Lyft and Waymo = Carpool; Bud Spending $2 billion to Up Its Game; AIG Bets Big on Latest CEO

Self-less…

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In case you were having trouble envisioning a world with driverless cars, you might want to check out Alphabet Inc.’s company Waymo. Waymo, a self-driving car company,  has just teamed up with Lyft, and that should be enough to make Uber more than a little nervous. You might be wondering why a company owned by Google even needs a much smaller company like Lyft for a partnership. But believe it or not, there’s a little quid pro quo going on because since Lyft has the dubious distinction of being the second largest ride service company, it will allow Waymo’s technology to reach even more people than without it. Isn’t that just beautiful? Uber, on the other hand, is looking to develop driverless technology on its own. If you recall, Waymo sued Uber back in February, alleging that Uber stole Waymo’s self-driving technology to build its own fleet.  But with the way things are going for Uber lately, it might be more prudent for the embattled ride-sharing company to focus on its current crop of legal and publicity challenges instead of driverless cars. For the time being anyway.  By the way, Lyft’s deal with Waymo is not exclusive. Which is super important considering that GM is a big Lyft investor and already has its own partnership in place to develop self-driving cars. It’s like legit double-dipping and everybody wins. In fact, come 2018, Lyft and GM will be set to deploy and test thousands of self-driving cars. Yikes!

Competitive beer…

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It might be hard to believe but the King of Beers is not looked upon as the royalty it once was. And so, its parent company Anheuser-Busch InBev NV is plunking down $2 billion to try and fix that issue. The plan is to make a substantial, lucrative foray into new categories, while at the same time boosting its flagship brands which have been staring down the wrong end of increased competition.  The money will be spent over the next four years, using approximately $500 million per year. In case you were thinking that $2 billion seems like an awfully bloated  – no pun intended – number to spend on improving a beer brand, consider that beer is a more than $107 billion industry and no self-respecting beer company wants to lose ground in a market like that.  And make no mistake, beer has been losing ground lately with not as much of it being consumed like in years past. Hard to believe. I know, but various types of other alcoholic beverages have been flooding the market in recent years and consumers are digging them. Which leaves companies like Anheuser-Busch scrambling to reclaim its foamy territory.

No pressure or anything…

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Maybe the seventh time’s a charm for AIG, which just announced it’s coughing up $12 million – and then some – to pay its newest CEO, Brain Duperreault. By “then some” I refer to an additional 1.5 million stock options and a $16 million pay package all based on the hope that Duperreault will finally be the one to turn AIG around. Did you catch that? He’s getting all that and he hasn’t sat at his new desk yet. The last CEO, Peter Hancock, left in March because he wasn’t feeling the love, or rather investor support, including from the one and only Carl Icahn. But Brian Deperreault just might have what AIG’s been looking for all these years, well at least since 2005. He’s no stranger to AIG, having worked there as a deputy way back when. He’s coming over from Hamilton Insurance, and before that he was at Marsh & McClennan Cos. earning solid reputations at both firms. As for his first order of business: achieve stability in a company that has seen too many high-level departures, four straight quarters of losses and high claims costs. Good luck with that one, Mr. Duperreault. You’re gonna need it.

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Tesla Deliveries Anything But Electrifying; Sec’y of State Nominee’s Future Looks Green; Trump’s SEC Chairman Pick

Not electrifying…

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Tesla’s fourth quarter sales rose 27%, yet deliveries fell short with CEO Elon Musk pointing to production delays. And Tesla didn’t fall short according to Wall Street’s predictions but rather its very own.  It may seem like a convenient excuse, but it’s a valid one that was also used to blame the company’s second quarter shortcomings. The electric car company delivered 22,000 cars in its last quarter, which was over 5,000 more than the same time last year. That might seem awfully impressive except that Tesla wanted that figure to top 25,000 vehicles. So now, that 3,000 car miss becomes an ugly smudge on the company’s fourth quarter earnings report. Tesla’s grand total of car deliveries for the year hit over 76,000. But once again, because Tesla went ahead and predicted that number would hit 80,000, it disappointed only itself.  Setting forecasts he just can’t meet is a nasty habit that Elon Musk can’t seem to break.  Production delays or not, maybe Tesla’s should stop trying to predict the future.  Shares were down 11% for 2016 which marks the first time that Tesla reported an annual decline since its 2010 IPO. But miraculously those shares still rose today because Wall Street clearly has a thing for Elon Musk. Well, his company, anyway.  Wall Street and consumers alike are waiting with bated breath to see if the much anticipated $35,000 Model 3 will actually surface this year. Some experts, however, think the more affordable model will only be making its grand debut in 2018. That still has’t stopped loyal Tesla buyers and enthusiasts from shelling out a total of $350,000 worth of deposits for the car.

