Filed under: Management, Entrepreneurs, Initial public offerings

This post is one of several on business heirs apparent. Let us know in the comments whether you think Allegra Versace should take up the reigns of Versace, and be sure to check out the other heir apparent posts.

Allegra Versace was eleven years old when her uncle Gianni was murdered at his Florida villa. The fashion industry icon and founder of the Versace empire left half of his fortune to Allegra, with whom he had been especially close. “My children were his children,” said Allegra’s mother, Donatella Versace. “He was always with Allegra. Since she was nine years old she would go to museums with him. … She would sit with him and go through art books. … It was adorable. She was such an amazing, special little girl.”

On her 18th birthday, Gianni’s “little princess” came into her inheritance, worth $700 million and including real estate holdings worldwide. Donatella had protected Allegra from the media, but even all grown up Allegra has had little to say publicly about how she felt about the loss of her beloved uncle or about what she planned to do with the family firm. The Versace Group made it clear, however, that Donatella and Allegra Versace would bring a new face to the Versace label, which had struggled since the loss of its founder.

Continue reading Heir apparent: Allegra Versace outgrows the fairy tale

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Filed under: Management, Entrepreneurs, Initial public offerings

This post is one of several on business heirs apparent. Let us know in the comments whether you think Allegra Versace should take up the reigns of Versace, and be sure to check out the other heir apparent posts.

Allegra Versace was eleven years old when her uncle Gianni was murdered at his Florida villa. The fashion industry icon and founder of the Versace empire left half of his fortune to Allegra, with whom he had been especially close. “My children were his children,” said Allegra’s mother, Donatella Versace. “He was always with Allegra. Since she was nine years old she would go to museums with him. … She would sit with him and go through art books. … It was adorable. She was such an amazing, special little girl.”

On her 18th birthday, Gianni’s “little princess” came into her inheritance, worth $700 million and including real estate holdings worldwide. Donatella had protected Allegra from the media, but even all grown up Allegra has had little to say publicly about how she felt about the loss of her beloved uncle or about what she planned to do with the family firm. The Versace Group made it clear, however, that Donatella and Allegra Versace would bring a new face to the Versace label, which had struggled since the loss of its founder.

Continue reading Heir apparent: Allegra Versace outgrows the fairy tale

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Filed under: Citigroup Inc. (C), Bear Stearns Cos (BSC), Blackstone Group L.P (BX), Recession

There’s anxiety across New York City, as the financial system convulses.

According to eFinancialCareers.com, there has been a flood of resumes to the email boxes of headhunters. Of course, a big chunk is coming from the employees of Bear Stearns Cos. (NYSE: BSC). In fact, the rumors are that as many as 7,000 employees may get pink slips.

But here are some other recent announcements:

o. Citigroup (NYSE: C) plans to layoff 2,000 employees from the trading and investment banking segments. The cuts will also include senior-level people.
o. UBS (NYSE: UBS) may slash as many as 8,000 positions.

Actually, so far this year, the job losses for the financial sector have come to about 22,000. And as seen from the recent announcements, it looks like things will continue to get worse.

Continue reading Wall Street - the next “Rust Belt”?

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Filed under: Citigroup Inc. (C), Bear Stearns Cos (BSC), Blackstone Group L.P (BX), Recession

There’s anxiety across New York City, as the financial system convulses.

According to eFinancialCareers.com, there has been a flood of resumes to the email boxes of headhunters. Of course, a big chunk is coming from the employees of Bear Stearns Cos. (NYSE: BSC). In fact, the rumors are that as many as 7,000 employees may get pink slips.

But here are some other recent announcements:

o. Citigroup (NYSE: C) plans to layoff 2,000 employees from the trading and investment banking segments. The cuts will also include senior-level people.
o. UBS (NYSE: UBS) may slash as many as 8,000 positions.

Actually, so far this year, the job losses for the financial sector have come to about 22,000. And as seen from the recent announcements, it looks like things will continue to get worse.

Continue reading Wall Street - the next “Rust Belt”?

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Filed under: After the bell, Serious Money, Commodities, Oil, S and P 500, DJIA, Recession, NASDAQ

At each century mark I like to post something special to note the occasion. This is my 600th post since lead editor Amey Stone asked me to join her original blogging team. That was a little over two years ago and I must say, it has been a fascinating experience from atop AOL’s giant soap box.

