Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies.
We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month.
Our highly skilled team provides full administrative support - including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more!
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Wednesday, August 17, 2011
Welcome to Shaw Capital Management Value of great service... Help grow your business...
Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Based in Baltimore, Maryland. Importing into the tri-state area mostly from the far east such as China, Thailand, Taiwan and South Korea.
For your convenience, we have associate offices in Shanghai, Hong Kong, Taipei and Seoul in S Korea.
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Based in Baltimore, Maryland. Importing into the tri-state area mostly from the far east such as China, Thailand, Taiwan and South Korea.
For your convenience, we have associate offices in Shanghai, Hong Kong, Taipei and Seoul in S Korea.
Wednesday, August 3, 2011
Shaw Capital Working Management News Worldwide: Twitter Tests New Ad Types
http://financial.shaw-capitalworkingmanagement.com/2011/07/shaw-capital-working-management-news-worldwide-twitter-tests-new-ad-types/
http://online.wsj.com/article/SB10001424053111904800304576474100156000380.html
JULY 29, 2011
BY AMIR EFRATI
To make good on its ballooning multibillion-dollar valuation, online-messaging service Twitter Inc. must pass the Sephora test.
Initially, Sephora, the makeup retailer that is part of luxury-brand-giant LVMH, didn’t allocate any funds for Twitter’s young advertising system for this year. But in February, it bought more than 15 Twitter ads to promote a contest for customers in which it gave away products to fans of the Fox show “Glee.” According to its analysis, the response rate from the Twitter ads beat its projections by 700%.
So Cathy Choi, Sephora’s social media director, sought additional money—she declines to disclose how much—to try out Twitter’s newest ad offering, which rolled out Thursday. Called “promoted tweets to followers,” it lets brands and charities pay to make sure that their followers see messages they send out on Twitter even if the followers don’t log on to the service until hours after the messages are sent.
It’s the latest move by the San Francisco-based company, which lets people broadcast messages of up to 140 characters known as “tweets,” to build up its fledgling online advertising business. Despite the relatively nascent nature of that business, investors have pumped up the valuation of the closely held company amid a new Silicon Valley boom. Twitter is currently raising a new round of financing that would value the company at around $8 billion, according to a person familiar with the matter.
Twitter, which launched its ad system in April 2010, is on pace to generate $150 million in ad revenue this year, research firm eMarketer has estimated. The microblogging service is home to thousands of brands, from Coca-Cola Co. to local bakeries, that work to gain “followers,” or people who track the brands’ tweets about new products and promotions. About 20% of Twitter users “follow” a brand, according to a survey by marketing firm ExactTarget.
Twitter, which has more than 200 million registered accounts, said its new ad offering is being rolled out slowly and only for a couple of dozen advertisers, including Microsoft Corp. and Starbucks Corp. Twitter advertisers pay a fee, determined by an automated auction, only if a user selects their ad, including clicking on a link or “retweeting” the message to the user’s followers.
Overall, Twitter sales chief Adam Bain said the company has opened its ad system to more than 1,000 advertisers, including many small businesses, and about 80% have made more than one purchase. He added that many tweets by such brands as Walt Disney Co. have become viral hits on Twitter after users retweeted the ad.
Twitter began rolling out ad offerings last year using a format called “promoted tweets” that lets marketers place bids to show ads to Twitter users who perform searches on the Twitter.com home page. It later added “promoted trends,” which are ads that cost $120,000 a day and appear alongside each user’s account and on Twitter.com’s home page, among other ad offerings.
Not all of Twitter’s ad features have succeeded. An experiment called the “quick bar,” which Twitter introduced in March to users of its iPhone application, showed ads and hot topics on the service, but it was removed after an uproar from some users who felt it was too intrusive.
“We’re still testing it to figure out what works, but Twitter is one of the more promising channels for us going forward,” said Abby Lunardini, vice president of corporate communications for the airline Virgin America, which has paid for 65 different Twitter ads since last year. She declined to disclose how much the company spent.
Digits
Alison Moore, senior vice president of digital platforms for Home Box Office Inc., said she expects Twitter’s latest ad offering to be a “very focused way for us to show the most relevant brand information to the people who raised their hands and want it most.”
HBO expects to use the ads to promote its online video service HBO GO and merchandise for shows such as “True Blood,” which has more than 264,000 followers on Twitter, she said.
Twitter will also launch a “self-serve” ad system later this year so that anyone can buy an ad, and it is working on several other potential ad products, people familiar with the matter have said. Twitter Chief Executive Dick Costolo said earlier this month that Twitter might let marketers sell items directly on Twitter.
http://online.wsj.com/article/SB10001424053111904800304576474100156000380.html
JULY 29, 2011
BY AMIR EFRATI
To make good on its ballooning multibillion-dollar valuation, online-messaging service Twitter Inc. must pass the Sephora test.
