Category: Investor Relations


Five years ago Hewlett-Packard (NYSE: HPE) was kicked off the Dow Jones Industrial Average, replaced by Visa.

Three years ago, AT&T (a.k.a., The Phone Company) was ingloriously removed from the index of 30 share prices, substituted by Apple.

And just last month, General Electric (NYSE: GE) was unceremoniously ushered off the exchange for Walgreen Boots.

Will Itty Bitty Machines (NYSE: IBM) be the next Dinosaur Tech heading for Dow Jones extinction?

Flintstones vs Jetsons

Under legendary CEO Jack Welch, GE was the most valuable (market capitalization) American company in 2000. The company was one of the founding companies of the Dow Jones Industrial Average in 1896. General Electric was a consistent standard on the exchange since 1907, 111 years.

What have you done for us lately, Fred and Wilma Flintstone? GE was replaced on the Dow Jones two weeks ago by a drug store company? How embarrassing.

Almost DailyBrett earlier wrote about companies that are absolutely rocking (i.e.,  Apple, Amazon, Facebook, Netflix, Google, Salesforce.com), metaphorically packing stadiums as opposed to those reduced to playing “greatest hits” at county fairs and desert casinos (i.e., Intel, Cisco, Dell).

These latter companies were/are directly tied to the mature PC market and thus became fairly valued with limited prospects for investor growth unless and until they credibly changed their story with compelling new information (e.g., Apple from Amelio to Jobs2 to Cook) & (e.g., Microsoft from Gates to Ballmer to Nadella).

Apple was on the precipice of bankruptcy in 1997; now the company is the world’s most valuable at $912 billion. The Wunder corporation may be first to ever to achieve a $1 trillion market cap (share price x the number of shares).

Microsoft has cleverly reinvented itself as the market leader in the cloud, even though the PC software company was late to the party. Macht nichts. MSFT has a $762 billion market cap.

Apple, Amazon, Facebook, Google, Netflix and Salesforce.com constitute the 21st Century version of the Jetsons.

Conversely, AT&T, GE, Hewlett-Packard and IBM are the Flintstones.

What Are Their Winning Narratives?

Having worked in corporate Silicon Valley public relations for more than a decade, Almost DailyBrett understands the virtue of championing a winning narrative.

What is your company’s raison d’etre?

How does it make the legal tender?

How is the company positioned in the marketplace against ferocious competitors?

What is its competitive advantage?

What is its legacy of results?

What are the prospects for reasonable and achievable expectations for shareholder joy?

For the record, Almost DailyBrett owns shares of Apple (NASDAQ: AAPL) and Salesforce.com (NYSE: CRM).

Both companies have delivered. Both are leaders in their respective fields. Most of all, your author understands their business strategies – lead in consumer innovation and services; provide selected software via the cloud to business customers).

Investing or Gambling?

When you understand how and why a company makes money then markets are investing, not gambling.

What is the winning narrative for GE? The company is restructuring yet again. Give it up J.C. Penney. Forget it, GE.

Tell me more about the business strategy for AT&T. How will it beat Verizon? Your author doesn’t know either.

Your author loves his Lenovo Ideapad. Who commercialized the PC? IBM in 1981. Reagan was president. “Watson,” can you help?

HPites love the 1937 story of HP founders William Hewlett and David Packard and the Palo Alto garage.

If the two gents could see their creation in the post-Carly Fiorina era, they would most likely would be turning over in their respective graves.

When contemplating these four Dinosaur Techs – AT&T, GE, HP, IBM — in a Jurassic Park era, the hardest questions are also the most basic: How do these companies make money? What product defines their respective businesses?

In stunning contrast, Apple is the #1 company in the world, defined by game changing innovation (e.g., iPhone X) and services (e.g., Apple Music).

Amazon is the #1 digital-retailer in the world with 100 million Prime memberships.

Facebook is the world champion social media company with 2.19 billion subscribers.

Google is the #1 search engine and developed the smart phone Android OS.

Netflix is the #1 digital-streaming-video company (at least for now) with 125 million subscribers.

Salesforce.com pioneered SaaS (Software as a Service) and is a leading-business-software-via-the-cloud provider.

Quick: Can you name a signature product/service directly associated with AT&T, GE, HP or IBM?

Being a jack of all trades, master of none leaves investors will absolutely … nothing.

https://www.cnbc.com/2018/06/19/walgreens-replacing-ge-on-the-dow.html

https://almostdailybrett.wordpress.com/2011/07/21/what-happens-when-the-music-stops/

 

 

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Can Amazon’s HQ2 become … HQ1?

Did the Seattle Politburo go too far?

Talk about biting the hand that feeds you … Do they really want to Bern down Seattle’s competitive advantage?

Amazon employs 40,000 in Seattle (headquarters, roasteries and stores).

Let’s see an ANNUAL $275 Seattle employee head tax x 40,000 local workers = $11 million per year … just from Amazonites. Add in Starbucks, Nordstrom, Vulcan etc. and the per-employee tax reaches $48 million

The money  joins the $68 million already ostensibly allocated to fight intractable homelessness in Seattle.

But what inevitably happens when that amount of money is not enough?

As Mrs. Thatcher said: “The Trouble with Socialism is Sooner or Later You Run Out of Other People’s Money.”

Amazon already announced a short list of 19 American cities and one Canadian venue for its planned $5 billion, 50,000 new-employee HQ2 or Headquarters 2.

