7.26.2018

Revisiting FANG in the wake of ‘Chief Buzzkill’





Facebook’s ‘Chief Buzzkill’ Strikes Again

Excerpt:

Finance chiefs are often the bearers of bad news during earnings calls, with share prices reaping the consequences. That’s why many -- particularly in the tech industry -- shy away from giving precise outlook figures.

Dave Wehner learned that lesson the hard way. Shares of Facebook Inc. fell as much as 20% this morning following the CFO’s sober forecast for revenue growth this year after the market closed Wednesday. The stock is down 19% in recent trading. Mr. Wehner also said new advertising formats were less profitable than expected.

With investors used to getting record-breaking results quarter after quarter, finance chiefs at technology companies, especially at heavyweights like Facebook, Alphabet Inc. or Amazon.com Inc., must be adept at managing the company’s message and expectations when the news is grim. A sharp, reactionary swing in share price following a quarterly report dramatically raises the stakes for the next quarter.
Comment: Below is my missed FANG investment.



Compare with 2½ years ago


So yeah it was a missed opportunity! Of the FANG stocks ... 1.) I have none: 2.) AMZN, GOOG, and NFLX have value to me.

Related: Other news ... today!

Posted by Jim Peet at 7/26/2018 03:00:00 PM 0 comments

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Papa John's and the Poison Pill





Papa John’s Adopts ‘Poison Pill’ Defense Against John Schnatter

Excerpt:

Papa John’s is preparing for a fight against John Schnatter, the pizza chain’s founder and former chairman, by adopting a so-called poison pill defense to protect itself against a hostile takeover attempt.

The plan, announced late Sunday by the company’s board, is meant to prevent any shareholder from amassing a controlling interest in Papa John’s. Mr. Schnatter, who resigned as chairman this month after a report that he had used a racial slur in a comment about black people, owns 30 percent of the company’s stock, making him its largest shareholder.

Mr. Schnatter has said since stepping down that doing so “was a mistake” and that he was pressured to leave by board members acting on “rumor and innuendo.”

The poison pill strategy — which has been used by, among others, Avis, Netflix and Sotheby’s, and in a battle between Men’s Wearhouse and Jos. A. Bank — is typically employed to fend off takeover efforts by activist investors and acquisitive rivals. It has rarely been used to preemptively rebuff a company founder, one notable exception being the poison pill that American Apparel adopted in 2014 amid an acrimonious split with its founder, Dov Charney.

.... Ms. Glaser declined to comment on the poison pill move by Papa John’s, which would take effect if Mr. Schnatter and his affiliates raised their combined stake in the company to 31 percent or if anyone were to buy 15 percent of the common stock without the board’s approval.
Don’t Eat the Poison Pill By Mistake

Excerpt:

The pill “will prohibit Schnatter from acquiring more than 31 percent of the stock,” I wrote, but I was cheating. That was a shorthand description. That’s not how poison pills actually work. It’s not like you go to the stock exchange and put in an order for 100 shares and it bounces back with an error message saying “that would put you over 31 percent.”

Instead, the way poison pills work is … just sort of unbelievable. Basically, if anyone triggers the pill — if they go over 10 or 20 or 31 percent of the stock or whatever the trigger is — then every other shareholder of the company gets offered the right to buy a ton of the company’s stock at a big discount. If people exercise these rights — and they should because they offer the chance to buy stock at a big discount—then many more shares are issued and the triggering shareholder is massively diluted.

It just sort of seems like this shouldn’t be allowed, that companies shouldn’t be able to give massively discounted shares to all of their shareholders except the one they don’t like. But it is allowed; there is a famous case. I used to work at Wachtell, Lipton, Rosen & Katz, the law firm that invented the poison pill, and the pill document — here is Papa John’s, if you want to read one — is sort of scripture at that firm. I remember having this distinct sense that we had collectively gotten away with something, that we were all living off of some deep black magic that the firm’s elders had done back in the ’80s, that somewhere in a basement closet the notion of shareholder ownership was being tortured as the price for our success.

