Zac Bissonnette
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Is Loehmann's on the Brink?
The New York Post reports exclusively that "Suppliers to the off-price clothing chain -- which was acquired by Dubai-based Istithmar in 2006 for $300 million -- have begun to withhold shipments to stores as concerns mount about the retailer's shaky finance."The chain of discount department stores was founded in 1921, and most recently declared bankruptcy in May 1999. There are now 63 stores in 17 states, but competition and the recession, combined with Isthimar's own financial woes, have the chain on the ropes. One "major factoring firm" has stopped extending credit to the company according to the Post, which could imperil the company's ability to keep its stores stocked for the fall selling season.
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Will the Homebuyer Tax Credit Be Extended? Let the Word Games Begin!
With the homebuyer tax credit set to expire at the end of April, most media outlets are reported on its expiration as a done deal -- which is strange given that the program has already been expanded and extended twice.CNNMoney reports that ". . .this is absolutely, positively your last chance to claim the credit. (Probably.) So don't wait, thinking the credit will be extended for a third time."
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The Tanking Value of the American Idol Franchise
One Equity Partners is nearing a deal to acquire CKX Inc. (CKX), the publicly traded company behind brands like American Idol and So You Think You Can Dance, according to the Wall Street Journal.
CKX's current CEO would retain his stake in the company. The company was close to a deal to sell for $13.75 per share back in 2007, but the credit crunch nixed it. Now, the stock trades right around $6 per share, suggesting that the value of the American Idol franchise has tanked in value over the past couple years.
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Interoil's Strange Comments on Stock Price
Shia LaBeouf, who is starring as Gordon Gekko's protege in the upcoming Wall Street sequel, recently offered a strange text message to a GQ reporter working on a story on him: "IOC's momentum is major, and it will surprise to the upside."
IOC is Interoil (IOC), an oil and gas exploration company with a $3 billion market cap and no proved reserves. Ex-con turned fraud fighter Barry Minkow has alleged that the company is nothing more than a pump and dump (see his website devoted to the company InterNoOil.com).
Equally interesting is that prior to joining InterOil as a PR person, Andrews was an equity analyst who covered the company.
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SEC Workers Love That Internet Porn
One of the most common arguments made in defense of the Securities and Exchange Commission's handling of the financial crisis is that the agency is understaffed, and doesn't pay its people well enough to attract talent that can compete with the private sector.Either that, or SEC employees just need to spend more time finding the next Bernie Madoff and less time looking at naked pictures on the Internet.
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Todd Stottlemyre Looks to Cash in with Multi-Level Marketing
Back in August, former pitcher Todd Stottlemyre, a veteran of 14 Major League seasons who last pitched with the Arizona Diamondbacks in 2002, was looking to start his own hedge fund in the wake of fellow retired baseball player Lenny Dykstra's spectacular crash and burn.These days, his financial aspirations seem to be a little less high finance. Actually, a lot less. The Globe and Mail reports that Stottlemyre "wants Canadians to join his network at ACN, a multi-level marketing company that promises an ongoing stream of commissions for members who manage to convince friends and associates to buy telecom services through them from companies such as Telus Corp. and Verizon Communications Inc."
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Who Cares If Sallie Mae Employees Lose Their Jobs?
As the battle over student loan reform heats up with news that the proposal will be included with health care legislation, the Sallie Mae PR/lobbying machine is ratcheting up its criticism of the plan.According to the bill, the United States government would save taxpayers and borrowers billions of dollars by eliminating middlemen in the federal student loan program -- and offering the loans exclusively through the United States government. The savings could be used to increase financial aid for low-income students.
Continue reading Who Cares If Sallie Mae Employees Lose Their Jobs?
Welcome Back Tiger Woods? TGW Looks to Boost Nike Sales
Can Tiger Woods' sexual transgressions actually be turned into a marketing opportunity for Nike (NKE) -- his largest sponsor, the company that seems to be the biggest financial victim of his fall from grace?
The Golfer's Warehouse is hoping so.
An email sent to subscribers and an ad placed on the company's website proclaims: "Welcome Back Tiger! Get Free Ground Shipping on All Nike Items. No Minimum Purchase. Through March 17th (Midnight CDT)."