Are any of these venues threatening to impose a punitive tax on Amazon, just for the privilege of maintaining and hiring the best and the brightest?

What is the incentive to invest in Seattle, if entrepreneurial spirit driving, product producing, employee hiring multi-national, publicly traded companies are hit by its home town city council with the collective backs of their hands?

Let’s see, the State of Washington has no income tax. Seattle has a well-trained workforce.

The Great State of Texas has no income tax. The capital city of Texas has a well-trained workforce too. Austin is also the home of Whole Foods. Jeff Bezos and Amazon bought Austin-based Whole Foods for $13.4 billion last year.

Austin, Texas is on the short-list for Amazon HQ2.

Why can’t Amazon put Seattle in its rear-view mirror? The number one digital retailer/cloud evangelist could simply announce HQ2 (e.g., Austin) and the relocation of HQ1 (Seattle) in the same news release.

As mumsy always said: “If you are in a bad situation, get out of it.”

98 Percent Effective Tax Rate

Seven years ago, Almost DailyBrett wrote about how the UK was Taxing the Fab Four/Exiling the Stones.

Approximately 750,000 Brits qualified for an effective tax rate of 98 percent (no typo) including four from Liverpool and five more from London.

The Beatles responded by writing Tax Man as the first cut, first side of Revolver. The Stones left the UK for the South of France, and produced Exile on Main Street.

At a 98 percent effective tax rate, when does taxation stop and confiscation begin?

Surely, the Stones will never be mistaken for anti-tax warriors. Nonetheless, they demonstrated circa 1971/1972 that achievers can and will move in the face of excessive, unreasonable taxation.

Repealing The Tax … For Now

In the face of a potential referendum, which had already gathered 45,000 signatures, the Seattle City Council reversed course this week, repealing the punitive employee head tax on a 7-2 vote.

How often are tax increases, even so-called “temporary” taxes, rescinded?

The tolls for the Bay Area bridges were originally ticketed to be repealed once the construction bonds were retired. Try driving toward San Francisco on any bridge without first paying $5 or more?

Regardless of the employee head tax repeal, what message has the Seattle City Council sent to the entrepreneurial dreamers, innovators, and job producers who are located (or plan to locate) within the boundaries of the city?

The mere fact that the city council was willing and able to impose an annualized employee head tax $275 on each-and every corporate hire speaks volumes about how publicly traded corporations are viewed by Seattle local government.

Instead of welcoming and embracing entrepreneurs, they are essentially driving them away, their employees and their tax dollars.

Maybe Amazon will take a hint and announce the $5 billion, 50,000 new job HQ2 venue as not only the winning city, but also the new HQ1.

Will the last Amazon employee leaving Seattle, please turn out the lights.

http://komonews.com/news/local/seattle-council-repeals-homeless-head-tax-on-big-businesses

https://almostdailybrett.wordpress.com/2011/10/04/taxing-the-fab-four-exiling-the-stones/

https://www.seattletimes.com/seattle-news/seattle-city-council-to-vote-at-noon-on-repeal-of-big-business-head-tax/

https://www.cbsnews.com/news/seattle-head-tax-amazon-starbucks-repeal-today-2018-06-12/

https://www.king5.com/video/news/local/councilmember-talks-on-repealing-seattles-head-tax/281-8158550

https://www.nytimes.com/2018/06/12/technology/seattle-tax-amazon.html

https://www.nytimes.com/2017/06/16/business/dealbook/amazon-whole-foods.html

https://www.batolls.info/

http://komonews.com/news/local/amazon-starbucks-pledge-money-to-repeal-seattle-head-tax

 

 

 

 

Can’t tell you how many times this familiar admonition has been heard in classes taught by Almost DailyBrett.

Even though the pre-flight instructions are boilerplate, mechanical and dull, this one statement always gets your attention.

Put on your own air mask first … before assisting others.

The point is how can you help anyone else, if you are gasping for air? You can’t.

Americans are recognized as the most generous and giving people on earth. That’s part of the reason we are an exceptional country.

Please feel free to argue in favor of Norway, Sweden, Denmark or any other über-government nation of choice.

According to the Charities Aid Foundation (CAF), charitable giving by individuals as a percentage of GDP: America led the way at 1.44%, New Zealand 0.79%, Canada 0.77% and the UK 0.54%.

If you are scoring at home that means that Americans are contributing nearly 2x more than their nearest competitor.

Is generosity based upon heredity and examples of kindness demonstrated by parents? These are certainly factors.

There is another reason: Many Americans have bought low and sold high. They have invested in their own education. They have used their discretionary income for their retirement, their children’s education, the dream vacation, that new business they always dreamed about starting.

They have put on their own mask first by building personal/family wealth and prosperity.

They have realized that taking care of No. 1 is not selfish, but selfless. They are now in a better position to assist others, to write checks, to give back, to volunteer time to make a difference.

Taking Money Away From The Generous?

There is an unfortunate movement calling for ever-expanding governments in the name of the “public good” to penalize societal achievers with redistributive taxation. In return, there is the vision of guaranteed public sector jobs, free college, healthcare for all and maybe even the ultimate in entitlements: universal basic income.

Who needs college, a job or frankly anything else, when one has direct deposit for governmental largesse and the option to sleep until noon?

Will these souls be willing to part with even a small portion of their entitlement money for little or no work performed to assist others? Is it selfish or selfless to receive government subventions for simply breathing, eating, sleeping and performing biological functions?

