Tuesday, October 29, 2013
Thursday, October 24, 2013
Apple Hires a Fashionista to Add Some Bling to Its Online & Instore Retail
Kathy Gordon, Ian Sherr and Joann S. Lublin report Apple is "hiring Angela Ahrendts, the chief executive behind a seven-year growth spurt at British luxury-goods company Burberry Group Inc." They report Apple's 365 stores generate average sales of over $50 million a store.
Helen Thomas interviews Kathy Gordon, the Journal's Retail Reporter, about why:
To understand Ahrendts uses media, consider this YouTube video based on Burberry's work with Salesforce.com:
Helen Thomas interviews Kathy Gordon, the Journal's Retail Reporter, about why:
To understand Ahrendts uses media, consider this YouTube video based on Burberry's work with Salesforce.com:
Wednesday, October 09, 2013
Dividends: To Pay or Not To Pay, That Is the Question.
Dividends do not matter
Oct 9, 2013 : Low bond yields have led investors to place more importance on stock dividends. John Authers argues that these are special circumstances, and that there is still some truth in the Miller & Modigliani theorem – which implies dividends do not matter. He is referring to the M&M Dividend Irrelevance, as opposed to the M&M capital structure irrelevance:Tuesday, October 08, 2013
Airbus Cracks the Japanese Market
Airbus wins first ever Japan Airlines order worth $9 billion.
Three U.S. based scientists win Nobel Prize for Medicine.
Nielsen launches TV Twitter ratings.
White diamond fetches record $30.6 million at auction. Joanne Po reports.
Sunday, October 06, 2013
Is the Dow Fatally Flawed? Maybr Not.
Defending the anachronistic Dow
Sep 23, 2013 : The Dow Jones Industrial Average is the world’s longest running stock index. Long View columnist John Authers argues it is on its last legs and David Blitzer, chairman of the index committee at S&P Dow Jones, tells him why it might still be useful:Is it Time to Buy COCOs?
Is there value in European banks?
Oct 1, 2013 : Are European banks becoming attractive again? Philippe Bodereau, managing director at Pimco, explains to John Authers where to avoid, and suggests that the UK and Switzerland may offer the most promising returns.Tuesday, September 10, 2013
When Will They Ever Learn? II
“The Big Picture” blogger and Fusion IQ CEO Barry Ritholtz looks back at the events of 2008 and makes the case for the true legacy of the financial collapse and ask, "Did Anyone Learn From the Financial Crisis?"
How Bad Is It to Get Kicked Out of the Dow?
The
Dow Jones Industrial Average is just that: an average. It is not a stock price index. Yet it is the oldest stock market indicator in use today and as the flagship indicator of Dow Jones (Wall Street Journal, Barron's, Market Watch, etc.) it gets far more notoriety than any of the stock price indices. When the Dow changes, it is big news.
The powers that be are kicking Alcoa ($14-15), Hewlett-Packert (c.$22), and Bank of America (c. $8) out and adding Goldman Sachs ($165), Nike ($66) and Visa ($184). The stock prices in parentheses tell the story. The Dow is implicitly weighted by stock price. Companies with low stock prices have little effect on the Average, while companies with higher prices have a bigger impact. It has nothing to do with their market capitalization, sales, or assets.
Look at the evictees and the newcomers' betas: Alcoa (1.89), Hewlett-Packert (1.64), and Bank of America (2.07) Goldman Sachs (1.85), Nike (.61) and Visa (.45). The changes appear to reduce the Dow's systematic risk.
MoneyBeat's Paul Vigna interviews David Blitzer, managing director and chairman of the Index Committee S&P Dow Jones Indices, to get the scoop:
The powers that be are kicking Alcoa ($14-15), Hewlett-Packert (c.$22), and Bank of America (c. $8) out and adding Goldman Sachs ($165), Nike ($66) and Visa ($184). The stock prices in parentheses tell the story. The Dow is implicitly weighted by stock price. Companies with low stock prices have little effect on the Average, while companies with higher prices have a bigger impact. It has nothing to do with their market capitalization, sales, or assets.
Look at the evictees and the newcomers' betas: Alcoa (1.89), Hewlett-Packert (1.64), and Bank of America (2.07) Goldman Sachs (1.85), Nike (.61) and Visa (.45). The changes appear to reduce the Dow's systematic risk.
MoneyBeat's Paul Vigna interviews David Blitzer, managing director and chairman of the Index Committee S&P Dow Jones Indices, to get the scoop:
Is Koch overpaying for Molex?
Yesterday's (9/9) Wall Street Journal proclaimed that Koch Industries (a "conglomerate known for unglamorous industries") is buying Molex. Koch, privately held, is one of Wichita's largest employers and one of the two largest privately held U.S. companies. Cargill is the other.
The current Merger and Acquisition market is pricey, if not frothy. According to the Journal, Koch is paying 38.50 a share or $7.2 billion. Given the scanty numbers in the article, that seems rich: about twice sales, thirty times earnings, and 1.78 times enterprise value.
Nevertheless, Koch only buys companies when it thinks its Market Based Management philosophy can produce positive results. It has found that it has a core competence in managing process business. Still this is an industry with powerful customers including Apple (14% of Molex's revenues) and the automotive industry. They do not roll over for suppliers.
James Haggerty and Bob Tita report in the Wall Street Journal, "Molex, based in Lisle, Ill., makes products including connectors, sockets, antennas and switches used in cars, computers, cellphones and factory equipment, among other things."
MOLEX is traded on the NASDAQ. You can find their SEC filings online.
The current Merger and Acquisition market is pricey, if not frothy. According to the Journal, Koch is paying 38.50 a share or $7.2 billion. Given the scanty numbers in the article, that seems rich: about twice sales, thirty times earnings, and 1.78 times enterprise value.
Nevertheless, Koch only buys companies when it thinks its Market Based Management philosophy can produce positive results. It has found that it has a core competence in managing process business. Still this is an industry with powerful customers including Apple (14% of Molex's revenues) and the automotive industry. They do not roll over for suppliers.
James Haggerty and Bob Tita report in the Wall Street Journal, "Molex, based in Lisle, Ill., makes products including connectors, sockets, antennas and switches used in cars, computers, cellphones and factory equipment, among other things."
MOLEX is traded on the NASDAQ. You can find their SEC filings online.
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