Professor Elam

Accounting & Investing Info for San Antonio A & M

recent posts

about

  • Professor Elam

    Buffet Buys BNI

    This morning we learn that Warren Buffet has bought the Burlington Northern RR BNI. He paid about $25 above market at $100, the largest purchase ever for Berkshire.Buffet declares that buying a RR is tantamount to buying America, a bet on the country. 

    Again, see the Black and Decker Stanley post, acquisitions and mergers are inclusionary, and top of the market activity. Oh we think the market is going up into the spring but …

    The Dow Transport Average has not confirmed the new high in the Dow Industrials. BNI is a big component of the Transports, so this will buoy the Trannies. And Buffet is a big Barack supporter, and the market needs a boost here to stay up. So look for the Transports to be up today, it will be interesting to see how the Transports finish the week!

  • Professor Elam

    Design Shines at B Schools

    I have advocated making Design a centerpiece of an MBA program. Here is an article that manufacturers are turning to Business Week's list of Design schools for a competition, click on the list of BW Design Schools to see what I mean. 

  • Professor Elam

    Stanley Buys Black and Decker

    Stanley which owns Stanley hand tools and MAC automotive tools is acquiring Black and Decker, a power tool maker. Note this is an acquisition by stock not cash. While there is talk that this will eliminate overhead, the BD workers better hope their  union is in good shape, and the BD management will not be for long as these things go. 

    Mergers are inclusive and are seen at market tops.  This is why understanding socionomics can be valuable in understanding when and why things happen.  Joining is a inclusionary result of mutual good feelings, this did not happen at DOW 7000 but DOW 10,000. While the company is called Stanley Black and Decker, look for Stanley to discard the BD logo when the market bottoms in 2012, note FED EX has already discarded the Kinko name. 

  • Professor Elam

    Tax Carrybacks Extended

    Congress is extending the period to carry back losses for corporations. This will lower the tax paid and hopefully allow more cash to keep people employed. Welcome to the New Normal. 

  • Professor Elam

    Toyota, Stage 4 Failure?

    * President Akio Toyoda followed up his statement that he thinks Toyota is at "stage 4" of the management book, "How the Mighty Fall," described as "grasping for salvation," by saying he thinks Toyota can move out of stage 4, "because it is blessed with the best dealers and employees in the world." Carter added that "many people online expressed admiration for Akio's honest assessment and his desire to change the company for the better.


    Well we never heard Rick Waggoner say that about GM did we?

  • Professor Elam

    Avoid Regular and Diet Sodas

    Here is  note from Yahoo Health, avoid soda drinks.

    Read how over consupmtion of sugar leads to increased insulin levles which leads to our national epidemic of diabetes. Worse, it is hard on the pancreas, that got Michael Landon and Patrick Dempsey.

    I am quite serious, please avoid the soda drinks and chips, way too salty and too many chemicals.  Suzanne Somers has written extensively about these dangers in her 19 published books.

  • Professor Elam

    Wendi Taber on Certifications

    Wendi Taber is a long term professional friend of this campus. She has spoken at least three times to my classes that I can remember. She is the incoming President of San Antonio CPA Society. 

    An alert student asked about the viability of all these multiplying certifications, many of which sound dubious at best, like certified budget whatever. 

    Ms. Taber iin addition to CPA is a CISA and CITP, 

    Her comments follow


    The reason I became a CISA and CITP is because of the area of expertise
    I was working – Information Security and IT Audits.  Due to the
    technical aspects of IT Audits is was beneficial for me to have that
    technical knowledge as well as the auditing (CPA) background to be
    successful.  

    Certifications play a significant role in today's businesses.  With the
    certifications, employers view you as someone that is dedicated to their
    field and you have a passion for life long learning.  The job, the
    project, etc. is always changing so you need to be flexible in your
    career path.  

    I enjoy learning something new everyday.  With these certifications it
    keeps me on my toes with current industry practices and what works or
    doesn't work.

    Thanks, Dennis.

    Wendi C. Taber, CPA , CISA, CITP
    Risk Management Analyst
    Security Service Federal Credit Union

  • Professor Elam

    You Mean this Thing Floats?

    Here is another 2006 idea trying to, literally, float in the New Normal. Royal Caribbean 

    commissioned this $1.5 Billion cruise ship. Yep, 6300 passengers which is about the entire population of well, Crane, Texas. the smoke stack retract so it could fit under the bridge outside the Danish shipyard where it was built. 

    Cost students will recall that break even is fixed cost divided by contribution margin per passenger in this case. I think I will pass on being a passenger, imagine the lifeboat drill?  This ship is, are you ready, five times the size of the titanic. Good think it will be floating in the warm waters of the Caribbean…

    Clearly RC thought they could book enough passengers to hit fixed cost on each trip and rake in money from the rest. This is rather like that Airbus plane that seats 600, I will pass on that one too….

  • Professor Elam

    Costco CEO Simple Agreement

    the Costco CEO has a simple employment agreement, others not necessarily so. Take a read of the complexity of recent deals. We are studying the SW Air annual report in Intermed II, this is a good example of how things are getting out of control, look for the FEDS to take an interest. 

  • Professor Elam

    Globalization Comes to West Texas

    Okay, ready for this?  A Chinese wind turbine firm with financing from a private venture group in Austin, Tx is investing in a West Texas Wind Farm using US Stimulus money. It gets better..

    The symbol is APWR, listed on the NASDAQ as Chinese citizens cannot invest in  Chinese firms