Monday, March 12, 2007
New Century halted
Credit cut off, bankruptcy imminent. Please tell me you could see this coming from a mile away...
Sunday, March 11, 2007
Interesting News on HAL
From the NYT:
HOUSTON, March 11 — Halliburton, the big energy services company, said on Sunday that it would open a corporate headquarters in the United Arab Emirates city of Dubai and move its chairman and chief executive, David J. Lesar, there.
The company will maintain its existing corporate office here as well as its legal incorporation in the United States, meaning that it will still be subject to domestic laws and regulations.
Although the announcement of the new Dubai arrangement took many by surprise, Halliburton said that the move was part of a strategy announced in mid-2006 to concentrate its efforts in the Middle East and surrounding areas, where state-owned oil companies represent a growing source of business.
Halliburton, which was led by Vice President Dick Cheney from 1995 to 2000, is currently in the process of spinning off KBR, its military contracting unit, to focus on its business of drilling wells and maintaining fields for oil companies. The company did not say what implications the Dubai development might have for its military contracts. Lea Anne McBride, a spokeswoman for Mr. Cheney, referred questions about the company’s plans to Halliburton.
The Dubai announcement, which Halliburton made at a regional energy conference in Bahrain, comes at a time when the company is being investigated by the Justice Department and the Securities and Exchange Commission over allegations of improper dealings in Iraq, Kuwait and Nigeria. Halliburton has also agreed to pay billions of dollars in settlements in asbestos litigation.
Halliburton would not elaborate on Sunday on what the shift of its top executive might mean for some of the issues it faces. The move seemed to raise questions about whether Halliburton might gain tax advantages or other benefits.
A Halliburton spokeswoman, Melissa Norcross, referred inquiries to the company’s press release, saying in an e-mail message, “The C.E.O.’s job is global by nature. He will continue to remain attentive to our shareholders, clients and employees around the world.”
Ms. Norcross added, “As companies usually refer to the C.E.O.’s office as the corporate headquarters, that’s what we are doing. Basing the C.E.O. in Dubai to focus on our Eastern Hemisphere growth makes good business sense, as it is the center of our Eastern Hemisphere operations and a global business hub. We will maintain our company’s legal registration in the United States and we are not leaving Houston.”
The mayor of Houston, Bill White, was notified by telephone shortly before Halliburton made the announcement, according to a spokesman, Frank Michel.
“We don’t expect it will have a big impact on employment here,” Mr. Michel said. “We point out that Houston continues to be the center for the international oil and gas business.”
“Having a corporate headquarters is different than it used to be,” Mr. Michel added. “Executives spend a lot more time on airplanes, and we understand that.” He noted that Schlumberger, one of Halliburton’s top competitors, maintains offices in both Paris and Houston.
On the face of it, the decision to move Mr. Lesar abroad appears to point mainly to how the epicenters of the energy business are moving from the mature fields of North America to the younger fields of the Middle East and Africa. It also underscores the arrival of Dubai as a center for energy deal-making and commerce, a role once solidly filled by Houston.
“My office will be in Dubai, and I will run our entire worldwide operations from that office,” said Mr. Lesar, who holds the titles of chairman, chief executive and president, at a conference in Manama, Bahrain’s capital. “The Eastern Hemisphere is a market that is more heavily weighted toward oil exploration and production opportunities. Growing our business here will bring more balance to Halliburton’s overall portfolio.”
Halliburton is incorporated in Delaware and its stock is traded on the New York Stock Exchange. Reuters reported that Mr. Lesar said Halliburton would like to list its shares on an exchange in the Middle East, which it could do while maintaining its listing in New York.
Halliburton reported a record $2.3 billion in profit last year and continues to be the dominant oil-field service company in North America, where it generates 60 percent of its operating income.
Over the last several years, an increasing amount of Halliburton’s business has shifted to places like Kuwait, Russia, Libya, Australia, Vietnam, and west and central Africa. And, mirroring trends in the energy business, its customer base is shifting from traditional Western oil companies to national oil companies in developing countries.
Some analysts who follow Halliburton said they did not think the relocation of Mr. Lesar reflected anything more than changes in the energy business.
“They are moving to the center of the Eurasian-African hemisphere and that’s where the bulk of the work is going to be in the future,” said Barbara Struck, an analyst with Energy Intelligence Group, a research firm.
She said she doubted the company was trying to evade laws in the United States. Halliburton has suffered several years of negative headlines, many having to do with its administration of a $16 billion deal to support American military operations in Iraq. Halliburton’s KBR subsidiary has been the subject of a number of investigations for mishandling billions of dollars of housing, food and fuel contracts for American troops and government officials operating in Iraq. Halliburton began spinning off KBR last year.
During Mr. Cheney’s tenure as chief executive, Halliburton bought a company that saddled it with asbestos claims. The company has agreed to pay nearly $5 billion in settlements.
Despite its recent problems, Halliburton posted record revenue, net income and margins last year.
Perhaps the biggest winner could be Dubai itself, one of seven emirates in the United Arab Emirates confederation, which has sought to establish itself as a regional commercial center on par with Singapore and Hong Kong. Most multinational companies, including Halliburton, have made Dubai a regional hub for their Middle Eastern business over the last decade.
HOUSTON, March 11 — Halliburton, the big energy services company, said on Sunday that it would open a corporate headquarters in the United Arab Emirates city of Dubai and move its chairman and chief executive, David J. Lesar, there.
The company will maintain its existing corporate office here as well as its legal incorporation in the United States, meaning that it will still be subject to domestic laws and regulations.
Although the announcement of the new Dubai arrangement took many by surprise, Halliburton said that the move was part of a strategy announced in mid-2006 to concentrate its efforts in the Middle East and surrounding areas, where state-owned oil companies represent a growing source of business.
Halliburton, which was led by Vice President Dick Cheney from 1995 to 2000, is currently in the process of spinning off KBR, its military contracting unit, to focus on its business of drilling wells and maintaining fields for oil companies. The company did not say what implications the Dubai development might have for its military contracts. Lea Anne McBride, a spokeswoman for Mr. Cheney, referred questions about the company’s plans to Halliburton.
The Dubai announcement, which Halliburton made at a regional energy conference in Bahrain, comes at a time when the company is being investigated by the Justice Department and the Securities and Exchange Commission over allegations of improper dealings in Iraq, Kuwait and Nigeria. Halliburton has also agreed to pay billions of dollars in settlements in asbestos litigation.
