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Robert Reich interview: Supercapitalism, the recession, unions, and the worldwide food shortage

Recently, I had the opportunity to speak with Robert Reich about some of the problems facing our economy and humanity. Those are two very big topics that could easily fill days of talk-time and we managed to scratch through it in 20 minutes or so.

Professor Reich is a wise gent who brings us closer to understanding what is needed in an ailing economy that has seen its share of economic disasters. What is needed is a good old belt tightening, it seems, and significant change in the mindset of Americans. It seems that since China and India are consuming everything in sight, it is up to us to make sue that there is going to be enough food and drink for our future generations.

We went on to discuss how the Oil Sector and Agriculture with stocks such as Potash Corp./Saskatchewan (USA) (NYSE: POT), The Mosaic Company (NYSE: MOS) and Archer Daniels Midland Company (NYSE: ADM) are the natural leaders as they will need to bring much more product to a hungry world.

Continue reading Robert Reich interview: Supercapitalism, the recession, unions, and the worldwide food shortage

Digital Domain wants an IPO blockbuster

For more than 14 years, Digital Domain has created stunning special effects for Hollywood. The company's wizardry in films like Titanic, Apollo 13, The Fifth Element, I, Robot, Flags of our Fathers, Letters from Iwo Jima, and Transformers has snagged it two Academy Awards. Now, Digital Domain has filed to go public.

A key asset is the company's proprietary technology platform, which is called the "Digital Studio." Besides feature films, the company has leveraged the platform into other areas like TV commercials, interactive visual media and even video games. The company has produced commercials for companies like American Express (NYSE: AXP), Coca-Cola (NYSE: KO), Microsoft (NASDAQ: MSFT), and Sony (NYSE: SNE).

For the first nine months of 2007, Digital Domain's revenues came to $57.5 million, but it saw a net loss of $15.3 million. The company generates a large amount of revenues from contract work, and there is also a segment that licenses the technology.

With the ongoing Hollywood writers' strike though, there could be a fall-off in revenues for next year.

The lead underwriters on the IPO include Thomas Weisel Partners and CIBC World Markets. The proposed ticker is "DTWO."

You can find the prospectus at the SEC website. Also, if you want to find other recent information on IPOs, visit DealProfiles.com.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

How tight is Google's grip on the search engine?

The New York Times Digital Domain column wonders about "The Human Touch That May Loosen Google's Grip" in Sunday's edition. Given that nearly all of Google Inc.'s (NASDAQ: GOOG) revenue comes from ads that appear on its search results pages and partner sites, it's an issue that Google shareholders may need to worry about. After discussing the severe smackdown that Google has laid on the likes of Microsoft Corp. (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) in terms of search revenue, author Randall Stross sums up what may be the best bear case on Google:

"The fumbling of Google's largest challengers, however, has not dampened the enthusiasm of entrepreneurs and venture capitalists for entering the search game. The combination of low start-up costs and potentially huge profit makes it seem a reasonable bet.

Developing a search algorithm can be accomplished by very small teams. It was a team of two -- Larry Page and Sergey Brin, the founders of Google -- who developed a new and improved search algorithm. They beat out Alta Vista, whose search engine was developed by seven people at the Digital Equipment Corporation."

While much has been made of Google's acquisitions, corporate culture, and innovation, let's face if folks: Google is a search engine and the rise of a new, better, algorithm designed by two other college kids could spell the demise of Google.

Every Google shareholder should read Stross's column. With the large amount of venture capital funding available, there's an awful lot of would-be Larry Pages and Sergey Brins out there looking for a piece of Google's staggering 29% net profit margins.

Symbol Lookup
IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 09:12 AM

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