Did Intel Disclose Or Just Titillate

Intel (INTC) issued a schizophrenically focused press release today. They announce revenues are down sequentially 20% and 23% looking at comparable quarters. Margin estimates are coming in around 55% which is at the lower range of expectations and R&D spending is down by 200 million. But wait Intel says they are now going into their quiet period and at the same time they are reviewing their quarterly results. Conference call scheduled for Jan 15, 2009.

This whole quiet thing is always a problem and Intel wanted to have the last word before the rumours start flying. They have painted themselves into a corner because to come out just one week after this announcement with major changes is incomprehensible. So for Reg FD and other regulatory purposes was this disclosure? It becomes quite the tar baby when you think through all the ramifications.

Callaway Does Something With uPlay

Callaway (ELY) announced an acquisition of uPlay. No terms and conditions were announced. So investors are flying financially blind as to how their capital is being used. The press release says that the deal will not have a material impact on 2009 earnings. But then they continue to say:

“The acquisition of uPlay makes sense for us on several fronts, said George Fellows, President and CEO, Callaway Golf. We’ve said that we would look for acquisitions to help accelerate our growth, and the combination of uPlay with its innovative GPS platform and Callaway Golf’s technical leadership in club and ball development will do just that by creating incremental new business opportunities, while also enhancing golfers experiences on the golf course.”

But the acquisition will not have an incremental effect in 2009. Hmmm. They did conclude the press release by saying more information will be available on their upcoming conference call. Which means there is more information you need to know but we will tell you later. When does Reg FD come into play here.

Anyway the press release did not mention when the conference call is scheduled. So when I looked it up it seems to be on Jan 27, 2009 which is a full three weeks and one day away. 

The Secret Currency of Love

Interesting book launch this week called "The Secret Currency of Love" by Hilary Black. Some of the comments in the trailer knocked my head back a little. Money and emotions are the most complicated dynamic. This book seems to scratch the surface.

So if you are ranting to your wife or girlfriend (or both) about something in the stock market you might have a few things to think about. Because apparently they are thinking in ways that you probably do not understand.

I guess I just assumed most of my readers are male. Hmm Anyway here is the link: Book available this week everywhere it seems. Buy and read. Quickly

THE SECRET CURRENCY OF LOVE
The last taboo finally revealed:
http://www.youtube.com/watch?v=Cq0CVAaMcxI

Financial Skeptic on Kindle

Newstex just sent me a notice that this blog and probably others are now live on Kindle. Kindle is an amazing electronic reading device distributed by Amazon (AMZN) When you check Amazon's site the Kindle reader is sold out which I think means its hot. Here is the salient quote from Newstex

"Amazon - Kindle: Amazon's New Wireless Reading Device - Newstex is pleased to announce that Amazon has chosen Newstex's Blogs On Demand for distribution of Newstex blogs for purchase on the Kindle. We will be rolling this out over the next few months.

How do Blogs work on the Kindle? Unlike reading blogs on your PC, Kindle blogs are downloaded onto Kindle so you can read them even when you're not wirelessly connected. And unlike RSS readers which often only provide headlines, blogs on Kindle give you full text content and images."

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Apple Lacks Bench Strength

Apple (AAPL) investors are unsettled with Steve Jobs admission of medical issues. We probably do not know the full extent of the issues. Confidentiality plays a vexatious role. Also when dealing with medical issues not everything is a certainty. Just talk to any doctor and ask for a 100% guarantee for anything. You will not get it.

The real issue with Apple and Steve Jobs is his iconic status. While the C suite executives are important you should not be tied so dramatically to the health of one individual. When you create value the implicit assumption is that it will be enduring. Apples board of directors and major investors should start insisting on meaningful succession plans for all key positions.

Ezcorp Pawns Itself

EZCORP (EZPW) announced the completion of its acquisition of Value Financial Services. This on again off again deal finally closed on Dec 31, 2008. The deal has an interesting dynamic. A pawn shop has bought a pawn shop and then pawned itself to help pay for the deal. It’s all so Wall Street on a gritty level.

Value was privately held but had some market position. EZCORP had an excellent balance sheet and respectable cash flow and has now leveraged itself.

EZCORP says the deal will be mildly accretive in 2009. They did have to use a $40 million term loan. No details on the term loan were disclosed. There is also a $80 million operating loan. No terms were disclosed. So that’s $120 million of pawn and we do not know what the pawn ticket says.

Navistar Continues to Strip Tease

Navistar (NAV) came out with some interesting information on Dec 30 at about 8pm ET. The headline reads Navistar Posts Near Record Fiscal 2008 Earnings Excluding Asset Impairment Charges, Despite Weak Truck Market. When you continue reading the press release you come across this tidbit of info.

“Navistar reported a loss for the current fourth quarter of $343 million, or $4.81 per diluted share, compared with a loss of $103 million, or $1.46 per diluted share in the fourth quarter a year ago.”

Just the day before Christmas they let us know that the inventory was incorrect and fortunately they had made an additional $50 million. Now the results are being released and the Q4 loss is 350% larger than last year. But hey wait until the conference call on Jan 5 to hear all the details. Seems to me we are experiencing the drip method of disclosure. One painful drop of acid at a time.

My prediction for the conference call will be that the explanations will have substantially more information than the press releases that they snuck out during the holidays. Where or when does disclosure governance kick in on this one?

Wall Street Art Work

Something different to start 2009. After all it’s supposed to be the year of change. Right Obama! A savvy friend from the artistic community after listening to what I was trying to do with the financial skeptic blog pointed out an artist called Geoffrey Ramsay who also has a blog called year of magical painting. He has developed an interest in unique portraits of high rolling corporate types. If I understand this correctly he allows the citizens to enhance the art work with their own comments. You can just imagine what some of the comments are. Anyway go to his blog at http://www.yearofmagicalpainting.blogspot.com/ and then click my current portfolio.