...Can the Market Add and Subtract? Mispricing in Tech Stock Carve-outs Owen A. Lamont and Richard H. Thaler University of Chicago and National Bureau of Economic Research Recent equity carve-outs in U.S. technology stocks appear to violate a basic premise of financial theory: identical assets have identical prices. In our 1998–2000 sample, holders of a share of company A are expected to receive x shares of company B, but the price of A is less than x times the price of B. A prominent example involves 3Com and Palm. Arbitrage does not eliminate this blatant mispricing due to short-sale constraints, so that B is overpriced but expensive or impossible to sell short. Evidence from options prices shows that shorting costs are extremely high, eliminating exploitable arbitrage opportunities. I. Introduction There are two important implications of the efficient market hypothesis. The first is that it is not easy to earn excess returns. The second is that prices are “correct” in the sense that prices reflect fundamental value. This latter implication is, in many ways, more important than the first. Do asset markets offer rational signals to the economy about where to We thank John Cochrane, Douglas Diamond, Merle Erickson, Lou Harrison, J. B. Heaton, Ravi Jagannathan, Arvind Krishnamurthy, Mark Mitchell, Todd Pulvino, Tuomo Vuolteenaho, an anonymous referee, and seminar participants at the American Finance Association, Harvard Business School, the National Bureau of Economic...
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...Justin Goldberg 10/22/14 Case: Palm Towers Introduction: Basis of the case is… This case is used to solve the problem of determining how much this company (the National Tower Company) should bid for the Palm Tower, if anything at all. Contrary to many of the other cases, this case is not a case of make or break. Alternatively, this is clearly a situation of a want and not a need, as CATO is mentioned nowhere here. It becomes evident from the beginning of the case that this is definitely a tower that comes with an abundance of value. In fact, the majority of working on this case is basically a forecast showing how much profit this investment could potentially provide. We would recommend just by previewing the case a bit that a bid should be made that is near the likely competitive forecast value for there are a few other rival companies that are very successful at the moment and will likely bid as well. The industry for these towers right now is a very competitive one as previously mentioned, this is because across the globe there are 6 billion cellular users who most of are in the process of upgrading from either 2g to 3g or 3g to 4g/LTE. This is useful information to keep in mind for the case because we try to forecast growth for this tower, which is currently sitting at 17% for a year-by-year basis, which is quite high compared to most other industrial growth averages. Unfortunately, while these major cellular companies are bringing in a majority share of the rent, numerically...
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...telecommunications industry. The Telecommunications Deregulation Act of 1996 was passed to break up the monopoly held by AT&T and to promote competition and lower prices benefitting consumers. In less than 20 years, the telecommunications industry stands on the brink of yet another monopolization by the biggest names in the business. Sprint (who purchased Centel and then Nextel) AT&T (who bought former SBC, BellSouth and Cingular) and Verizon are the big players in the telecommunications industry today, not only in the soon to be obsolete land-line business, but also in cellular communication, broadband, and digital media markets providing services such as digital cable television and on-demand movies. What technological condition has caused this? In a word; innovation. Consumer demand for more convenient ways to communicate with one another, cell phones, reliable networks, instant communications, smaller devices providing bigger services…the list goes on and on. We want more, better, faster…oh yeah, and one more thing…we want it to be affordable. In Mark Gimein’s essay in the July 20, 2006, edition of Business Week titled “The Phone Companies Still Don’t Get It: they block competition and charge too much. You call this a communications revolution?” he wrote: “One way in which these companies are very different from the old phone monopoly is that while the original AT&T...