Or is there another way?

How about coming up with a great idea? How about becoming an entrepreneur? How about having a dream? And if your vision is realized, then how about giving back big time to those less fortunate?

A great example is the Bill and Melinda Gates Foundation, which donated $41.3 billion so far to fight extreme hunger and poverty in developing nations. Bill Gates through his dreams, the creation of Microsoft, the unveiling of the ubiquitous Windows OS, and earning $92.9 billion in accumulated wealth, has made sure his air mask is tightly bound.

In return, he has assisted literally millions of others through his philanthropy and generosity.

Gates and his co-founder Paul Allen actually created Microsoft in 1975, not government.

Almost DailyBrett can’t stop thinking about how the Obamacare website repeatedly crashed and even its calculator didn’t work. “If you like your doctor or health plan … “

In contrast, how many tens of thousands transactions do Microsoft, Amazon, Apple … process per hour? And they overwhelmingly get these calculations right thanks to ingenious algorithms.

Shouldn’t the mission of a wise government be to foster an environment in which entrepreneurs can continue to dream, to build wealth and to give back to society?

The United States did not become the most generous nation on earth by accident. Our exceptional distinction was powered by those who put on their own mask first, and then … they assisted others, millions upon millions of others.

https://www.independent.co.uk/news/world/americas/america-new-zealand-and-canada-top-list-of-world-s-most-generous-nations-a6849221.html

https://www.donnaschilder.com/articles/life-coaching-articles/put-your-oxygen-mask-on-first/

https://thedijuliusgroup.com/put-your-own-mask-on-before-helping-others-your-best-is-unacceptable/

https://almostdailybrett.wordpress.com/2016/07/06/universal-right-to-a-paycheck/

https://www.gatesfoundation.org/Who-We-Are/General-Information/Foundation-Factsheet

https://www.forbes.com/profile/bill-gates/

“You guys are obsessed with Trump … You pretend like you hate him, but I think you love him. I think what no one in this room wants to admit is that Trump has helped all of you. … He’s helped you sell your papers and your books and your TV. You helped create this monster, and now you’re profiting off of him. – Michelle Wolf speaking to the White House Correspondents Association dinner

Michelle Wolf once again proved the old adage: A stopped clock is indeed right twice a day.

Supposedly, Alec Baldwin is getting “tired” always playing Donald Trump on “Saturday Night Live.” Somehow, someway Alec makes a go of it, even bringing in the real Stefanie Clifford (e.g., porn “star” Stormy Daniels) to play herself as SNL ratings soar.

Speaking to media expert Howard Kurtz, former RNC chairman and Trump chief of staff Reince Priebus, pointed to the universal improvement of media business models and share prices, and proclaimed:

“Trump is Money.”

Whether you are a conservative switching on Fox News, a liberal watching CNN’s angry talking heads or a socialist getting his or her red-meat fix on MSNBC, all three of these news networks are virtually 24/7/365 Donald Trump … and their ratings are upwards to the right.

Everyone and anywhere, the conversations are about Trump. As Patrick Buchanan once said: “Worse than being misquoted, is not being quoted at all.” Trump never suffered from this malady.

Since June 2015, the media has been in a foaming-at-the-mouth state of Schadenfreude waiting to stomp on Trump’s political grave … and yet the news of his demise has been greatly exaggerated.

As Almost DailyBrett and others have stated, Trump is a walking-talking-breathing, daily-outrage via Twitter or his own verbal expression machine. He is catnip to the media, and the Fourth Estate felines are stoned.

Some have suggested the American media (e.g., Wolf quote above) created Donald Trump and made his presidency possible. The mediaQuant estimates are America media provided the wealthiest presidential candidate in history with $4.6 billion (advertising equivalent) in earned media coverage.

Like him or detest him, Trump — “The Apprentice” — knows how the media works and plays it like a violin. There is nothing the media animal loves more than a good fight or a sordid controversy. Trump delivers in spades.

Show Me The Trump Money

The stately Gray Lady, The New York Times, (“All the News That’s Fit to Print”) at one time set the national agenda, providing us mere mortals with the daily subjects to think about and discuss over the dinner table.

That all ended with Twitter, particularly Trump’s nocturnal tweets – most outrageous, some not. Instead of the NYT being the poster child of Agenda Setting Theory, Trump with his presidential bully pulpit is posing the questions of the day … even before the Times hits the streets.

The inhabitants of the New York Times ivory tower have been preempted and leveraged, and they hate it. Let’s … yes, let’s write another front-page editorial chastising this rogue in the White House. That’ll show him.

Here’s the rub. Counterintuitively, negative publicity actually helps Trump. And in turn, Trump sells newspapers, raises Nielsen Ratings and boosts book sales.

We are approaching the three-year anniversary (June 16) of The Donald descending the Trump Tower escalator to declare his candidacy. The media was laughing back then, and going to the bank today.

Shares of the aforementioned New York Times are up 62.48 percent in the same three-year time period. 21st Century Fox, the parent of the Wall Street Journal and Fox News, increased 11.62 percent. Comcast (NBC and MSNBC) is up 12.64 percent. Washington Post, 7.75 percent. Time Warner (CNN), 9.99 percent … How’s that for creating shareholder value?

The media is making money – lots of money – off Donald Trump. They can’t wait to collectively dance on his political grave, but just not now … pretty please with sugar on top.

