Nugget: PPR changes name to Keurig and starts Puma restructuring

From a Reuters article on June 18, 2013: But beyond the name change and new logo featuring an owl, Pinault gave few answers to shareholders about the future of Puma or Fnac, the group's CD and book business, which will list on the stock market on Thursday. Pinault called on shareholders to hold on to Fnac … Continue reading Nugget: PPR changes name to Keurig and starts Puma restructuring

Profile: Global Automobile Industry

The Global Automotive Industry consists of all companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. In 2012, more than 84 million vehicles were produced globally by the industry as a whole. The Worlds Biggest Auto Manufacturers The biggest car brands in 2011, in terms of vehicles sold, were … Continue reading Profile: Global Automobile Industry

The Pele Pact and its Dramatic Ending

The origin of the Puma brand goes back to 1948. Rudolph Dassler, the company's founder, had split from a business partnership with his elder brother, Adi Dassler. The name of the business partnership? You guessed it, Adidas. Battle of the Boots The two brothers fought a ruthless war for market share in the global sportswear … Continue reading The Pele Pact and its Dramatic Ending

2 Studies on Spin-offs

What follows are excepts from two academic studies on spin-offs. Spin-offs are special situations whereby a company spins-off an asset in a tax free distribution to its shareholders. Spin-offs are thought to have predictive attribute of outperformance due to structural factors. A spin-off study - Chris Mayer (2005) Spinoff Companies: Four Reasons Companies Spin Off … Continue reading 2 Studies on Spin-offs

Mental Model: Defined benefit pension plans

This is a dossier with resources and material regarding the valuation of defined benefit pension plans. This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Pension Plan Calculator (spreadsheet provided by aliactuary.com) Actuarial Methods and Assumptions used in the Valuation of Retirement Benefits in the EU and other … Continue reading Mental Model: Defined benefit pension plans

Ryan Morris and the Value of the Activist Option

Ryan Morris of Meson Capital has been showing up on my radar frequently over the last six months (often through SumZero). From what I have read, he seems very capable and his write-ups have struck a chord with me. Investment Approach There is something about his approach that makes me think of the old Buffett … Continue reading Ryan Morris and the Value of the Activist Option

The Penman-Nissim model of profitability analysis

  Stephen Penman is a George O. May Professor of Financial Accounting at Columbia Business School. He is the author and co-author of acclaimed financial valuation textbooks, such as Financial Statement Analysis and Security Valuation as well as books aimed at a more general audience, such as Accounting for Growth.  The Penman-Nissim Profitability Framework In 1999, Doron … Continue reading The Penman-Nissim model of profitability analysis

Nugget: Eddy Lampert on Same store sales (SSS)

From the 2005 Letter to shareholders: If we take a simple example of a single store, then a comparison of SSS from year to year is fairly straightforward. If a store does $1 million in sales at a 10% operating margin this year, generating $100,000 in operating profit, and does $1.1 million in sales next … Continue reading Nugget: Eddy Lampert on Same store sales (SSS)