Tag Archive: Gil Amelio


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

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

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

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

Flintstones vs Jetsons

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

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

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

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

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

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

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

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

What Are Their Winning Narratives?

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

What is your company’s raison d’etre?

How does it make the legal tender?

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

What is its competitive advantage?

What is its legacy of results?

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

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

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

Investing or Gambling?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

“Yeah, just sitting back trying to recapture a little of the glory of, well time slips away and leaves you with nothing mister but boring stories of glory days.” Bruce Springsteen, Glory Days.

glorydays

Remember the PC/Internet connectivity era?

The one that ended about a decade ago?

Remember when investing in Intel (NASDAQ: INTC); Microsoft (NASDAQ: MSFT); Cisco (NASDAQ: CSCO) and Dell (NASDAQ: DELL) was close to automatic profits on Wall Street?

Of course, you wanted to invest in these stocks and so did everyone else…but over time the world changed: Pentium processors became a commodity, just like all other semiconductors.

Microsoft operating system announcements became less-anticipated and the results less than stellar…most of all they were being used for ubiquitous PCs.

Cisco makes switches and routers. They work. The Internet works. Thank you very much…and just this week the company laid off 6,500 workers.

And Dell? Well, Dell produced a great model for inventory…How about big-time results?

If you are engaged in public relations, marketing, employee communications and social media for these four companies, you are probably singing Bruce Springsteen’s “Glory Days,” if you are singing anything at all.

So what is the connection between music and technology public relations?

Two days ago CNBC after-market anchors were hyperventilating about another blow-out quarter for Apple (NASDAQ: AAPL), they really had nothing negative that they could say about the company as the stock reached $400 a share for the first time. Reportedly, the company sold every iPad that it made.

And then one of the talking heads asked the rhetorical question: “What happens when the music stops?”

For companies such as Apple, search engine Google (NASDAQ: GOOG), social media Facebook, cloud computing Salesforce.com (NYSE: CRM) and social media LinkedIn (NYSE: LNKD), it is downright heresy to suggest that the music will stop someday…but based upon history it will because in virtually all cases it has to.

Ten years ago, Apple was trading at $9.07 per share. Today, Apple is listed at $387.90. Anybody remember Gil Amelio? Hint, he was the guy running the show before the resurrection of Steve Jobs. Remember all the hoopla about Blackberry’s and Research in Motion (NASDAQ: RIMM)? The music stopped.

Ten years ago, Google didn’t exist. All the search discussion focused on Yahoo (NASDAQ: YHOO)…but the music stopped for Yahoo as Google went public in 2004 at $101 per share. Today the Google is trading at $606.78: Yahoo at $13.61. And just this month, the company introduced Google+, taking dead aim at its chief competitor, Facebook.

Facebook didn’t exist 10 years ago. Its eventual founder Mark Zuckerberg was a secondary school student attending Phillips Exeter Academy in Massachusetts. He was still a couple of years away from that famous dorm room at Harvard University.

Ten years ago, Salesforce.com was privately held and still going through the growing pains of a two-year old company. The company went public in 2004 at $15 per share. Today Salesforce.com trades on the big board at $149.16.

LinkedIn.com was the first social media company to go public, debuting two months ago at $45 per share and today trading at $101.02 per share. The biggest question is whether the shadow of Facebook will stomp on little ole LinkedIn, if Zuckerberg et al decide to take Facebook public.

The music is playing fast and furious for Apple, Google, Facebook, Salesforce.com and LinkedIn. Times are good. Reporters/editors/analysts/investors can’t get enough of Jobs, Zuckerberg, Larry Page and Sergey Brin of Google and to a lesser extent Marc Benioff of Salesforce.com and Reid Hoffman of LinkedIn.

Now imagine for comparison reasons if you were managing public relations/marketing/employee communications/social media for Intel, Microsoft, Cisco and Dell. These used to be hot jobs; not as much today…Keep in mind that a job is a job in this economy.

Ten years ago, Intel traded at $29.97; today, $22.69.

Microsoft was priced at $33.60; today $27.10.

Cisco was a $20.61 stock 10 years ago; today $16.39.

Dell traded at $27.61 a decade ago; today, $17.46.

dell

Anyone want to hear another story about Moore’s Law? How about the genius of Bill Gates and Paul Allen? Bet ya it’s a whole lot easier to get an interview with John Chambers of Cisco, but does he really want to talk about layoffs? And how many Silicon Valley-based reporters are accumulating frequent flyer miles to spend time with Michael Dell in Austin?

The point of this Almost DailyBrett exercise is to remind PR types that nothing lasts forever. If things are going great, don’t get giddy. If things are heading south, keep your wits about you. And if you have stock options in a high-flying company, start selling in increments as the stock moves upward. There are two kinds of remorse when it comes to options; the one that you sold too early…and then there is the other one.

And never lose hope. Apple was a dead company before Steve Jobs came back. But also don’t be guilty of drinking your own bath water. In most cases as Don McLean once wrote in “American Pie” there comes a day “when the music died.”

DISCLOSURE TIME: The author of Almost DailyBrett presently owns shares of Salesforce.com and LinkedIn. Decisions regarding the impartiality of my rhetorical ramblings are left to the discretion of the reader.

http://www.apple.com/pr/library/2011/07/19Apple-Reports-Third-Quarter-Results.html

http://en.wikipedia.org/wiki/Facebook

http://en.wikipedia.org/wiki/Google

http://en.wikipedia.org/wiki/Salesforce.com

http://en.wikipedia.org/wiki/Linkedin

http://en.wikipedia.org/wiki/Phillips_Exeter_Academy

http://en.wikipedia.org/wiki/Gil_Amelio

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