Tag Archive: CNBC


“When are we going to realize in this country that our wealth is work. We are workers. And by selling this idea, ‘Hey man, I’ll teach you how to be rich.’ How is that different than an infomerical?” — Jon Stewart to CNBC’s Mad Money host and former Goldman Sachs hedge fund manager, Jim Cramer

No truer words were ever spoken.

During the course of his 2009  infamous viral dressing down of CNBC’s “Mad Money” Jim Cramer, Comedy Central’s Jon Stewart took direct aim at the notion of get-rich-quick, particularly in times of an economic meltdown.

Some acquaintances of Almost DailyBrett have inquired and even critiqued your author’s daily devotion to CNBC, the repeated clicks on Charles Schwab’s retirement IRA platform, and the checking of the value of the Eugene, Oregon residence on far-less-than-perfect, Zillow.

Yours truly is a dedicated capitalist, devoted to maintaining and growing wealth under the banner of Buy Low Sell High.

Buying low and selling high generates … profits. Yes, profits. Sorry Bernie and Elizabeth.

Some vehemently argue that nothing-is-guaranteed Wall Street is more or less, gambling.

Almost DailyBrett disagrees with this conclusion, but clearly recognizes that gamblers are energized and engaged. No one plays poker and puts their chips on the roulette table and cavalierly accepts the verdict. They play to win the game.

As Herm Edwards said: “You play to win the game. Hello? You play to win the game.”

And more times than naught, gamblers lose. The staggering accumulated wealth and gaudy palaces along the Las Vegas Strip are monuments to the … losers.

Don’t investors want to win too? There are no guarantees on Wall Street. Invested money is placed at risk. Doesn’t that make Wall Street the greatest casino of them all?

Achieving the spread between buying at a lower price and eventually selling at a higher price is more … much more … than simply investing in a 401k or IRA and forgetting about it. ‘Ahh … just let the pension fund chiefs or the mutual fund managers worry about it.’ Don’t worry.

Ladies and gentlemen, we are talking about your nest egg. Growing, caring and nurturing your tomorrow is a business. In effect, it is the ultimate business.

You want to ensure that you live a long and happy life, and that you expire before your money runs out.

The Wall Street crash of 2007-2010 is still fresh for most of us. Ten years later, we are enjoying the fruits of the longest bull market in American history with a record low, full-employment Department of Labor unemployment rate of 3.5 percent.

Time to put up our feet? Hell, no.

Manage Rather Than Be Managed

“Stewart had no special Wall Street knowledge, as he was the first to admit. What he had was a nose for a scam, and an uncanny ability to articulate what the rest of us were feeling.” — New York Times columnist, Joe Nocera

Recognizing that Jon Stewart is a comedian, not a stock market analyst or technician, he is nonetheless still right: “Our wealth is work.”

Part of the task before us is to understand completely a very simple question: How does a company makes money?

Please allow Almost DailyBrett to speak ex-cathedra: If you do not understand how a publicly traded company makes mula (e.g., McDonald’s makes hamburgers and feeds 1 percent of the planet each day), then you are gambling on a stock, not investing.

Remember posing this question to my classes about Bitcoin.

Some students volunteered that Bitcoin is a crypto-currency … whatever that means. “It’s been going up” (and down). Currencies are associated with countries (i.e., greenback, USA; Euro, EU; Pound Sterling, UK). What country backs Bitcoin?

Nada.

Therefore in your author’s portfolio, there is no place for Bitcoin or any other Ponzi Scheme.

Stewart publicly undressed Cramer because the former believed the latter’s network (e.g., CNBC) was not doing enough to protect retail investors, particularly those who were experiencing the daily assault on their portfolios between 2007-2010.

Most of us wish to forget that time, and yet we took the steps to manage our accounts and protect our nest eggs. We chose to manage instead of being managed.

Maintaining and building wealth requires us all to work, to stay alert, and have a healthy batting average when it comes to making our financial decisions.

Stay alert. Stay engaged. Stay the course.

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

http://money.com/money/3982267/jon-stewart-5-best-money-moments/

https://almostdailybrett.wordpress.com/2019/09/15/how-blue-cross-saved-my-bacon/

Are free dinners the same as free lunches?

