Now you see me(2013) Essay Example | Topics and Well Written Essays - 1250 words

Now you see me(2013) - Essay Example There is no link in the cast of this film. Laurent and Ruffalo are engaging protagonists. The film’s bumbling steely optimism vs. pessimism makes it enjoyable to watch. It is also interesting to watch Caine portray Freeman as Thaddeus, and Arthur Tressler as the rich sponsor of the Four Horsemen. These two subvert the audience’s expectations, by acting as older gentlemen. By comparison, the Four Horsemen, despite likable performances, are not equally satisfying as characters who are fully-realized on the surface and as metaphorical embodiments of emotional qualities. The Louis Leterrier’s cinematic technique blends well with Boaz Yakin Magician Caper storyline. The result is a captivating subtext about the importance of art in entertainment, an enduing magic of films, and the critical role of creative integrity in the cynical skepticism world. The final film features a charismatic band of actress and actors who create a bit of fun and exciting viewing experience through better communication that underlies the message. The film Now You See Me lacks the majestic pop-art statement. The movie’s central set pieces and action sequences are not executed with enough finesse. Furthermore, an attempt to spin the deeper mythology may seem too much like a sequel fodder or rather an afterthought. Nonetheless, this demonstrates that Hollywood films can still entrance. Commenting on the film Ricourt and Yakin said the Now You See me film is similar to a screenplay by (Yakin 4). The film is characterized by twists and turns that probably do not pe rfectly hold up under close-scrutiny. The narrative tends to boil down to a cat and mouse game. However, it is interesting to participate in the guessing contest. Similarly, â€Å"the final reveal† caps off themes and ideas, which are developed throughout the story, is satisfying and easily brings greater significant to the story line proceedings. A look at review’s of renowned critics can give an insight

Greenhouse effect and global warming Essay Example | Topics and Well Written Essays - 1250 words

Greenhouse effect and global warming - Essay Example There has been a considerable increase in the average temperature of earth in the past century. This rise in temperature is attributed to the effects of global warming brought about by the accumulation of greenhouse gases in the atmosphere. This phenomenon is called Global Warming. (In the news, Global Warming.org).The global warming has happened in the past few years and is evident from the rise in mean temperature of the earth's atmosphere. The main causes for the global warming are attributed to release of green house gases by human activities. The main gases contributing to green house effect are carbon dioxide, water vapor, methane and nitrous oxide. The largest producers of these gases are the thermal power plants, which burn the fossil fuels and produce these gases in large quantities. The second biggest sources of these green house gases are the road vehicles and industries. The global warming has led to increase in mean earth surface temperature and thus melting of polar ice . There are frequent melt down of glaciers that result in floods and other natural calamities. The melting of ice at the poles had led the mean sea level. And further increase in temperature may further melt the ice and lead to further increase in mean sea level, which will engulf low lying countries. (Global Warming facts, Global Warming.org). HOT (or warm) TOPIC as Always! Well, Global warming has always been in news for some time around due to several factors (including comical) and was even referred in the Daryl Cargle cartoon Global chaos-Halloween 2008 as one of the demons in the Halloween night who scare today's population. On the contrary this principle has been exploited so skillfully by ecological scare-mongers that it is now regarded as politically incorrect, even unscientific, to denounce global warming hysteria as unproven speculation. In his latest exciting and provocative techno-thriller State of Fear, Michael Crichton exposes a scintillating revelation, regarding the way ecological groups have twisted data and facts to create mass anxiety. He points out that we know astonishingly little about the environment. All sides make exaggerated claims. "We know that atmospheric carbon is increasing. We are also in the midst of a natural warming trend that started in 1850 at the end of what is called the Little Ice Age. It is scientifically impossi ble to prove whether the subsequent warming is natural or man-made." Greens say, rightly, that the best scientific assessment today is that global warming is occurring. Yet never in history have scientists accurately predicted what will happen 100 years later. A century ago no scientists predicted the internet, microwave ovens, TV, nuclear explosions or antibiotics. It is impossible, even stupid, to predict the distant future. That scientific truth is rarely mentioned. Why Because the global warming movement has now become a multi-billion dollar business with thousands of jobs and millions in funding for NGOs and think-tanks, top jobs and prizes for scientists, and huge media coverage for predictions of disaster. Something worth a laugh! The "Discovery" channel recently produced a documentary on Greenland's alleged "melting glaciers." Oh boy! Here we go again with Global Warming. It's

The Illusive Race Question and Class Essay Example for Free

The Illusive Race Question and Class Essay Abraham Lincoln once said, â€Å"With malice toward none, with charity for all, with firmness in the right, as God gives us to see the right, let us strive on to finish the work we are in, to bind up the nation’s wounds (cited in Franklin 1993). † This sentiment has been expressed many times since the absolution of slavery in 1870. Yet with every step we take towards eradicating racism, we fail to see it encroach in an insidious and malicious manner. We have been led to think that this epidemic is about the color of a man’s skin. In the Illusive Race Question and class it states, â€Å" Racism resembles bacteria. It has the uncanny ability to resist Cures (Acuna, p. 4) . † First Steps Our first biggest step toward eradicating racism in this country was President Lincoln’s signing of the Emancipation Proclamation on January 1, 1863. Although the document had very little power to free slaves, it was considered an â€Å"Act of Justice. † It was a cry for America to wake up and understand that All men are created Equal. One hundred years later, Vice President Lyndon B. Johnson said, â€Å"Until justice is blind, until education is unaware of race, until opportunity is unconcerned with the color of men’s skins, emancipation will be a proclamation but not a fact cited in Franklin, 1993). † Mr. Johnson understood that racism came not just in the form of color, but of education, location, and social status. Earliest Forms of Indoctrination Parents are recognized as the earliest source of children being indoctrinated with racists views , classmates are second ( Savard Aragon, 1989). This study states that during our