Hold your collective ears New York Times Pharisees: When it comes to Donald Trump, you are only too eager …  yes, too eager … to buy low and sell high.

https://www.nytimes.com/2018/05/06/arts/television/snl-stormy-daniels-donald-glover.html

https://www.vox.com/policy-and-politics/2018/4/30/17301436/michelle-wolf-speech-transcript-white-house-correspondents-dinner-sarah-huckabee-sanders

https://www.cnbc.com/2016/09/30/breakingviews-trump-cold-shoulder-for-tv-ads-may-set-the-trend.html

https://www.thestreet.com/story/13896916/1/donald-trump-rode-5-billion-in-free-media-to-the-white-house.html

 

 

 

 

Tuesday was the day that Facebook Wunderkind Mark Zuckerberg came to Capitol Hill.

As Zuckerberg spoke on the right-side of the CNBC split screen, the left side told the story of surging Facebook shares.

Facebook’s market capitalization (share price x # of shares) vaulted $21.5 billion that day … that’s serious money.

When the dust settled Tuesday, Facebook’s total market value was $479.4 billion.

Who says you can’t quantify effective public relations? You can … let Almost DailyBrett illustrate at least $21.5 billion reasons why branding, marketing and reputation management make a world of difference.

If you are scoring at home, Facebook (NASDAQ: FB) yesterday jumped $7.11 per share or 4.5 percent to $165.04 at Tuesday’s close of markets. The stock continued to climb today (Wednesday) to $166.32 or a total market cap of $483.2 billion … nearly $4 billion more.

For Zuckerberg, there was no hoodie, no t-shirt, but instead a nice navy blue suit with a royal blue tie.

The 33-year-old Phillips Exeter Academy grad/Harvard University “dropout” said all the right things (at least in his prepared testimony).

Was it a day in which Zuckerberg … Veni, Vidi, Vici … Came. Saw. Conquered?

Maybe not the latter … He was indeed grilled by U.S. senators Tuesday and members of the House of Representatives today, bringing a sense of Schadenfreude to many of the misguided, who want to see these daring entrepreneurs brought down, crashing to earth. Indeed, no good deed goes unpunished.

Nonetheless, Zuckerberg reassured his investors, who have placed their faith and their hard-earned discretionary cash into Facebook shares.

The largest communications platform – let alone social media site — in the history of the planet with its 2 billion-plus subscribers lived to fight another day, albeit government regulation is likely on the way.

Apology Tour?

“We didn’t take a broad enough view of our responsibility, and that was a big mistake. It was my mistake, and I’m sorry.” – Mark Zuckerberg

Zuckerberg was chastised by members of Congress for repeatedly apologizing. Keep in mind these are the same critics who rant-and-scream that Donald Trump never apologizes. Which is worse: Saying you’re sorry or never giving a rat’s behind about anybody else’s feelings?

Almost DailyBrett has a habit of coming down in favor of the risk-taker, the entrepreneur, “The Man in the Arena” as described by Teddy Roosevelt in his famous address at the Sorbonne.

Mark Zuckerberg is surely not perfect as this blog has reported, but at the same time he obviously takes PR advice. He wore the suit, demonstrating respect and deference to the hallowed halls of Congress. His statement was well crafted, not overly long, not legalistic and most of all, it was humble.

He was coached and for the most part was prepared for the grind, the pressure and the questions.

Certainly, the Cambridge Analytica mess harkens concern. Facebook was five-days tardy in responding and the social media post was TLDR (Too Long, Didn’t Read). The last few months have not been the best of times for Facebook. They have not been the worst of times either as the company has the opportunity to do better.

What scares Almost DailyBrett is that members of Congress contend they are tan, rested and ready to craft, pass and enforce regulations to fix Silicon Valley, not only Facebook but Google, Apple and Amazon.

Watching Senator Charles Grassley (R-Iowa) reading a prepared set of questions developed by his staff, one comes away with the sense that the honorable senator wouldn’t know an algorithm if it bit him on his gluteus maximus.

How will the senator and the majority of his colleagues, who are virtually clueless about Silicon Valley, develop regulation legislation that does not stifle the creativity of an American $40.7 billion market leader, employing 25,105, just 14 years after being created in Zuckerberg’s dorm room?

Almost DailyBrett must ask: Who are more vital to America’s future – entrepreneurs such as Jeff Bezos, Tim Cook, Elon Musk, Larry Page, Sergey Brin, Zuckerberg – or the regulators?

Has there ever been a Harvard Business Review article about regulators, let alone museum exhibits.

There are zero statues erected to honor critics, let alone regulators.

https://www.wsj.com/articles/silicon-valley-to-washington-why-dont-you-get-us-1523451203

https://www.nytimes.com/2018/04/10/us/politics/mark-zuckerberg-testimony.html

https://www.cnbc.com/2018/04/11/facebook-ceo-mark-zuckerberg-testimony-key-points.html

http://variety.com/2018/digital/news/facebook-stock-mark-zuckerberg-testifies-senate-1202749625/

http://fortune.com/2018/04/10/heres-why-facebook-just-gained-21-billion-in-value/

https://almostdailybrett.wordpress.com/2018/03/25/too-long-didnt-read-tldr/

https://almostdailybrett.wordpress.com/2012/01/16/in-search-of-another-suite-h33-kirkland-house/

 

 

 

 

 

The four basic tenets of crisis communication:

Tell The Truth,

Tell It All,

Tell It Fast,

Move On.

Can Almost DailyBrett add? Don’t take 937 words or more to tell your side of the story, five days late.