Almost DailyBrett is simply amazed by the sheer volume of invitations received every day since the onset of his retirement.

There are annoying robocalls, carnivorous telemarketers, “personal” letters, informational packets, not to mention a slew of digital and broadcast ads.

Dinner for two at the nicest places in town … free of charge.

New “friends” wanting to lend a helping hand in managing your author’s investments, providing a swell place to take vacations year-after-year, distributing retirement savings or taking over residential equity and kicking-back crumbs month-after-month.

Why does one need a middle-man for your own retirement nest egg?

There is a thriving industry to provide Almost DailyBrett and everyone else with a spiffy “vacation club,” spending quality time annually with family (assumes one wants to spend more time with family).

“You deserve it.” How do you know?

Conversely, there is reciprocal industry to extract (for a fee) pigeons from foolish time-share contracts.

Too much time with the family? Too good to be true? Didn’t read the contract? It must suck to be you. Only we can help.

Buy a time-share, get out of a time-share … either way the Land Sharks win and you lose.

Somebody is making money and sad to say, it’s the salesmen/saleswomen.

These apex predators all have the gift of gab with wonderful smiles and they are all well dressed, hiding their dorsal fins.

They have a deal … such as deal … for you.

Their basic proven strategy: Get your derriere into a comfy seat with a nice drink (or two or three … ) and soon it will be time for the contracts … time share, annuity, reverse mortgage … all waiting to be signed.

Just affix your signature right here on the bottom line … muther sucker.

“Die And Go To Hell”

“We don’t sell annuities. I would die and go to hell before I would sell an annuity.” — Ken Fisher of Fisher Investments’ 60-second advertisement

Can’t forget the image of Leonard DiCaprio giving the middle finger to a vacillating on-the-phone investor in Martin Scorsese’s over-the-top plethora of gratuitous F-bombs, drugs and skin: The Wolf of Wall Street.

What value to society is created by time-shares, annuities, reverse mortgage sales dudes and sales dudettes?

Do they really care about their clients? 

As we grow more mature, there seems to be a mindset that retirees in their sixties … let alone older … are losing it upstairs. They are ripe for exploitation.

It seems that new friends are popping up here, there and everywhere. They are always ready to help. Trust us.

Almost DailyBrett detests the hard sell. The harder the push, the greater the personal resistance.

Your author gravitates to proven friends. A prime example is Charles Schwab, which has managed my retail investment portfolio for a generation.

Is publicly traded Charles Schwab (NYSE: SCHW) intrinsically interested in driving the top and bottom lines, consistent with its fiduciary responsibility to investors? Absolutely.

Schwab’s core business … providing a low-cost trading platform (e.g., $4.95 for equity, mutual fund and bond transactions) … may be a tad boring and predictable, but the client is provided with real shareholder value.

Didn’t CNBC’s Mad Money with Jim Cramer write a book entitled, “Get Rich, Carefully?”

Does anyone think he or she is going to get rich carefully with a time share, annuity or reverse mortgage?

Didn’t think so.

https://almostdailybrett.wordpress.com/2017/05/16/hasta-la-vista-to-timeshares-annuities-and-reverse-mortgages/

https://almostdailybrett.wordpress.com/2018/07/14/has-it-come-to-this-tom-selleck-and-henry-winkler/

https://almostdailybrett.wordpress.com/2013/12/26/506-f-bombs/

https://www.consumeraffairs.com/news/timeshare-salesman-says-he-lied-for-a-living-062615.html

https://www.cnbc.com/mad-money/

 

“Not only had @realDonaldTrump become a mass-media juggernaut, but Twitter had for the first time become a primary outlet for the views of a major American politician. With Trump’s election, the transformation was complete: The social network had become the new public square.” – Nicholas Carr, POLITICO

Without a shred of doubt, nothing on this planet drives the media crazier than Twitter use by one Donald John Trump.

Within the friendly confines of 280 characters coupled with the always-on powerful bully pulpit of the presidency, Trump can set the agenda and be a part of any breaking story regardless of subject.

Wait.

Under Agenda Setting Theory, the big masthead media (e.g., New York Times, Washington Post) supposedly establish the agenda about what grateful everyday Americans should be thinking about.

