Justice Was Served and Madoff Faces 150 Years. Apple Welcomes Back Steve Jobs. Grocery Shopping Trends Are Changing. Is it Time to Start Shopping for Grocery Stocks?

MARKET SYNOPSIS

Apple is reunited with Steve Jobs after missing him for six month. Even though Apple did okay without Jobs, it is still good news for Apple’s future and brings a smile on the face of those close to the company. As for Bernard Madoff, he is off to prison for 150 years. The judge gave him the maximum amount of time that an organized criminal can be sentenced with. Also, as grocery shopping habits change it is a good time to shop for affordable stocks that will bring long term profits. Price wars over gas will continue, and people are hoping for the strengthening of the dollar to get better deals.

Organized criminal Bernard Madoff was sentenced to prison

Bernard Madoff was sentenced to a maximum of 150 years in prison. The charges that were held against him are, Securities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC, theft from an employee benefit plan, and pleaded guilty to all charges. The exact amount stolen has not yet been determined, but it is estimated at $65 billion. Bernard Madoff lawyer, Ira Lee Sorkin, asked the judge for 12 years in prison stating that at his advanced age he is most likely to spend the rest of his life in prison or most of it. At age 71, Madoff is expected to live 13 more years according to the U.S. Social Security Administration. However the judge sentenced him to the maximum amount of time that can be given to an organized criminal.

The way Bernard Madoff made it happen is by operating a multibillion dollar Ponzi scheme since 1991. Eligible victims may get payments of up to $500,000 from the Securities Investor Protection Corp. (SPIC); anything else that is owed can be partially recovered when Madoff’s assets are liquidated.  Mrs. Ruth Madoff has agreed to relinquish any assets shared with her husband, and so far tens of millions of dollars in cash and securities, property, jewelry, even two fur coats and silverware. The SIPC has already mailed out $142 million in checks to eligible claimants. The deadline to file a claim is July 2, more than 10,000 claims has already been filed.

What is a Ponzi scheme? The Ponzi scheme was first used in the United States by a man named Charles Ponzi operation that pays returns to investors from their own money or money paid by subsequent investors rather than from any actual profit earned. This scheme is destined to fail, because usually the authorities will issue an investigation when earnings are less than the payments.

Steve Jobs is back to work

In January Steve Jobs took a medical leave, and has returned after 6 month back to work. During his medical leave he had a liver transplant, and took 2 month to recover. Good News for Apple and Apple investors is that Steve Jobs, the great innovative mind and icon of Apple is back to work in Cupertino, CA. Even though Jobs was not around for six month changes and new products were released in his absence. The products that Apple released in the absence of Steve Jobs include, the new version of iPhone, and debuted the new iPod shuffle that works with voice commands; also they updated their line of iMac and Macbook Pro. In Steve Jobs absence investors stayed with the company and were fortunate to witness Apple’s stock rise more than 60%. Steve Jobs return gives added comfort of Apple’s bright future.

Grocery shopping for stocks

Consumers are shifting their grocery shopping habits. Now people are price sensitive and health conscious, leaving Wal-Mart and Whole Foods in the forefront of the competition. Most consumers are more price sensitive than anything. As a result companies such as Costco is benefiting from having private brands, because they are able offer products at a cheaper price. In this recession grocery companies are trying different promotions in order to get more foot traffic, because less foot traffic equals less profit. This trend will not change until the economy recovers. Companies that are worth looking at for stocks include Safeway (SWY) and Kroger (KR), because even though they are suffering a loss right now, they show promising signs of long term profit. They are both taking the right steps to cost cutting, and offering better prices. If you’re looking a long term investment that will bring in a profit, shop for these stocks.

Price war for gas

The attack on an oil platform in Nigeria has cause supply worries once again. Oil futures ended up above $71 a barrel. Oil prices have rally 37%, and earlier the contract for a barrel ended at $72.40. Royal Duthc Shell PLC announced that it is going to shut down some production in Nigeria. It all depends on the dollar now, if the dollar fails to hold a support in Nigeria, it is expected that the rally for crude oil will continue. The strength of the dollar is vital for commodities, in this case the dollar weakness typically boosts dollar denominated commodities.  The dollar strength is the only factor that can enable lower price negotiation.  As for natural gas, it fell 17 cents to end up at $3.94 per million British thermal units. Stocks that are noteworthy include United States Oil Fund (USO) and Enterprise Products Partners L.P (EPD). It is reported that Enterprise Products will buy their competitors Teppco for $3.3 billion dollars.