Although investors have had to withstand a tremendous amount of turmoil in the market place, and not just the stock market, there is much to report that is very positive on this Good Friday. So, in no particular order I give you the following to consider.

• The stock market closed up yesterday, and for the week, with the Dow Jones Industrial Average settling in at 12,361.32, up 261.66. The NASDAQ closed at 2,258.11, up 48.15 and the S&P 500 Index finished at 1,329.51 up 31.09.
• The stock market being up at all after so much bad news and given the longer weekend is a miracle. I would have thought traders would have wanted to be out of the market for the stretch. The Dow is above 12,000 and all things considered that is good.
• News from Iraq shows signs of improvement and while Osama bin Laden may still be issuing hateful video tapes, he is not doing so from a five-star hotel and is likely to perish in the rubble of his hiding place.
• Crude oil reached an all-time high price this week, but by Thursday had retreated more than 10% dropping below $100 per barrel. The reason for the retreat was fear about a recession, but I think I will take the lower prices as a positive regardless of the reason.
• We have a vibrant presidential campaign that has stimulated interest among young and old alike with three candidates each offering something new.
• In sports, March Madness is upon us and the NBA play-offs are just around the corner. The boys of summer have started to loosen their limbs for the long stretch to October and the steroid noise has settled down to a whisper, at least for now.
• The majority of economists now seem to believe we are in a recession. That is a good thing because we need capitulation before we can improve. I do not think we will hear the president capitulate, but maybe he has and just can’t bring himself to use the word.
• Spring is here and the days are brighter longer.
• Even though many industries have seen a downturn in business, many are still booming.
• The devalued dollar has had the predictable effect of improving our trade imbalances.
• Unemployment is still relatively low.
• AOL finally got it’s much improved stock section out of beta test mode this week, now up and running.
• Interest rate cuts (which I have my doubts about) are serving to stabilize financial markets. I think that there will be bad news from the financial markets for the rest of the year, but very little will shock us any more. If the shock effect is gone — implied by the up market yesterday and to my great surprise last Monday, than we may have turmoil and bad news but after a few more gyrations the stock market will move up.

Among the many good things to report, there is value in the market among many sectors. There are many stocks on my shopping list worth buying. These I will leave for post 601…

Have a GOOD FRIDAY!

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture and planning firm. He writes Chasing Value and Serious Money columns.

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Filed under: After the bell, Serious Money, Commodities, Oil, S and P 500, DJIA, Recession, NASDAQ

At each century mark I like to post something special to note the occasion. This is my 600th post since lead editor Amey Stone asked me to join her original blogging team. That was a little over two years ago and I must say, it has been a fascinating experience from atop AOL’s giant soap box.

Although investors have had to withstand a tremendous amount of turmoil in the market place, and not just the stock market, there is much to report that is very positive on this Good Friday. So, in no particular order I give you the following to consider.

• The stock market closed up yesterday, and for the week, with the Dow Jones Industrial Average settling in at 12,361.32, up 261.66. The NASDAQ closed at 2,258.11, up 48.15 and the S&P 500 Index finished at 1,329.51 up 31.09.
• The stock market being up at all after so much bad news and given the longer weekend is a miracle. I would have thought traders would have wanted to be out of the market for the stretch. The Dow is above 12,000 and all things considered that is good.
• News from Iraq shows signs of improvement and while Osama bin Laden may still be issuing hateful video tapes, he is not doing so from a five-star hotel and is likely to perish in the rubble of his hiding place.
• Crude oil reached an all-time high price this week, but by Thursday had retreated more than 10% dropping below $100 per barrel. The reason for the retreat was fear about a recession, but I think I will take the lower prices as a positive regardless of the reason.
• We have a vibrant presidential campaign that has stimulated interest among young and old alike with three candidates each offering something new.
• In sports, March Madness is upon us and the NBA play-offs are just around the corner. The boys of summer have started to loosen their limbs for the long stretch to October and the steroid noise has settled down to a whisper, at least for now.
• The majority of economists now seem to believe we are in a recession. That is a good thing because we need capitulation before we can improve. I do not think we will hear the president capitulate, but maybe he has and just can’t bring himself to use the word.
• Spring is here and the days are brighter longer.
• Even though many industries have seen a downturn in business, many are still booming.
• The devalued dollar has had the predictable effect of improving our trade imbalances.
• Unemployment is still relatively low.
• AOL finally got it’s much improved stock section out of beta test mode this week, now up and running.
• Interest rate cuts (which I have my doubts about) are serving to stabilize financial markets. I think that there will be bad news from the financial markets for the rest of the year, but very little will shock us any more. If the shock effect is gone — implied by the up market yesterday and to my great surprise last Monday, than we may have turmoil and bad news but after a few more gyrations the stock market will move up.