In this age of texting and social media, even 500 words are too much … way too much.

In the wake of Cambridge Analytica’s improper use of data from at least 50 million Facebook subscribers for political purposes, the social media company was conspicuously slow in replying.

The company’s common shares have already lost 13 percent in terms of market capitalization, two class-action lawsuits have been filed, and most likely, the Federal Trade Commission (FTC) has opened an investigation, and most likely Facebook’s CEO will be subpoenaed by both houses of Congress.

Founder and CEO Mark Zuckerberg finally stepped to the plate last Wednesday with his mammoth Facebook post/statement. Reportedly, Zuckerberg has already lost $10 billion in net worth.

Responding to Zuckerberg’s lengthy epistle about Facebook’s Cambridge Analytica affair, Kelly Evans of CNBC declared the company’s statement was TLDR or Too Long, Didn’t Read.

There was no question that Facebook needed to issue a statement from founder/CEO Mark Zuckerberg. Mission accomplished … finally.

Actually reading and re-rereading Zuckerberg’s prose, one is convinced this is a classic case of CEO statement by committee. The world’s worst news releases are those composed by six, seven, eight, nine … or more (including lawyers), each with at least one point that needs to be incorporated.

Forget about zero based budgeting (e.g., one deletion for each addition), the Zuckerberg post comes across as both agonizing and defensive.

Beware Of Too Many Cooks In The Kitchen

What does Almost DailyBrett recommend when it comes to composing a statement in a crisis situation?

First, keep the numbers of cooks in the kitchen to a minimum, no more than six people … including the principal, Zuckerberg, and the general counsel, Colin Stretch.

Second, ask who else needs to be there? COO Sheryl Sandberg? Okay who else? The determination for participation should be based exclusively on need to be there, not nice to be there.

Third, the lead public relations pro should serve as the editor for the post, coming into the meeting with a “strawman” draft, thus providing a starting point for the exercise.

Fourth, the goal of the statement should be completeness but not exhaustive completeness. The question: ‘Have we told our side of the story?’ Don’t expect to answer every question by means of a post. Make your points, and make them clearly.

Fifth, quarterback your disclosure process. Ensure your employees (e.g., Facebook, 25,105), customers (e.g., advertisers), shareholders, investors … everyone receives the message simultaneously.

Sixth, Zuckerberg’s post is “material” under SEC’s Reg FD (Fair Disclosure provision). The issuance of the post/statement requires the immediate filing of an 8-K disclosure, preferably upon the close of the U.S. markets at 4:01 pm EDT/1:01 pm PDT.

Seventh, Facebook’s communications team and hired-gun public relations agencies need to be disciplined, keeping their related chatter with business-political-trade reporters/editors to a minimum. Be deliberately boring. Don’t walk on the statement from the boss.

Looking back on the four tenets of crisis communications in the Facebook/Cambridge Analytica case:

Did Facebook finally tell the truth? Only time will tell, but it appears the company is trying to do just that.

Did Facebook tell it all? From the size of the statement, the company told it all … and then some.

Did Facebook, tell it fast? Five days for a CEO response is untenable. For a social media leader, 937 words is inexcusable (more than three Twitter posts).

Is Facebook moving on with its Sunday newspaper ads?

Facebook is trying, but this story has legs (e.g., lawsuits, congressional testimony, stock under pressure). It appears that Facebook will have to do a better job monitoring the content on its site (most likely with future government regulation), even if it comes from 2 billion subscribers.

Wonder if Mark Zuckerberg wants to go back to his Harvard dorm room?

 

Hard Questions: Update on Cambridge Analytica (937 words)

Today, Mark Zuckerberg announced measures Facebook is taking to better protect people’s data, given reports that Cambridge Analytica may still be in possession of Facebook user data that was improperly obtained. We shared more information on the steps we’re taking to prevent abuse of our platform in a post on our Newsroom.

Mark Zuckerberg

on Wednesday

I want to share an update on the Cambridge Analytica situation — including the steps we’ve already taken and our next steps to address this important issue.

We have a responsibility to protect your data, and if we can’t then we don’t deserve to serve you. I’ve been working to understand exactly what happened and how to make sure this doesn’t happen again. The good news is that the most important actions to prevent this from happening again today we have already taken years ago. But we also made mistakes, there’s more to do, and we need to step up and do it.

Here’s a timeline of the events:

In 2007, we launched the Facebook Platform with the vision that more apps should be social. Your calendar should be able to show your friends’ birthdays, your maps should show where your friends live, and your address book should show their pictures. To do this, we enabled people to log into apps and share who their friends were and some information about them.

In 2013, a Cambridge University researcher named Aleksandr Kogan created a personality quiz app. It was installed by around 300,000 people who shared their data as well as some of their friends’ data. Given the way our platform worked at the time this meant Kogan was able to access tens of millions of their friends’ data.

In 2014, to prevent abusive apps, we announced that we were changing the entire platform to dramatically limit the data apps could access. Most importantly, apps like Kogan’s could no longer ask for data about a person’s friends unless their friends had also authorized the app. We also required developers to get approval from us before they could request any sensitive data from people. These actions would prevent any app like Kogan’s from being able to access so much data today.

In 2015, we learned from journalists at The Guardian that Kogan had shared data from his app with Cambridge Analytica. It is against our policies for developers to share data without people’s consent, so we immediately banned Kogan’s app from our platform, and demanded that Kogan and Cambridge Analytica formally certify that they had deleted all improperly acquired data. They provided these certifications.

