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Staples wants you to accessorize your binder clips

logoWalletpop (our sister site) blogger, Geoff Williams recently examined a new marketing strategy undertaken by Staples Inc. (NASDAQ: SPLS). The company wants to make you and your office "fashionable". Unfortunately, it appears that it has hired the wrong marketing firm to handle the task.

I cite as example this one whimsical little marketing blurb from Geoff's blog post. In attempting to get you to purchase fashionable binder clips, Staples has this to say about some retro look clips they have to offer: "It's the look of a bygone era with a decidedly modern flair."

Are they kidding? Does Staples think it's marketing argyle knee socks?

There's a whiff of desperation when a company completely departs from common sense in advertising. Personally, I have no use for toner cartridges which compliment my eyes. If the day ever comes when Staples begins to offer office mail carts with ground effects and spinner rims, I'd say we're just one baby doll lab coat away from seeing Staples close it's doors.

Gary Sattler is a freelance blogger. He does not knowingly have investment interest in the companies mentioned in this blog post

eBay gives Craigslist a 28.4% yank of the chain; Craigslist bites back

logoYou had to see this coming:

According to a BBC report, It appears that life at Craigslist has become even more interesting. As you may know, Craigslist has been embroiled in a legal tussle with Internet giant eBay Inc. (NASDAQ: EBAY). After purchasing a 28.4% stake in the company over a year ago, eBay now claims that Craigslist's founder Craig Newmark and its chief executive Jim Buckmaster have done things to disadvantage eBay's stake in the company. The BBC report didn't specify exactly what eBay claims Craiglist officials have done to "dilute" eBay's interests. Craigslist has now filed a counter suit against eBay, alleging illegal competition. You can get more information on eBay's original lawsuit here.

The BBC report states: "The lawsuit demands that eBay restore all shares of Craigslist owned by eBay or for the court to require eBay to divest its holdings in Craigslist." This demand is apparently supported by the premise that after acquiring its stake in Craigslist, eBay gleaned operating information from that company and then used it to launch Kijiji. Craigslist also insists that eBay, "[...] violated [Craigslist] trademarks and used misleading advertising on Google to run ads for its rival Kijiji site."

What a pretty picture of corporate raiding we have here. I think the outcome of this legal battle shall be dictated by two particular things. First, Craigslist will need to provide a first class package of documentation to support its legal counter claims. Second, it wouldn't hurt if it could find a judge who has been ripped off using eBay...

Earnings preview: Is Deere still running?

logoAnalysts believe that Deere & Co. (NYSE: DE) has kept its hand on the plow. The general analyst consensus indicates solid expectations that the company will continue to perform at or above expectations. According to AOL Money and Finance, analysts are giving indications that Deere is a buy. In defiance of today's market pull back, Deere & Co. shares have gained one half percent as of this writing.

Media sources are openly optimistic about Deere & Co., though actual commentary is sorely lacking. Barron"s did go far enough to cite that some strategic execution failures of Deere competitors have played nicely for the company. With the weakened dollar giving solid momentum to Deere's international growth focus, and Deere equipment systems showing robust independent sales, for the time being the company appears to be a relatively safe harbor for longer term investment dollars.

Year to date return on Deere is just above a negative 3%, but the 5 year return on this company is over 300%. The best earnings estimates that I can lay a hand on hover around $1.75 per share.

Gary Sattler is a freelance blogger. He does not knowingly hold investment positions in the companies mentioned in this blog post.

Citizen focus groups voice concern over Google-Yahoo alliance

naThe BBC reported on Saturday that demands are being made for careful government scrutiny of any potential alliances between Internet giants Yahoo Inc. (NASDAQ: YHOO) and Google Inc. (NASDAQ: GOOG).

According to the BBC report, a coalition of activist groups including the Black Leadership Forum, the League of Rural Voters, the National Black Chamber of Commerce, and the American Agriculture Movement, is concerned that allowing any kind of unregulated working relationship between Yahoo and Google could put Internet neutrality in serious jeopardy. Gary Flowers, representing the Black Leadership Forum, is quoted by BBC as stating, "We all suffer in such mega mergers." He further stated that the nature of such a partnership could "condense competition, increase prices and limit new business opportunity on the Internet."

The BBC indicates that the Justice Department is already in the process of reviewing joint operation trials that the two companies have engaged in. However, the department seems to be down playing the citizen coalition's demands, citing that the two companies have no working agreements to address. At a recently held Google shareholders meeting the matter was addressed by Chairman Eric Schmidt who stated, "If there were a deal [with Yahoo], we would anticipate structuring the deal to address the antitrust concerns that have been widely discussed."