Initially, Sephora, the makeup retailer that is part of luxury-brand-giant LVMH, didn’t allocate any funds for Twitter’s young advertising system for this year. But in February, it bought more than 15 Twitter ads to promote a contest for customers in which it gave away products to fans of the Fox show “Glee.” According to its analysis, the response rate from the Twitter ads beat its projections by 700%.
So Cathy Choi, Sephora’s social media director, sought additional money—she declines to disclose how much—to try out Twitter’s newest ad offering, which rolled out Thursday. Called “promoted tweets to followers,” it lets brands and charities pay to make sure that their followers see messages they send out on Twitter even if the followers don’t log on to the service until hours after the messages are sent.
It’s the latest move by the San Francisco-based company, which lets people broadcast messages of up to 140 characters known as “tweets,” to build up its fledgling online advertising business. Despite the relatively nascent nature of that business, investors have pumped up the valuation of the closely held company amid a new Silicon Valley boom. Twitter is currently raising a new round of financing that would value the company at around $8 billion, according to a person familiar with the matter.
Twitter, which launched its ad system in April 2010, is on pace to generate $150 million in ad revenue this year, research firm eMarketer has estimated. The microblogging service is home to thousands of brands, from Coca-Cola Co. to local bakeries, that work to gain “followers,” or people who track the brands’ tweets about new products and promotions. About 20% of Twitter users “follow” a brand, according to a survey by marketing firm ExactTarget.
Twitter, which has more than 200 million registered accounts, said its new ad offering is being rolled out slowly and only for a couple of dozen advertisers, including Microsoft Corp. and Starbucks Corp. Twitter advertisers pay a fee, determined by an automated auction, only if a user selects their ad, including clicking on a link or “retweeting” the message to the user’s followers.
Overall, Twitter sales chief Adam Bain said the company has opened its ad system to more than 1,000 advertisers, including many small businesses, and about 80% have made more than one purchase. He added that many tweets by such brands as Walt Disney Co. have become viral hits on Twitter after users retweeted the ad.
Twitter began rolling out ad offerings last year using a format called “promoted tweets” that lets marketers place bids to show ads to Twitter users who perform searches on the Twitter.com home page. It later added “promoted trends,” which are ads that cost $120,000 a day and appear alongside each user’s account and on Twitter.com’s home page, among other ad offerings.
Not all of Twitter’s ad features have succeeded. An experiment called the “quick bar,” which Twitter introduced in March to users of its iPhone application, showed ads and hot topics on the service, but it was removed after an uproar from some users who felt it was too intrusive.
“We’re still testing it to figure out what works, but Twitter is one of the more promising channels for us going forward,” said Abby Lunardini, vice president of corporate communications for the airline Virgin America, which has paid for 65 different Twitter ads since last year. She declined to disclose how much the company spent.
Digits
Alison Moore, senior vice president of digital platforms for Home Box Office Inc., said she expects Twitter’s latest ad offering to be a “very focused way for us to show the most relevant brand information to the people who raised their hands and want it most.”
HBO expects to use the ads to promote its online video service HBO GO and merchandise for shows such as “True Blood,” which has more than 264,000 followers on Twitter, she said.
Twitter will also launch a “self-serve” ad system later this year so that anyone can buy an ad, and it is working on several other potential ad products, people familiar with the matter have said. Twitter Chief Executive Dick Costolo said earlier this month that Twitter might let marketers sell items directly on Twitter.
Monday, August 1, 2011
Shaw Capital Working Management Tips & Articles: Google’s Eric Schmidt Set For Sept. 21 Senate Antitrust Hearing
http://shaw-capitalworkingmanagement.com/2011/07/29/shaw-capital-working-management-tips-articles-google%E2%80%99s-eric-schmidt-set-for-sept-21-senate-antitrust-hearing/
JUL29
Rate this
http://paidcontent.org/article/419-googles-eric-schmidt-set-for-sept.-21-senate-antitrust-hearing/
By Sam Gustin
Jul 28, 2011 7:03 PM ET
Google Executive Chairman Eric Schmidt will testify before lawmakers probing the company’s market power on Sept. 21, the search giant confirmed on Thursday. After initially declining to appear, the former CEO received a not-so-subtle subpoena threat from the committee and rethought his position. The hearing, which will focus on charges that Google (NSDQ: GOOG) uses its market power to favor its own services and hinder rivals, comes as the Federal Trade Commission ramps up its investigation into the company’s dominance of the web search business.
