Category: Wall Street


“The president of the United States tweeting negative things about your brand (e.g., ESPN) in an environment where you’re already at risk and you’re already on a downward trend, it’s just not what you want to see happening.” – Stephen Beck, cable TV consultant

“ESPN is about sports … not a political organization.” – ESPN President John Skipper

ESPN proclaims itself as “The Worldwide Leader in Sports.”

If that is true then why are so many labeling the troubled network: MSESPN?

Why is an ESPN anchor (e.g., Jamele Hill) taking to Twitter to call the president of the United States as a “White Supremacist” and a “Bigot”? Sounds like politics, not sports.

With the likes of Stephen Colbert, Rachel Maddow and Bill Maher filling up TV screens at other networks, does the avid sports fan tune into ESPN for affirmational political commentary?

Do you think more than a few of ESPN’s remaining viewers may not necessarily agree? More to the point, don’t they just want to watch their game of choice, and check out the highlights on “Sports Center”?

Predictably, Trump replied via his own customary tweet, reminding the world that ESPN is losing subscribers in a fast-and-furious way (e.g., 100 million in 2011 to 87 million now).

Time to sell the stock, Disney shares in particular?

Almost DailyBrett needs to ask a basic question: Why is the so-called “Worldwide Leader in Sports” becoming embroiled in politics when the nation is the most divided since the days of the Civil War?

Does the Bristol, Ct., network appreciate that contrary opinions may actually exist west of the Hudson? See 2016 Electoral College map for details.

Some have questioned why the network presented the Arthur Ashe Award to Caitlyn Jenner, provided sympathetic coverage of Colin Kaepernick not standing for the national anthem, moved Asian announcer Robert Lee out of the broadcast booth, fired conservative two-time World Series winner Curt Schilling, while not terminating Jamele Hill for her presidential broadsides?.

This commentary is not to suggest that ESPN should not cover provocative sports issues (e.g., O.J. Simpson parole hearing), but one cannot fathom the arbitrary direct shots by a sports network anchor at the commander-in-chief.

Analysts have stated that ESPN’s well-documented troubles are a product of market factors including widespread chord-cutting and the growing acceptance of streaming video. Okay. Then why potentially exacerbate the loss of 13 million viewers by angering millions of viewers, who may just happen to be conservative?

There is a reason why Fox News is the consistent ratings leader in cable news, easily beating MSNBC and CNN in the Nielsen Ratings. Why tick off huge swaths of the public?

“Ballmer and Butthead”

Almost DailyBrett earlier questioned Sun Microsystems founder and chief Scott McNealy’s obsession with Microsoft, who he saw as technology’s evil empire.

Thinking he was so friggin’ clever, McNealy drew laughter when he labeled Microsoft’s Steve Ballmer and Bill Gates as “Ballmer and Butthead.”

He also raised eyebrows for making these brash comments while his failing company harbored a $3 per share price. Alas after 28 years, Sun Microsystems went into oblivion having been absorbed by Oracle in 2010.

The connection with ESPN is that a company needs to appreciate its raison d’ etre. What are a corporation’s bread and butter? What is a firm’s brand? What are the meanings of the logo, signage, colors, fonts and style?

Southwest Airlines is “The Low-Fare Airline”; Nike is “Just Do It”; Apple is mainly the iPhone as reaffirmed last week. Sun Microsystems was Java script and servers, but the brand sadly degenerated into becoming synonymous with McNealy’s sophomoric punch lines.

ESPN is the “Worldwide Leader in Sports.” Does it want to be the worldwide leader in left-of-center sports commentary? If so, the network will become a niche player instead of the market-share leader in sports programming.

The adults at Fox Sports will then take over that leadership position, leaving MSESPN to cater to its chosen core of left-of-center “sports” fans.

http://money.cnn.com/2017/09/15/media/trump-espn/

http://www.cnn.com/2017/09/15/politics/jemele-hill-espn/

http://www.politico.com/story/2017/09/15/trump-kicks-espn-where-it-hurts-242785

http://www.complex.com/pop-culture/2013/09/tech-ceos-talking-shit-about-their-rivals/mcnealy-shots-on-gates-and-ballmer

https://www.recode.net/2016/5/4/11634208/scott-mcnealy-is-stepping-down-from-the-ceo-job-you-didnt-know-he-had

https://almostdailybrett.wordpress.com/2011/08/12/%E2%80%9Cballmer-and-butthead%E2%80%9D/

http://insider.foxnews.com/2017/09/12/espn-jemele-hill-calls-donald-trump-white-supremacist-kid-rock-pandering-racists

 

 

 

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The BMW Museum and BMW World are located directly across from each other at the headquarters of the luxury auto/motorcycle designer/manufacturer in München.

Bayerische Motoren Werke (e.g., Bavarian Motor Works or BMW) adopted the tag, keeping faith with the “Rule of Three”: The Ultimate Driving Machine.

Based upon the company’s expert use of the English language and conceivably the home German Sprache as well, BMW achieved the much desired marketing goal of less is more.

Translated, BMW was able to deliver a compelling message to its target audiences (i.e., customers, media, shareholders, suppliers) using an economy of words. At the same time, each word has purpose with a powerful amplifying adjective to enhance the corporate brand and to drive sales (no pun intended).

And for the most part there is little repetition of words and no clichés (see “solutions”).