Halliburton would not elaborate on Sunday on what the shift of its top executive might mean for some of the issues it faces. The move seemed to raise questions about whether Halliburton might gain tax advantages or other benefits.
A Halliburton spokeswoman, Melissa Norcross, referred inquiries to the company’s press release, saying in an e-mail message, “The C.E.O.’s job is global by nature. He will continue to remain attentive to our shareholders, clients and employees around the world.”
Ms. Norcross added, “As companies usually refer to the C.E.O.’s office as the corporate headquarters, that’s what we are doing. Basing the C.E.O. in Dubai to focus on our Eastern Hemisphere growth makes good business sense, as it is the center of our Eastern Hemisphere operations and a global business hub. We will maintain our company’s legal registration in the United States and we are not leaving Houston.”
The mayor of Houston, Bill White, was notified by telephone shortly before Halliburton made the announcement, according to a spokesman, Frank Michel.
“We don’t expect it will have a big impact on employment here,” Mr. Michel said. “We point out that Houston continues to be the center for the international oil and gas business.”
“Having a corporate headquarters is different than it used to be,” Mr. Michel added. “Executives spend a lot more time on airplanes, and we understand that.” He noted that Schlumberger, one of Halliburton’s top competitors, maintains offices in both Paris and Houston.
On the face of it, the decision to move Mr. Lesar abroad appears to point mainly to how the epicenters of the energy business are moving from the mature fields of North America to the younger fields of the Middle East and Africa. It also underscores the arrival of Dubai as a center for energy deal-making and commerce, a role once solidly filled by Houston.
“My office will be in Dubai, and I will run our entire worldwide operations from that office,” said Mr. Lesar, who holds the titles of chairman, chief executive and president, at a conference in Manama, Bahrain’s capital. “The Eastern Hemisphere is a market that is more heavily weighted toward oil exploration and production opportunities. Growing our business here will bring more balance to Halliburton’s overall portfolio.”
Halliburton is incorporated in Delaware and its stock is traded on the New York Stock Exchange. Reuters reported that Mr. Lesar said Halliburton would like to list its shares on an exchange in the Middle East, which it could do while maintaining its listing in New York.
Halliburton reported a record $2.3 billion in profit last year and continues to be the dominant oil-field service company in North America, where it generates 60 percent of its operating income.
Over the last several years, an increasing amount of Halliburton’s business has shifted to places like Kuwait, Russia, Libya, Australia, Vietnam, and west and central Africa. And, mirroring trends in the energy business, its customer base is shifting from traditional Western oil companies to national oil companies in developing countries.
Some analysts who follow Halliburton said they did not think the relocation of Mr. Lesar reflected anything more than changes in the energy business.
“They are moving to the center of the Eurasian-African hemisphere and that’s where the bulk of the work is going to be in the future,” said Barbara Struck, an analyst with Energy Intelligence Group, a research firm.
She said she doubted the company was trying to evade laws in the United States. Halliburton has suffered several years of negative headlines, many having to do with its administration of a $16 billion deal to support American military operations in Iraq. Halliburton’s KBR subsidiary has been the subject of a number of investigations for mishandling billions of dollars of housing, food and fuel contracts for American troops and government officials operating in Iraq. Halliburton began spinning off KBR last year.
During Mr. Cheney’s tenure as chief executive, Halliburton bought a company that saddled it with asbestos claims. The company has agreed to pay nearly $5 billion in settlements.
Despite its recent problems, Halliburton posted record revenue, net income and margins last year.
Perhaps the biggest winner could be Dubai itself, one of seven emirates in the United Arab Emirates confederation, which has sought to establish itself as a regional commercial center on par with Singapore and Hong Kong. Most multinational companies, including Halliburton, have made Dubai a regional hub for their Middle Eastern business over the last decade.
Sunday, February 25, 2007
GM's Got A Little Competition For Chrysler
Dr. Z doesn't necessarily want to be eaten up by America's second-most-troubled automaker, apparently. From Marketwatch:
Russia's second-largest automotive company, OAO Gaz Group (GAZA.RS), is interested in acquiring Chrysler from U.S.-German carmaker DaimlerChrysler AG (DCX), German weekly Focus magazine reported Saturday, without revealing its sources.
In an advance copy of a report to be published in Monday's Focus, the magazine says Gaz isn't an unknown partner for DaimlerChrysler, as Chrysler already supplies four-cylinder engines for cars and mini-vans to the Russian carmaker. DaimlerChrysler couldn't immediately be reached for comment Sunday. DaimlerChrysler Chief Executive Dieter Zetsche earlier this month triggered speculation about a possible sale of Chrysler when saying "all options are on the table" after Chrysler posted disappointing earnings.
Russia's second-largest automotive company, OAO Gaz Group (GAZA.RS), is interested in acquiring Chrysler from U.S.-German carmaker DaimlerChrysler AG (DCX), German weekly Focus magazine reported Saturday, without revealing its sources.
In an advance copy of a report to be published in Monday's Focus, the magazine says Gaz isn't an unknown partner for DaimlerChrysler, as Chrysler already supplies four-cylinder engines for cars and mini-vans to the Russian carmaker. DaimlerChrysler couldn't immediately be reached for comment Sunday. DaimlerChrysler Chief Executive Dieter Zetsche earlier this month triggered speculation about a possible sale of Chrysler when saying "all options are on the table" after Chrysler posted disappointing earnings.
Friday, February 23, 2007
CNBC: Howard Schultz Calls Starbucks "Cookie-Cutter"
Fast Money just reported an alleged leaked memo from CEO of Starbucks Howard Schultz, where he says some have referred to the company as "soulless" and "cookie-cutter," among other things... then goes on to say "others have never been to a Starbucks."
Unbelievable that he would make these comments about his own company!
Unbelievable that he would make these comments about his own company!
Thursday, February 15, 2007
Backdoor Backstreet Boys Raid
ORLANDO, Florida (Reuters) - U.S. agents on Thursday raided the home and offices of boy-band impresario Lou Pearlman, known for launching 'N Sync and the Backstreet Boys, as part of a criminal investigation, officials said.
Pearlman has already been sued by the state of Florida for alleged securities fraud involving an employee investment program.
Federal prosecutors and the FBI were investigating "various allegations leveled against Mr. Pearlman and his entities," U.S. Attorney's Office spokesman Steve Cole said.
According to the state lawsuit, Pearlman's companies for 15 years have sold unregistered securities in what was called an "employee investment savings account" program, committing securities fraud by implying the money was safe and insured.
