Briefly: “ASC bans Delta 3” and more news

The Alberta Securities Commission (ASC) has thrown the book at Calgary-based Delta 3 Capital Corporation Inc. for illegal trading and making false representations to Alberta investors.

The ASC singled out Delta 3 directors Darrell W. Dunn, Michael Gottselig and Lucas “Luke” Brzeski in their decision for raising money through a program that promised fixed returns from trading in U.S. treasury bills.

The ASC has ordered all trading, purchasing of Delta 3 securities to permanently cease. Dunn has been banned from trading or purchasing securities, using Alberta securities laws exemptions and acting as a director or officer of any issuer for 10 years, and pay an administrative penalty of $60,000. Gottselig has been banned from trading or purchasing securities, using Alberta securities laws exemptions and acting as a director or officer of any issuer for five years, and pay an administrative penalty of $30,000. Brzeski is also banned from trading or purchasing securities, using Alberta securities laws exemptions and acting as a director or officer of any issuer for three years, and pay an administrative penalty of $15,000.

“This case demonstrated the seeming ease with which the respondents, through an ill-considered, amateurishly-constructed and illegally-operated scheme, were able to raise US$1 million from Alberta investors. Lest any observer consider emulating that dubious success, we consider it essential that our orders deliver a significant measure of general deterrence,” said the panel in their decision.

– John Powell

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Great September for U.S. retailers

Americans proved in September they are willing to spend, as long as the price and the product are right.

Stores including Abercrombie & Fitch Co., Limited Brands Inc. and Macys Inc. posted strong September sales figures, helped by customers lured to malls by back-to-school discounting. That strength was partly offset by erratic weather in the last week of the month, including a heat wave on the West Coast and tropical storms on the East Coast.

The results are a positive sign that shoppers will be willing to spend during the upcoming holiday season.

”I think the doom and gloom that many of us anticipated for the quarter appears unfounded,” said Stifel Nicolaus analyst Richard Jaffe. “Credit goes to the U.S. consumer and the U.S. retailer for sleuthing out what she wants and giving it to her.”

The International Council of Shopping Centers’ index of September retail sales rose 2.6%, near the low end of its forecast that ranged from 2.5 – 3 per cent growth.

But the number is stronger than it appears, since retailers were up against year-ago results that were the first positive numbers in a year, making comparisons more difficult.

Mike Niemira, ICSC director of research and chief economist, said he expects holiday sales to rise three per cent to 3.5%, slightly better than results in September, which is the third largest sales month in terms of volume.

Still, results remain moderate compared to pre-recession performance. Analysts do not expect any major sales surge until unemployment, housing and consumer confidence open at least a year rose 1.3% in September, missing analyst predictions of a 1.9% rise.

– Associated Press

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RBC: Americans concerned about the future

Compared to a year ago, more and more Americans are worried about the direction their country is heading, especially when it comes to jobs.

According to the monthly RBC Consumer Outlook Index, an overwhelming 56% believe job creation and protection is the most important issue.16% picked keeping taxes low as the most important issue while 3% said fixing the housing market was their key concern.

Attitudes about the economy, home prices, the stock market and the value of their investments has improved but according 37% of consumers think the U.S. is on the right track compared to 41% last year.

“True confidence continues to elude consumers,” said Marc Harris, co-head of Global Research at RBC Capital Markets. “While the October numbers saw a steady increase from the prior month’s reading in several areas, consumers’ attitudes have seen no consistent positive momentum since the beginning of 2010 as the economy continues to struggle. Overall, consumer confidence is barely treading water.”

– John Powell

(10/07/10)