Last week, we learned from The Guardian, The New York Times and Channel 4 that Cambridge Analytica may not have deleted the data as they had certified. We immediately banned them from using any of our services. Cambridge Analytica claims they have already deleted the data and has agreed to a forensic audit by a firm we hired to confirm this. We’re also working with regulators as they investigate what happened.

This was a breach of trust between Kogan, Cambridge Analytica and Facebook. But it was also a breach of trust between Facebook and the people who share their data with us and expect us to protect it. We need to fix that.

In this case, we already took the most important steps a few years ago in 2014 to prevent bad actors from accessing people’s information in this way. But there’s more we need to do and I’ll outline those steps here:

First, we will investigate all apps that had access to large amounts of information before we changed our platform to dramatically reduce data access in 2014, and we will conduct a full audit of any app with suspicious activity. We will ban any developer from our platform that does not agree to a thorough audit. And if we find developers that misused personally identifiable information, we will ban them and tell everyone affected by those apps. That includes people whose data Kogan misused here as well.

Second, we will restrict developers’ data access even further to prevent other kinds of abuse. For example, we will remove developers’ access to your data if you haven’t used their app in 3 months. We will reduce the data you give an app when you sign in — to only your name, profile photo, and email address. We’ll require developers to not only get approval but also sign a contract in order to ask anyone for access to their posts or other private data. And we’ll have more changes to share in the next few days.

Third, we want to make sure you understand which apps you’ve allowed to access your data. In the next month, we will show everyone a tool at the top of your News Feed with the apps you’ve used and an easy way to revoke those apps’ permissions to your data. We already have a tool to do this in your privacy settings, and now we will put this tool at the top of your News Feed to make sure everyone sees it.

Beyond the steps we had already taken in 2014, I believe these are the next steps we must take to continue to secure our platform.

I started Facebook, and at the end of the day I’m responsible for what happens on our platform. I’m serious about doing what it takes to protect our community. While this specific issue involving Cambridge Analytica should no longer happen with new apps today, that doesn’t change what happened in the past. We will learn from this experience to secure our platform further and make our community safer for everyone going forward.

I want to thank all of you who continue to believe in our mission and work to build this community together. I know it takes longer to fix all these issues than we’d like, but I promise you we’ll work through this and build a better service over the long term.

https://www.cnbc.com/2018/03/21/zuckerberg-statement-on-cambridge-analytica.html

https://www.cnbc.com/quotes/?symbol=FB&tab=profile

https://finance.yahoo.com/quote/FB/profile?p=FB

https://almostdailybrett.wordpress.com/2012/01/16/in-search-of-another-suite-h33-kirkland-house/

 

 

 

H

“Invariably, when people read the headline about Martin Shkreli, they hate Martin Shkreli. When they get to know Martin Shkreli, they love Martin Shkreli.” – Martin Shkreli on Twitter

“He (Shkreli) needs to be mythical. He needs to be larger than life. He needs to be a rags-to-riches story. That image is his mansion. His Maserati.” – Assistant U.S. Attorney Jacquelyn Kasulis

Martin Shkreli will be celebrating his 35th birthday next Saturday … behind bars.

Earlier, he labeled his federal prosecutors as the “junior varsity.” The JV team won.

His final destination will not be “Club Fed” as Shkreli once boasted on Twitter.

The sentence is seven years in prison with credit for the six months already served, and a $7.4 million fine.

Last month, CNBC dedicated its season debut of “American Greed” to Martin Shkreli. It was a personal branding and reputation management horror show, plain and simple.

There are zero public relations pros — regardless of their years of experience and skill – who could have saved Martin Shkreli from … himself.

No one loves Martin Shkreli – maybe with the exception of Martin Shkreli.

Among his litany of sins – the always smirking, taunting, arrogant Martin Shkreli — violated the cardinal rule of public relations (as if he ever weighed his own PR):

The most important public relations of all … is personal PR.

Former hedge-fund Wunderkind/drug-price fixer Shkreli received a seven year sentence for three counts of securities fraud.

 

His attorneys fought against a full 15-year sentence recommended by the U.S. Attorney, arguing he reportedly should not receive the maximum simply because he is … Martin Shkreli.

Shkreli long ago lost in the courtrooms of public opinion, where he was convicted for being … as the Brits would say, an arse.

For some reason, he refused to even acknowledge the myriad of societal stop signs, which constrain mere mortals. Even on Capitol Hill when he was taking the 5th (Amendment), he was even taunting Members of Congress with his characteristic smirk, and later insulted them on social media.

And today there is a worldwide breakout of Schadenfreude. We are all happy, including Almost DailyBrett, that Martin Shkreli is so sad.

Bringing The Donald and Hillary Together

“That guy is nothing. He’s zero. He’s nothing. He ought to be ashamed of himself.” – Donald Trump

“He still hasn’t said how much the drug will cost going forward, and in the meantime, sick patients still have to wait and worry and continue to pay $750/pill. So Mr. Shkreli, what’s it going to be?” – Hillary Clinton

“If there was a company that was selling an Aston Martin at the price of a bicycle, and we buy that company and we ask to charge Toyota prices, I don’t think that that should be a crime.” – Martin Shkreli on raising the price of Daraprim by 5,000 percent

Martin Shkreli performed magic during the divisive 2016 presidential campaign; he managed to bring Donald Trump and Hillary Clinton into an one-time agreement.