As they say in political circles the big mastheads have been, preempted.

The very dragon they are attempting to slay, is spewing counter-punching fire right back at them any time, all the time.

“Beware of the overnight tweet.” — CNBC NYSE reporter Bob Pisani

Most of the Trump Tweets are … provocative (outrageous?) and thus are newsworthy. The ensuing conversation is about Trump, always about Trump.

Does the sun ever set on Donald Trump’s Twitter account?

With the Müller Report destined to be a non-factor by the end of this year – let alone next year – the media/entertainment elites in Manhattan, within the confines of the Beltway and Hollywood are facing the prospect of a re-elected Twittering Trump.

Columbia Journalism Review worries about whether journalists are correcting all of Trump’s tweets and statements.

Will they eventually interrupt Trump during the State of Union, the same way MSNBC’s Brian Williams cut off Senator Lindsey Graham?

When it comes to always telling the truth, nobody does it better than Brian Williams.

Will the media at some point — kicking and screaming — be forced to stop pretending the no-further indictments/actions Müller Report is the death knell of a president they detest (putting it mildly)?

Even though they torched Joe Biden’s last days as a non-candidate, will they line up behind him if he somehow captures the Democratic nomination?

Whoever emerges as the Demo nominee, will be their standard bearer.

The Never-Ending, Always-On News Cycle

Campaigns are not happy places.

Familiarity always breeds more than contempt.

Sleep is a precious commodity, and there is never enough to go around.

There was a time when there was only one news cycle per day.

As Almost DailyBrett commented two years ago, White House “death watch” is not what it used to be. Translated: Reporters stationed in the White House briefing room while the president sleeps were Journalism’s answer to graveyard shift. No more.

Trump’s nocturnal tweets (does he ever sleep?) have changed the game. Just ask Wall Street.

Every campaign in the 2020 cycle will have to compete effectively in a digital-is-eternal atmosphere with a minimum of sleep. With digital social media – particularly Twitter – every campaign and every media outlet is an always-on, 24-7-365 wire service.

Trump tweeted (fill in the blank). Respond within the fewest nanoseconds possible.

Biden tweeted (fill in the blank). Democratic rivals answer within the fewest nanoseconds possible.

Bernie tweeted what? Man or Woman the Twitter barricades!

Almost DailyBrett remembers the days when wise pundits (oxymoron?) lamented about how policy debates were being reduced to 30-second bites.

How about 280-character tweets? Used to be 140 characters.

With more than 20+ would be Democratic nominees, how many pithy responses will immediately jump from their keyboards. More to the point how many mistakes, which can’t be recalled, will emerge from these Twitter accounts?

“Fatigue makes cowards of us all.” – Vince Lombardi

Even though early Baby Boomer Trump is 72-years-young, he seems to have the energy and stamina to keep the Twitter stream coming, even accelerating and intensifying the flow. There are no signs of fatigue.

Will the next president (or the same president) be the one who best utilizes the Twitter characters? Should social media be the penultimate factor in determining who will be the leader of the free world?

Let the Twitter debate commence.

https://www.politico.com/magazine/story/2018/01/26/donald-trump-twitter-addiction-216530

https://www.cjr.org/covering_trump/twitter-media-trump.php

https://almostdailybrett.wordpress.com/2017/10/16/death-watch-aint-what-it-used-to-be/

“(The intent of the Tax Wall Street Act is to) drive leeches that are front running the market out of business.” – Rep. Peter DeFazio (D-Oregon) on CNBC

Is the Eugene, Oregon-based author of Almost DailyBrett, a lecherous leech?

Your author builds a career. Your author works all of his life. Your author pays his fair share of taxes. Your author chooses the time (2018) and place for his retirement (Eugene).

Sounds good, but …

My congressman, Mr. DeFazio, wants to double tax everyone’s retirement with a 0.1 percent tax on every stock or mutual fund trade we will ever make as long-term investors, conceivably until it’s time to meet our respective makers.

Ostensibly, DeFazio’s tax targets high-frequency/high-velocity investors, many disguised as algorithms. The only problem is his sweeping tax also applies to millions of real middle-class people … including retail investors residing in Oregon’s 4th Congressional District.

