Finance & Business World

Even the hottest initial public stock offerings can lose steam after their first day of trading.

Sure, company insiders will make money selling at the opening price. And investors who used connections or big bucks to score shares at the IPO price will profit if they sell after a first-day “pop.”

For everyone else, the wildly mixed record of other ballyhooed IPOs beyond their first trading session offers a lesson. It’s one that should remind us that buying Facebook stock Friday provides a chance to lose money.

It’s understandable that everyone wants to get in early on what could be the next Google. Shares of the Internet search leader had an initial offering price of $85 in 2004, started on the stock market at $100 and climbed above $700 by 2007. Even after moving sideways for more than four years, they’re still above $600.

But odds are against hitting a grand slam like that in the current market.

Cautionary points to weigh if the Facebook frenzy is tempting you to buy stock on Day 1:

YOU’LL PAY MORE FOR YOUR STOCK THAN THE SMART MONEY DID.

The vast majority of average investors couldn’t get in at the $38-per-share offer price. Those shares went largely to company insiders, the deal’s underwriters or their fat-walleted clients. The price almost always shoots quickly higher by the time orders to buy at the market price kick in no fax cash loans.

SEVERAL OF LAST YEAR’S “MUST-HAVE” IPOS AREN’T ANY MORE.

— Pandora, an Internet radio company, went public June 15 at $20 a share. You could have bought the stock during the day for $26. It’s now trading under $11.

— Groupon, the online daily deal company, priced its stock at $20 a share in its Nov. 4 IPO. The stock traded above $31 the first day. Now it’s under $13.

— Zynga, the developer of “FarmVille” and other Facebook games, went public at $10 a share on Dec.16. The stock traded as high as $11.50 on its opening day. Lately it’s around $8.

— Even one of last year’s IPO stars isn’t a huge winner when you factor in the risk. LinkedIn more than doubled from its $45 offer price within minutes of hitting the market last May 19 and reached $122.70 before closing the first day at $94.25. It’s back to around $105 after a turbulent year, with a modest overall gain of 11 percent since the first day.

Buy-and-hold investors who want to make money off Facebook should hold off on the first day of trading. Maybe later they can think about buying.

Dave Carpenter is a AP’s personal finance writer

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KANSAS CITY, Kan. • Missouri and Kansas are divided here only by the yellow stripe of State Line Road. It’s a single community, but the division is sharp when it comes to the cutthroat business of economic development.

The two states have burned through hundreds of millions of dollars to lure businesses to one side of that stripe or the other in the pursuit of jobs. Yet sometimes, those jobs merely have shifted to different buildings across the border with little real growth for the region’s economy.

Amid rising competition nationwide for “job creation,” Missouri and Kansas have committed more than $750 million in tax incentives and bonds in the last five years for nearly 200 businesses to locate or expand in the Kansas City area, according to state records obtained by The Associated Press. The crosstown battle also has drawn in millions more dollars in incentives from cities and suburbs.

The two states sacrificed revenue and incurred debt even during tough budget times that forced cuts to public school districts, universities and social services. Kansas and Missouri each had projected budget shortfalls of around $500 million last year. Calls for a truce in the business border war have been growing from local business leaders, some lawmakers and from former officials who once doled out the incentives.

“You get to a point where you have to say we are wasting taxpayer money,” said Greg Steinhoff, Missouri’s economic development chief from 2005 to 2008.

Yet a truce appears unlikely anytime soon — in part because the states are still scrambling for every job.

“Politically, it sounds good — can’t we all get along? — but competition’s competition,” said Gary Sherrer, who was Kansas lieutenant governor and commerce secretary about a decade ago.

About three-fourths of the $750 million of tax breaks and bonding approved in the last five years has come from Kansas, though Missouri has given incentives — in smaller amounts — to about twice as many businesses to keep them from leaving or to attract new firms.

In part because of the glimmer of its big-ticket projects, Kansas appears to be winning the business border battle.

The spoils of success are highly visible in the sprawling Village West district at the junction of Interstates 70 and 435. Anchoring the development is the Kansas Speedway, the NASCAR track that the state landed more than a decade ago with a $150 million package of bonds, tax breaks and infrastructure aid after Missouri’s $42 million incentive package failed in the Legislature credit report. The Kansas incentives included bonds with a 30-year repayment life.

Nearby is a new, 18,500-seat stadium for the Major League Soccer team Sporting Kansas City, built with $145 million in bonds after Kansas lured the franchise away from the Missouri side. Also in the neighborhood is a new office complex for Cerner Corp., a medical computer systems firm that employs about 5,500 people on the Missouri side and planned to expand. Missouri and Kansas offered nearly equal incentives of about $85 million for Cerner’s expansion, which is projected to employ an additional 4,000.

