Zac Bissonnette
-
The hot new IPO of 2010: General Motors
General Motors is hoping to emerge from bankruptcy conduct an initial public offering sometime in 2010, according (subscription required) to The Wall Street Journal. The IPO could either raise additional capital for the company or allow the United States and Canadian governments to begin divesting their stakes in the company.
Washington has been mum on how and when it plans to begin recouping its "investment" in General Motors. Earlier this week on DailyFinance, Peter Cohan wrote that our investment in GM has mostly gone down the tubes:
Continue reading The hot new IPO of 2010: General Motors
Overstock issuing phantom stock?
Here's today's update from the irony department -- special thanks to Sam E. Antar for e-mailing it to me. From a FORM 12b-25 filed with the SEC on June 30th:
"The Company recently discovered that it inadvertently issued more shares of the Company common stock in connection with its 401(k) Plan than were registered on the Registration Statement on Form S-8 (File No. 333-123540) relating to the plan. The Company needs additional time to ascertain the facts relating to this issue and to analyze the effects, if any, on the plan."
Continue reading Overstock issuing phantom stock?
Will private equity finally find good governance with the KKR IPO?
When The Blackstone Group (NYSE: BX) went public, many observers -- myself included -- were concerned by the total lack of corporate governance checks and balances.
But at the time, the private equity industry was so hot that Blackstone could do no wrong, and no one cared enough to complain. But now that KKR is mulling a plan to list on the New York Stock Exchange, things could be different. The wheels have come off the industry, at least for now, and the arrogant attitude of "We'll tell you what we feel like telling you and you'll like it" may not play so well.
Continue reading Will private equity finally find good governance with the KKR IPO?
Why is Mel Karmazin getting a raise?
Over the past five years, shares of what is now Sirius XM Satellite Radio (NASDAQ: SIRI) have declined from a high of $9 per share to their current price of less than 50 cents per share. Granted, most of that hasn't been CEO Mel Karmazin's fault, and he was able to stave off bankruptcy by engineering an 11th-hour loan from Liberty Media.
But still, is that really a track record that entitles the CEO to a raise? Mr. Karmazin's salary went from $1.25 million to $1.5 million, but that isn't even the worst part. The Wall Street Journal (subscription required) reports that "He also gets options to purchase 120 million shares, which he can exercise at 43 cents a share."
Continue reading Why is Mel Karmazin getting a raise?
American Apparel investigated for immigration violations
BloggingStocks is a family site, so I will simply note the Reuters headline for this story: Probe fingers 1,800 American Apparel (AMEX: APP) workers.Now that you have had a moment to make your own joke, we continue with the news -- although I will say that when I saw this headline, I thought that CEO Dov Charney was back to his old tricks.
Anyway, a United States federal probe found that about one-third of the company's LA-area factory workers were not authorized to work in the United States.
Continue reading American Apparel investigated for immigration violations
REITs have a record second quarter: Who saw that coming?
The Wall Street Journal reports (subscription required) that "The Dow Jones Equity All REIT Total Return Index, which tracks 114 publicly traded REIT stocks, rose 28.9% in the April-June period, the biggest quarterly gain for the index since it debuted in 1989."
REITs still have a long, long way to go until they've regained the ground they've lost during the real estate rout -- they were down 31.6% in the first quarter and 38.8% in the fourth quarter of last year.
REITs still have a long, long way to go until they've regained the ground they've lost during the real estate rout -- they were down 31.6% in the first quarter and 38.8% in the fourth quarter of last year.
Continue reading REITs have a record second quarter: Who saw that coming?
First he sold toxic loans. Now he tries to get rich selling the foreclosures
In case you needed another reason to hate Countrywide Financial (in which case I can't help you with further proof that we did in fact land on the Moon), here's a good one: Former executive managing director Andrew "Drew" Gissinger III has started a new firm in San Diego, the boom gone bust city where he once played in the National Football League.His new firm will serve as a real estate broker for bank-owned homes: some of which will doubtless be bank-owned because of bad loans that were made under Mr. Gissinger's watch.
Continue reading First he sold toxic loans. Now he tries to get rich selling the foreclosures
Bank of America accused of ripping off consumers
We all know that Bank of America (NYSE: BAC) is a lousy, incompetently run outhouse of a financial institution. All you have to do is look at the welfare it's received, its stock price, and the fact that its CEO still has a job that doesn't involve cleaning out public bathrooms in mental hospitals.But now there are new allegations -- on top of many similar old allegations -- that in addition to losing money for its investors, Bank of America also rips off consumers.
Continue reading Bank of America accused of ripping off consumers
Netflix says pesky little Redbox is its biggest competitor
Netflix (NASDAQ: NFLX) CEO Reed Hastings says his biggest competitor isn't the one that his company is most often grouped with. It's not Blockbuster (NYSE: BBI), the largest brick-and-mortar rental chain, and it's not the internet -- where technological gains are making streaming video the wave of the future.
