Friday, September 01, 2006

Bristol-Myers Guidance

Bristol-Myers (NYSE:BMY)has reduced guidance because of the impact of Apotex competition. With a tip of the hat to financial reality the timing of the reduced guidance is suspicious. Given legal positioning BMY may now claim huge losses in any further legal action. Why did they not choose to identify these potential damages in the past and reflect those scenarios in previous guidance. Most investors may be able to analyze an operating company. But how do you analyze a negative legal perspective that develops over time. Only management could identify the risk and quantify it for investors. Many have been flying blind.

Thursday, August 31, 2006

Coca Cola's Dilemma

Coca Cola (NYSE:KO) has a dilemma. Former General Counsel W Thomas Haines is facing serious legal action by Coke reports Fulton County Daily Report. In 2001 the man was reorganized out of his job. He takes up a position as Executive Director of the bottlers association. The bottlers are now suing Coke over the right to distribute Powerade to Walmart. Coke wants to sell direct for the obvious profit reasons. When Mr. Haines was reorganized out of Coke he received the blessing of Coke in writing to take up the post. Now Coke is preparing to sue and is claiming bad ethics. While all is fair in love and war could not Coke see this kind of problem?

Wednesday, August 30, 2006

Google EBay No Metrics Big Sizzle

Google (Nasdaq: GOOG) and eBay (Nasdaq: EBAY) announce a new joint model regarding text and call to click advertising. No financial information was provided. The announcement is all sizzle and management is not responsible for any performance milestones. How much capital and time will be devoted by both partners? If you believe in guidance you have none. If you believe in independent analysis you have no base metrics. What are the exit clauses when one or both decide that the deal is not working out? But they really want you to drink their cool-aid.

Tuesday, August 29, 2006

Stem Cell Royalties

Stemcells (Nasdaq:STEM) announced a licensing deal with StemCells Therapeutics (TSX-V:SSS). The press release does not contain any financial details but refers to commercially reasonable royalties. If as and when intellectual property is developed who will benefit? How does an investor know where to place his money?

Monday, August 28, 2006

Weekend Follies Aug 26

The following stocks release information at odd-ball hours over the weekend when investors are typically not looking at their screens. Basically they are sneaking news out and hoping to call it disclosure. The culprits are: Sinopec (NYSE:SNP), Magna (NYSE:MGA), Capital Alliance ((AMEX:CAA), MB Financial (Nasdaq:MBFI).