Kansas’ willingness to issue bonds backed by tax revenue, which Missouri couldn’t match, helped cinch the deal, said Marc Naughton, Cerner’s executive vice president and chief financial officer.

Kansas Gov. Sam Brownback, a Republican, was unapologetic about giving away public revenue. “You’ve got to go out to compete and hustle,” Brownback said.

Missouri Gov. Jay Nixon, a Democrat, appears only slightly more open to a truce. “I’m going to compete for jobs for our state, I’m not backing up on that,” Nixon said.

In Kansas City, the most recent crosstown defection came in April, when Teva Neuroscience Inc. announced that it would move its headquarters — and 400 jobs — from Kansas City to a site about four miles away in suburban Overland Park, Kan. Records provided to the AP show that Missouri offered $11 million in incentives to try to keep Teva. Kansas did not disclose how much it offered, but the Kansas City Star reported the package totaled nearly $31 million.

Some firms have bounced back and forth across the state line. Restaurant chain Applebee’s International moved its headquarters from Kansas City to a Kansas suburb in 1993. Last year, it was lured back to Missouri ith nearly $10 million in state incentives plus additional local aid.

A few months later, movie theater operator AMC Entertainment Inc. announced it was moving to the suburb of Leawood, Kan. Missouri offered $4.2 million in incentives to keep the company, according to state records. Kansas declined to disclose its incentives, but media reports have valued the total aid at $47 million.

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South Korea added workers last month and the unemployment rate held at two-month low as demand increased for jobs in health, social welfare and education.

The rate was 3.4 percent in April, Statistics Korea said today in Gwacheon, south of Seoul, matching the median estimate in a Bloomberg News survey of 12 economists. The number of employed people increased 1.9 percent to 24.76 million last month from a year earlier.

South Korea

Embattled Yahoo CEO Scott Thompson told company employees late Monday that he is sorry for the distraction his resume padding scandal has caused — without commenting on what role his own actions might have played in creating the drama.

"I want you to know how deeply I regret how this issue has affected the company and all of you," Thompson said in a memo obtained by CNN. "We have all been working very hard to move the company forward, and this has had the opposite effect. For that, I take full responsibility, and I want to apologize to you."

The scandal erupted late last week, when activist shareholder group Third Point first alleged that Thompson lied about his college degree. Thompson’s published bios have claimed that he holds a Bachelor’s degree in both accounting and computer science from Stonehill College, but his degree is actually only in accounting.

Yahoo (, Fortune 500) said that it had incorrectly stated Thompson’s academic credentials, claiming the mistake was an "inadvertent error."

On Tuesday, the Yahoo announced that Patti Hart, the director who led the search committee that picked Thompson, will soon leave the board.

First reported by tech blog AllThingsD, the news was later confirmed by Yahoo, which said Hart is stepping down at the behest of her own company, International Game Technology (). Hart, who joined Yahoo’s board in 2010, serves as CEO of IGT.

"The IGT board requested that she not seek reelection as a Yahoo director," Yahoo said in a written statement.

Yahoo’s board said also Tuesday that it has hired an outside counsel to conduct a review of the false statement. It appointed the company’s three independent directors to oversee the investigation.

All three directors were named to Yahoo’s board under Thompson’s watch, after a board shakeup that wiped out most of Yahoo’s previous directors.

Thompson said he would cooperate fully with the board’s review, and the CEO urged a "prompt" conclusion to the probe.

Thompson’s memo to Yahoo’s staff included no explanation for how the mistake happened. His apology was solely for the impact the scandal has had on the company, not for the act itself.

That didn’t impress the troops.

A senior Yahoo executive, who spoke to CNN on the condition that his name not be used, said: "Thompson has quickly lost the confidence of many employees, who think he has to go."

False statements about Thompson’s degree predate his tenure at Yahoo, which began in January. References to a "computer science" degree also appeared in his online biographical information on PayPal’s website when he was president of the eBay (, Fortune 500) subsidiary.

Thompson’s degree information is actually correct in eBay’s regulatory filings to the Securities and Exchange Commission and in the bio featured in filings for F5 (), where he serves as a director quick payday loans. In both cases, the companies state: "Mr. Thompson holds a B.S. in Accounting from Stonehill College," with no reference to a computer science degree.

Related story: Résumé padding: inconsequential or inexcusable?

But the false statement about his degree appeared in Yahoo’s latest annual report filed to the SEC: "Mr. Thompson holds a Bachelor’s degree in accounting and computer science from Stonehill College."