But like a Ponzi scheme, according to the complaint, early investors were paid $118 million in dividends from deposits by more recent investors, while $7 million was paid in sales commissions and $50 million went to Pearlman and two other defendants.
It ain't no lie, if you invested with Pearlman, kiss your money bye-bye-bye...
Wednesday, February 14, 2007
Farewell, Condoflip.com
Condoflip.com, established to allow for the listing and eventual fire sale of condos, is no more. The website says this succinctly:
How Did The Market Change in 2004 and Beyond? We saw a dramatic shift in how preconstruction condos were bought and sold. The condo boom was driven by overly-ambitious speculators, [editor: ya think?] many of whom had been successful in flipping condos in the past. As condo inventories grew and prices rose many speculators realized that further purchasing was increasingly risky. So, buyers just stopped buying. What Kinds of Results Did Condo Flip See? We saw thousands of sellers, and very few buyers. It didn't make sense for us to maintain a marketplace where there were few buyers.
Personally, I don't know anyone who went there for any reason other than schadenfreude, so it makes sense.
How Did The Market Change in 2004 and Beyond? We saw a dramatic shift in how preconstruction condos were bought and sold. The condo boom was driven by overly-ambitious speculators, [editor: ya think?] many of whom had been successful in flipping condos in the past. As condo inventories grew and prices rose many speculators realized that further purchasing was increasingly risky. So, buyers just stopped buying. What Kinds of Results Did Condo Flip See? We saw thousands of sellers, and very few buyers. It didn't make sense for us to maintain a marketplace where there were few buyers.
Personally, I don't know anyone who went there for any reason other than schadenfreude, so it makes sense.
Monday, February 12, 2007
Ford: Is Any Press Good Press?
Trash-filled Ford Focus crashes when coffee cups, etc wedge under the gas and brake:
Link with video.
On one hand, it's testimonial that someone was willing to spend a lot of time in this car. On the other hand...
Link with video.
On one hand, it's testimonial that someone was willing to spend a lot of time in this car. On the other hand...
Sunday, February 11, 2007
REIT Buyout Targets from Forbes
While it's likely that anyone anticipating a REIT buyout is betting on the last legs of this particular game, Forbes identified five targets: Colonial Properties, Felcor Lodging, Home Properties, Maguire Properties and Sunstone Hotel Investors, that might still be lucky enough to get a bid. Their chart (click for legible rendition, my apols for Blogger's narrowness):
Saturday, February 10, 2007
Stocks and Bombs: "The Bishop"
From the Chicago Sun-Times:
A pipe bomb was delivered to the investment firm of Perkins, Wolf, McDonnell & Co. on S. Wacker Drive last week accompanied by a letter directing them to invest in various stocks.
It gets better. He's not just trying to move certain stocks, he has a very interesting goal price in mind:
In 2005, The Bishop started sending anonymous, threatening letters to financial services companies in the Midwest demanding the targeted companies take action to move specific stocks to a predetermined price, often $6.66, the report said. The letters were signed "The Bishop."
The devices he sent weren't equipped with triggers, which makes sense: if it really did blow up, ya couldn't read the memo on which stocks to purchase. If this individual is captured, it should be interesting to hear their background and personality profile.
A pipe bomb was delivered to the investment firm of Perkins, Wolf, McDonnell & Co. on S. Wacker Drive last week accompanied by a letter directing them to invest in various stocks.
It gets better. He's not just trying to move certain stocks, he has a very interesting goal price in mind:
In 2005, The Bishop started sending anonymous, threatening letters to financial services companies in the Midwest demanding the targeted companies take action to move specific stocks to a predetermined price, often $6.66, the report said. The letters were signed "The Bishop."
The devices he sent weren't equipped with triggers, which makes sense: if it really did blow up, ya couldn't read the memo on which stocks to purchase. If this individual is captured, it should be interesting to hear their background and personality profile.
Maria Bartiromo at CBGB?
Nah, of course not. She was Joey Ramone's financial advisor, though. From Page Six:
February 10, 2007 -- MARIA Bartiromo has some punk-rock roots - she used to privately advise Joey Ramone on how to manage his finances. The much-in-the-news CNBC "Money Honey" tells the March/April issue of Executive Travel magazine: "Most people don't know this, but he was an avid investor. He used to call me up, e-mail me and ask me detailed questions about his portfolio." Just how the late, beloved leader of the Ramones fared with her help isn't known, but he did end up penning a gushing song about her, "Maria Bartiromo," which was on his posthumously released 2002 album "Don't Worry About Me." It included the catchy lyrics, "I watch you on the TV every single day/ Those eyes make everything OK." CNBC had no comment on Bartiromo's extracurricular sideline. She also tells the magazine, "Joey Ramone was the coolest guy . . . [He] invited me down there [to CBGB] to see him perform the show live. I said, 'What time should I meet you?' I remember he said he'd probably go on stage about midnight. I said, 'Oh, I cannot be there. I have to be up at 5 a.m.' "
February 10, 2007 -- MARIA Bartiromo has some punk-rock roots - she used to privately advise Joey Ramone on how to manage his finances. The much-in-the-news CNBC "Money Honey" tells the March/April issue of Executive Travel magazine: "Most people don't know this, but he was an avid investor. He used to call me up, e-mail me and ask me detailed questions about his portfolio." Just how the late, beloved leader of the Ramones fared with her help isn't known, but he did end up penning a gushing song about her, "Maria Bartiromo," which was on his posthumously released 2002 album "Don't Worry About Me." It included the catchy lyrics, "I watch you on the TV every single day/ Those eyes make everything OK." CNBC had no comment on Bartiromo's extracurricular sideline. She also tells the magazine, "Joey Ramone was the coolest guy . . . [He] invited me down there [to CBGB] to see him perform the show live. I said, 'What time should I meet you?' I remember he said he'd probably go on stage about midnight. I said, 'Oh, I cannot be there. I have to be up at 5 a.m.' "
How To Play Fortress? Goldman, Sears Holdings, Supply and Demand
Much ado about Fortress...
This little hedgie (FIG) came public yesterday and closed at $31, a 60-something-percent increase over its offering price. This is not the time to get me started about how offering prices are set ridiculously low in so many cases to give a lot of money to i-banks' best clients at the expense of the company going public, but I promise to explore that tangent one of these days.
I hear a lot about how to play Fortress.