Here is how BMW at its museum describes its legendary design and engineering prowess:

 

Let’s breakdown BMW’s 101-word statement by sentence with a focus on carefully selected nouns and powerful modifying adjectives. The Almost DailyBrett (ADB) commentary follows each sentence.

“At BMW, designs are created by people for people.

ADB: The brand is immediately identified. Short, punchy attention-grabbing opening.

“In an inspiring culture of dialogue, a wide variety of disciplines, expertise and experience are combined to become an unrivaled creative force.

ADB: Skillful use of the Rule of Three: disciplines, expertise and experience. Powerful adjectives modifying concluding noun – unrivaled creative force.

“The common goal is to achieve the perfect harmonious development process for designing a vehicle.

ADB: BMW designers and engineers work as a team, using “the perfect harmonious development process … .” All organizations seek out skillful team players.

“The unique feature of this process is the internal design competition.

ADB: The “unique” feature is “competition” in internal design. As Martha would say, creative tension is a ‘Good thing.’

“It ensures the power of innovation is always present.

ADB: “Power” and “Innovation” are two of the most vibrant words in any language

“Only a strong team with a professional approach can successfully complete this demanding competitive stage.

ADB: This statement misses no opportunities to present compelling nouns with enhancing adjectives: Strong before team; Successfully before complete; Demanding and competitive before stage.

“Commitment, enthusiasm, perfection and a passion for every single detail are the key elements in producing a successful design.”

ADB: Rule of Three once again – Commitment, enthusiasm, perfection. Pathos or passion for every single detail. Key modifying elements. Strong verb: producing. Successful before design.

Let’s face it. Marketing in the 21st Century is far too many times subject to clichés or lazy combinations of buzz words.

For example, FedEx shamefully took the overused “Sustainable” and the mind-numbing “Solutions” and came up with … you guessed it … “Sustainable Solutions” for its ad about how the package carrying company’s planes and trucks protect the critters in the forest.

Gag!

How’s that for green washing on steroids?

Less is More

“The way in which information is exchanged so quickly has forever changed the way in which people want to consume information. They demand that things be condensed into 20-second sound bites. With complex problems, this is exceedingly difficult, but to be an effective communicator and leader you need to be able to condense complex items down to the core and be able to do this quickly.” – Tony Blair, former UK Prime Minister.

Certainly, BMW is not the only company on the planet that makes the most out of the least number of words. Having said that, BMW is mindful of Prime Minister Blair’s admonition, which is particularly relevant in our microscopic-attention span, texting culture.

 

Here are the nouns that BMW chronologically chose to tell the story: Designs, Culture, Dialogue, Disciplines, Expertise, Experience, Force, Goal, Development Process, Features, Competition, Power, Innovation, Team, Approach, Commitment, Enthusiasm, Perfection, Passion.

Now let’s examine the adjectives – once again in chronological sequence – to amplify the nouns to present BMW’s engineering culture: Inspiring, Unrivaled. Creative, Perfect, Harmonious, Unique, Internal, Strong, Professional, Demanding, Competitive, Successful.

Almost DailyBrett is fired up after reviewing that list.

As an assistant professor of public relations, investor relations and integrated marketing communications, your author knows the bottom line is to tell the story, and to tell it well.

BMW achieved this worthy goal in just 101 skillfully chosen words and bolstered the legendary, iconic brand as well.

Wunderbar!

Are the Germans finally – after all these years — happy?

If they are for the most part smiling about life, doesn’t that mean good news for the incumbent-chancellor-running-for-re-election, Angela Merkel?

Doesn’t good government translate into good politics?

And yet there’s so much for her to fear.

The Governor George Deukmejian Laws of Politics are two-fold: Always run as if you are running behind; and never take anything for granted.

Consider that two years ago, a national F-U movement led to Brexit, and the U.K.’s upcoming departure from the strictures of the EU.

Last year America’s fly-over states pointed their collective middle fingers into the sky, and elected Donald Trump as president.

How are Brexit and Donald Trump working out?

During the past three weeks, the author of Almost DailyBrett has been informally sounding out das Volk on trains, in Bier Gartens, in hotel lobbies (all very unscientific and anecdotal) about their views about the state of their country.

When asked if they are truly happy, they seem a little startled by the sophomoric question from a simple blog author. After devoting more than a few brain cells, they come back to the conclusion that Germany is successful (e.g., low unemployment rate of 3.9 percent).

If James Carville was correct in 1992 that “It’s the economy stupid,” then the prospects are good for Frau Merkel on September 24. As The Economist reported last month, Germany has the largest trade balance in the world at $300 billion.

The nation’s budget is not only balanced, it reflects a surplus. Inflation is low at a microscopic 0.4 percent. Personal savings are high. German engineering is legendary. Alles ist in Ordnung.

Has Germany’s Standard of Living Passed America’s?

When the author of Almost DailyBrett visited divided Germany for the first time 30 years ago, the question of German happiness would seem silly. In fact, one would not even imagine, posing that interrogative.

Sitting on the terrace of the Burg Hotel Auf Schönburg in Oberwesel on the Rhine River, one can easily imagine the DAX equivalent of the Dow Transports are easily going upwards to the right. Passenger and freight ships glide northwards on the Rhine or swim similar to salmon against the currents.

