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  • Microsoft: Why Satya Nadella Can Be A Great CEO  [View article]
    Maybe, but I doubt it. First, being an engineer and having a technical back ground gives him the ability to be a better CEO how?? Management is an entirely different job than engineering or technical work. In fact, history is littered with examples of people with strong technical back grounds going into management and then not making the grade. And the idea that Steve Ballmer did not understand the technology is silly. In fact most engineers or technical specialists have very narrow technology back grounds and that is not conducive to leading people and teams with the correct vision and then managing them to attain that vision. Nadella may indeed be a good CEO, goodness knows MS needs some good moves here, but if he does it will be because he has learned management skills and leadership skills, not because he is an engineer...in fact the only worse managers than engineers are medical doctors.
    Feb 10, 2014. 03:36 PM | 2 Likes Like |Link to Comment
  • There Is No Stopping Google  [View article]
    The great economist Herb Stein said: If something cannot go on forever it will stop.

    Pretty sure he was correct about this one. The idea that Google will forever be the dominant ad selling entity is just not sustainable. And with the new technology, it has already lost space between it and the competition.
    Feb 4, 2014. 11:59 AM | 1 Like Like |Link to Comment
  • Dissecting New Jersey's online gaming revenue haul  [View news story]
    First, I have been telling my clients for over 3 years that the idea of cannibalization of traditional casino revenue from online gambling is myth. For anyone that has any idea about online gaming vs who goes to casinos should have been a no brainer The fact that some gaming and casino analysts perpetuate the myth really shows that most folks doing the analysis have no understanding of the business.

    Second, There is not a need for Congressional action for the online gambling business for it to grow. It will grow by state to state agreements. Now, it would be helpful if there was federal bill, but only if it is the right bill. The poker only bills would hurt the business as poker is small potatoes for online gambling.
    Jan 16, 2014. 09:21 AM | Likes Like |Link to Comment
  • Zynga Cash Still Piled High  [View article]
    Aligning short term stock price with the CEO's compensation is a prescription for disaster for any long term value of the company. Implementing an reduction in force based on trying to move the stock value is also a very negative indicator for any long term value of the company. The stock buyback also at least looks like a gimmick to move up the stock price. So the real question to be asked is: Is anyone at Zynga working on its business vs its stock price???
    Dec 29, 2013. 07:45 AM | Likes Like |Link to Comment
  • Snapchat Is Killing Facebook  [View article]
    Ebay has a real business supported by transaction volumes so the cash flow is reasonably predictable...FB & Snapchat et al are basically trying to be advertising based businesses...quite a bit different. I don't think Ebay has done a great job with the trading platform they have, but they have not done a terrible job either..with better management I think they can grow substantively..Ebay also has the first mover branding benefit that does not work over any extended period of time in mere social media businesses like FB or Snapchat
    Dec 28, 2013. 08:23 AM | 1 Like Like |Link to Comment
  • Snapchat Is Killing Facebook  [View article]
    The mistake that investors make when looking at most e-commerce companies is to look at the company as an entity rather than part of a process. Looking at these companies as part of a process the hard numbers say the following: 1.) The Snapchat folks, if they dont get another offer relatively quickly that they take, will never again see $4 billions for their company and 2.) The time horizon on Facebook makes it a traders platform for the next two years at most, after which the decline will be precipitous.
    Dec 25, 2013. 11:09 AM | 4 Likes Like |Link to Comment
  • Danger Zone: Electronic Arts  [View article]
    The stock price is basically the same as it was 10 years ago...and that does not mean it is cheap now...it just means that the company has not justified an increased capital valuation... in fact with even a modest discount factor it is worth less now... and 10 years ago they had direct warning that they should move to a new online/mobile business model and they rejected based on personal style points... It is a shame what has happened to this company.
    Dec 13, 2013. 09:42 AM | Likes Like |Link to Comment
  • Zynga: Good Night And Good Luck  [View article]
    The question is, why did they make this decision?
    Jul 26, 2013. 10:34 AM | 3 Likes Like |Link to Comment
  • Zynga: Social Gaming Is Just An Added Bonus  [View article]
    The real money in online gambling will be from the confluence of social gaming and gambling in virtual worlds environments. Zynga really needs to focus on this and they can then put together a sustained topline and bottomline trajectory.
    Jul 3, 2013. 08:59 AM | Likes Like |Link to Comment
  • Can Zynga Execute In The Online Gambling Space?  [View article]
    ZNGA would have an excellent opportunity to deliver in the confluence of online gaming and online gambling, but not with its current management group.
    Dec 10, 2012. 01:19 PM | Likes Like |Link to Comment
  • Is A Turnaround In Store For Electronic Arts?  [View article]
    Just an FYI...FIFA licensing/IP costs are very high and the margins suffer from that
    Oct 16, 2012. 08:39 AM | Likes Like |Link to Comment
  • Is A Turnaround In Store For Electronic Arts?  [View article]
    Madden's new engine is great but the game play changes make it less user friendly for non-gamers and limits its audience. Medal of Honor has massive new competition but should do reasonably well, just not gangbusters...

    The problem EA has is that their margins are squeezed by licensing costs...they need new original products where they own all the IP and their development cycle is currently, well, problematic. Overall their stock may be good for 9%, which is still pretty good
    Sep 19, 2012. 03:51 PM | Likes Like |Link to Comment
  • DuPont: Undervalued And Outperforming Competitors  [View article]
    Well, unfortunately, DuPont is still too tolerant of execs that are politicians vs. good business people.... as for the finance group, read the history of DuPont when they controlled GM....DuPont really created modern corporate finance...I think if the gov had not forced them to divest GM, GM would be a much healthier company
    Sep 19, 2012. 08:47 AM | Likes Like |Link to Comment
  • DuPont: Undervalued And Outperforming Competitors  [View article]
    Generally, a good analysis. I worked at DuPont for 14 years and from my experience, the negatives are the superficial internal barriers that stop them from leveraging new product opportunities, and the positives are that their finance group, that basically is the steadiest and most important part of the corporate management, is by far the best in the world. If Kodak would have had a finance group like DuPont's, Kodak would be a $90 billion dollar top line company instead of bankrupt because they would have forced operating managers to make long term investments deeply inside customer markets fitting their technology. Bottom line I am a buyer on DuPont, between dividends and capital appreciation from new products and consistent earnings, they are a solid 8% annually if averaged over the next 10 years
    Sep 18, 2012. 08:54 AM | 1 Like Like |Link to Comment
  • Zynga's (ZNGA) legal battle with Electronic Arts (EA) just got personal. While requesting a judge strike down parts of EA's suit against the company, Zynga accuses EA of trying to make Zynga agree to a non-poaching deal (potentially in violation of antitrust laws), and claims EA's CEO has been feeling heat over Zynga's success. Zynga poached high-profile EA execs last year, but they recently left, and EA is now returning the favor. EA (like many other developers) accuses Zynga of copying one of its games.  [View news story]
    Well, like I said, both companies are in big trouble. Zynga has a customer access problem that they are only beginning to address and EA cannot sustain the investment needed to produce new products sufficient to sustain growth, unless they change their strategy. Their current franchise games are good, but not they are not producing enough free cash to fund the development needed...just a fact
    Sep 16, 2012. 08:41 AM | Likes Like |Link to Comment