[Posted 7:15 AM]
We”ve Only Just Begun
“These institutions have been asking us to trust them for a long
time, but what has been obscured is how much they have
changed.”
–PBS” “Frontline,” January 24, 2002
It”s too bad “Frontline,” the best news documentary program of
its kind, doesn”t have the same audience that “60 Minutes” has.
Then again, if you own shares in Corporate America it”s
probably just as well that few people saw Thursday”s installment.
In a word, the show was “devastating.”
The above quote relates to the age-old notion that the Street,
broadly defined, is always looking out for your best interests.
But after the Netscape initial public offering of 1995, the game
changed in ways that only Wall Streeters, or ex-Wall Streeters
like myself, can begin to understand. That is, until now.
Some of us warned last fall that Enron was huge, while many
such as the editorial board of the Wall Street Journal attempted to
pooh-pooh it. This latter attitude no longer flies. The suicide of
Enron vice chairman Clifford Baxter just adds to the
sensationalist aspect of the story, though it doesn”t need any
further embellishment, even if more is surely on the way.
George Will has described Enron as a “systemic crisis of
capitalism…larger than Teapot Dome.” [See my “Wall Street
History” archives for more on the Harding scandal.] This is not
an overstatement. The tentacles reach far into the executive
offices of many of Wall Street”s leading firms (and possibly the
corridors of Washington) and as the “little guy” becomes more
and more aware of the financial shenanigans that have been
going on, not just at Enron but at other big name corporations,
they”re going to increasingly worry about the safety of their
holdings. While some of what you will read in the future may
not involve illegal actions, other conflicts of interest will and
more than a handful should end up in jail. And the media will
play a larger-than-life role in it all, too, as it should in this
instance. Heck, careers will be made, so there are more than
enough incentives for them to dig deep.
Oh yeah, this is big. It will fuel a loss of confidence that will
help stymie any attempts the Street makes to rally, and, as I
wrote last week, if foreigners, who hold a giant share of U.S.
stocks and bonds, lose faith then one day we could be witness to
a rout.
—–
Federal Reserve Chairman Alan Greenspan appeared before
Congress and sought to soften his recent remark that there were
“significant risks” remaining in the U.S. economy. What he said
this week isn”t even worth quoting. Despite the Street”s bullish
take, basically it was, ”We could go up a while and then we could
go back down, because the recovery may be weak.” Well, that”s
kind of the opinion around here, and of experts like Morgan
Stanley”s Stephen Roach, Merrill”s Richard Bernstein, and J.P.
Morgan”s Doug Cliggott. Painting their respective opinions with
a broad brush, the feared “double dip.”
There is no doubt the economy is exhibiting signs of
improvement, as this week”s jobless claims and leading
economic indicator data reveal; with the former at a 6-month
low, while the latter had its sharpest rise in 6 years. But as the
plethora of earnings reports revealed this week, “guidance” for
2002 has been limited. Sure, many companies like EMC
exceeded already beaten down expectations by a penny or two
(whoop de damn do), but rare was the outfit that gave the “all
clear,” full speed ahead. In fact, while EMC was optimistic it
would return to profitability, I can”t think of one company who
has yet said the future is rosy.
Street Bytes
–For the week, both the Dow Jones and Nasdaq snapped two-
week losing streaks, barely, with the Dow finishing up 0.7% to
close at 9840, while Nasdaq tacked on a measly 0.4% to the 1937
level.
–U.S. Treasury Yields
6-mo. 1.82% 2-yr. 3.18% 10-yr. 5.07% 30-yr. 5.47%
Bonds got hammered as the market took Greenspan”s more
optimistic spin on the economy to mean that the Fed will not be
lowering the federal funds rate when it meets next Tuesday and
Wednesday. One should not infer, however, that this means rates
will soon be heading up. That”s doubtful and it”s hoped they
stand pat for a while. There is also a plethora of economic news
next week, much of which it can be assumed the Fed will have
had a sneak peak at by the time they convene Tuesday morning.
–Japan: The week started off with the country”s 2nd-largest
retailer, Daiei, seeking a bailout from its $17 billion in debt.
Now if you ask me, that”s a pretty hefty sum. Of course when it
comes to debt, Japan wrote the book, as a London Times piece so
aptly put it in discussing the fact that official government debt is
130% of GDP (it”s about 30% in the U.S.), “but when unfounded
pensions and government guarantees for troubled companies are
included, the figure rises to well above 300%. Not only that, but
the banking system holds an estimated $2 trillion worth of sour
or downright bad loans.”