early gradeschool years each child has learned to do some stereotyping. They also recognize that cultural and institutional prejudices are more subtle, the roots being passed down through many generations. Reverse Racism Annuit Coeptis takes racism one step further by suggesting that in all of our attempts to restore balance and remove racism we have created reverse racism again the white man. He says it is not uncommon on a college campus to see Asian Students Associations, or Latin American Students Associations, but you will not see a White Students Association. The article states, â€Å"Questions of race on college applications can mean only one thing; for college admissions officers, race does matter. That race helps to determine an individuals acceptance to a college is not affirmative action, it is discrimination in action. (Robinson, 2009) † Racism in another form Although the Illusive Race Question Class is based primarily on how racism affects Latinos and their history of racism, I have found through the research of this paper, that every ethnicity can claim racism in some form or another. We have all at one time or another been type casted whether it was because of our ethnicity, the area in which we grew up, our family’s history or financial circumstances. I close with this, â€Å" My point is that we once believed that racism had been defined and that we were on our way to eradicate this ugly social disease only to find it active and well, but in another form. (Azuna, 2005) †

William Wordsworths Lines Composed a Few Miles Above Tintern Abbey Ess

William Wordsworth's "Lines Composed a Few Miles Above Tintern Abbey" Whereas most individuals tend to see nature as a playhouse that should alter and self-destruct to their every need, William Wordsworth had a very different view. Wordsworth perceived nature as a sanctuary where his views of life, love, and his creator were eventually altered forever. The intensity of Wordsworth's passion for nature elevated him from a boy into the inspiring man and poet in which he is recognized to be today. One of the most compelling works Wordsworth ever devised was that of "Lines Composed a Few Miles Above Tintern Abbey." The poem enlightens the reader on the awesome power and depth of nature, which Wordsworth has discovered in his trials and tribulations upon the earth. Thus, to fully understand the significance of nature in all lives told through "Lines Composed A few Miles Above Tintern Abbey" one must understand the setting and mood, as well as comprehend the rhyme scheme, and use of many diverse poetic devices that interact within the poem. One is able to gain insight into "Lines Composed a Few Lines Above Tintern Abbey" by first trying to understand the mood and setting of the poem. Although it "is a miniature of the long poem Wordsworth never quite wrote" (Robyn Young p.409) it lacked nothing as far as depth and intensity goes. Wordsworth was very skilled in such areas, although his writing may be come very complex it is said that it was a result of "the spontaneous overflow of emotion" (Gale Net). Wordsworth wrote this poem, as cited by Wordsworth without "any part of it was written down till I reached Bristol" (F.W. Bateson p.191). Wordsworth was a firm believer that man should ?find an immanent force that unites them with their physical and spiritual environments? (Jan Shoemaker p.1). As Wordsworth revisits this beloved place of his (Tintern Abbey) he is reminded of how he once perceived this sanctuary. Wordsworth attempts to compare and contrast two worlds, Brian Barbour states ?Wordsworth?s basic strategy is to a ppeal to the spiritual while remaining entirely within the natural order?(Barbour p.154). When he was a young child he came to this valley using it as his own personal playground. He never gave nature the respect and praise that it so deserved. He just saw nature through a young child?s eyes; he saw a tree in which to climb, grass in which wa... ...pt. The reader viewpoint of nature in a sense is altered, as Wordsworth is erudite about the wonders of our mother nature. One must learn to live in harmony with nature to fully understand our true character and to enjoy the gracious gifts of natural world that have so graciously bestowed upon us all. Works Cited Barbour, Brian. "Between Two Worlds." Nineteenth-Century Literature. California Press (1993): 14 7-168 Bateson, F.W. Wordsworth a Re-Interpretation. London: Lowe and Brydone (Printers) Limited, 1956. Bloom, Harold. Bloom's Major Poets. Pennsylvania: Chelsea House Publishers, 1999. Bloom, Harold. Modern Critical Views. New York: Chelsea House Publishers, 1985. Gill, Stephen. A Life. Oxford: Clarendon Press, 1989. Hartman, Geoffery H. The Unremarkable Wordsworth. Vol. 34. Minnesota: University of Minnesota, 1987. Shoemaker, Jan. Bill and Gus. [Online] http://FirstSearch.oclc.org. Jan 27, 2000. Wordsworth, William. Detroit: Gale Company, 1999. [Online] Exploring Poetry. Feb 22, 2000. Wordsworth, William. Lines Composed. [Online] http://www.library.com/poems, Feb 29, 2000 Young, Robyn V. Poetry Criticism. Vol. 4. Detroit: Gale Company, 1992

Broken Angel :: essays research papers

Broken Angel by Francine Pascal Broken Angel by Francine Pascal is a story about Angel Desmond who is at the racetrack and has gambled away all of his money. His girlfriend Tia Ramirez and her friend Conner McDermott are looking for him. They find him at the racetrack and Tia gets very angry with Angel when she finds out he has lost all of his money. Angel dreads telling his parents, because he lost his whole savings account which was for college. He graduated form El Carro is supposed to go to Stanford in the spring. His parents are really excited about it.Angel stayed up late that night thinking about what happened. The next morning his mom offers to take him to get a small refrigerator for his dorm room at Stanford. He cannot take the pressure anymore so he tells his parents he does not have any money. Then he tells them what happened and they are very disappointed in him. His father fires him from his job at the garage that his father owns. Tia and Conner meet ant the cafà © and try to think of ways to help Angel. Finally when everything seems hopeless Conner thinks of a good idea. Conner’s mom is in all kinds of charities that give out scholarships at the end of school. Conner said he would ask his mom to put in some good words for Angel. Conner goes to ask his mom to help Angel. He is very nervous because she is usually drunk. She is an alcoholic. He finally gets his nerve up and knocks on her bedroom door. He walks in and she is cleaned up and sober. It was a big shock to Conner. His mom calls a few people for Angel and makes a few dinner dates.Tia goes to Angel’s house to tell him the good news. He comes to the door smiling from ear to ear. He said he has got good news for her. She tells him the news about Conner’s mom trying to get him a scholarship. He tells her tell Conner to just forget it. He is not going to college. He tells Tia he is going to stay with her. She tells him he cannot because he has worked so hard to go to Stanf ord. He then tells Tia she does not love him because she is pushing him away.