He defrauded his MSMB Capital investors, and raised the price of AIDS drug, Daraprim, from $13.50 to $750 per pill.

With his indefensible actions Shkreli also indicted the entire American pharmaceutical industry, leaving the impression that every company was gauging patients with unjustifiable drug price increases. Some are guilty. Some are innocent.

Eventually, Shkreli called upon his social media followers to steal a lock of Hillary Clinton’s hair as a bounty. He subsequently lost his $5 million bail, and was remanded to jail in Brooklyn.

Shkreli’s attorneys were hoping for a 12-18 month sentence. Federal prosecutors were asking for 15 years or even more. The judge played the sentence right down the middle: seven years.

The reality of jail and the prospect of more than one decade in prison seemed to make an overdue impression on Shkreli.

“There is no conspiracy to take down Martin Shkreli. I took down Martin Shkreli, with my disgraceful and shameful actions … This is my fault. I am not a victim here.” – Martin Shkreli at his March 9 sentencing.

Did Shkreli finally listen to his lawyers?

Was his statement before the judge, and by extension the world, written by a public relations counselor?

Did he in the end, get religion?

Too little, too late Martin.

https://www.cnbc.com/2018/03/09/pharma-bro-martin-shkreli-sentenced-to-7-years-in-prison.html

https://www.wsj.com/articles/martin-shkreli-sentenced-to-seven-years-in-prison-1520621915

https://www.cnbc.com/2018/02/23/the-american-greed-report-how-to-beat-the-pharma-bros-and-save-money-on-your-prescriptions.html

https://www.wsj.com/articles/martin-shkreli-found-guilty-in-securities-fraud-trial-1501873444?mod=searchresults&page=1&pos=35

https://www.hollywoodreporter.com/news/donald-trump-blasts-martin-shkreli-826848

https://en.wikipedia.org/wiki/Martin_Shkreli

 

“When are we going to realize in this country that our wealth is work?” – Comedy Central Jon Stewart assertion to CNBC’s Jim Cramer

Heard one of the talking heads of the chattering class last week on CNBC extol the virtues of “passive investing” in the face of massive volatility and the long-awaited arrival of a Wall Street correction.

Isn’t “passive investing” an oxymoron or a contradiction in terms, if not just plain dumb?

The basic premise is the 54 percent of Americans investing in stocks and stock-based mutual funds should put all of their investments on auto pilot, automatically “investing” a fixed percentage of their pay checks into company 401Ks or brokerage managed IRAs (Individual Retirement Accounts).

On more than one occasion, Almost DailyBrett has been critiqued for surfing Charles Schwab, Fidelity, Zillow and Wells Fargo each on a daily basis.

Is your author an unreformed capitalist? Please allow me to plead, guilty.

What’s curious is no one seems to raise an eyebrow to those constantly burying their noses into their smart phones, spending an inordinate amount of time on Facebook or Snapchat or bingeing on video games or streaming video.

As Jon Stewart correctly surmised in his 2009 televised pants-zing of Jim Cramer, far too many times retail investors have been sold this notion that markets inevitably go up, so don’t mind volatility and fluctuations. Forget about it!

And if that is indeed the case, panicking only leads to losses. No argument.

The question that Almost DailyBrett is raising and arguing is very simple: Do we want to manage your wealth accumulation or be managed by others who may not have our best interest at heart?

The Day, The Music Died

“I went down to the sacred store; Where I’d heard the music years before; But the man there said the music wouldn’t play.” – Don McLean, American Pie

Your author contends that portfolio management is not the same as day trading. At the same time, the notion of long-term investing makes absolutely no sense. Back in the 1990s, one would have been advised to invest in IBM, Cisco, Intel and Microsoft and walk away.

With the exception of Microsoft, the music stopped playing for these “DinoTech” stocks.

Worse, the 1990s investor would have missed the massive upsides of newly minted 21st Century rock stars, the likes of Facebook, Amazon, Netflix and Google (FANG).

Since the days of the three Gees – Andy Grove, Bill Gates and Lou Gerstner (all retired or in one case, deceased), a new trove of corporate rock stars has ensued – Mark Zuckerberg (Facebook), Tim Cook (Apple), Jeff Bezos (Amazon) and Elon Musk (Tesla).

Don’t you know, these shooting stars will eventually flame out? And as Don McLean wrote and sang, their music will eventually die.

Who will be the rock stars of the next decade? Should we keep some money on the sidelines, ready to buy low and sell high. If we become “passive investors,” we will blindly throw our hard-earned, discretionary dollars at Wall Street regardless of bull market or bear market.

Shouldn’t we be selling near or at the height of the market and buying near or at the low of the market? Or should we just designate portions or our IRAs or 401Ks to this mutual fund manager or that mutual fund manager because they are the “experts”?

Where Do You Shop? What Products/Services Do You Buy?

“I don’t care about a stock’s past, only its future.” – Jim Cramer of CNBC’s “Mad Money”

Almost DailyBrett has his fair share of mutual funds – domestic/foreign; large cap/mid-cap/small cap – and cash under management. Your author also manages four individual stocks, carefully avoiding the perils associated with all eggs coming from one chicken.

Apple: Let’s see, in the morning your author reaches for his Apple Smart Phone, runs to classic rock sounds on his antiquated iPod, and turns on his Mac at work. You bet ya, Apple is part of the portfolio.