Critics like Third Point seized on that line and are demanding answers about how it made its way into Yahoo’s regulatory filings. CEOs are required to personally certify that their company’s statements are accurate.

The annual report Yahoo filed last month includes this line, directly above Scott Thompson’s signature: "This report does not contain any untrue statement of a material fact."

A spokeswoman from Third Point declined to comment on Thompson’s apology.

The investment group said earlier on Monday that it wasn’t satisfied with Yahoo’s review process. It sent Yahoo’s board a letter demanding that it be allowed to inspect books and records relating to Thompson’s hiring, and it urged the company to make details of the review public.

Yahoo’s board "will make an appropriate disclosure to shareholders" upon conclusion of its review, Yahoo said in a statement e-mailed statement to CNNMoney.

Yahoo typically uses the headhunting firm Heidrick & Struggles for its executive searches. But AllThingsD says the firm wasn’t involved in the search for Thompson — he reportedly reached out directly to company directors to pitch himself for the CEO job.

CNNMoney has reached out to Heidrick & Struggles to find out if the firm was involved in vetting Thompson’s background. The firm declined to comment, but a source close to the company said Heidrick & Struggles was not involved in Thompson’s appointment in any way.

Meanwhile, Thompson said he would continue pushing forward on the company’s latest attempt to rebuild.

"I feel I owe it to all of you to make sure that nothing disrupts the progress we’ve made in just a few short months due to all of your focus, commitment, and hard work," he said. "We have a lot of work to do. We need to continue to act as one team to fulfill the potential of this great company and keep moving forward. You have my word that all my energy and attention will be on that mission."

– CNN’s Dan Simon and Katy Byron contributed reporting to this article. 

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The Canadian company trying to build the disputed Keystone XL pipeline in the U.S. submitted a new application for the project Friday after changing the route to avoid environmentally sensitive land in Nebraska.

TransCanada said it applied again to the State Department for permission to build the pipeline to carry oil from so-called tar sands in western Canada to a company hub in Steele City, Neb. From there, the project would link up with other pipelines operated by the company to carry oil to refineries on the Texas Gulf Coast.

President Barack Obama blocked the pipeline earlier this year, citing uncertainty over the Nebraska route - a decision that drew fire from Republicans and industry groups.

TransCanada had proposed a new route last month that would veer east around the groundwater-rich Sandhills region before looping back to the original route.

State Department approval is needed because the $7 billion pipeline would cross a U.S. border. The department confirmed Friday the application for the new route had been received.

The pipeline filing came on the same day as a disappointing report on U.S. job growth. The Labor Department said employers pulled back on hiring in April for the second straight month, evidence of an economy still growing only sluggishly, though the overall jobless rate slipped to 8.1 percent as more people gave up looking for work.

Obama is under pressure to support the pipeline from Republicans and business and labor leaders who argue it would create jobs; the State Department estimates it could result in up to 6,000 new jobs.

“The multi-billion dollar Keystone XL pipeline project will reduce the United States’ dependence on foreign oil and support job growth by putting thousands of Americans to work,” said Russ Girling, TransCanada’s president and chief executive officer. “Keystone XL will transport U.S. crude oil from the very large Bakken supply basin in Montana and North Dakota, along with Canadian oil, to U.S. refineries.”

The pipeline’s opponents, including Democrats and environmental groups, say it would transport “dirty oil” from tar sands in Alberta, Canada, that would require huge amounts of energy to extract. They also worry about a possible spill. The pipeline would travel through Montana, South Dakota, Kansas and Oklahoma, in addition to Nebraska.

In blocking the pipeline in January, Obama said there was not enough time for a fair review before a looming deadline forced on him by congressional Republicans. The action did not kill the project but put off a tough choice on the once-obscure pipeline, which has become a flashpoint in the bitter partisan political fight over jobs and the environment and a focus of the presidential campaign between Obama his likely Republican opponent, Mitt Romney. Romney has called on Obama to approve the pipeline.

Nebraska Gov. Dave Heineman signed a bill last month that allows the state to proceed with its review of the proposed pipeline through his state, regardless of what happens at the federal level.

A senior State Department official said U.S. officials would conduct a thorough review of the new application, with a final decision not expected until early next year _ well after the presidential election.

Officials will use previous studies to the extent possible, the official said, but will need to complete a new environmental assessment, especially since the route has changed since TransCanada first applied for the pipeline in 2008.

The State Department review is likely to include hiring an outside consultant, a point of contention in the original review conducted by the agency. Democratic lawmakers complained that the firm that conducted the review, Cardno Entrix, had a conflict of interest because of previous work with TransCanada.

The department’s acting inspector general found no conflict of interest or improper political influence but said the State Department could have done a better job of evaluating some concerns about the project and should improve its oversight of contractors.

