Business and Tech Links and Notes #4

January 7, 2010

1-7-10

1. http://www.foxbusiness.com/story/markets/industries/retail/update–cadbury-shares-dip-kraft-bid-time/

“Cadbury Shares Dip Below Kraft Bid for First Time”

It appears that Kraft bought off its competition for Cadbury, giving Kraft the position to take Cadbury at a more favorable price. Considering Cadbury shares are taking a hit as a result, and there appear to be few outs for the company to start competitive bidding again, Cadbury would be well-advised to snap on any offer of over 800p per share. The last thing they need to do is hold out for a worse offer. Kraft is just way too big, and generosity will deteriorate with lengthy negotiations.

2. http://www.cnbc.com/id/34731317

“Will Moving to Another City Help You Finally Land a Job?”

The information in this article is grossly obvious. If ones has basic personal bonds to his or her current geographic location, of course he or she should try to find employment there before going elsewhere. Obviously, one should not go on some wild goose chase looking for jobs that may or may not exist. And, it is a no brainer that one has to tell bosses that he or she will be available in the geographic area of the position being offered, as opposed to being wishy-washy about it. There are a few decent tips that are not completely common sense, such as looking at local sites for jobs not posted on big jobs sites, but there is not a whole lot here that most people should not already consider evident.

3. http://money.cnn.com/2010/01/07/markets/thebuzz/index.htm

“Pain at the pump returns with gas prices on the rise”

Why does the United States continue to rely so heavily on oil when the countries who export oil to us hate our guts, and states and localities inside our own borders fight to not put refineries within their jurisdictions? Furthermore, why do the American people put up with our own government letting big petroleum companies price fuel using shady business practices? I would vote for any congressional, senatorial, or presidential candidate who could be trusted to better regulate the oil industry in the United States and would stand up to OPEC. That being said, I would also vote for any candidate who had a reasonable, intelligent plan for coming up with alternative sources of energy. A lot of people give lip service to it, but I have yet to hear anyone actually provide something meaningful, logical, and showing competence.

4. http://www.bloomberg.com/apps/news?pid=20601087&sid=aO_AfZ7nSWwo&pos=1

“Geithner’s Fed Told AIG to Limit Swaps Disclosure (Update2)”

I do not claim to know everything about credit-default swaps, but from what I understand, various major banks entered into these agreements with AIG, and when things started going sour, AIG wanted to negotiate discounts with banks. The New York Fed ordered AIG to not negotiate discounts and to pay the banks in full, while the Fed would secretly give a bailout to AIG. Apparently, this cost taxpayers many billions of dollars that they would not have had to have paid had AIG been allowed to negotiate discounts with the banks, like they wanted to in the first place. All the while, the Fed told AIG to keep everything under the radar, while AIG wanted be ethical and tell the public about everything that was going on. There is only one word for this: disturbing.

5. http://www.forbes.com/2010/01/06/brain-neurons-control-technology-breakthroughs-light.html

“A Light Switch For The Brain”

This discovery really seems like a double-edged sword to me. On the one hand, I like the idea that depression and other mental illnesses that are caused in part or in whole by overactive brain activity can possibly be treated or cured by turning the neurons off and on at will. But I worry that such technology could be used for less scrupulous purposes as well. I certainly hope the day does not come when someone can be medically induced into forgetting things that are inconvenient for someone else.

6. http://www.forbes.com/2009/12/17/nonprofits-biggest-salaries-personal-finance-millionaires.html

“Nonprofit Millionaires”

I disliked this article greatly. As a whole, nonprofit organizations have to make do with what they have, which is usually less than what they could use to be comfortable on the job. That being said, people of talent are necessary to make an organization thrive. Regardless of whether an organization is nonprofit or for-profit, that organization needs to hire good leaders, and those leaders cost money. In my opinion, an executive is worth whatever he or she needs to be compensated to keep reaching the company’s bottom line. If an organization wants to continue making money or advancing its mission goals, that comes at a price; people need to be paid what they are worth, regardless of who they work for.

7. http://www.infoworld.com/d/adventures-in-it/truth-about-small-business-blogs-438

“The truth about small-business blogs”

It makes sense that any sort of stale or poorly maintained entity within a business looks worse on that business than if said entity was not there at all. Blogs and social networking pages are no exception. I find it annoying when I look at a rarely updated blog or Facebook page for something I enjoy, just in general. In regard to a business, having a blog or other online presence is a means of getting feedback from customers. If a means of reaching out to customers is poorly maintained, it is logical to believe customers would think that the business really does not care about them.

