Ya-Oops! Internet Biz Breach; Tesla Calling Out Wolverine State; Budget Beauty Goes IPO Glam

Out of breach…

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Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

As if things couldn’t get any dicier at Yahoo, the company is now facing the wrong end of a security breach with roughly 500 million Yahoo accounts caught in the fray of the company’s core internet business. And all this as Yahoo hopes to close a $4.8 billion deal with Verizon so the telecom giant can acquire those compromised core internet assets. It seems talk of a breach surfaced way back in August when a story broke out about a hacker, who goes by the name “Peace,” sold a ton of personal info that included birthdates, usernames, scrambled passwords etc. for the price of three bitcoins. In case you were wondering, because I know you were, that’s around $1,800. The question of the day is should Yahoo have come clean about the breach sooner and been a bit more proactive? After all, there are laws regarding breaches in 48 states that stipulate that companies must alert affected customers within a certain amount of time. But Yahoo might be in the clear since no social security numbers or other financial information was supposedly involved.  For those who have Yahoo accounts and want to take additional precautions, besides changing passwords, they can visit http://www.identitytheft.gov.

Denied…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Tesla’s not very happy with Michigan right now as evidenced by the lawsuit it filed against the state and its Governor Rick Snyder. Tesla is screaming foul, calling a 2014 Michigan law unconstitutional, because it seems to have been designed to protect auto titan and Michigan darling, General Motors. Apparently, the Great Lake state doesn’t take kindly to automakers selling their cars directly to (gasp!) consumers and refuses to issue a dealership license to the maker of the pish-posh battery-operated cars. Car salesmen find Tesla’s business model positively odious because it has the car company selling its motorized wares directly to the folks who will ultimately be driving them, thereby cutting out the middleman i.e. car salesmen. Tesla, which is also suing Michigan Attorney General Bill Schuette and Secretary of State Ruth Johnson – her department officially rejected Tesla’s license application – is hoping a judge strikes down the the law because it impedes commerce between states. Tesla is currently barred from selling and repairing its cars in Michigan, as well as not being licensed to sell them in Connecticut, Texas and Utah.

IPO glam…

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Image courtesy of keakguru/FreeDigitalPhotos.net

There’s a new darling on Wall Street and this time it’s one that has very little to do with tech. Enter e.l.f. beauty  – which stands for eyes, lips, face (duh!) – a cosmetics company with 9 stores in the New York area, two stores in the L.A. area and is also sold in 19,000 retail locations including Walmart and Target, of course. E.l.f., which trades on the NYSE exchange under the ticker symbol ELF, is positively fabulous if only because of its super-special price point: it’s considerably lower than other brands with most of its products selling for $6 or less. Backed by private equity firm TPG, the IPO was set to debut between $14-$16 a share, but was then later priced at $17 per share with 8.3 million shares up for grabs.  None of that seemed to matter when it opened this morning at $24 a share and then soared 59% to $27.09. That gave the company a value of over $1 billion which is not bad for a company that sells a bargain product in a very crowded $57 billion global cosmetics industry.

Elon Musk Fails to Electrify Wall Street; H&M’s Untrendy Earnings; Dell’s List for Female Entrepreneurs

It’s electric…

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Image courtesy of digitalart/FreeDigitalPhotos.net

Shares of Tesla took a bit of a dive today as investors attempted to illustrate how they feel about Elon Musk’s idea of buying out his other big endeavor, SolarCity. Musk, who owns about 19% of Tesla, feels that a SolarCity buyout will cut costs for both companies and magically create wonderful new lucrative opportunities. He also believes customers will be inspired to buy up a threesome of his electric cars, home batteries and solar system. Did I mention, by the way, that Musk also own 22% of SolarCity? Just saying. Investors, however, think it’s a bad move for Tesla to take in SolarCity, which would add about $2.6 billion in debt to the electric car maker.  Besides, investors aren’t feeling the love over SolarCity’s growth prospects and the increasing competition that keeps popping up. Tesla has yet to turn out a profit and isn’t even expected to do so until 2020. Of course, Musk disagrees with this analysis and is convinced that this is his year to start making some cold hard cash. Plus, he thinks a SolarCity buyout would put Tesla’s valuation at $1 trillion, and I’m guessing he likes how that sounds. SolarCity’s stock, by the way, is down 50% so far this year.

