Travis Kalanick’s Not-So-Fond Farewell; It’s Bottoms Up for George Clooney; Glassdoor Drops Another List and You Better Hope Your Boss is on it

Goodbye and farewell…

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Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Looks like Travis Kalanick’s “leave of absence” is now a permanent one as he finally took the hint from investors and officially resigned as Uber’s CEO. But not before the aforementioned investors placed a lot of pressure on the embattled CEO to step down. And who can blame the investors. Scandal after ugly scandal emerged from the $68 billion, privately held company and it seemed as if Kalanick wasn’t up to snuff when it came to dealing with them.  In an email to employees, Kalanick talked about his love for Uber and decided to step down “so that Uber can go back to building rather than be distracted with another fight.” How very gallant of him. While Kalanick still remains on the board of Uber, the business is now being run by fourteen people who once upon a time reported to him. Talk about irony.

Aye tequila!

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Image courtesy of Juan Gnecco/FreeDigitalPhotos.net

Some guys have all the luck and George Clooney is one of them. If you think he’s just an actor with a pretty face then you are so very wrong. Turns out the Hollywood hunk also has his own tequila brand –  along with two other partners – called Casamigos, which was just bought for $1 billion by liquor company giant Diageo. The name Diageo might not ring a bell for you, but the name Smirnoff should, and that is just one of the many notable brands that belongs to the Diageo family. Curious who George’s other partners are? Mr. Cindy Crawford, aka Rande Gerber and Mike Meldman. Annoyingly enough, Clooney and Gerber were just trying to come up with their very own “house” tequila for the properties they own in Cabo San Lucas.  But a very lucrative opportunity knocked that had them expanding the brand beyond Cabo, and just last year 120,000 cases of the stuff was shipped out. This year the company expects that number to climb to 170,000. And with a price tag between $45 to $55 a bottle, Clooney and company get to live large without having to rely on other their other talents, including acting and such. As for Diageo, you can bet that this acquisition had less to do with Clooney’s movie star charm and more to do with the fact that tequila volume in the U.S. more than doubled from 2002 to 2015.

There’s a list for that too…

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Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Glassdoor has regaled us with yet another list. This time it’s to let us know who the top CEO’s in the world are, according to employees And you can bet Travis Kalanick did not make the cut. The Clorox Company’s Benno Dorer takes the top spot. What? Were you expecting a tech CEO? Well too bad because Dorer earned a 99% approval rating from his employees.  Another name from the list you might recognize is Elon Musk who takes the eighth spot. Interestingly enough, his 98% employee approval rating came not from Tesla, but his other company, SpaceX. Wonder what that’s about. Facebook’s Mark Zuckerberg makes it onto the list at number ten, also with a 98% approval rating. But sadly that’s a sharp drop from his number four spot in 2016. Google’s Sundar Pichai grabs the 17th spot while LinkedIn’s Jeff Weiner comes in at number 35. The biggest bummer on the list just might be Apple’s Tim Cook. Last year he held the number eight spot, but this year he drops to spot number 53. In all fairness, however, he still scored a 93% approval rating.

 

Billionaire Gets Booed Over Trump Support; Pes -Oh No! Clinton Investigation Hurts Chances and Currency; Lumber Liquidators Low on Liquid

Are you sure about that?

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Tech billionaire Peter Thiel s taking a lot of heat for his support of Republican presidential candidate Donald Trump. People are enraged that Thiel, who happens to be a PayPal co-founder, had nothing better to do with his money than throw $1.25 million into Trump’s campaign coffers. In fact, there are some who would like to see Thiel ousted from his board positions at Facebook and Y Combinator. However, Mark Zuckerberg has already said he wouldn’t do that and while Y Combinator CEO Sam Altman can’t stomach Donald Trump, he also has no plans to boost Thiel despite his political leanings. “What Donald Trump represents isn’t crazy, and it’s not going away,” Thiel said during his speech at the National Press Club in Washington where he griped about all the problems that America continues to face. From not benefitting from free trade, to watching taxpayer money go down the toilet to fund overseas conflicts, to raging about America’s over-priced healthcare system, Thiel’s speech had all the makings for a Trump rally. Well, except for assaulting women and imposing bans on Muslims entering the U.S. At least Thiel does not agree with all of Trump’s statements and sentiments and he even finds Trump’s comments about grabbing women “clearly offensive and inappropriate.” And that is oddly reassuring.

