We know for some of you this is going to be a long, dark weekend -- no matter what the weather's like -- as you put the finishing touches (start?) on your taxes. It's all worth it, though, right? We know you'll find pleasure in squeezing out those last deductions -- or at the very least have a great excuse to lock yourself in the study for a weekend of privacy (the kids will even miss you come Monday, we think).
So how big of a tax return are you going to get, anyway? And what are you going to do with it? We have some suggestions.
First off, you can play golf with Tiger Woods for upward of $175,000. Hurry, though. This charity auction ends April 14. If your return isn't going to be that grandiose, you should be able to get a Tiger-autographed Master's pin flag for well under $10,000. Or if you'd like to donate a little less, any of our 2001 Foolanthropy charities are open year round.
Or, you could treat yourself to some novel stock certificates. Whether you like their businesses or not, wouldn't your wall look cool with certificates from Krispy Kreme (NYSE: KKD), the Boston Celtics (NYSE: BOS), Harley-Davidson (NYSE: HDI), or the World Wrestling Federation (NYSE: WWF)?
Of course, there's nothing wrong with blowing it all on Motley Fool products, either. For stock ideas and analysis throughout the year, try The Motley Fool Select.
The Motley Fool 50 index would use its tax return to make the world a better place -- if it were getting one.
In today's Motley Fool Take:
Are JetBlue Skies the Limit?
Is it up, up, and away in a beautiful IPO boom? In what may be one of the best signs that the Initial Public Offering runway is being cleared for equity takeoffs, regional air carrier JetBlue (Nasdaq: JBLU) made its market debut today. What? An airline? It's been five years since a domestic carrier went public and you would be hard-pressed to find anyone bullish on the sector as a whole.
However, in the same mold as Southwest (NYSE: LUV), JetBlue is what its larger brethren are not: low cost, regionally nimble, and profitable. By maintaining a fleet of similarly appointed jets, the low overhead has allowed the company to stay out of the red while helping the cost-conscious traveler with one-way fares that have averaged roughly $100 a head.
While sticking to some of Southwest's frill-free roots, JetBlue, which serves mostly the East Coast and is based in New York, still has its glitzier side with leather seats, personalized viewing screens, and assigned seating. And, like Southwest, when JetBlue opens a new hub, the travelers come in droves and the seasoned competition has little choice but to lose money in matching fares.
Investors who like to see long operating histories will be out of luck with JetBlue. The carrier didn't even exist until 1999. While the company reported small losses in its first two years of ramping up to speed, it was in the black last year on $320 million in revenue. With market share from the bulky national carriers ripe for the taking, it's easy to see why the IPO has generated a buzz. It was initially priced at a range as low as $22 a share before being tagged at $27 a stub last night. It opened at $32 this morning and closed at $45 this afternoon. Where the stock goes beyond today's opening day trading is up for speculation, but the sky might be the limit.
Is the IPO market back? JetBlue isn't the only air carrier waiting to be cleared for IPO takeoff. Will the others follow suit? All this and more -- in the Initial Public Offerings discussion board. Only on Fool.com.
Enron's Mongo Legal Tab
Just four months into the bankruptcy proceedings of Enron Corp., the largest American corporation to slide into Chapter 11, the legal bill is already more than $20 million. At that clip, the legal fees, Xerox bills, Internet search fees, and travel receipts are likely to be the biggest in any bankruptcy in history, according to The Washington Post's legal column, Washington Hearsay.
To detail Enron's financial foul play, prosecutors commissioned the "Report of Investigation by the Special Investigative Committee of the Board of Directors of Enron Corp." (referred to as the Powers report, after William C. Powers Jr., who chaired the internal probe). According to bills submitted to U.S. Bankruptcy Court last week, the tab for the Powers report was more than $4 million -- about $20,000 a page. (We'll pause here for readers to catch their breath.)