Trains emerge and disappear into tunnels. Passenger cars move along the two shores or just miles away race along the no-speed limit autobahns.

German cities including Berlin, Nürnberg and München are bustling with shoppers in the stores. Spaces in the sidewalk cafes are hard to find. The large beer gardens (e.g., München’s Viktualien Markt) are jammed from happy hour into the night.

The smaller tourist towns (i.e., Heidelberg, Rothenburg ob der Tauber, Bacharach) are luring visitors seeking out castles, half-timbered houses, gardens and the white wine fruit of the vineyards.

Virtually everywhere are solar panels, modern windmills and soon electric cars from BMW and Tesla. Recycling is the rage, and clear demarcations lead to largely harmonious co-existence between walkers and bike riders.

Many have ruminated about Germany’s angst about Vergangenheitsbewältigung or dealing with the past, namely the Hitler era between 1933-1945. The Germans have addressed these horrific years by acknowledging responsibility, building monuments to the past (e.g., Holocaust Memorial in Berlin) or “Documentation Centers,” such as the one near the former Nazi parade grounds in Nürnberg or a Bunker Museum in Berlin.

Nothing has been forgotten. Everything has been acknowledged. History is all there in broad daylight. The Reichstag dome is transparent to signal a change in the national approach to governance.

Is It Truly Morning in Germany?

Ronald Reagan ran for re-election in 1984 under the banner, “Morning in America.”

The message was patriotism, good times, and a promising tomorrow. Reagan won 49 of 50 states that November.

Merkel is courageously embracing the German flag – the black, red and gold tricolor – as she presents her three-term administration for another four years next month. Germans proudly wave their democratic flag in Deutsche Fussballbund games. The message is love of land, not nationalism. Those unfortunate days for the latter are gone, and for good reason.

Will Angela Merkel win in September embracing the flag, and essentially saying it is indeed “Morning in Germany”? Her latest campaign ad reflects that strategy.

Almost DailyBrett was wrong about Brexit and the same about Trump. These undeniable points need to be acknowledged. And yet, there are no strident middle fingers to be seen in today’s Germany.

The collective mood points to the prospect of a smiling Angela Merkel on September 24. If so, Germany will continue to be in Mutti’s sure hands.

https://www.washingtonpost.com/world/europe/germans-are-learning-to-love-germany-again-and-merkel-takes-note/2017/07/20/28951bbe-68a8-11e7-94ab-5b1f0ff459df_story.html?utm_term=.147da70955c9

https://almostdailybrett.wordpress.com/2017/07/12/the-new-german-problem/

http://www.history.com/topics/us-presidents/ronald-reagan/videos/morning-in-america

https://www.economist.com/news/leaders/21724810-country-saves-too-much-and-spends-too-little-why-germanys-current-account-surplus-bad

https://www.economist.com/news/briefing/21724801-germany-admired-its-stability-derided-persistent-trade-surpluses-good-and-bad

 

 

Doesn’t the Declaration of Independence provide for life, liberty and the happiness of pumping our own gas?

There is certain joy that comes from feeling the surging petroleum rocket from the pump directly into my little green chariot. This Freude is kosher in the State of Washington and in California.

But what about that state in between?

Since 1951, it has been Verboten for a mere mortal motorist to pump his or her own gas in the State of Oregon. This antiquated 20th Century law requires petroleum transfer engineers (e.g., popular major at Oregon State University), and only PTEs to exchange fluids in the Beaver State.

What’s that Elon Musk?

Are you saying that EVs could spell doom to the PTEs?

The first affordable Tesla Model 3s are coming off the production lines in Fremont, California (the old NUMMI plant). The initial plans call for 110,000 this year and 500,000 next year.

From $35,000 upwards to $60,000 with all the fixins’, the intrepid all-electric motorist can roar from zero-to- 60 mph in 5.6 seconds with just a tap on the dashboard tablet without omitting one fossil fuel particle into the atmosphere.

Elon Musk, CEO of US automotive and energy storage company Tesla, presents his outlook on climate change at the Paris-Sorbonne University in Paris on December 2, 2015. / AFP / ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images)

How’s that sound green Oregonians?

Even a Prius requires a PTE now-and-then. And despite all the hype and owner strutting, the Toyota hybrid still contributes to Climate Change. The proud owner may still be gluten free, but his or her precious Prius is nonetheless putting CO² into the air.

In contrast, the Tesla Model 3 can travel 220-to-310 miles on one charge of electricity. What does that mean to Oregon’s PTEs (same for New Jersey’s legally mandated PTEs)? Are each of you heading for the same crash landing as those who made buggy whips?

Electronic vehicles make PTEs as uncomfortable as a former sales dude or sales dudette at Borders as the imposing Amazon digital shadow hovered over the bricks-and-mortar store. Did you have that out-of-print book, Borders? Do you sell that obscure concerto, Barnes & Noble? Amazon does (Google “Long Tail” Theory”) as there are no physical restraints on its inventory.

Maybe the Oregon PTEs will unionize (if that haven’t already) and march into Salem (not the one where they burned witches) and ask for a new law requiring ETEs (Electricity Transfer Engineers) to recharge EVs in Oregon.

Wait a minute? Oregon could actually mandate that ETEs recharge your Climate Change friendly EV? Don’t bet against it.

