Tuesday, November 10, 2015

MORE INTERESTING CONNECTIONS

Last Tuesday I wrote a post titled INTERESTING CONNECTIONS. A comment made to me was that the companies and businesses I listed having economic troubles and being part of the 379 were 'just flukes.'

Let's look at the phrase 'just a fluke' from phrases.org.uk:

But the Shorter Oxford says the first recorded use of "fluke" in the sense "a successful stroke made by accident or chance" is in 1857, and suggests that it derives either from a dialect word meaning "guess/miss in fishing" or is a pun on another meaning of "fluke", viz. "flounder" (the flatfish) - in other words, if you make a fluke, you're just floundering and your success is just due to luck. (emphasis mine)

I am pointing out that the 'connection' that all these businesses have in common is being on the SAME list, which is the list of 379 businesses that pushed for same-sex marriage before the Supreme Court.

If you wish to call them 'flukes' instead of 'connections,' by all means do so.

Want to look at some more 'flukes' found due to 'just luck'? because I've got a BUNCH bookmarked.

Since signing on to the list of 379, here are more companies that have since run into serious financial trouble, or scandals:

Alcoa:

NOV 7: A 127-year-old American industry is in danger of disappearing

Alcoa announced that it was halting smelting operations at its Intalco Works (583 employees) and Wenatchee plants (428 employees) in Washington state, its Massena West plant in New York (500 employees) and that it was curtailing alumina refining capacity at its Point Comfort facility in Texas.

American Apparel:

OCT 5: The company filed for chapter 11 bankruptcy in the U.S. on October 5, 2015; one of the largest apparel manufacturers in North America, had not made a profit since 2009.

As of September 2015, American Apparel was trying hard to avoid bankruptcy as it scrambled to raise money to pay down US $ 15.4 million debt due in October, 2015. It was struggling to find funds as it prepared to report a torrid set of financial results in the coming weeks.

The clothes retailer warned investors in August 2015 that it won’t have enough cash to “sustain operations for the next twelve months” which raises “substantial doubt that we may be able to continue as a going concern”. The firm filed for Chapter 11 bankruptcy on October 5, 2015.

Apple:

NOV 10: Apple Cuts Component Orders By 10% Due To Weak iPhone 6s Demand: Credit Suisse

"iPhone supply chain orders have weakened recently. In our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters."

Deutsche Bank:

OCT 7: The First Crack: Deutsche Bank Preannounces Massive Loss, May Cut Dividend

Oct 29: Deutsche Bank Reports Massive Loss, Will Cut 35,000 Jobs, Exit 10 Countries In Sweeping Overhaul

NOV 6: Deutsche Bank: "This Is Yet Another Sign Showing How Broken The Financial Market Is Around The World"

Direct TV:

AUG 14: Direct TV and Dish Network hit hard by cord-cutting in Q2 2015 (International Business Times)

. . . for the three months ended June 30. The report estimates that the pay-TV industry lost a collective 625,000 subscribers in the second quarter, with the direct broadcast satellite, or DBS, sector accounting for almost half of the losses

Dropbox:

NOV 10: Unicorns Dropping Like Flies: First Dropbox; Then Square; Now Fidelity Cuts Snapchat Valuation By 25%

First it was Dropbox. Two weeks ago we reported that one of the numerous "unicorns" prancing around Silicon Valley was about to have a very rude wake up call when Dropbox was warned by its investment bankers that it would be unable to go public at a valuation anywhere near close to what its last private round . . . (emphasis mine)

FLASHBACK: Silicon Valley Led the Effort for Same Sex Marriage

Facebook:

NOV 10: Facebook, McDonald's and Amazon Among 11 Companies to Face EU Tax Grilling (Bloomberg)

These three companies are on the list of 379 as well as: Apple, Barclays, Coca-Cola, Disney, HSBC Holdings, Starbucks, and Wal-mart.

Amazon . . . said in a U.S. filing that its taxes could increase in case of a negative decision by the EU in its case.

Hilton Worldwide Holdings (and Marriott International):

NOV 3: Hilton is the latest hotel suspected of blocking customers’ personal Wi-Fi

It always seemed improbable that Marriott was the only one. Last year the hotel chain paid $600,000 to America’s Federal Communications Commission (FCC) to settle a complaint that it had blocked customers’ personal wireless modems and hotspots at “at least one” of its hotels, forcing customers to sign up for expensive in-house internet access instead. Now Hilton has found itself in hot water over the same charge.

JPMorgan:

NOV 10: JPMorgan Among Victims of Vast Criminal Hacking Enterprise (Bloomberg)

JPMorgan Chase & Co. was among the targets of the biggest theft of customer data from U.S. financial institutions in history, prosecutors said . . .

New England Patriots:

MARCH 5: Patriots Among 379 Companies to Sign Brief in Support of Gay Marriage

MAY 11: Tom Brady will be suspended by Roger Goodell for role in Deflategate

Tom Brady will be the highest-profile player ever suspended in the 96-year history of the NFL.

NOV 6: Now PATRIOTS Under Microscope For Winning 19 Of Last 25 Coin Flips… Probability 0.0073%

Starbucks:

NOV 10: Trump Suggests Boycotting Starbucks Over Red Cups Controversy

Mr Trump told his audience last night: “Did you read about Starbucks? No more Merry Christmas on Starbucks. Maybe we should boycott Starbucks."

(gg note: This is not about what I think of Christmas or Donald Trump, but that this is a controversy that keeps getting bigger, and because of Donald Trump's following, Starbucks probably has a PR nightmare forming on their hands. The article notes that the British are not happy about this, which indicates a controversy that is not contained within the US but threatens to spread globally. Probably not what Starbucks wanted.)

Too-big-to-fail banks:

In last week's post, noted JPMorgan, Wells Fargo, Citigroup, Goldman Sachs, State Street Corp, and Morgan Stanley had been placed on downgrade watch by S and P, and that these banks were all on the list of 379. I found this from Michael Snyder bookmarked in my April file.

APR 13: The Six Too Big To Fail Banks In The U.S. Have 278 TRILLION Dollars Of Exposure To Derivatives

NOV 10: US Banks Are Not "Sound", Fed Report Finds