I read Jason’s article today. I am surprised to hear that Dole Foods is in a bad financial situation. Doles Foods is selling its land in Hawaii to pay off its debts.
First of all, I don’t exactly know what was DF’s problem. It could be the management team, market strategy, or other operating issues. What are some opportunities that DF is facing? Just like the Delta Beverage case we did in class, DF is facing the future of being bought out and shut down. If DF decides to announce its bankruptcy, DF will shut down its production lines and no cash flow will be generated at all. However, if DF can be bought out, it might be able to pay off its debts and survive through this. Another issue that I have noticed is that DF owns land in Hawaii, which is outside the United States. Shipping costs is a big part of DF’s debts. In order to lower its cost, DF can sell its land in Hawaii and purchase land nearby in the United States.
Sunday, April 13, 2008
Sunday, April 6, 2008
Comments on Matthew’s “Tighten Global Market Regulation”
I agree with what Matthew said. It is time for the entire globe to learn a lesson from our US mortgage market default crisis. Lenders here in US have been recklessly approving and lending money to borrowers who are not capable of paying it back. Just like what we learned last week in class, there are many regulators in the current market, from FED, FIDC to Security Exchange Agents. As a matter of fact, all the regulators seem to perform their obligations well. The issue is that at the bottom of the regulation chart, mortgage brokers are taking advantage of the system and lending money to consumers with bad credit. People on top of the chart might not even know what is going on inside the lending department until mortgage fraud starts to taking over the market.
I think the new way of 3 major regulators should work better. The new 3 major regulators eliminate all the unnecessary departments and people who are not involved. Fewer steps mean more accuracy and more efficiency. More importantly, when there is a problem, the signs are taken early and seriously. It is time to tighten our regulation.
I think the new way of 3 major regulators should work better. The new 3 major regulators eliminate all the unnecessary departments and people who are not involved. Fewer steps mean more accuracy and more efficiency. More importantly, when there is a problem, the signs are taken early and seriously. It is time to tighten our regulation.
Mitts!
You can do research, study the market, plan carefully and still lose a fortune. This is a scary fact that many investors face when gambling in the stock market. There is now a financial instrument called “MITTS”, tailored by Merrill Lynch that allows a respectable return with zero chance of loss.
“MITTS” hedges the risk of options based investments with Zero Coupon Bonds to create an investment portfolio that is both secure and potentially highly profitable. An example of a “MITTS” investment would be as follows; 80% of your money could be invested in Zero Coupon Bonds and 20% could be invested in options. Under this type of scenario, an investment can be created that will return the full value of your investment through the Bonds portion of the investment. You can gamble with your options and make a fortune, or at the very least, break even if the options become worthless. The reason why is because the Zero Coupon Bonds are bought at a discount to “Par” value. If they are for sale at a price of $16 today and at some point they will mature and be worth $20, this part of the investment is a guaranteed return. If the options become worthless at the due date, you would still have your investment back.
In conclusion, MITTS trades like an ordinary stock on the NYSE and can be purchased through any broker. This type of investment is an excellent tool that can be used to eliminate the risk of loss while still seeing a nice return on one’s investment.
http://fintrend.com/ftf/Stock_Market/Mitts.asp
“MITTS” hedges the risk of options based investments with Zero Coupon Bonds to create an investment portfolio that is both secure and potentially highly profitable. An example of a “MITTS” investment would be as follows; 80% of your money could be invested in Zero Coupon Bonds and 20% could be invested in options. Under this type of scenario, an investment can be created that will return the full value of your investment through the Bonds portion of the investment. You can gamble with your options and make a fortune, or at the very least, break even if the options become worthless. The reason why is because the Zero Coupon Bonds are bought at a discount to “Par” value. If they are for sale at a price of $16 today and at some point they will mature and be worth $20, this part of the investment is a guaranteed return. If the options become worthless at the due date, you would still have your investment back.