All they want to do is invest their already taxed discretionary income to fund their retirement, pay for their children’s education (e.g., University of Oregon) and maybe to pursue their dreams. Alas, Rep. DeFazio has introduced the “Tax Wall Street Act of 2019” with its punitive stock and mutual fund trade tax.

Mr. Congressman, my family is not Wall Street in Manhattan. We are East of Willamette Street in Eugene.

The honorable congressman thinks he is punishing Wall Street, when he instead is taking dead aim at America’s investor class or the 52 percent of Americans (approximately 170 million), who invest in individual stocks or mutual funds.

Many of these mutual fund investment trades are made by pension managers and by individual employee managed 401Ks at work (e.g., public employees, including school teachers). Almost DailyBrett maintains a humble retail account with Charles Schwab. Sorry, no Goldman Sachs for me.

Why are you (DeFazio) sticking a Wall Street tax on all investors who live in your district, and any other investor in every congressional district across the fruited plain?

DeFazio’s Dithering Performance on CNBC

CNBC’s Kelly Evans asked you point blank on “The Exchange” last week why you didn’t “target” high-velocity algorithmic day traders instead of proposing a sweeping tax, which applies to every middle-class investor in the country.

You dithered, Congressman DeFazio. You know, you did.

When Evans inquired about the use of the projected $777 billion in additional revenues, you suggested restoring some of the expanding deficit triggered by tax reform. Congressman DeFazio didn’t know where and how the money will be spent. He only wanted to sock-it to Wall Street and with it, middle-class investors.

Maybe, you should Occupy Wall Street? How did that movement work out?

Fortunately, there are enough adults in the House of Representatives and certainly in the U.S. Senate to ensure this bill goes absolutely nowhere.

Having made this point, the coast is not clear. The mindset of my congressman and his partner in crime, Sen. Brian Schatz (D-Hawaii) and without a doubt many others in positions of immense power, indicates an antipathy to all publicly traded companies (none of which are headquartered in Oregon’s 4th Congressional District).

Every issue large and small seemingly requires the same remedy: a new tax.

Congressman DeFazio, you need to understand that middle-class retirees in your district have already been taxed on their nest eggs. Under your plan, each-and-every-one of your investing constituents will pay an additional tax just for the right to continue to invest their hard-earned money on their futures.

You know you are wrong, but you will piously insist you are right … err correct.

Almost DailyBrett has never been a “high-velocity” trader and never will be.

Just hoping to keep up my velocity for years to come.

https://www.cnbc.com/video/2019/03/08/rep-peter-defazio-on-the-tax-wall-street-act.html

https://www.nationalreview.com/2019/03/wall-street-tax-act-financial-illiteracy-in-congress/

https://www.foxbusiness.com/politics/its-premature-to-start-freaking-out-over-the-wall-street-tax-act-liz-ann-sonders

http://investsnips.com/publicly-traded-companies-in-oregon/

 

 

 

 

Tired of screaming talking heads?

Are you just done … with polemics?

Want real news that is more than 24-7-365 bashing of Donald Trump?

How about real-time information, which is 100 percent relevant to at least 54 percent of Americans who constitute the nation’s “investor class”?

Digging deeper one finds that 73 percent of those with bachelor’s degrees and above, and 83 percent of master’s degrees and above, own publicly traded company shares or stock-based mutual funds … many in employer 401K plans or IRAs.

Buy Low, Sell High!

With all of these stats in mind, Almost DailyBrett welcomes you to the best network on television: CNBC.

What ever happened to critics who proclaimed that around-the-clock Wall Street market coverage would never work?

They are the same naysayers who proclaimed that 24/7/365 sports wouldn’t fly when ESPN was launched in 1979.

How did either of these forecasts work out?

Just as ESPN’s proven business model fostered a plethora of imitators (i.e., Fox Sports, CBS Sports, NBC Sports Network), the same is true with CNBC, born in 1989.

Two years later, CNBC’s parent acquired Financial New Network. There was obviously moola to be made from those who care about global markets, particularly their NYSE and NASDAQ investments.

Never-shy-about-about-exploiting-an-opportunity, Rupert Murdoch, debuted CNBC’s major competitor Fox Business in 2007, including raiding CNBC for proven on-air talent (i.e., Maria “The Money Honey” Bartiromo, Neil Cavuto, Liz Claman …).