Un-trendy…

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Image courtesy of digitalart/FreeDigitalPhotos.net

Fast-fashion retailer H&M had a disappointing second quarter with profits falling a very un-trendy 17% to $847 million. At least sales went up, but only by 2%, to a decent $6.56 billion. But if that’s not bad enough, shares of H&M are down 17% so far this year. Naturally, the weather – the cold weather, this time – and the strong dollar took their share of the blame, as did tomorrow’s Brexit vote, I kid you not. Sales in the U.K., H&M’s third largest market, fell 7% and CEO Karl-Johan Persson thought it might have been because of the looming “Brexit” vote. Because, after all, aren’t most tweens and teens in Britain pondering that issue while they do their fast-fashion shopping at H&M? Persson, by the way, is not a “Brexit” fan. Incidentally, sales also fell in Portugal , France and Switzerland, yet there is no talk of any of those countries pulling out of the EU.

Woman up!

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Image courtesy of iosphere/FreeDigitalPhotos.net

There’s a new list out brought to us courtesy of Dell that ranks cities according to how good they are for female entrepreneurs. Called the Women Entrepreneur Cities Index, cities on this list are measured according to how well they attract and support female entrepreneurs of high potential who seek to grow and scale their business. In order for a city to even qualify, it first had to be categorized as a city that was already hospitable to entrepreneurs in general, regardless of sex or race. With that out of the way, the index took into account 71 different indicators – which I will not list, you’re welcome – and divided them into five different categories including, markets, talent, capital, culture and tech. The cities were given scores in these areas and the results may – or may not – surprise you. The Big Apple came in first with a score of 58.6 out of 100. The Bay Area followed second with a score of 58.3. Across the pond, London snagged the third place spot while Paris took ninth. Other U.S. cities that pulled in respectable scores included Washington DC in 7th place, Seattle, Washington in tenth place and Austin, Texas coming in twelfth. If you didn’t see your city listed then fear not as only 25 major global cities were taken into account for this particular list. And here’s a fun fact: A correlation was found between how much an area fosters and nurtures female entrepreneurs and that area’s general economic growth. They go hand in hand. How ’bout that.

Tesla Execs Make a “Break” For It; Aeropostale is Down and Out, Almost; Two Executives Are So Over Under Armour

Awkward…

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Image courtesy of cooldesign/FreeDigitalPhotos.net

Two major executives at Tesla are making a break for it just as the car company is about to (finally) unveil its Model 3. Today’s departure announcements particularly unnerved Wall Street, sending Tesla’s stock down 4% on the news. One of the departing execs is Greg Reichow, the global VP of productions, who was also one of the highest paid executives in the company, taking home a package reportedly valued at $6.4 million. Reichow, who arrived at Tesla in 2011, will graciously stay on until his replacement is properly ensconced in his or her ergonomically designed executive desk chair. But what’s weird is that Reichow’s departure is being called a leave of absence, a classification that doesn’t typically necessitate successors. Also making a not-so-fond farewell is VP of manufacturing, John Ensign. Apparently the executive exits have to do with delays and other assorted hiccups that have been plaguing Tesla. But that’s not the official word coming out of the company. What is official is that a whopping five vice presidents have left Tesla just this year and mind you, it’s only May. In the meantime, Tesla’s Elon Musk is calling these exits a “well earned break.” Hmmm. Not the way I would have phrased it.