I would tend to echo the valid concerns of Gary Flowers: too much control over Internet communications by any one particular entity or alliance would inevitably be bad for all of us. I think the matter needs to be taken to a broader base of examination than the justice department alone can provide.

Beyonce gives Abercrombie a run for its money

Who can forget the advertising campaign a number of years back that threw social watch dogs into fits over Abercrombie & Fitch (NYSE: ANF). That particular advertising foray employed the lithe bodies of teen and preteen boys and girls in a way which, while certainly drawing attention, underscored today's excessive use of underage sexuality in advertising. Parent groups and child protective agencies were enraged, as well they might be. However, a recent ad campaign launched by Beyonce and her House of Dereon, clothes for girls, makes Abercrombie's misadventures look about as harmless as a day at the zoo.

A blog post presented by our sister blog Styledash, reveals the shocking truth about the clothing ad campaign, which is the brainchild of Beyonce and her mother, Tina Knowles. Blogger Kristen Seymour espouses the danger in this type of advertising by describing the presentation in the terms of "Go on, baby, and earn your lunch money the old-fashioned way."

The gallery provided by Styledash is self-explanatory and might serve to turn the stomachs of little girl's parents everywhere. Certainly, Beyonce and her advertising agency have accomplished what they wanted to. We can also believe that Abercrombie & Fitch shall benefit slightly with a parallel focus to its own questionable advertising strategy. However, we need only to remember the enigmatic fate of JonBenet Ramsey to realize down which road this type of advertising strategy may lead.

(Thanks to Styledash for the tip, Additional thanks to Gawker)

The brilliance of Steve Ballmer and the uncertain future of Yahoo!

The dust is settling after the withdrawn purchase offer of Yahoo Inc. (NASDAQ: YHOO) by Microsoft Corporation (NASDAQ: MSFT). During that fascinating process, speculation ran high as to why Steve Ballmer chose the strategy that he did. People were asking what the probable outcomes could be and what would possibly be created by the acquisition. What I have found to be lacking in the realm of the public keyboard is a synopsis of what exactly Steve Ballmer has accomplished through this seemingly fruitless process.

Continue reading The brilliance of Steve Ballmer and the uncertain future of Yahoo!

Battle of the Brands: Lay's potato chips vs. Pringles

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Behold the humble potato chip, snack food of the ages. Claimed to have been invented in 1853 in the road house kitchen of Native American George Crum, the potato chip traveled through American snack history in a class of it's own. That is, until in the early 1960s, when it was discovered that you could grind potatoes into a slurry and then press them back into a consumable form.

I sat down one day with a bag of potato chips from Lay's and with a can of Pringles. Lay's are made by Frito-Lay, a property of PepsiCo Inc. ( NYSE: PEP). Pringles are made by Procter & Gamble Co. (NYSE: PG). I wanted to compare the two in order to assess their similarities and differences. What I found were two very different snacking sensations although both are derived from the same source. The Lay's ingredient list is simple. They're made with potatoes, oil, and salt, with no preservatives added. The Pringles ingredient list begins with the same potatoes, oil, and salt, but the product also contains at least traces of wheat starch and rice flour in addition to a couple common food chemicals.

Continue reading Battle of the Brands: Lay's potato chips vs. Pringles

Avialec International acquired by Kapco-Valtec

air fieldFocus LLC, investment banking service provider, has announced the acquisition of U.K. based Avialec by Kapco-Valtec, in a move aimed in part at expanding Kapco-Vatec's marketing base. Avialec, based in Petersfield, England, is a provider of electrical components to the aerospace industry. Building on eight years of growth, Avialec company leadership sought the benefit of increased aerospace industry clout which Kapco-Valtec presents.

Barrie Prescott, CEO of Avialec stated in the Focus LLC press release, "I had decided it was time to put Avialec under the wing of a larger progressive organization with financial firepower to realize the many opportunities before us ... FOCUS was the perfect firm to help us realize our goals."

Kapco-Valtec, a leader in aerospace supply chain management, shall provide market leverage for Avialec to realize it's expected growth potential, while gaining the benefit of greater exposure to Avialec's major accounts in the U.K. Likewise, Kapco-Valtec shall provide broader exposure of Avialec to U.S. aerospace accounts.

