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Kit Menkin’s Leasing News www.leasingnews.org Monday, January 21, 2002 Headlines----Two
Leasing Conferences on February 10-12th---East Coast and West Coast
Textron
Financial Names Jay Carter President and COO Thursday, Live at 1pm, California Time National Association of Equipment
Lease Brokers is the only organization that lost members in the year
2001. All the rest had a membership increase. Find out Why? Find out if this is the organization for you? Learn what NAELB has to offer? Next Thursday---LIVE
at 1pm, California Time Michael Meacher, President, National Association of Equipment Leasing
Brokers "Meet the Leasing News Maker" Thursday, Next Week, 1pm, California time ( don't be late, tune in ten minutes earlier to ----------------------------------------------------------------------------- Monday---Odds and Ends Terminal Marketing Request I would like to hear from all
Brokers, End Users, Vendors and former employees that feel they have
been damaged by Terminal Marketing or their assignees. This case seems to be getting bigger and bigger
by the day. Please contact me via email
or phone. Thank you, Kevin Pane C2 Capital Corp. 888-348-6200, ext. 233 kpane@c2capital.com ----- Missing Certified Leasing Professionals------------------- If you can publish this list,
we are still trying to track down the following CLP's: Ronnie Bissland,
Ann Clark, Cathy Clark, Kevin Conroy, Tim Hill, Joyce King, Ralph
Lewerenz, Tom Long, Duncan McIntyre, Jeff Minott, Jennifer Mintz, Pat
O'Rourke, Pat Ontal, Kris Rector, Patty Russell, Ron Schultz, Chris
Siri, Bill Wehner, Bob Clabots, Ron Hill, Jennifer Kardos and Dale Volkamer.
If anyone has an address or phone number please advise Cindy
at the CLP Foundation at CWSpurdle@msn.com or at 610-687-0213 or fax 610-687-4111.
Thanks - Steve Steven B. Geller, CLP Leasing Solutions LLC 20 Dike Drive Wesley Hills, New York 10952 845-362-6106 fax 845-354-2803 cell 914-552-0842 www.leasingsolutionsllc.com ----- Leasing Association Membership many thanks for your newsletter.
You really provide a GREAT !! service. Observation .... membership
data in UAEL, NAELB, EAEL is not conclusive at this time since membership at 12/31/01 may
NOT be members in 2002. Many
firms renew in the 1st quarter, not by 12/31. A good follow up would be to compare membership
at say 3/1/02 with that at 3/1/01 P.S. I have a rather extensive lease magazine/newsletter
library. How far do you want to go back? Cheers, D. Paul Nibarger, CLP Nibarger Associates 7310 Via Marie Celeste Rancho Palos Verdes, CA 90275 310.541.8609 310.377.1574 (FAX) ( Thank you. I have the first minutes from the Western Association of Equipment Leasing meeting,
courtesy of Russ Rickards, formerly of Cenval/Bank of the West.
I go back as far as 1981 with UAEL and have some odds and ends
from others. Anything will help me build up a library. If there are issues we have
duplicates and you would like us to return them, we will. We will pay for UPS
charges, too. ( Membership, your observations
should be noted and definitely taken into consideration. The
actual figures may be the June numbers. In good years, it is not uncommon
to have a 80% retention rate. With
all the companies that have gone
out of business, it might be 70% to 75%. But on the other hand, there are
many more independents now, new lessors, new companies being formed,
so an association with an aggressive membership committee can make up for the
losses. The real question
is what is the "mix" compared to
the previous year. The larger
funders paid higher dues than the younger or smaller
companies. I personally see associations
and networking more important than every before, especially for emerging
and growing companies. I think
all the associations should have
followed MAEL, who raised their dues. I personally see the association
dues as "bargains" and thus the reason why so many belong to more
than one association. More
about this later this week. editor ____ Press Release Comments I loved your comment on the
press releases. Who writes
these things? If the energy it took to write
and distribute press releases went into finding actual deals I believe
a lot more business would get done in this industry. Since press releases seem to
generate so much hype I have decided to put one together that summarizes
our activities over the past 10 years.