How cultures use food Essay

1. Outline the way different cultures use the value food? Out of the many different cultures present throughout the world, all value food in most similar ways. Most similarities can be struck between the availability of foods within their regions, specifically enviromental and seasonal ripening in the spring period. Food has become plentiful in Western civilisations over the past few decades, , due to the advances in agriculture allowing maximum growth and larger yields in the shortest amount of time (Chemgeneration 2011). This has also introduced interest into controversial genetically modified foods and the use of hybrid varieties of plants that have more desirable qualities. An example of this is Maize and certain potatoes that secrete a pesticide from the plant to ward of pests and insects, thus removing the need to use pesticides and chemicals (Chemgeneration 2011). Dr Rosalie McCauley (Development Office Department of Agriculture and Food WA, p1), obtained results that genetically modified foods haves been more increasingly used as th e use of farmland increases exponentially at over 6% per year, seeing some 170.3 million hectares of GM foods being grown. In western society, there are a significant percentage of people either being overweight or obese, even Australia that has a population of approx 22 million (Australian Bureau of Statistics p1), with over 60% is considered over weight (ABS 2012, Australian Bureau of Statistics). Most overweight or obese individuals have and unhealthy relationship with food and it was theorised by Dr Carole Hungerford (Good Health in 21st Century) it can be considered ‘an addiction’. There is speculation as to why western society has such an addiction foods such as bread and milk, as we are the only species that drinks milk after weaning, especially that of another animal. Clinical studies and Medical Publications released by Dr J.L. Fortuna (PUBMED, 2010, p1) found clinical similarities for binge eating to that of drug dependences seeing a similar release of serotonin as with other drug dependencies. Though obesity is a prevalent condition around the world, numerous countries do not have the same obesity rates as western culture, some of this is likely to result in the way food is perceived by other cultures. Comparatively, in some cultures around the world, it is part of their culture to abstain from food for a short period of time. A more popularly known fasti ng is the Islamic undertaking of Ramadan where they fast during day light hours (Huda, 2009). Though in western cultures, people have a dislike to feel hungry, and can feel like they have fasted if they miss morning tea during a busy day at work. Numerous cultures throughout history have also used food as offering to their gods or deities to pray for health, or future harvests rain. Egyptian Pharaohs would be entombed with vast pots of food and spices to be used on their journey to the heavens. Some traditional practices continue even today such as the Korean Charye used to honour families ancestors, where special foods are prepared to during the Chuesoerk Ceremonies. The Chuesoerk (Korea.net, 2010) is a three day holiday to celebrate the good harvest received during the spring of that year. These cultural and religious uses for food are worldwide, and often not too distant from Christian practices of thanksgiving celebrated during the Christmas period. In conclusion, all cultures, no matter how distant or unique, have significant celebrations, events or relationships with a large role involving the use or lack of foods. The use of food to bring together communities and families is not dissimilar in almost all countries and demographics on earth; however the individuals use or overuse is not always healthy. References: 1. The Chemical Generation 2001, Viewed 14 January 2014 2. The Chemical Generation 2001, Viewed 14 January 2014 3. Dr Rosalie McCauley, Department of Agriculture and Food, WA, viewed 10 January 2014 4. ABS (2012) Australian health survey: First results, 2011–12. ABS cat. no. 4364.0.55.001. Canberra: Australian Bureau of Statistics. Viewed 14 January 2014 5. Aust Government, National Health and Medical Research Council. Viewed 10 January 2014 6. Hungerford, Dr Carole, 2008, Good health in the 21st century, Revised Edition, Scribe, Victoria. 7. Fortuna, J. Department of Health Science, CALIFORNIA STATE UNIVERSITY, viewed 10 January 2014 8. Huda, About.com, 2009. Viewed 15 January 2014 9. Korea.net, 2010, viewed 11 January 2014 2. What general concepts guide the present western diet? The current concepts of the western diet are based in the influence of proteins, carbohydrates, fats and vitamins and minerals (Whitney and Rolfes, 2013). Although we have come a long way with the introduction of multiculturalism some decades ago, for many western diet is still based around the proteins consisting of meats, predominantly red meat and chicken, carbohydrates with starchy root vegetables. This is often referred to as the ‘meat and three veg’ diet and the previous generations would have grown up with this as their diet staples as they where the majority of foods available for purchase or even grown themselves. With exception to the last 200 years, mankind has been involved in the seasonal use of foods and their diets where restricted by what was available at those times. Today there are vast changes in the way foods are produced to permit year round availability and the creation of food products that have previously been unavailable. Researchers at Bates Collage (Lewiston, ME, USA, 2013) believe that in the last 150 years since the invention of stones mills, the refining process of grain to create white flour, is now a consistent staple within the western diet. It was noted that this is a considerable source of carbohydrates and the cultures that had not encountered this food type previously began to show Heart Disease, Type 2 diabetes and stroke. These are all ailments that had been previously unseen in those areas. Additionally, the belief of receiving good value for money has become one of the most influential concepts and reasoning behind the purchase of processed food in recent times. The perception to receive the best meal, to be filling, quickly and well priced has seen the fast food chain market turn into a billion dollar industry (B.A. Swinburne, 2004). Anna Hodgekiss (U.S. daily Mail editor) explains