Professor Elam

Is there any name more synonymous with Texas wealth than Neimans?

Click on the hyperlink to learn the details of Neimans $500 M + loss. DId Neminas really lose that much money? IN one quarter?  Well not exactly, the actual loss was more like $32 M, still substantial but not half a billion.  The rest is an accounting textbook lesson in how to read financial statements. Neimans had a half billion write down inimpairment charges and goodwill write offs. Neimans was purchased for by a hedge fund, another goldman deal, using you guessed it, lots of debt. Goldman peddled the debt to he public as a good deal.  If Neimans cannot make money during Christmas, remember their famous Christmas catalog, when can they make money?

Write downs were taken on venerable names such as Horchow and Bergdoff Goodman.

Here is a link to the designer names Neimans carries. How many of these will get marked down in the near future. This is what I meant that there are lots of derivatives in the marketplace. These names are a derivative in their value of the marketing cachet they carry. Of course when no one is shopping except at Family Dollar, the value of the cachet well drops….

Expect that the impairment rules will require many more companies to take such 'losses.'