Saturday, August 7, 2021

Summer Sailing


For Frank


Summer Sailing


The wind in my sail
Lifts me up
Gets me wet and
Powers me around the lake

I may get stuck in the irons
But there is a way out
Hard left 90°
Now moving again

Faster than ever 
the Black water sings
Hold on tight
There's a wind to ride

The Dolphin is
Battered and bruised
The keel leaks but
A little chemistry on the holes
And she's as good as new

Now sailing
Around this lake
Such pure freedom
On the wind

Yet the wind tricks you along 
The shores
The wind curls inward 
Under the trees

I'm steering to open water
A gust of wind
Is behind my sail
Pure flight in reverie 

Summer sailing
With my dolphin
Is fabulous peace
and harmony

Windy days
Are a delight
With my sail boat
The Dolphin 


--Michael Hooper
Aug. 7, 2021

Friday, June 18, 2021

Purple Clouds in The Night Sky


By Michael Hooper

Lying in bed, listening to a droning fan on this hot summer night

I get up and walk outside and look at the blackness of the night. 

The purple clouds of darkness travel across the sky. 

I light a candle and question why things went awry

I pray for my friend who is suffering so

The pain and anguish are frustrating

But there is some hope

And I know the power of hope in recovery

There's something rumbling in the brush. 

The eyes of a possum glimmer like two small headlights

I love the blackness of the night and the red rings around the moon.

The owl hoots his cry yet no bird may hear 

I struggle to understand all this pain

Sadness covers me like a blanket, I can't let it go

I return to my bed to read

The words are shallow

I would rather watch the colors in my head,

which follow me into my dreams,

the red moon and the purple clouds of the night










Wednesday, June 9, 2021

Excess Capital Creates Opportunities

Eadweard York and I ride in Ferrari along Highway 101 in Laguna Beach, California.

By Michael Hooper

We live in a country where there is excess Capital looking for opportunities. Excess capital is going into the digital currency markets, special purpose acquisition companies, along with real estate and the general stock market, everything's inflated, and inflation is happening.

I see this as a genius opportunity to get in front of a sea of cash and collect high margins of profit, especially in the areas of safe travel services, real estate, construction, finance, banking, and transportation services such as railroads. There are opportunities to create a transportation company delivering fast food, groceries and pharmaceuticals.


I also see opportunities for off-the-grid services like tiny houses and van living. Owners of these companies are probably doing well. Stocks in transportation companies have soared.


There's excess capital in the market and not enough workers to serve it, creating job opportunities. Today's working people can expect to be paid more for their efforts.


The independent person who loves solitude is thriving right now because covid-19 protocol fits his lifestyle of working remotely from home. Fortunes are being made as young upstarts are watching their Acorns accounts rise. No wonder their heads are deep inside their phones as they buy more stock in their favorite car company. They're watching their numbers go up as the stock market hits all time highs. And good for those Reddit traders who shoved it in the face of the short sellers on Wall Street as they drove up the price of GameStop from $10 to over $300.


Man if you can't make money in this market, something's wrong. Heck the government is giving it away. I got several stimulus checks. We put the money into the house.


This real estate bull market has room to go. Everywhere around the country there is not enough supply. Inventory of houses in Shawnee County, Kansas, is around 165 residential homes on the MLS. Topeka and Shawnee County used to have 900 to 1,000 homes for sale on the MLS. But after the financial crisis of 2008-2009, Spec building died. No one wanted to build a new house on speculation. Either they had a buyer up front or they didn't build and that's why the inventory is so low.


I've watched several houses sell recently in my neighborhood. They sold in two days. And people are offering $10,000 over asking price. One seller had the pick of four offers after a weekend of shows at the house.


Total home sales in the northeast Kansas Sunflower multiple listing service rose by 12.2% last month to 377 units, compared to 336 units in May 2020. Total sales volume was $70.0 million, up 27.2% from a year earlier, according to Sunflower's web site.