To counter the findings of the pricey probe, Enron's lead bankruptcy firm (New York's Weil, Gotshal & Manges) is working overtime -- double time in some cases. One Weil associate billed 28 hours in one day, according to papers Weil filed with the court. The same lawyer, a bankruptcy specialist in the firm's Dallas office, billed 52 hours over two days.
Said Martin J. Bienenstock, Weil's point man (who bills at $685 an hour), "Those were punching errors in documenting her time."
Hmm... it's good to know that in the wake of Enron's financial shenanigans, the rest of corporate America is on its toes.
"All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." -- Warren Buffett
Tax Countdown: 3 Days
File your taxes -- or else!
If you're reading this, chances are you haven't filed your taxes yet -- which means your weekend will feature less WD-40 and more 1040. Of course, you could decide not to file. You could thumb your nose at the IRS, resolve to spend the weekend fixing the trellis instead of filing your taxes, but end up going to the movies. (Let's face it -- if you haven't done your taxes yet, the trellis probably won't get your attention, either.)
However, we have some reasons why you should reconsider. The IRS doesn't take kindly to thumbs and noses pointed its way, and will impose penalties for such impudence. Such punishment takes two forms:
- Late-Payment Penalty: 1/2% for each month (or part of a month) the payment is late. For example, if payment is due April 15 and is made May 20, the penalty is 1% (1/2% times 2 months, or partial months). The maximum penalty is 25%.
- Failure-to-File Penalty: 5% per month (or partial month) of lateness to a maximum of 25%. If you obtain an extension for your filing due date, you are not filing late unless you miss the extended due date. If the failure to pay penalty and the failure to file penalty both apply, the failure to file penalty drops to 4 1/2% per month (or part) so the total combined penalty remains at 5%. The maximum combined penalty for the first five months is 25%. Thereafter the failure-to-pay penalty can continue at 1/2% per month for 45 more months (an additional 22 1/2%). Thus, the combined penalties can reach a total of 47 1/2% over time. Wow.
You do have options if you can't pay or you want an extension. Otherwise, get those taxes done. The trellis will still be there on April 16.
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A weight was lifted off IBM's (NYSE: IBM) shoulders today when the Securities and Exchange Commission announced it had closed its inquiry of Big Blue's accounting practices by taking no action. After falling over 20% in the past month, the company's stock price bounced back slightly today.
Shares of compound semiconductor maker Cree (Nasdaq: CREE) moved higher today after CEO Chuck Swoboda said visibility was improving. The company reported a break-even second quarter and reiterated guidance of a 5% quarter-over-quarter revenue increase for the next three months.
XM Satellite Radio (Nasdaq: XMSR) is looking to raise over $150 million in a secondary public offering. The first-mover in the nascent satellite radio industry will offer 13.387 million shares of its common stock at $11.50 a share. The market reacted to the dilution by sending the stock down some 6%.
Viisage Technology (Nasdaq: VISG), which makes face-recognition identification systems, is used to its stock price bouncing around. Today, it popped up almost 15% after the company landed a $7.5 million contract to implement a new digital driver's license system for the state of Connecticut.
It was a boiling-hot day for Mercury Interactive (Nasdaq: MERQ). The maker of testing and analytical software rocketed 25% after reporting pro forma first-quarter earnings of $0.14 a share, which was well ahead of the consensus estimate of $0.10. The company also said it's sticking with its full-year target of between $0.60 and $0.72 a share.
And Finally...
Today on Fool.com: Bill Mann's talking about investment risk in the Fool on the Hill. To put it lightly, the more you're aware of it, the better.... College students and credit cards are a dangerous combination -- no kidding?.... We're looking for an assistant editor here at the Fool. If you've got the grammar chops, some finance experience, and a sense of humor, take a look at the job description and apply at jobs.Fool.com.
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Bob Bobala, Robert Brokamp, Jeff Fischer, Tom Jacobs, Bill Mann, Selena Maranjian, Rex Moore, Rick Munarriz, Reggie Santiago, Dayana Yochim
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