Think of it this way, if the state Legislature in its infinite wisdom for 66 years and counting required PTEs to pump gas into each car and expressly forbids the motorist from doing the same, then what’s to prevent them from requiring highly trained electricity transfer engineers (ETEs) to recharge your EV Tesla, Volvo, BMW, Chevy etc.?

What’s next? Will the state mandate an ETE to plug in your toaster or change a light bulb?

Incentives Today; Taxes Tomorrow

Immediately south of Oregon, the Golden State’s one-party Legislature is weighing adopting the California Electric Vehicle Initiative, which would designate $3 billion for larger rebates for those who purchase Tesla and other electric cars.

In April, the same Legislature passed legislation raising California’s gas tax by 12 cents to 30 cents per gallon.

Let’s see the state is considering incentivizing EVs to the tune of $3 billion. And nearly at the same time raising gas taxes to raise $5.2 billion.

What happens if the EV revolution is real and a precipitous decline in fossil-burning vehicles ensues? Does that mean gas revenues will simultaneously decline? Oh dear.

And does that lead to actually taxing EV recharges even though these environmentally friendly cars have been incentivized by the state?

What’s more important in Sacramento and other state capitals? The environment? Tax revenues?

Seems like a silly question to even ask.

https://www.cnbc.com/2017/07/31/tesla-falls-after-model-3-as-street-thinks-musk-sounded-squeamish.html

https://www.washingtonpost.com/news/innovations/wp/2017/07/29/i-spent-three-minutes-inside-teslas-model-3-and-im-still-thinking-about-it-a-day-later/?utm_term=.98459e459664

https://www.quora.com/Why-is-it-illegal-to-pump-your-own-gas-in-New-Jersey-and-Oregon

https://www.wsj.com/articles/tesla-model-3-arrives-as-elon-musk-tries-to-manage-expectations-1501234208

http://www.mercurynews.com/2017/06/28/new-bigger-incentives-for-electric-cars-could-be-ahead-in-california/

http://www.latimes.com/politics/la-pol-sac-gas-tax-signing-20170428-story.html

 

 

 

 

“Do I consider myself part of the casino capitalist process by which so few have so much and so many have so little by which Wall Street’s greed and recklessness wrecked this economy? No I don’t.” – Senator Bernie Sanders

Ever wonder why there are so few in the street carrying pitch forks?

Ditto for nocturnal torch-light parades?

Maybe the answer lies in the fact that Wall Street added $3.3 trillion in market capitalization (share prices x number of shares) since November 8. Translated: Investors are more than $3 trillion to the better since the election.

Whatever metric is used, the stock indices are sharply upward to the right: The NASDAQ increased 28 percent since the election, the S&P 500 is up 27 percent, and the Dow advanced 20 percent.According to Gallup, 55 percent of Americans owned individual stocks, stock mutual funds or managed 401(k) portfolios or IRAs in 2016. That figure is understandably down from 65 percent right before the economic crash in 2007, but it has been steadily advancing since then.

Almost DailyBrett will go out on the limb, and will contend the 55 percent number has grown since the historic 2016  election.

Predictably, the Gallup survey revealed that 88 percent of American families making over $75,000 are invested in individual securities, mutual funds and 401(k)s and IRAs. More than half of those (56 percent) making between $30,000 and $75,000 are invested in stocks.

The survey also revealed that 73 percent with bachelor’s degrees own stocks, mutual funds or invest retirement accounts, and 83 percent with master’s degrees or above also are investing in these same U.S. markets.

When one takes a second to ponder that 55 percent of middle-and-upper income Americans are participating in stocks, mutual funds, 401(k) portfolios and IRAs, the conclusion is obvious: America now has an investor class that is growing in numbers and wealth.

What’s the alternative for those investing for their retirement, their children’s education or that dream vacation? Bank interest rates that barely keep up with inflation? Speculative real estate? Stashing gobs of cash under the bedroom mattress?

And yet there was an ill-fated movement to tarnish America’s markets, Occupy Wall Street.

And now there are efforts in a handful of progressive states to impose a 20 percent “privilege tax” on the fees of financial advisors. Hmmm … wonder if this tax will be passed onto investors, the very same people who are trying to fund their retirement or college for their kids?

Attacking The Cash Cow?

“ … You could put half of Trump’s supporters into what I call the ‘Basket of Deplorables’. Right? The racist, sexist, homophobic, xenophobic, Islamaphobic — you name it.” – Hillary Clinton.

“ … There are 47 percent who are with him (Obama), who are dependent upon government, who believe that they are victims, who believe that government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you name it … And so my job is not to worry about those people.” – Mitt Romney.

What do Mitt Romney and Hillary Clinton have in common besides being guilty of lambasting literally millions of people in one unwise campaign utterance?

They both lost the presidency.

Winston Churchill once said: “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”

Wall Street will never be perfect. The playing field has never been flat. Having said that, far more win with stocks, mutual funds, 401(k) plans and IRAs than lose. It has been upward to the right on a jagged line since 1929.

Maybe that is the reason why America has a more-than-half of its working age population investing in global markets. And for those investing, the six-plus months since the election has produced a record modern-era, bull market for any new president.

Granted, there will be those in the streets who bode ill for American markets, favor “privilege taxes” to stimulate more compulsory redistribution, and are maybe just a tad nostalgic for the mismanaged Occupy Wall Street debacle.