that the over indulgence of these highly fatty foods have been  linked to short life spans and arrays of health problems. Even with the warnings and proven heath problems that arise, some families can become dependent on foods that are considered â€Å"value for money†. In conclusion, the general concepts to achieve the main food groups are relevant and understood but poorly enacted. The ease and availability of cheap fast food and highly refined products, that arrive ready to eat, are becoming preferential over the more time consuming cooking of foods from the local supermarket. References: 1. Whitney, E and Rolfes, S. Understanding Nutrition 13th Edition, 2013, Wadsworth USA 2. BATES Collage 2014, 2 Andrews Road Lewiston, ME 04240. Viewed 14 January 2014 3. Online book extract B.A. Swinburne, Public Health Nutrition, Chap 7, pp132 (p10). Viewed 14 January 2014 4. Hodgekiss, Anna, U.S. Daily Mail, viewed 14 January 2014 3. Discuss the comparative issues between man and nature? Nature is the world surrounding us, and it is the term we use to describe anything that happens which is out of our control. Such as natural disasters like cyclones, floods and drought. So considering this nature can not only be seen as a friend, but also as an enemy. Man desires to control nature by synthetic, mechanic and industrial plans. Synthetic and Natural medicines desire the same outcomes, of long life and good heath, but the methods to achieve it could not be any more different. Whether it is derived by numerous chemical processes or used in the original form it is found, nature made and manmade are vastly different especially when it comes to health and healing. Some cultures rely almost completely on nature to provide their basic needs such as water, food, shelter and even medicine. Though considered bland and not in line with the â€Å"perfect diet† (Health Schools Australia notes), the health benefits and improved health conditions are  achieved without the use of synthetic medicine, where as Western Diet, requires supplement by manmade medicines. This reliance on the local flora and fauna to provide all essentials and life improving aspects is not a new belief and is understood worldwide, but has been partially replaced by Western perception of that health can only be achieved by Pharmaceutical (Crigger NJ). The perception that health and food are separate and not interrelated because ‘man’ has created medicines that are better than those extracted from the ‘nature’ like Tibetans and non western cultures. In contrast, Western society has adopted that the scientific basis behind the synthetic production of therapeutic medicines is the only medical way to treat disease and illness. Today, it appears the practice of non synthetic medicinal applications is mostly centric to non western cultures. The â€Å"Perfect Diet’’ is deemed as a one shoe fits all remedy for the correct eating and dietary requirements for modern people. Where if we look at the diets of other cultures, such as the Hunza diet or Mediterranean Diet, where the majority of the population has a life expectancy significantly higher than that of the Western counterparts may have something to do with the foods that differ to that of the â€Å"Perfect Western Diet†(Diet Choices, 2014 and Trichopoula, A). One key reason is believed to be the Hunza population in the Himalayas consume more than 200% (Dainca Collins, 2011) of the B17 (also known as Amygdalan) than their western counter parts. This is likely due to the Hunza eating the seeds of all fruits, which is something that is often discarded within western society. Christina Larner (Body and Soul) has identified that Apricot se eds contain the largest concentrations of B17, and has been used a cancer treatment in modern times. However the same seeds are alleged to have caused Cyanidic acid when consumed to excessive quantities, but cases of cyanide toxicity are rare (Christina Larner). In conclusion, man created medicines for health and longevity are proven to be available in the natural world around us. Public perception provides the strongest reasons why man made pharmaceuticals are the main stream choice for western society, where as the isolated communities use the world around them to treat their ailments. 1.Whitney, E and Rolfes, S. Understanding Nutrition 13th Edition, 2013, Wadsworth USA 2.Crigger, N.J. 2009, PUBMED, US National Library of Medicine, viewed 14 January 2014 3.Diet Choices, 2014, Diet Choices, Las Vegas NV, USA, viewed 15 January 2014 < http://dietchoices.com/diet-plans/hunza-diet/> 4.Trichopoula, A. 2000, PUBMED, US National Library of Medicine, viewed 14 January 2014 5.Dainca Collins, 2011, UNDERGROUND HEALTH REPORTER, viewed 15 January 2014 6.Larner, Christina, Body and Soul, viewed 15 January 2014 4) Diversity of foods has been a benefit to the human race? Australia’s culinary heritage has expanded greatly over the last 100 years with numerous population demographics immigrating to Australia. We have observed cultural and culinary delights flood our markets, restaurants and kitchens with sights, smells and aromas from around the world. Many years ago these would have been deemed exotic and bizarre, but are now considered almost staple additions to the average household pantry. Fifty years ago, within our Grandmothers pantry, our available food selections were significantly limited in spices and rare/exotic foods that are now considered normal place. Meat and three veg meals of starchy root vegetables and heavy protein meats where the staple of the diet during those times. It is argued (Potatoes SA) that these staples popularity on Australian kitchen tables where due to the European based settlers focusing on farming practices for this produce over the last 100 years. Pliner and Hoden (cit. Evaluation of food choice behaviours, p 20) stated it was more to do with the neophobic attitude towards foreign foods due to the â€Å"unfamiliarity of foods† that limited the adventurous mindset to the evolving culinary scene. In either case, only since World War 2 did the appearance of multicultural foods and diets start to intermix. One of the most popular entries into our diets is the highly regarded Mediterranean diet consisting of uncooked fresh whole vegetables, whole grains and some fish and seafood but minimal meat. That compared to the past diets of root based vegetables that where often boiled or baked, and argued