Final push for Dec 6 CFA I
Working on Schweser practice exam now. One lesson from last June test is too little practice exam (only one). Lets see if I could complete all 3 practice exams by Dec 5: with careful reviews and reading on weak spots.

Unite miles for WSJ
I got this idea from Kilinger’s a while ago. And I have used this tip twice now. Last year I used it for my NWA miles (I had 33,000 miles from my China trip a while back); yesterday I used it on United for WSJ subscription. Redeem newspaper magazine can not only make the life of miles longer, but also supported the newspaper/magazine business. Plus, reading from the real paper (vs. computer, blackberry) can get me into better thinking. Also, keep in mind I tried to redeem the miles for air ticket as first choice, the magazine is just a way to burn some miles while extending the life of unused miles.

Work from home: Pros, Cons
I have worked for my new employer for a month (more precisely 4.5 weeks) from my home. I have anticipated working from home when the gas price was $4 a gallon, now with $1.43 gas, this has become a less factor. That being said, I want to summarize of the Pros and Cons I got so far:

Pros:
1) Got more sleep, esp. in the morning, because now I also got blackberry, I can check my email or calendar in a second.

Cons:
1) Amid recent financial crisis, I am feeling more uncertainty being so far away from the company.

(Source: http://blogs.smugmug.com/baldy/)

But after I tried the BP (British Petrolum, formerly Amoco) station lately, I changed my mind. It seems to me BP invigorate gas lasted longer than the Shell gas, at least to my 2001 Nissan Altima. I guess it could be one time thing, as BP invigorate contains some additives to clean up the engine, which the Shell could not do for some reason.

Bottom line is, I am going to try it for a while, and see if this effect lasts.

Section 144.049, RSMo, establishes a sales tax holiday during a three-day period beginning at 12:01 a.m. on the first Friday in August and ending at midnight on the Sunday following. Certain back-to-school purchases, such as clothing, school supplies, computers, and other items as defined by the statute, are exempt from sales tax for this time period only.

Cheseapeke Energy Hedging backfires
Last night CHK reported its 2Q 2008 earning, it incurred a big loss because of in 2Q the natural gas price went up much higher than the bets CHK put together. Here is another analysis by bullishbankers for CHK. Like many things else in life, you get the upside, and you can get the downside too. Hedging is a perfect example. One interesting thing I noticed from the earning report is in cash flow statement, CHK has one million dollars at the end of 1Q, and zero cash at the end of 2Q. They raised cash since then (again, read the bullishbankers analysis, and CHK own press release).

BTW, to my readers, always apply your independent thinking when reading other bloggers’ (including yours truely) work.

So why is the price relatively cheaper? I think one reason is AA needs cash (unearned revenue in this case) badly. Another less likely reason is AA thinks oil price will go down. Separately, I read from news the airline executives wrote an open letter to ask congress to clamp down on the oil speculators, because according to the airlines “oil speculators drove up the oil price”. I see two problems in this argument: 1) Airlines also hedge their jet fuel positions, i.e., they are speculators too; 2) Speculators can cause short term price volatility, but in longer term, it’s the supply and demand determine the price. It seems the airlines executives forgot the Econ 101 here

Odds and Ends
Here in St. Louis, some churchs are organizing prayers for “lower oil price”. Reminds me in ancient China the farmers praying for “good weather/havest season”. In modern days I have seen people praying for “stock prices going up”.

As much as I respect people’s sincererity on prayers, I really doubt the effectiveness. Current oil crisis, like many other economy or financial crisis, is largely man made disaster. For one, the US dependency on oil was created in last century, along with automobiles, highways and suburban living. Now this life style is exporting to China and India, which has a far bigger population. Our planet was not designed to handle that demand. Until we found real alternative(s) to the sweet crude (or black gold), we have to pay whatever the market charges.

Innovative energy tips
I also heard from news, the state of Utah is doing 4 days (10 hours) work week, saving the commuters gas and goverment building utility bills. Similarly, goverment in Houston is turning thermostat from 72 F to 78 F (for reference, yours truely has set it to 80 F for a long time). I also heard police in some places charging gas surcharge for speeding motorist.

Did I mention the ways to make car more efficient: engine tune up, check tire pressure, less A/C, proper speed, etc. Or better yet, take the bus or car pool if it’s possible.

Seriously, I think my last car tune up worked in terms of improving gas mileage.

Also, I read from yesterday STL Post Dispatch that Panera is going to raise the price again, for instance it will raise the Signiture Asiago bagel by 25 cents (now 99 cents), so I guess I will switch to Sesame to save the quarter. Another tip at Panera, if you buy coffee from Panera everyday, ask for the coffee drink card. You can get a free drink (espresso?) with 8 stamps. In other words, buy eight small coffee (at $1.59), and you can get an Iced Mocha ($3.69) for free. Of course, the better way to save, is brew your own coffee, or not drink coffee at all.

Barrons article Buy GM stock
I am not automotive expert, but I think the author is not giving the readers good advice here. Just look at this data comes with the article (source: Center for Automotive Research), Healthcare cost per vechile for Retiree: GM $950, Toyota NM; total per vehicle cost: GM $3,289, Toyota 1,895.

I know if Brother Obama gets elected, he will try to do something about healthcare. But I won’t bet on it (the universal healthcare). Notice Warren Buffett recently added United Healthcare stock? He is supporting Obama and Hillary too.

