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Lee Iacocca, Chrysler’s CEO in 1979, worked for $1 a year while his company paid back taxpayers $1.2 billion in loan guarantees. Edward Liddy, former CEO of Allstate (ALL) was paid $1 a year when he stepped in to run the crumbling AIG (AIG) as the request of Henry Paulson, who was Treasury Secretary at the time—September 2008.
Posts for Ticker ‘BBI’
The 15 CEOs Who Should Be Paid $1 A Year
The Hardest Working Brands for 2009: The Year Of The Dog
A look at the “hardest working” major brands for 2009 shows that a number of them belong to companies which have done poorly and, in at least one case, may file Chapter 11. This is due to the definition of a hard-working brand, which is based on the ratio of its value to the market capitalization of its parent company.
CoreBrand reviewed the top 100 hardest working brands for the final quarter of 2009. Their researchers point out that “the food industry moves to the top of the list, reflecting the economy and the general improvement of consumer staples businesses. Hershey’s (HSY), Campbell Soup (CPB), and Kellogg (K) make it into the top 5.” On the other hand “troubled industries like financial services and auto manufacturers have seen dramatic decline.”
Harley-Davidson (HOG) is in the top 10 among the hardest working brands. Before rumors of a buy-out, the motorcycle firm’s stock languished at $25, down from $42 less than two years ago. Harley’s stock trades for a low 1.2 times sales. Also near the top of the list is crippled book retailer Barnes & Noble (BKS), which trades for .3 times sales. Blockbuster (BBI) is in the top 25, with a ratio of .1x sales. The firm said in its 10-K that it is at risk for filing Chapter 11.
Blockbuster May Run Out Of DVDs
Blockbuster (BBI), the world’s largest movie rental chain, has all sorts of problems. It is nearly insolvent. Its model of renting DVDs from stores has been largely bypassed by online operations such as NetFlix (NFLX). VOD services from cable companies and internet providers from Amazon (AMZN) to Apple (AAPL) make is easy for the consumer to get films and TV shows without leaving their living rooms.
Blockbuster is trying to avoid bankruptcy as it struggles with its debt load and the rental costs for stores that it does not need due to falling demand, but it has warned it may have no other choice. Read More
Media Digest 3/17/2010 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: China took a hard position on the value of the yuan despite US pressure.
Reuters: Google’s (GOOG) ad partners in China expressed concerns about its plans.
Reuters: If banking laws change, Goldman Sachs (GS) may be unable to cope.
Reuters: China’s demand for natural gas may surprise global markets. Read More
Today’s Best Market Rumors (3/15/2010)
Updated throughout the day.
AIG (AIG) will hold back $21 million from employee bonuses (CNBC)
Google (GOOG) will shut its Google.cn site in China (various)
Arrow Energy will reject a $3 billion takeover bid from Royal Dutch Shell and PetroChina (PTR). (Australian Financial Review)
T Rowe Price (TROW) is in talks to buy a stake in Chinese financial firm Citic. (Reuters)
Barclays Capital is considering the partnership model used by Goldman Sachs and Merrill Lynch years ago (FT)
Neuberger Berman will list a distressed debt fund on the London exchange. (FT)
Bank of America (BAC) will seek government approval to expand its operations in China (WSJ)
Blockbuster (BBI) is trying to find buyers for its stores in Europe (The Times)
Douglas A. McIntyre
On Nasdaq Peak Holiday, Shorts Exit Tech And Junk Stocks
On the tenth anniversary of the tech bubble of 2000, short sellers aggressively dropped their bets against hardware, software and internet companies. Figures are from February 28.
The short interest in Apple (AAPL) fell 15% to 17.3 million. Shares short in Microsoft (MSFT) were down 5% to 53 million. The short interest in Amazon (AMZN) fell 10% to 10.4 million. Shares short in Micron (MU) were down 17% to 51.5 million. Shares short in Cisco (CSCO) dropped 8% to 48.1 million. The short interest in Symantec (SYMC) dropped 14% to 23.9 million. Shares short in RF Micro (RFMD) dropped 14% to 20.7 million shares. Read More
Media Digest 2/25/2010 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: Coca-Cola (KO) is close to buying its largest bottler.