to lose most of its natural vitamins and minerals during the cooking process, especially seen with water soluble vitamins (Better Health Channel). The high use of tomatoes within the Mediterranean diet, which contain large amounts of the antioxidant lycopene and that is believed to have anti-tumour properties to relieve cancers  particularly in the prostate and multiple-myeloma (Tonia Reinhard, p44-45). Additionally, the vibrant coloured vegetables that contain high amounts of VIT A and C such as Capsicums, Spinach, green leafy vegetables. VIT A is required for vision, the immune system and as an antioxidant. Dr Carole Hungerford (Good health in 21st century, p160) identifies that night blindness is a symptom of VIT A deficiency. Even the fats used are considered healthier with the Olives and olive oil as the principle source of fat. Tonia Reinhard states that Olive oil contains the richest source of mono unsaturated fatty acids, being 77% mono-unsaturated and 14% saturated, this is attributed as to why it helps to prevent cardiovascular disease. In conclusion, the diversity of foods that have spread across the world is bring ing the many health benefits to many. As the world continues to expand and new ideas and foods are embraced, soon the healing and healthy properties of those unique diets will improve the health and well being across the globe. 1.Potatoes South Australia, 2013, Elder House, Adelaide, SA, viewed 15 January 2014 2.Online Thesis – Roininen, Katariina, 2001, Evaluation of food choice behaviour: Development and Validation of health and taste attitude scales, visited 15 January 2014 3.Better Health Channel, July 2013, Victorian Government, viewed 15 January 2014 4.Hungerford, Dr Carole, 2008, Good health in the 21st century, Revised Edition, Scribe, Victoria. 5.Reinhard, Tonia, (2010), SUPERFOODS The Healthiest Foods on the Planet, Cove Press, NSW 5) The future of nutrition In the past and even in some places still today, nutrition has not play a conscious role in conventional medicine, as the focus has and always seems to be about treating disease not the cause. Nutrition based medicine has been labelled with a stigma as ‘alternative’ or new age and not given the same attention as the newest drug on the market. Recently have we begun to see some changes within the health care system which offers clients a  natural alternative to pharmaceuticals. This has began a movement known as Integrative Medicine (OSHER, 2012), where the approach is about taking the best from conventional and alternative medicine and combining them. This combination of practices is reinforcing the tenants of prevention rather than cure, which follows the old adage that â€Å"an ounce of prevention is better than a pound of cure†. We are already seeing this revolutionary ideal take off with the emergence of integrative clinics now established in some major citi es, and where patients even seek further information from their GP on what additional alternative treatments are available for their ailments (Mike Adams, 2005). This wider social consciousness towards natural alternatives is perhaps due to the increased marketing of nutritional supplements within media (Mike Adams, 2005). These messages are making people more curious about their health and what they can do to improve it. In addition, we are seeing nutritional products such as ‘Inner Health Plus’ a pro-biotic supplement, is sometimes prescribed to patients following a course of antibiotics. This behaviour by GP’s is demonstrating a small but important step to the medical and health organisations towards the evolution of nutritional medicine. The popularity of supplements and their advertised health benefits has propelled the sale of many nutritional products, especially Omega 3 supplements derived from fish oil or krill oil (Lisa Schofield, 2013). Omega 3 that is naturally occurring within deep ocean fish species has been proven to be beneficial for arthritis suffers, for heart health, and general wellbeing (Whitney, 2013, pg 161.). Dr Hungerford (Hungerford, 2008) tells us that until recent times, animals who do not manufacture their own omega 3 would have had to eat plants which contain omega 3’s for protection against the cold and other health benefits. However, as we domesticated animals, kept them warm in barns, and fed them the food we grew; the animals did not require as much omega 3 in order to survive. This man made change is a potential reason is why fish still remains one of the best sources of omega 3, as the majority of fish that we consume are wild. (Hungerford, 2008 pg. 6-7). In summary, the stigma of nutritional based medicine is slowly being lifted as media, mainstream medicine and health care practitioners inculcate these practices into their professions. Today, more than ever, people have access to the information and products that can be utilised to improve their health, wellbeing and  diets. As the message becomes clearer and better understood, it is likely that the stigma will be removed completely and nutritionists will be given the same renowned as the doctors and medical professionals that share the same vision for long and healthy life for all. 1.Osher Centre for Integrative Medicine, University of California, 2012, CA, USA, viewed 17 Jan 2014 2.Adams, Mike, 24 July 2005, Natural News, viewed 17 Jan 2014 3.Hungerford, Dr Carole, 2008, Good health in the 21st century, Revised Edition, Scribe, Victoria 4.Schofield, Lisa, 09 Sep 2013, Nutraceuticals World, viewed 17 January 2014 5.Whitney, E and Rolfes, S. Understanding Nutrition 13th Edition, 2013, Wadsworth USA Bibliography ABS (2012) Australian health survey: First results, 2011–12. ABS cat. no. 4364.0.55.001. Canberra: Australian Bureau of Statistics. Viewed 14 January 2014 Adams, Mike, 24 July 2005, Natural News, viewed 17 Jan 2014 Aust Government, National Health and Medical Research Council. Viewed 10 January 2014 B.A. Swinburne, Public Health Nutrition, Chap 7, pp132 (p10). Viewed 14 January 2014 BATES Collage 2014, 2 Andrews Road Lewiston, ME 04240. Viewed 14 January 2014 Better Health Channel, July 2013, Victorian Government, viewed 15 January 2014 Collins, Dainca, 2011, UNDERGROUND HEALTH REPORTER, viewed 15 January 2014 Crigger, N.J. 2009, PUBMED, US National Library of Medicine, viewed 14 January 2014 http://www.ncbi.nlm.nih.gov/pubmed/19671650 Diet Choices, 2014, Diet Choices, Las Vegas NV, USA, viewed 15 