Tag Archive: Fortune


“After taking your PR classes for the past three years, I feel confident to go out into the world of PR communications professionals. I will miss your enthusiasm in the classroom every day, and writing your two-page executive memos! I can’t thank you enough.” – Graduating Central Washington University Public Relations Student

“I have learned more from your classes than all the other classes I’ve taken combined, and that’s not just including lessons having to do with school. You taught me to take pride in my work, and to put in the effort to do my best. I honestly do not know if I would be where I am today, or have the future that I see myself having if it weren’t for you.” – Another Graduating Central Washington University Public Relations Student

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Trust me when I say not all student reviews are so positive.

When they are, you treasure each and every one.

Most of all you don’t take them for granted because there is always another opinion.

What we call the “Rule of One.” There is always at least one student, who quite frankly hates your guts and even loathes the very ground you walk on. Sigh.

And then there is the student, who can quote back what you said.

In this world of texting, Snapchatting, mobile devices and old-fashioned laptops, breaking through and instilling even ein bisschen wisdom seems almost miraculous.

A professor can prepare. She or he can spend hours researching. And devote even more time to tinkering with PowerPoints and video. Finally, the time comes to deliver the lecture, coax questions and then ask two key rhetorical questions:

  1. Was anyone listening?
  2. Does anyone care what you have to say?

One of my students provided me with a thank you card with valuable “Kevin Quotes” including a smiley face.graduation2016

Here they are with an Almost DailyBrett commentary under each one. They are offered in the exact order chosen by the student writer:

  • “Buy on rumor; sell on news” Almost DailyBrett: This ubiquitous expression in the late 1990s directly led to the Securities Exchange Commission (SEC) promulgating Reg. FD (Fair Disclosure). Corporate chieftains could no longer “whisper” meaningful tidbits to favored financial analysts (e.g., Goldman Sachs, JP Morgan, Fidelity, Morgan Stanley) allowing their clients to buy on the whispered rumor and then sell on the actual news.
  • “Your Brand Is In Play 24/7/365” Almost DailyBrett: Donald Trump in particular should pay close attention to this axiom. With instantaneous global communication through a few key strokes, digital communication can advance a personal or corporate with lightning speed, and destroy it just as quick.
  • “Digital Is Eternal” Almost DailyBrett: The complement to your brand being in play 24/7/365 is that all digital communications are permanent, enduring and can be resurrected by hiring managers, plaintiff attorneys and others who can hurt your reputation and/or career.justinesacco
  • “The Long and Short Program” Almost DailyBrett: The Olympics figure skating competition metaphor pertains to 10-K annual report letters and 10-Q quarterly earnings reports respectively. The former has more flexibility, while the latter must give precedence to GAAP (Generally Accepted Accounting Principles) and include revenues, gross margin percentage, net income, EPS, cash-on-hand and dividends (if applicable).
  • “Don’t Be a Google Glasshole” Almost DailyBrett: Guess, I really did say that …
  • “Buy Low; Sell High” Almost DailyBrett. Every one of our corporate communications/investor relations classes began with this chant. One must understand profit margins.
  • “Do Not Buy Stock in Enron” Almost DailyBrett: Don’t buy a stock just because it is going up. You need to understand a company’s raison d’ etat before you commit funds. There is a real difference between investing and gambling. Those who gambled on Enron lost everything.
  • “How Does a Company Make Money?” Almost DailyBrett: Bethany McLean of Fortune asked this basic question to Jeffrey Skilling, now imprisoned former Enron president. The Harvard-trained chief executive needed an accountant to answer this most basic of questions. McLean smelled a rat.
  • “Stocks Are Forward-Looking Indicators” Almost DailyBrett: As Wall Street wild man Jim Cramer of CNBC Mad Money fame always states” “I don’t care about a stock’s past, only its future.”edwards1
  • “Tell the Truth, Tell It All, Tell It Fast. Move On” Almost DailyBrett: These 11 words are the crux of effective crisis communications. Disclosure is inevitable. You can manage or be managed. Former presidential candidate John Edwards is the poster child for failing to follow this advice.
  • “Corporate America Needs Better PR” Almost DailyBrett: Amen