Reuters: Microsoft (NASAQ:MSFT) won court approve to shut down computers that spread spam and viruses.
Reuters: Akio Toyoda (TM) apologized to Congress from problems with Toyotas.
Reuters: The Senate passed a $15 billion jobs package. Read More
Movie Rental Risk… Wal-Mart & Vudu (WMT, NFLX, BBI, CSTR, TIVO)
Deciding who wins and who loses in movie rentals has proven to be a difficult task other than stating the obvious…. Online distribution and delivery distribution have major benefits over being a brick and mortar movie rental destination. But the war of movie deliveries for rentals or ownership is about to get closer to home regardless of whether this is movie rental via the mail or via download. Wal-Mart Stores Inc. (NYSE: WMT) is said to be buying Vudu. This now has put some pressure on shares of Netflix, Inc. (NASDAQ: NFLX) and other movie distribution outlets.
The New York Times has reported that Wal-Mart is acquiring Vudu and provided some details. We have some thoughts here of our own as well. After having personally used most movie products and after being a Vudu customer myself, there are some simple winners and losers here.
The 100 Least Powerful People Under 100
“Ashes to ashes , dust to dust”…The Book of Common Prayer
“Remember Caesar, thou art mortal” – William Shakespeare
The media creates and distributes hundreds of lists of the most powerful, the richest, and the most visible people in the world, along with the most important, highest paid, and best performing CEOs, most influential political figures and most famous celebrities. Recently those lists have included chronicles of top women executives, most promising executives under 40, and the wealthiest athletes.
Many companies and people on these most powerful and most respected lists don’t stay there for long. Toyota was on almost all the corporate best and most valuable brand lists. Just three years ago, Bank of America CEO, Ken Lewis, was one of the most admired financial executives in the world.
Many of the people who hold important titles and appear in the press regularly are not powerful at all. These people often have very little influence themselves. The organizations that they work for are often ineffectual as well. The world is filled with figureheads and frauds.
24/7 Wall St. looked across the worlds of celebrity, wealth, fame, corporate power, national and international politics, and religion to find a number of people who are much less important than they seem to be. This list is the result of the research about the large population of pretenders and the universe of people who hold the offices, run the companies, and walk the red carpets, but have little if any control over anything in particular.
To qualify for this 24/7 Wall St. list, a person had to be well known, at least in his or her own field or country, had to be under 100 years of age, and percieved to hold a position of power or influence well beyond the reality of his station.
Here is the 24/7 Wall St. 2010 list of the “100 Least Powerful People Under 100 Years Old”
Blockbuster Pursues Its Last Chance
Blockbuster (NYSE:BBI) has failed in the online DVD rental business and movie internet streaming business. The traffic to its thousands of stores is dropping rapidly and its cannot close locations fast enough. Long-term leases make the process of shuttering stores complicated
Blockbuster has a new rival. RedBox, which has over 20,000 kiosks set up to allow customers to rent DVDs for $1, is taking business from Blockbuster stores.
Blockbuster is expanding its own kiosk business with help from NCR (NYSE:NCR) which builds cash machines. NCR is about to announce that it will buy DVD kiosk operator DVDPlay Inc which has 1,300 kiosks, according to The Wall Street Journal. The move should allow NCR to have almost 4,000 kiosk locations by the end of the year. The Blockbuster brand may help increase customer traffic to these points of sale. That is clearly the gamble that NCR is taking. Read More
Media Digest 12/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: Dubai said the market’s perceptions of its problems is “softening.”
Reuters: Citigroup (NYSE:C) could sell $20 billion in shares soon.
Reuters: Hershey (NYSE:HSY) is near a decision on Cadbury (NYSE:CBY).
Reuters: GM named a new head of Chevrolet. Read More
The Ten Brands That Will Disappear In 2010
24/7 Wall St. has prepared its list of the ten brands that will disappear in 2010. This list is based on a review of each firm’s financial situation and other operating data, the current and ongoing value of its brand, and whether the company that controls that brand can sell its assets.