The Focus LLC investment bankers press release stated: "As is the case with the growing number of international M&A transactions, this deal is a win-win for both companies. We were pleased to be able to complete the transaction in just over four months, said Manan Shah, a FOCUS Partner."

For further information regarding this acquisition and the services of Focus LLC, please visit the Focus website at www.focusbankers.com.


Royal Dutch Shell plant in Nigeria bombed -- oil supply concerns mount

BBC news reported Saturday that militants in Nigeria have again sabotaged oil transfer infrastructure belonging to Royal Dutch Shell (NYSE: RDS A). This is the fifth incident of such attacks in recent weeks. The BBC report states: "Several previous ones have been blamed on supporters of the militant leader Henry Okah, who is currently awaiting trial on treason charges."

A Shell Oil spokesperson is quoted as stating that multiple oil delivery lines are affected and that some amount of oil has spilled into the environment. The company is undertaking oil containment measures and production volume has been reduced. Reuters News Service reported: "...the rebel Movement for the Emancipation of the Niger Delta (MEND) ... has already knocked 164,000 barrels a day off Shell's production in Nigeria with a pipeline bombing last month."

According to Reuters, local security forces are reporting that not just oil delivery lines have been affected. They claim that three oil wells and other equipment were also subjected to damage. Additionally, this news of sabotage comes on the heels of an eight day Nigerian labor strike against Exxon Mobil Corp. (NYSE: XOM). That strike ended this past Thursday and had temporarily cut that company's Nigerian oil production in half. And of course, with oil supply problems and concerns, oil prices have increased.

Battle of the Brands: Chevy vs. Ford pick-up trucks

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

When it comes to comparing the pick-up trucks of Ford Motor Co. (NYSE: F) and Chevrolet by General Motors Corp. (NYSE: GM), I can honestly say that I've owned both brands. I bought one F-150 off the showroom floor. I also bought one that was very well used. Both my Chevy Silverados were low-mileage, used models. I leased one of them from my dad and the other one I bought from my brother. I have also had opportunities to drive multiple specimens of each brand that were owned by friends or associates. I like both brands as far as their trucks go. Their cars are a story for another day.

To me, Chevy trucks always seem a bit more solid, with interior appointments a little more lush and inviting. Ford trucks seem to focus more on utility and usability within a bit roomier interior. The Chevy trucks always exhibit deep power, easily delivered upon demand. Fords trucks always seem a bit more spunky with their aggressiveness always close under foot. Chevy trucks appeal to the gentleman in me but they've always done any job I asked of them. Ford trucks appeal to the workman in me and they sometimes seem immortal.

Continue reading Battle of the Brands: Chevy vs. Ford pick-up trucks

Can reliable, profitable rail service be saved?

Bipartisan legislation aimed specifically at increasing government regulation of railroads threatens to hamstring 25 years of successful growth and investment by that industry. The Railroad Antitrust Enforcement Act of 2007 (H.R.1650) would effectively undo specific and narrow antitrust process exemptions that were provided for the railroads by the Staggers Rail Act of 1980. The Staggers act effectively halted what had previously been a massive and staggering decline by American railroads. Currently, the railroads are effectively and efficiently regulated by the Surface Transportation Board.

The American Association of Railroads reported in a press release, "Since Staggers, railroads and their customers have benefited enormously. Railroads have reinvested $420 billion back into their systems since 1980. The result has been improved service and safety, and nearly double their traffic volumes -- all while lowering average rates by more than 50 percent in inflation-adjusted terms. That means the average rail [shipping customer] can move twice as much freight today for the same price as in 1980." AAR further reports that a just-released Morgan Stanley survey found customer satisfaction with rail service is at a historical high.

It should also be noted that the devastating decline suffered by the railroads prior to passage of Staggers is arguably the lynch pin of this nation's inability to establish reliable, desirable, and profitable mass transit for commuters by rail. The rate of investment by our freight railroads since 1980 could be one facet in bringing effective local and nationwide passenger rail service back within our grasp. The passage of H.R.1650 may effectively destroy any further hope of developing high-speed, cross-continental passenger rail service and the further expansion of local commuter rail services.

In an age when surface transportation is becoming incredibly more expensive and our airlines are in perilous distress, do we really need to limit our options by passing legislation which could severely injure a system that works? You may wish to consider contacting your legislators in an effort to halt H.R.1650 dead in its tracks.