This week Treasury Secretary O”Neill told the Japanese that it
must get its act together or it would take the whole region down.
But the government itself still refuses to acknowledge that there
is a banking “crisis.” Use of that definitive term seems beyond
leadership”s ability and, of course, there are reasons for this, like
the fear that by doing so it would cause a new collapse in share
prices, there would be a probable run on the banks, and the
politicians would be thrown onto the unemployment lines.
Meanwhile, the deflationary spiral continued, with the release of
data on December consumer prices revealing a decline for a 28th-
straight month. And, to add insult to injury, we have the story of
Snow Brand Milk Products. Back in 2000 this company”s
contaminated milk was responsible for the worst case of food
poisoning in Japanese history. This week the company admitted
it was repackaging imported beef as a domestic product in order
to gain certain subsidies. Kind of makes you want to throw up,
doesn”t it?
–Amazon.com: Well, Jeff Bezos had the last laugh (at least for
today), as Amazon pulled a penny in earnings out of its butt
(even by generally accepted accounting principles), so we quaff
an ale to this irritating, disingenuous CEO (we”re always looking
for an excuse to quaff anything around here, you know). One-
time events aside (like a positive currency translation for last
quarter), growth in Amazon”s core business is abysmal and it”s
highly touted deal to run other”s web sites represents less than
9% of total revenues. I”d say the jury is still out on this one…
send in more coffee and sandwiches.
–Valuation: Amazon”s stock got a huge boost on the earnings
news, as well as an upgrade by Moody”s, but I”m not going to
attempt to explain its new valuation this week.
As for others, here are some price/earnings multiples for selected
big name tech stocks, based on current forward-looking earnings
estimates and the respective fiscal years.
Microsoft – 34 based on 12/02
Intel – 50 on 12/02
Sun Micro – 49 on 6/03
Oracle – 33 on 5/03
Cisco – 46 on 7/03
Now I”ll be the first to admit these numbers are actually a far cry
from the days of 80-150 multiples, or higher, for even these blue
chips. As I noted last week, some rational thinking is returning
to the markets. But even these more reasonable expectations
assume that the economy grows at a solid pace, that capital
spending on all things tech returns, and that each one of them
(with the possible exception of Microsoft) meets what I would
consider to be aggressive earnings goals given the realities of
today”s world.
But I”m not going to bitch and moan when it comes to these
stocks and valuations if they hit their targets. After all, market
leaders deserve some sort of premium for their position in the
universe. I would just argue that when you look at the above,
where the heck is the upside? And if you think we are about to
embark on a new era of growth and aggressive spending on
technology, I”ll point to 74.4% capacity utilization (even less for
tech, specifically) and say, where are the profits going to come
from? Or in the case of an Intel, where is the pricing power? So
the debate will continue.
–Back to the Web, Bloomingdales.com is cutting back big time
and will shortly have a site simply for branding and marketing,
not transactions. On the heels of Federated”s announcement they
were shuttering their Fingerhut division, this is another ”thumbs
down” for e-tailing.
–Fiber optics leader (using the term loosely) JDS Uniphase is
reducing its work force to 11,000. It was 29,000 just one year
ago. That, to me, is the clearest example you can find of the tech
bubble.
–Energy: It”s about the jet stream, stupid. Now if you live in
Winnipeg, just about 50 miles from the U.S. border, you”re
freezing your butt off, but in most of the U.S. you”re golfing. I
know I”m looking forward to my weekend runs at the local track
this weekend, in temps above 50 degrees. But the price of crude
oil actually firmed this week (closing at $19.99), though natural
gas continues to hang out around $2. What is becoming clear,
however, is that IF the economy has any kind of sustainable
growth in its future, the existing inventory imbalances will
eventually be worn off, regardless of the weather, thanks to a
sharp reduction in drilling and refinery activity. Yes, simple
supply and demand. [As for my two remaining energy holdings,
they had a great week. Overall, for those of you keeping track at
home, I”m 25% energy, 5% Turkey (doing OK here), and 70%
cash / junk bonds.]
–Euro: Italy is the first E.U. nation to report higher inflation as
a result of the conversion. Merchants have been “rounding up.”