January 2014 < http://dietchoices.com/diet-plans/hunza-diet/> Dr Rosalie McCauley, Department of Agriculture and Food, WA, viewed 10 January 2014 Fortuna, J. Department of Health Science, CALIFORNIA STATE UNIVERSITY, viewed 10 January 2014 Hodgekiss, Anna, U.S. Daily Mail, viewed 14 January 2014 Huda, About.com, 2009. Viewed 15 January 2014 Hungerford, Dr Carole, 2008, Good health in the 21st century, Revised Edition, Scribe, Victoria Korea.net, 2010, viewed 11 January 2014 http://www.korea.net/Government/Current-Affairs/Others?affairId=168 Larner, Christina, Body and Soul, viewed 15 January 2014 Osher Centre for Integrative Medicine, University of California, 2012, CA, USA, viewed 17 Jan 2014 Potatoes South Australia, 2013, Elder House, Adelaide, SA, viewed 15 January 2014 Reinhard, Tonia, (2010), SUPERFOODS The Healthiest Foods on the Planet, Cove Press, NSW Roininen, Katariina, 2001, Evaluation of food choice behaviour: Development and Validation of health and taste attitude scales, visited 15 January 2014 Schofield, Lisa, 09 Sep 2013, Nutraceuticals World, viewed 17 January 2014 The Chemical Generation 2001, Viewed 14 January 2014 The Chemical Generation 2001, Viewed 14 January 2014 Trichopoula, A. 2000, PUBMED, US National Library of Medicine, viewed 14 January 2014 Whitney, E and Rolfes, S. Understanding Nutrition 13th Edition, 2013, Wadsworth USA

Nec Electronics Corporation (Nece) Case Study Essay

INTRODUCTION In early July 2007, the New York based hedge fund Perry Capital proposed to raise its stake in NEC Electronics Corporation (NECE), the then publicly listed subsidiary of Japanese conglomerate, NEC Corporation, from 4.8 percent to 25 percent. The offering was  ¥5,000 a share, at about 60 percent premium. Perry’s investment in NECE traced back to late 2005, the year its first exposure to Asian markets, with the initial investment cost at around  ¥3,200 a share. Perry believed the intrinsic value of NECE was to release after restructuring its business strategy, albeit NECE was expected a loss in FY2005. This paper studies the investment of Perry Capital in NECE, and particularly looks at Perry’s consideration to increase its stake in NECE to 25% at that time. INVESTMENT OPPORTUNITIES IN JAPAN As shown in Exhibit 1, the long-lasting deflationary Japanese economy since 1997 probably comes to an end with its CPI rebounded from negative in 2006. At the same time, Bank of Japan has loosed its monetary policy by raising the interest rate above zero since 2006. These two data suggest that Japanese economy is pending an exit from the lost decade. Looking at the Nikkei 225 index shown in Exhibit 2, the bullish trend since 2003 shows the investors are optimistic towards companies’ future earnings. The improving market sentiment stems from the amelioration of Japanese economy, with its GDP growth rate has become positive since 2000, as shown in Exhibit 3. Moreover, Japan’s export industries have been performing well due to its weak currency. Perry’s investment in NECE can be a sensible move as Japan is one of the leading countries in producing innovative technological products. In 2007, Japanese high-tech products secure a significant market share in the world. These industries include automobile, IT, communications, mechanism and robot, new materials, etc. In addition, Japanese firms allocate significant amount of resources in their product R&D area, the efforts paid in improving product quality and promoting innovation enhance Japanese firms’ competitive strength overtime. Essentially, Perry’s investment philosophy is looking at the fundamental of the company, building good relationship with the management, investing in good company, and possibly keeping its portfolio beta at a considerably low level. As Perry’s portfolio has been performing well since its inception, the venture into Japanese market is compliant with its investment strategy, where stocks in Japanese market produce reliable streams of cash flow, and more importantly, there are valuable cheap stocks to pick in Japanese market, these characteristics are aligned to Perry’s taste. CHALLENGES TO INVEST IN JAPAN The first time venture suggests Perry is novel to the Japanese market. As the probability of success of Perry’s investment in NECE highly depends on the assumption made to restructure NECE’s business division, Perry must convince the parent company NEC to share its vision. Agency problem would be a potential challenge for Perry to maintain a good relationship with NEC. As the subsidiary will become a separate entity from its parent company upon listing, it is questionable whether the parent company will longer treat the two different entities equivalently. For instance, will the parent company shift the loss-making divisions to its subsidiary, which then can help the parent company to get rid of loss at the expense of its subsidiary’s financial report? Furthermore, Japan’s system of corporate governance is said lacks of effective protection to minority shareholders. Controlling shareholders in Japan are not required to prove that their dealings with the company are fair, and self-dealing is not formally defined by law. Furthermore, in Japanese model of stakeholder capitalism, management could be entrusted to safeguard the interest of a range of key shareholders, rather than focusing more narrowly on maximizing returns to shareholders, which might weaken minority shareholders’ power in deciding an important issue. FUNDAMENTAL VALUE OF NEC ELETRONICS CORPORATION Perry team made a few assumptions to evaluate NECE in early 2006. Since the exact date of evaluation is not clearly stated in the case, we will first evaluate NECE at 2007 based on the assumptions made and then apply the same methodology to other years. Team Perry used an approach that employed EBITDA multiples for each segment: MCU, CCD and Communications. We use the information from exhibit 7 and exhibit 8 to infer the fundamental value from 2004 to 2007 and future. We then make inference on value of NECE based on 03/2006 and 03/2007 values. Note that information from exhibit 6 and 8 are from 2007. Fundamental Value of NECE at 03/2007 Assumptions used in valuing MCU division: I. MCU is able to match the average EBIT margins of comparable firms, which is 17.70%. II. 15% of the  ¥83 billion depreciation cost is attributed to MCU for the next few years. III. A conservative approach of 9 times EBITDA multiples