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George Gutowski

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  • Barclays Robert E Diamond Commits Hari Kari. But Board Directors Seem Unnaturally Safe

    By George Gutowski - July 10, 2012 | Tickers: BCS

    Barclays (NYSE: BCS) announced that their former wonderkid will voluntarily forgo some $31 million in deferred compensation. The word voluntarily is a joke. The agreement to forego is like a drowning man attempting to lose his concrete overshoes. Basically an excellent idea at the time.

    The problem is governance. How can the board not understand what was going on. Was Robert E Diamond not telling anyone what was going on more »

  • A Threat to Apple? Microsoft's Grand Strategy vs Product Tactics

    By George Gutowski - June 20, 2012 | Tickers: AAPL, GOOG, MSFT, YHOO

    Microsoft (NASDAQ: MSFT) seems to be challenging Apple (NASDAQ: AAPL) in the tablet market space. Apple with its uber cool iPad and seemingly unassailable market dominance does not look like the weak sissy in the school yard that everyone can punch out whenever they want.

    So what does Microsoft see that they can take down and create some shareholder wealth? The contrast is more about the strategic battle than any more »

  • FedEx Aircraft Capacity Misunderstood. Chairman & CEO Punts Discussion to Fall. Transparency Failure

    By George Gutowski - June 19, 2012 | Tickers: FDX

    FedEx (NYSE: FDX) reported Q4 results. A big part of their story is fleet replacement. Old aircraft and engines are being retired. New more efficient gear is coming on board. OK makes sense. At the same time the company mentions labour costs are still high and pension costs are substantial. Part if the reasoning is low discount rates which balloon up unfunded pension obligations. Not really a new piece of more »

  • Dell's Curious Dividend Strategy

    By George Gutowski - June 15, 2012 | Tickers: DELL, HPQ, IBM

    Dell (NASDAQ: DELL) announced the birth of their dividend strategy - starting at $0.08 per share quarterly beginning in Q3. The dividend yield comes in at around 2.7% is designed to attract a new classification of investors. Those of the yield and income persuasion are being targeted. Of course the dividend yield is based on a 52 week low.

    So the question becomes is this true religion or just more »

  • Salesforce Strays from Core Competency and Dabbles in Social Media

    By George Gutowski - June 6, 2012 | Tickers: FB, GM, CRM

    Salesforce (NYSE: CRM) is acquiring Buddy Media for $689 million of mostly cash and some stock and options. No definitive word on when the deal will be accretive but short-term EPS will take a $0.14 or $0.15 per share hit. Ouch that's gotta hurt. Salesforce has been wading into the social media space with Chatter and Radian6 and desk.com. so it seems to have its six-shooter more »

  • Starbucks Gets Baked Does Board Understand Sweet Things

    By George Gutowski - June 5, 2012 | Tickers: CL, JCP, PEP, SBUX

    Starbucks (NASDAQ: SBUX) just blew around $100 million to buy some 19 bakeries in a grand effort to expand into baked goods. I'm OK with the basked goods concept. Coffee and something sweet preferably sweet margins are a great business model. But what do you get for $100 million? Bay Bread and La Boulange apparently; who knew?

    Concept and menu development are necessary business catalysts. Would you like fries more »

  • Does Facebook's Board have the Answers?

    By George Gutowski - June 1, 2012 | Tickers: FB, MSFT, NES.DL, WPO, WMT

    Facebook (NASDAQ: FB) has disappointed. Nothing like a $10 per share drop in value -- $38 to under $29 is atrocious. That’s something like 24% in a blink of the eye. Now everyone is soured. So what should the board do? Not Zuckerberg who probably still cannot find his way to Barney’s. But the board. They have ultimate responsibility.

    Lets take a look at the make up.

    Reed Hastings more »

  • JPM Chairmanship Issues. Why Jamie Dimon Cannot Be Replaced Just Yet

    By George Gutowski - May 28, 2012 | Tickers: XOM, HON, JNJ, JPM, YUM

    JP Morgan (NYSE: JPM) lost a lot of money almost by accident. Jamie Dimon who holds both the position of Chairman and CEO has become the subject of much criticism. A lot of other executives would be understandably sucking their thumbs by now. Corporate governance activists point to his holding both the Chairmanship and CEO posts claiming it's a prescription for problems. Right now that line of reasoning looks more »

  • Chinese Puzzle - Act Global or Look Backward

    By George Gutowski - May 28, 2012 | Tickers: GOOG, MMI

    Google (NASDAQ: GOOG) is trying to buy Motorola Mobility Holdings (NYSE: MMI) primarily to scoop up a huge treasure trove of patents and intellectual property. Anti-trust regulators around the world have in turn signed off on the deal. Except for the Chinese. China, the worlds second largest economy, seems to be officially sitting on its hands. They are holding up the deal. Google's track record in China is more »

  • Groupon: Global Technology Initiative, but Silence on Costs!

    By George Gutowski - May 28, 2012 | Tickers: GOOG, GRPN, TRIP

    Groupon Inc.  (NASDAQ: GRPN) announced some better results and encouraged the market to keep believing. Investor relations is subtly promoting the classic buy and hold let us do the work approach to investing. OK, so a new tech company out of the chute should be showing improvement. That's what investors have bought into: a rapidly improving story. Note the emphasis on "rapidly."