Market slap…

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Malls all over the United States and Canada are about to lose a neighbor. Aeropostale, purveyor of apparel that appealed primarily to teenagers, is closing over 100 of its stores for being not profitable. In fact, those stores were so not profitable that the company lost $17 million from them just in 2015. But at least the company expects to make $21 million in revenue from liquidation, which should last from six to eight weeks. No worries if you miss your Aeropostale location as there will still be over 600 left from which to shop. Just don’t bother shopping in Alaska, or Hawaii, or Times Square in New York, or…well, you might want to check before you head out to see if your preferred Aeropostale location is still standing. It may be hard to believe now, but once upon a time, Aeropostale’s market cap was worth $2.6 billion, with shares above $30. Those days, however, are long gone as its market cap might be scratching at $2 million and the stock has been delisted from the New York Stock Exchange after trading under 3 cents this week.

A chink in the armor…

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Under Armour has its own share of departures, bidding a (fond?) farewell to Chief Merchandising Officer, Henry Stafford, and Chief Digital Officer Robin Thurston. The company, who has endorsement deals with NBA’s Stephen Curry and golfer Jordan Spieth, generated $4 billion in sales last year, yet news of these departures spooked investors enough to send the stock down 6%. After all, a Chief Merchandising Officer’s role is integral to a brand that sells footwear and apparel considering their vision sets the look and feel. No minor details. Apparel, by the way, is Under Armour’s largest category. Just saying. Thurston had been with the company since 2013, when the company he co-founded, MapMyFitness, was acquired by Under Armour to the tune of $150 million. The company says that it’s just a coincidence that the two executives are making a break for it at the same time, at least that’s what a company memo said. But it’s a good thing that those two executives also have non-compete clauses in their contracts because it would be kind of awkward if they found themselves working for the competition. Well, awkward for Under Armour, I suppose.

Supreme Smackdown to Apple; Wall Street Bonuses Shrink, But I’d Still Take One; Amazon Store: The San Diego Sequel

Un-appealing…

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Not everyone has the ability to say no to one of the world’s most valuable companies. But the Supreme Court did just that to Apple when it graciously told its lawyers that it was not interested in hearing its appeal on an earlier ruling from June of 2015. Now, the iPad maker has to pony up some $450 million for its role in conspiring with publishers to increase book prices that apparently violated Federal antitrust laws. Apple feels that this ruling will “chill innovation and risk taking.” Maybe. But consumers still didn’t appreciate the way that Apple caused e-book prices to go from $9.99 to $12.99 and $14.99. Except Apple didn’t act alone, bringing in Hachette Book Group, Harper Collins, Penguin, Simon & Schuster and MacMillan to help fleece e-readers everywhere. Basically, any publisher from whom you’ve ever read a book helped facilitate this antirust breach. Apple wanted to make sure the iPad got a nice little boost when it made its grand debut in 2010. So publishers got to set the price they wanted for e-books on Apple devices and in return Apple would enjoy a 30% cut of sales. This, my friend, is the nefarious practice known as “agency pricing.” Publsihers played along because they didn’t like that the price of e-books on Amazon was going down and this method provided a convenient way to recoup that cash. The publishers started charging Amazon the same prices that it charged Apple, forcing Amazon to raise its prices also. Apple will pay $400 million to e-book customers in the form of credits, in addition to $20 million to the thirty states that sued. Of course, that doesn’t include the $30 million in legal fees that Apple’s lawyers get to collect or the changes that Apple is being forced to make to its business practices.

Whose your daddy…

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New York State Comptroller Thomas DiNapoli released some pricey data for one of New York’s top industries: Securities. Not that this will have you shedding tears, but the average Wall Street bonus fell 9% for 2015, checking in at $146,200. And while most people don’t come close to making that kind of cash in a year, the average Wall Street-er scored that, in addition to his or her salary. While that salary might seem high, consider that in 2006, the average Wall Street bonus was $191,360. And even though a whopping $25 billion worth of bonuses were awarded in 2015, it was 6% less than the previous year, as profit from broker-dealer operations dropped $1.7 billion to $14.3 billion. Profits for the six biggest banks hit $93 billion, by the way, which is more than 35% higher than the previous year. If you can believe it, that figure is still not as high as it should be and signals that the economy is still having a hard time bouncing back from 2008’s fiscal crisis. If you’re thinking about a career in securities, that might not be such a bad idea as the average Wall Street salary rose 14% in 2015 to $404,800. Except that prospects for 2016 look a bit grim and are actually expected to drop. There are approximately 172,400 people employed in the securities industry and 4,500 jobs were added in 2015. That figure, however, is still 8% less than it was pre-2008 fiscal crisis. By the way, these figures, we are warned, are not accurate estimates since they don’t include stock options and other forms of deferred compensation. The numbers also don’t include those for securities employees outside of New York City.