is used. Assumptions used in valuing CCD division: I. EBIT margins of the remaining business are 5%. II. 45% of the  ¥83 billion depreciation cost is attributed to MCU for the next few years. III. 7 times of the EBITDA multiples is used. Assumptions used in valuing communications division: I. EBIT margins could be negative. II. To avoid loss, exiting this line is an attractive option. III. Estimated cost of exit at most  ¥100 billion. The fundamental value of NECE on 03/2007 is the summation of each division’s fundamental value: Note that the Fundamental value is higher from year 2005 to 2007 except year 2004. EVALUATION ON ASSUMPTIONS USED The first assumption expects MCU would be able to match the EBIT margins of comparable firms. However, there is a large dispersion in the EBIT margins among the comparable firms. The large difference of EBIT margins between the comparable firms could suggests that the cost differentials are significant among these firms. Indeed, the uneven distribution of EBIT margins among comparable firms could also because of the small number of sample size used, which in turn soften the estimation power of this assumption. The second assumption is to give the CCD EBIT margins of 5%. However, as the average EBIT margins of the comparable firms is around 16%, with the range between 7.3% to 42.3%, Ercil’s might probably be too conservative than he should in valuing the CCD segment in NECE. Moreover, Ercil also assumes that he will be able to exit the communication segment at a cost less than 100b which is again a conservative estimation as mentioned in the case. Given the above these assumptions made by Ercil, it seems that he is a conservative investor who prefers to take conservative valuation in his investment discretion. Though his conservatism might make the estimated NECE fair value become less attractive, his prudent investment strategy could probably in turn safeguard his clients’ money in any unfavorable event. Below shows some assumptions made by Ercil that are reasonable. First, instead of using 11x EBITDA multiples to value NECE’s MCU segment, Ercil used a lower of 9x EBITDA multiples. This assumption is definitely acceptable as it is in line with Perry team’s prudent investment strategy. In addition, the depreciation cost allocation made by Ercil seems reasonable. Ercil allocated 45% of depreciation cost into the communications segment, as there was a significant amount of capex used to build the plant in Yamagata in the recent past. Based on Ercil’s assumptions we manage to breakdown NECE balance sheets based on its divisions. This activity illustrates that the EBIT margin estimates are consistent with exhibit 8 and has no mathematical or financial discrepancies in terms of amount allocated to each sectors. EBIT margin for communications segment is indeed negative for year 2007 based on Ercil’s assumption. We observe high expense in communications area possibly due to expropriation of NECE by its parent company, NECE that will be discussed below. POTENTIAL AGENCY PROBLEM ON NECE’s MARKET VALUE Our case analysis assumes that market is efficient, implicating that outsider anticipate potential agency problem within NECE. Besides demanding fair return on their capital, controlling shareholders should ultimately bear all agency costs they create. This is consistent with the journal â€Å"Agency Costs, Mispricing and Ownership Structure† by Sergey, Fritz and Greenwood (Sergey Chernenko, 2010), whereby the case of NECE is used to illustrate the impact of agency cost on market value. Agency problems in subsidiary-parent relationships could stem from 3 scenarios: I. Related party transactions: Based on the journal, following NECE listing in 2003, the development of microchips for NEC’s phone brought in excessively high capital expenditures and research and development expenses to NECE. Following it was the low transfer prices to the parent company, NEC. This is due to the weak fiduciaries duties law on company in the interest of minority shareholders. II. Usurped business opportunities: Indirect influence of parent company on their subsidiaries such as continuing a business venture that profits the parent despite the subsidiaries making losses make it hard to be detected. In particular, NECE incurred excessive R&D cost and capital expenditures to enhance NEC competitive position in the market. III. Minority squeeze outs- Cash-out merger is an example of minority investors being squeezed out. NEC bought back NEC System Technologies 20 months after listing it, evidently showing NEC’s involvement in this form of related party transaction. Based on the journal’s samples, Investors who bought the subsidiaries share upon listing sold their shares back to the parent during repurchase at a loss of 39% to 71%. Therefore, in perfectly efficient market, minority shareholders fully anticipate agency problems. If controlling shareholder is expected to divert resources, the market will price the equity accordingly (lower) than in the scenario where agency problem is absent. One caveat is that, investors might not be fully informed (market is not totally efficient) that in turn creating incentive for agency problems. PROSPECTS OF NECE The fundamental value of NECE is severely undervalued compared to its market value in 2007; this might be due to the agency problem that persisted between NEC-NECE. We conclude that NECE is a potential lucrative investment if Ercil is able to remove the communications segment and thereby removing the potential agency problem in NECE. Nevertheless, the reluctance of NEC to remove the communications segment and the weak protection of minority interest in Japan cast shadow on the prospects on NECE. Worsening the situation, NECE was nearly delisted in 2007, implying that liquidity could have drastically decreased. Note that also the MCU and Other Divisions remains relative stable (slight increase) over the projection years. Historical Performance of Publicly Listed Subsidiaries of Parents in Japan Our findings are consistent with the data given in Exhibit 4. If market is efficient, the incentives for parent company to list its subsidiaries arise either when the market value of subsidiaries is overpriced upon listing or if the parent company’s internal capital is inadequate to fund attractive investment opportunities. In the case NECE, the former scenarios seem to be more plausible as according to the