One idea: Fortress' P/E ratio can be used to determine a proper P/E for Sears Holdings (SHLD). Eddie Lampert, former king of the hedgies, has pretty much admitted he runs this thing like a hedge, hasn't he? I mean, who the hell wants to go from top of the world to managing a bunch of Sears and Kmarts? I haven't even set foot in either of those stores in years, but from the outside they sure look like hell. So Lampert puts all the revenue from Weatherbeater paint or whatever into credit-default swaps, and people like Jim Cramer crow that SHLD is the next Berkshire Hathaway. Um, don't get me started on Berkshire either; why the hell would Buffett want to buy a NEWSPAPER? Anyway, FIG's P/E = SHLD's P/E in Cramer's playbook, so buy SHLD as its current P/E is below that.
Sounds good, but the biggest flaw in that plan is that Cramer also expects Eddie Lampert to continue returning 30%/year -- what he did at the hedge funds. Do you have that much confidence in Ed?
Alternately, you could just take this as a sign of health in the investment sector as a whole and load up on its crown prince, GS, which has been golden the last couple years (yes, I sold too early).
Or, you could just buy Fortress itself in the near-term. Think of the ethanol sector last year; supply and demand. When there were comparatively few ethanol stocks, share prices went through the roof. Enter a wave of new ethanol company IPOs and down the prices went. Right now, there's not many private equity or hedgie companies to buy up, but those IPOs are sure to follow the spectacular performance of this one. If you buy FIG now, monitor circumstances carefully and when you see the wave of hedge-fund IPOs, get the hell out.
This little hedgie (FIG) came public yesterday and closed at $31, a 60-something-percent increase over its offering price. This is not the time to get me started about how offering prices are set ridiculously low in so many cases to give a lot of money to i-banks' best clients at the expense of the company going public, but I promise to explore that tangent one of these days.
I hear a lot about how to play Fortress.
One idea: Fortress' P/E ratio can be used to determine a proper P/E for Sears Holdings (SHLD). Eddie Lampert, former king of the hedgies, has pretty much admitted he runs this thing like a hedge, hasn't he? I mean, who the hell wants to go from top of the world to managing a bunch of Sears and Kmarts? I haven't even set foot in either of those stores in years, but from the outside they sure look like hell. So Lampert puts all the revenue from Weatherbeater paint or whatever into credit-default swaps, and people like Jim Cramer crow that SHLD is the next Berkshire Hathaway. Um, don't get me started on Berkshire either; why the hell would Buffett want to buy a NEWSPAPER? Anyway, FIG's P/E = SHLD's P/E in Cramer's playbook, so buy SHLD as its current P/E is below that.
Sounds good, but the biggest flaw in that plan is that Cramer also expects Eddie Lampert to continue returning 30%/year -- what he did at the hedge funds. Do you have that much confidence in Ed?
Alternately, you could just take this as a sign of health in the investment sector as a whole and load up on its crown prince, GS, which has been golden the last couple years (yes, I sold too early).
Or, you could just buy Fortress itself in the near-term. Think of the ethanol sector last year; supply and demand. When there were comparatively few ethanol stocks, share prices went through the roof. Enter a wave of new ethanol company IPOs and down the prices went. Right now, there's not many private equity or hedgie companies to buy up, but those IPOs are sure to follow the spectacular performance of this one. If you buy FIG now, monitor circumstances carefully and when you see the wave of hedge-fund IPOs, get the hell out.
Tuesday, January 30, 2007
Monday, January 29, 2007
Chicago Tops US Hot Property Spots
Financial Times reports:
EOP may keep numbers up for 2007, but looking at sheer volume I wouldn't expect a repeat; offices don't get flipped like condos. Well, historically, they haven't. I suppose a new trend could emerge in anything.
Chicago shot to the top of the list of the hottest US office property markets last year as investors flocked from the east and west coasts towards cheaper prices in the Windy City.
The amount of office property changing hands in downtown Chicago soared to more than 26m square foot last year, nearly tripling from the year before, and shooting past midtown Manhattan’s property market, according to data from Cushman and Wakefield, the property services company.
LinkEOP may keep numbers up for 2007, but looking at sheer volume I wouldn't expect a repeat; offices don't get flipped like condos. Well, historically, they haven't. I suppose a new trend could emerge in anything.
Money Honey Piggy Banks
Are your kids the financial type? Do they live and breathe by their Federal Reserve comic books? Maria Bartiromo seems to think at least a few kids who fit this image exist. She's trademarking her "Money Honey" nick for use on children's television, cookie jars, piggy banks and similar swag.
No word on whether Citigroup is providing a first round of financing for the endeavor.
No word on whether Citigroup is providing a first round of financing for the endeavor.
Sunday, January 28, 2007
Hedge Fund Qui Tam
So how do you be a manipulative little hedgie? On the long side, you buy up enough of a company to wheedle your minions onto the board. On the short side, apparently... you bring suit against them on behalf of the US Government. WSJ reports:
Now Greenlight Capital, a fund with a big negative bet on Allied Capital Corp., is breaking into new ground -- the courts.
Now Greenlight Capital, a fund with a big negative bet on Allied Capital Corp., is breaking into new ground -- the courts.
The $4 billion New York City fund has filed a lawsuit in federal court in Atlanta in the name of the U.S. government claiming that Business Loan Express LLC, a subsidiary of Allied Capital known as BLX, submitted fraudulent loan documents to the Small Business Administration, bilking millions of dollars from the U.S.
The government declined to intervene in November; now, Greenlight is bringing suit in their name. This battle has been going on for five years and it's probably a surprise Greenlight's attorneys didn't do this sooner.
Icahn's Next Buyout Target
Carl Icahn's on Bloomberg right now, and he's speculating on a buyout and breakup of Federated (FD), which might make some sense considering the amount of chafing they've experienced with their Borg-like assimilation of the nation's department stores under the Macy's flagship brand.
Saturday, January 27, 2007
YouTube Revenue Sharing
A rumored idea -- not to be confused with PROFIT sharing, of course, as it's doubtful they have any of those to share -- is coming to fruition. Chad Hurley has announced revenue sharing at YouTube, and while specifics aren't available, you know it breaks down to a cut of the advertising attached to user-uploaded content, assuredly paying very similar to Google AdSense.
Notice I said user-uploaded content and not user-generated content. I am curious as to whether revenue generated from ads attached to what turns out to be copyrighted works will be returned to the copyright holder, negated into the ether or who knows what.
Anyway, expect a deluge of LonelyGirl videos out of this news.
Notice I said user-uploaded content and not user-generated content. I am curious as to whether revenue generated from ads attached to what turns out to be copyrighted works will be returned to the copyright holder, negated into the ether or who knows what.
