Zac Bissonnette
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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.
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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.
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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.
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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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Is Donald Trump's Brand Still Worth Anything?
As the court battle for control of a trio of Atlantic City casinos between Carl Icahn and Donald Trump heats up, one question is coming into focus: How much is Donald Trump's name on the top of a casino worth?
Trump argues that giving him control of the company is the best move, in part because his name is such a big draw. Icahn counters that the main disadvantage to losing the Trump name would be the cost of changing the signs.
Burn!
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Former Lehman CFO Leaves Credit Suisse
For a long time, Erin Callan was considered one of the most powerful women on Wall Street.Somehow, a controversial stint as CFO of Lehman Bros. shortly before its collapse hasn't helped that status. After being pushed out of Lehman, she joined Credit Suisse, but in February of 2009, five months after joining, she went on a leave of absence for unspecifiied personal reasons.
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Is Barnes & Noble Going to Protect Shareholders from Ron Burkle?
Sarah Weinman reported recently that the board of directors at Barnes & Noble (BKS) has denied Ron Burkle, the company's single largest shareholder, the opportunity to acquire more stock without triggering the poison pill the company enacted hastily back in November.In a letter to Mr. Burkle filed with the SEC, the company notes that the poison pill is "intended to protect our shareholders from actions that are inconsistent with their best interests. The Board has determined by unanimous vote that acceding to your request would not be in the best interests of all Barnes & Noble's shareholders."
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Dow Jones in Talks to Acquire SmartMoney: Why?
Dow Jones & Co., a division of News Corp. (NWS), is in talks to acquire the 50% of SmartMoney magazine that it doesn't already own from Hearst, its partner in the monthly publication.
The Wall Street Journal reports that "The two sides continue to negotiate purchase terms, people familiar with the matter said, but a deal could be announced within days. A deal price couldn't immediately be learned."
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Medifast Files Lawsuit: Is 'Pimp Daddy' Defamatory?
Medifast Inc. (MED) is a publicly traded nutrition and network marketing company with a market cap of over $300 million.Barry Minkow, a convicted felon turned short-selling sleuth, has been publishing information on the Internet alleging that the company is a pyramid scheme that relies on endless chain-recruiting to pump up its revenue. Naturally, Medifast and its chairman, Bradley MacDonald, are suing Minkow and several associates for defamation.
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Comfort Zone Investing: Why GE's Dividend Increase Matters
Six Deadbeat Stocks to Clean Out of Your Portfolio
Federal Reserve Ordered to Release Bail Out Documents