This year a number of famous brands have closed or their parents have announced that they will be shut down shortly. This includes decades-old magazines like Gourmet and famous car brands like Pontiac. The recession took whatever economic value these brands had left and destroyed it.
The brands on the 24/7 list for 2010 include companies that have been in trouble for years. Some have been in slow decline and others were irreparably damaged by the credit crisis. Most of these companies will be bought and the rest will simply be closed.
The Renaissance Of E-Commerce (M)(JWN)(AMZN)(WMT)(TGT)
There are bits of research that say holiday e-commerce sales rose in the double digits over the Thanksgiving weekend and did even better on Monday. E-commerce sales have risen as a total percentage of retail revenue since 1995, the year Amazon.com (NASDAQ:AMZN) was founded. Online sales are about 10% of total retail sales at this point. The rumors that growth was dying in the e-commerce industry began to circulate late last year when it became clear that both internet and bricks-and-mortar holiday sales numbers would drop from 2007. Online holiday buying activity had to keep a better pace than store-based sales for the theory of its bright future to hold. The internet has not changed anything meaningful about the American consumer’s basic buying habits otherwise.
Media Digest 12/1/2009 Reuters, WSJ, NY Times, FT, Bloomberg
Reuters: A $25 billion debt plan for Dubai World helped calm markets.
Reuters: GE (NASDAQ:GE) and Vivendi agreed to value NBCU at a price which gives the French company $5.8 billion for its 20% share.
Reuters: The unemployed face higher healthcare premiums.
Reuters: White House financial adviser Summers said unemployment will stay high. Read More
Media Digest 11/13/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: China’s economy may be hurt as its stimulus ends.
Reuters: Warren Buffett says the financial panic is over.
Reuters: Former bankers are considering buying failed banks.
Reuters: The SEC is expected to go ahead with the Bear Stearns case. Read More
Netflix Battleground Status Continues (NFLX, BBI, CSTR)
Netflix Inc. (NASDAQ: NFLX) is a true battleground stock. It has a loyal customer base, a cult-like stock following, and trades with a very high short interest. Shares are screaming today and have effectively hit not just 52-week highs… all-time highs. The earnings report showed a 48% profit rise and it raised its annual subscriber and financial metrics. The company’s profit rose by almost 50% to $30.1 million, or $0.52 EPS. But on a non-GAAP basis those earnings were $0.55 EPS. Revenues rose by about 24% from a year ago to $423.1 million. Thomson Reuters consensus data was $0.49 EPS and $419.9 million in revenues.
Read More
“Train Wreck Zelnick” May Be Last Of Bidders For BusinessWeek
Thomson Reuters CEO Tom Glocer may want to reconsider being part of an effort to buy BusinessWeek. A report fromPaidContent says “the multimedia business media giant is working as a strategic partner in the ZelnickMedia bid for BusinessWeek.” Rumors are that Bloomberg is also a bidder.
Whatever the track record of Zelnick Media may be with private transactions, Zelnick has been part of the management and/or boards at two public companies which has become disasters for shareholders. Read More
Today’s Best Market Rumors (10/7/2009) (NOK)(AAPL)(JPM)(GE)(WYNN)
Updated throughout the day.
Updated 2:44 Dell Inc. (NYSE: DELL) will launch a branded Android smartphone thru AT&T Inc. (NYSE: T) and possibly other carriers next year. Source today is from WSJ, but ask this… How many phone and consumer electronics announcements have been rumored on Dell?
Updated 1.36 PM EST: Pimco left the bondholders steering committee at CIT (NYSE:CIT) last month (CNBC)
Updated 12.45 PM: Polycom (NSADAQ:PLCM) could be taken over by Hewlett-Packard (NYSE:HPQ) or Dell (NASDAQ:DELL). Interdigital (NASDAQ: IDCC) could be bought by Nokia (NYSE:NOK) and ValueClick (NASDAQ:VCLK) could be taken over by any one of a number of companies. (Barron’s)
Updated 12.41 PM: GM head of American sales leaves amid talk that car company CFO may be next (CNNMoney)
Update 10.50 AM EST: Congress may pass a bill which will require that public companies split the roles of chairman and CEO. (MarketWatch)
Thomson Reuters (NYSE:TRI) may be involved in the bidding for McGraw-Hill’s (NYSE:MHP) BusinessWeek working jointly with Zelnick Media. Strauss Zelnick is on the boards of Blockbuster (NYSE:BBI) and Take-Two Interactive (NASDAQ:TTWO) (PaidContent).
