Wikipedia defines death spiral financing as a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall. While generalization is fraught with risk, typically companies require multiple financings to […]
Read MoreWith the unemployment rate at approximately 4%, the lowest since 2000, economists have been surprised by the slow growth in paychecks. Historically, when that few people are unemployed, companies have had to pay up to attract workers. Clearly, anecdotal evidence and government reports suggest that the U.S. is in a tight job market, yet pay […]
Read MoreFollowing a recent visit to India, I came away with several pertinent climate and energy observations. Traffic in major cities, such as Delhi and Mumbai, is very difficult. Air quality is bad. In the morning, visibility from my hotel room window was generally less than one mile. While some improvement developed during the day, the […]
Read MoreDuring periods of above average market volatility, or sharp moves in either direction, investors and advisors are likely to wonder if some action might be appropriate or expected. This natural reaction may be exacerbated by an endless stream of punditry and suggested strategies from CNBC and other media outlets. In most cases, the most appropriate […]
Read MoreAccording to Wikipedia, misdirection is a form of deception in which the attention of an audience is focused on one thing in order to distract its attention from another. While misdirection has generally been associated with magicians, CEOs have not been immune to the opportunity. Investors should be careful in reacting to corporate announcements that […]
Read MoreIt is now clear that congressional budget compromises are an excuse to spend more on everyone’s wish list rather than to make hard decisions regarding appropriate priorities. Running up the deficit is not a recent phenomenon. Adding to the national debt has been the reality of both political parties for a long time, as no […]
Read More