Billionaire Mark Cuban addresses CEO pay

My perennial near-hero Mark Cuban recently examined the issue of CEO pay, over on his handy soapbox, The Blog Maverick. In his blog post titled "My 2 Cents on CEO Pay," Mr. Cuban outlined his position on the subject and tossed some ideas around. The post makes a good read, and the author makes some good points. Additionally, the 65 or so comments by the readers are well worth the time to cruise them.

I'd like to discuss and expand upon an idea someone presented in addition to those discussed by Mark Cuban. It's actually a reverse scenario to what Mr. Cuban describes as moving chief executive officers into "the cash zone." In the Cuban scenario, the CEO would be paid cash, without additional compensation through stock grants, in order to make their pay more tangible and visible as a business expenditure. Mr. Cuban also asserts that this might more closely align CEO compensation with company performance. It's an admirable idea, but I doubt that it will ever happen.

In this alternate approach, we give the CEO all the stock certificates he or she can swallow. Then we provide an equal number to be divided among all other employees of the company. In this manner of compensation, all employees have their hands on the ball. The concept of laboring to line the pockets of someone else with gold would become extinct. The CEO would suddenly become a real person in the eyes of the rank-and-file laborers. Likewise, the labor force would be inextricably linked to the financial success of the CEO. If labor is to share the risk, they should also share the reward.

A further stop-gap to this scenario would be if upper management deemed that labor cuts were needed to create profitability, or for any reason other than "cause," they and the CEO would be required to surrender share holdings equal to the holdings of the displaced workers. These surrendered shares would then be distributed to the pink-slipped workforce members, with the company paying all applicable taxes on the transfer. Additionally, no party would be allowed to liquidate more than 5% of their holdings in any one year, as long as they were employed by the company, and upper management would be required to maintain holdings at least equal to those of the workforce.

I know it's a lofty scenario, but it sure would beat the heck out of what we have going on now.

Battle of the Brands: NASCAR vs. the NFL

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Imagine that you were only allowed to watch one sport on television for a whole year. Worse yet, imagine that you had to choose between two very popular sports all by yourself. The choice is up to you. Which will it be, NASCAR or the NFL? Will you select the gridiron wars or the need for speed? I shudder just at the thought of having to make such a life-altering choice.

On the one hand, I revel in the bone-crunching, close contact rivalries that play out every week on those hundred yard fields. The talent, the strategy, the sheer brutality of it. On the other hand, horsepower runs in my blood. The tension is palpable when watching those precisely tuned cars fighting for inches of superiority at the hands of fearless drivers. How could I choose between the pavement or the mud? How unfair would that be?

Continue reading Battle of the Brands: NASCAR vs. the NFL

DDR: Developers Diversified Realty poised for growth?

logoCould there be better times ahead for the share holders of Developers Diversified Realty (NYSE: DDR)? I took a look at what the analysts are indicating, and to me the chances for an upswing look pretty good. As the nation's largest holder of "strong in trade" shopping centers, the company is holding up quite well. We might even say exceptionally well, when you consider that it's sitting atop the real estate and retail double danger zone.

AOL Money and Finance indicates analyst consensus is to hold this stock. I see it just a bit differently. Out of 20 reported target prices for this stock, only one target is below current share price. To me that signals a reasonable expectation that the stock will move up. That is, unless you choose to believe that 19 of 20 brokerage targets are wrong.

Right now, it appears that DDR could be at the leading edge of it's next growth cycle. It's five-year return is pegged at just over 75.5% and it has returned over 16% YTD after losing more than 31% over the past year. This might be a good long term play if we are ready to claim that real estate and the general economy have stabilized. I'd be tempted to grab some of this company, if even just as a show of confidence.


Gary Sattler is a freelance blogger with no stock picking credentials. He does not knowingly have interest in the companies mentioned in this blog post.

HUGH update: HughesNet puts email back in service

The recently reported three day e-mail blackout experienced by the consumer internet customers of Hughes Communications Inc. (NASDAQ: HUGH) has ended. Although the system has not swung over to its new enhanced version, it appears that Hughes technical staff has opted to reawaken the previous e-mail application to restore that service to its customers. Personal comment from the company regarding this situation was unavailable as of this writing.

What little preview I received of the attempted e-mail upgrade by HughesNet was enticing. It looked streamlined, intuitive and was definitely appealing to the eye. When the company completes its adjustments and makes the hoped for upgrade available, I'll provide my full assessment of the new service for our readers.

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Last updated: May 16, 2008: 08:39 PM

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