Met old friend in graduate school
Had great discussion and arguments about China economy, real estate and stock market etc. It has been 10 years since we left SUFE and China. While we saw great things and changes in China, we still saw good many problems in market efficency, and overall system. I may be a bit emotional, but I think the pop and bust of PetroChina stock (601857) in Shanghai shows the relative youth of domestic stock market.

What is Shan Zhai Ji?
I happened to read this Shanzhaiji article written by Li Jing. While I don’t like the idea of copying, it seems to me Shan Zhai Ji (山寨机) thing is no small business anymore. I remember a while ago there is this thing called HiPhone, which is a knockoff of iPhone.

(Source: NPR.org, more pictures from NPR)

(Original) There are lots of organizations one can donate for the China earthquake, such as this list (Chinese) and another list (English). I think everyone can pick an amount and a charity feel comfortable. Also the wider the participation (more people give in small amount), the better. Note some employers offer match for certain charities, and there is tax deduction for donors if the charity has registered with IRS for that purpose (there is an EIN). Personally I am debating about the following two:

1. Overseas Saving Chinese Children Fundation: as name implied, the emphasis is on the need of small kids.

2. Peking Univ Fundation: Chinese, English, they said the donation will be “for the middle and primary schools in the disaster area in China. All donations will be transferred to benefit schools within a month.”

Match and tax aside, I treat giving like investing:

1) Children and Education are two important areas and we are interested in (investing);

2) Economy: most bang for the buck (I don’t have a lot money, but I want my money have meaningful impact).

3) With the unravel of devastation, money will be poured in. How to direct the money the most in need and reduce the waste will not be a trivial problem.

Companies reactions
China and international; direct and monotary

Highlight China Mobile restore of the wireless tower, keep always lines on for pre-pay customers in Sichuan regions

Appendix
1. (Chinese) Famous blogger Ye Tan wrote article about various companies response in quake donations;

2. (Chinse) Vanke Chairman Wang Shi on why Vanke only donated two million Yuan (titled life is the most important);

I am not complaining, as I know people around the world are paying a much higher price for gas, or paying a higher percentage of their disposal income for gas. But I still want to do something to contain the gas cost, before sending my pay check directly to the Exxon-Mobile and the likes.

1) In the past, I tried to fill up gas at the proper time: there are two gas stations near my home, whenever I saw one gas station raised the price (the other has not), I will rush to the other one (usually it’s the Shell).

2) Also, I used the gas rebate credit cards, they are Citi Dividend (5% rebate in the past, this has been changed lately); Chase Freedom (3% rebate); and AAA MBNA card (5% rebate subject to the up limit of 2% of the monthly balance).

3) Last week, I tried another approach. I paid pretty dollars for car maitenance: engine tune up (replace spark plug and wires); fuel injection cleaning; replace engine gasket. Hopefully my investment will pay off over time (from saving in gas).

A few years ago my employer sponsored my GC app including attorney services. But that did not extend to the AP and EAD (optional for me). I heard from a friend that he paid $1,000 lawyer fee for the EAD renewal. So I filled the forms and filed for myself.

Last month (mid Feb) as soon as I saw the PD became current, I filed I-485, I-131 (AP) and I-765 (EAD) for my wife (H-4). And we received the all the receipts shortly.

I think for simple cases (like my wife), we can do it ourselves, as long as we know what we are doing. This maybe more effcient than using the company lawyers, because of the time wasted on “back and forth”. On the other hand, I am sure most Chinese immigration lawyers here are professional and effcient.

Your instant answer maybe the latte (espresso), but the correct answer is the brewed coffee. According to Starbucks Nutrition By the Cup (PDF), 12 fl oz coffee has 240 mg caffeine, one shot espresso (1 fl oz) has 75 mg caffeine. As to Coke, I saw it says “caffeine content: 34mg per 12 fl oz”.

I don’t know what is the appropriate amount of caffeine a person could consume daily. My guess is one small cup a day should be ok for most people. I think it also depends on person’s health condition (weight, height, habbit of drinking). But just like many other things in life, moderation is the key. A cup of regular coffee will get one refreshed in the morning (it has caffeine equivalent to 7 cups of Coke). But when the initial effect of coffee goes away in a few hours, he/she will resort to another coffee. And so on. I think we can be more easily get caffeinated that way.

(picture souce: will work for food)

On the other hand, while a coke will give a person a little stimulus, without knocking out him/her. And a person can drink 3 or 4 coke a day (assume he/she exercise to burn the calories), while still consuming half the caffeine of a small coffee (tall is Starbucks fancy word for small 12 fl oz coffee).

One tip: I understand Starbucks is not just a coffee house, it is also social place for many people. If you don’t want to have caffeine but like the taste coffee, order the decaf (that’s di yin ca fei 低因咖啡 in China). Starbucks does offer a variety of other drinks (including tea) as well.

In the next post, I will discuss the relative stock performance of Coca Cola and Starbucks.

Another nice thing about A437: it is a quad band phone, and (if unlocked) can be used in China.

Logitech QuickCam Deluxe for Notebooks
Found it through my friend googlist. Here is the link.

I always liked Logitech’s product, and the price (after rebate) is $8.99. So I bought one.

(Update Feb 29) The web cam arrived last night. Amazon Super Savers free shipping is fast. The next step is fill in the mail in rebate form