Jane Kleeb, executive director of Bold Nebraska, a group that opposes the pipeline, said the new route still goes through an aquifer that serves eight states and should not be approved.

“The fundamental facts remain: Americans are being asked to put clean water at risk for an extreme form of energy that will add nothing to our energy security,” Kleeb said.

But Girling, the TransCanada CEO, said the company’s proposal builds on more than three years of environmental review already conducted for Keystone XL, “the most comprehensive process ever for a cross-border pipeline.”

The earlier work should allow the new proposal to be processed “expeditiously,” Girling said, with a federal decision made after a final route through Nebraska is approved by state officials.

TransCanada expects to begin construction of the pipeline next year.

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Air Canada and its largest union, which represents 8,600 baggage handlers, ground crews and machinists, have agreed to return to the negotiating table.

The move comes amid rumblings of another possible illegal disruption on Friday afternoon by members of the International Association of Machinists and Aerospace Workers.

But with the promise to restart talks, organizers have called off the 1 p.m. sitdown.

In an email to employees, Air Canada

ST. CHARLES COUNTY • Longtime banker and civic leader Darrell B. Roegner, who died last November, will be honored posthumously at the annual awards banquet of Partners for Progress of Greater St. Charles.

Roegner was chosen by the civic group for this year’s Lifetime of Progress award in recognition of his business, civic and charitable activities over the years.

At different times he chaired the boards of Partners for Progress, the Salvation Army of St. Charles County and the St. Charles Community College Foundation. 

He also helped organize countywide campaigns to pass and continue a sales tax that helps pay for road construction. He also was on the boards of Barnes-Jewish Hospital St. Peters, the Tri-County YMCA and Habitat for Humanity.

The banquet will be at 6:30 p.m. May 4 at the St. Charles Convention Center in St. Charles.

Among other honorees:

* Education Progress Award:  the River City Robots, which works on robotics and technology with children and teenagers.

* Health Progress Award:  Barnes-Jewish Hospital St. Peters and Progress West Healthcare Center for its anti-obesity program.

* Quality of Place Progress Award:  Team Target, a group of volunteers from Target stores who played a major role in the MO’ Cowbell Half Marathon put on by the partners group last fall.

* Leadership Progress Award:  Shared by St. Charles County government and city governments across the county for working together to secure state and federal funding for completion of the Page Avenue extension.

* Economy Progress Award:  General Motors’ Wentzville plant for its expansion plan.

Banquet tickets are $100 per person.  For more information, call 636-441-6880, extension 254.

 

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Household confidence improved last week to match the highest level in four years as more Americans said their finances were in better shape.

The Bloomberg Consumer Comfort Index was minus 31.4 in the period ended April 15, compared with minus 32.8 over the previous seven days. The reading equaled that from two weeks earlier as the best since March 2008. Nonetheless, the monthly expectations measure fell from a one-year high, showing concern remains that too many Americans are still unemployed.

Oil prices hovered above $104 a barrel Wednesday in Asia after a report showed U.S. crude supplies jumped more than expected for a fourth week, suggesting demand remains weak.

Benchmark oil for May delivery was up 17 cents to $104.37 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.27 to settle at $104.20 in New York on Tuesday.

Brent crude for June delivery was down 34 cents at $118.44 per barrel in London.

The American Petroleum Institute said late Tuesday that crude inventories rose 3.4 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 400,000 barrels.

Inventories of gasoline fell 2.6 million barrels last week while distillates tumbled 2.4 million barrels, the API said.

The Energy Department’s Energy Information Administration reports its weekly supply data later Wednesday.

Crude has traded above $100 most of this year as an improving U.S. economy has bolstered investor confidence. However, crude demand has remained tepid.

“We look for a sizable U.S. crude supply surplus during the coming months to take some steam out of crude strength,” energy trader and consultant Ritterbusch and Associates said in a report guaranteed fast personal loans. “We still see fresh lows to below the $100 mark by next week.”

On Tuesday, President Barack Obama urged Congress to give oil market regulators more muscle to deter price manipulation by speculators amid rising gasoline prices.

Obama called on Congress to strengthen federal supervision of oil markets, increase penalties for market manipulation and empower regulators to increase the amount of money energy traders are required to put behind their transactions.

“Although President Obama’s comments on oil price regulation will occupy much headline space, it shouldn’t have much impact on oil pricing over the near term,” Ritterbusch said.

In other energy trading, heating oil was down 0.1 cents at $3.13 per gallon and gasoline futures slid 0.5 cents at $3.17 per gallon. Natural gas rose 0.2 cents at $1.95 per 1,000 cubic feet.

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