Choo On This: Luxury Shoe Brand Not in Step with Coffee; Jack Ma Isn’t Feeling the Automation Love; Supreme Court to GM: Too Bad For You

Well-heeled…

Jimmy Choo

Luxury shoe brand, Jimmy Choo, will be getting a new owner now that JAB Holding Co. has decided that the company, wants to focus on its more carb/caffeinated brands. And who can blame the billionaire Reimann family that controls Jab. In the last few years, the company spent billions picking up various other food and beverage entities in the form of Krispy Kreme and Panera Bread, and well, 125 millimeter stilettos don’t really go so well with the stuff that carb dreams are made of. But Jimmy Choo may prove to be a very tempting company to a lot of potential buyers. While a pair of Jimmy Choo’s, whose fashion stock soared thanks to Carrie Bradshaw and “Sex and the City”,  may not hold the same appeal as a fresh hot donut – well, to some anyway – the fact is that shares of the luxury goods company are up 44% since the company’s debut back in October of 2014. JAB had the good business sense to pick up the iconic shoe company for 500 million pounds back in 2011. Revenue for 2016 increased over 14% to $465 million with a 43% profit increase to $54.4 million. Wall Street also digs the idea of a sale as shares of Jimmy Choo, which are traded in London, rose over 10% today.

The Jetson’s it ain’t…

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In case you were in the mood for a downer, then turn your attention to Alibaba founder and chairman, Jack Ma. During a conference hosted by the China Entrepreneur Club, Ma suggested that the future will suck. Because of robots.  He’s convinced that in the next thirty years, “the world will see much more pain than happiness.” Ma expects our automated companions to take over the workplace which might mean fewer work days but also fewer positions that require actual human attention. And the watercolor talk will be decidedly less entertaining. In fact, Ma is convinced that within thirty years, a robot will eventually grace a Time Magazine cover for being the “best CEO.” So if you think your boss has no personality now, just wait. And before you go calling Ma overly-dramatic, consider that according to the World economic Forum, it is estimated that there will be a net loss of 5 million jobs across 15 major economies thanks to automation. Sure technology is great, as long as it’s not taking over your paycheck.

Well at least they tried…

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GM tried to get the Supreme Court to block hundreds of lawsuits over its faulty ignition switches that could end up costing the automobile company billions. But the Supreme Court said no dice and the lawsuits can proceed. The reason: The company’s 2009 bankruptcy. If you recall, those faulty ignition switches were responsible for 125 deaths and more than twice as many injuries. More than 2.5 million vehicles were recalled and $2.5 billion worth of settlements dished out. GM knew about the problem before the bankruptcy so technically, it’s on the hook, since it could have just as easily notified all the owners of the vehicles that had the problem. Of course, that decision did not sit well with GM and a spokesperson said as much saying the appeal “was not a decision on the merits…” Amazingly enough, the appeal denial didn’t even freak out Wall Street – this time anyway – as shares actually rose today, albeit slightly.

Bill Gates Is So Not Into President’s Budget Blueprint; Does Uber Have Some High-Level Job Openings?

Just letting you know…

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Chances are if Bill Gates is not into your budget blueprint, then maybe it’s worth it to make a few (hundred-billion dollar) changes to it.  Which explains one of the reasons why the world’s richest man is in DC today, to have a little chat with the President of the United States.  Bill Gates, who knows a thing or two, isn’t taking too kindly to President Trump’s budget blueprint, particularly the part about cutting foreign aid. Gates is of the very informed and highly researched opinion, that providing foreign aid not only assists the world’s poorest individuals, but it also helps Americans. A lot. Gates said as much in a recent TIME op-ed piece, explaining how foreign aid actually decreases global conflicts, strife and get this…political instability. There’s a joke in there somewhere, but I’ll leave you to make it. Feel free to leave it in the comments. In any case, Mr. Gates went on to say, “These projects [foreign aid] keep Americans safe. And by promoting health, security and economic opportunity, they stabilize vulnerable parts of the world.” I think the philanthropist billionaire/Microsoft co-founder just might be onto something, no?

Outta here…

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As if a lawsuit from Google and claims of sexual harassment couldn’t make things any worse for Uber, things are about to get even more awkward – if that’s possible – with two very high-level execs saying buh-bye to the ride-hailing app. First we have President Jeff Jones, who is leaving after less than a year on the job. It seems that a few weeks ago, Uber CEO Travis Kalanick announced he was seeking new leadership, along with plans to install a new COO. Rumor has it that that bit might have had something to do with Jones untimely departure. In the meantime, Jones explained, in his own special spin that “…the beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber, and I can no longer continue as president of the ride sharing business.” You just know there’s an ugly, yet presumably very juicy story behind that articulate statement. But I guess we’ll just have o wait for the book to come out. Naturally, Uber officially thanked Jones and wished “him all the best” no doubt with the utmost sincerity. The other Uber exit is brought to us by Brian McClendon, who is set to ditch his post of Vice President of Maps and Business Platforms. Mr. McClendon announced plans to return to his native Kansas to pursue a career in politics. He’s apparently very disenchanted with the state of Kansas’ fiscal crisis and presumably the rest of the political climate. At least that’s the story he’s sticking to.