Isn’t it ironic…

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Mega e-commerce site, Amazon, arguably best known for being the largest online marketplace in the U.S. – not to mention some really great television –  is poised to open its second brick-and-mortar store where it will sell books, naturally, in addition to its own comprehensive line of tablets and devices. In fact, there will be nothing in the store that you wouldn’t be able to purchase on the company’s website. Rumors of the brick-and-mortar first surfaced when a big sign went up during the summer over the vacant space in a swanky San Diego mall. Then, last month, job postings for the 7,500 square foot store began appearing. Amazon’s store will be in good company as Tesla and Apple will be its mall neighbors. Meanwhile, the revenue expected from setting up an actual store isn’t expected to leave any meaningful dent in the company’s earnings. I guess it’s just a cute gesture for people who prefer to leave their homes to enjoy an actual physical shopping experience.

Elon Musk Sets a Record; Whole Foods Says Sorry; Labor Department’s Mixed Messages

Electrifying…

Image courtesy of digitalart/FreeDigitalPhotos.net

Image courtesy of digitalart/FreeDigitalPhotos.net

Elon Musk can sit pretty for the next few minutes and now would be a good time for the Tesla haters – if there are any – to make a run for it. The electric car company scored some rockin’ good digits in its latest quarterly earnings reports brutally beating estimates with a 52% surge over last year’s quarter. But it gets better as the company also set a new record, selling over 11,500 cars during this period. To be exact,11,507 drivers are now tooling around in their brand new $75,000 Model S sedans. Yes, I am jealous. And I am about to get even more jealous as Tesla gets revved up to unveil the Model X – an all-wheel drive SUV.  Elon Musk’s plan is to find new homes for 55,000 Telsas over 2015. Problem is, it’s already July and he isn’t even halfway there, having sold just 21,537 thus far. Even though haters insist that there’s simply a lack of demand for the very swanky electric automobile, Tesla execs blame the company’s limited capacity for production. So there.

Isn’t that a bit much for strawberries?

Image courtesy of zirconicusso/FreeDigitalPhotos.net

Image courtesy of zirconicusso/FreeDigitalPhotos.net

Whole Foods might be the business darling of organic food, but some of their business practices were nothing short of toxic. Executives at the company admitted that some customers were overcharged for fresh cut fruits, fresh juices and even sandwiches. But apparently, it had only been happening in New York City where residents are already used to overpaying anyways. Next time you find yourself in the sliced fruit section at Whole Foods, check out the riveting video starring Whole Foods executives John Mackey and Walter Robb, flanked by produce on a television monitor, perhaps hovering over  Kingfisher melons balls and kale shakes. In the video, the gentlemen apologize  for the actions of a small percentage of its employees who “mis-weighed” some items, and priced them higher than what they should have been. In fact, around 80 different items were tested and they all weighed less than their worth. But, apparently there were also some items that were marked lower than what they were supposed to be. That’s how it determined that the errors were unintentional. But the Co-CEO’s apologized for that too. All this comes after a very unflattering investigation by the NYC Department of Consumer Affairs that called it “the worst case of mislabeling they have seen.”

Seven year itch…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Employers added 223,000 new jobs in June but the remarkable thing about it – I mean besides people getting paychecks – is that the unemployment rate hit a seven year low falling to a somewhat respectable 5.3% from May’s 5.5%. Unfortunately, wages didn’t behave as respectably and stayed put. Nevertheless, these numbers point to an economy that is getting its juice back and may even cause those dudes and dudettes at the Fed to raise interest rates. But before we get all worked up, the Labor Department also warned us that the number of Americas working or simply looking for work fell as well. It’s a problem because it could mean that many folks who would love to have some steady gainful employment are downright discouraged and put the kibosh on their job hunt. At least the folks who did score jobs are helping the economy by spending their hard-earned cash.