Hatched…

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President-elect Donald Trump’s pick for Secretary of State, Rex Tillerson, reached a very lucrative retirement deal with ExxonMobil. If Tillerson does in fact get confirmed – and that’s still kind of iffy – then he’ll walk away from his post with $180 million comfortably nestled in a trust account. And that’s the approximate value of Tillerson’s 2 million deferred shares of the energy giant. Because he would not be allowed to own shares of the company if he took the post, the shares would get cashed out and put into an independently managed trust account. Besides dumping his ExxonMobil shares, Tillerson will not be allowed to work in the oil and gas industries for a period of ten years. Plus, he has to give up a cash bonus and other benefits that are worth another $7 million because he won’t be there in March, when he’ll have reached the company’s official retirement age that affords him the opportunity to collect on that $7 million package. But, that $180 million ought to tide him over. He’ll also need to agree to sever ties in order to avoid any conflicts of interest. Should he decide to return to the industry, then all that money would be given to charities of the main trustee’s choosing. But I did write that his confirmation is”iffy” because there are plenty of Congressional members who aren’t down with Tillerson’s cushy relationship with Russian president Vladimir Putin. That’s going to come up a lot during the confirmation hearings and it’ll probably be ugly, if not wholly entertaining.

And I choose you…

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Trump just announced his pick for Securities and Exchange Commission Chairman and it’s one that should surprise…no one. Enter Jay Clayton, a lawyer with the law firm Sullivan and Cromwell, who has plenty of experience with banks. Well, representing them, anyway. Besides banking clients, Clayton also defended a variety of “large financial institutions” against such entities as the Department of Justice, other government agencies and regulators and – get this – even the SEC itself.  Some of his more notable achievements include representing everybody’s favorite Chinese e-commerce giant, Alibaba, when it made its grand IPO debut. He’s also represented Barclays when it unceremoniously scooped up Lehman Brothers, and Bear Stearns when JP Morgan took it on. You didn’t think we’d leave out Goldman Sachs, did you?  Because he repped that one too.  Word on the street is that Carl Icahn interviewed Clayton, along with several other candidates for the post. Presumably the two gentlemen discussed how to best undo obstructive banking regulations, Dodd-Frank and all those other pesky rules that have been casting a major downer on the financial world.

Trump’s Treasury Trove; Things are (finally) Looking Up for Target; Neiman Marcus Bets on Rentals

 

Trump’s to treasure…

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Leave it to Carl Icahn to tweet that Donald Trump honed in on his choices for Treasury Secretary and Commerce Secretary. And, believe it or not, those choices may not be as bad as you think. Enter Steven Mnuchin, a veteran Wall Streeter and former Goldman Sachs partner who most recently served as Donald Trump’s campaign finance manager. Okay, that last bit may not be his best selling point. But if it makes you feel any better, controversial Trump White House Chief Strategist Stephen Bannon didn’t care for him and questioned Trump on whether he was “selling out to Wall Street.” Next we have Wilbur Ross, a billionaire investor and major NAFTA critic who also served as part of Trump’s economic advisory team. Ross has a knack for restructuring failing companies and has done so successfully in the energy and textile industries. That’s a big resume plus for the Commerce Secretary post. However, if Ross is serious about the post, he’ll have to step down from the numerous boards on which he serves, besides selling off tons of investments or chucking them into a blind trust. As for Carl Icahn, he tweeted that “Both would be great choices” and that they are “two of the smartest people I know.” And, if Carl Icahn thinks that then it must be so. Right?

Target = hipster?