What this points out is just how difficult it is going to be for the
European Central Bank to micromanage the 12 countries now
using the euro. Actually, they simply can”t. No longer can a
government raise or lower interest rates, for example, to fight
inflation or stimulate the economy. Now it”s up to the ECB to
adopt a unified policy…and pray.
–I was looking through Friday”s Wall Street Journal and one
thing struck me; no advertisements! Not to pick on them, since
it”s simply symptomatic of the still ailing media industry, but ad
revenue for the Journal was down 42% in the fourth quarter (and
January is clearly off to a miserable start). With figures like this,
talk of a robust recovery is mostly bull.
–New Jersey, with the largest state budget deficit in the land, has
begun to lay off government workers, a precursor of things to
come nationwide.
–Two weeks ago I mused that there was no flu season. This
week medical company Respironics lowered its 2002 sales
outlook due to just that. Well, did you short the stock?
–Lots of talk this week on the wireless sector, with Nokia (37%
market share for handsets) being the only real player that had
somewhat optimistic comments. The fact is growth is nowhere
near as hot as anticipated. And without the expected expansion
of the markets, it is increasingly difficult for many of the
companies to meet their gigantic debt service.
–Speaking of wireless, Openwave, a maker of software for Net-
enabled phones, had some disappointing remarks following its
earnings release. But I got a kick out of a comment from an
analyst, as reported by Bloomberg. “Consumers haven”t rushed
out to buy Web-enabled mobile phones because the small keys
make it hard to surf the Internet and it”s slow to pull up info.”
Duhh! He could have added, you also don”t need it.
Last year (WIR 2/24/01), I related a conversation I had with
NBC”s Keith Miller while in Rome (I bumped into him). He had
just come from Finland where he was preparing a report on
Nokia. I asked him what he thought of all the new applications
for cellphones and he told me that when he tried to test them out,
he couldn”t even log on.
I also noted in that same column that while in Rome I saw
Openwave”s CEO reiterate that the mobile phone of the future
will be the “remote control for life and a great tool for people on
the go.” I then surmised, “Maybe so. But unless the average
American or European sees real value, the profit potential for this
sector of the telecom industry is limited.” Last January 30
Openwave”s stock was at $76. Today it”s $7. I wish I had had
the guts to short it, or others of its ilk.
–Tyco was supposed to call analysts together on Tuesday to
discuss its books, and, instead, decided to split the conglomerate
into 4 separate, publicly traded companies. As everyone else has
now noted, this was all part of the Enron effect. Tired of
defending its accounting practices, Tyco was in essence saying,
“Here, you take it.” After an initial pop on the news, the stock
fell back. Shareholders, on second thought, said, “No, here,
YOU take it.”
–Total asbestos claims, worldwide, could reach $200 billion.
And the Journal finally had an editorial labeled, “The Job-Eating
Asbestos Blob,” noting, as we have here for over a year now, that
Congress and the Bush administration have to act soon. But by
week”s end many of the affected stocks had rallied on hopes of
the creation of insurance pools, which would lower the burden,
perhaps, on individual corporations. Halliburton, for one, rose
40% as it insisted its future liabilities are manageable. Maybe
better days are ahead on this front. If not, then, as the Journal
added, it”s only a matter of time before the lawyers encircle G.E.
–U.S. financial services giant AIG postponed an acquisition of
Hyundai”s (South Korea) financial units over Enron-type fears of
hidden debt. Ah, the tentacles. You can hack them off, but
another will take its place.
–As if Wall Street didn”t have enough problems, Lehman broker
Frank Gruttadauria absconded with anywhere from $30 to $200
million in client assets. He is nowhere to be found. Check the
Caribbean.
–In announcing it was filing for Chapter 11, Kmart is shutting
350 of 2,100 stores, for starters. Make sure you check the
expiration dates on any food products.
–There are persistent rumors that Eastman Kodak will be
replaced in the Dow Jones average in 2002. I received a note
from a friend and former executive at Kodak, Fred S., who
defended Patricia Russo”s return to Lucent after about an 8-
month stint at EK. I just have a problem with the ethics of her
move. According to Fred, however, Kodak is definitely more
than a bit resistant to change.