It will explain that we have had
virtual application delivery for 11 years now, we deployed a web interface
to the Fair Isaac credit scoring system back in 1996, we have a proprietary
software package that is used by more than 100 vendors and we
now have our software installed in 26 community banks, we have been
using "Risk Based Pricing" for nearly 3 years now, and Oh, yeah, I
forgot... We had a paperless office a couple of years ago but I decided
that there were some things that were actually better accomplished
using paper so I went out and equipped all of my people with Cross Pens
and an 8.5" x 14" yellow, ruled tablet. Since making that decision
our productivity has skyrocketed. Bob Rodi,ClP President LeaseNOW, Inc. drlease@leasenow.com www.leasenow.com 1-800-321-LEAS (5327)x 101 ----- Two Leasing Conferences on
February 10-12th---East Coast and West Coast Annual Equipment Management
Conference and Exhibition, sponsored by the Equipment Leasing Association February 10 - 12,
at the Marriott Desert Springs Resort in Palm Desert, CA. Over 40 service-providers--appraisers,
remarketers, software houses, and more--have already signed up to show their stuff. To get details, your readers can go to elaonline.com/ Ralph Petta RPETTA@ELAMAIL.COM http://www.leasingnews.org/meetings.htm ---- Join Eastern Association of
Equipment Lessor and National Association of Equipment Leasing Brokers
Febraury 11th, Atlanta, Ga. There is a "get together"
the night before. To learn
more about this go to: http://www.leasingnews.org/PDFFiles/atlanta%20gathering.pdf ___________________________________________________________ #### ############################# ############### Textron Financial Names Jay Carter President and COO Textron Financial, a subsidiary
of Textron, has named Buell J. Carter Jr. president, in addition to his current responsibilities
as COO. Carter joined Textron Financial in 1990 and has held several senior management positions
at the company including vice president and division manager of the former asset based lending
division and senior vice president of operations. In 1999, Carter was promoted to executive vice
president and COO, giving him operational oversight for all of Textron
Financial's lending divisions. "Building on his 27 years
of experience in commercial lending, nearly half of which have been with Textron Financial, Carter has
tirelessly managed the operations of our company during the most challenging period in our history,"
remarked Stephen A. Giliotti, Textron Financial chairman and CEO. "I am confident that
he will continue to be a significant contributor to Textron Financial's future success," Giliotti
continued. Prior to joining Textron Financial,
Carter held management positions at ITT Capital Finance, Chase Manhattan Bank and Westinghouse
Credit. He earned a Bachelor of Science degree with honors in physics from the University
of Louisville, Louisville, KY. Additional information about
Textron Financial is available at www.tfc.textron.com. Additional information about Textron Inc. is available on www.textron.com.
#### ################################################## How to Protect Yourself
by Alfredo R. Vionnet THIS IS TERRIFIC INFO TO HAVE!
SUGGEST YOU READ IT. Place the contents of your
wallet on a photocopy machine and copy both sides of each license, credit card,
etc. You will know what you had in your wallet and all of the account numbers
and phone numbers to call and cancel in case it gets lost or worse yet,
stolen. Keep the photocopy in a safe place. A corporate attorney sent this
out to the employees in his company: We've all heard horror stories
about fraud that's committed us in your name, address, SS#, credit, etc. Unfortunately (the author of
this piece who happens to be an attorney) has firsthand knowledge, because
his wallet was stolen last month and within a week the thieve(s) ordered
an expensive monthly cell phone package, applied for a VISA credit card, had
a credit line approved to buy a Gateway computer, received a PIN number
from DMV to change his driving record information online, and more. But here's some critical information
to limit the damage in case this happens to you or someone you
know. As everyone always advises, cancel your credit cards immediately, but
the key is having the toll free numbers and your card numbers handy so
you know where to call. Keep those where you can find them easily. File a police
report immediately in the jurisdiction where it was stolen, this proves
to credit providers you were diligent, and is a first step toward an investigation
(if there ever is one). But here's what is perhaps
most important: (I never ever thought to do this) Call the three national credit
reporting organizations immediately to place a fraud alert on your name
and SS#. I had never heard of doing that until advised by this attorney and
a bank that called to tell him an application for credit was made over the
Internet in his name. The alert means any company that checks your credit
knows your information was stolen and they have to contact you by phone
to authorize new credit. By the time he was advised to do this almost 2
weeks after the theft, all the damage had been done. There are records of all the