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...Palm, Inc. Case Analysis (The title of your paper) Karen Smith (Your name) BUSN412 Business Policy (Course name and number) January 15, 2008 (Date of submission) CASE ANALYSIS PALM, INC. COMPANY NAME: Palm, Inc. INDUSTRY: Technology Palm, Inc. COMPANY WEBSITE: (www.palm.org) COMPANY BACKGROUND: Jeff Hawkins founded Palm Computing Inc, a hand-held computer business, in 1992 which has since changed names (Yoffie & Kwak, 2001). In 1999 it changed to Palm Inc (Yahoo Finance, 2006). The case study concentrated on Jeff Hawkins, the founder of Palm, and Donna Dubinsky the former CEO of the company. These two left Palm in 1998 and founded a company called Handspring, the only company as of 2001 to take a meaningful share of the market away from Palm (Yoffie, 2001). Currently the CEO at Palm, Inc is Edward T. Colligan. For the period ending May 31, 2006, Palm had sales of $1.578 billion and a net income in excess of $336 million (Yahoo Finance, 2006). This is a significant increase over the previous two years. SWOT ANALYSIS: Strengths: The biggest strength that the case study focused on was strategy. Palm employed a judo strategy starting with the “puppy-dog ploy” (Yoffie, 2001, p. 56). This strategy allowed Palm to stay in business and stay undetected as a threat to their competition, especially Microsoft, for quite some time. Yoffie (2001) stated that strength of Palm was their “tightly integrated software and hardware design” (p. 59). Because they were so integrated...
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...Related links Share Share on deliciousShare on googleShare on twitterShare on diggShare on citeulikeMore Sharing ServicesMore More Sharing ServicesMore Permalink Brazilian Journal of Chemical Engineering On-line version ISSN 0104-6632 Braz. J. Chem. Eng. vol.29 no.3 São Paulo July/Sept. 2012 http://dx.doi.org/10.1590/S0104-66322012000300003 BIOPROCESS ENGINEERING Study on fermentation conditions of palm juice vinegar by response surface methodology and development of a kinetic model S. Ghosh; R. Chakraborty; G. Chatterjee; U. Raychaudhuri* Centre for Medicinal Food and Applied Nutrition, Department of Food Technology and Biochemical Engineering, Fax: 91-033-24146822, Jadavpur University, Kolkata, 700032, India. E-mail: utpal31@hotmail.com ABSTRACT Natural vinegar is one of the fermented products which has some potentiality with respect to a nutraceutical standpoint. The present study is an optimization of the fermentation conditions for palm juice vinegar production from palm juice (Borassus flabellifer) wine, this biochemical process being aided by Acetobacter aceti (NCIM 2251). The physical parameters of the fermentation conditions such as temperature, pH, and time...
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...COMPONENT AND PROCESS FLOW OF PALM OIL MILL CHE RAHMAT CHE MAT UNIT PENGILANGAN & PEMPROSESAN BAHAGIAN KEJURUTERAAN & PEMPROSESAN PALM OIL MILL RAW MATERIAL FRESH FRUIT BUNCH (1 Tonne) MAIN PRODUCTS CRUDE PALM OIL (20 – 22 %) BY-PRODUCTS PALM KERNEL (5 -6 %) EMPTY FRUIT BUNCH (20 – 22 %) FIBRE (12 – 14 %) SHELL (5 – 6 %) POME (60 – 65 %) BOILER ASH Process Flow Palm Oil Mill FFB LORRY FRESH FRUIT BUNCH (FFB) STRIPPER EMPTY BUNCH HOPPER CAGE STERILISER TIPPER FFB HOPPER Fruitlets FRUIT ELEVATOR Fibre DIGESTER FIBRE CYCLONE SCREW PRESS Press Cake SLUDGE TANK 1 DEPERICATER NUT POLISHING DRUM CLARIFIER BOILER Press Liqour SAND TRAP TANK NUT SILO DESANDER Standby usage SAND SLUDGE TANK 2 PUMP PUMP CRUDE OIL TUNK VIBRATING SCREEN MESH DESTONER WET KERNEL BANKER STONES Recycle Oil SLUDGE SEPARATOR PRODUCTION OIL TANK (CPO) ROLEK NUT CRACKER ROTARY BRUSH STRAINER FATS OIL TANK WINNOWING COLUMNS PURE OIL TANK PUMP VACUUM DRYER CLAY BATH Wet Shells DISPOSAL Wet Kernel KERNEL TRAY DRYER KERNEL SILO SAND SLUDGE PIT EFFLUENT TANK PURIFIER HOLDING TANK PUMP Project Planning 3 yrs before commissioning.. Submit all applications to the relevant authorities. Some of them are: MPOB - license DOE – effluent disposal PWD – access road Drainage & Irrigation Dept - river water Health dept – housing/ sanitation TNB – for power generation Mill Construction • Simple guide...
