The lead story in the New York Times, The Washington Post, and the Dallas Morning News today is the Labor Department Employment report of a net loss of 125,000 jobs in the month. That was due primarily to the loss of 225,000 temporary census jobs that had swelled payrolls by 433,000 net jobs in May. Business hiring was a dismal 83,000. State and local governments cut 10,000 jobs in the month. Overall, that means a loss in jobs in the latest reports. So the national unemployment rate holds steady just south of 10%. While U6, the nations broadest measure of employment reached a staggering 16%.
I bet if you asked the average American who’s really good at creating jobs not one in ten would say the federal government. In a normal scenario, the expansion of government through job creation creates a few unintended consequences, namely, more bureaucracy, less efficiency, higher taxes. While these are tough economic times, this latest attempt at federal job creation is embarrassing. The so-called shovel-ready projects were supposed to remind us of FDR’s Works Projects Administration, and the cornerstone of his three R’s: relief, recovery, and reform. Well they just don’t make politicians like they used to. Both parties version of the three R’s is better described as reckless, rattled, and ridiculous.
You know who’s good at creating jobs? Small companies on the cutting edge of technology, product creation, and process improvement. If the federal government had the foggiest notion on what they were doing, they would remove all barriers for small businesses. From relaxed regulations on research and development to reduction or even suspension of taxation, anything that gives small companies a competitive advantage is good for our long term economic growth. Don’t forget Dell Computers was started in a college students’ apartment in Austin, Texas and Apple was started by a couple of hippies’ in their parents’ garage in California. And today’s newsmaker below Tootie Pie which develops, produces, and markets high end dessert products to retailers and restaurants. They’ve creates 25 jobs and will add more this fall.
Give me one example of that kind of job creation by the federal government in the last 40 years. Time’s up. No, really. Time’s up.
Today’s Markets
Stocks are lower once again, capping a bad week, as disappointing jobs data fueled worries about a second half slowdown in the economy.
Ahead of the July 4th holiday weekend, investors added to the weeks’ losses. Stocks have been hit hard this week, ending the second quarter and starting the third on concerns about the sustainability of the global recovery.
Slipping for its seventh consecutive session, all major indexes are lower. The Dow Jones Industrial average is down -70.57 to 9661.96. The Nasdaq is down -14.22 to 2087.14.
The government’s monthly jobs data sent mixed messages on the labor market. The jobless rate edged down to 9.5% in June from 9.7% the previous month, better than the increase to 9.8% economists were expected. However, the decline in the unemployment rate appeared to be skewed because in June, the civilian labor force participation rate fell 0.3 percentage point to 64.7%.
Meanwhile, nonfarm payrolls fell by 125,000 last month, with only 83,000 private-sector jobs added. Economists were expecting payrolls to drop by a more modest 110,000 in June. Nevertheless, the drop in nonfarm payrolls was smaller than many investors had feared.
Today’s Top Performers on the OTCBB
| Company | Symbol | Last | Chg | %Chg | Open | High | Low | Vol | |
| U.S. Aerospace Inc. | USAE | 0.21 |  |
0.09 | 75.00% | 0.0999 | 0.229 | 0.0999 | 549.37 k |
| C T I Group Inc | CTIG | 0.08 | |
0.035 | 77.78% | 0.08 | 0.08 | 0.08 | 400 |
| Phoenix Energy Res | PNXED | 0.035 | |
0.015 | 75.00% | 0.035 | 0.035 | 0.035 | 4.17 k |
| BioSolutions Corp. | BISU | 0.11 | |
0.04 | 57.14% | 0.07 | 0.11 | 0.07 | 4.65 k |
| First Physicians C | FPCG | 0.35 | |
0.12 | 52.17% | 0.35 | 0.35 | 0.35 | 5 k |
| Wellstar Internati | WLSI | 0.0003 | |
0.0001 | 50.00% | 0.0002 | 0.0003 | 0.0002 | 751.35 k |
| NWT Uranium Corp. | NWURF | 0.1767 | |
0.0567 | 47.25% | 0.1741 | 0.1791 | 0.1741 | 9 k |
| TX Holdings Inc. | TXHG | 0.05 | |
0.015 | 42.86% | 0.05 | 0.05 | 0.05 | 360 |
| Bella Viaggio Inc. | BVIG | 0.70 | |
0.19 | 37.25% | 0.45 | 0.75 | 0.45 | 26 k |
| Optimized Transpor | OPTZ | 0.05 | |
0.013 | 35.14% | 0.0401 | 0.05 | 0.0401 | 156.09 k |
Friday’s Newsmakers:
Tootie Pie Company Reports Over a $1 Million Gross Profit
Jul. 2, 2010 (Business Wire) — Tootie Pie Company, Inc. TOOT announced a gross profit of $1,078,349 and annual revenues of $1,686,109, for fiscal year ending March, 2010, reflecting increases in both areas from the 2009 fiscal year.
“We’re pleased to report an improvement in cash flow of $667,369, resulting primarily from an 82% reduction in cash used for operating activities,” said Don L. Merrill, Jr. President & CEO. Merrill attributed the reduced cash flow loss of only $148,037 to “cost saving measures adopted by our management team to address the U.S. Economic downturn.”
“The Company has demonstrated the ability to significantly reduce operating expenses while still maintaining our sales levels, thereby bringing Tootie Pie Company very close to cash flow break even,” added Merrill.
In addition, the Company was able to acquire and roll out its first two Tootie Pie Gourmet Cafés during this same period. “I think its clear we accomplished a great deal during one of the most difficult financial environments in U.S. history,” said Merrill.
Net loss, which includes noncash items, depreciation and amortization, dropped $209,589 (30%) to $478,226 for the twelve months ending March 31, 2010, versus $687,815 for the twelve months ending March 31, 2009. Annual revenues also increased to $1,686,109 for 2010, versus $1,670,324 for the fiscal year ending in 2009. Gross margin improved slightly to 64% for the year ending March 31, 2010 compared to 63% for the year ending March 31, 2009.
“Sales have been up for eight consecutive months,” Merrill said. “With our sales trending up and our operations at near break even, 2010 is poised to be a great year for Tootie Pie Company,” added Merrill. “We have the Company positioned to take it to the next level in terms of sales growth and bottom line results.”
About Tootie Pie Co.
Tootie Pie Company bakes and sells high-quality, handmade pies through three basic sales channels: retail, corporate and wholesale. The retail segment serves individual customers through sales in its Tootie Pie Gourmet Cafés, in-store sales, orders via telephone and internet on the Company’s website. The corporate segment serves businesses that purchase pies as a way to promote their company through client and employee appreciation programs. The wholesale segment is made up of national and regional broad line grocery and foodservice distributors who purchase pies and then resell them through their respective sales distribution channels. Tootie Pie Company is a public company traded on the NASDAQ OTC market under the symbol “TOOT.” For additional information or to receive correspondence from Tootie Pie Company, please visit www.tootiepieco.com.
Forward-Looking Statements
This press release may contain forward-looking statements. The words “believe,” “expect,” “should,” “intend,” “estimate,” and “projects,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s filings, which are on file with the U.S. Securities and Exchange Commission (SEC).
Source: Business Wire (July 2, 2010 – 9:45 AM EDT)
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