Jimmy Choo: If the IPO Shoe Fits…; Inversions: The Good. The Bad. The Ugly; Soda Vs. the World

I Jimmy Choos you…

Image courtesy of biosphere/FreeDigitalPhotos.net

Image courtesy of biosphere/FreeDigitalPhotos.net

Arguably one of the world’s awesomest shoemakers (understatement of the year), Jimmy Choo, propelled to fame thanks to Carrie Bradshaw and “Sex and the City,” is now looking to put a little “pump” into the stock market by coming out with its own IPO next month. Granted, it will be nothing compared to Alibaba’s meteoric rise to the top of the index. Partly because it will be listed on the London Stock Exchange. The other staggering difference is that Jimmy Choo’s valuation, at about $1 billion, will be a wee bit smaller by about oh, I don’t know, $23 billion, give or take. Jimmy Choo has major plans to expand in Asia where  the shoes are not as easy to come by, yet so very many people there want them. And you know, Asia being a pretty huge place and all, has a lot of shoes to fill (sorry, I had to go for that one). The company has seen double digit growth on that continent, especially in China. Which is good because since you can’t score a new iPhone 6+ there, you can at least console yourself with a $2000 pair of shoes.

An inversion by any other name…

Image courtesy of Craftyjoe/FreeDigitalPhotos.net

Image courtesy of Craftyjoe/FreeDigitalPhotos.net

Inversions. They’re baaack. If you recall (and its okay if you don’t), corporations totally dig inversions as a way to reduce the heavy duty 35% tax burden imposed by sweet old Unlcle Sam. Simply put, companies move overseas. It’s a bit more complicated but I’ll spare you all the gory details. The government, this one anyway, gets really annoyed when companies do inversions, because it thinks money is being taken out and away from the US. Now, just as eight major US corporations, Burger King among them, are getting set to pack up their things and head for fiscally greener pastures, US Treasury Secretary Jacob Lew inconveniently announced plans to crackdown on inversions practices and the companies that do them. Lew hopes to “significantly diminish the ability of inverted companies to escape US taxation” and basically make it not worth it for companies to invert. However, Martin Regalia, who just so happens to be the chief economist at the super-important US Chamber of Commerce feels this crackdown is a very very bad idea and says that “the administration just assured that deferred income in the once foreign subsidiary will never come back to the U.S. to help create income, jobs and economic growth here.” Which basically means: “Bad public policy produces bad economic results.”

The skinny on soda…

Image courtesy of artzenter/FreeDigitalPhotos.net

Image courtesy of artzenter/FreeDigitalPhotos.net

Your soda is about to get a whole lot skinnier – 20% skinnier. And you can forget Coke vs. Pepsi vs. Dr. Pepper vs. whatever…It’s now soda vs. the world as beverage suppliers are getting their game on to try very hard to get Americans to stop consuming so much sugar,  at least from their beverages. This big unified soda announcement came during the Clinton Global Initiative. Apparently a study was conducted that found how between 2000-2013, the amount of sugar people got from their drinks fell over 12%. Which is all good. Especially because the beverage industry took note of this and will now push water and diet drinks more aggressively. Why, they are even going to market those cute smaller size cans of full calorie soda. Which is a really good thing. Especially because those darling little cans are so much more profitable. More so than the bigger regular-sized cans. Go figure. Oh, and they allegedly help with portion control too.

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Is There An iPhone 6+ in the House?; Jack Ma’s Very Good Day; Clorox Says “Adios” to Venezuela

Best. Ever…

Image courtesy of jannoon028/FreeDigitalPhotos.net

Image courtesy of jannoon028/FreeDigitalPhotos.net

Apple had an awesome weekend selling more than 10 million new iPhones in what has turned out to be Apple’s best debut weekend for an iPhone. Ever. There were of course some major movie debuts, as well. But who cares because it seems everybody was standing on line waiting to grab their new iPhones instead. The big mystery, it seems, is which iPhone did people buy? Was it the $199 iPhone 6 or the $299 iPhone 6+ aka “the bigger one.” By September 26, 20 more countries will be afforded the opportunity to purchase the device. Which brings us to another big mystery – namely, that China, undoubtedly one of the largest smartphone markets will not be one of those countries.  In fact, it’s not known, if or when China will ever be launching the iconic devices on its shores because apparently…wait for it…the device still needs “government approval” from the Chinese government, that is.

Speaking of China…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

It’s official. After all the hype and hoopla, Alibaba, the New York Stock Exchange’s newest “it” stock, did live up to all the chatter surrounding its debut.  The stock now holds the record for being the biggest IPO. Ever. In the world. Ever. Easily leaving Facebook’s IPO record in the dust. CEO Jack Ma, with minimal effort, raised $25 billion and the stock began trading on Friday at 35% higher than its $68 IPO price. Today, however, shares are down – below $90, still way way way above it’s IPO price. The ticker symbol, by the way, is BABA. Catchy, right? I thought so too.

Adios…

Image courtesy of artur84/FreeDigitalPhotos.net

Image courtesy of artur84/FreeDigitalPhotos.net

Venezuela is about to get a whole lot dirtier as Clorox pulls the plug on its operations over there. For the last three years, the price of Clorox products remained frozen, courtesy of the Venezuelan government. Not all of Clorox’s products had a price freeze -but 2/3s of them did, which made it pretty difficult not to operate at a regular staggering loss. But the price freeze alone wasn’t the only problem. Triple digit inflation led to higher prices for raw materials, packaging, wages, transportation, and other very important things necessary to run a company. Of course, the suits at Clorox graciously tried to explain the arithmetic to the Venezulan government officials but they just wouldn’t play ball. Sure they agreed to increase prices, but not enough. In fact, it was nowhere near enough. Wall Street clearly thought the decision to bail on Venezuela to be muy bien and sent shares of company north (no pun intended – okay, well maybe just a little).