Buy buy baby…

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Well, at least somebody has finally stepped up who has a bit of faith in Snap Inc. Enter James Cakmak, a Wall Street analyst with the firm Monness, Crespi, Hardt, who gave the app its very first – and only –  “buy” rating, slapping it with a $25 price target. And fyi, Snap identifies itself as a camera company. Got it? Having the dubious distinction of being crowned as the biggest tech IPO in two years, Snap managed to raise a whopping $3.4 billion its first day out. It went up almost 60% on its first day but since then came barreling back down over 25%. Its shares have been losing steam over concerns that the company has a ridiculously high valuation, yet grim prospects for profits. Cakmak graciously said that he’s giving Snap the benefit of the doubt because, even though he himself is unsure if Snap will be able to crank out an actual profit, he likes the way the company stacks up against its competitors. Awww.

 

Things are Getting a Little Seated at Yahoo!; IRS Has Close to $1 Billion Up for Grabs; Wall Street’s Crazy ‘Bout a Sharp-Dressed Man

Board to tears……

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Yahoo added two directors to its board, bringing the grand total to nine seats, all in the hopes of making things that much more difficult to deflect attacks from hedge fund Starboard Value. Starboard Value has not been shy about expressing its disapproval over the way CEO Marissa Mayer has been handling matters at the tech giant. Starboard is on a mission to make an attack and win seats on the board so it can run the company in its own special way. The new folks coming to fill those seats are former Morgan Stanley executive Catherine Friedman and former Broadcom Corp CEO Eric Brandt. The seats originally belonged to tech entrepreneur Max Levchin and Charles Schwab. Yes, that Charles Schwab. But both vacated their seats amidst all the squabbling at Yahoo over how to run the company without losing tons of cash in the process. Board re-election comes later in the year but nominations are due this month and the process should be a fun little corporate spectacle as Yahoo has been under some fierce pressure to sell off its core web assets, including Yahoo Sports and Yahoo Mail. Among the potential suitors who are rumored to be interested in picking up those core assets are Verizon and Time, And now, instead of looking to grow the company, Marissa Mayer has switched courses and would be really happy to just execute a $400 million cost-cutting plan. That’s in addition to shareholder pressure of trying to spinoff of the company’s sizable share in Alibaba, without actually having to pay any taxes on the deal. That effort should be entertaining in and of itself.

In it to claim it…

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The IRS is sitting on close to $1 billion in outstanding refunds from 2012. The question is, can you claim any of it? Well there are an estimated one million taxpayers who qualify for a piece of that pie since they apparently failed to file their 2012 IRS tax return. Taxpayers get a three-year window to file a claim based on the return due date which this year happens to be April 18, 2016. All you’ll need to do is fill out the 2012 1040 form and collect the w-2, 1098, 1099 or 5498 from that same year. Just check out the IRS website if you don’t believe me. But filer be warned: If you didn’t bother filing your 2013 and 2014 return, then don’t bother collecting your refund just yet as it may just get withheld. The IRS, however, wants you to claim your refund, otherwise all that cash goes into the hands of the U.S. Treasury. IRS Commissioner John Koskinen said, “We especially encourage students and others who didn’t earn much money to look into this situation because they may still be entitled to a refund.”And I guess the IRS just isn’t that into the treasury if they are so eager for you to claim that money. Texas and California are the states with the most unclaimed refunds. And the average refund that could be collected clocks in at $718. So what are you waiting for?

A little less dapper…

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Tailored Brands, a.k.a. the company that owns Men’s Wearhouse and Jos A. Bank, finally experienced some Wall Street lovin’ as the stock jumped more than 11% today. The company hasn’t had a jump like this in two years and it’s all because the company announced that it would be closing about 250 of its stores this year out of over 700 that are dotted all over the country. It’s not that Wall Street didn’t care for the company’s merchandise, it’s that Wall Street didn’t like that consumers weren’t buying enough of it and the company was bleeding money. The company’s revenue took a nasty beating after brass decided to chuck Jos A. Bank’s “Buy One Get Three free” promotion back in October. This move apparently upset consumers who shopped at the chain for just that reason. Executives felt, however, that the promo cheapened the line, especially when the promo ended up in an “SNL” skit where the apparel was called “effectively cheaper than paper towels.” Ouch. Cheap or not, customers let the company know how they felt by sending sales down 32%, while Men’s Wearhouse managed to take in a 4.3% gain. The stock lost 30 cents a share in its fourth quarter, which was miraculously not as bad as the 37 cents analyst predicted the stock would lose.