A big rights issue is a big corporate event, and exercising the rights requires cash, and if this happened a lot you could imagine an industry springing up around it. There’d be poison-pill arbitrageurs who’d buy poison-pill rights to get the new shares, and prime brokers would finance the purchase price, and it’d be a whole thing. But it isn’t, because poison pills are never triggered. The point of a poison pill is not to do this stuff; doing it would be super annoying and complicated. The point of the poison pill is that it convincingly threatens an acquirer with massive dilution, so potential acquirers are deterred from triggering poison pills. And it works.

Modern pills have a simpler alternative to the rights-exercise stuff, by the way, which is that the company can just give each shareholder (other than the triggering shareholder) one extra share of common stock for each share they already own. (See section 24 of the Papa John’s pill, if you’re curious.) This also dilutes the triggering shareholder — everyone else has twice as many shares, and the triggering shareholder doesn’t — but doesn’t require the rest of the shareholders to come up with money or, um, figure out what is going on. It’s just a 2-for-1 stock split, but a selective stock split that excludes the triggering shareholder. Again it just seems like that shouldn’t be a thing, but once you’re on board with the general idea of a poison pill, why not?
The SEC filing



The Onion


Comment: Not often seen ... not easily understood ... rarely triggered. As an aside Papa Murphy's is my pizza place. I don't own PZZA and don't intend to invest in it.




Doubt it:

Posted by Jim Peet at 7/26/2018 08:12:00 AM 0 comments

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7.19.2018

Before you vote for Keith Ellison for Minnesota Attorney General ...



Rep. Keith Ellison draws fire for tweet about Antifa handbook 


Excerpt:

Minnesota Rep. Keith Ellison is drawing criticism for calling attention to a book that critics say condones a left-leaning group using violence in clashes with white supremacists. Ellison, the deputy chairman of the Democratic National Committee, posted a photo on Twitter Wednesday of himself posing with the book "Antifa: The Anti-Fascist Handbook." The book calls violence during counter-protests "a small though vital sliver of anti-fascist activity."
Comment: His campaign website


Posted by Jim Peet at 7/19/2018 01:42:00 PM 1 comments

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7.16.2018

The DEC RP06 disk drive


My largest computer sale of all time was dozens of RP06s to Thrift Drug in Pittsburgh. It was the last week of December in 1977 (I think December 30th.) The total sale was $ 1,800,000. That's about $ 7M in 2018 dollars. It was a very big deal. Corporate had me fax the contract to them b/c it was quarter end. Because our office did not have a fax, Kathee and I drove to downtown Pittsburgh to a speciality center that did business faxes. Then I took her out to an expensive dinner. I made my quota for the year and the year (DEC's fiscal year) was only half over. In my hand (received today) is a 2 terabyte WD drive (about $ 100 with shipping and tax).

Posted by Jim Peet at 7/16/2018 01:55:00 PM 0 comments

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7.15.2018

Surprise win!


I didn't think I would win this! Note even material. Often times I get out-smarted in the end game with material like this. 

Posted by Jim Peet at 7/15/2018 08:32:00 PM 0 comments

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Jim Salomon obituary


Jim Salomon obituary
Jim Salomon, 84, of The Villages, FL, passed away on Sunday, July 8th at his residence. Born on December 27, 1933 in Pittsburgh, PA to Erwin K. and Frida (Huonker) Salomon, Jim was a child of God and a faithful servant of Christ. He was a retired electrical designer and engineer for Westinghouse Electric Corp. in Pittsburgh and a U.S. Army veteran. Before moving to The Villages in 1993, he was a season ticket holder for over 20 years with the best team in football, the Pittsburgh Steelers. Most importantly, Jim was known to be a “soul winner,” someone who loved to reach out to people and spread the Word of God. Survivors include his beloved wife, Mildred Fewless Salomon; his son, Jeffrey (Ginny) Salomon; his daughters: Janice (Bruce) Snyder and Jane (Dean) Cathcart; 7 grandchildren and 3 great grandchildren; a younger brother and sister: Ronald (Barbara) Salomon and Sandra Salomon; along with his stepsons: Robert (Carol) Fewless, Terry (Amy) Fewless, Michael (Laurie) Fewless, Timothy (Angela) Fewless; his stepdaughters: Nancy (Jon) Fitzgerald and Kathy (John) Tytla; along with 18 step grandchildren, 23 great step grandchildren and 1 great great step granddaughter. Jim was preceded in death by his parents, his first wife of 46 years, Hermine (Miller) Salomon (2002), an older brother and sister, Milton Salomon and Elsie Collum.