Appreciate the nice words. Even more: Thanks for listening and learning.

https://www.snapchat.com/

https://www.sec.gov/answers/regfd.htm

https://almostdailybrett.wordpress.com/2015/04/08/the-internet-where-fools-go-to-feel-important/

https://almostdailybrett.wordpress.com/2015/05/25/the-mother-of-all-weak-arguments/

 

 

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“Apple is not above the laws of the United States, nor should anyone or any company be above the laws. To have a court warrant granted, and Apple say they are still not going to cooperate is really wrong.” – California Senator Dianne Feinstein

It (Apple iPhone) is a deeply personal device. It is an extension of ourselves.” — Apple CEO Tim Cook

Apple desperately needs an attitude adjustment.

It’s past time to cooperate, Tim Cook.

How about right NOW?timcook

And yet the Fortune 500 CEO walked off stage yesterday to the lyrics of Tom Petty’s “I Won’t Back Down.”

The terrorists who struck Brussels this morning, killing at least 30 and injuring 100 more, won’t back down either.

As an Apple shareholder (the stock is up this morning) and most importantly a strong proponent for safety, the author of Almost DailyBrett is joining the bi-partisan chorus calling for the company to fully comply with federal magistrate court order and unlock the secrets contained in a terrorist’s stolen cell phone.

What is particularly galling is the arrogant notion that a device is an extension of ourselves, and defines who we are.

Really?

Your author lived for almost six decades and managed to get by just fine without an Apple iPhone.

Public Relations Disaster

Did we have to get to this point?

Why did the relationship between Apple with the strongest brand in the world and the legendary Federal Bureau of Investigation (FBI) have to degenerate into a public battle of wills with privacy being claimed on one side and safety being championed on the other?

The issue comes down to a County of San Bernardino owned iPhone 5 being used by a terrorist couple to kill 14 people and injure 22 more last December. What are the secrets contained in the encrypted smart phone used by Syed Rizwan Farook?terrorists

How can the FBI and by extension the people of this nation unlock this cell phone without permanently erasing the data contained in this device (10 unsuccessful tries triggers the elimination of all content)?

Why couldn’t über-secret Apple quietly and confidentially, particularly in the face of a legitimate court warrant,  write the code allowing the FBI to unlock this particular phone?

Couldn’t Apple have complied on a sub-rosa basis and keep those who think Edward Snowden is a swell guy happy at the same time? Why the public spectacle on CBS’ 60 Minutes and elsewhere that grows more intense and intransigent on a daily basis?

Just this week, the Department of Justice announced it may have a fix that allows the FBI to hack into the phone without inadvertently erasing the data. Is the FBI bluffing, trying to force Apple’s hand?

And will the spectre being played out on TV and mobile device screens from Brussels this morning, prompt a little soul-searching at Apple?

According to former Fortune technology columnist (and Apple apologist), David Kirkpatrick, the ISIS-coordinated attacks on the EU’s capital airport and central rail station, will have zero impact on the board room stance at Apple.

Alas, he is probably correct. A quick glance at the company’s news releases this morning offers plenty of details about the Apple iPhone SE and a new and improved iPad.

If you are expecting reflection, contemplation and refreshing change from Apple’s defiant attitude as a result of today’s deadly terrorist attacks, you are sadly mistaken.

The needless Apple public relations disaster continues.

http://www.sfgate.com/politics/article/Feinstein-says-Apple-is-wrong-to-refuse-to-6843414.php

http://www.cnn.com/videos/tv/2016/02/17/senator-dianne-feinstein-intelligence-cmte-lead-intv.cnn

http://finance.yahoo.com/news/brussels-attacks-weigh-on-wall-street–apple–fbi-court-face-off-canceled–amazon-s-cable-play-120427384.html#

http://www.bloomberg.com/news/videos/2016-03-22/how-will-terror-attacks-impact-apple-vs-fbi

https://www.youtube.com/watch?v=nUTXb-ga1fo

http://www.cbsnews.com/news/fbi-may-have-found-way-to-unlock-san-bernardino-shooters-iphone/

http://www.latimes.com/local/lanow/la-me-ln-san-bernardino-shooting-live-updates-htmlstory.html

http://www.apple.com/pr/

 

 

 

 

 

 

 

“Bulls make money, bears make money, pigs get slaughtered.” – CNBC Mad Money host Jim Cramercramerpigs

Which decision requires more mental gymnastics?