McDonald’s Turnaround Plan Needs Salt; Warren Buffet Likes His Sugar; Chevy Volt Wants to Electrify

Would you like to supersize that?

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Image courtesy of pakorn/FreeDigitalPhotos.net

McDonald’s CEO Steve Easterbrook finally revealed to all who were maybe mildly interested about his big plan is to steer McDonald’s back towards fiscal awesomeness, all in the course of a 23 minute video. The world’s biggest burger chain wants to re-franchise 3,500 of its stores. Because franchising offers “stable and predictable cash flow” from collecting fees, it will supposedly save the company about $300 million a year.  And who doesn’t like saving $300 million. Then, Easterbrook wants to make the company’s corporate structure and bureaucracy less “cumbersome” by dividing the company up into four neat little parts. Well, maybe not little. But certainly neater.  The first part is all about U.S. stores. International markets like, Australia and the U.K make up part number two. The third part is labeled high growth markets  – think China and Russia. Then, all those other countries in the world make up the fourth group.  Of course, no master revival plan would be complete without incorporating a customer-focused approach and the ever-menacing prospect of…accountability. But hey whatever works. And something needs to after the company posted a 2.3% drop in sales and revenue that was way too short of its target. Despite detailing this new plan Mc Donald’s couldn’t get Wall Street excited enough to send shares up, even a little.

Enjoy a Coke with Warren Buffet…

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Image courtesy of tiverylucky/FreeDigitalPhotos.net

In case you couldn’t make it to the the Berkshire Hathaway shareholders meeting this weekend, also known as Woodstock for Capitalists, here are but a few of the pearls from that auspicious event. Wells Fargo, Coke, IBM and AmEx rock, at least according to the Oracle of Omaha. Mr. Buffet clearly knows a thing or two of what he speaks since his company has a market value of a staggering $350 billion. When he discussed Coca Cola and the $16 billion stake his company owns in it, the debate about the adverse health effects of sugar didn’t seem to concern him. He feels that people enjoy Coke and thus, it apparently makes them happy. Unlike Whole Foods, which he said, “I don’t see smiles on the faces of people at Whole Foods.” No doubt Whole Foods was not happy about that comment. He was also asked about his involvement with 3G Capital with whom he is now buying Kraft Foods. People have taken issue with 3G over its practice of buying companies and then laying off many of its employees. Mr. Buffet, however, said, “I don’t know of any company that has a policy that says we’re going to have a lot more people than they need.”  How charming. As for naming a successor, well, he didn’t.

Low-voltage…

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Even though gas prices are pretty low, making gas-guzzling SUV’s that much more appealing, that’s not stopping car companies, like GM, from parading out its latest eco-friendly models. The 2016 Chevy Volt model is making its debut and what is supposed to be so electrifying about it is that it’ll be around $1,500 less than the 2015 model. It’ll also get 30% more mileage from a single charge than the 2015 model. It’s a bit redesigned and there’s even a $7,500 federal income tax credit. But to be fair, it’s not a fully electric vehicle because if you find yourself coasting along  the highway – or any road, for that matter – and the battery juice runs out, the Volt becomes just another regular gas guzzler.  If that doesn’t bother you – and why should it – then consider that Chevy is offering 0% financing for 72 months for qualified buyers. Unqualified buyers should take the bus. California’s even offering a $1,500 rebate which pretty much means that GM doesn’t think there’s going to be a waiting list for this particular automobile. Because let’s face it, a Tesla it’s not.

Elon Musk’s Mighty Tweet-ful; Confident Are We? Yes We Are; Cable Companies Unite

Surprise!