International Affairs
Israel: For the first time in memory, even Arab leaders are
abandoning Yassir Arafat, with Egypt”s President Mubarak, for
example, not speaking to him in weeks. This bodes well for
those hoping to avoid a wider conflict, but it still just takes one
bullet to change everything. The attitude among some leaders
certainly was helped by President Bush”s providing evidence to
Saudi Arabia, Jordan and Egypt of Arafat”s complicity in the
foiled arms shipment from Iran.
For his part, Arafat, surrounded by Israeli tanks, pitifully said, “I
swear to God, I will see (a Palestinian state), whether as a martyr
or alive. Please God, give me the honor of becoming a martyr in
the fight for Jerusalem.” Funny how when he says these things
it”s never in English.
Meanwhile, Hamas declared “all-out war” and Hizbollah lobbed
rockets into Israel from its Syrian and Iranian supported safe
havens in Lebanon.
India / Pakistan: We had a good indication this week of how
important Secretary of State Colin Powell”s trip to the region was
as the Calcutta attack is exactly the sort of incident that could
have tipped the two sides into full-scale war. At first the Indian
government blamed extremists based in Pakistan, but later
admitted it wasn”t sure who was responsible (it may have been
gang-related). So despite daily casualties along the border in
Kashmir, a wider conflict may still be avoided. [I”m not going to
make a big deal of India”s test firing of a new intermediate-range
missile.]
As for President Musharraf, he wants the U.S. to at least keep an
air force presence in the region to combat any resurgence of
Afghanistan”s warlords. He also announced he would hold
elections for a national assembly in October, though the
president”s office will not be up for election.
China: One of my worst nightmares for what I do each week is to
receive breaking news right before I go to post this column.
Such was the case last weekend when I heard of the discovery of
listening devices on a plane the U.S. delivered to President Jiang
Zemin. My initial reaction was that I feared the timing of this
would cause a major rift. It wasn”t until after I posted, however,
that I read the discovery was first made by the Chinese last
October. That obviously changes the whole context of the story
(though I didn”t amend my piece despite finding this out ten
minutes later).
This whole episode is becoming more of an internal Chinese
affair, particularly in the lead up to the changes taking place at
the top of government this fall, and in this respect, at least 20
military officials have been arrested for corruption and lax
security concerning the plane.
At the same time, if the communists are to stay in power, while
growing the economy, they need good relations with their leading
trade partner, the U.S., thus for now they adopted a ”boys will be
boys” attitude. All this aside, bugging this particular plane could
have backfired if China was in one of its more belligerent moods,
one which can still emerge at any moment.
Regarding this last thought, though, the government did issue
some conciliatory remarks to Taiwan”s ruling party this week,
saying it welcomed talks with “responsible” members, i.e., those
not pressing for independence for Taiwan.
Iran / Iraq: Iran is clearly attempting to sabotage U.S. efforts in
Afghanistan, sending militia across the border to help out the
warlord in Herat. As for Iraq, William Kristol and Robert Kagan
had the following take in the Weekly Standard.
“At a more fundamental level, the failure to remove Saddam
would mean that, despite all that happened on September 11, we
as a nation are still unwilling to shoulder the responsibilities of
global leadership, even to protect ourselves. If we turn away
from the Iraq challenge…then we will have made a monumental
and fateful decision.”
Kristol and Kagan (like yours truly) believe President Bush is
committed, but what is becoming increasingly apparent is we are
quite a ways off from a conflict here. Just look at the fact that a
large part of our military resources will remain bogged down for
some time to come in Afghanistan before we can think about
turning over the mission to someone like the Turks. In the
meantime, Saddam merrily stockpiles his weapons of mass
destruction.
Indonesia: AP had a story that it is estimated 40% of $3.1 billion
pledged by foreign donors to aid the economy will end up in the
hands of corrupt officials. So, Mr. Businessman, would you like
to build a plant here? I didn”t think so. But you can”t just ignore
the area and there has been a slew of articles detailing the spread
of radical Islam here. The pieces, though, continue to miss a
major point, the fact that the busiest shipping lane, the Straits of
Malacca, cuts through the archipelago. It is still too easy for
terrorist attacks on shipping, especially if the militants have the
complicity of more radical elements in the Indonesian army.
Austria: Largely slipping under the radar this week was a crisis
that threatened to bring down the ruling coalition in Austria, a
coalition that contains Jorg Haider”s right-wing Freedom Party.