A Celebration of Life Memorial Service will be held on Tuesday, July 31, 2018 at 11:00 am at Tri County Baptist Church, 38405 Rolling Acres Road, Lady Lake, FL. In lieu of flowers, donations may be made in Jim’s honor to Cornerstone Hospice @ cshospice.org. or Tri County Baptist Church, 38405 Rolling Acres Road, Lady Lake FL 32159.

Acts 16:31 – “Believe on the Lord Jesus Christ and thou shalt be saved,” was Jim’s life verse. He would ask each of you reading this “If you died today, are you certain you would go to Heaven?”
Comment: A friend. He loved the Lord. And he loved the Steelers!



Posted by Jim Peet at 7/15/2018 09:16:00 AM 0 comments

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7.14.2018

My Great-Grandfather Charles Bingham Peet


Served in Union Army


Back of card


Front of card


Tombstone


Tombstone of Great Grandmother

Ohio. Roster Commission., . (18861895). Official roster of the soldiers of the State of Ohio in the War of the Rebellion, 1861-1866. Akron: Werner Co..




Update on 9/25. Pics from 9/23/19 visit





Posted by Jim Peet at 7/14/2018 04:39:00 PM 0 comments

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7.11.2018

Cornered and Checkmate


I got up at 5am this morning. Started this game at 9:00 pm ... so tired I am barely awake. Somehow won by perfect play and the strategy I often employ .. protect the left flank ... open the right flank!


Posted by Jim Peet at 7/11/2018 09:10:00 PM 0 comments

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White outplayed Black with Pawns




  • Protected the left flank
  • Opened the right flank
  • Leveraged the White King
  • Defeated Black Pawn promotion (was able to promote to Queen which was immediately captured by White Rook!)
  • Promoted White Pawn 
  • The rest was history 

Posted by Jim Peet at 7/11/2018 06:51:00 AM 0 comments

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7.09.2018

Dr Pepper Snapple Group closes its run







Dr Pepper & Keurig Merger Nears Completion, Forms Board
Excerpt:

Dr Pepper Snapple Group, Inc. DPS and Keurig Green Mountain have announced the board of directors of the new company - Keurig Dr Pepper - after the shareholders of Dr Pepper unanimously voted in favor of the merger deal on Jun 29. With other necessary regulatory approvals for the deal already obtained in the United States and Canada, the companies are on track to close the transaction on Jul 9. Moreover, on Jul 10, Keurig Dr Pepper will start trading on the New York Stock Exchange, under the new ticker symbol - "KDP".

This merger announcement dates back to January 2018 when the leading coffee maker, Keurig Green Mountain, Inc., agreed to buy Dr Pepper Snapple. Under the terms of the deal, the company's shareholders will receive a special cash dividend of $103.75 per share, making the deal worth $18.7 billion. Dr Pepper Snapple's shareholders will retain 13% ownership of the combined entity while Keurig shareholders will own 87%.

Previously, it was revealed that European investment fund JAB Holding will make a $9-billion equity investment to finance the transaction. Also, Mondelez International, Inc. MDLZ , JAB Holding's partner in Keurig, was about to have 13-14% stake in the merged entity.

