[10/30/19 NEW] Baxter Needs a Remedy

Baxter International is a successful pharmaceutical company. It consistently reports sales and earnings growth, and its stock price beat easily the indexes in recent years, commanding a $40 billion market capitalization. What could go wrong? On October 24, 2019, Baxter announced its third quarter 2019 results: 5% sales growth (on constant currency basis), and operating…

[08/30/19] The Inconvenient Truth About Stakeholders

              You must have heard by now that on August 19, 2019, the U.S. Chamber of Commerce announced in double-page ads the death of shareholder value as the main corporate purpose. Endorsed by more than 180 CEOs, many of major companies, the Chamber announced the adoption of the stakeholders concept, by which the business…

[08/13/19] Kraft Heinz: How About Some More R&D

Summary Kraft Heinz keeps writing-off its old, tired brands. But where would the new products and brands come from? KH managers are famed for cost cutting. R&D should be the exception. Late last week, the Kraft Heinz (NASDAQ:KHC) Company served investors with another brands write-down: $1.22 billion. This, in the wake of a massive $15.4…

[07/30/19] Will Growth Stocks Continue to Perform and Value Stocks to Disappoint?

   If you wondered whether high valued growth stocks, including high tech and internet services providers, will continue to perform well, and low-valued stocks to disappoint, read the following article by me and colleagues (listed at article end) describing the results of our recent extensive research. Elephants Can’t Dance? Revisited Large firms seem better prepared…

[07/12/19] Apple Downgraded: Does It Matter?

Both Yahoo! Finance and the British Telegraph noted this week that for the first time in more than two decades (before the introduction of the iMac and iPod) five financial analysts rate Apple’s stock as a “sell.” All five downgrades to “sell” came this year, and they all relate to concerns about the iPhone line…

[06/04/19] Alternative Data to the Rescue of Financial Reports

In Brief The usefulness of financial reports to investors is fast diminishing. Alternative data are actively sought by investors and academics Research has shown that satellite-imaging, web searches, job announcements, among others, can assist in predicting companies’ sales.   The Sad State of Financial Information It’s no longer a secret that corporate financial reports lost…

[05/23/19] Djokovic, Nadal, and the CEO Pay Controversy

Novak Djokovic, Wimbledon’s 2018 winner, received £2.25 million prize, whereas Rafael Nadal, who lost to Djokovic in the semifinals, receive a paltry £562,000. What explains Djokovic’s almost four-times higher prize? Is Djokovic four-times more talented than Nadal? Was he playing four times harder? Does Djokovic draw four times more spectators, or TV audiences than Nadal…

[05/08/19] UBER: Pre-IPO Observations on Performance

Investors eagerly await Uber’s (UBER) impending IPO and with good reasons. It’s not every day you get an opportunity to invest in an industry – ride-sharing – founder and leader. Uber’s successes and travails are legendary and, soon, you’ll have an opportunity to share in its ownership. Now is the time for a sober, unemotional…