Among the many good things to report, there is value in the market among many sectors. There are many stocks on my shopping list worth buying. These I will leave for post 601…

Have a GOOD FRIDAY!

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture and planning firm. He writes Chasing Value and Serious Money columns.

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Filed under: Options

Volatility Index S&P 500 Options-VIX at 26.62; 50-day moving average is 26.39.

NASDAQ 100-QQQQ overall implied volatility at 30; 50-day average is 29.

Russell 2000-IWM overall implied volatility at 32; 50-day average is 29.

Financial Select Sector-XLF overall volatility at 45; 50-day average is 37.

Over all market option implied volatility is flat compared to its 50-day moving average according to Track Data, suggesting non-directional price movement. Financial stock volatilities are elevated, suggesting continued sharp price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Filed under: Options

Volatility Index S&P 500 Options-VIX at 26.62; 50-day moving average is 26.39.

NASDAQ 100-QQQQ overall implied volatility at 30; 50-day average is 29.

Russell 2000-IWM overall implied volatility at 32; 50-day average is 29.

Financial Select Sector-XLF overall volatility at 45; 50-day average is 37.

Over all market option implied volatility is flat compared to its 50-day moving average according to Track Data, suggesting non-directional price movement. Financial stock volatilities are elevated, suggesting continued sharp price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Filed under: International markets, Newsletters, Stocks to Buy, Green Stocks

Jim Stack is well known for his “safety-first” approach to money management, focusing on a balance between risk and reward. In his InvesTech market Analyst, he notes, “We now see a window of opportunity in Waters (NYSE: WAT).

Here, Bruce Morison, consultant for Stack Financial Management, explains, “In a market overreaction to a weaker-than-expected fourth quarter, an opportunity has been created to invest in this high-quality company at an attractive valuation level.

“The stock dropped 20% when the company reported earnings that were $0.08 shy of the $1.06 estimate that Wall Street was forecasting. The shortfall was primarily a result of a higher-than-expected tax rate for 2007 and weaker sales in Japan.

“The Japan results reflected a change in government regulations for water testing. Our concern over this event is limited given that Japan accounts for less than 10% of the Waters’ sales and is not a key growth market for the firm.

“A quick recap of the company … Waters Corporation is a medium sized company based in Milford, Massachusetts which designs, manufactures, and services high performance liquid chromatography (HPLC) and mass spectrometry (MS) instrument systems.

Continue reading Waters (WAT): An ‘environmental’ investment

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Filed under: International markets, Newsletters, Stocks to Buy, Green Stocks

Jim Stack is well known for his “safety-first” approach to money management, focusing on a balance between risk and reward. In his InvesTech market Analyst, he notes, “We now see a window of opportunity in Waters (NYSE: WAT).

Here, Bruce Morison, consultant for Stack Financial Management, explains, “In a market overreaction to a weaker-than-expected fourth quarter, an opportunity has been created to invest in this high-quality company at an attractive valuation level.

“The stock dropped 20% when the company reported earnings that were $0.08 shy of the $1.06 estimate that Wall Street was forecasting. The shortfall was primarily a result of a higher-than-expected tax rate for 2007 and weaker sales in Japan.

“The Japan results reflected a change in government regulations for water testing. Our concern over this event is limited given that Japan accounts for less than 10% of the Waters’ sales and is not a key growth market for the firm.

“A quick recap of the company … Waters Corporation is a medium sized company based in Milford, Massachusetts which designs, manufactures, and services high performance liquid chromatography (HPLC) and mass spectrometry (MS) instrument systems.

Continue reading Waters (WAT): An ‘environmental’ investment

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