Boeing: Considering that Donald Trump is president and more federal dollars are headed for defense and the economy is strong, regardless of market gyrations, Boeing has been a solid buy. The company sold 700 commercial airliners this year and plans to deliver 800 next year. Has your author been transported by Boeing Aircraft? Is the Pope, Catholic?

Nike: Uncle Phil is the founder of athletic apparel market leader and the über-benefactor of University of Oregon Athletics. Nike shoes/gear are worn for morning runs to complement the Nike+ software program on the Apple iPod.

Salesforce.com. Marc Benioff hails from my undergraduate alma mater, the University of Southern California (May The Horse Be With You). Mark is the founder, chairman and CEO of business software innovator, Salesforce.com. Let’s face it, many may claim a cloud legacy, but Salesforce.com was first to SaaS or Software as a Service.

Apple, Boeing, Nike and Salesforce are the four present individual securities in the portfolio of Almost DailyBrett. Are they examined and managed on a daily basis? You bet ya. Will they be there forever? Forget it.

Should an investor, who rejects passivity, consider these individual stocks?

Only your investment advisor knows for sure.

https://www.nytimes.com/2015/08/08/opinion/joe-nocera-on-the-cramer-takedown.html

http://www.cc.com/video-clips/iinzrx/the-daily-show-with-jon-stewart-jim-cramer-pt–2

https://don-mclean.com/

 

 

“We have a deep sense of responsibility to give back to our country and the people who help make our success possible.” – Tim Cook, Apple chief executive officer

The largest taxpayer in the world is paying more … $38 billion more … in one lump sum.

Apple is repatriating $200 billion in the world’s largest amount of overseas corporate assets, $252 billion.

The company also announced $350 billion in direct investments in the U.S. economy, not just share buy-backs. Apple will create 20,000 jobs right here in America.

Almost DailyBrett is proud to be an Apple shareholder, for more than the 83 percent in share appreciation since 2015.

Tim Cook and his lieutenants are proving to the world that a great company can be more than the innovator and producer of wonderful products (i.e. iPhone X, iPads, Mac). Apple is more than 123,000 jobs with full benefits and a terrific return for its shareholders

Apple is also redefining the relationship between fiduciary responsibility and corporate social responsibility (CSR).

To a few misguided, well-meaning souls, major corporations are somehow the enemy of the masses. And yet how does one who holds these views explain Apple’s good deeds?

The $38 billion is happening right now. These are additional revenues for the government that would have remained trapped overseas without a reduction in the world’s largest 35 percent corporate rate to 21 percent.

Think of $38 billion in terms of 38 x 1,000 x $1 million. That amount can start to make a quite a dent in fixing our highways, airports, bridges and other major infrastructure needs.

FILE PHOTO: The Apple Campus 2 is seen under construction in Cupertino, California in this aerial photo taken January 13, 2017. REUTERS/Noah Berger/File Photo

So much for those who say that tax reform is not a dynamic scoring stimulus.

These are the same folks who conveniently forgot the nation’s largest peacetime expansion occurred during the Reagan Presidency years in which 19 million jobs were created.

Yes, there will be a $1.75 billion-over-20 years impact to the federal treasury using static scoring.

But how much additional economic stimulus will come from putting more revenues back into the economy and lifting time-consuming, expensive regulations? This is the serendipity of dynamic scoring.

Now that Apple has announced the one-time payment of record taxes, a flood of domestic investment and five-figure increases in hiring, will Microsoft, Cisco, Google and Oracle do the same?

According to Standard & Poors, Microsoft has $132.1 billion in overseas holdings; Cisco, $69.1 billion, Google, $60.5 billion and Oracle, $58.5 billion.

Messrs Satya Nadella (MSFT), Chuck Robbins (CSCO), Larry Page (GOOG) and Mark Hurd (ORCL), it is time for each of your companies to follow Tim Cook’s lead and to give back to America.

Great Time To Be A College Graduate

As a tenure-track assistant professor of public relations, integrated marketing communications, corporate communications and investor relations, the author of Almost DailyBrett could not be more excited for my graduating students.

Please do not dismiss my excitement as Greenspanesque “Irrational Exuberance.” There is little doubt that our 26,000-point Dow is in need of a healthy correction, maybe 10 percent or more.

Nonetheless, when was the last time that our GDP (gross domestic product) was growing at a 3 percent annualized rate?

Our unemployment rate stands at 4.1 percent, very close to full employment.

Wages and salaries are rising, reflecting a labor shortage for skilled employees.

Our inflation rate (e.g., Consumer Price Index) was 2.1 percent in December.

The Federal Reserve’s Fed Funds rate is 1.25 percent.

Hmm … bull market, expanding global economy, low unemployment, labor shortage, low inflation, miniscule interest rates … sounds like a Goldilocks Economy. What’s not to like?

To top it off, we now have tax reform and regulatory relief.

Certainly, all of these factors will not last forever. They can’t and they won’t.

Having said all of the above, this is a great time to start or revive a career. Your author could not be more stoked for his students.

And he has more than once cautioned his students against taking the first offer. Don’t be arrogant. At the same time, don’t be afraid to be confident and maybe a tad bold.

Tim Cook and Apple have the wind in their sails. And to prove it, they are paying record taxes, investing in America and hiring Americans.

We have at least 200 billion repatriated reasons to rejoice.

https://www.wsj.com/articles/apple-to-pay-38-billion-in-repatriation-tax-plans-new-u-s-campus-1516215419

 

 

 

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