Trump-ed Up Currency…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Speaking of the election…The peso, while maybe not the preferred currency for many, is actually a fairly reliable gauge of how the markets feel about our Presidential candidates. Today, the Mexican currency was down as the FBI investigation of Hillary Clinton’s emails on Anthony Weiner’s computer continues to rear its ugly inconvenient head. The Peso favors Hillary and when she does well, it goes up. Following the debates, the peso experienced a nice boost, as it was not keen on Trump’s plans to build a wall along the Mexican border and renegotiate NAFTA with terms more favorable to the United States. Back in September, the peso hit a record low when Trump began making considerable gains in the election. But alas, it was news of this latest FBI investigations that sent the peso tumbling to its worst fall in seven weeks. On the bright side, if you can call it that, today the dollar rebounded signaling that the investigation isn’t affecting the U.S. currency. It also presumably means that the dollar would like to see Clinton installed in the White House.

No kidding…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Speaking of things that make you sick, we now shift our attentions to Lumber Liquidators and its ongoing saga over its formaldehyde-laced flooring.  Investors had hoped the stock would rebound right about now. But those hopes were dashed when the company reported its third quarter earnings with the stock taking a 14% hit. The company posted an $18.4 million net loss, losing 68 cents per share, which was way over the expected 21 cents per share loss. The worst part of that figure was that the loss was larger than expected as legal fees continue to plague the company and no timeline has been established for when the company will finally settle its litany of lawsuits.  Interestingly enough, sales were actually up and hit $244 million, beating expectations of $232 million. Who would have thunk it? In the meantime, the company saw half its value go down the proverbial toilet since the scandal broke out in March, courtesy of “60 Minutes” and its relentless investigative journalism.  At least the U.S. Consumer Product Safety Commission ended their investigation back in June, issuing no recall. Shares closed at $15.51.

Jeff Bezos Hearts India; Lululemon’s Zen-tastic Earnings; Is Your CEO Listed? You Better Hope So

Next. Big. Thing…

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Image courtesy of domdeen/FreeDigitalPhotos.net

India is looking very flush these days as Amazon’s Jeff Bezos decided to throw $3 billion at it. That’s in addition to the $2 billion he gave the southeast Asian country back in 2014. He made this announcement at a meeting of business leaders in Washington DC that included Indian Prime Minister Narendra Modi. The reason why Bezos is showing India a lot of fiscal love is that it is Amazon’s fastest growing region, boasting 21 fulfillment centers and 45,000 employees. In other words, the e-commerce giant is banking on the “huge potential in the Indian economy.” Interestingly enough, Amazon can only sell its wares from its website through a third party, as mandated by Indian law. But that hasn’t been much of a problem for the e-tailer, who ironically, never seemed to adapt as easily to the local Chinese marketplace, and continues to struggle there and against the giant we call Alibaba. It’s worth noting that Amazon is not the only game in town, facing fierce competition from local e-commerce businesses, Flipkart and Snapdeal. But Amazon’s not sweating it since according to Morgan Stanley, it is estimated that consumers in India bought $16 billion worth of goods last year, more than $10.3 billion from the previous year. So clearly, there’s plenty of room on the Indian e-commerce playing field.

Lemonade mouth…

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Lululemon beat estimates and even raised its 2016 revenue forecast. So why is its founder and largest shareholder, Chip Wilson, in a snit? He’s probably still licking his executive wounds after being booted from his post for making stupid comments, among other short-comings. In a letter to shareholders last week, the 14.2% stakeholder ripped into the current directors because he feels that they can’t keep up the pace against other athletic apparel companies like Nike and Under Armour, to name a few. Wilson would like it very much if there was an annual election that would make the board of directors accountable for earnings results and, presumably, get him reinstated as CEO. As it stands, the current leadership, helmed by Laurent Potdevin, would probably be delighted to be held accountable for Lululemon’s latest earnings considering how well it performed. Sure, the retailer missed profits by just a penny, falling 5% to $45.3 million, yet still earning 30 cents a share. But shares are still up 27% for the year and the company had strong sales this quarter. It also found a way to control its inventory levels and, in the process, saw its revenue rise 17% to $495.5 million when analysts only thought it would pull down $487.7. So perhaps it’s time for Wilson to keep his thoughts to himself and just enjoy his burgeoning majority stake.