graph above. This could lead to drop in future market performance as market absorbs more information. Source: http://www.nber.org/papers/w15910 According to Fritz (2010), the negative performance of listed subsidiaries over the first 36 months following IPO can be seen via industry adjusted returns of -6.2%,-13.43% and -13.98% over the one-,two- and three year horizons after IPO. This is again consistent with the case of NECE. Both subsidiaries with ex ante scope for agency problem (such as sales relationship) and those where parent has retained little equity despite substantial control over its subsidiaries illustrated poorer performance. On top of that, a great portion of listed subsidiaries were subsequently repurchased by their parent at a discount to the IPO price. The historical performance of publicly listed subsidiaries of parents is consistent with the case of NECE. In this case, NEC hold 20% of NECE total equity but have significant control over NECE operations and sales. This leads to expropriation of minority shareholders and lower market price following IPO. A FEASIBLE STRATEGY FOR PERRY TEAM There are three options for Perry team: to increase its stake in NECE with the expectation that NEC management will eventually share Perry’s vision to dispose the communications segment; to arrange for possible merger and acquisition for NECE; to exit the investment in NECE. To consider the action on the $150 million position in NECE, Ercil is likely to expect the maximum likelihood among these three scenarios. The first option is essentially the proposed increasing stake in NECE by Perry in the case. However, this move requires substantial amount of capital to fund the investment; the investment does not necessarily realize Perry’s objective to dispose NECE’s communications division as NEC will still be the largest shareholder in NECE. Since the investment in NECE in 2006, Perry team has been approaching NEC and asking for NECE business restructuring, the two parties have yet reached a consensus about the issue. It seems that NEC executives are unlikely to change their position in the future as well. The second option is to create a proxy fight for possible takeover or merger of NECE. The biggest impediment in this strategy is the same as the first strategy – the parent company NEC is holding a controlling amount of 70 percent stake its subsidiary, proxy fight might be too costly to execute. Furthermore, it is generally believed this strategy is far from reality because a hostile acquisition for NECE would significantly destroy the business relationship between the acquirer firm and the giant conglomerate, NEC. In addition, it is the time where Tokyo Stock Exchange is placing NECE on a watchlist for possible delisting due to its concentrated ownership structure. For Perry team, unwinding the 5 percent stake (or more if either option 1 or option 2 is adopted) in NECE would mean more difficult after delisting. Perry needs to find a potential buyer for the whole or portion its holdings in NECE. Exit strategy implies to realize the loss in this investment. Suppose Perry bought NECE stocks at an average price of  ¥3,200 per share, NECE share price is around  ¥2,900 per share in July 2007, which means Perry will record a loss of about 10 percent in its investment in NECE. As NECE has been recorded loss during Perry’s investment period, this small 10 percent loss may in turn support the immediate exit strategy, so as to minimize the loss because NECE’s business prospects are full of uncertainties. SCREENING GLOBAL ECONOMIC CONDITION Before making the final decision among the above three options, Ercil will definitely examine the current global economic condition. Generally speaking, if the global market sentiment is positive, it may worth for a riskier investment strategy to seek for higher return. On the contrary, higher return investment securities such as equities markets are usually too risky to attract capital inflow. As government bonds are deemed safe haven for investors, bonds yield curve can give some signal about the likelihood of future economic condition. Ercil examine the U.S. government bonds yield curves and TED spread at that time. It is observed that the T-bills have begun to deviate downward from T-bonds since Q1/2007 (Exhibit 5). Soon after July 2007, TED spread begins to rise (Exhibit 6). The declining short term T-bills yield suggests the investors become cautious and allocate their money in the bonds market. The increasing TED spread may infer the condition of liquidity shortage in the market, where lenders require higher returns for lending out their money. According to bonds yield equation: Forward Rate=Expected Discount Rate Tomorrow+Liquidity Premium As TED spread implies liquidity premium becomes dearer, the declining T-bills yield is attributed to the expected fall in future interest rate in the U.S. market. Simply saying, market anticipates a loosening monetary policy adopted by the Federal Reserve. RECOVER LOSS: JPY/USD EXCHANGE RATE INCREASE While the exit strategy might be a better move after looking at global market sentiment, Ercil will consider whether he should immediately convert the JPY to USD. As exchange rate movement is closely related to interest rate movement between two countries, it is observed that Japan’s interest rate is at 0.50% (Figure 1) while U.S. interest rate is around 5% (Exhibit 7). The huge differential between the two countries interest rate infers the potential gain from going against USD. In addition, given the interest rate parity condition in Forex market, the expected decrease in U.S. interest rate (as the declining yields curves suggest) will probably result in the appreciation of JPY against USD, as shown in Figure 8. In conclusion, if there could be a potential gain from holding JPY against USD, which can in turn recover some of the loss from Perry’s investment in NECE. By holding JPY, Ercil probably can go for his conservative investment strategy by buying fixed income securities, gold and other safer investment assets, or just holding cash. If JPY/USD does not perform as what Ercil predicted, he will only face one side risk (the continual increase in U.S. interest rate that further pumps up USD/JPY) but is protected from the continual decline of JPY (as Japan’s interest rate is near zero that means Bank of Japan is effectively powerless in pushing down its interest rate).