Archive

Predicting Consumer Acceptance

Does anyone really set out to make a bad movie?  No, but many new movies, if not a majority, fail to gain consumer acceptance. The ability to successfully anticipate consumer acceptance is critical to corporate success and, therefore, to investors. Perhaps one of the better comments on this problem came from Steve Jobs, who is […]

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Corporate Tax Competition

Tax and other incentive programs, primarily state and local, aimed at attracting new corporate investment have been around for a long time.  The primary motivation for states is usually related to jobs and for the corporation, lower costs.  A recent, major, proposed transaction involves efforts to induce Foxconn (a key Apple supplier) to build a new […]

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Who Pays Corporate Taxes?

A recent article in The Wall Street Journal highlighted a debate between economists as to whether workers or investors bear the greater burden of U.S. corporate taxes. This is very interesting and manages to politicize corporate taxation.  If workers bear the greatest burden, a reduction in the corporate tax might attract Democratic votes.  On the […]

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A Goldilocks Economy

According to Wikipedia, a Goldilocks economy is one that is not too hot or too cold, in other words, sustains moderate economic growth, and has low inflation, which allows market-friendly monetary policy. Where are we now? Economic growth, during the last several years, as the economy recovered from the severe decline during the “great recession”, […]

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Investing is Not a Snap

Successfully managing a company and attracting investors is not easy.  But thumbing your nose at prospective investors, by issuing shares with no shareholder rights, and then refusing to provide any guidance respecting management’s operating expectations, may not be the best approach. Under these circumstances it shouldn’t come as a big surprise if investors conclude that […]

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Shareholder Rights: The Latest Salvo

In recent blogs we have noted that there has been an increase in large investor concerns over a trend toward a reduction in shareholders’ rights. Now we have the managers of the S&P 500 taking a stand in favor of shareholders’ rights by announcing a new policy that would bar new admissions to the index […]

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