Monthly Archives: February 2014

The HBCU Money™ Weekly Market Watch


Our Money Matters /\ February 28, 2014

A weekly snapshot of African American owned public companies and HBCU Money™ tracked African stock exchanges.

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $8.00 (0.00% UNCH)

M&F Bancorp (MFBP) $3.90 (0.00% UNCH)

Radio One (ROIA) $5.02 (1.62% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  240.51 (1.00% UP)

Botswana Stock Exchange (BSE)  9 169.50 (0.07% UP)

Ghana Stock Exchange (GSE)  2 420.91 (12.85% UP)*

Nairobi Stock Exchange (NSE)  141.05 (N/A)

Johannesburg Stock Exchange (JSE) 47 328.92 (0.59% UP)

International Stock Exchanges

New York Stock Exchange (NYSE) 10 470.54 (0.70% UP)

London Stock Exchange (LSE)  3 666.66 (0.20% UP)

Tokyo Stock Exchange (TOPIX)  1 211.66 (0.47% DN)

Commodities

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Currencies Of The African Diaspora – Chad


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Chad’s primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. Economic conditions have been positive in recent years, with real GDP growth reaching 13% in 2010 because of high international prices for oil and a strong local harvest. GDP growth for 2012 was 5%. However, Chad’s investment climate remains challenging due to limited infrastructure, a lack of trained workers, extensive government bureaucracy, and corruption. At least 80% of Chad’s population relies on subsistence farming and livestock raising for its livelihood. The government of Chad is determined to improve agricultural production through modernization and mechanization over the next three years, and hosted a national Rural Development Forum in 2012 to promote investment in agriculture. Chad’s economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. Remittances are also an important source of income. The Libyan conflict disrupted inflows of remittances to Chad’s impoverished western region that relies on income from Chadians living in Libya. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves – estimated at 1.5 billion barrels – in southern Chad. Chinese companies are also expanding exploration efforts and have completed a 311-km pipeline and the country’s first refinery. The nation’s total oil reserves are estimated at 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad’s non-oil export earnings.

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Source: Economy overview provided by CIA Factbook

HBCU Institute Of Technology & HBCU School Of Mines: The 21st Century HBCU


Whatever we succeed in doing is a transformation of something we have failed to do. Thus, when we fail, it is only because we have given up. – Paul Valery

There are times I wonder what was going through Steve Jobs and Steve Wozniak head when they realized they could combine a telephone, camera, music player, and computer all in one device. They were reimagining what a telephone could be, what it could do, and how it could impact the world. The same must become true of institutions like Lewis College of Business, Morris Brown, and St. Paul’s. These institutions at their core must remain HBCUs, but their niche within the HBCU ecosystem must become something different. Their purpose must become something reimagined.

LewisCollegeofBusiness

Two types of universities exist currently that HBCUs have no presence in and that African American sorely needs an established institutional presence in. They are institutes of technology and colleges of mines. A Wikipedia page describing institutes of technology is listed as “an institution of higher education and advanced engineering and scientific research or professional vocation education, specializing in science, engineering, and technology or different sorts of technical subjects.”  The Colorado College of Mines (the school has a 1.2 percent African American student body) is described as a teaching and research institution devoted to engineering and applied science, with special expertise in the development and stewardship of the Earth’s natural resources by U.S. News. Currently, there are twenty institutes of technology throughout the United States, Massachusetts Institute of Technology and California Institute of Technology being by far the most prestigious. There are six independent college of mines and over a dozen of these type colleges located within universities.

As it stands now there are two truths. First, technologist are becoming the new barons. They are ushering in a new gilded age of wealth. Silicon Valley, a creation spun from Stanford University, is a flush with the best and brightest minds shaping the technology of tomorrow. A great many of them coming from places like the aforementioned MIT and CIT. The 2009 Kauffman report, showed that MIT-trained entrepreneurs produce over $2 trillion in revenues. Wade Roush of Xconomy also reported, “On average, MIT graduates form just under 1,000 companies every year, according to an executive summary of the report shared with the media before today’s announcement. Massachusetts is home to some 6,900 alumni-founded companies, while another 18,900 are scattered around the world, including 4,100 in California. MIT alumni-founded companies employ just under a million people in Massachusetts, 526,000 in California, 231,000 in New York, 184,000 in Texas, and 136,000 in Virginia.” If they were a nation, they would have the eleventh largest economy in the world based on GDP. In comparison, African American owned businesses sales do not generate even 0.5 percent of MIT-owned firms sales. An HBCU institution dedicated to technology could allow for innovations that help us close the technological gap in America and the business wealth gap.

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Secondly, energy demand is frothing as emerging market demand intensifies and developing countries build up their economies. Four of America’s largest ten companies by revenue are in energy and six of the world’s largest ten companies by revenue are in energy. Africa has almost ten percent of the world’s oil reserves and eight percent of the world’s gas reserves, according to a BP statistical review. The US shale boom in North Dakota will make America in the coming decade one of the largest exporters of gas and oil to the rest of the world reversing a long standing trend of being energy dependent. In the graph below, US employment growth in the oil and gas industry is growing faster than total private sector employment. In Africa, where countries are even more dependent on oil and gas revenues, opportunities are even greater. Although I have focused on the oil and gas because of their prominence, a college of mines also includes extraction of coals and other fossil fuels. There is also the extraction of things like gold, diamonds, and other gems that are extracted. Given the expansion into space mining of asteroids that seems to be on the horizon by companies like Google and others, opportunities in mining are quite frankly out of this world.