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Tesla shares continued its climb today all because of one itty bitty tweet Tesla CEO Elon Musk tweeted yesterday. It helped, by the way that he has close to two million followers and the tweet in questions was re-tweeted thousands upon thousands of times. The tweet went as follows: “Major new Tesla product line – not a car – will be unveiled at our Hawthorne Design Studio on Thurs 8pm, April 30.” Hmmm. Whatever could that be?, thought everybody on Wall Street, and beyond. The top guess is a battery for buildings that stores energy from a home’s solar cells. Definitely a useful item, provided it works. Incidentally/conveniently, Mr. Musk is chairman of Solar City. His tweet-timing was impeccable, as pre-suspense-filled tweet, shares of Tesla were hovering around $181.80, which might seem impressive, just not for Tesla. Shares of the company had been going south on news that competition is fierce and things in China aren’t going as smoothly as thought. Post-suspense-filled tweet, shares went upwards of $192.

In confidence…

Image courtesy of Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

More jobs. More money from those jobs. Americans are confident that these pleasant things are in store for the U.S. economy and if you don’t believe me you can just check out the latest reading from the Consumer Confidence Index. Americans aren’t just a little confident, either. They’re a lot confident. A lot more confident than they were last month and a lot more confident than the 96.4 predicted by analysts. A year ago, that reading was a paltry 83.9. Last month’s reading stood at a respectable 98.8, and analysts expected little if any change to these digits. Instead, the reading took a major jump to 101.3, the second largest reading since December 2007. Americans are sure that spending will improve and increase when and if the weather (ever) gets better. I did say if, mind you. According to the Commerce Department, spending didn’t change much in February but since it accounts for 70% of the economy, everything really will be awesome (thank you, Lego movie) if and when it goes up, according to our confident expectations.  Interestingly enough, when polled, a majority of consumers confidently said they were in the market for a car. Just not so much a house. Or a major appliance for the house. Or a even a vacation to get away from their house. Maybe next month they’ll feel differently.

Charter this…

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Image courtesy of ratch0013/FreeDigitalPhotos.net

So cable companies are finding themselves in a bit of a bind lately because non-cable entities are putting a huge damper on their sales. By non-cable entities, I do mean companies such as Netflix, Amazon’s version of television and other purveyors of finely produced, amply-entertaining, award-winning, nail-biting, binge-worthy fare. So what’s a cable company to do? Well lately, several of them have begun merging/buying/joining with each other in an effort to pick up subscribers and soften the blow to their sales figures. Today’s latest deal involves the fourth largest cable company in the U.S., Charter Communications. Charter is looking to pick up Bright House networks, the sixth largest cable company in the U.S, to the tune of $10.4 billion. For this lofty sum of money, Charter will pick up 2 million more subscribers and become the second largest cable company in all the land. Because Bright House has all these customers in Central Florida, Alabama, Michigan, Indiana and California, it’ll give Charter a nice big hold on those areas, provided the deal goes through, of course. News of the deal sent shares of Charter north. As for Bright House, well, it’s a privately held company.

GM is Looking to Outclass Tesla: Über is Finally Making Friends Again; Job Market is Looking Even Better Than Our Wildest Dreams – Sort of

Tesla? Tesla who?

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

The US auto industry sold some 16.5 million vehicles this year. Yet only 120,000 of those were of the electric and hybrid ilk even though it seems like everyone and their mother drives one. Interestingly enough (or not), some 20 electric/hybrid models have made their presence felt in the automobile market. With oil prices dropping, the appeal of these anti-gas guzzlers are dropping too. So what better time than for GM to announce that Tesla needs to uh…step aside and make way for not one, but two electric/ hybrid vehicles it plans to officially churn out by 2017. But Tesla’s are so cool, what’s to worry? Well, for one, GM’s Chevy Bolt (such an adorable name I can’t stand it and it even rhymes with the Chevy Bolt) boasts a range of 200 miles on a single charge. If that’s not electrifying then I don’t what is. Oh wait, yes I do. The price tag will be $30,000, $5,000 less than Tesla’s Model 3 also due out in 2017. To be fair, no word on how options will affect those digits. By the way, if you find yourself cruising the streets of Palo Alto, you might just notice quite a bit more Chevy Volts tooling around than…dare I say it, Teslas. Just saying.