The median sale price in May was $161,000, up from $142,750 a year earlier. Homes that sold in May were typically on the market for 3 days and sold for 100.0% of their list prices. Sunflower MLS includes Brown County, Greenwood County, Jackson County, Jefferson County, Lyon County, Nemaha County, Osage County, Shawnee County.


The downside to all this demand in the housing market is people being priced out of certain communities, where housing is entirely too expensive compared with the local wages.


Shawnee County, Kansas, lost 1% of its population in the most recent census. Many people moved away. Several employers, like Payless ShoeSource and the Menninger Clinic, left Topeka. But we have some strong employers here remaining and some new ones in the last 20 years including Advisors Excel and Se2. The pet food industry remains strong in Topeka area. The new Walmart distribution center in south Topeka is gigantic, I've never seen a building so big.  Walmart has five store locations in Topeka. With the new distribution center, Walmart is among the largest employers in Shawnee County.


I recently had some concrete work done on my house by a local contractor. I had called the contractor last September but had to wait six months before they arrived. They did a great job rebuilding my driveway and step to my house. If you call that same contractor today, they will not be able to serve you until 2022 because they have such a long waiting list of business demand.


Another area that we're seeing inflation is the agricultural markets. Kansas farmers are the beneficiary of higher commodity prices especially corn and bean prices, with corn  $6.50 per bushel and beans at $15 per bushel. Farmers are growing crops that may bring the highest returns they've seen in a long time. And crops are looking good. There's been plenty of rain and sunshine this spring.


Land prices hit all-time highs in 2012 and 2013 and then sort of fell back maybe 10% and climbed back up again and really haven't declined much at all.


Farm machinery is very expensive, now over $500,000 for a new combine. I remember when combines broke the $200,000 mark in the 1990s, I thought that was crazy then.


Yet there is inflated levels of capital floating in the markets. The Federal Reserve pumped trillions of dollars into the market. Banks are flush with cash. So are many Americans who have pent up demand to spend money on travel to special destinations. People will pay big money to sit in a hot tub in Paradise right now. They probably will tip you pretty well because customers are just hungry for adventure and personal service.


The lucky ones are working in good jobs and stashing cash for investments and making their dreams come true.


America is the land of opportunity. Now is the time to make the money when there is excess capital in the markets.


Friday, June 4, 2021

KC Firm Hiring 150 People, Firm's Average Pay is $125,000

 


By Michael Hooper

C2FO, a Kansas City fintech firm, recently announced plans to hire 150 employees.

C2FO has more than 600 employees globally with 220 based in Leawood, the company said Wednesday in a press release.


The company is adding 150 new jobs across the organization in the next three to four months. These roles include 100 sales people and about 50 additional positions in operations, data engineering and sales support. Currently the company has 56 sales reps and account executives in the United States. By tripling the salesforce, C2FO continues to demonstrate substantial growth within the supply chain finance industry as the company works to position clients for long-term success.


C2FO says it is the world's largest platform for working capital. The company serves over 1 million businesses representing $10.5 trillion in annual sales across more than 180 countries. The company's online platform connects more than $110 billion of daily accounts payable and accounts receivable. Whether you need working capital or have excess working capital the C2FO platform will match your request in seconds.


The company's mission is to deliver a future where every company in the world has capital needed to grow.


The average pay at C2FO is $125,000 annually, according to a Kansas City Business Journal article by Brian Kaberline.


The company is looking for people with some level of financial expertise. These are people who will earn six figures within 24 months if they are successful, CFO Kerri Thurston told the Kansas City Business Journal.


C2FO offers a secure platform on which companies can negotiate with buyers to receive payment early and return for discounts. This can help smaller and diverse companies do business with big buyers like Albertsons and Walmart by providing a way to reduce cash crunches caused by the large outlays required to fill big orders followed by periods of 30 to 90 days after delivery when buyers usually pay for the goods. 


Accelerated payment of receivables allows a company to convert receivables to cash immediately. 