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Things are looking up for Target. At least according to its CEO, Brian Cornell who said today that he is “increasingly confident” about Target’s new plans and endeavors for its 1,800 plus stores. Part of those endeavors include its foray into small-format stores. Those are basically shops that are targeted – no pun intended – to meet the consumer wants and needs of a specific location. With several under its belt already, Target’s latest small-format shop is slated for a 45,000 square foot space in super hip NYC locale, Tribeca. But Cornell’s enthusiasm went way beyond just the new stores. Shares of the retailer went up almost 9% today in pre-market trading because its third quarter sales decline was smaller than expected. Translation: Target didn’t lose as much money as experts thought it would. Those sales were down almost 7% to $16.4 billion, but that was primarily due to Target selling its pharmacy biz to CVS. As for the company’s e-commerce department, those sales were up 26% over the same time last year, which was especially welcome news considering that e-commerce for Target’s second quarter was down.

All rent out of shape…

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Image courtesy of toonsteb/FreeDigitalPhotos.net

Online clothes and jewelry rental companies are betting that if you’re not a customer now, you will be after you visit them at an actual showroom. And so begins a new journey for companies like Blue Nile and Rent the Runway, who have decided that it would be cheaper to install showrooms and hire staff than to find new ways of advertising that would attract new customers. Blue Nile already successfully tested out this timeless showroom concept with just 300 square feet at one lucky Nordstrom department store, while Rent the Runway is set to unveil a 3,000 square foot space at Neiman Marcus’ San Francisco store on Friday. However, many are skeptical that this is a prudent move for Neiman Marcus assuming that instead of buying Neiman Marcus inventory, customers will simply rent it from Rent the Runway. And is it wise for Neiman Marcus to be playing around with such a novel concept after losing $407 million in its last quarter? But the logic is that Rent the Runway has 6 million customers in an age demographic that Neiman Marcus would like to have. The luxury store is banking that the customers who come and pay to rent the high-end brands will end up being big ticket buyers of those very same high-end brands soon after. Plus, for an additional $30 – $75, Neiman Marcus will throw in styling services for Rent the Runway customers. Rent the Runway’s concept might seem cute but the money is definitely serious. A monthly subscription of $139 gets you up to three pieces at a time which you can keep for the month or send back in less than a day. The company so far raised $126 million in start-up venture capital and already exceeded its 2016 sales projections of $100 million.  So maybe Neiman Marcus is onto something because Rent the Runway sure is.

 

Peso: 1, Trump: 0; Trump Gets Shut Down – Just Not the Right One; How Nobel! Contract Theory Gets Props

Adios…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The peso is rising and ironically, Mexico has Donald Trump to thank. Who would have thunk it? The more Donald’s chances for the presidency dwindle, the higher the peso goes.  There is an O’Henry novel in there somewhere. The peso, in fact, had hit a record low just hours before the first debate on September 26 after falling 9% against the dollar this year.  Then this weird thing happened: the Mexican currency rebounded when Hilary Clinton went into full-court debate/attack-mode; or maybe from the negative momentum spewing from Donald’s Trump’s mouth – you decide. However, the peso did lose some of its gains when Trump began attacking Clinton’s use of her private e-mail server and all of her own shifty activities. But over the weekend the peso has been enjoying some new impressive gains and even surged to a one-month high, at least in part owing to Trump’s 2005 “Locker Room Talk” video which viscerally offended…everyone. Of course, we mustn’t rule out his performance at Sunday night’s debate. His showmanship seemed to just about clinch the demise of his presidential aspirations and also presumably helped the peso gain some much needed mojo. I guess that’s what they call karma. After all, he did say that if he wins, he’s going to slap some hard-core tariffs on Mexican imports and that’s a scary thought for a country who sees 80% of its exports going to the U.S. Trump wants to chuck NAFTA, or at the very least, renegotiate the terms so that they are more favorable to the U.S. That’s besides having our neighbor to the south foot the bill for a wall to keep out immigrants.

Loser…

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In other Trump news, the Trump Taj Mahal closed its doors…for good. Wish you could say the same of the candidate with the same name, huh? Trump opened the Trump Taj Mahal in 1990, and billed it as “The eighth wonder of the world.” Try not to throw up in your mouth. It was one of the largest casinos in the world and held the dubious distinction of having gone through multiple bankruptcies. Talk about the Trump theme song. In case you were hoping this closure puts a ding in Trump’s armor, don’t bother. He hasn’t owned it for years. He lost his share to bondholders and then resigned as chairmen. The property belongs to activist-investor Carl Icahn, and after massive losses and a breakdown in negotiations with unions, 3,000 employees now find themselves out of work.  Not that the news came as any great shock seeing as how the closure was announced in July. A thousand union members went on strike back then, in part angered that they only saw 80 cents per hour in raises for the last twelve years. Believe it or not Trump hadn’t even owned the casino for much of that time. So we don’t get to completely blame him. Meanwhile, the cost of living in the A.C. went up 25% for the same period so things weren’t adding up for all the casino’s employees. Union members wanted healthcare and pension benefits. Icahn said his last bid offered medical benefits, though the union still didn’t bite. Keeping the casino open would have meant more than $100 million in losses, that would have been in addition to the $350 million that the casino lost in the last few years. And nobody I know likes to lose money. Especially when there are so many commas involved.