The issue that caused the uproar is a nuclear power plant in the
Czech Republic, 35 miles from the Austrian border (Austria is
nuke free, having dismantled its last plant years ago). Haider,
who has been in basically self-imposed exile since bursting on
the world scene over two years ago, seized on the opportunity to
create mischief and he got 15% of the Austrian people (a huge
amount) to sign a petition demanding that if the Czechs didn”t
shut the plant down, Austria would block its application for E.U.
membership in 2004.
Haider (virulently anti-immigrant…there”s my theme again) and
his cohorts threatened to force early elections (currently not
slated until 2003), but they finally agreed to await the results of
a Czech vote this summer before making their next move. What
it all means is that Haider is back, sooner than many believed,
and it”s an example of how those who believe in a truly unified
Europe some day are living in dreamland.
Mexico: President Fox”s approval rating is in free fall, from 79 to
48 percent. The opposition PRI (which ruled for over 50 years
prior to Fox) is upset the President accused them of massive
corruption regarding the state-owned oil company. Of course the
charges are true, Mexico being one of the most corrupt nations in
the world. Let”s hope that Fox has the guts to persevere, or we”ll
all suffer.
And lastly, Russia….
Years ago, when it was apparent Russian President Boris Yeltsin
was a total buffoon and the oligarchs were running amok, I
yearned for a general by the name of Alexander Lebed. Lebed
emerged as Russia”s only hero from the war in Afghanistan and
he was the kind of hard-ass figure I thought Russia needed to
begin to fight corruption and set things right. On some issues he
may have been tough for the U.S. to deal with had he replaced
Mr. Smirnoff (and for a while in the late 90s it appeared he just
might), but in interviews it was also clear he knew that
cooperation with the West was the only direction his country
could take if it was to recover from the mistakes of the previous
century.
Alas, Yeltsin was afraid of Lebed so he elevated little known
Vladimir Putin. Like many amateur Kremlinologists, I was wary of
Putin from day one, and still believe, for instance, he had at least
some foreknowledge of the 1999 apartment bombings in
Moscow.
But we don”t live in a perfect world, nor is there hope that in
your children”s lifetime they will ever see one, and Vladimir
Putin, I am now convinced, is the right leader for the times. He
has already proven to be a pragmatist and, through his experience
in the KGB, has knowledge of the West few other Russian
politicians possess.
But there are some who are now harping on renewed talk of
atrocities in Chechnya, as well as the shutdown of Moscow”s last
independent television station, as examples of an emerging
dictator. Just a few years ago, I said much of the same in this
space. But I”d like to think that on foreign policy I have an open
mind and I”m now a believer.
No doubt, change doesn”t take place overnight. Putin is
committed to cleaning up corruption, but the business interests
left over from the Yeltsin era are still powerful with influential
backing. As for the military, it will take a decade to turn it into
the disciplined force that would shy away from taking innocent
lives in a place like Chechnya. Over time, it will happen.
And when it comes to dealing with Russia, the U.S. and the West
have to be realistic. For every step backwards that Putin has
taken, he has taken 2 or 3 forward. Who would have thought, for
example, he would acquiesce on NATO expansion and who
would have thought he would be a staunch ally in the war on
terror? [Don”t underestimate the importance of our military”s
being able to utilize former Soviet air bases in both
Turkmenistan and Uzbekistan. Prior to 9/11 that was
unthinkable.]
Oh, there is far more work to be done in solidifying U.S.-Russian
relations. I have been harping on the idea that the United States
needs to convince Putin that cooperation with regards to Iraq
(which owes Russia at least $8 billion) and Iran is in his best
interest. Deals have to be cut. Shots of vodka slammed. Oil
rights exchanged.
President Bush recognizes the U.S. has an incredible opportunity
to reshape the world and he was astute enough to engage Putin
early on. It has already paid off in a big way. But Bush can”t
relax. Putin faces stiff pressure from inside the Kremlin on a
number of issues, particularly with regards to the nuclear force
and arms sales. I”m convinced the next 6 months are critical.
Continue to embrace Russia, President Bush, warts and all. We
need their help in this war, desperately. And besides, where do
you want to get your oil from in the future, Saudi Arabia or
Siberia? I choose the latter.
Random Musings
–Washington Post editorial on our success in capturing
terrorists:
“(While there are) welcome signs of progress; (there are also)
worrying indications of how much remains veiled… A lot of the
recent talk, about how 9/11 made America a stronger country and
all the rest, seems to assume that the worst is past. Such
complacency can only increase the danger.”