When to buy?

When to sell?

The author of Almost DailyBrett humbly opines that when to sell is the tougher call.

Why?

There are two kinds of remorse: ‘Darn it the stock kept going up after I sold’; and the worse one, ‘I could have sold when the stock was up, but I was a pig … and oh fiddlesticks, now I am selling when the stock is down.’

Yep, there are a lot of potential could-of, would-of, should-of when it comes to selling.

So what should you do in the view of this humble retail investor (read: Charles Schwab account)?

Don’t Fall in Love

“…Sometimes the most obvious question really is the question. In Enron’s case: How do you make money? – Bethany McLean, Fortune Magazine

Preparing to teach Corporate Public Relations/Investor Relations to Central Washington University seniors and a few juniors starting this coming Wednesday, yours truly will pose the same simple question that Fortune’s McLean posed to Enron’s Jeffrey Skilling: “How do you (Enron) make money?”

Communicators need to have elevator pitches at their ready when asked this very same straightforward question about their own employer. The same is true for investors: How does a company make money? If the answer is clear; you like the company; you understand the business strategy; you have done your homework including consulting with your financial advisor, then it may be time to purchase shares of the company stock.bullandbear

This particular company’s stock is now part of your diversified portfolio, which in turn represents a portion of your retirement savings, a child’s college education, that dream vacation etc.

All is good, but when does it make sense to sell?

Buy and hold is a sure loser. Why? At some point, stocks will stop growing. Your invested company certainly will change, and not necessarily for the better. Circumstances may shift and a wave of caca may hit a company or an industry.

Remember the Internet bubble two decades ago? It burst.

Remember the housing bubble a decade ago. It burst.

Don’t fall in love with your securities. Follow your instinct and your plan. When it is time to pull the trigger and unload the stock, then sell the shares.

Have a Plan

“I love the company. I hate the stock.” – Jim Cramer on Tesla (NASDAQ: TSLA)

Okay, it’s time to confess: I fell in love with the Elon Musk Ion-Lithium Battery/Electric Car story at Tesla. Yes, I bought the stock and road it up and down (pardon the pun) and eventually got tired of the downward roller coaster.muskcar

Before I weighed selling, I considered at what average price point did I buy the stock and how low would it have to go before I would sell the stock? It hit that point, and it was time to sell.

Maybe at some future time, it will be low enough to once again purchase the stock, but only when one is convinced the company has a realistic plan for long-term profitability.

The same is true when selling a stock that is going up. Social media stock LinkedIn (NYSE: LNKD) recorded a blow-out quarter and the stock exceeded my prearranged sell price point. As Joseph Kennedy reportedly said: “Never apologize when taking a profit.”

And we should never worry about paying taxes on our profits; profits are taxable.

The point here is to follow your game plan and sell when it’s time. That’s a good thing, really.

What are some other signs that it is time to sell a stock?