Winner winner…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Now let’s move on to two people who actually make the world a better place. Too bad neither one of them is running for President. Oh well. But I guess winning the Nobel Economics Prize probably means you’re over-qualified for the position anyway. In any case, congrats are in order for MIT’s Bengt Holmstrom and Harvard University’s Oliver Hart. Their work on “contract theory” is so impressive that it seems only fair to hand them the prestigious award, which also comes with a $928,000 cash prize. As for contract theory, it deals with how to best design contracts, taking into consideration human behaviors in business. Whether you like it or not, contract theory has played a big part in executive pay. It helps out in all kinds of situations like how to effectively run corporations, dole out corporate compensation and even formulate bankruptcy legislation. It also studies the implications of workplace pay, like whether managers should get bonuses or stock options, or if teachers and healthcare workers should be paid a fixed rate or a salary that is performance-based. Contract theory also examines whether certain institutions, like schools hospitals and prisons, would fare better if they were privatized. Although, I find it somewhat disconcerting that prisons were lumped with hospitals and schools. Just saying.

Aetna Becomes Obamacare Dropout; Warren Buffet Takes a Big Bite Out of (the) Apple; TJX: Don’t Discount the Discounter

See ya!

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

In case it wasn’t entirely clear how some big insurance companies feel about Obamacare, perhaps Aetna might shed some light for you. The healthcare insurer is dropping out of the exchange in 69% of its counties. It’s dropping out of 11 of 15 states after eating $200 million in pre-tax losses during its 2Q. Of the 838,000 Affordable Care Act policies it has, 20% will be adversely affected. Aetna, which is the nation’s third largest insurer, isn’t the first health insurance company to do this. United Healthcare Group already dropped out of Obamacare exchanges and as did Kaiser, with more expected to follow. Whichever side you fall on in terms of the Obamacare debate matters not. It’s arithmetic that’s at play here. Aetna argues that they were losing big money to make the Obamacare policies work. Not enough healthy people were signing up and too many unhealthy people were. The premiums that healthy folks pay were/are intended to offset the large cost of the the unhealthy. Unfortunatey, things didn’t work out that way. The Departement of Health and Human Services was supposed to figure out ways to fix that issue. While its says it did, insurers say it didn’t – or at least, not enough. If you’re really bent on having Aetna insure you and your state’s just been dropped by it, you might want to consider moving to Delaware, Iowa, Nebraska and Virginia. Those states will still be offering policies from Aetna in 2017. Well, at least for now they will be.

Well, if Warren Buffet’s Doing it…

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Berkshire Hathaway’s very own oracle is taking a much bigger chunk out of the not-so-proverbial apple – the one based in Cupertino, that is. Warren Buffet upped his stake in the tech company by a substantial 55%. That’s in direct contrast to his fellow billionaire’s recent actions. George Soros just chucked his Apple stake out the window over concerns in China, or rather concerns about China’s policies regarding the iPhone maker. However, there’s a chance he’ll re-invest down the road. Activist investor billionaire Carl Icahn also ditched his Apple shares back in June. When he did this, shares of Apple had taken a slight dip, at which point Warren Buffet swooped in and increased his stake. Now his total stake of 15. 2 million shares is valued at about $1.7 billion. Shares of Apple, by the way, are up 14% since June. Incidentally, Wal-Mart didn’t fare so well as far as Berkshire Hathaway’s portfolio is concerned. The Oracle of Omaha cut Berkshire Hathaway’s stake in the world’s largest retailer by 27%, keeping it at just over 40.2 million shares. But Warren Buffet has had Wal-Mart in its portfolio a decade now and while his stake might be reduced, it’s probably still not going anywhere. For now. Curious what else Berkshire Hathaway has sitting in its very lucrative portfolio? Coca Cola, American Express, Johnson & Johnson, Kraft Heinz, Wells Fargo…to name but a few.