Do they really want to attack Wall Street and by extension America’s 55 percent and growing, investor class heading into the mid-terms of 2018 and beyond? Are these overheated rhetorical thrusts, smart politics?

If they relish in glorious defeat, they can insult America’s investor class to the content of their bleeding hearts.

They also should consider and ponder that America now has a new quiet majority, who fund their dreams with a simple click of the mouse while watching the tickers on CNBC.

http://www.gallup.com/poll/182816/little-change-percentage-americans-invested-market.aspx

https://www.whitehouse.gov/the-press-office/2017/06/01/statement-president-trump-paris-climate-accord

https://www.usatoday.com/story/money/markets/2017/04/26/millennials-and-investing/100559680/

https://www.wsj.com/articles/illinoiss-privilege-tax-proposal-forgets-citizens-right-to-leave-1495834522

https://almostdailybrett.wordpress.com/wp-admin/post.php?post=5922&action=edit

https://www.brainyquote.com/quotes/quotes/w/winstonchu101776.html

http://www.foxnews.com/opinion/2017/07/20/stuart-varney-trump-has-already-made-america-4-trillion-richer-with-just-six-months-in-office.html

 

 

 

 

 

 

I’d like to warn the best of them, the iconoclasts, the innovators, the rebels, that they will always have a bull’s-eye on their backs. The better they get, the bigger the bull’s-eye. It’s not one man’s opinion; it’s a law of nature.” – Nike founder Phil Knight

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena …” – President Teddy Roosevelt

There are no statues devoted to critics.

Our increasingly complex data-driven society is overloaded with analysts, reviewers, chroniclers, interpreters – creating nothing of meaningful value – but they are always quick to cast stones at those who try to make the world a better place.

As Phil Knight said in his New York Times best seller Shoe Dog, “Entrepreneurs have always been outgunned, outnumbered.”

A perfect example – not the first one and certainly not the last – is the use of a series of infographics to depict an engineering/entrepreneur who tried and tried and succeeded brilliantly, but is portrayed by his failures.

A May 26 MarketWatch piece by Sally French includes a five-part infographic, which catalogs a litany of failures by Tesla co-founder, SpaceX founder, SolarCity co-founder and PayPal co-founder Elon Musk.

When asked to describe himself by Steve Croft of CBS’ “60 Minutes,” Musk responded that he regarded himself simply as an engineer. Almost DailyBrett has worked with engineers for years, attempting to transform their anal exactitude, never-ending acronyms and nomenclature into plain English.

What characterizes engineers is their willingness, their compulsion to throw ideas at the wall. Some will stick, and others … oh well.

Elon Musk is not afraid to fail. He is more scared by the prospect of not even trying.

Alas, Musk is human. Five of his SpaceX rockets blew up. He was ousted from PayPal on his honeymoon. He made $180 million from his stake in PayPal. He invested this money and presumably much more in SpaceX and Tesla, both were hemorrhaging cash. He was not only broke, but in way-over-his-head debt in 2008.

Today, Musk is Forbes’ #80 wealthiest individual on the planet with an estimated worth of $13.9 billion. His Tesla is the pure-play leader in energy-efficient electric cars, ion-Lithium batteries and solar. Is Tesla an electric car company that helps combat climate change? An energy company that shuns fossil fuels? Or is it, Elon Musk’s company?

How about all of the above? To most investors, the answer would be third … Tesla is Elon Musk’s company … and there may lie the reason for the MarketWatch infographics, illustrating Musk’s failures. Schadenfreude has never felt so good or gut.

A similar set of questions can be asked about Musk’s SpaceX, which is transporting materials to the International Space Station and may someday put humans on Mars. Think of it this way, four entities have successfully fired rockets into space: The United States of America, Russia, China and Elon Musk’s privately held, SpaceX.

The Importance of Failure

“I think it’s important to have a good hard failure when you’re young because it makes you kind of aware of what can happen to you. Because of it, I’ve never had any fear in my whole life when we’ve been near collapse.” — Walt Disney

Would you rather be Steve Jobs, who was terminated by the company he created, Apple?

Or would you rather be John Sculley, who will go down in history as the man who fired Steve Jobs?

 

 

Sculley recently tried to blame the termination of Jobs on the Apple Board of Directors at the time, but the die has already been cast. Sculley will follow Jobs to the grave as the man who sent packing the modern-day equivalent of Leonardo da Vinci.

Nike founder Phil Knight recounted in his memoir how he started his company with a $50 loan from his dad. Today, Nike is the planet’s No. 1 athletic apparel and shoe provider with $33.92 billion in revenues, $86.8 billion in market capitalization and 70,000 employees.

Uncle Phil is the 28th wealthiest homo sapien in the world at $26.2 billion. Keep in mind, this company was literally days, if not hours, away from bankruptcy too many times to count between 1962 and going public in 1980.

For Musk, his tale is a South Africa-to-America story. Today, Tesla is a $8.55 billion company, employing 17,782 with investors pouring $53.4 billion into its market cap.

Almost DailyBrett has been consistent in hailing the risk takers, the entrepreneurs, those who stare failure right in the face and sneer. The results are great companies that employ 10s of thousands and produce the products we want and need.

There will always be those who rage at the “billionaire class” to score political points.

And some with too-much-time-on-their-hands develop infographics to illustrate how the great have fallen here and there.