Citigroup (NYSE:C) may sell it Philbro unit which is paying its chief $100 million this year. (CNBC)
Bank of America (NYSE:BAC) has narrowed its list of CEOs to two people (WSJ).
Foxconn has a deal to make 300,000 to 400,000 Apple (NASDAQ:AAPL) tablet PCs to ship in Q1 (DigiTimes)
Collins Stewart believes that Google (NASDAQ:GOOG) and Yahoo! (NASDAQ:YHOO) are on the lookout for acquisitions. (The Deal).
Share sales by Steve Wynn, head of Wynn (NASDAQ:WYNN), and his COO may be” a canary in the coal mine to other investors to take some profits on the gains in this sector since the March lows.” That would include MGM (NYSE:MGM) and Las Vegas Sands (NYSE:LVS) (TheStreet.com)
Private equity firms Bain Capital and THL Partners are asking banks that supported their buy-out of Clear Channel Communications to help restructure the firm’s debt. Those banks include Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), and Morgan Stanley (NYSE:MS). (NYPost)
News Corp (NYSE:NWS) CEO Rupert Murdoch is in Japan and South Korea and may be discussing partnerships to build a rival product to the Amazon (NASDAQ:AMZN) Kindle. (Reuters)
Vivendi will discuss selling its 20% stake in GE’s (NYSE:GE) NBCU at its October 19 board meeting to allow a transaction with Comcast (NADSAQ:CMCSA) which would involve the cable company getting control of media firm. (BusinessWeek)
JPMorgan (NYSE:JPM) executive Heidi Miller could be in the running for the CEO job at Bank of America. (The Big Money)
Douglas A. McIntyre
Short Sellers Flee Tech, Hit Weak Balance Sheets (INTC)(DELL)
Short sellers posted a mixed record on big banks. Short interest in Citigroup (C) plunged by 73% to 177.5 million shares. The short interest in Bank of America (BAC) was down 18% to 82.2 million. And, shares short in Morgan Stanley (MS) dropped 10% to 39 million.
Shares short in Fannie Mae (FNM) were up a fraction to 188.7 million. The short interest in Well Fargo (WFC) rose 5% to 90.5 million.
Companies with weak earnings prospects and poor balance sheet were hit particularly hard for the period that ended September 15. Shares sold short in Sprint (S) were up 18% to 88.6 million. Shares sold short in Alcatel-Lucent (ALU) rose 37% to 39.4 million. Short interest in Vonage (VG) was up 135% to 10.2 million. Shares short in Blockbuster (BBI) were up 28% to 25.6 million. Read More
Media Digest 9/16/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: Obama’s move on trade with China makes good on a promise to labor.
Reuters: Uninsured Americans hope healthcare reform will bring them coverage.
Reuters: Adobe (ADBE) will buy Omniture for $1.8 billion.
Reuters: Citigroup (C) is seeing demand from institutional investors. Read More
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Today’s top tickerspy Indexes Regional Bank Sto... +1.4% Hospital Stocks +1.1% Rubber and Plasti... +1.0% Casino Stocks +1.0% Hotel Stocks +0.9% 
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- Philippines Needs To Spend $87 Billion On Infrastructure Over 15 Years To Spur Growth
- Moody's To Visit S Korea March 24-26 For Annual Ratings Review
- President Obama Hails Passage of Health-Care Overhaul Bill
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- Thailand Says Military Guarding Key Bangkok Sites To Be Armed
- Hong Kong To Sign Tax Treaty With Netherlands; More Agreements Expected
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- paidContent - Skype Co-Founders Raise $165 Million For New Fund—Short Of Initial Goal
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- paidContent - Wireless Carriers Bicker Over Size Of Spectrum Holdings
- paidContent - FCC May Open Public-Safety Spectrum Block For Commercial Purposes
- paidContent - Right On Schedule, MediaNews' Parent Exits Chapter 11
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