credit checks initiated by the thieves' purchases, none of which he
knew about before placing the alert. Since then, no additional damage has been
done, and the thieves threw his wallet away this weekend (someone turned
it in). It seems to have stopped them in their tracks. Besides the numbers for the
creditors, which you should know, the numbers are: Equifax: 1-800-525-6285 Experian (formerly TRW): 1-888-397-3742 Trans Union: 1-800-680-7289 Social Security Administration
(fraud line): 1-800-269-0271 I hope you find this useful. Alfredo R. Vionnet Vionnet & Associates, Inc. Fresno, CA Phone: (559) 229-4782 http://www.vionnetlsg.com --------------------------------------------------------------------------- Economists worry debt may choke
off economic growth BY JOHN GALLAGHER Knight Ridder Debt is everywhere in the United
States, from the home-equity loans consumers use to pay for vacations, to outstanding credit-card
balances that average thousands of dollars per consumer. Some
say so much debt has accumulated
that it is clogging the nation's financial arteries. Whether the U.S. debt level warrants a
strict fiscal diet is a matter of debate. Some economists warn that rising
debt levels will choke off economic growth. Among their concerns: Bankruptcies are climbing toward
an all-time high for 2001, and credit-card balances per household average more than $8,000. Delinquencies
and write-offs of bank loans are higher than they have been
in years, and consumer credit
has swelled to $1.6 trillion. Many economists say we've reached the danger point. Among the indicators: The percentage of disposable personal income that goes to cover interest
on debt topped 14 percent in 2001, its highest level
in more than 10 years. The rate of delinquent payments on credit card debt hit 5 percent
in the third quarter. That was its highest level in more than
15 years and twice the rate of the mid-1980s. Bankruptcies filings are climbing again after declining for a few
years. The total number of new bankruptcy filings in the third
quarter was 359,518, a rise of 14 percent over the same period in 2000. The delinquency rate for mortgage loans on residential properties
is rising, hitting 4.87 percent
in the third quarter, up from
4.63 in the second quarter. The problem with all this debt
is that it burdens the nation just as we need to be building and spending our way out of the
recession. With a rising chunk of income going just to pay the interest on debt, we have less cash
available to put to better use. Put another way, the nation
needs to work off the excess debt before it can return to the table for another helping. Debt perhaps will hold down
the nation's economic growth rate to 3 or 4 percent annual growth in 2003 instead of a more robust
4 or 5 percent rate. ---------------------------------------------------------------------------- In Tough Year, Dell Shines By Thor Olavsrud
Internet.com PC manufacturing was a tough
market in 2001 for most U.S. firms, but some have weathered the storm better than others and none
have done quite so well as Dell Computer Corp. (NASDAQ:DELL) The Austin, Texas-based company
Friday trumpeted that its fiscal fourth-quarter operating results
were stronger than anticipated,
and that overall revenue and earnings for the period will exceed guidance. The company said
it now expects quarterly sales of about $8 billion, up from a projected $7.6 billion.
It also said it anticipates earnings of 17 cents per share, as opposed to previous guidance
of 16 cents per share. Dell said its consumer business,
which led the charge in the fourth quarter, is expected to produce a sequential increase in product
shipments of about 50 percent while increasing revenue growth from
the third quarter by about
40 percent. A little history In the third quarter of 2000,
IDC said Dell led the pack in units shipped in the U.S., with 19.7 percent market share. It held
second place -- behind Compaq (NYSE:CPQ) - in worldwide PC shipments with 11.6 percent market share.
In the fourth quarter of 2000, as the market began to tighten, Dell powered through and grabbed
22.2 percent market share in U.S. shipments. As for worldwide shipments, Compaq declined
in that quarter, falling from 14 percent share to 12.9 percent share, but still held onto the number
one slot. Dell managed to increase its worldwide market share to 11.7 percent in the fourth
quarter of 2000. A year has passed since then,
and Dell has continued to accelerate. At the end of fourth quarter 2001, IDC said Dell's U.S.
market share had increased to 27.5
percent, while Compaq, Dell's closest rival in the U.S. market, declined from fourth quarter
2000 market share of 15.1 percent to 12.7
percent market share. In the worldwide market, Dell overtook Compaq. IDC said Dell captured 14.2
percent of the worldwide market in the fourth quarter of 2001, while Compaq, now second place, slipped
to 11.2 percent. In fact, IDC said Dell was
the only one of the top five vendors to grow shipments in the U.S. and worldwide year on year. The competition Compaq's worldwide shipments
rose 16.3 percent sequentially, while fourth quarter year-on-year shipments fell by 19.1 percent.
