Coach Goes Shoe Shopping; Bitcoin of a Breach;

Well-heeled…

Image courtesy of biosphere/FreeDigitalPhotos.net

Image courtesy of biosphere/FreeDigitalPhotos.net

Luxury handbag and accessories maker Coach (COH) went shoe company shopping to go with all its merchandise and decided to settle on $530 million worth of Stuart Weitzman shoes. Coach announced this morning that it’s buying luxury shoe company Stuart Weitzman, which was/is actually owned by private equity firm Sycamore Partners LLC, who is getting $530 million in cash for the company. But if all goes well, in that Stuart Weitzman hits its revenue goals in the next three years, Sycamore stands to gain another $44 million – a win/win for all. In 2013, the footwear maker pulled in $270 million while Coach has been undergoing some growing pains in the last couple years as it struggles to compete with trendy rivals Michael Kors and Kate Spade. Shares of Coach rose $0.46 in pre-market trading which can only mean one thing – Wall Street is totally into the purchase.

Oops! It happened again…

Image courtesy of Victor Habbick/FreeDigitalPhotos.net

Image courtesy of Victor Habbick/FreeDigitalPhotos.net

Bitstamp, Europe’s top bitcoin exchange had to put the kibosh on services after 19,000 bitcoins went missing. In case you were wondering…which I know you were, that’s over $5 million. No withdrawals and no deposits (which probably won’t be an issue) can be made with Bitstamp as of now, but it has reassured its customers that “their balances held prior will not be affected and will be honored in full.” Awww. that’s sweet. How very responsible and conscientious. Sort of. Apparently the exchange’s “operational wallets were compromised” which sounds like something out of a movie. The rest of the exchange’s bitcoin stash is kept in “cold storage.” And while that just sounds like the secret compartment in the back of your mother’s freezer, it’s actually a term to describe computers that aren’t connected to the internet but hold information. Like my Commodore 64 I had when I was eight.  The breach doesn’t quite have the stench of epic failure of the Mt. Gox breach collapse almost a year ago, which saw $650 million worth of the crypto-currency mysteriously disappear along with the collapse of the exchange itself.  However, the breach is still alarming enough to shake up the unregulated bitcoin universe. Bitcoins are, by the way trading in the $270 range, which is cute and all but nothing like its $1,240 peak, pre-Mt. Gox collapse, of course.

Stamp’d out…

Image courtesy of anankkml/FreeDigitalPhotos.net

Image courtesy of anankkml/FreeDigitalPhotos.net

The United States Postal Service had its best fiscal quarter in seven years. In fact, this quarter was up 18% over the same time last year.  A very impressive feat considering that volume for mail is down 26% in the last ten years. But even with that 18% increase the USPS continues to operate at a loss. Those pieces of paper to which you affix stickers with a monetary value on it – you do realize I am talking about stamped envelopes, don’t you? – have gone down in volume by a third. Even though the price for stamps kept going up and up and up… the postal service still saw $17 billion in losses in the last decade. To help recoup some of those billions, the postal service consolidated over 300 processing facilities, cut 212,000 jobs and nixed 23,000 routes. And now expect snail mail to get even snail-ier with the average delivery time going up from 1.8 days to 2.1 days.

 

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