Wonder if any of these critics, analysts, reviewers etc. would have fired Steve Jobs?

Almost DailyBrett radical transparency: Your author happily owns shares in both Nike (NYSE: NKE) and Tesla (NASDAQ: TSLA). The above epistle does not constitute investment advice for either company other than to generically say, Buy Low, Sell High.

http://www.marketwatch.com/story/the-many-failures-of-elon-musk-captured-in-one-giant-infographic-2017-05-24

http://www.theodore-roosevelt.com/trsorbonnespeech.html

http://www.marketwatch.com/story/the-fascinating-life-of-elon-musk-captured-in-one-giant-infographic-2016-04-13

https://www.youtube.com/watch?v=bojY5N2Ns3k

https://almostdailybrett.wordpress.com/2015/02/05/a-man-in-the-arena/

https://www.forbes.com/billionaires/list/#version:static

https://www.forbes.com/sites/randalllane/2013/09/09/john-sculley-just-gave-his-most-detailed-account-ever-of-how-steve-jobs-got-fired-from-apple/#38def8d4c655

 

 

 

 

 

 

 

 

“You can’t foment. You can’t create an impression a stock is down. You do it anyway because the SEC doesn’t understand it.” – Former Goldman Sachs hedge fund manager Jim Cramer

“Apple is very important to spread the rumor that both Verizon and AT&T have decided they don’t like the phone (iPhone). It’s very easy to do. It’s also easy to spread the rumor the phone is not ready for Macworld.”  — Cramer explaining how shorting hedge-fund managers drive down a company’s stock price through rumor mongering

“I want the Jim Cramer of CNBC (Mad Money host) to protect me from that Jim Cramer (Goldman Sachs hedge-fund manager) – Comedy Central’s Jon Stewart

Many of us watched Jon Stewart take apart Jim Cramer on Comedy Central’s The Daily Show With Jon Stewart. The legendary 2009 interview went viral, including Cramer’s bragging about short selling, even among those who do not subscribe to the notion of buying low and selling high.

Here’s a predictable sports metaphor that brings into question the morality of short selling.

Every sports fan knows there are teams that far-too-many of us love to hate (i.e. New England Patriots, New York Yankees, Los Angeles Todgers …). We will happily pop open a cold one and sit in front of the Hi-Def and root against these teams and many others. We want them to lose, and lose big.

Having acknowledged this indisputable fact of life, will we spend our hard-earned money to travel to their respective stadia or watch them on our home team fields, courts, ice rinks solely to indulge in an exercise of Schadenfreude, delighting in their misery when they lose? You are rooting against them and not necessarily for your team.

Don’t we have better things to do with our money and time than negative rooting?

Moving from metaphor to reality, should the cunning few take their discretionary investment dollars and place a trade – a short sell – with the intent of cashing-out based not upon a publicly traded company’s stock rising, but instead losing value for the vast majority of investors and their employees?

Before going any further, Almost DailyBrett must acknowledge that short selling is perfectly legal (it shouldn’t be), but the question remains: Is it moral? Yes, some may be wondering how morality and Wall Street work in tandem. Believe it or not, there is synergy when it comes to investing and morality.

For example, each of America’s 5,900 publicly traded companies on the NYSE or NASDAQ is legally required to practice fiduciary responsibility (don’t glaze over). Translated: Every company is obligated to do the best job possible to drive the top line (revenues) and raise the bottom line (net income or loss).

The beneficiaries of fiduciary responsibility are America’s Investor Class, the 55 percent of our nation that invests in mutual funds, bonds or stocks. When “Wall Street” is attacked, the hopes and dreams of literally millions for a comfortable retirement, their children’s college education, their donations to worthy charities, their once-in-a-lifetime vacations, are under siege as well.

The Big Short

“Stormy weather in Shortville … “— Tesla CEO Elon Musk tweet mocking short sellers

The literally millions of short trades fly directly in the face of the aspirations of middle-class and lower-upper class investors, who realize you can’t finance dreams through negligible bank interest rates and ping-ponging real estate. That’s why they turn En-masse to equities, bonds and mutual funds (e.g., IRAs and 401Ks).

For example, there are those (including the author of Almost DailyBrett) who invest in Elon Musk and Tesla. They are supporting the development of electric cars, ion lithium batteries and solar power, all intended to transport millions and provide energy – all without contributing to climate change.

And yet 31 million of Tesla’s (NASDAQ: TSLA) 163.1 million shares are sold short or about $8.46 billion in market capitalization or value that these traders are hoping will simply plunge big time to their greedy benefit.

Alas for them and hooray for the rest of us the Tesla short sellers are taking it in the shorts.

As we saw in the Oscar-nominated for Best Picture, The Big Short, there were cunning and callous short sellers who bet big time – and won – against the U.S. real estate market and thousands of underwater and underperforming mortgages.

They won, while literally hundreds of thousands lost their homes or were trapped in properties they could not afford, thus triggering the Great Recession of 2007-2008.

Almost DailyBrett believes the government regulates enough thank you very much. But should the feds (e.g., SEC, DOJ, FTC) take a long-and-hard look at short selling?