The combined company, Keurig Dr Pepper, will have $11 billion in combined pro forma revenues and will realize $600 million in synergies on an annualized basis by 2021. This will make it the seventh-largest company in the U.S. food and beverage sector, and the third-largest non-alcoholic beverage company. The company's portfolio will contain a number of iconic brands, including Dr Pepper, 7UP, Snapple, A&W, Mott's, Canada Dry and Clamato, among others. The merged entity is likely to gain from Dr Pepper Snapple's distribution network while Keurig's online presence will boost sales through digital platforms like Amazon.com, Inc.  In fact, analysts are of opinion that the combined company can pose tough competition to beverage giants, including The Coca-Cola Company .
Comment: Purchased a lot back in March 2012 for $ 38.91. The merger just completed
If I understand this correctly, tomorrow I will have 100 shares of KDP which will trade at approx. $ 19.91. New website
8:05am Central update
Good enough for Forrest!



Posted by Jim Peet at 7/09/2018 06:27:00 PM 0 comments

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7.08.2018

What En L'An 2000 (In the Year 2000) got right



En L'An 2000

Excerpt:

En L'An 2000 (In the Year 2000, also loosely translated as France in the 21st Century) is a French image series depicting scientific advances imagined as achieved by the year 2000. At least 87 were produced, by artists including Jean-Marc Côté. They were printed in 1899, 1900, 1901 and 1910, first on paper as cigar box inserts, and later as picture postcards, but never distributed. The only known set of the postcards was acquired by writer Isaac Asimov, who featured them in his nonfiction work Futuredays: A Nineteenth Century Vision of the Year 2000 (Henry Holt and Company, 1986).
Comment: See Google search and this and this and this
More: Looks like the above image is from 1930

Posted by Jim Peet at 7/08/2018 08:57:00 AM 0 comments

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7.07.2018

Pawn to Pawn combat ... White prevails


Posted by Jim Peet at 7/07/2018 06:57:00 PM 0 comments

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7.04.2018

"Zombie Safe Sex" organizer jailed - the state of free speech in Canada




Canadian court allows ‘hate crime’ charge against Christian activist
Excerpt:

Christian activist Bill Whatcott is out on bail and out of a job after turning himself in to Calgary police June 22 to face a criminal charge in Toronto of wilfully promoting hatred against “the gay community.”

Toronto Police Service issued a Canada-wide warrant for Whatcott in May for the indictable hate crime offence after a two-year investigation into complaints made against Whatcott in 2016.

Whatcott and several others marched in the 2016 Toronto Pride Parade dressed in skin-tight green bodysuits with face masks as members of the Gay Zombies Cannabis Consumers Association.

They distributed 3,000 pamphlets on “Zombie Safe Sex” that included a flyer warning of the physical and spiritual dangers of homosexual activity.

The pamphlet featured graphic images of anal warts, a corpse described as an “AIDS fatality,” and another image of “genital warts in the mouth” set next to a headshot of Prime Minister Justin Trudeau. 

It excoriated the “homosexual activism” of Trudeau, former Liberal Defence Minister Bill Graham, and former Ontario Premier Kathleen Wynne.

Whatcott’s criminal prosecution for promoting hatred is highly unusual, and required the authorization of Ontario’s former Liberal Attorney General Yasir Naqvi, according to Daily Xtra.

Naqvi’s deputy attorney general Paul Boniferro green-lighted the criminal charge in April, Crown counsel Jennifer Epstein told LifeSiteNews.

In 2013, the Supreme Court deemed two of Whatcott’s flyers hate literature when it ruled on his appeal of a Saskatchewan human rights tribunal judgment against him.

However, Whatcott’s criminal charge is significantly more serious.

“If I get convicted of this, it’s going to be a very low bar of what anyone can say,” he told LifeSiteNews. “Because they’re going to use it, they’re going to use it as a precedent for what the next Christian can say.”
Comment: Free speech is not protected in Canada

Posted by Jim Peet at 7/04/2018 04:30:00 PM 0 comments

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7.03.2018

Update on my cancer


Test results today from the biochemical marker = non-detectable!