Wanna borrow my notes?

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Über is finally making headlines for not getting shut down. Well, almost. The ride-sharing app made a deal with Boston officials to share its “smart data” all in the name of goodwill. And maybe some good press, too. While protecting the privacy of its riders and drivers, Über and Boston officials hope to solve some of the city’s problems like easing traffic congestion and improving local infrastructure. Fills you with warm fuzzies, doesn’t it? It was seen as a particularly surprising move for two reasons: one, last month saw the arrest of a Boston area Über driver on assault charges. Two, Über didn’t hand over its “smart data” to officials in New York City even though they asked for it too. In fact, New York’s mighty and powerful Taxi & Limousine Commission managed to shut down all but one of Über’s operations for not coughing up the data. However, Über continues to operate pending the results of an appeal. Rumor has it that Über is in talks with New York City officials, much to the discontent of the TLC, who denies “talks” are even taking place with the competition. By the way, Über announced lower fares in 48 cities. New York City isn’t one of them. As a matter of fact, nor is Boston. Go figure.

Labor Market High…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Job openings in the US hit a 14 year high in November. When the job market posts such impressive digits, you know what that means, dontcha? It means that great numbers are expected for 2015. No seriously. It really does. November saw job openings increase by 2.9% to 4.97 million jobs. That’s a lot of benefits. Not since January 2001 has the job market been such a pleasant topic of conversation. All this hiring gets employers thinking that they’re going to need even more peeps to help churn out all those goods and services which we apparently need and cannot go without. So, provided that all this fabulous job hiring continues we might just be able to look forward to…dare I say it…wage increases. But that’s experts talking. Not me. Just saying. Then there are all those quitters. A good job market loves quitters. For real. Because when quitters quit it means they have moved onto better jobs/careers/life changes. So there.

President Obama Tells CEO’s How to Invest (it’s true); Tesla Electrified Owners; Hershey Welcomes Back Sugar

 Oh and by the way…

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

As I mentioned yesterday, the Business Roundatble got together to dish out its thoughts and projections for the economy. If you recall, the BRT is a group of CEO’s “of leading U.S. companies working to promote sound public policy and a thriving U.S. economy.” I’m down with that. Not to be outdone, President Obama, who is not a CEO, told the BRT group, who by the way, represent around $7.4 trillion in annual revenue, that they should invest in infrastructure which apparently is a fabulous “foundation for growth.” It should be duly noted that this business advice is coming from the same person who is responsible for the very unaffordable Affordable Healthcare Care Act. Just saying. President Obama also went on to say that the thorn in his executive side, the bane of his Presidential existence, also known as Republicans, would be sure to challenge any source of funding if it meant new taxes. And just when I was looking forward to paying more taxes together with my unaffordable health care, darn it! Hence, according to Mr. President, you needn’t hold your breath for any new infrastructure bill to pass. And while private investment in infrastructure is no new concept, especially in other countries, here in the United States, legal and tax issues don’t exactly scream, “Invest in infrastructure!”

Zap to it…

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Can Tesla do no wrong? Well it can but apparently not when it comes to Consumer Reports, which just reported that the Tesla Model S is so beloved amongst its owners that 98% of them would repurchase the vehicle (But what of the other 2%?). The car which goes for close to $70,000 is even a fave with the team over at Consumer Reports. Other cars that owners loved were the Chevrolet Corvette Stingray and the Subaru Forester. Apples and oranges, I know. The Kia Rio, sad to say (actually ambivalent) failed to impress its owners. However, it was the Nissan Versa that found itself at the bottom of the list. And while life is good at the top for Tesla, it best be warned: BMW is nipping at its shiny bumper. Especially with its i3.  While Tesla’s superchargers across the country (and beyond) can be used only with Teslas, BMW is about to put out its own series of superchargers that will be compatible with other models. Except for Teslas. And Nissans (especially that Versa).