Who you calling off-price?

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Macy’s and friends might be bemoaning the state of the retail landscape. But they won’t get much sympathy from discount retailers T.J. Maxx. Its parent company TJX Cos came out with its second quarter sales results that had the retailer beating predictions.  But all was not perfect from the company that also owns Marshall’s and HomeGoods. It put out a bit of a bleaker picture for its third quarter that caused shares to fall today, despite its stellar performance.  In all fairness, that depressing and most unimpressive outlook is primarily because TJX Cos is waging war against a strong dollar. Besides, the company is giving out wage increases, so its hard to be mad at a company whose fiscal prowess is taking a hit for a very noble cause. There is even a silver lining – the company is turning out to be a big draw, luring shoppers away from malls with its deeply discounted merchandise on major name brands. Profit for TJX Cos was $562.2 million with 84 cents added to shares, while analysts only predicted 80 cents per share.  A year ago at this time, the company picked up $549.3 million with 80 cents added to shares. The stock is up 17% since January.

 

George Soros, Golden Boy; Home Run for Home Depot; Pandora’s Streaming Away From Profits

Just because George Soros is doing it…

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Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

George Soros just put a whole lotta money in gold. Lucky for him. However, the non-George Soroses of the world are supposed to take note, because, after all, he is, “The Man Who Broke the Bank of England.” And also because, since his net worth according to Forbes is $25 billion, he knows a things or two. Or a billion. In any case, according to a very recent regulatory filing that folks like him have to file (it’s called a 13F, and you are welcome that I am sparing you the boring details), Mr. Soros has sold off about 37% of his stock holdings. He then whipped out $387 million to buy lots of gold, including picking up a hefty 19 million shares in Barrick Gold, the world’s largest gold producer. It seems Mr. Soros is a more than a bit freaked out by the state of the global economy, and especially the slowdown in China. He feels the fiscal climate is reminiscent to him of 2007 – 2008 period just before the fiscal crash we are all still trying to forget. Not everyone agrees with Soros and his decision for his Soros Fund Management, but hey, he is the one who, back in 1992, bet against the British pound and made $1 billion off that bet – in a single day. I bet he’s real popular there. Anyway, it’s no secret that gold has always been a strong performer on Wall Street, as well as other places, mind you. The precious metal is up 21% for the year. But, just so ya’ know,  Soros still has plenty of other cash in plenty of other places. Like eBay and Apple. And Yahoo. And Gap…well, you see where I’m going with this. In fact, he’s got $80 million invested NOT in gold. In case you’re wondering what stocks he did ditch, some of those include Alibaba Group and Pfizer. Also, TripAdvisor and Expedia are out of his portfolio. Though, he did keep airline United Continental Holdings. Go figure.

Home improvement…

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As the warm weather brutalized plenty of retail outfits lately, (sorry, Macy’s, Nordstrom), Mother Nature knocked it out of the park for Home Depot. In turn, Home Depot warmed our hearts by boosting its sales and profit forecasts after regaling us with the news of its better-than-expected earnings, courtesy of Mother Nature. And as we all know, Wall Street loves nothing better than better-than-expected earnings. Except when investors feel that shares have hit their potential, for the moment anyway, which explains why shares of the home improvement chain were a wee bit down today. But no worries. A good housing market and fabulous weather added some $250 million in sales for Home Depot in the quarter, with February being the sweetest month, fiscally speaking. For the year, Home Depot is up about 20%, posting a profit of $1.8 billion a $1.44 per share. That was a 14% boost over last year, not to mention that it trumped analysts predictions of $1.36 per share. The company also saw $22.76 billion in sales, again stomping on predictions of $22.39 billion. The earnings also showed that consumers are actually spending their hard-earned cash, as opposed to hoarding it under mattresses (okay, banks too), unlike what was previously thought because of the generally poor performance in the retail sector. Spending money is good for the economy and now economists aren’t so worried anymore because they realize where all that hard-earned cash went. For the full year the retailer thinks it’ll pull down $6.27 per share for the year. And Spring has hardly sprung!