In case you were wondering…

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Image courtesy of domdeen/FreeDigitalPhotos.net

Glassdoor came out with its latest annual list, this time regaling us with the highest rated CEO’s. Bain & Company’s Bob Becheck tops the list with a 99% approval rating. Employees seemed to appreciate the support they receive from their boss, not to mention the company’s focus on professional development. And who doesn’t mind professional encouragement? But while Becheck scored the number one spot, two other CEO’s also received 99% approval ratings. So congrats to Ultimate Software’s Scott Scherr and McKinsey and Company’s Dominic Barton. Facebook’s Mark Zuckerberg kept his number 4 ranking from last year, while LinkedIn’s Jeff Weiner took fifth. Larry Page’s replacement at Google, Sundar Pichai, earned a 96% approval rating and the number seven spot, while Apple’s Tim Cook came in 8th, also with a 96% approval rating. Four women paved the way on this list, including Staffmark’s Lesa J. Francis, who took the 28th spot with a 94% approve rating, and Enterprise Holdings’ Pamela M. Nicholson, who graces the list at the number 31 spot, also with a 94% approval rating.

The List of all Lists; Kate Spade’s Numbers Need to Get Accessorized; GoPro Goes Big With Latest Acquisitions

A-listers…

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Forbes unleashed its latest list of the world’s richest people just in time to make you feel really bad about yourself. 1,810 billionaires made the list and their combined net worth is a mind-blowing $6.48 trillion. But don’t be too impressed since that figure is actually $580 billion less than it was last year. Hey, times are tough. There are 16 less billionaires this year and 540 of them are living large in the United States. The gender gap managed to rear its ugly face on this list as only 190 women made the cut, with 65 here in the United States. Unfortunately that figure was down from 197 last year. Heiress and L’Oreal businesswoman Lilliane Bettencourt is the highest ranked woman, taking the 11th spot with a net worth of $36.1 billion. For the third year in a row, Bill Gates is sitting pretty at the top with a net worth of $75 billion. However, to be fair, he is $4.2 billion poorer than he was last year. My heart aches for him, really. Like Zara clothing? Apparently most people do since its owner, Amancio Ortega, ranks in the number two spot. Warren Buffett, no surprise, takes third while Carlos Slim snags the fourth spot. Facebook’s 31 year old Mark Zuckerberg took the sixth spot with his $44.6 billion and becomes the youngest billionaire in the top ten. Lucky him. And whether you love him or hate him, Donald Trump did make the list with an estimated net worth of $4.5 billion.

Accessorized…

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Kate Spade almost fell out of fashion on Wall Street today when the company reported that its fourth quarter sales fell short, coming in at $62 million and adding 32 cents per share. The company missed estimates by a penny and posted a 51% decline from last year  when the company saw $126 million with 49 cents added per share.  At least its revenue was up 7.6% to $429 million, although analysts did expect that number to ring in closer to $442 million. Oh well. Maybe next quarter. Yet, Kate Spade shares rose as high as 6.7% today. And why shouldn’t they? After all, the swaggy design house is expanding its merchandise into home decor and children’s apparel, prospects that have Wall Street tongues wagging, if ever so slightly. The company has had quite the quirky fiscal ride as it was down a staggering 42% for the last twelve months yet managed to creep up 12% since the beginning of the year. That was happening even while the almighty S&P was going down 5.5%.  Go figure.

Pro-active…

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What to do when your company takes a vicious downward spiral killing 70% of its value? You go shopping, of course. And that’s exactly what GoPro Inc. CEO Nicholas Woodman did. The action-camera exec announced he is plunking down $105 million to buy not one, but two video editing applications, in hopes of beefing up one of the company’s bigger problem areas.  Wall Street responded kindly by sending shares up and let’s face it, GoPro shares need all the help they can get. GoPro’s acquisitions are Replay and Splice, applications that will allow users the ability to easily cut and publish footage on their mobile phones. Given that Woodman himself called he GoPro editing experience an “inconvenience,” these acquisitions seem like a prudent move. Too bad, however, that this move comes on the heels of GoPro’s decision last month to cut 7% of its workforce after weak holiday sales and slashing the price of its newest camera by 50%. That’s what happens when you’re staring into a crowded market of action-cameras. But, taking a page from Warren Buffett, Woodman is optimistic that 2016 will be a record year for GoPro. Let’s hope so since 2015 saw GoPro’s stock hit an all-time low.

Walmart Bums Out Wall Street; Puma Deals a Mighty Blow to Yeezy; Is IBM Back in the Game?

