Professor Elam

HP Too Anxious to Make the Autonomy Deal

Friday November 30 2012

Here is the latest on how then CEO Apotheker at HP was too anxious ot make software deal.

Retama Schedules Sale for $22.8 M

Thursday Nov 29 2012

We have noted that the Retama Ractrack in North San Antonio has not only never earned a profit, it has lost over $250 M since its inception. But new olwner Pinnacle Retama Partners LLC will be owned by a Las Vegas owned casino company. Apparently the idea is that racetracks in Texas will lobby the legislature to allow casino type gambling at the track. This in my mind raises the question, well then why bother with the overhead of the horses that just lose money anyway. 

I saw an operaton like this in Hobbs, New Mexico. In somewhat bizzare fashion, the players were seated around a cyber table. There was no real dealer, the dealer was on an electronic screen as were the cards, now that is really trusting technology! At any rate this idea will go to the Texas Racing Commission December 18. Frankly this sounds like a long shot pun intended, to me. 

Breakfast With Strangers.com

Thursday Nov 29 2012

This morning's paper has an interesting story bout a couple on their honeymoon no less, crossing America in a unique fashion. Their site, breakfast with strangers invites folks to audition for a breakfast so that the couple and meet and learn more about them. 

The result is both a blog and a forthcoming book highlighting who they have met. I am beginning a somewhat similar idea in that we will be sitting down with various individuals in San Antonio to relate their experiences in business via You tube interviews. 

So what are you planning, has anyone started a blog about their college experience at TAMUSA?

Gleim Webinar Monday Dec 3 2012

Thursday Nov 29 2012

On Monday, December 3, 2012 at 12:00 pm EST, Gleim will host a CPA Q&A Live Broadcast on our YouTube channel, www.youtube.com/gleimaccounting. Subscribe and tune in for a chance to ask our expert presenters questions about preparing for and passing the CPA exam. We will discuss the Gleim CPA Review System and how it prepares candidates to pass quickly and efficiently. In addition, there will be a raffle and a chance to win great prizes to help you in your journey of passing the CPA exam. Tell your friends, classmates, and colleagues who may also be interested in becoming a CPA.

That would be 11 AM here in San Antonio. 

Fab.com - the Ultimate Novelty Shop

Wed Nov 28 2012

Question: Why would anyone want a crocheted fake beard attached to a hat?

Answer: How could anyone not need this?

I mean is America a great country or what?  I have always believed that a country capable of creating spray on hair knows no limits. Meet fab.com, marketer of novelty items. Fab.com is doing $500,000 a day versus $150,000 a day this time last year. Let your imagination be your guide. 

They have 12,000 ah er ahem products on line. 

 

Sony Panasonic Sharp Lower Debt Ratings

Wednesday Nov 28 2012

SNE PC and Sharp have had their debt ratings lowered to junk or below junk levels. All are suffering from losses in their tv divisions. Samsung from Korea has become a strong competitor. Panasonic has suspended its dividend and announced its biggest loss ever, $9.28 billion. Sharp may be in danger of going out of business.

Japan is not into its third lost decade.

Reading Accounting Reports

Tuesday Nov 27 2012

Globalscape GSB announced three and nine month operating results.

This report is an excellent example of why we study accounting as a business language. GSB took a non cash impairment charge for its investment in notes of an Austin company which took bankruptcy. This regrettable event happened the same week that HP took a write down on Autonomy. Bad news. But cash flow continues to improve for GSB. 

Before HP Autonomy's Red Flags

Tuesday November 27 2012

Here is a lengthy front  page WSJ article on the evidence that Autonomy was cooking the books well before the HP purchase. How did HP miss all this?

There is even a parallel with Enron, the CEO of Autonomy claimed to have 500 software engineers working on various projects but the door to that room led to a broom closet. Enron pulled the same stunt claiming all the folks behind  a glass wall were sophisticated commodity traders on the phone doing deals. In reality they were secretaries and such talking to friends on the phone. 

Auditing requires professional skepticism. Oh, did I mention DeLoitte signed off on this deal?

Warren Buffet is Wrong, Henry Blodgett too

Monday November 26 2012

Warren Buffet thinks it is just peachy keen  to raise taxes even higher on the ten percent who pay 50% of all the income taxes already. He says he would work just as hard. Henrgy Blodgett thinks that is a great idea.

They are both wrong.

Most of the students have not had the privilege of paying a serious amount of money in income tax yet. I suspect you attitude towards taxes will change a bit when you do. Consdier that we have

a commerce dept that produces no commerce

an education depatment that does not educate anyone

an energy department that was created in 1979 to bring energy prices down, gasoline is $3.50 today, what do these people do?

an EPA that continues to spew forth job killing regulations which will keep your gasoline price high by the way

FHA is broke and in need of more money

And we should pay more taxes for more of this?

Consider what the well to do support in this country. Have you been to theMcNay, or the Witte, or the San Antonio Museum of Art?  How about the Tobin Center or the symphony, both of which lack funding as I write. We have a wonderful library system and a famous zoo, both supported by private as well as public funding.

And if  those awful rich were not sending as much to the government, perhaps they would have more left to donate to scholarships for college students.

Feeding the crocodile only means that one defers the time at which he turns on you for his next meal.

How about getting all of us on board to pay something, wtih over 50% paying no income tax, why should they care what the government does, and they don't.

Chinese Education Corruption

Sunday Nov 25 2012

A common feature of dictatorial systems is corruption.  I suspect North Korean 'Officials' live pretty nice lives, not so much for your average North korean though. The link describes the pay up or take what you get Chinese Education system. 

The lack ofa  free market usually produces a a black market.