If the goal of the shorts is pure unmitigated greed, while literally hundreds of thousands suffer and see their hopes and dreams dashed, then short selling is not only wrong morally, but it should be frickin’ illegal as well.

http://www.goldmansachs.com/

http://www.biography.com/people/jon-stewart-16242282

http://www.cnbc.com/jim-cramer/

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

http://www.cc.com/video-clips/gliow5/the-daily-show-with-jon-stewart-jim-cramer-pt–3

https://www.nytimes.com/2015/12/11/movies/review-in-the-big-short-economic-collapse-for-fun-and-profit.html?_r=0

http://www.reuters.com/article/us-tesla-stocks-idUSKBN17522H

https://finance.yahoo.com/quote/TSLA/key-statistics?p=TSLA

This is an upsetting event for all of us at United. I apologize for having to re-accommodate these customers.” –PR Week’s “Communicator of the Year,” United CEO Oscar Munoz

Do you really think so, Oscar?

Last Sunday morning, United Continental Holdings, Inc., or more commonly known as United Airlines (NYSE: UAL) positioned its brand as a global airline with the tagline “The Friendly Skies” and backed by the music of George Gershwin’s “Rhapsody in Blue.”

By Sunday evening the airline’s brand was radically changed, maybe even permanently altered, by what happened on a commuter flight (United Express #3411) from Chicago’s horrible O’Hare Airport to the home of the Kentucky Derby, Louisville.

Note that horses are treated better than United’s overbooked passengers, one in particular.

Almost DailyBrett has researched and written extensively about the loss of branding control. With social media and easy-to-use and outstanding-quality smart-phone cameras and recorders, everybody is a potential reporter, even one sitting in an aisle seat on United.

Just as BP is no longer seen as an oil and gas company, but rather one that caused the massive Deepwater Horizon “spill,” United is now linked to inexplicable violence against one of its own paying customers, whose only crime was wanting to fly home to treat his patients.

The inexcusable exercise of violence and brutality against a 69-year-old Vietnamese refugee, Dr. David Dao, including losing two front teeth, sustaining a concussion, and suffering a broken nose — all because he committed the cardinal sin of refusing to leave a seat he purchased on an overbooked flight to accommodate a United employee — is now a viral social and legacy media legend.

Most likely, this horror video could also be the topic of a heavily covered jury trial (United will try to avoid this scenario at all costs by attempting to settle out of court), and possibly a congressional investigation (United probably will have to respond to a subpoena). There is very little chance United could prevail before any jury regardless of venue.

The author of Almost DailyBrett has repeatedly told students at Central Washington University that company, non-profit, agency, government, politician brands are now “traded” on social media and blogging exchanges every second of every day.

These brands can soar (e.g., Tesla and Elon Musk) on glowing reports (and company common stock usually moves in tandem). They can also plunge into binary code oblivion triggered by a game-changing incident (i.e., Chipotle and E. coli; Volkswagen and “defeat software”; Wells Fargo, phony accounts; Anthony Weiner and his tweeted wiener).

So far, United investors and employees have lost an estimated $1.5 billion in market capitalization on the New York Stock Exchange (NYSE). On the social media stock exchange, the company has lost even more as millions around the world are shocked and appalled by about 60 seconds of gratitous violence video.

In China as well as other countries in East Asia that serve as United destinations, the bloody treatment of Dr. Dao is seen as a racist act. Is United racist? The answer really doesn’t matter when the perception in the Asian community (and other ethnic communities) is that United perpetrated a racially motivated attack.

Does PR Week rescind Oscar Munoz’ “Communicator of the Year” Award just as the Heisman Trust recalled the famous statue from Reggie Bush? The call seems easy.

What’s Next For United?

“I think corporate America needs to understand that we all want to be treated in the same manner with the same respect and the same dignity that they would treat their own family members. If they do that, wouldn’t it be great? So, will there be a lawsuit? Yeah, probably.” — Attorney Thomas Demetrio

United knows as evidenced by the live coverage of today’s Chicago news conference by Dr. Dao’s lawyers on CNN, Fox News, CNBC, Fox Business and others, this story has “legs.” Just as BP found that out every day the Deepwater Horizon well was leaking, United will also realize this public relations nightmare will endure for weeks and months.

So what should United’s PR team do in the interim?

  1. The “service” company needs to dramatically alter its way of doing business. Literally thousands upon thousands are justifiably angry at United and other carriers for their well-documented and long-endured arrogance and disregard for their customers, the passengers.
  2. United needs to forever foreswear the use of violence on its aircraft except in the rare circumstances in which a passenger is a threat to themselves or others.
  3. The days of “overbooked flights” need to come to an end. If someone buys a ticket to a football game that person is entitled to that seat on the 30-yard line. If a passenger buys a ticket for a plane that passenger is entitled to seat 9C.
  4. The airlines need to enshrine this simple notion as a new policy and champion it. If they don’t, one suspects that Congress will do exactly that. Don’t try to lobby against this change. Be a part of the solution.
  5. Be nice. United, American and Delta – the so-called legacy carriers – need to shed their well-earned image of being rude, arrogant, un-empathetic and uncaring. For once an attorney is right: We all deserve respect and dignity.
  6. The lawyers will have a field day, starting with the discovery process. Sell-side analysts will downgrade the stock. Congressional committees will beat up Oscar Munoz. For United’s PR team, this is not the beginning of the end, but the end of the beginning.
  7. Time can heal. Keep in mind, United’s brand will never be the same and will literally take years to turn the corner. One suspects United will somehow move forward. A little humility and the willingness to admit wrong, to learn and become change agents on behalf of customers and not just the bottom line, may one day lead to a better tomorrow.