Fox Business now leads in the Nielsen Ratings for cable business networks, just as Fox News is on top for cable news channels.

Almost DailyBrett believes that competition makes everyone better, and contends that CNBC can take full advantage of the opportunity that comes from adversity.

Can’t Quantify PR?

Working for the Semiconductor Industry Association (SIA) in the mid-1990s, your author as director of communications was interviewed each month on the chip industry’s book-to-bill ratio … or what is the relationship between the booked orders and the already billed orders.

One always wanted the former to be higher than the latter.

As a director of Corporate Public Relations for LSI Logic, Almost DailyBrett booked our CEO Wilf Corrigan on CNBC whenever we had good news to report, provided the markets were open and trading.

One particular time our stock was trading at $86 per share when the interview began. Three-or-more minutes later (an eternity on television), LSI Logic shares had jumped to $89 per share or x-millions more in market capitalization (number of shares x stock price)

And who says, you cannot quantify effective public relations?

The direction of a company’s shares can head to the north, but to the south as well, thus resulting in the term for a stock being a volatile, “Dow Joneser.”

Recently saw a sell-side analyst explaining on CNBC why he downgraded Nike from a buy to a hold with a lower sales target … the stock sold off during the interview. That is the awesome power of an analyst being interviewed on a financial news network.

Almost DailyBrett contends from years as a loyal viewer that CNBC covers real news: What’s happening with global markets, consumer spending, newest gadgets and gizmos, trade wars, Brexit, Federal Reserve rate hikes or cuts/quantitative tightening or quantitative easing ….

Is CNBC perfect? Far from it. Yours truly rolls his eyes whenever yet another report focuses on East Coast dino-tech legends General Electric (GE) or Itty Bitty Machines (IBM). The former is Sears in drag, and the latter is just a few steps further back on the same bridge to nowhere.

Having said that, there is a healthy consistency that comes from Bob Pisani from the floor of the NYSE and Bertha Coombs from the NASDAQ.

Who can avoid smiling when Jim Cramer is throwing bulls and bears on “Mad Money?” David Faber (a.k.a. “The Brain) is always solid with his reporting.

Carl Quintanilla, Morgan Brennan and John Fortt are especially credible with the coverage of technology to start the day. Wilfred Frost and Sara Eisen put a capper on the trading day by hosting “Closing Bell” with Michael Santoli providing analysis of the just competed trading day.

If you want wall-to-wall about what is wrong with the relationship between Donald and Nancy, there are networks, which can provide you with all the gory details on a 24/7/365 basis. Go for it.

And if you can’t wait for another update on the no talent Kardashian family, CNBC is not your cup of tea … and never will be. Thank the good Lord.

https://news.gallup.com/poll/211052/stock-ownership-down-among-older-higher-income.aspx

https://www.marketwatch.com/story/the-amount-of-americans-not-saving-for-retirement-is-even-worse-than-you-thought-2017-02-21

https://www.nytimes.com/2018/02/08/business/economy/stocks-economy.html

https://www.cnbc.com/

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

https://www.forbes.com/sites/markjoyella/2018/10/02/lou-dobbs-maria-bartiromo-lead-fox-business-to-big-ratings-win/#4e449fd924bf

https://almostdailybrett.wordpress.com/2018/12/20/how-fox-news-keeps-on-winning-the-ratings-war/

 

 

 

 

 

 

 

The national Twitter Bull-in-a-China-shop champion may not be the one you suspect.

Would you allow Elon Musk to baby-sit your retirement nest egg?

REUTERS/Rashid Umar Abbasi

Consider the following:

In the last three months, Tesla common shares (NASDAQ: TSLA) are down $69.59 or 19.74 percent.

Tesla confirmed today the Department of Justice (DOJ) is launching a criminal probe into les affaires at Tesla.

Earlier, the Securities Exchange Commission (SEC) announced its own civil investigation following Tesla founder Elon Musk’s August 7 tweet, proclaiming “funding secured” for taking Tesla private. Is Musk guilty of selective disclosure of material information (e.g., “Funding secured) in violation of SEC Reg FD (Fair Disclosure)?