Anyway, expect a deluge of LonelyGirl videos out of this news.
Thursday, January 25, 2007
Ford
Record losses again. I didn't bother reading how they accrued them -- I assume they've started paying out the equivalent of Powerball jackpots to retiring employees, not quite sure. It's irrelevant, as the stock didn't move. You'd think that means this news is priced in, but you'd probably be wrong. Every quarter, investors assume "This has to be the worst for Ford, right? It can't get worse from here, so the stock has to go up," then the next quarter it gets worse.
I'd buy puts on this one a couple months out. With reports like this, F is more like a .80 stock than a 8.00 stock. OK, I exaggerate, but my price target is closer to their 52-week low. Or perhaps below that. No disrespect to Alan Mulally, but he's a CEO, not a magician.
I'd buy puts on this one a couple months out. With reports like this, F is more like a .80 stock than a 8.00 stock. OK, I exaggerate, but my price target is closer to their 52-week low. Or perhaps below that. No disrespect to Alan Mulally, but he's a CEO, not a magician.
Wednesday, January 24, 2007
Who Really Wants Cheap Oil?
Democrats or Republicans?
The Republicans have been accused both of pandering to oil interests by allowing prices to rise, and of seeking cheap oil via miscellaneous wars in the Middle East. These statements obviously contradict one another. You can, I suppose, present the evidence that oil prices DID spike during the Bush administration and that cheap, favorable oil leases were granted to the majors; however, now that oil prices are lower (below $60, at least), Bush is proposing a refill of the Strategic Petroleum Reserve. Is this to create additional demand in the near term and bolster prices or to offer a safety valve in case of additional price increases? Who knows.
On the Democratic side, you hear calls to either impose a profits tax on large oil companies or to impose a substantial tax on gasoline purchases, which would be used to subsidize various companies investigating alternative energy technologies. The former would potentially decrease supply and raise prices, while the latter artifically raises prices by tax with the hope of decreasing demand.
I don't know who really wants "cheap" oil, at least not for the consumer -- the answer to that is, probably, none of the politicians. However, both sides offer corporate welfare in various forms. Pick your investment accordingly.
The Republicans have been accused both of pandering to oil interests by allowing prices to rise, and of seeking cheap oil via miscellaneous wars in the Middle East. These statements obviously contradict one another. You can, I suppose, present the evidence that oil prices DID spike during the Bush administration and that cheap, favorable oil leases were granted to the majors; however, now that oil prices are lower (below $60, at least), Bush is proposing a refill of the Strategic Petroleum Reserve. Is this to create additional demand in the near term and bolster prices or to offer a safety valve in case of additional price increases? Who knows.
On the Democratic side, you hear calls to either impose a profits tax on large oil companies or to impose a substantial tax on gasoline purchases, which would be used to subsidize various companies investigating alternative energy technologies. The former would potentially decrease supply and raise prices, while the latter artifically raises prices by tax with the hope of decreasing demand.
I don't know who really wants "cheap" oil, at least not for the consumer -- the answer to that is, probably, none of the politicians. However, both sides offer corporate welfare in various forms. Pick your investment accordingly.
Sunday, January 21, 2007
High Fashion Substandard
A note for those associating Chinese imports with poor quality: they are, apparently, taking imports to task for the same flaw.
Top fashion labels declared 'substandard'
January 20, 2007 05:07pm
Article from: Agence France-Presse
CLOTHES from some leading international fashion labels have been declared substandard in China with some containing large levels of a chemicals. Quality control tests were conducted on garments from 40 labels for sale in Shanghai including luxury brands Armani, Burberry, Polo Ralph Lauren, ST Dupont and MaxMara, China's bureau of commerce and industry said.
Of the 59 garments and shoes tested, 25 were declared substandard with some having high levels of formaldehyde, unacceptable amounts of acid (pH) and poor dyes, the bureau said in a notice on its website. All but one of the 25 garments were imported.
Formaldehyde can cause skin rashes, eye irritations, provoke allergies and cause respiratory problems and cancer, in extremely high levels, the notice said. One garment contained twice the amount allowed under regulations, the notice said.
The results will spark concern among retailers and shoppers in China, the world's third-largest consumer of luxury goods after Japan and the United States. About 250 million Chinese are expected to be able to afford luxury goods by 2010, according to leading French pollster the IPSOS Institute.
Other problems include erroneous labelling, with one garment saying it was 20 per cent cashmere, but tests discovered it contained just 1.7 per per cent. The bureau said the clothes would be withdrawn and penalties imposed on the manufacturers.
Top fashion labels declared 'substandard'
January 20, 2007 05:07pm
Article from: Agence France-Presse
CLOTHES from some leading international fashion labels have been declared substandard in China with some containing large levels of a chemicals. Quality control tests were conducted on garments from 40 labels for sale in Shanghai including luxury brands Armani, Burberry, Polo Ralph Lauren, ST Dupont and MaxMara, China's bureau of commerce and industry said.
Of the 59 garments and shoes tested, 25 were declared substandard with some having high levels of formaldehyde, unacceptable amounts of acid (pH) and poor dyes, the bureau said in a notice on its website. All but one of the 25 garments were imported.
Formaldehyde can cause skin rashes, eye irritations, provoke allergies and cause respiratory problems and cancer, in extremely high levels, the notice said. One garment contained twice the amount allowed under regulations, the notice said.
The results will spark concern among retailers and shoppers in China, the world's third-largest consumer of luxury goods after Japan and the United States. About 250 million Chinese are expected to be able to afford luxury goods by 2010, according to leading French pollster the IPSOS Institute.
Other problems include erroneous labelling, with one garment saying it was 20 per cent cashmere, but tests discovered it contained just 1.7 per per cent. The bureau said the clothes would be withdrawn and penalties imposed on the manufacturers.
Wednesday, January 10, 2007
Dell: Would You Like Foliage With That?
From Minyanville:
Dell Unveils New, Environmentally Conscious Cynicism at Consumer Electronics Show
In a speech Tuesday at the Consumer Electronics Show, Dell CEO Michael Dell unveiled the company's new plan to become more "environmentally conscious" by doing nothing except urging its customers and competition to become more environmentally conscious, the New York Times reported.
* According to the New York Times, Dell announced the company would begin a program called "Plant a Tree for Me,” asking customers to donate $2 for every notebook computer they buy and $6 for every desktop PC.
* Customers in the United States will be given the chance to donate when they place an order for a Dell PC, the Times reported.