“Ten years ago we began building a marketplace that would eliminate credit risk, by matching accounts payable with the corresponding accounts receivable so that that account payable could be paid early and the account receivable turned into cash. Eight years ago, that market opened for business," C2FO Founder and CEO Alexander "Sandy" Kemper said in a video on its website.


Accelerated payment of receivables is essential for companies in need of greater liquidity. Instead of waiting 30 to 90 days for payment, the company sells its accounts receivable for cash now.


Alexander "Sandy" Kemper, chairman and CEO of C2FO, is a longtime entrepreneur in the Kansas City area. A member of the Kemper banking family, Sandy Kemper used to be CEO of UMB Financial. He also was founder and CEO of eScout and is currently chairman of the board of the Collectors Fund, a private equity fund focused on alternative asset classes including art.


For more information about C2FO, go to its Web site.



Monday, May 24, 2021

What $20,000 Buys In Topeka, Kansas


By Michael Hooper

It's always difficult to find a bargain in real estate. When I heard about a house for sale in Topeka for $20,000, I had to have a look.

Located at 1810 Lincoln Street, this two-story house with three bedrooms and one bathroom is for sale by owner, Jaymes Scott.

The house is in poor shape, starting with the broken front stoop. Every room is dirty, all the floors are covered with papers, books and trash. The owner says the roof has 10 years left in it, and the basement has a little water around the edges during rainy seasons like now.

The owner wants to move quickly so he's willing to deal. He knows repairs are needed and he is willing to do them.

I looked inside and saw the need to clean up and paint. Every wall needs paint. The kitchen needs paint, countertop, new appliances. Really the best rooms are upstairs where there are three bedrooms and a bathroom. The bathroom is in sorry shape but at least there is one.

I could easily see $10,000 worth of work just to get this place in livable shape. But if this place were fixed up it's probably worth closer to $50,000.

After a tour of the home today, I asked the owner if I could put this information on my Web site. He said, "sure."

To contact the owner, call 785-338-6252.










Monday, April 19, 2021

Retired Judge Favors Medical Marijuana in Kansas

By Michael Hooper

Kansas is moving slowly toward the creation of a medical marijuana program after examining programs in Missouri, Oklahoma and Colorado.

Rep. John Barker, a retired judge from Abilene, has been working on a bill that would create the Kansas Medical Marijuana Regulation Act and the Kansas Medical Marijuana Regulation Program.


                                         Rep. John Barker

For the very first time, a medical marijuana bill made it out of committee in the Legislature on March 29. The Kansas House Federal and State Affairs Committee approved the bill 13-8 sending it to the house for debate. That bill has been folded into House Sub for SB158 and was referred back to committee.

"This is the second year we have introduced this bill," said Barker, chairman of the Committee on Federal and State Affairs. "We had a hearing and we worked on the bill and then moved it to the floor of the House. The speaker sent it back to committee."

The committee's bill, modeled after the Ohio medical marijuana program, authorizes doctors to prescribe cannabis to patients suffering from one of 20 conditions, including AIDs, cancer, irritable bowel syndrome, chronic pain, multiple sclerosis and PTSD.

Barker described his committee members as very conservative people; debate on the bill in March was contentious. Law enforcement has come out against it, but some doctors support it. Advocates said it would provide much needed relief to Kansans suffering from various ailments, such as epilepsy or chronic pain.

Barker said he plans to work on the bill with committee members, and discuss possible amendments or changes.

"We will get through it," Barker said in an interview with the author on April 15, 2021.

The Legislature returns from spring break on May 3.

Barker anticipates the Committee on Federal and State Affairs would approve the medical marijuana bill and send it back to the House floor. He believes there is 70 votes in the House to approve it. If that happens, he said, the bill would either be dead at the Senate or go to a conference committee.

If the bill is approved by the Senate, Barker said Gov. Laura Kelly will sign it.

Thirty-six states have approved some form of medical cannabis legalization, but it is still illegal at the federal level, Barker said. He expects Congress to move cannabis from a Schedule 1 to Schedule III or IV for medicinal usage.