There was also the inexplicable video of Musk smoking dope on television.

Why Elon, why?

Musk charged not once but twice that one of the heroes, saving the Thailand boys’ soccer team from a flooded cave, is a “Pedo guy.”

Nomura Securities downgraded TSLA from “buy” to “neutral,” reducing the company’s price target from $400 to $300, concluding that Tesla shares are “no longer investable.”

“Notwithstanding improving fundamentals, we believe that Tesla is in need of better leadership, an about face, and are moving to the sidelines until we see what happens with management. “ – Nomura Securities analyst Romit Shah

Does Elon Need His Own Mad Dog Mattis?

The best-and-brightest public relations counselors in the world can do absolutely nothing with Elon, if and until he is willing to ponder sage advice for even a nanosecond.

Tesla co-founder and CEO Elon Musk takes a drag from a cigarette laced with
marijuana in this screenshot from the Joe Rogan Experience podcast on
Thursday, Sept. 6, 2018.

Some have suggested shaking up the Tesla Board of Directors to include strong-willed  independent hombres and mujeres willing to practice tough love with Elon (e.g., no public smoking marijuana for whatever reason).

Elon ‘Musk’s brother and board member, Kimbal, is not a candidate for his job. Did you see his CNBC interview this week from the floor of the venerable NYSE wearing a cowboy hat?

Why Kimbal, why?

Besides trying to run both publicly traded Tesla (EVs/solar) and privately held SpaceX (rockets) at the same time and thus needing more sleep, maybe the biggest issue is way too many sycophants kissing Elon’s derriere for way too long.

Remember the gushing CBS 60 Minutes Scott Pelley interview of Elon back in 2014? Musk was hailed at the time as the second coming of … Steve Jobs including  Almost DailyBrett. Your author repeatedly bought and sold Tesla shares for a nice profit, except the last time, selling for a modest loss.

The CNBC pundits were asking out loud circa 2014 whether Tesla was 1.) An electric vehicle company, 2.) an energy company or 3.) Elon Musk’s company?

The issue now is what would happen if a stronger, independent Board of Directors took the helm at Tesla? Would they have the cojones to fire Elon Musk? Would that stunning action be the 21st Century equivalent of John Sculley firing Steve Jobs at Apple? How did that move play out?

Most of all, what would happen to Tesla’s stock? The shorts have already gone crazy; they presumably would have a field day.

Maybe what Elon needs is his own version of a chief operating officer Mad Dog Mattis or some other chain-of-command George S. Patton type to knock off the nonsense?

Until there is some sense of consistent operating discipline (see Tim Cook’s management of Apple following the 2011 passing of Steve Jobs), the shorts will continue to bet against Tesla and its common shares.

Anybody want to “short” Apple? Didn’t think so.

Most of all, Elon Musk should be precluded from even going near Twitter. These 280 characters can lead to a heap of trouble, including twin probes by the DOJ and the SEC.

Audi today unveiled its $75,000 luxury EV SUV. There is considerable competition because electric cars are not going away.

Static photo,
Colour: electric green

Tesla still maintains considerable advantages: Market leadership, pure-play, first mover, visionary company.

Even with its present cash burn and convertible notes coming due next March, Tesla can more than survive and continue to drive technology leadership.

All Tesla needs is for a Mad Dog to put a discipline leash on one, Elon Musk.

https://www.forbes.com/sites/jimcollins/2018/09/05/elon-musks-increasingly-erratic-behavior-comes-at-a-price-for-tesla-shareholders/#1058c7323944

https://www.mercurynews.com/2018/09/11/elon-musks-erratic-behavior-continues-to-rattle-wall-street/

https://www.cnbc.com/2018/09/18/tesla-stock-drops-after-company-reportedly-to-face-us-criminal-probe-over-musk-statements.html

https://www.nytimes.com/2018/08/13/business/dealbook/tesla-elon-musk-saudi-arabia.html

https://almostdailybrett.wordpress.com/2014/04/02/only-in-america/

https://almostdailybrett.wordpress.com/2014/07/18/donate-to-united-way-or-invest-in-tesla/

https://www.cnbc.com/video/2018/09/17/kimbal-musk-says-his-brother-elon-is-doing-great.html

 

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/

 

 

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