  • The Music Stopped: Once upon a time, Intel (e.g., microprocessors), Microsoft (e.g., software operating systems) and Cisco (e.g., Internet routers and switches) were literally rocking and rolling. We couldn’t get enough of these stocks until … the music stopped. The PC is yesterday’s news. The 1990s came and went. It became time to sell and move on.
  • Commoditization: Just like Intel’s microprocessors became a commodity to serve as the brains of social, mobile and cloud, the same is true for all other semiconductors and those that build semiconductor manufacturing equipment and electronic design automation (EDA) software. Intel’s rumored takeover of Altera, similar to Avago’s absorption of LSI Corporation, are more signs of industry consolidation. If you have not sold already, it’s past time.
  • High Volatility: Sometimes an investor can benefit from a highly volatile stock. A perfect example is Salesforce.com (NYSE: CRM). Lost track of how many times, yours truly has bought, sold, bought, sold, bought … this stock. As long as the trend line is consistently up, it’s okay to let go of the shares now and then, only to become reacquainted at a later date.
  • New Management: Tim Cook is proving that there is life at Apple following the ultimate demise of Steve Jobs, but that is the exception not the rule. Companies change. Business plans shift. Circumstances change. Markets explode or implode. Almost DailyBrett has always followed the mantra that if the old boss or new boss is a bosshole, it’s time to pass on the stock or sell the stock. Translated: Stay away from Larry Ellison and Oracle (NASDAQ: ORCL)
  • No Balance Between Fiduciary and Corporate Social Responsibility: The best run publicly traded companies do NOT see “doing well” and “doing good” as being mutually exclusive. Publicly traded companies with their brands under a digital 21st. Century microscope must appreciate their respective brands are trading in the cloud 24/7/365. Worshipping exclusively at the altar of fiduciary responsibility will no longer cut it. If so, it’s time to sell.
  • Caca Happens: Planes land at the wrong airports (e.g., Southwest). Companies name shoes (e.g., Umbro) after the cyanide gas used in Nazi concentration camps. The CEO falls dead in the backseat of a car (e.g., Texas Instruments). Oil wells explode and gush on global video for three months (e.g., BP). Guano hits the fan. This is precisely the reason not to fall in love with any stock.

Sometimes, it is time to say goodbye.

Breaking up is hard to do.

http://www.thestreet.com/story/10292084/1/bulls-bears-make-money-pigs-get-slaughtered.html

http://en.wikipedia.org/wiki/Joseph_P._Kennedy,_Sr.

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

https://almostdailybrett.wordpress.com/2013/10/06/how-does-a-company-make-money-2/

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

http://finance.yahoo.com/video/cramers-stop-trading-tesla-motors-135400997.html

https://almostdailybrett.wordpress.com/2014/01/02/farewell-lsi-logic/

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

 

 

 

 

 

 

“Sometimes the most obvious question is the question. In Enron’s case: How do you make money?” — Fortune Magazine Reporter Bethany McLean.

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The simple answer was Enron wasn’t making money; the company was losing money hand-over-fist.

Enron was hiding these massive losses from regulators, investors, suppliers, partners and most of all, its own massively investing-in-Enron-stock employees.

Still investors poured billions into Enron simply because the stock was going up big time. The majority had no idea about how Enron made money in its energy, bandwidth and weather (go figure) trading schemes and didn’t seem to care because the stock was skyrocketing. As Martha would say: “It (was) a good thing.” Yep, a good thing until the house of cards came tumbling down in a 2001 bankruptcy filing, crashing and burning.

What was that about how does a company makes money?

As we head into the next round of hysteria as yet a third social media provider goes IPO (Initial Public Offering), this one, Twitter, under the ticker, TWTR, one needs to contemplate Bethany McLean’s most obvious of all questions.

twitterjackdorsey

How does Twitter make money?

How does LinkedIn make money?

How does Facebook make money?

How does J.C. Penne’ make money? Hint: It doesn’t.

This simple question needs to be posed to and answered by all publicly traded companies, whether they play in the new economy or the old economy.

The need to quickly, credibility and confidently answer this question, preferably in a brief elevator pitch, solidifies the need for well-trained and highly skilled corporate public relations, investor relations, crisis communications, brand and reputation management practitioners.

Teaching upper-division public relations courses, I would flash images of corporate logos up on the screen and ask students how Company A or Company B makes money.

In our quick media world — whether by conventional or digital means — the millennial digital native generation, more than any other that preceded it, has been bombarded incessantly on all sides by brands.

