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- What Top Stocks Foretell (Part 2) - Editor, 3 February 2008 - No Comments yet
- What the Administration Can Teach Business about Stock Value (Part 1) - Editor, 2 February 2008 - No Comments yet
- What the Administration Can Teach Business about Stock Value (Part 2) - Editor, 2 February 2008 - No Comments yet
- The Basel II Solution to Sub-Prime and Related Financial Planning (Part 1) - Editor, 1 February 2008 - No Comments yet
- The Basel II Solution to Sub-Prime and Related Financial Planning (Part 2) - Editor, 1 February 2008 - No Comments yet
What Top Stocks Foretell (Part 1)
Marketing Mix Appraisal for Top Stock Picks
Stock analysis has become a financial matter, though marketing is at least as important in appraising business and management. The Sears infrastructure is not meaningful for today’s consumers unless stores drastically change ambience and server profiles. A catalog must have lower value for consumers with broad-band Internet connections than it did for the pioneering families of early settlers. Another aspect is that consumers in emerging countries such as China and India may value traditional product lines and services of Sears more than its traditional western segments. Is it time for the company to return to the drawing board?
Bureaucrats are often profiled as individuals who are less competent and effective in management terms than executives in corporations that work for profits. The reality is that business management techniques can work regardless of organizations structure and nature. Similarly, just as all managers in a company do not have the same levels of competence, so an administration can also have individual members who work effectively for positive changes. The Homeland Security Department and the Office of Management and Budget have recently introduced major cost-saving measures that all corporations should try and emulate.
What the Administration Can Teach Business about Stock Value (Part 1)
New Cost Effectiveness Pressures on Global Stocks
All companies have enjoyed some degrees of cost protection during the days of tariff barriers and government dominance of certain sectors. These artificial barriers are under persistent attack wherever they have not been destroyed already. Most companies now use scales of economy to win unbeatable cost advantages. Hence, market shares are under constant threats except for the most differentiated goods and services. Cost effectiveness has always been a success driver in any generic business, but these capabilities now threaten entrenched brands as well. It is self-defeating to prevent exhaustive cost audits, because the market and customers abhor system inefficiencies.
The cataclysmic effects of the sub-prime crisis of 2007 need not have happened at all. Since the retirement financial planning of large numbers of families is at stake, and since so many stocks of the financial sector have been disastrously affected, the Basel norms that US banks have declined to implement for years, needs a detailed and public review. Ask groups of people whose financial planning and stock portfolios have been buffeted by the sub-prime crisis, if they are aware of the safeguards provided by the Basel norms. Ask your banker if his or her employer is Basel II compliant. You will quickly discover that banks and regulators have taken unconscionable risks with your money.
The Basel II Solution to Sub-Prime and Related Financial Planning (Part 1)
It does not end there. Banks have sold sub-prime debts to each other. Each of these transactions gave a second set of professional banker personnel, new opportunities to apply Basel norms to what their peers had done. Gross violations of risk management guidelines were overlooked every time bankers traded sub-prime loans. The losers of this round were investors with stocks in the financial sector. There is a strong moral case for investors whose funds have been used to discount sub-prime loans, to be compensated for negligence in observing Basel norms. The US Federal Reserve is party to this mess because it waited all the way until November 2007 before even getting banks to agree to adhere to the Basel II norms.
Recent Videos
- Video: Inside Look: Foreclosures Hit 29-Year High - Friday 5 September 2008, 7:21 pm
- Video: Special Report: Electronic Arts Releases "Spore" - Friday 5 September 2008, 6:45 pm
- Video: Tech Stocks to Watch: Apple, SanDisk, Samsung, Chipmaker Stocks, Nokia - Friday 5 September 2008, 6:38 pm
- Video: Inside Look: Cleaning Up After Gustav - Friday 5 September 2008, 6:22 pm
- Video: Business & the Ballot: How Obama Will Help Job Market - Friday 5 September 2008, 6:13 pm
Recent Articles
- Algorithmic Trading – Driving Competitiveness to New Levels - Editor, Thursday 4 September 2008
- Google’s Chrome Aims for Share of Internet Browser Market - Editor, Wednesday 3 September 2008
- Markets in Financial Instruments Directive - Editor, Tuesday 2 September 2008
- LSE Faces Increasing Competition in Pan-European Market - Editor, Monday 1 September 2008
- When Does a Dead Cat Bounce? - Editor, Friday 29 August 2008
Recent Comments
- 29 April 2008, 03:23 am: By Dhan - Take This Financial Planning Gift Horse...
- 25 April 2008, 12:58 am: By asiaconsult - The ‘No Comment’ Clue to Mortgage...
- 24 April 2008, 02:21 am: By Investa - How Your Financial Planning Can Benefit...
- 23 April 2008, 04:56 am: By Mint - A Stock on Which You Can Bank