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Denny's Shareholder Files Preliminary Proxy Statement
The Committee to Enhance Denny's Corporation (DENN), which is a group created by investors Oak Street Capital Management, and Dash Acquisitions, has filed a preliminary proxy statement that marks the beginning of an effort to shake up the company's board of directors -- and increase shareholder value.
The proxy statement filed with SEC calls out the company's management, board of directors, track record, executive compensation, and overall failure as evidenced by the company's poor share price.
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Tommy Hilfiger Close to a $3 Billion Sale
Bloomberg is reporting that private equity firm Apax Partners is close to a $3 billion deal to sell its Tommy Hilfiger brand to Phillips-Van Heusen Corp. (PVH).Given that Apax acquired the brand for $1.6 billion back in 2005 -- during a much more favorable market for the apparel industry -- the deal has to be considered a huge success. The size of the reported deal might seem surprising to followers of the American apparel industry, where the Hilfiger brand is well past its prime.
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Madonna Pairs Up with Iconix for Macy's Line
Madonna is pairing up with Iconix (ICON) to launch her own fashion line, MG Icon, which will be sold exclusively at Macy's.
The line will debut at about 200 stores in time for the back to school shopping season, with Madonna providing development and promotional services. The Wall Street Journal reports (subscription required) that "the collection of apparel, footwear, handbags and jewelry is expected to retail at $12 to $40. Growth plans include fragrance as well as expansion into additional Macy's stores. Macy's will be able to launch additional brands with the joint venture."
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Does GM's Plan to Repay Debt Shortchange Taxpayers?
General Motors is now planning to repay the $8 billion it owes to the U.S. and Canadian governments before the end of June.That sounds like good news. And in a way it is. But in the grand scheme of the nearly $50 billion the U.S. government has poured into General Motors -- most of which was converted into equity -- it's not much.
Continue reading Does GM's Plan to Repay Debt Shortchange Taxpayers?
Denny's Shareholder Trashes Chain in WSJ Interview
Oak Street Capital Management and Dash Acquisitions own a combined 6.5% stake in Denny's Corporation (DENN), and recently launched a proxy fight to add three new members to the company's board of directors. Calling themselves the Committee to Enhance Denny's, the group opined in a letter that "Shareholders cannot afford to allow the board and management to have more time to implement an effective strategy. We will not linger on the sidelines at this critical juncture."Dash Acquisitions president Michael Dash, one of the group's three nominees, has been eating at Denny's a lot lately and he isn't happy. He talked with the Wall Street Journal today -- making him possibly the first major shareholder in a publicly-traded restaurant company to trash the company's food in an interview with a national publication.
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GM's Bob Lutz Retires: A Hero? Nah
General Motors has announced that Bob Lutz will be retiring from the company on May 1.The press release was, as you might predict, glowing: "The influence Bob Lutz has had on GM's commitment to design, build and sell the world's best vehicles will last for years to come," GM CEO and Chairman Ed Whitacre said. "I, along with many other men and women in GM and throughout the industry, have greatly benefited from his passion, wisdom and guidance."
It's good to hear that many men and women within GM benefited from Lutz's mind. Shareholders? Not so much.
Continue reading GM's Bob Lutz Retires: A Hero? Nah
Steak 'n Shake's Sardar Biglari Is No Warren Buffett
Sardar Biglari has done an admirable job of turning around operations at Steak 'n Shake (SNS), but over the past few months, he's made a few less-than-subtle efforts to imitate his idol Warren Buffett.Back in December, he announced that he would do a 1-for-20 reverse split of the stock to boost the share price over $300 and "dissuade speculators." "We are attempting to eliminate those who erroneously think that it is easier for a $10 stock to go to $20 than a $200 one to go to $400," he wrote in a letter to shareholders.
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Closing Bell: Slow Growth Better Than No Growth (NYT, SLAB, V, MA, ZGEN, JASO)
InterDigital (IDCC): A Wireless 'Patent Machine'
Chasing Value: BP's Risk Manager Missing in Action