Barker said his committee looked at cannabis programs in Colorado, Oklahoma and Missouri. Missouri is full of lawsuits now because of the cap on the number of medical marijuana licenses. Barker favors no cap on licenses in Kansas.

Let the free market determine the number of medical marijuana distributors in Kansas, he said.

"I'm a conservative. I believe in the free market system," Barker said. "Some businesses will fail, some will succeed."

Barker said in Maryland, a medical cannabis license is more than $1 million and cannabis is very expensive. He said competition will make the cannabis market more competitive, so the average guy can get a month's prescription at a reasonable price. He described Oklahoma's medical marijuana program as the wild west.

"We want a more structured program in Kansas," Barker said.

House Sub for SB158 creates a medical board under the Kansas Health and Environment. Doctors would go through training to issue prescriptions of medical marijuana. Pharmacists would have a role in it, Barker said.

The state Alcohol Beverage Control (ABC) would be in charge of enforcing regulations in the cannabis bill.

Gov. Kelly had proposed a medical marijuana program that would generate tax revenue to support Medicaid expansion. But Kelly Rippel, an independent cannabis consultant in Topeka, said that idea did not go over well in the Legislature.

House Sub for SB158 does not address decriminalization of cannabis laws in Kansas, but Barker believes this should be addressed too. Law enforcement should not have to worry about someone with a couple of marijuana cigarettes, he said.

Legalization has been slow to come to Kansas. 

"We're in a time of transition, said Rippel, an appointed member of the Industrial Hemp Advisory Board under the Kansas Department of Agriculture.

House Sub for SB158 would specify that only the following forms of medical marijuana may be dispensed,"oils; tinctures; plant material; edibles; and patches."

The bill would "prohibit the smoking, combustion, or vaporization of medical marijuana; any forms or methods of using medical marijuana that are considered attractive to children; and the dispensing of medical marijuana from a vending machine or through electronic commerce."

While the bill may appear to prohibit "smoking medical marijuana," Rippel noted that the bill does allow "plant material" to be sold.

Rippel also said the Commercial Industrial Hemp Act of Kansas needs modified to match the USDA Final Hemp Rule. It may be a slow process, but he maintains there is hope on the horizon. A recent amendment to HB2244, which passed both chambers in the statehouse, is on its way to Governor Kelly's desk. This new law would allow the sale of items with hemp seed and CBD products that contain the federally legal amount of 3% THC.

Medical cannabis typically has 10% to 35% THC. The Barker bill has a cap of 35% THC levels in Kansas.

Michael Hooper is a longtime journalist in Kansas and Nebraska. His blog is thoughtfulinvestors.blogspot.com

Monday, April 5, 2021

San Diego Firm Building New Pet Food Plant Near Topeka, Will Create 40 Jobs


By Michael Hooper

The Honest Kitchen, of San Diego, Calif., is building a new production plant that will employ 40 people near Topeka.

The Honest Kitchen will be manufacturing its Whole Food Clusters kibble alternative, human-grade pet foods with a new state-of-the-art manufacturing facility near Topeka, the company said in a press release issued on March 23. The facility is set to open in the third quarter of 2021, the company said.

“This new facility, once combined with our manufacturing operation on the West Coast, will represent a huge step forward in increasing our overall manufacturing capacity for Whole Food Clusters,” Nate Kredich, chief operating officer of The Honest Kitchen, said in the press release. “We are proud not only of the new jobs that this facility will create in Shawnee County, but also that nearly all of our equipment will be sourced from US suppliers.”

The 100,000-square-foot facility is expected to add 40 new jobs in the Topeka area.

The Topeka area was strategically chosen for its proximity to quality raw ingredient suppliers and because it fosters improved distribution capabilities, reducing transit time to key Midwest and East Coast markets, the company said.