After initial hesitations, the students were quickly and enthusiastically recalling what the brand means in term of how a company makes money, and even “positioning” companies in their respective market spaces (e.g., BMW vs. VW: Nordstrom vs. Macy’s; Southwest vs. United). Starbucks and McDonald’s both sell upscale coffee. They now both offer drive-through windows. They are the same. Right? Wrong.

As mentioned before in Almost DailyBrett, LinkedIn and Facebook are both social media outlets. To Wall Street they couldn’t be more different.

LinkedIn debuted at $45 in 2011 and now trades at $245.13.linkedin_logo_11

Facebook went public at $38 in 2012 and now trades at $51.01.

zuckerberg

LinkedIn has been able to easily answer the how it makes money question (e.g., monetizes social media) by pointing to “connections,” premium services, advertising and the fact that LinkedIn is the choice for recruiters, job hunters, network builders and those seeking business leads.

Facebook is finally starting to gain traction in the market after its disastrous NASDAQ IPO. The company has been plagued by how do “friends” correlate with the legal tender?

Will 140-character per tweet Twitter be the next LinkedIn, the next Facebook or just maybe the first Twitter in the eyes of Wall Street investors?

A CNBC report this week pointed to Twitter’s relationship with the hard-to-get National Football League and CBS in which video supplied by both will be available for tweets. Wall Street may very well see a ka-ching correlation with this deal.

The deal and others, plus the recently announced Twitter S-1 (e.g., company prospectus) may have a direct bearing on what will be the pricing and Wall Street response to the much-anticipated IPO.

As more companies pursue the IPO route, minus the ones that opt to rebuild in privacy (e.g., Dell), that means even more opportunities for skilled-and-trained corporate public relations, investor relations, crisis communications, brand-and-management protection pros.

Conservatively, there are more than 5,100 publicly traded companies on the two major exchanges, the NYSE Euronext and NASDAQ. There are thousands more on overseas exchange, such as Japan’s Nikkei, Hong Kong’s Hang Sang, Britain’s “Footsie” or FTSE, France’s CAC-40 and Germany’s DAX.

Each of these companies, most definitely those in America, has reporting requirements on an annualized and quarterly basis. The Securities Exchange Commission (SEC) mandates 10-Q quarterly earnings reports; 10-K annual reports to shareholders; 8-K unscheduled “material” information disclosure announcements; S-4 additional share purchases, an annual meeting with shareholders, and of course, an S-1 filing of a privately held company prospectus prior to an IPO.

All of these filings require on-target prose, delivered conventionally and digitally, employing text, audio and video. Who are these message builders? Who will train them? And where can they be found?

As long as a publicly traded company is in business, it must report. It must communicate. It has absolutely no choice.

Quite clearly, the demand for these highly skilled corporate PR and investor relations practitioners outstrips the supply. Maybe that’s why they are compensated at a PR segment high average of $117,233 annually.

Sounds like an upwards-to-the-right market for qualitative-and-quantitative PR/IR types.

Full-Disclosure Note: The editor of Almost DailyBrett at various times owned shares of both LinkedIn and Facebook, only to subsequently sell the stocks. He fully anticipates as a mere retail investor being a late arrival to the upcoming Twitter IPO, if only to follow TWTR on a daily basis…Thank God he never bought into Enron.

http://www.linkedin.com/today/post/article/20131003191330-270738-with-twitter-s-ipo-5-key-things-you-need-to-understand-about-the-social-ad-revolution

http://www.forbes.com/sites/tomiogeron/2013/10/03/twitter-reveals-long-awaited-ipo-plans-253m-revenue-in-first-half-of-2013/

http://dealbook.nytimes.com/2013/10/03/twitter-discloses-its-i-p-o-plans/?_r=0

“Fear of criminal prosecution trumps any fear of public humiliation.” – Mark Palmer, former Enron managing director of Corporate Communications

“The longer you indulge in the practice of maintaining a cosmetic shell, the harder it is to recover when the shell eventually cracks.” — Len Brooks, University of Toronto

“Thanks to the Enron implosion and the subsequent rash of accounting and corporate-governance scandals, the credibility of any corporation is no longer assumed. It must be earned.” – Matthew Boyle, Fortune Magazine

palmer

Growing up, I repeatedly followed the mantra that winners never quit, and quitters never win.