In conclusion, MITTS trades like an ordinary stock on the NYSE and can be purchased through any broker. This type of investment is an excellent tool that can be used to eliminate the risk of loss while still seeing a nice return on one’s investment.
http://fintrend.com/ftf/Stock_Market/Mitts.asp
MicroSoft Bid for Yahoo!!
Microsoft Corp has given Yahoo Inc. a three week deadline to accept a $31-a-share offer or it will take their bid directly to the shareholders. The Microsoft bid to buy Yahoo is valued at more than $40 billion and would mark the largest takeover in the high-tech industry.
Yahoo inc. had declined Microsoft's original offer, saying the bid undervalued it’s true worth. Microsoft argues the economy and the market for Internet stocks have declined and that Yahoo's share of Web search and advertising business has also declined and referred to industry market reports. In addition, a Yahoo investor said the deal with Microsoft involved regulatory risks that would reduce a merger's potential value.
The board of directors at Yahoo has adopted a strategy that would make a merger with Microsoft more costly. For example, Yahoo has provided a severance plan to all employees if the company was sold that is commonly known as a “golden parachute.”
In conclusion, the acquisition of Yahoo Inc. by Microsoft Corp is heightened by tensions of market risk and perceived value by both parties involved. The time sensitive acquisition proposal by Microsoft Corp for Yahoo Inc. is underlined by the declining value of the market for internet stocks. In addition, adopted strategies by the Yahoo board of directors have made the proposed acquisition a costly objective to achieve.
http://www.msnbc.msn.com/id/23958838/
http://www.bloomberg.com/apps/news?pid=20601103&sid=adbTBkawpo9I
Yahoo inc. had declined Microsoft's original offer, saying the bid undervalued it’s true worth. Microsoft argues the economy and the market for Internet stocks have declined and that Yahoo's share of Web search and advertising business has also declined and referred to industry market reports. In addition, a Yahoo investor said the deal with Microsoft involved regulatory risks that would reduce a merger's potential value.
The board of directors at Yahoo has adopted a strategy that would make a merger with Microsoft more costly. For example, Yahoo has provided a severance plan to all employees if the company was sold that is commonly known as a “golden parachute.”
In conclusion, the acquisition of Yahoo Inc. by Microsoft Corp is heightened by tensions of market risk and perceived value by both parties involved. The time sensitive acquisition proposal by Microsoft Corp for Yahoo Inc. is underlined by the declining value of the market for internet stocks. In addition, adopted strategies by the Yahoo board of directors have made the proposed acquisition a costly objective to achieve.
http://www.msnbc.msn.com/id/23958838/
http://www.bloomberg.com/apps/news?pid=20601103&sid=adbTBkawpo9I
Sunday, March 30, 2008
Global Light Out
I was glad to hear that 30 million people switched off their lights for one hour on Saturday night. It was in response to global temperature warming. Fortunately, people all over the world were participating in the campaign by turning off their lights or dimming lights at public facilities. Google.com switched their background color to black from white. The homepage is colored in black. The message is that it is time for you to turn off your lights.
Carbon emission is causing a climate change of 1.4 degree in Celsius. One hour of turning off lights is not going to make a significant change. We need to change our lifestyle in order to keep the climate stable. I think public facilities should turn off the lights after 12 a.m. Just leave the street lights on. More effectively, hallways should install sound control lights.
In the long-run, in order to protect our earth, we need to stop using fossil fuel. Renewable energy is the way to go.
Technology has allowed us to produce energy from wind, water and solar. All of the renewable energy is environmentally safe without pollution. Statistics shows that 40 minutes of the sun’s light can produce enough energy to supply the earth for one year. Renewable energy can also be liquidized into fuel. It is expensive to invest in renewable energy. However, it is practical and profitable in the long run.
http://news.yahoo.com/s/nm/climate_lights_dc
http://www.greenpeace.org/china/en/campaigns/stop-climate-change/solutions
Carbon emission is causing a climate change of 1.4 degree in Celsius. One hour of turning off lights is not going to make a significant change. We need to change our lifestyle in order to keep the climate stable. I think public facilities should turn off the lights after 12 a.m. Just leave the street lights on. More effectively, hallways should install sound control lights.