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Business and Tech Links and Notes #2

January 4, 2010

1-4-10

1. http://www.businessweek.com/globalbiz/content/jan2010/gb2010014_211008.htm

“Kraft May Lift Offer on Cadbury Stock Rise”

It does not seem surprising to me that a food (candy) company has become a hot target for takeover at this time. Even in the worst of times, people will still eat candy. It also does not seem surprising that Cadbury’s stock is pushing up as high as it can, considering the strength of the company, and considering how many other companies seem to have interest in buying Cadbury. Regardless of who ends up buying the company, I do think the Cadbury brand will still remain strong, and it will not get swallowed up by its parent company.

2. http://money.cnn.com/2010/01/04/news/economy/ISM_manufacturing/index.htm

“Manufacturing activity continued to grow in December”

According to the article, there has been steady growth for several months in manufacturing. Computer and electronic manufacturing is up, which is no shock. But I cannot see the greater correlation between manufacturing growth and general economic upturn. There was no mention in the way of sales or much of anything else further on the business chain. Also, not a peep was mentioned about job growth or manufacturing infrastructure increases. Although an increase in orders is not a bad thing, I think it would be unwise to believe it alone has any meaningful effect on the greater economy.

3. http://www.forbes.com/forbes/2010/0118/investing-eveillard-first-eagle-mutual-funds-calamity-insurance.html

“Using Gold as Calamity Insurance”

Although some may laugh at this notion, I think Ron Paul has a good idea when he says that we need to be able to have alternate forms of currency, because that forces the people who control the various forms of currency to be more vigilant in maintaining the value of said currencies. What does this have to do with the article? I agree that gold is not the end all, be all of financial value, but gold definitely has its place in any society that heavily relies on fiat currency and securities-based investments. In the article, the company uses gold to give stabilize mutual fund portfolios. What has helped gold throughout the years is that it is a tangible object that cannot go away. It changes in value mostly from mining circumstances and consumer and investor demand. This has been a viable, stable currency for many centuries. Why can it not continue to be a usable currency? It does not have to be the currency, but it can be one of many.

4. http://news.cnet.com/8301-30684_3-10423524-265.html?tag=newsLeadStoriesArea.1

“Five New Year’s Resolutions for Google”

This article really hits the nail on the head. In particular, the comments about Google Books made a lot of sense. It seems surprising that Google has not tried to cash in on the e-reader craze yet, considering how dedicated they are about creating a comprehensive e-library. Then again, that may be part of what Google has in mind with their current mobile strategy. Google is one of those companies that tries to make everything tie into everything else. Although this strategy generally works, I do think people can be sometimes overloaded by having too much in one spot, such as in the example of Google Wave. I find it interesting that so much hype was made about the Wave beta testing just a month or two ago, and we barely hear anything about the project now.

5. http://www.informationweek.com/news/healthcare/EMR/showArticle.jhtml?articleID=222100334

“U.S. Pushes For EMR Standards”

This makes sense, and I totally support this. If a person gets sick or injured, particularly somewhere not near his or her home, having standardized medical files could help people significantly by correcting the problems made by inconsistent forms, such as wasting time and making possibly incorrect assumptions in filling in gaps. I do not think paper files should be done away with, but they need to become backup files, as opposed to the main sources of information on patients. Consistency in electronic medical files is something I believe should be on the top of the list of tasks for improving health care in the United States.

6. http://www.bloomberg.com/apps/news?pid=20601087&sid=am2z88Oy1kJs

“Housing Animal Spirits to Be Banished by Prime Foreclosures”

This article was a bit depressing to read. It is one thing when people who played the market and tried to live drastically beyond their means get hit, but it is quite another when people who did things in a reasonable, cautious way are in the hot seat. The current recession is quite the cycle, where people become less inclined to spend when they are getting laid off or otherwise having their employment decreased, but employment rates end up having a hard time increasing, because people are less inclined to spend. Such a skittish economy causes even the most responsible of people buying on credit to have problems, because the jobs they took for granted as being secure suddenly become not so secure. Something has to give, somewhere.

7. http://www.bloomberg.com/apps/news?pid=20601087&sid=a1cY88utRbZU&pos=7

“Commodities Back as Gurus Eschew Financial Assets (Update1)”

Although the U.S. stock market and the dollar appear to be in recovery for now, I think there will be a turn toward inflation once the stimulus money is weaned from companies. I could easily see the U.S. starting to print money if it cannot find another way to pay for the huge hole it has gotten itself into. I think it will be especially important to continue holding onto commodities and precious metals investments throughout 2010, because I do not think the dollar has seen its worst days yet, even if the Fed raises interest rates.