Closing the box…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Pandora Media has had better years. Even better decades. Founded in 2000, the company had its IPO in 2011 and has about 80 million active users. While it was amongst the first crop of music streamers, the company’s stock is now down about 40% for the last twelve months, having never caught the same momentum as some of its competitors, including Apple and Spotify. Enter activist investor/Carl Icahn protégé Keith Meister, who feels that the time has come for Pandora to put itself on the market. Keith Meister’s Corvex Management has some very strong feelings about how much better – and profitable – Pandora can be and seeing as how he’s got 22.7 million shares, giving him an almost 10% stake in the company, he’s entitled to more than just his opinion on the matter. As the largest shareholder in the company, Meister wrote in a recent letter how he has “become increasingly concerned that the company may be pursuing a costly and uncertain business plan, without a thorough evaluation of all shareholder value-maximizing alternatives.” Basically, he’s wondering if the folks in charge, namely CEO and co-founder Tim Westergren, knows what they’re doing. Wall Street certainly seemed to be agreeing with Meister, as it sent the stock up today as much as 7% at one point.

Icahn: A Man of Letters; IBM Looks to Weather Some Storms; Twitter Has Yet to Impress

Icahn. Therefore I am…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Carl Icahn took time out of his busy schedule of haranguing Congress and ousting CEO’s to write yet another letter, this time on his website, to insurance company AIG. Icahn now owns a sizable chink of the company, though exactly how much remains a mystery. He only tells us that it is very “large.” I, for one, believe him, just cause it’d be kind of weird to make something like that up. Besides, he usually goes big. In his advice letter to AIG, the activist investor writes, “There is no more need for procrastination.” He wants AIG split up into three separate divisions because he’s not digging the company’s “Systemically Important Financial Institution” status, or SIFI if you’re feeling funky.  If you find that term a bit too clunky, then, by all means, refer to it by its other more user-friendly term, “Too Big To Fail,” as in the 2008 fiscal crisis and the HBO movie of the same name (that starred Bill Pullman  as JP Morgan Chase’s Jamie Dimon and Ed Asner as Warren Buffet). Icahn believes that when a company gets SIFI status it’s bad. It’s like a tax. A tax of a bunch of regulators breathing down your fiscal back with heavy breaths of federal oversight. Companies that don’t get saddled with that status are more valuable to shareholders, in Mr. Icahn’s not-so-humble opinion. Icahn wants to divide AIG into a property and casualty coverage division, a life insurance division, and a mortgage backing division. Then he wants to throw in some cuts and have AIG buy back some stock. After that, he feels AIG will start trading closer to its book value at about $100 a share. Right now the stock is trading at just under $64 and trades for less than 80% of its book value (which, by the way measures assets minus liabilities). As for AIG CEO Peter Hancock, well, Icahn will probably find a way to kick him out of AIG if he doesn’t take his advice.

Super duper…

Image courtesy of  Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Today’s big shopper is IBM, who is getting set to acquire The Weather Co.’s digital assets. In case you were wondering (because I know you were), those digital assets are its websites and apps. The channel, however, stays put, as it doesn’t really fit into IBM’s master plan. That master plan involves IBM beefing up its Watson Internet of Things Unit, its artificial intelligence unit that puts the super in supercomputer. The data supplied by the deal will give Watson the ability to create accurate forecasts – is that an oxymoron? – and will be able to provide commercial clients, from airlines to insurance companies, and beyond, very precise information. While the exact terms of the purchase have yet to be disclosed, the deal is rumored to be valued at around $2 billion. Naturally, shares of IBM took a little ride on the uptown train because of the super news.

These are the not quite the Moments…

Image courtesy of bplanet/FreeDigitalPhotos.net

Image courtesy of bplanet/FreeDigitalPhotos.net

Twitter is down 13% for the year and another 11% just today, and yet the micro-blogging site still beat the street. The social media company pulled down $569 million in revenue adding ten cents per share. Analysts predicted that Twitter would score closer to $560 million and add only a nickel per share. In terms of last year at this time, Twitter was up 58%. But here’s where things start to go south. The company revised its fourth quarter profit outlook between $695 million and $710 million. That seems like a whole lot of cash except that analysts were expecting numbers closer to $740 million. Then we turn to growth. There wasn’t that much of it.  Twitter only managed to add about 4 million new active monthly users. A very unimpressive 11% increase over the same time last year. Analysts, however, are still optimistic that launches, including the much-hyped Moments, and its increasing ad revenues will help turn the company’s fiscal tide.