    In reading the conference call transcript, I more »

  • Facebook Buyers Remorse Is Morgan Stanley Guilty of Something?

    By George Gutowski - May 22, 2012 | Tickers: FB, NES.DL

    Facebook (NASDAQ: FB) finally went public and did not double or triple over night. Boo hoo boo hoo. Lots of investors if you can call them that want to blame Morgan Stanley (NYSE: MS). This white shoe firm is surely at fault because investors could not double their money over night. And that as we know is Morgan Stanley's grievous error. Please note that some 33 other firms more »

  • JPM Morgan's Humpty Dumpty Moment

    By George Gutowski - May 14, 2012 | Tickers: JPM

    So by now even taxi drivers have heard. JPM Morgan (NYSE:JPM) lost $2 Billion in the last six weeks. There is lots of speculation about the issue. This one will not go away soon. The political ramifications are about to resonate. Jamie Dimon is a disgruntled democrat who does not appreciate President Obama's demonization of Wall Street. At one point there may have been thoughts of Dimon becoming more »

  • Berkshire Hathaway Dividend Flirtation: Warren Buffett's Last Genius Move For Investors

    By George Gutowski - May 10, 2012 | Tickers: BRK-B, BRK-A

    So after the big annual meeting, Warren Buffett who is the chief cook and bottle washer over at Berkshire HathawayInc (NYSE: BRK-B) started to talk dividend. All this after being disdainful of dividends from Berkshire and wanting to invest all the cash because he could do the best job. Now that the end is near, even with a mild form of prostate problem, Warren Buffett is facing his own more »

  • Yahoo's Scott Thompson Open to Lawsuit from Stonehill College

    By George Gutowski - May 7, 2012 | Tickers: YHOO

    By now everyone must have read something about the Yahoo (NASDAQ: YHOO) controversy as to whether Scott Thompson embellished his academic credentials and if Yahoo inadvertently became the victim of an intellectual fraud.  Daniel Loeb, CEO of Third Point, is suggesting he will start a lawsuit at high-noon EDT today if the board does not terminates Scott Thompson and the former head hunter who stick handled the executive search and more »

  • Chesapeake: Value Investor Considerations

    By George Gutowski - May 3, 2012 | Tickers: CHK

    Authors Note: This blog has been corrected. In my first post I wrote that Aubrey K McClendon had resigned as Chairman and CEO. In fact he resigned only as Chairman and at the time of post he still held the CEO position. The post has been corrected. 

    Chesapeake Energy Corp (NYSE: CHK) is in the market for a new boss. We've all heard the twisted conflicted governance challenged story more »

  • NYSE Euronext Board of Directors Ousted

    By George Gutowski - May 1, 2012 | Tickers: NYX

    NYSE Euronext (NYSE: NYX) watched one of their members of the Board go down in flames.  Ricardo Salgado tendered his resignation because he did not receive a majority of votes. As per by-laws he had to walk the plank and tender his resignation. Now as per common sense did he or the NYSE Euronext not have a sense of where his support stood? Maybe not because he essentially went kamikaze more »

  • Scholastic Huge Guidance Increase. But Wait is it a Media Company or an Educational Company?

    By George Gutowski - April 30, 2012 | Tickers: PSO, SCHL

    Scholastic Corporation (Nasdaq:SCHL) increased guidance to north of $3.40 per share from the previous range of $2.60 to $2.90. that s for the whole year folks. The enormous successful of the hunger games is driving the update. While investors normally would appreciate making more money you now have to start asking why are investors going to buy and hold the stock. In the press release the more »

  • Alibaba.com One Two Punch Putting the Run on Investors

    By George Gutowski - April 27, 2012 | Tickers: ALBCF.PK, YHOO

    Alibaba (NASDAQOTH: ALBCF.PK) announced declining results for Q1 claiming they are cleaning up their act or the act of many of their vendors. The drop in recurring cash flow clocks in at a YoY drop of a mind numbing 87%. But later in the earnings release they claim their cash and bank balances improved with a 24.3 % increase year-on-year and flat from December 31, 2011.  Which means the more »

  • Qualcomm & Apple's Cash Distortion. Will Rising Interest Rates Create a New Bank

    By George Gutowski - April 23, 2012 | Tickers: AAPL, QCOM

    Qualcomm (NASDAQ: QCOM) announced pretty good earnings but fessed up to probable delays in delivering chip sets for Apple's (NASDAQ: AAPL) brand spanking new G5 iPhone causing the market to sell off in classic knee jerk reactionary mode. Take a look at something else on Qualcomm's balance sheet. Cash and marketable securities now clock in at around $26 billion which equates to 25% of their market value. The more »

  • Citigroup Still Has its Leash and Collar

    By George Gutowski - April 19, 2012 | Tickers: C, JPM, WFC

    Citigroup (NYSE: C) recently announced improved numbers and long-suffering investors (some may say "speculators") were encouraged. Most financials such as Wells Fargo (NYSE: WFC) and JPMorgan (NYSE: JPM) as well as Citi seem to have shared the same mantra. Credit an improving economy, reducing loan loss provisions and even, pray tell, some reversals where yesterday's red ink turns miraculously black. You have to love bank accounting. But in Citigroup more »

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