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...by the client has won Toyota Company great brand name through the word of mouth which turns out to be a company’s great asset (Muffe & Criofers, 2004). The Toyota Company specializes in building the Stalwart and other reliable vehicles but the car that won it great fame was the Toyota Corolla. Most clients who have opted to buy new vehicles mentioned that they previously owned a Toyota Corolla once (Palm, 2001). They mention reasons such as few cases in which one had to change oil, a tidy and rodent free interior, comfortable, easy pay and efficient in fuel consumption (Palm, 2001). Toyota Corolla effectively competes with other brands from other companies. Some of these brands include FOCUS from the Ford Company and the JETTA brand. A good example of a case in which the Toyota company competes well above the FOCUS and the JETTA is the fuel consumption rate in which the Toyota Corolla consumes fuel at a rate of 68.9%.In contrast, the FOCUS consumes fuel at a rate of 74.2% while the JETTA at 70.5%.The consumption rate previously mentioned is measured in miles per gallon (MPG) (Palm, 2001). The three vehicle brands are equipped with 16’’Alloys in the wheels, but consumers prefer using Toyota Corolla since it is equipped with extra features as compared to the FOCUS and the JETTA. A Toyota Corolla has seven airbags as compared to the other two band which have six airbags (Toyota Company, 2002). It has a parking aid camera that helps the user see the rear and the front while parking...
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...areas with 67,763 hectares, followed by Sulu with 66,902 hectares, then the province of Maguindanao with 63,122 hectares, Lanao del Sur with 55,150 hectares and Tawi-Tawi with 40,056 hectares (PCA-BAS). II. PRODUCT/ COMMODITY DESCRIPTION Botanically speaking, a coconut (cocos nucifera) is a fibrous one-seeded drupe, also known as a dry drupe. However, when using loose definitions, the coconut can be all three: a fruit, a nut, and a seed. The term coconut pertains to the fruit while the tree is called a coconut palm. It belongs to the Arecaceae palm family and can grow up to 6 meters tall. Called the "tree of life" in the Philippines, all parts of the palm has uses -nothing is wasted even at the end of its fruit bearing years.. As a result, coconuts can produce drink, fiber, food, fuel, utensils, musical instruments, building material and many more. The wonderful fruit of the coconut palm is rich in specific fats that have incredible health benefits. It boosts immunity, kills...
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...General Business Environment (Monetary and Fiscal Policies) THE INFLUENCES OF BI RATES AND EXPORT TAXES ON INDONESIAN PALM OIL INDUSTRY Prof. Wihana Kirana Jaya, M.Soc.Sc., Ph.D. by: Nanang Suko Sadono 13/361118/PEK/19272 Batch 63 International MAGISTER OF MANAGEMENT UNIVERSITAS GADJAH MADA YOGYAKARTA 2014 THE INFLUENCES OF BI RATES AND EXPORT TAXES ON INDONESIAN PALM OIL INDUSTRY 1. INTRODUCTION Indonesia is the biggest producer of Crude Palm Oil (CPO) in the world which produced more than 25 million tons in 2012 and more than 200 trillion rupiahs in foreign exchange. The development of this industry, therefore, is important for the development of economy in Indonesia, as one tool to deal with problems faced such as poverty. This industry is also crucial in supporting the government in anticipating crisis of energy in the future due to the decreasing number of gas and oil over time. The increasing needs of renewable energy as the substitute of petroleum has also driven the demand of pam oil in international market. This high demand has led the price of palm oil in international market become higher. The high international price then persuade domestic producers to market their products to other countries, and this is a logic consequence since the companies as business entities always want to maximize their profit. The problem arise when all companies are forgetting the domestic market. Cooking oil, which is the end product of CPO, can be said...