Posted by Jim Peet at 7/03/2018 05:22:00 PM 1 comments

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7.02.2018

The New Face of the Democratic Party - Alexandria Ocasio-Cortez




Alexandria Ocasio-Cortez's Platform




Not just me saying it ...











































Posted by Jim Peet at 7/02/2018 03:40:00 PM 1 comments

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7.01.2018

Flossmoor's thicket of restrictions



Get That Truck Out: A Town’s Pickup Ban Runs Into Blowback

Excerpt:

Five years ago, Luke Lambert and his wife bought a red brick house on a tree-lined street in this Chicago suburb. Two years later, he bought a blue 1966 Ford F-100 pickup with plans to fix it up. Then he got a phone call from the police: Pickups can’t park in Flossmoor’s residential areas unless garaged or being unloaded. His garage wasn’t big enough, so he parked at his wife’s grandmother’s about 10 miles away. Now he is leading a crusade to overturn Flossmoor’s 43-year restriction on America’s most popular vehicle. “They think of the town as elite, but it’s really elitist,” says Mr. Lambert, 34, a digital-media-company manager. His pickup-driving father, ticketed last year for parking at Mr. Lambert’s house, borrows a sedan to visit from Wisconsin.

Commercial-truck restrictions aren’t uncommon in the U.S. Flossmoor not only restricts commercial pickups but all of them. After Coral Gables, Fla., voted in 2012 to drop a similar ordinance, Flossmoor officials say they believe their community became the last in America with such a restriction.

As Chicagoland expanded, Flossmoor fought to preserve its aesthetics in 1975 by imposing a parking ban on pickups, which at the time in America were largely utilitarian beasts of burden.

The ordinance forbade parking in residential areas. In 1989 it was loosened to allow residents to garage passenger pickups. The vehicles are allowed in nonresidential areas such as in front of businesses or churches.

The ordinance has been challenged but never overturned, even as the pickup evolved elsewhere into a higher-status vehicle.

“I would say its aesthetics based,” says Flossmoor Mayor Paul Braun. “I can respect both sides, both opinions.”

The ban is part of the town’s thicket of restrictions. Aboveground pools are prohibited. Dog leashes must not exceed 8 feet. Grass can be no more than 5 inches high. Garbage cans can’t be visible from the street 24 hours after pickup.

Those barriers, say residents such as Mr. Tiernan, help maintain community standards. “If you don’t have rules someone is going to abuse things,” he says.

That worldview sets Flossmoor’s vehicular population apart. The Ford F-150 has been America’s best-selling vehicle for years. But among Flossmoor’s 8,983 vehicles there are more Mercedes (432) and Lincolns (132) than trucks (42) according to the Illinois secretary of state.

When pickups are parked outside, police hear about it, often through anonymous tips, says Flossmoor Police Chief Michael Pulec. “Residents will call in a pickup truck in their neighbor’s driveway.”

The city issued 127 truck tickets last year at $50 a pop. Chief Pulec says most are written during the midnight shift when scofflaw parking is easily spotted. 

Pickup-driving residents make do, parking out of town or, in a pinch, in the Flossmoor Community Church lot. “Sometimes nonmembers park trucks there too if they have a guest from out of town or something,” says Jenny Sykes, the director of church operations. “It’s pretty casual; we don’t patrol it or anything.”

The backlash goes way back. Jim Minx, a retired Illinois state trooper, says he got 53 tickets for his Mazda B2000 pickup after moving to Flossmoor in 1986. Instead of paying, he took the village to court and fought the case for 13 years to the state supreme court, which refused to hear it.
Comment: A little too much government!

Posted by Jim Peet at 7/01/2018 03:37:00 PM 1 comments

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White mates


Note how black bishop was deprived of power by being locked behind his pawns (sounds like I'm making some kind of ecclesiastical statement, but I'm not!). This represents a common win strategy for me: clear a lane on one flank, protect the other flank, while holding the middle.

Posted by Jim Peet at 7/01/2018 12:57:00 PM 0 comments

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6.29.2018

Another crushing defeat for Black


Note: Black has more "material": 2 Rooks & Queen & 7 Pawns. White (me): Queen and Knight / equal on Pawns. Had I not checkmated on this final move, Black would have cleaned me out!

Posted by Jim Peet at 6/29/2018 04:39:00 PM 0 comments

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