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To add a cherry on top about these two industries and the universities that produce them is the philanthropy to colleges and universities that accompanies the wealth. In the last decade, The Chronicle of Philanthropy shows that the top 10 donations from energy and technology have donated a combined $707 million and $965 million, respectively. Basically, over the past ten years these two fields alone have produced donations equivalent to all 100 plus HBCUs have accumulated over the past one hundred plus years. The largest donation ever to a college or university was from CIT alum and Intel, a semiconductor company with a market value of $121 billion and 108 000 employees, co-founder Gordon Moore donated $600 million to CIT in 2001. Thirty times the size of the largest donation ever given to an HBCU.

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Instead of losing more HBCUs, schools like Lewis College of Business (MI) , Morris Brown (GA) , and St. Paul’s (VA) could be re-fit to enter areas where African America needs a stronger strategic presence both industrially and geographically. This gives an increased opportunity for research, specialization skills training, and entrepreneurial development. Three areas that HBCUs as a whole sorely need improvement. We must be bold and imaginative to save our beloved institutions – the phone of opportunity is ringing, but what kind of device will we be picking up?

Legendary HBCU Businessman & St. Paul’s College Graduate Passes Away At 91


By William A. Foster, IV

“The Negro girl who goes to college hardly wants to return to her mother if she is a washerwoman, but this girl should come back with sufficient knowledge of physics and chemistry and business administration to use her mother’s work as a nucleus for a modern steam laundry.” – Dr. Carter G. Woodson

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The father of African American history month, Carter G. Woodson often talked of the fact that many African Americans go off and become educated only to leave behind the knowledge and experience their parents or grandparents had accumulated. Instead of merging the experiences of their forebears with their new education and building opportunities, much too often we are wondering in the “wilderness” with an education and no place to use it. This would not be the case for William H. Trower, an alum of Saint Paul’s Polytechnic Institute (later St. Paul’s College) in Lawrecenville, VA.

He would cut his teeth at St. Paul’s College studying tailoring. Mr. Trower would also spend time in the US Calvary and Infantry during World War II.  Accumulating skills at both stops that would serve him well upon taking over the family business. He served as President of Trower Cleaners, Inc, a dry-cleaning company founded by his father and mother. The company at its height expanded to four stores in the Pittsburgh area. It would eventually be sold in 1991 after serving the community for almost seven decades.

Mr. Trower’s legacy and story is beyond just business. His wife of 61 years, Clara Belle Willoughby, and their three sons survives him. A man who truly valued the love and comforts of family. He also is survived by a plethora of grandchildren, nephews, and nieces. One of his nieces, Sharon Epperson of CNBC, is a business star in her uncle’s footsteps and is one of the most prominent financial journalist in America.

There are many lessons we can learn from our HBCUpreneurs and HBCU professionals. Mr. Trower’s lesson shows us that we must not forsake the knowledge of our forbears for fancy titles or faux acceptance by others, but embrace their experiences, knowledge, and build upon it. In doing so we embrace the value of our past, create opportunity today, and leave infinite possibilities for tomorrow. William H. Trower passed away on January 31st, 2014, but he assured his lessons and legacy are living on through his family and the community he impacted.

HBCU Money™ Dozen 2/17 – 2/21


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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

Three essentials steps to a software defined data center l Network World ow.ly/tQ5Lz

Brain cell regeneration has been discovered in a new location in human brains l New Scientist ow.ly/tQ63h

Did you know shellfish #aquaculture can reduce nitrogen loading? l NOAA Sea Grant bit.ly/1oWUevE

Three years after Japanese tsunami, invasive species are still a threat l Oregon Sea Grant ow.ly/tQ6hs

US, Brazil meet at the Livermore Lab to collaborate in #science & #technology l Livermore Lab 1.usa.gov/1jMmg9d

The Other #1 Reason Why Electric Cars Will Dominate The Car Market l Clean Technica dlvr.it/4zFQfH

Federal Reserve, Central Banks, & Financial Departments

How did central banks come into being? A look at early public banks l Chicago Fed ow.ly/tQ7Ka

SouthPoint looks at winter’s short-term effects on the regional economy l Atlanta Fed goo.gl/RrdgP2

Asia investors bullish about private real estate l Housing Wire hwi.re/4zPRkt

See how your state’s economic education requirements stack up l Council 4 Econ Ed ow.ly/tQ8i9

Impact of 2005 bankruptcy reform on the number of bankruptcies during the Great Recession l St. Louis Fed bit.ly/1gGP8jl

The real estate 1% and the S&P 500 are secretly connected l Housing Wire hwi.re/4zLVx7

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.