedule and contract terms for developing and supplying it or otherwise disadvantage its rivals.

As a subcontractor, Aerojet also has had access to prime contractors’ sensitive information about technological advancements, cost, schedule, and business strategies. The FTC complaint alleges that post-acquisition, Lockheed would have an incentive to exploit its access to its rivals’ proprietary information to gain an advantage in competitions against them and that the U.S. government, in turn, would be harmed because the cost of missile systems, missile defense kill vehicles, and hypersonic cruise missiles would likely increase, innovation would be lessened, and quality would be reduced, hindering national security and defense interests.

According to the complaint, the proposed transaction could impact research and development as well as innovation into the future, which is vital to ensure that the U.S. remains a leader in these technologies. As an independent supplier, Aerojet has the incentive to allocate its research and development funds based on the potential return the funds would generate regardless of which prime contractor it is supporting.

The complaint further claims that, post-acquisition, the combined firm would be incentivized to allocate Aerojet investment dollars for the combined firm’s benefit alone, which could stifle innovation.

The Commission vote to issue the administrative complaint (a public version of which will be available and linked to this article as soon as possible) and to authorize staff to seek a preliminary injunction was 4-0.The FTC will file a complaint in the U.S. District Court for the District of Columbia seeking a Preliminary Injunction to stop the deal pending an administrative trial. The administrative trial is scheduled to begin on June 16, 2022.

Electronic Skin Bridges The Gap Between You and Iron Man

Human skin contains sensitive nerve cells that detect pressure, temperature and other sensations that allow tactile interactions with the environment. To help robots and prosthetic devices attain these abilities, scientists are trying to develop electronic skins.

Now researchers report a new method in ACS Applied Materials and Interfaces that creates an ultrathin, stretchable electronic skin, which could be used for a variety of human-machine interactions. See a video of the e-skin here.

Electronic skin could be used for many applications, including prosthetic devices, wearable health monitors, robotics and virtual reality. A major challenge is transferring ultrathin electrical circuits onto complex 3D surfaces and then having the electronics be bendable and stretchable enough to allow movement.

Some scientists have developed flexible “electronic tattoos” for this purpose, but their production is typically slow, expensive and requires clean-room fabrication methods such as photolithography. Mahmoud Tavakoli, Carmel Majidi and colleagues wanted to develop a fast, simple and inexpensive method for producing thin-film circuits with integrated microelectronics.

In the new approach, the researchers patterned a circuit template onto a sheet of transfer tattoo paper with an ordinary desktop laser printer. They then coated the template with silver paste, which adhered only to the printed toner ink. On top of the silver paste, the team deposited a gallium-indium liquid metal alloy

U. S. Nuclear Weapons Facility Locked Down Briefly

Employees at the United States’ primary nuclear weapons facility were briefly told to “shelter in place” Tuesday, when a suspicious vehicle in a parking lot triggered an emergency response.

The incident at the Pantex Plant in Amarillo, Texas occurred just before noon (1800 GMT), when a routine inspection identified “a potential concern with a vehicle,” the National Nuclear Security Administration (NNSA) said in a statement.

“As a precaution, all employees were sheltered in place.”

Police were called and authorities closed roads around the facility for about an hour while officials investigated.

“After searching the vehicle, it was determined there were no prohibited items or explosives, and the emergency event was resolved without incident,” the NNSA said.

The plant is operated by government contractors and is the nation’s primary one of six facilities for the assembly and dismantlement of nuclear weapons.

A recording on the plant’s phone system said it was operating normally after what was initially described as a “security event.”