Thursday, September 30, 2010

Take the Money!

No Vote From Dollar Thrifty Shareholder
Agreed, I know a little bit about the car rental business. My lesson here is take the money! I read where a top shareholder of Dollar Thrifty is going to vote against the merger deal with Hertz. I am sure that the shareholder has spent the time to talk to management? Maybe not. And under certain rules it may be impossible to get to all of the core facts. But the shareholder has made his/her choice.
Take The Money

The largest car rental operation in the world wants to buy you. Well the decision is simple. If the deal is lucrative and it makes sense strategically then take the money! If the deal is the only one on the table? Take the money! If you have never seen an offer this good? Take the money! If the shareholders make money? Take the money! If management and the employees fair well ? Take the money!
Remember the Bottom Line
One greedy, ill-informed shareholder does not make a deal. Nor can they break a deal. Look at the recent proxy fight involving Barnes and Noble and Ronald Burkle. He basically got his head handed to him but in the meantime costing the company considerably. I know a little about running a public company. I have seen shareholders try to remote control manage. It never is good for the company, management and the shareholders at large. Yes shareholders have rights and that is good for everyone. But remember the bottom line is take the money!

Wednesday, September 15, 2010

An Open Letter to Messieur’s Castro

Your Enemies Are Now Gone
The reasons behind your choice to become a communist nation are part of world history. However all your nemeses and enemies are now gone. Therefore you both must rethink your position as being part of a world economy.
A New Paradigm For The America’s
Recently your nations’ labor union announced the lay-off of the vast majority of the government work force. Concomitantly, Latin American is becoming a true force in the world economy. Examine the convergence of events. All the Americas are seeking a new paradigm to combat the overwhelming impact on world manufacturing that China possesses. All the Americas are seeking to regain a foothold on manufacturing consumer goods once again. They seek a cost efficient eager work force. Your country possesses just that work force. Trained and in some cases well educated, and of course soon to be abundant.
Seize The Opportunity Now Messieur’s Castro
It is incumbent upon both of you, Messieurs Castro to seize the opportunity before you. Become part of the democratic and free enterprise societies that can feed your masses and employ your poor and disheartened. Give your country the chance to regain its once desirable image. Cast off the grudges of old. Look into your future with now new opportunity benefiting your masses. The world has changed much during your tenures as dictators. Think outside the political edicts of times past. Look to build a new and fruitful economic future for your citizenry that can truly be a legacy of abundance, peace and prosperity.

Monday, September 13, 2010

Government Has Not Learned Anything From History

Banks Get New Restraints
Front page news reads “Banks Get New Restraints”. Globally governments are agreeing to add more regulation to avoid future financial melt downs. That assumes that all the governments involved have a crystal ball and the view from here is in fact what we will need seven years from now.
And it Was Not Good
As for now we need a little less regulation to allow the financial industry the latitude to maneuver in choppy uncertain economic waters. So now government, the icon of not knowing what is right for business is using its fuzzy image crystal ball to predict and control the future. I cannot disagree more. I have seen firsthand what over stepping regulation can do to an industry. I have seen what the perspective and inexperience of regulators can do to a perfectly healthy business. And it was not good.
Arm Chair Quarterbacking
Imagine for a moment a person that has no real world business experience making sea changing decisions for a financial institution. This government regulator is now arm chair quarter backing the strategy and business practice of a bank. Dangerous. Now put the factors together. More regulations phased-in in the future, of which we know nothing about, along with government regulators whom know little if nothing about how to interpret and integrate these new regulations into safe and sound business practice for banking institutions.
The Complex, the Mundane and the Futile
This is clearly a case where government has not learned anything from history. The government is going to over reach, over regulate, force over capitalization and overkill, at a time when we need to free up time of bankers to get back in the business of lending. Instead we are now going to increase cost and take away valuable time to understand the complex, mundane and futile. Wow!