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...HTC’s CEO has asked you to help him by preparing an analysis that addresses the following: 1. Identifies and analyzes the industry and competitive environment of the mobile phone industry based on information contained in the case: HTC Corp. in 2009 including key industry and environmental trends, competitive and structural characteristics of the mobile phone industry. 2. Your assessment of the key challenges HTC faces in trying to achieve a sustainable model and long-term success in the industry? 3. Your assessment of the competitive and strategic position of HTC Corp. at the time of the case information. 4. Your assessment/identification of any major changes in the competitive situation for HTC from the perspective of the fall of 2011 that he should bring to the board’s attention based on current information available publicly. Question 1) Identifies and analyzes the industry and competitive environment of the mobile phone industry based on information contained in the case: HTC Corp. in 2009 including key industry and environmental trends, competitive and structural characteristics of the mobile phone industry. Answer 1) HTC is basically a very young high tech company, initially dealt with PDA’s and computers. But in the recent years HTC has emerged as a smartphone firm which has received strong appreciation for the design and high tech products. It has been known for interoperate the Windows OS into the mobile phone devices which sparked the revolution...
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...MARKETING ENGINEERING FOR EXCEL • CASE • VERSION 1.0.5 Case Positioning the BlackBerry Pearl by Mahima Hada & Arvind Rangaswamy 1. Before beginning any case, students should familiarize themselves with the model being used. Marketing Engineering for Excel comes with tutorials that demonstrate the capability of each model. The tutorial can be found under each model within the ME►XL menu after starting Excel. These tutorials are designed to work with the OfficeStar examples, which are located in the My Marketing Engineering directory, usually installed in My Documents during software installation. The data required for this case are located in one file in the My Marketing Engineering directory (usually located within My Documents): BlackBerry Pearl (Positioning).xls RIM Introduces the BlackBerry Pearl In September 2006, Research In Motion (RIM) introduced an extension to its best-selling BlackBerry phone, the “BlackBerry Pearl,” with the hope that it could move the original BlackBerry beyond the boardroom and executive suites and into more consumers’ hands. It is the first BlackBerry that comes equipped with the usual features of high-end smartphones, as well as a camera and media playback, yet still provides all the e-mail functions that made Blackberry a hit among executives. Background Research In Motion (RIM) launched the BlackBerry wireless, handheld device in 1999. The BlackBerry heralded the launch of smartphones for business users by supporting...
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...The Distribution of Value in the Mobile Phone Supply Chain Jason Dedrick, Kenneth L. Kraemer, Greg Linden* Personal Computing Industry Center (PCIC) University of California, Irvine 4100 Calit2 Building 325, Suite 4300 Irvine, California 92697-4650 October 2010 *Authors are listed alphabetically. The Personal Computing Industry Center is supported by grants from the Alfred P. Sloan Foundation, the U.S. National Science Foundation, industry sponsors, and University of California, Irvine (California Institute of Information Technology and Telecommunications, The Paul Merage School of Business, and the Vice Chancellor for Research). Online at http://pcic.merage.uci.edu. The Distribution of Value in the Mobile Phone Supply Chain Jason Dedrick, Kenneth L. Kraemer, Greg Linden* Personal Computing Industry Center, UC Irvine 4100 Calit2 Blgd. 325, Suite 4300 Irvine, CA 92697-4650 October 2010 Abstract The supply chains of the mobile phone industry span national and firm boundaries. To analyze how value is distributed among the participants, we apply a novel framework for analysis based on financial measures of value capture to three phone models introduced from 2004 to 2008. We find that carriers capture the greatest value (in terms of gross profit) from each handset, followed closely by handset makers, with suppliers a distant third. However, the situation is reversed in terms of operating profit. Carriers shoulder the burden of network installation...