 

https://www.washingtonpost.com/news/on-leadership/wp/2017/04/12/united-ceo-oscar-munoz-the-rise-and-fall-of-a-communicator-of-the-year/?utm_term=.c0660d2cfa9b&wpisrc=nl_headlines&wpmm=1

https://almostdailybrett.wordpress.com/2011/07/11/loss-of-control-how-to-safeguard-reputations-and-brands-in-a-digital-world/

http://www.cnbc.com/2017/04/13/attorney-for-united-airlines-passenger-dao-says-there-will-probably-be-a-lawsuit.html

 

 

 

 

“ … The old divide between left and right is growing less important than a new one between open and closed.” – The Economist, March 4, 2017

During the Cold War, the communism vs. capitalism divide was referred to as a contest of wills between “East and West.”

Even today, we use directions to describe the dangerous world of dark-and-foreboding North Korea and the bright lights of cosmopolitan-industrial powerhouse South Korea.

For more than 100 years, there were the Democrats from the left (e.g., Franklin Delano Roosevelt) and Republicans from the right (e.g. Ronald Reagan).

Reagan just turned over in his grave.

Reagan will be forever remembered for his controversial call, “Mr. Gorbachev, tear down this (Berlin) wall.” The eternally optimistic Republican president embraced neo-liberal open markets, globalization and free enterprise.

In contrast, Reagan’s “Republican” successor Donald J. Trump wants to build a wall. He implores American governments and businesses to his brand of populism, calling for them to “buy American” and “hire American.” There is open talk of “border adjustment taxes,” a taxing concept which would be an anathema to Reagan.

Against this backdrop, guess who is coming to visit The Donald this Tuesday? Frau “Open” (Offen) Angela Merkel, the chancellor of the nearly $300-billion world’s largest account surplus, export-powerhouse Germany.

Making the proceedings even more tender and sensitive is the fact that Americans buy 107 billion Euros worth of German goods each year, while Germans purchase 57 billion of American output per annum.

Translated: Americans consume German cars (e.g., BMW, Mercedes, Audi, VW) and down German beer, while Germans favor their own automotive companies and refuse to drink “dishwater” (e.g., Anheuser Busch products).

Using old thinking, one would conclude that moderate-conservative Christian Democrat Angela Merkel would be to the left of a right-wing Republican president. Instead, we need to recalibrate how we view our divided world with Merkel serving as the neo-liberal (open) and Trump as the isolationist (closed).

Global F.U. Votes?

“Trump’s election is going to be the biggest ‘fuck you’ ever recorded in human history — and it will feel good.” – Liberal film-maker Michael Moore.

International public relations pros, journalists, pundits and campaign managers need to change their ways of thinking. Left vs. right used to be so simple – oh so simple. Those thoughts are no longer operative as a populist “Human Molotov Cocktail” took over the Republican Party and the White House and dared the party (and Wall Street too) to follow in his protectionist footsteps.

No respectable elite on the Old-World side of the pond saw Brexit coming, until it did. The Midlands overwhelming sent an F-U message to London, Brussels and Berlin. Score a major win for the “closed” crowd.

Surely, the same would not occur in the United States or so we were told our Harvard-heads pundits and pollsters? They missed the F.U. vote with the “Blue Wall” falling in Michigan, Pennsylvania and Wisconsin.

Looking forward to the next month, France will be making a similar choice between “open” Emmanuel Marcon of the En Marche! Neo-liberal, pro-trade, pro-competition, pro-immigration and pro-EU stances and “closed” Marine LePen of the National Front, who not-so-secretly wants an exit referendum on the EU and the reintroduction of the French franc.

Will France be the third industrial economy F-U vote in a little less than one year?

Undoubtedly, this undeniable trend is on the radar screen of Angela Merkel. Will she enter the White House this week from a position of strength or weakness?

Keep in mind that Almost DailyBrett and many others originally thought she was a shoe-in to be elected for her fourth term as Kanzlerin this coming September. The same thinking applied to the inevitability of Hillary Clinton becoming the first Frau President of the United States.

Merkel’s decision and subsequent pull-back to welcome (e.g., Willkommenskultur) more than 1 million Syrian refugees to Deutschland appears to be a political loser. Her re-election after 12 years in office is anything but secure now as she trails Martin Schulz of the Social Democrat Party, and the (closed) Alternative für Deutschland is gaining strength.

Could France and Germany be the latest in a string of F.U. votes? Will that mean the end of the European Union as we know it? Is this trend the end of traditional left vs. right?

Welcome to a new way of political thinking.

http://www.economist.com/news/leaders/21717814-why-french-presidential-election-will-have-consequences-far-beyond-its-borders-vote

http://www.spiegel.de/international/world/merkel-prepares-for-difficult-visit-with-donald-trump-a-1138244.html

http://www.economist.com/news/europe/21716641-not-reasons-donald-trump-thinks-it-germanys-current-account-surplus-problem

http://www.salon.com/2016/10/26/michael-moore-people-will-vote-for-donald-trump-as-a-giant-fk-you-and-hell-win/

http://www.express.co.uk/news/world/766256/Angela-Merkel-Martin-Schulz-SDP-CDU-German-election-polls

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