* Here's the beauty of the program: the company won't itself plant any trees, or donate any money for planting trees, or make any environmentally-friendly changes to the way it manufactures computers and electronics.
* Instead, the company will give the money donated by its customers to the Conservation Fund and the Carbonfund, two nonprofit groups that promote ways to reduce or offset carbon emissions, who will in turn buy and plant trees.
* Dell said the company intends to cover the "administrative costs" of the program, which we estimate could potentially cost the company maybe a hundred bucks or so, probably less.
Dell Unveils New, Environmentally Conscious Cynicism at Consumer Electronics Show
In a speech Tuesday at the Consumer Electronics Show, Dell CEO Michael Dell unveiled the company's new plan to become more "environmentally conscious" by doing nothing except urging its customers and competition to become more environmentally conscious, the New York Times reported.
* According to the New York Times, Dell announced the company would begin a program called "Plant a Tree for Me,” asking customers to donate $2 for every notebook computer they buy and $6 for every desktop PC.
* Customers in the United States will be given the chance to donate when they place an order for a Dell PC, the Times reported.
* Here's the beauty of the program: the company won't itself plant any trees, or donate any money for planting trees, or make any environmentally-friendly changes to the way it manufactures computers and electronics.
* Instead, the company will give the money donated by its customers to the Conservation Fund and the Carbonfund, two nonprofit groups that promote ways to reduce or offset carbon emissions, who will in turn buy and plant trees.
* Dell said the company intends to cover the "administrative costs" of the program, which we estimate could potentially cost the company maybe a hundred bucks or so, probably less.
Currency Meltdown!
Here's a gem for the goldbugs out there. Why rob a bank and take worthless paper money when you can rob a coin show and get metal?
Thieves target rare coins again at Orlando show
Willoughby Mariano and Sarah Lundy
Deputies are searching for a brazen band of masked robbers who stole roughly $4 million in some of the world's rarest coins at knifepoint at a busy luxury hotel on International Drive.
The heist was one of the largest in recent years, a security expert said Tuesday as details of the crime emerged.
The rarest of the stolen booty was a set of 1843 U.S. coins with a history that traces back to President John Tyler. The proof set contains 10 coins from a half penny to a $10 gold piece. Lloyds of London had insured them for $2 million, the coins' custodian said.
The stickup was the latest strike during the Florida United Numismatists' annual coin show and convention, which is one of the largest in the country.
Last year, about $450,000 worth of coins was nabbed by thieves who trailed their victims in at least five different cases up to 100 miles to take their loot.
Convention organizers have since added more security.
"In the last year -- for whatever reason -- it has become more commonplace," numismatists convention coordinator Cindy Wibker said.
"Nobody would have thought they would have been so brazen," said Robert Brueggeman, executive director of the Professional Numismatists Guild and owner of Positive Protection, which coordinated security at the convention.
The owner of the company in custody of the coins during the robbery asked not to be identified because of fear for his and his employees' safety.
The most recent attack took place Saturday in the valet parking line at the Peabody Hotel, while an employee of the Minnesota dealer in charge of the coins unloaded them from the rear of a Nissan Xterra.
A robber wearing a surgical mask and a hooded sweater grabbed the employee from behind, held a double-edged knife to his throat and forced him to the ground, a sheriff's report states.
The hooded man kept witnesses at bay with his knife while two other men, also in surgical masks, helped grab a Samsonite suitcase containing the $2 million set as well as other coins and items from the SUV.
The attackers sped off in a brown Mitsubishi sedan, the report states.
Detectives say it's unclear whether Saturday's heist is linked to last year's thefts, which occurred during the same convention. It's also too early to say whether the robbers are part of an organized ring or the theft was a one-time hit, they said.
The robbery rattled the Minnesota man who was taking care of the coins for their owner. The $2 million coin set was part of only two remaining complete sets of the 1843 coins, which were specially designed for collectors, the custodian said.
When the coins were made, they were polished to a mirror finish and set inside a Moroccan leather case lined with velvet, the custodian said. Coin collecting was rare in those days, so few of these sets were made.
These coins recently become more valuable because the custodian and the coins' owner said they had traced their ownership back to President Tyler -- which could make them the only set presented to a U.S. president. Tyler, who was president from 1841 to 1845, received them from the U.S. mint and subsequently gave them to an employee, the custodian said.
The coins are well-known among coin dealers, so they would be difficult to sell.
"They are instantly recognizable," the custodian said.
A description of the stolen coins was included in an e-mail blitz earlier this week to dealers throughout the country, and the insurance company is offering a reward, the custodian said.
"We are extremely conscious about safety," the coins' custodian said. Coin dealers travel in groups so they are less vulnerable.
Security is a major concern at Florida's coin show, which took place at the Orange County Convention Center. The four-day show attracted 1,750 dealers.
Last year, most thieves opted for less violent means, such as breaking into cars while dealers ate in nearby restaurants. In one case, they followed a victim to Bradenton, where they stole coins by breaking the window of his car while he was in the drivers seat.
Coin-show organizers added more off-duty deputies this year to beef up security at the show. Dealers also could use an underground loading area where the public couldn't see what they were doing or what type of car they were driving. The convention also offered a 24-hour secured room where dealers could store their coins, Wibker said.
"They could pick them up on their way out of town," she added.
In recent years, more coin dealers have opted to use armored carriers to ship their valuables, said Beth Deisher, editor of Coin World magazine.
After Saturday's robbery, even more may choose that route.
"Everyone will probably be much more careful," she said. "People with inventory of this level will probably think much more about using an armored carrier rather than trying to transport this much material themselves."
Thieves target rare coins again at Orlando show
Willoughby Mariano and Sarah Lundy
Deputies are searching for a brazen band of masked robbers who stole roughly $4 million in some of the world's rarest coins at knifepoint at a busy luxury hotel on International Drive.
The heist was one of the largest in recent years, a security expert said Tuesday as details of the crime emerged.
The rarest of the stolen booty was a set of 1843 U.S. coins with a history that traces back to President John Tyler. The proof set contains 10 coins from a half penny to a $10 gold piece. Lloyds of London had insured them for $2 million, the coins' custodian said.
The stickup was the latest strike during the Florida United Numismatists' annual coin show and convention, which is one of the largest in the country.
Last year, about $450,000 worth of coins was nabbed by thieves who trailed their victims in at least five different cases up to 100 miles to take their loot.
Convention organizers have since added more security.
"In the last year -- for whatever reason -- it has become more commonplace," numismatists convention coordinator Cindy Wibker said.