In the long-run, in order to protect our earth, we need to stop using fossil fuel. Renewable energy is the way to go.
Technology has allowed us to produce energy from wind, water and solar. All of the renewable energy is environmentally safe without pollution. Statistics shows that 40 minutes of the sun’s light can produce enough energy to supply the earth for one year. Renewable energy can also be liquidized into fuel. It is expensive to invest in renewable energy. However, it is practical and profitable in the long run.
http://news.yahoo.com/s/nm/climate_lights_dc
http://www.greenpeace.org/china/en/campaigns/stop-climate-change/solutions
Comments on Brian’s “Olympic Terrorism”
Brian’s journal caught my attention today. The article said that the Chinese government has arrested many terrorists who plan to attack the Olympics. Personally, I think the Chinese government is capable of maintaining a safe environment for the Olympics.
The Chinese government is a one party totalitarian government. If needed, military forces will be carried out to its full capacity to ensure a safe environment. What I am worried about, is the safety of food and drinks. China doesn’t have a FIC to monitor the food quality. There is no way to ensure the food and drinks are safe. China's Minister of Health, Chen Zhu, said on Monday the government will ensure public health safety during the Beijing Olympic Games by strengthening disease monitoring, emergency response and medical treatment.
Olympics are a great opportunity for China. The Chinese government is doing everything they can to create a safe environment for athletes and tourists. The Olympics will bring so many new innovative ideas and business into China.
The Chinese government is a one party totalitarian government. If needed, military forces will be carried out to its full capacity to ensure a safe environment. What I am worried about, is the safety of food and drinks. China doesn’t have a FIC to monitor the food quality. There is no way to ensure the food and drinks are safe. China's Minister of Health, Chen Zhu, said on Monday the government will ensure public health safety during the Beijing Olympic Games by strengthening disease monitoring, emergency response and medical treatment.
Olympics are a great opportunity for China. The Chinese government is doing everything they can to create a safe environment for athletes and tourists. The Olympics will bring so many new innovative ideas and business into China.
Are you on FaceBook.com?
Have you signed up for facebook.com? I did yesterday. It was all because a few friends that I know pushed me to sign up, so I could view their profile on facebook.com. While I was signing up, I was surprised to see how many young people are on this network.
U2 and facebook.com is not the way I am accustomed to communicate. When I was trying to sign up, there were a series of questions you have to fill out. They wanted to know my birthday, home phone number, education, work experience and many more personal questions. I didn’t give out my personal information. However, everyone that is on facebook.com has all their personal information posted. It is a website that stores your personal information and is shared by the public. Personally, I think it is not a good idea to post all your private information. A computer hacker may use your personal information to harm you.
Facebook.com is a great way of communication. Just like blogs, people in your network can comment on it. People talk about all the interesting things in their lives and exchange their opinions. Police can actually use facebook.com to collect information that they might not otherwise have. Facebook.com has its good side and bad side. It depends on what information you put out there.
www.facebook.com
U2 and facebook.com is not the way I am accustomed to communicate. When I was trying to sign up, there were a series of questions you have to fill out. They wanted to know my birthday, home phone number, education, work experience and many more personal questions. I didn’t give out my personal information. However, everyone that is on facebook.com has all their personal information posted. It is a website that stores your personal information and is shared by the public. Personally, I think it is not a good idea to post all your private information. A computer hacker may use your personal information to harm you.
Facebook.com is a great way of communication. Just like blogs, people in your network can comment on it. People talk about all the interesting things in their lives and exchange their opinions. Police can actually use facebook.com to collect information that they might not otherwise have. Facebook.com has its good side and bad side. It depends on what information you put out there.
www.facebook.com
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