Fall-mart…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Walmart announced earnings and, in the process, managed to put a damper on Wall Street’s day. The company posted .6% growth and while nobody argues that growth is bad , the company still missed expectations of 1% growth. It’s now expected that Walmart will post a very boring flat line to illustrate its net sales even though previous forecasts called for 3% to 4% growth. Profits for Walmart fell almost 8% to $4.57 billion and posted revenues of $129.7 billion. While that may seem like a nice beefy number, analysts still expected $131 billion in revenue. The numbers weren’t helped by Walmart’s decision to close 269 stores worldwide, including 154 just in the United States. Then there were those wage increases and investments into its digital commerce that ate a bit into those profits. But Walmart is banking on the fact that those investments will yield big returns, even if it does mean a little wait. After all, if it’s gonna compete with Amazon, it’s gotta put in the time and money. Of course, mother-nature gets some of the blame too, seeing as how warm weather put a crimp in sales of cold weather merchandise. But don’t rule out the strong dollar, which also deserves plenty of the blame. At least shares are up over 6% in the last three months and the retailer is raising its dividend by 4 cents to generous $2 per share. Woohoo.

Swift karma…

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Puma had a very good quarter and much of the credit for that can go to Rihanna. Yes, that Rihanna. As the brand’s creative director, the pop star is helping shape the female future, as Puma refers to this endeavor. The company had higher than expected sales growth for its fourth quarter, just as Rihanna launched her first full goth-inspred line for the athletic apparel retailer. Back in the fall, RiRi’s remake of Puma’s classic suede kicks sold out within hours of going on sale. Puma’s profits were up 2.6% to 10.9 million euros, easily beating forecasts of 6.5 million euros. Sales rose 11.5% to 979 million euros when analysts expected just 839 million euros in sales. And maybe Kanye West should take to Twitter to hit up his sister-in-law, Kylie Jenner, for some cash, instead of Facebook CEO Mark Zuckerberg. She’s been named as the company’s brand ambassador, contrary to his hopes that she would be on his Team Yeezy Adidas line.

Have patients…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

IBM. Remember that name? The company just whipped out $2.6 billion for its latest acquisition, Truven Health Analytics. Under CEO Ginny Rometty, IBM has so far spent $4 billion in acquisitions in the last 12 months but this latest one is IBM’s biggest purchase in three years. Wall Street reacted kindly by giving shares of IBM their biggest jump since 2013, and sending them all the way up to $134. That’s especially reassuring for IBM since it posted 15 straight quarters of declining sales. Truven was acquired since IBM brass thought it would fit nicely into its Watson Health biz unit. FYI, Watson is IBM’s fabulous collection of artificial intelligence technologies that does all kinds of super fun stuff like taking data apart to analyze it, interpret it and see if any patterns can be predicted.  With this acquisition, IBM will have health info on 300 million patients and employ 5,000 people worldwide.

 

 

 

Awesome Intel; Who is America’s Favorite CEO?; Marriott’s Letting Guests Stream it Up;

Friggin’ awesome…

Image courtesy of koratmember/FreeDigitalPhotos.net

Image courtesy of koratmember/FreeDigitalPhotos.net

“There are plenty of women- and minority-led startup companies, and we want to work with them,”  Lisa Lambert, vice president and managing director at Intel Capital. So why did she say that? Because Intel super-graciously – and presciently – announced its Capital Diversity Fund, specifically set up for women and minority-led start-ups in an effort to mix things up in Silicon Valley. It would seem that the locale already has a rather large presence of white, male CEO’s and Intel would like to make it a little bit more…colorful.  Intel CEO Brian Krzanich would even like to have Intel’s work force, which is currently 24% female and 12% black and Hispanic, come to resemble the U.S. workforce, which is 47% women and 26% black and Hispanic, by 2020. To qualify for some of this cash, the founder of the company must be a woman or minority, and the company must have at least three executives who are women and/or minorities.  There are already a few companies who are getting funding including cyber-security firm Venafi, CareCloud and MarkOne – which makes smart cups. If you’re curious about how smart those cup are, you’ll have to find out yourself. As Mr. Krzanich put it, “…as you seek out diverse points of view, you’re going to produce better returns.” And who doesn’t like better returns?

Did your boss make the list?