No, according to Mr. Hastings, the biggest competitor is Coinstar (NASDAQ: CSTR), the coin counting business that also happens to own Redbox, the network of 15,400 vending machines that rent movies for $1 per night. Redbox is installing another machine every hour.
Continue reading Netflix says pesky little Redbox is its biggest competitor
Ruth Madoff cuts a deal: Let the outrage begin
While Madoff's victims are out billions, his wife Ruth Madoff will get to keep a nice chunk of his unjust winnings.
The Wall Street Journal (subscription required) reports that "Ruth Madoff, the wife of one of the most reviled swindlers in history, has agreed to give up her potential claim to more than $80 million worth of assets, keeping just $2.5 million in cash in an agreement reached with federal prosecutors."
Financial journalist Gary Weiss is having none of it:
Continue reading Ruth Madoff cuts a deal: Let the outrage begin
Fidelity to close private equity division
Many of the bit players are being flushed out of private equity by the tight credit market, and Fidelity Investments, which will close its private equity division next month, is no exception. While buyouts have never been a significant part of the company's business, the firm was managing $500 million as part of an operation that was founded two years ago -- at or near the height of the private equity boom.Fidelity's private equity arm has investments in four companies, but spokeswoman Ann Crowley told (subscription required) The Wall Street Journal that "Basically debt financing is largely unavailable because of the economic conditions of the last several months."
Continue reading Fidelity to close private equity division
Texas Rangers name owner's suite after George W. Bush
The Texas Rangers have a new name for their owner's suite: "President George W. Bush Owner's Suite", in honor of the 43rd President who bought an $800,000 stake in the team in April of 1989. After serving as general managing partner for five years, he sold the stake in 1998 for more than $15 million.
"I've looked this up, and in the 133-year history of Major League Baseball, never has a president been an owner except President Bush," Rangers owner Tom Hicks told MLB.com. "I'm glad he's home and can reconnect with this place. We thought it would be fitting to have the suite named after him."
"I was actually thinking of my time in baseball driving up here on the turnpike," Bush said. "Baseball is a great sport, and the Rangers are a great organization. Tom is a wonderful owner and has built this team up, hopefully guiding it to an American League pennant."
"I'm thrilled to accept it," Bush said. "I used to [sit in the crowd during the game], but my life changed in January 2001. I have a little less anonymity now."
I would love to see President Bush come to Fenway Park and try to take in a game from the bleachers.
UAW adds its voice to new General Motors board of directors
The United Auto Workers union will own a 17.5% stake in the new General Motors company through its Voluntary Employee Benefits Trust (VEBR).As part of that ownership stake, the UAW's interests will be represented on the board of directors by former Wall Street Analyst Stephen Girsky.
BusinessWeek reports that "While Girsky has served as an advisor to the union for several years, and clearly has a soft spot for labor, he's all too aware of GM's problems. He was a tough critic of the company when he covered its stock for Morgan Stanley. Girsky also worked at the company as an advisor to former CEO Rick Wagoner, too. Don't look for him to press CEO Fritz Henderson to give the UAW a contract that would erase some of the concessions that were made prior to bankruptcy."
Continue reading UAW adds its voice to new General Motors board of directors
Bailed-out CEOs still taking corporate jets, thank you very much
What's that? You think that just because you're on welfare, you shouldn't be allowed to charter a jet for a personal vacation? You're un-American!The Wall Street Journal reports (subscription required) that "Flight records show numerous occasions when banks receiving federal money have flown their planes to destinations near resorts or executives' vacation homes, including spots in Europe, Mexico, the Caribbean, south Florida and Aspen, Colo. In some cases, it's clear that bank executives were traveling for personal reasons; for other flights, many of which were over weekends or holidays, the passengers and purpose couldn't be established."
Bank of America (NYSE: BAC) was one of the "Let's take taxpayer money and book flights to Aspen." "We are implementing a new policy in 2009, under which personal use of aircraft will not be permitted," a spokesperson told the Journal.
Eddie Bauer makes it official, files for bankruptcy
Eddie Bauer Holdings Inc. has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court of the District of Delaware.
Reports have private equity firm CCMP Capital Advisors as the likely buyer of the company. A flailing brand image and lousy consumer spending combined with the company's $426.7 million debt load helped to drag the company into insolvency. In the first quarter of 2009, the company lost $44.5 million.
Reports have private equity firm CCMP Capital Advisors as the likely buyer of the company. A flailing brand image and lousy consumer spending combined with the company's $426.7 million debt load helped to drag the company into insolvency. In the first quarter of 2009, the company lost $44.5 million.
Continue reading Eddie Bauer makes it official, files for bankruptcy
Comfort Zone Investing: Survival of the fittest -- letting some banks fail
Three All-American stocks for portfolio fireworks
Michael Jackson fireworks, the workaholic