I know this sounds corny but…

Image courtesy of artur84/FreeDigitalPhotos.net

Image courtesy of artur84/FreeDigitalPhotos.net

High-fructose corn syrup beware! You’re on the chopping block having gotten a bad rep over the last several years by getting blamed for a rise in obesity and diabetes. While there isn’t enough evidence that corn-syrup is exclusively to blame,  The Hershey Co. has still decided to kick that ingredient out of its delectable confections.  Instead it will once again use perennial favorite , and old time classic, sugar, instead of the high-fructose corn syrup/sugar cocktail it had been using for so many years. Sugar, that formidable staple which holds a prominent place in my own personal food pyramid, will once again reign supreme for Hershey confections.  However, there is no official time-frame for the switch –  only an acknowledgement that consumers, my self included, much prefer sugar over high-fructose corn syrup.  One of the many groups not pleased by this turn of events are those involved in corn futures. Refiners have even cut costs just to compete with sugar. But seriously, can you really compete with…sugar?

Tesla’s Earnings Are Charged; Whole Foods Surprises; Posh Earnings for Kate Spade

It’s electric…

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Tesla investors are squealing with energy efficient delight today as the electric car company released third quarter earnings that beat the Street. Perhaps you might have noticed a few more Model S cars tooling around your neighborhood? Well it’s no coincidence that Tesla set a delivery record for those fabulously, environmentally-friendly automobiles. Expect to see even more of them as CEO Elon Musk plans to ship out 50,000 Model S cars in 2015. In fact, just in this quarter alone, Tesla whisked off over 7,800 cars to new owners – over 41% more than last year at this time. Unfortunately, the company didn’t fare so well on its net loss – a whopping $75 million. However, the company blames stuff like the costs involved in opening stores in Asia, not to mention all those pesky fees for research on its upcoming SUV. Analysts predicted Tesla would lose a penny a share. But wouldn’t you know it – it raked in $0.02 per share instead. Analysts also predicted revenues of $892 million but were foiled once again as the company posted $932 million in revenue.

Whole-Y organic cow…

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

It wasn’t the best quarter, or year, for that matter, for Whole Foods. After all, having to compete against mainstream supermarkets that offer up organic fare for so much less is…hard. But it looks like the grocery chain did okay, after all, seeing as how it reported a 5.8% profit increase in its quarterly report. Perhaps it’s those touching, poignant commercials that have caught your organic eye. Or maybe you enjoy the perks from the Whole Foods customer loyalty program (who wouldn’t?). The company also put the spotlight on value and its attempt to lower prices. That profit spike was also probably helped by its tech offerings like Instacart and the Apple Pay option. Whatever it was, the green green grocer managed to bag a $128 million, $0.35 per share profit from its 360+ stores. There was only one not-so-slight problem: Whole Foods had its lowest growth rate in four years.

Now that’s pretty…

Image courtesy of Sicha Pongjivanich/FreeDigitalPhotos.net

Image courtesy of Sicha Pongjivanich/FreeDigitalPhotos.net

Nothing says fashionable like a 30% rise in sales. Which must make Kate Spade & Co. very posh indeed. Especially because those surprisingly fashon-forward numbers came after the company said its margins would likely be an “issue.” The trendy label even saw shares climb 10% in pre-market trading today. All while fellow fashion companies and competitors Michael Kors and Coach have been seeing numbers that would make even the most durable fabrics want to shrivel up into nowhere. So what gives? Well for one thing, at Kate Spade promotions are out, for now anyways. What is in are theme-driven sales. You might not care for the lack of promotions not being offered but it’s certainly working for Kate Spade’s numbers. The company earned $0.02 per share  with net sales up 36% to over $250 million. To be fair though, analysts did expect $4 million more. But that might change now that it is teaming up with the Gap. The company has 98 stores and 57 outlets. Kate Spade is hoping it can double its sales by the end of 2016 to $2 billion (aren’t we all?).