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Image courtesy of iosphere/FreeDigitalPhotos.net

If your boss didn’t make the list, maybe consider taking your skills and LinkedIn endorsements elsewhere. You might consider finding gainful employment at Google since Larry Page takes the top spot with a 97% approval rating, according to online job and salary review site Glassdoor.com.  Nike’s Mark Parker, took second just barely missing the top spot by a few thousandths percentage points. Charles Butt, owner of the Texas grocery chain HEB  takes third, with help form a company philosophy that values the welfare of its workforce. And because of that awesome culture you are forbidden to make fun of his last name.  Billionaire Mark Zuckerberg came in fourth  while the aforementioned Brian M. Krzanich, who just announced Intel’s incredible new fund for women and minority-run startups, only came in at number 39. But he still had a 90% approval rating. Oddly enough, LinkedIn’s CEO Jeff Weiner rocked first place back in 2014 with an approval rating of 100%, yet this year his ranking plunged to number 12. However, even with that big drop, Weiner still scored a 93% approval rating. The question is: what exactly did Jeff Weiner do to tick off that other 7%? Hmmm. Something to think about.

Everyone’s a winner…

Image courtesy of Supertrooper/FreeDigitalPhotos.net

Image courtesy of Supertrooper/FreeDigitalPhotos.net

Apparently, Marriott discovered that those super awesome televisions daintily mounted on the walls of the guest rooms weren’t getting much use, as more and more guests were using their tablet, laptops and phones (oh my) to access streaming entertainment. And with those handy, entertaining devices, guests found that that they didn’t have to go through the annoying process of acquainting themselves with a new remote and channel guide. Ugh. So what do? You can’t just chuck those state of the art electronics to the curb. Or can you? Well, no you can’t. Instead, Marriott is teaming up with streaming entertainment service Netflix that will allow Marriott guests to access their Netflix accounts or even sign up for new ones. So next time you need to choose between a Marriott Hotel and some other place to rest your head for the night, now you can take into consideration which hotel has the better in-room entertainment – and mini bar.

Forbes-ulous 400; International (FREE) Coffee Day; Getting Fee’d On

Rank’d…

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Image courtesy of biosphere/FreeDigitalPhotos.net

Forbes 33rd Annual Forbes 400 rankings of 2014 has at last descended upon us to rub our noses in it. The combined wealth of the lucky 400 who made the list totals a staggering $2.29 trillion (note the “t”). For his 21st straight year in a row, Bill Gates leads the pack with $81 billion in his bank account. Warren Buffet is nipping at his heels in the number two spot with only $67 billion. Facebook honcho Mark Zuckerberg fills in the #11 spot. As for the rookies, there’s WhatsApp’s Jan Koum rounding out the #62 spot and Uber Technologies very own Travis Kalanick who is comfortably perched at the #190 spot. At just thirty years old, Elizabeth Holmes is the youngest of the 47 women on the list at #110. She is the founder of a company called Theranos which apparently does something super complicated and impressive in blood testing. We’ll leave it at that. And in case you were wondering -and it’s okay of you weren’t – Oprah Winfrey comes in at the #190 spot. You can catch up on your billionaire rankings  at: http://www.forbes.com/forbes-400?

 Buzzzzzz…

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Image courtesy of amenic181/FreeDigitalPhotos.net

Today, September 29, marks International Coffee Day. And no I did not make that up. If you don’t believe me you can just walk in to your local Dunkin’ Donuts and pick up you FREE MEDIUM-sized cup of joe in honor of the momentous. Incidentally, Dunkin’ Donuts is eagerly touting its latest and greatest dark roast. If you’re feeling frisky, then whip out just a dollar and get yourself a mocha or latte. The idea behind International Coffee Day is to promote awareness for free-trade coffee and raise awareness about coffee growers around the world. Hey, works for me. McDonalds and Krispy Kreme, among others, are also offering some java gratis. But you might want to skip Starbucks today as it’s only offering samples – until 12:00. Whatever.

Fee’d…

Image courtesy of scottchan/FreeDigitalPhotos.net

Image courtesy of scottchan/FreeDigitalPhotos.net

Just in case you weren’t paying attention, penalties for using ATM’s NOT associated with your bank have very rudely risen by 5% over this past year and more than 20% in the last five years. The average fee has stealthily climbed to $4.35 per transaction. There are actually two fees involved – one from your bank, punishing you for being so inconsiderate as to dare use another’s ATM. The other fee comes from the owner of the ATM from whose coffers you, once again, so inconsiderately, dared to withdraw funds. The average penalty for overdraft fees also increased to $32.75 per transaction. Following the 2008 financial crisis, banks had to follow a few new rules and regulations that put limits for what they could and could not penalize you. But, of course, they made up for it by making sure those penalties for which they could charge you went up. A lot. If these fees are really getting to you, check out credit unions, smaller local banks and online banks which tend to have less fees – and less (or no) strings attached.