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

These two adages seem to be in direct conflict with each other, which brings me to the question that I posed to my students this week: If you were Mark Palmer, the former Enron managing director of Corporate Communications, what would you have done?

Would you quit?

Would you try to stop the sinning?

Would you become a whistle-blower?

Would you continue to drink your own bath water?

The answers to these questions and many more are not easy, considering that the staggering tales of criminal intent of the Smartest Guys in the Room story did not become clear until it was too late…way too late

Securing Palmer’s six-figure job as the head of PR for Fortune’s Magazine’s Most Innovative Company — the darling of Wall Street’s financiers, analysts and investors — would have been universally seen as a coup.

Chairman Kenneth Lay, President Jeffrey Skilling and CFO Andrew Fastow were regarded as business rock stars. The company could do no wrong as the stock price continued to rise even after the Internet bubble burst.

Business Week, Fortune, Forbes, Wall Street Journal and other influential business pubs couldn’t say enough good things about the Holy Trinity, and Enron. Life was presumably good for Palmer and his team…until the nightmare unfolded.

As we all know a decade later, it was all a lie. For the longest time, the Enron PR team didn’t know it was telling a lie.

In the documentary, The Smartest Guys in the Room (a.k.a. Lay, Skilling, Fastow), Enron Energy Services public relations director Mark Eberts recalled repeatedly hearing internal rumbles that the company was not doing well. And then…magically every quarter just like clockwork the company always exceeded its quarterly projections…and the stock continued to rise.

When something is too good to be true, isn’t that usually the case?

The first shot across the bow came in the form of a call from Fortune reporter Bethany McLean in 2001, who merely asked how the company made its money. Sounds like a softball question, but it wasn’t for Enron. Skilling told McLean that he wasn’t an accountant. Why does one need an advanced accounting degree to answer the most simple of business strategy questions?

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The subsequent story wondering whether Enron (NYSE: ENE) was overvalued started the downward pressure on the stock. That would not be enough to cause an experienced PR team to panic.

Enron

However, when Skilling suddenly resigned on August 14, 2001 for “personal reasons” the alarm bells started going off. Did he want to spend more time with his neglected family?

These warning signals intensified when the following evening the PR team was waiting unusually long, until 2 am for management to produce the income statement, the balance sheet and the cash-flow statement that normally accompanies a SEC-required quarterly earnings release.

Enron’s Karen Denne remembered the scene all-too-well: “I remember at the time there were sections in the press release that didn’t make sense, that I had questions about,” she said.

When she asked the executives to provide more information, she was told that everything was fine and there was nothing to worry about. Ultimately, though, the sections that concerned her were “the very quotes and phrases” that drew the attention of the reporters at the Wall Street Journal, she said.

It all came to an end on Dec. 2, 2001, when the nation’s seventh largest corporation filed for Chapter 11 bankruptcy protection with $63.4 billion of assets on its balance sheet.

Lay was sentenced to 45 years in the slam (he died of a heart attack); Skilling, 24 years (currently serving his term in Colorado) and Fastow, 10 years (He served five years).

lay

For the public relations team, their shares in Enron were worthless. Thousands of Enron employees loaded up on the stock for their retirement, and for far too many ENE was their nest egg. The team members also carry the Enron imprimatur on their resumes.

For Palmer, he appears to be doing well according to LinkedIn as he is a Brunswick Group Partner in Dallas.  For Enron PR expert Karen Denne, she is the chief communications officer for the Broad Foundation in Los Angeles.

For each and every member of the Enron public relations team, Almost DailyBrett wishes them the best in their respective careers. One must wonder if they still wake up in the middle of the night thinking about the Smartest Guys in the Room.

http://www.savvypr.com/iabcethicscolumn3.html

http://www.bizjournals.com/houston/stories/2003/06/30/newscolumn5.html?page=all

http://annenberg.usc.edu/News%20and%20Events/News/111110Enron.aspx

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