–So there was Alan Dershowitz, of all people, on “60 Minutes,”
sanctioning torture in certain circumstances. “You can”t pretend
we live in a pure world.”
–Some news outlets, who were just plain lazy, at mid-week were
still leading with the story that the world community was upset at
the treatment of the prisoners at Camp X-ray, this days after
British officials returned from Guantanamo, proclaiming
everything was fine. And, as Congressman John Mica noted
upon viewing the conditions himself there, “I think it”s too good
for the bastards.”
–I couldn”t agree with Imus more, after watching Democratic
National Committee chairman Terry McAuliffe I feel so dirty.
–I”ve said my piece, more than once, on the issue of profiling
post-9/11. Foreign affairs strategist Daniel Pipes had the
following comments in a New York Post op-ed column.
“Ignoring militant Islam today is like fighting World War II
without fighting fascism, or fighting the Cold War while wishing
away communism…The time has come for the Bush
administration to find the courage to acknowledge that the enemy
is…specifically staffed by the cadres of militant Islam…How
many lives must be unnecessarily lost before American leaders…
stand up to political correctness?”
–“Where has all the surplus gone?” –The Kingston Trio.
Thanks for stopping by, guys. According to the Congressional
Budget Office, the new projected 10-year surplus is $1.6 trillion
versus an estimate of $5.6 trillion a year ago. I”m not going to
make a big deal of this, yet, but as for all the work I did last year
on the Social Security issue, looks like I”ll have to resurrect it.
–Having watched Alan Keyes”s new show twice this week, I”ve
come to the conclusion that he”d make a good dictator. “You
want me to jump off that bridge? Yessir, Dr. Keyes.” I admire
the hell out of this guy, but I”d rather just have him give his
opinions for a half hour, instead of this hokey format.
–CNBC”s newsgirl started off a broadcast, “The big story of
the day around here, the return of John Walker…” I can”t be the
only one who simply doesn”t give a damn, especially since he
isn”t going to be executed. But wait, here”s John”s father. “John
loves America.” Barf.
–In an interview with Business Week, G.E.”s Jeffrey Immelt was
asked, “What keeps you up at night?”
“It”s always an integrity issue of some kind. With 300,000
people, you always worry that somebody doesn”t get it. We can
survive bad markets. What you can”t live through is anybody
who takes from the company or does something wrong in the
community.”
–My friend Jimbo worked with Arthur Andersen for 5 years and
told me the other day that the behavior in the Enron case was
“typical,” as it was the practice to “immediately publicly
humiliate the partner closest to the deal (as in the case of David
Duncan), thinking this would maintain their integrity.”
–A Pew research poll asked the question, how will Bill Clinton
eventually rank compared with other presidents?
12% – said he”d be one of the best (terror suspects…arrest them)
39% – better than most (idiots)
25% – not as good as most (decent, hardworking citizens)
19% – definitely worse than most (StocksandNews readers)
*And as always you can never figure out the other 5%. Must be
Moonies.
–Drought Watch: Up and down the East Coast, you”re telling me
the water situation is similar to that which we face in the New
York area. New York City”s reservoirs are “at a dangerously
low level.” Thus far it”s the driest winter in 72 years. [By the
way, New York consumes 1.3 billion gallons a day. The 3
reservoirs serving the city can hold 550 billion gallons, but
they”re only at around 40% of capacity. Ergo, it”s a problem.]
–Charles K. passed along a note concerning the scrap metal from
the Twin Towers, which when the salvage job is complete will
total somewhere between 250-400,000 tons. Much of this has
been contracted for by building interests in India and China, but
as Charles points out, some of it should be used to build a new
parliament building in Kabul.
–The London Times reported that counting sheep in an attempt
to fall asleep faster doesn”t work because you aren”t occupying
enough of your brain”s capacity “to keep the mind from
wandering into problems and concerns.” Scientists say that
instead you should think about something relaxing, like a beach.
No wonder I have trouble falling asleep. I have to stop musing
about North Korean missiles. Stage one…stage two…stage
three…
–Lastly, we honor Staff Sgt. Walter Cohee III and Sgt. Dwight
Morgan. Your service to this country will never be forgotten.
God bless the men and women
