Zynga Inc (NASDAQ:ZNGA), in order to cut down on cost, will not renew the contract of the moderators. The company is implementing the cost cutting strategy it mentioned in its third quarter earnings report. The company will ax some moderator position and cease to hire any new contracts. “As part of the cost reduction program we announced in October, contracts on some outside services, including a portion of our forum moderators, will be allowed...
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We often talk of once bitten twice shy, or so the saying goes. The current financial crisis in Greece, which is mooted to have spread to Spain, is causing bank runs in Europe albeit fears that the ‘wind’ that swept across the globe in 2009 is on the horizon. Greece has lost more than one third of its bank deposits as investors continue to seek for safer havens for their money. Spain, on the other hand,...
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Every afternoon we provide an update on global market levels, economic news, and hedge fund news. Post Market Update Market Levels US: Dow: 13213.60 (-0.11%), S&P 500: 1397.91 (-0.39%), NASDAQ: 3046.36 (-0.74%) Europe: CAC: 3212.80 (-1.66%), DAX: 6761.19 (-0.59%), FTSE: 5737.78 (-0.69%). Asia-Pacific: Australia: 4362.10 (-0.30%), China: 2396.32 (-0.35%), Hong Kong: 20741.45 (-0.33%), India: 5190.60 (0.03%), Japan: 9520.89 (-0.43%). Metals: Gold: 1665.30 (0.05%), Silver: 30.89 (-1.53%), Copper: 3.83 (0.14%) Energy: Crude Oil: 104.87 (-0.06%),...
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Quoted “Philosophically, the edifice of world regulation was built on two building blocks. One is the idea of the rational man and the other is that there is a reasonable level of conduct in the sales channel. Both of those building blocks broke down to some extent.” — Martin Wheatley, new head of Britain’s Financial Conduct Authority Facts & Figures At a market cap of $550 billion (down from a recent high of $600 billion),...
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Speaking of Bruce Berkowitz, he provided his investment checklist at the recent Columbia Investment Management Association conference which is worth considering: Can you kill the investment? Is there adult supervision at the company? Is the company essential? Does it depend upon the kindness of strangers? What can the company make? Reasonable profitability for owners? How are owners paid? Distributions? Management – honest in past and present? Does accounting reflect reality? Does the balance sheet match...
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Last fall I wrote about American Greetings Corporation (NYSE: AM), a designer, manufacturer and wholesaler of greeting cards and other gift-related accessories (gift wrap, party goods, etc). I concluded that the company’s dual class share structure had led to a number of wasteful acquisitions: With AM, I see a company that generates significant free cash flows but lacks the focus to use these free cash flows in the most efficient manner. This makes it ripe...
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Sirius XM Radio Inc. (NADAQ:SIRI) is involved in a ferocious battle over control of the company with investor Jon Malone. Liberty Media, Malone’s company seeks to obtain permission from the FCC to increase its stake in the company. The move is speculated, with quite strong evidence behind it, to be the beginnings of an attempt to take control of a majority shareholding in the satellite radio company. Liberty Media needs to obtain another 11%...
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Viking Global Investors LP made an announcement that they now own about 5.5% of Carter’s, Inc’s (NYSE:CRI) shares since late last month. The children’s clothier is selling shares at about $50.00 a piece and the current prediction is that they will earn about $2.50 for each share around FY 2012. This is a nice break of good news for the company since recent news of the two former presidents of the brand was charged...
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Earnings season is upon us and that means lots of speculation about which companies will outperform and which will underperform. This is the standard every time earning season comes around. However, this season we are hearing a few different types of speculation which are worrisome. I speak of the speculation of peaking margins. If the speculators are correct, expect some bad earnings. When you see margins peak, corporate profits will fall. Essentially when margins...
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Dunkin’ Donuts (NASDAQ:DNKN) has announced on Friday that they will be holding a second public offering that they believe could bring in $778.8 million, which would be worth than its initial public offering back in July of last year. The company will offer 26.4 million shares, priced at $29.50 as the market picks up and room for growth is seen. Last year, during the company’s initial public offering, they offered up 25.6 million shares...
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Express Scripts, Inc. (NASDAQ:ESRX) plans to finalize the acquisition of Medco (NYSE:MHS) could happen as early as next week. Last year, both companies were in the midst of a merger agreement, however problems involving an antitrust law stalled the process as shareholders could not decide what steps to take next. Just yesterday, it was reported that both Express Scripts and Medco have filed the paperwork for the acquisition to take place and it looks...
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