"Nobody would have thought they would have been so brazen," said Robert Brueggeman, executive director of the Professional Numismatists Guild and owner of Positive Protection, which coordinated security at the convention.
The owner of the company in custody of the coins during the robbery asked not to be identified because of fear for his and his employees' safety.
The most recent attack took place Saturday in the valet parking line at the Peabody Hotel, while an employee of the Minnesota dealer in charge of the coins unloaded them from the rear of a Nissan Xterra.
A robber wearing a surgical mask and a hooded sweater grabbed the employee from behind, held a double-edged knife to his throat and forced him to the ground, a sheriff's report states.
The hooded man kept witnesses at bay with his knife while two other men, also in surgical masks, helped grab a Samsonite suitcase containing the $2 million set as well as other coins and items from the SUV.
The attackers sped off in a brown Mitsubishi sedan, the report states.
Detectives say it's unclear whether Saturday's heist is linked to last year's thefts, which occurred during the same convention. It's also too early to say whether the robbers are part of an organized ring or the theft was a one-time hit, they said.
The robbery rattled the Minnesota man who was taking care of the coins for their owner. The $2 million coin set was part of only two remaining complete sets of the 1843 coins, which were specially designed for collectors, the custodian said.
When the coins were made, they were polished to a mirror finish and set inside a Moroccan leather case lined with velvet, the custodian said. Coin collecting was rare in those days, so few of these sets were made.
These coins recently become more valuable because the custodian and the coins' owner said they had traced their ownership back to President Tyler -- which could make them the only set presented to a U.S. president. Tyler, who was president from 1841 to 1845, received them from the U.S. mint and subsequently gave them to an employee, the custodian said.
The coins are well-known among coin dealers, so they would be difficult to sell.
"They are instantly recognizable," the custodian said.
A description of the stolen coins was included in an e-mail blitz earlier this week to dealers throughout the country, and the insurance company is offering a reward, the custodian said.
"We are extremely conscious about safety," the coins' custodian said. Coin dealers travel in groups so they are less vulnerable.
Security is a major concern at Florida's coin show, which took place at the Orange County Convention Center. The four-day show attracted 1,750 dealers.
Last year, most thieves opted for less violent means, such as breaking into cars while dealers ate in nearby restaurants. In one case, they followed a victim to Bradenton, where they stole coins by breaking the window of his car while he was in the drivers seat.
Coin-show organizers added more off-duty deputies this year to beef up security at the show. Dealers also could use an underground loading area where the public couldn't see what they were doing or what type of car they were driving. The convention also offered a 24-hour secured room where dealers could store their coins, Wibker said.
"They could pick them up on their way out of town," she added.
In recent years, more coin dealers have opted to use armored carriers to ship their valuables, said Beth Deisher, editor of Coin World magazine.
After Saturday's robbery, even more may choose that route.
"Everyone will probably be much more careful," she said. "People with inventory of this level will probably think much more about using an armored carrier rather than trying to transport this much material themselves."
Sunday, January 07, 2007
Fast Money
The signal-to-noise ratio is about to increase a little bit on the signal side: CNBC is giving the Fast Money boys a DAILY gig, 8PM EST weeknights. I find them to be the most savvy voices on that network. They address not just stocks but also options, commodities and shorts -- all rarities on your average stock-talkie show. I'd rather watch them than Cramer, because while Cramer is entertaining Fast Money has actually made me more money with far less time invested, and that is the highest endorsement I can possibly give. Oh yeah: if you read Minyanville, Macke is one of the five on the show.
Saturday, January 06, 2007
Harder Than Chinese Algebra
OK, so it's taken me two months to get around to posting about this article but I still think it's worth a mention. From Forbes:
Great Expectations
By Peter Beller | Nov 13 '06
Selling penis-enlargement pills made Steven Warshak rich. Charging $100 million to hapless customers' credit cards got him indicted. You've probably seen the commercials for Enzyte with the Ward Cleaver-ish pitchman, Smiling Bob, who sports a creepy ear-to-ear grin after taking the "once-a-day tablet for natural male enhancement." In September Enzyte's maker, Berkeley Premium Nutraceuticals of Cincinnati, and its owner, Steven Warshak, were indicted in federal court, but not for selling the pills. Such a case might have given rise to a drawn-out battle of expert witnesses or prickly first- person testimony. The simpler issue presented in the indictment is whether Warshak extracted $100 million over 5 years via a credit card scam. Berkeley's alleged M.O. could be a textbook case in the art of fraud. According to the feds, customers who saw the ads and called to order a free 30-day sample were persuaded to give up their credit card numbers to pay for shipping and handling and soon found themselves receiving and being charged for shipments of Enzyte, Those who complained were given a scripted runaround starting with an offer of more free pills. "No case refunds," said Warshak while instructing employees to remove the company's return address from boxes so customers would have a harder time tracking him down...
Does Enzyte work? Fred Alverson, spokesman for the U.S. attorney in Cincinnati says, "We don't care if it makes you harder than Chinese algebra. That's not part of the case." Warshak, who faces up to 30 years, has pleased not guilty.
This is Bob. Bob is looking... sued. This case is getting more interesting by the day though; ArsTechnica reported on 12/27/06 that Warshak's email was searched by the feds without a warrant, presumably for evidence and not copies of v14gr4 related spam. Think twice about what you're sending through those web mails...
Great Expectations
By Peter Beller | Nov 13 '06
Selling penis-enlargement pills made Steven Warshak rich. Charging $100 million to hapless customers' credit cards got him indicted. You've probably seen the commercials for Enzyte with the Ward Cleaver-ish pitchman, Smiling Bob, who sports a creepy ear-to-ear grin after taking the "once-a-day tablet for natural male enhancement." In September Enzyte's maker, Berkeley Premium Nutraceuticals of Cincinnati, and its owner, Steven Warshak, were indicted in federal court, but not for selling the pills. Such a case might have given rise to a drawn-out battle of expert witnesses or prickly first- person testimony. The simpler issue presented in the indictment is whether Warshak extracted $100 million over 5 years via a credit card scam. Berkeley's alleged M.O. could be a textbook case in the art of fraud. According to the feds, customers who saw the ads and called to order a free 30-day sample were persuaded to give up their credit card numbers to pay for shipping and handling and soon found themselves receiving and being charged for shipments of Enzyte, Those who complained were given a scripted runaround starting with an offer of more free pills. "No case refunds," said Warshak while instructing employees to remove the company's return address from boxes so customers would have a harder time tracking him down...