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...Executive Summary: HTC was the first Taiwanese manufactuer company which had started its operations through manufacturing under other large operations. HTC was founded by two great engineer in Taoyuan country, Taiwan. The first vision of HTC was to introduce Windows CE, anew windows based platform that could operate on smaller PC devices. HTC was commissioned to be an original deaign manufacturer (ODM), in charge of engeering and designing the product for Compaq, which will sell product under Compaq’s brand names. HTC operated two distinct segments- ODM business and its mobile operator business. Wanting to build a direct relationship with the customer, HTC invented in a complimentary business. Yet creating a brand bore significant risks. Own brand sales means HTC would now directly take on inventory, marketing and support as well as warranty risks. HTC also started selling products in China. The closed nature of the U.S. market posed more challenges for HTC. Its success in the U.S. would depend on the operators’ willingness to subsidize its products and offer co-marketing support. Introductrion: HTC had generated a buzz for revealing two new handsets, as well as surprising the world with the announcement of HTC magic, the second phone that ran on Google’s new mobile platform, Android. Indeed, HTC was gaining more respect as a leading manufacturer of mobile phones. Twelve years ago, the company started out as a relatively obscure Taiwanese firm that made personal digital assistants...
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...PEST AND DISEASES OF PLANTATION CROPS PLP 5003 TITLE: SUSTAINABLE DEVELOPMENT OF OIL PALM AS THE MAJOR PLANTATION CROP IN MALAYSIA GROUP 7: MOHD HARLIZAN BIN MOHAMAD DARUS GS32853 ADIBAH NOOR BINTI KHAIRUDDIN GS36223 SHAHFAHZIELAH BINTI SHAMRAN GS36066 SITI NOR ANIZAM BINTI ZAMRI GS38320 1.0 INTRODUCTION The oil palm, Elaeis guineensis was brought over to the Bogor Botanic Garden in the Island of Jawa, Indonesia from West Africa in 1848 (Polunin, 2004). It has been planted in almost 43 countries in tropical regions of Southeast Asia, Africa and South America. It was planted in Malaysia in 1896 much later after Indonesia (Yacob, 2005). Now, this crop has become major plantation crop in Malaysia contribute to palm oil industry. Palm oil industry is one of the most traded agriculture commodities in the world. In Malaysia, this industry has been an important agriculture in the economy for the past three decades. Malaysia is one of the major producer of palm oil in the world which contribute17.6 million tonnes respectively in 2009. Recently, concern over the environment impact people around the world keeps on talking about global warming, greenhouses effect, deforestation and other environment impact caused by human activities or improper development. Government and private sectors are being urged to commence all agriculture activities include oil palm within the concept of sustainable development. Therefore, sustainability becomes the main word uses...
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...CHAPTER 9 Behavioural Finance and the Psychology of Investing “The investor’s chief problem, and even his worst enemy, is likely to be himself.” —Benjamin Graham “There are three factors that influence the market: Fear, Greed, and Greed.” —Market folklore Be honest: Do you think of yourself as a better than average driver? If you do, you are not alone. About 80 percent of the people who are asked this question will say yes. Evidently, we tend to overestimate our abilities behind the wheel. Is the same thing true when it comes to making investment decisions? You will probably not be surprised when we say that human beings sometimes make errors in judgment. How these errors, and other aspects of human behaviour, affect investors and asset prices falls under the general heading of “behavioural finance.” In the first part of this chapter, our goal is to acquaint you with some common types of mistakes investors make and their financial implications. As you will see, researchers have identified a wide variety of potentially damaging behaviours. In the second part of the chapter, we describe a trading strategy known as “technical analysis.” Some investors use technical analysis as a tool to try to exploit patterns in prices. These patterns are thought to exist (by advocates of technical analysis) because of predictable behaviour by investors. Chapter 9 Behavioural Finance and the Psychology of Investing 273 9.1 Introduction to Behavioural Finance Sooner...
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