In the U.S. its sequential growth only reached 2.5 percent while its year-on-year shipments
fell by 24.7 percent. However, IDC said it did manage to reduce inventory internally and in
channel, and made strides in shifting to a direct distribution model. ( Leasing News reported this
last week: Compaq reports $92 million
profit, exceeding expectations By Mark Babineck, Associated
Press HOUSTON (AP) Compaq Computer Corp. easily topped Wall Street's
fourth-quarter 2001 earnings
expectations, announcing Wednesday
that it earned $92 million for the period. The Houston-based computer
maker, which informed investors last week it likely would make money, turned a profit of 5 cents
per share, beating the 1-cent consensus of analysts surveyed by Thomson
Financial/First Call. The earnings figure includes
a charge of $36 million, or 1 cent per share, related to Compaq's pending merger with Palo Alto,
Calif.-based Hewlett-Packard Co. Compaq's earnings were down
82 percent from the $515 million, or30 cents a share, it made in the final quarter of 2000, not
including a $1.8 million write down because of devaluation of its large stake in CMGI Inc. Chairman and chief executive
Michael Capellas also predicted Compaq would bring in about $7.6 billion in revenue and earn
a penny a share in the current quarter. Analysts anticipated a break-even period. ) Hewlett-Packard Co. (NYSE:HWP),
meanwhile, showed sequential growth of 35.5 percent, helping it to recover from a difficult third
quarter and remain number three in market share both in the U.S. and
worldwide. Still, shipments
were down 7.8 percent year on year. Gateway Inc. (NYSE:GTW) shipments
continued to decline in the fourth quarter and the company pulled out of many international markets,
IDC said. Competition from Dell and HP took its toll on shipments in the United States
as well. The company, while still
fourth in market share in the U.S., slipped from 8.8 percent
share in Q4 2000, to 6.3 percent share in Q4 2001. Finally, IBM Corp.'s (NYSE:IBM)
shipments fell 22.1 percent year-on-year, though IDC said it achieved 5 percent growth sequentially.
IBM has de-emphasized its client hardware business in favor
of a more solutions oriented
stance. During the year, it folded its PC marketing and sales operations into the larger
company and has since withdrawn from desktop manufacturing. The company
now plans on selling PCs primarily
as part of an overall solution, IDC said. IBM was fifth in market share in the U.S. in
the fourth quarter, with 5.2 percent share. It took the number four slot in worldwide shipments,
with 6.2 percent share. A snapshot of the market Meanwhile, the worldwide PC
market shows some positive signs but remains under pressure, IDC said Friday. "Hard times persist in
the PC market, but vendors are working diligently to stimulate growth and the outlook has started to
improve in the United States and Europe," said Loren Loverde, director of IDC's Worldwide Quarterly
PC Tracker. "We don't expect a rapid turnaround, but the seeds of
recovery are being sown. Depending
on the economic environment, growth in the PC market may pick up more rapidly toward the end
of the year." The firm noted that while the
PC market remained depressed in the fourth quarter, holiday buying produced better-than-expected
results and shipments grew sequentially over the third quarter, even while they declined year on
year. IDC said worldwide shipments declined by 6.7 percent year on year in the fourth quarter but grew
sequentially by 16.9 percent to 34.2 million. IDC said the more important
indicator of the market's performance is the sequential growth, which it said lags only slightly
behind the average fourth-quarter sequential growth rate of 19.8 percent
(from 1995 through 2000). The strongest market over the
year was Asia Pacific -- excluding Japan -- which IDC said was the only region to sustain shipment
growth from a year ago. The firm said PC sales continued to rise in
the largest markets, but potential
was limited in smaller countries due to political and economic uncertainty. The Japanese market
remains weak, and IDC projected double-digit declines inthe
next few quarters there. As was the case last year,
the European market remained soft -- especially in the corporate segment. IDC said small business
and consumer segments were the most active in Europe and continue to shift toward portable systems. Finally, shipments in the U.S.
fell 10.1 percent year on year, but beat expectations. IDC said sequential growth was 6.1 percent,
which it attributed in large part to increased home buying. "U.S. consumers finally
pulled out some of the stops in the fourth quarter," said Roger Kay, director of Client Computing
at IDC. "After four quarters of subdued buying, consumers in the United States ended the year
with a burst of activity, particularly in retail.", www.leasingnews.org |