Does Enzyte work? Fred Alverson, spokesman for the U.S. attorney in Cincinnati says, "We don't care if it makes you harder than Chinese algebra. That's not part of the case." Warshak, who faces up to 30 years, has pleased not guilty.
This is Bob. Bob is looking... sued. This case is getting more interesting by the day though; ArsTechnica reported on 12/27/06 that Warshak's email was searched by the feds without a warrant, presumably for evidence and not copies of v14gr4 related spam. Think twice about what you're sending through those web mails...
Thursday, January 04, 2007
GOOG $630? Or $315?
What's a fair P/E? What's estimated earnings growth? What's taters, precious?
BusinessWeek article.
What was Cramer valuing it at last year... $800?
BusinessWeek article.
What was Cramer valuing it at last year... $800?
Wednesday, January 03, 2007
A F#@%ing Checking Account
A lighter moment:
A crusty old man walks into a bank and says to the woman at the teller window "I want to open a f#@%ing checking account."
The astonished woman replies, "I beg your pardon, sir. I must have misunderstood you. What did you say?"
Listen up, dammit. I said I want to open a f#@%ing checking account now!"
"I'm very sorry sir, but that kind of language is not tolerated in this bank."
The teller leaves the window and goes over to the bank manager to inform him of her situation. The manager agrees that the teller does not have to listen to that foul language.
They both return to the window and the manager asks the old geezer, "Sir, what seems to be the problem here?"
"There is no f#@%ing problem," the man says. "I just won 50 million bucks in the f#@%ing lottery and I want to open a f#@%ing checking account in this f#@%ing bank."
"Oh, I see," says the manager. "And is this f#@%ing bitch giving you a hard time?"
Moral: Money talks with an accent.
A crusty old man walks into a bank and says to the woman at the teller window "I want to open a f#@%ing checking account."
The astonished woman replies, "I beg your pardon, sir. I must have misunderstood you. What did you say?"
Listen up, dammit. I said I want to open a f#@%ing checking account now!"
"I'm very sorry sir, but that kind of language is not tolerated in this bank."
The teller leaves the window and goes over to the bank manager to inform him of her situation. The manager agrees that the teller does not have to listen to that foul language.
They both return to the window and the manager asks the old geezer, "Sir, what seems to be the problem here?"
"There is no f#@%ing problem," the man says. "I just won 50 million bucks in the f#@%ing lottery and I want to open a f#@%ing checking account in this f#@%ing bank."
"Oh, I see," says the manager. "And is this f#@%ing bitch giving you a hard time?"
Moral: Money talks with an accent.
Merger Mania Continues
In a melding of restaurants you would never want to eat at, Church's purchases Shoney's for an undisclosed sum. Shoney Bear to learn the Funky Chicken:
The Associated Press
NASHVILLE — An Atlanta-based company that operates Church's Chicken restaurants is acquiring Shoney's Restaurants for an undisclosed amount.
Royal Hospitality Corp., an affiliate of Royal Capital Corp., said it will take over all 282 Shoney's restaurants from Shoney's LLC, which is owned by an affiliate of Dallas-based Lone Star Funds.
Best known for its breakfast bar, Shoney's has 282 locations in 18 states, 230 of which are owned by franchisees. Royal expects to complete the acquisition of the 52 company-owned Shoney's restaurants by the end of the month. The restaurants will continue to be called Shoney's, and the chain's headquarters will remain in Nashville.
There are 13 Shoney's locations in Mississippi, including four in the Jackson metro area.
Royal is the largest franchisee of Church's Chicken with 112 restaurants located in Arizona, California and Texas.
"We all believe that Shoney's can be an even greater brand and can and will return to its glory days as an exciting food destination for millions of satisfied customers across the United States," said David Davoudpour, founder and CEO of Royal Capital.
Shoney's, begun in 1947 with a restaurant in West Virginia, merged with Danner Foods of Nashville in 1971 to become Shoney's Big Boy Enterprises. It became Shoney's Inc. five years later.
Shoney's posted solid sales and growth for decades before faltering in the 1980s as customers complained of poor food and service. The company sold off noncore operations such as its Pargo's and Fifth Quarter chains and closed some of its Shoney's locations.
The Lone Star Funds affiliate took Shoney's private in 2002 after nearly 30 years of public trading. At the time, the chain owned or franchised close to 1,000 Shoney's restaurants in 28 states, and it operated or franchised more than 560 Captain D's seafood restaurants. Lone Star sold the Captain D's chain in 2005.
Centrum Equities, a private equity firm, tried to buy Shoney's last year but then sued to get out of the deal.
The Associated Press
NASHVILLE — An Atlanta-based company that operates Church's Chicken restaurants is acquiring Shoney's Restaurants for an undisclosed amount.
Royal Hospitality Corp., an affiliate of Royal Capital Corp., said it will take over all 282 Shoney's restaurants from Shoney's LLC, which is owned by an affiliate of Dallas-based Lone Star Funds.
Best known for its breakfast bar, Shoney's has 282 locations in 18 states, 230 of which are owned by franchisees. Royal expects to complete the acquisition of the 52 company-owned Shoney's restaurants by the end of the month. The restaurants will continue to be called Shoney's, and the chain's headquarters will remain in Nashville.
There are 13 Shoney's locations in Mississippi, including four in the Jackson metro area.
Royal is the largest franchisee of Church's Chicken with 112 restaurants located in Arizona, California and Texas.
"We all believe that Shoney's can be an even greater brand and can and will return to its glory days as an exciting food destination for millions of satisfied customers across the United States," said David Davoudpour, founder and CEO of Royal Capital.
Shoney's, begun in 1947 with a restaurant in West Virginia, merged with Danner Foods of Nashville in 1971 to become Shoney's Big Boy Enterprises. It became Shoney's Inc. five years later.
Shoney's posted solid sales and growth for decades before faltering in the 1980s as customers complained of poor food and service. The company sold off noncore operations such as its Pargo's and Fifth Quarter chains and closed some of its Shoney's locations.
The Lone Star Funds affiliate took Shoney's private in 2002 after nearly 30 years of public trading. At the time, the chain owned or franchised close to 1,000 Shoney's restaurants in 28 states, and it operated or franchised more than 560 Captain D's seafood restaurants. Lone Star sold the Captain D's chain in 2005.
Centrum Equities, a private equity firm, tried to buy Shoney's last year but then sued to get out of the deal.
Subscribe to:
Posts (Atom)