“In a short amount of time, Whole Food Clusters has exceeded all sales and velocity expectations,” added Michael Greenwell, chief executive officer of The Honest Kitchen. “We’re excited to continue the human-grade pet food momentum and meet the growing demand for this revolutionary product. This expansion will allow us to not only scale as needed but accelerate additional innovations within the line.”

The Whole Food Clusters line first launched in 2019 and has recently expanded to include a full assortment of grain-free, whole-grain, puppy and small-breed recipes. The human-grade dog food is produced through The Honest Kitchen’s proprietary MadeHonest™ method, in which each cluster is slow-roasted and gently dehydrated. This process is intended to preserve nutrients and product attributes that are typically lost through high-heat extrusion.

Barbara Stapleton, VP of Business Retention and Expansion at Greater Topeka Partnership, said "we are still operating under the project code name...Project Central."

The company said it plans to spend $9.5 million in facility improvements and equipment and create 50 jobs over the next five years, Stapleton said. 

On Dec. 9, 2020, the Joint Economic Development Organization approved $284,000 in incentives for Project Central.

Stapleton declined to disclose the address of the new pet food plant.

"This is great for Topeka and the Animal Health Corridor," Stapleton said, referring to the KC Animal Health Corridor from Manhattan, Kan., to Columbia, Mo. The Honest Kitchen brings good jobs to Topeka. This will grow opportunities for people who live here or choose to move here, she said.

The Honest Kitchen was founded by Lucy Postins in 2002 in San Diego, with a mission to help as many pets as possible get on the road to good health through good food. They produce a full line of human-grade, complete and balanced foods for pets including dry, dehydrated and wet foods as well as treats, toppers, hydration boosters and a best-selling digestive supplement. The Honest Kitchen says it was the first-ever human-grade pet food, meaning the finished product meets human-food production standards (unlike conventional pet food, which is feed grade). Each Honest Kitchen product is made with uncompromising quality and safety standards by a company of pet lovers. For more information, please visit www.thehonestkitchen.com.

Multiple pet food companies are located in the Topeka area, including Hill's Pet Nutrition. JM Smucker owns Big Heart Pet Brands in Topeka and Lawrence, purchased in 2015. Mars Petcare operates in Kansas City. Crosswind Industries, purchased by ADM for $85 million four years ago, is located in Sabetha, Kan. Simmons Pet Food is located in Emporia. Alphia, formerly called CJ Foods, is based in Bern, Kan.

These pet food companies are part of the KC Animal Health Corridor which includes more than 300 companies and organizations involved in animal health and nutrition. The corridor, founded in 2006, is anchored by veterinary medicine colleges at Kansas State University and the University of Missouri.

A substantial amount of the pet food consumed in the United States comes from this region in the Middle of the United States.

Honest Kitchen founder Lucy Postins started her company with $7,000, and a beach cottage kitchen. She created "the world’s first human grade pet food company," the company says here. "Seventeen years later, our products are distributed in over 5,000 pet supply stores internationally, with a staff of over 50 employees (and probably close to 50 co-woofers).

"I decided to start my own pet food company whilst standing in my kitchen, after marveling at the amazing impact that a healthy, whole-food diet could have on my own dog’s health," she said. "I’d been trying to address my Rhodesian Ridgeback’s chronic ear infections with vet prescribed treatments but nothing was really bringing about a long term cure. So I turned to food as a potential ‘medicine’ and began feeding him my own home prepared diet. Originally, The Honest Kitchen was just going to be a local direct-to-consumer business but it turned out the products really spoke for themselves and sales started to grow by word of mouth when people began to see the results in their pets’ health, so it gradually morphed into a larger, nationally distributed brand."

In 2015, The Honest Kitchen's revenue was $30 million. That number has grown between 35% to 45% annually, she said in this 2019 article in the San Diego Business Journal.

It's likely the company's revenue is now around $100 million, said David Tangeman, accountant.

The Honest Kitchen received minority venture capital investment from two funds in 2011. One is the Alliance Consumer Growth Fund and the other is White Road Investments, started by Gary Erickson who was the founder of Cliff Bar & Co.