Rhode Island Biz Winners and Flops

Rhode Island Biz Winners and Flops

Can innovation in technology be Rhode Island's next industrial revolution? There is a sprinkling of hot spots emerging in Rhode Island that are disperse and somewhat unconventionally linked, but that is probably how the manufacturing boon of the 19th century started, too.

Some of the hot spots of innovation include: Betaspring’s ongoing effort to incubate dynamic startups; the Founder’s League and its effort to create a framework for collaboration and momentum; and Business Innovation Factory’s leadership conferences unveiling and driving innovation. These three – all in their own early stages of maturation -- create a much-needed culture of innovation for Rhode Island’s entrepreneurs. Betaspring (see below) got tapped as one of the top 16 incubators in the country.

WINNERS:

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Washington Trust’s parent company scored strong financials. Washington Trust Bancorp announced second quarter 2013 net income of $9.0 million, or 54 cents per diluted share. These results compare to first quarter of 2013 net income of $7.4 million, or 45 cents per diluted share, and second quarter of 2012 net income of $8.7 million, or 53 cents per diluted share. Up and up year-over-year and quarter over quarter. 

“Washington Trust posted another quarter of solid operating results, with a continuation of strong commercial loan growth and healthy mortgage banking activity,” stated Joseph J. MarcAurele, Chairman, President and CEO. “We continue to attract and build customer relationships across all business lines, reinforcing our position as Rhode Island’s Bank of Choice.”

Woonsocket’s Bonds – When you have little to celebrate, the little things matter. Fitch Ratings has taken the following action on Woonsocket’s outstanding general obligation (GO) bonds: $115 million GO bonds affirmed at 'B'. The Rating Outlook has been revised to Stable from Negative.

SBA and RI’s Own Betaspring – 16 business accelerators from across the country meet in Washington, D.C. last to pitch their programs as part of the inaugural Accelerator Demo Day--jointly organized by the U.S. Small Business Administration (SBA) and the Global Accelerator Network (GAN) in an effort to help foster high-growth entrepreneurship nationwide. Betaspring got high marks for launching more companies than any other accelerator in the country.

Stock Market and RI’s Leading Public Companies – CVS is trading at near its 52 week high, closing yesterday at 61.89.

• Textron’s stock has been on a bit of a rollercoaster the past year. Now, closing above $28 and up from a 52-week low of $22 a share.
• LIN TV Corp was on a bit of an upward ride, but flattened a bit at $16.09 a share. Had hit a 52-week high of $18.40.
• Washington Trust Bancorp (see above) is up over $31 a share. A nice improvement from the low $20’s in the past 12 months.
• Hasbro despite missing Wall Street targets form the quarter (see below), the toy, media and gaming company’s stock is up over $47 a share. A big improvement over the 52-week low of $34 a share.

General Treasurer Gina Raimondo hosted a Financial Empowerment Forum to strategize on the best ways "to improve and develop financial empowerment opportunities in urban communities." The Treasurer was joined by Richard Walker, senior vice president of public and community affairs of the Federal Reserve Bank of Boston. 

"My office is always looking for innovative ways to reach Rhode Islanders," Raimondo said. "By bringing community, government and financial service leaders together for a broad conversation about ways to strengthen financial empowerment outreach and programming, we are moving our entire state forward, one person at a time."

 General Treasurer deserves kudos for making some noise on the issue and bringing in the Boston Fed.

BankRI – Month in and month out, the bank features top artists with an installation at their branch in the Turk's Head Building. This month, business and art meet with paintings by Dan Talbot being presented.

FLOPS

Superman Building and the Mayor Taveras’ TV commercial – hard to take the Prov CVB’s new feel good TV spot seriously right at the moment. First, why it is running in Rhode Island market is bizarre. Tourism marketing usually focuses on out-of-state businesses and consumers urging them to come and visit and do business. If it is an attempt to make us feel better about where we live – that shifts from marketing to just good ole propaganda.

Second, if you have time to shoot a commercial than maybe you might want to try and develop a strategy for re-developing the Superman building. Ideally, develop a plan that does not include the developer’s request for $75 million in taxpayer (federal, state and city) bailout. If you let a city's largest building go dark, then you have to take responsibility.

Foreclosures – Pulitzer prize-winning reporter, Dean Starkman's report in GoLocal on the depth and impact of the foreclosure crisis, "Rhode Island’s Foreclosure Crisis Far From Over," is a bit of a dampener on the otherwise improving real estate market. It is a must read.

Hasbro – Bad news on earning, but potentially strong move for the future. Earning for the quarter missed Wall Street’s mark and 2nd Quarter income fell 16%.

The good news or strategic news, is the Pawtucket and Providence company did extend its agreement with Disney on the Marvel comics rights, lending the Rhode Island company the opportunity for more movie, gaming and toy strategies with cool superheroes.

Job Seekers – another good news/bad news report. One in four Americans (25%) believe now is a "good time" to find a quality job in the U.S., and improved from 17% in July 2012 and 10% in July 2011. The bad news is that folks that live in the East trail the other regions of the country. No breakout data offered by GALLUP’s report state by state.