Last month, Sen. Herb Kohl, the Wisconsin Democrat who chairs the antitrust subcommittee, and Sen. Mike Lee, the Utah Republican and ranking member, requested that either Schmidt or current Google CEO Larry Page testify. For its part, the company offered to send its chief legal officer, David Drummond, but Kohl and Lee insisted, warnings that lawmakers “would very much prefer to work this out by agreement rather than needing to resort to more formal procedures.”
See more of our latest Travel coverage
or add an alert for future coverage of Travel.
The hearing title: The Power of Google: Serving Consumers or Threatening Competition?
Google’s competitors have long been pushing for greater government scrutiny of the search giant’s market power. A group of them have created an organization called FairSearch.org, which seeks to highlight Google’s abuses. Among the group’s members: Google’s search rival Microsoft (NSDQ: MSFT), as well as travel sites Expedia, Travelocity, and Hotwire, which had opposed the search giant’s purchase of ITA Software, a provider of back-end services for travel search engines.
When that deal was approved, representatives of the travel companies predicted greater scrutiny for Google.
Not surprisingly, FairSearch.org praised Kohl and Lee for this effort.
Proponents of greater regulation of Google’s search engine tend to argue that because the service is so ubiquitous, it has become something like a public utility. Or they claim that Google must be totally “objective” in its search results, so as not to violate so-called “search neutrality.”
Google’s supporters call such arguments nonsense and say that “search neutrality” is a fantasy. Google may be publicly traded but it is still a private company, they argue. It can place any information it wishes on its website. It is under no obligation whatsoever to even include its competitors on its web page. Furthermore, web search is inherently subjective. Google’s search rankings are judgements produced by its proprietary algorithm, which the company tweaks constantly.
At the hearing, Schmidt likely will point out that web users are free to choose any search engine they wish—the alternatives are just a click away.
JUL29
Rate this
http://paidcontent.org/article/419-googles-eric-schmidt-set-for-sept.-21-senate-antitrust-hearing/
By Sam Gustin
Jul 28, 2011 7:03 PM ET
Google Executive Chairman Eric Schmidt will testify before lawmakers probing the company’s market power on Sept. 21, the search giant confirmed on Thursday. After initially declining to appear, the former CEO received a not-so-subtle subpoena threat from the committee and rethought his position. The hearing, which will focus on charges that Google (NSDQ: GOOG) uses its market power to favor its own services and hinder rivals, comes as the Federal Trade Commission ramps up its investigation into the company’s dominance of the web search business.
Last month, Sen. Herb Kohl, the Wisconsin Democrat who chairs the antitrust subcommittee, and Sen. Mike Lee, the Utah Republican and ranking member, requested that either Schmidt or current Google CEO Larry Page testify. For its part, the company offered to send its chief legal officer, David Drummond, but Kohl and Lee insisted, warnings that lawmakers “would very much prefer to work this out by agreement rather than needing to resort to more formal procedures.”
See more of our latest Travel coverage
or add an alert for future coverage of Travel.
The hearing title: The Power of Google: Serving Consumers or Threatening Competition?
Google’s competitors have long been pushing for greater government scrutiny of the search giant’s market power. A group of them have created an organization called FairSearch.org, which seeks to highlight Google’s abuses. Among the group’s members: Google’s search rival Microsoft (NSDQ: MSFT), as well as travel sites Expedia, Travelocity, and Hotwire, which had opposed the search giant’s purchase of ITA Software, a provider of back-end services for travel search engines.
When that deal was approved, representatives of the travel companies predicted greater scrutiny for Google.
Not surprisingly, FairSearch.org praised Kohl and Lee for this effort.
Proponents of greater regulation of Google’s search engine tend to argue that because the service is so ubiquitous, it has become something like a public utility. Or they claim that Google must be totally “objective” in its search results, so as not to violate so-called “search neutrality.”
Google’s supporters call such arguments nonsense and say that “search neutrality” is a fantasy. Google may be publicly traded but it is still a private company, they argue. It can place any information it wishes on its website. It is under no obligation whatsoever to even include its competitors on its web page. Furthermore, web search is inherently subjective. Google’s search rankings are judgements produced by its proprietary algorithm, which the company tweaks constantly.
At the hearing, Schmidt likely will point out that web users are free to choose any search engine they wish—the alternatives are just a click away.
Thursday, July 28, 2011
Shaw Capital Working Management Tips & Articles: Segarra shares city priorities with governor
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-segarra-shares-city-priorities-with-governor/
MAR10
http://www.norwalkplus.com/nwk/information/nwsnwk/publish/Local_2/Segarra-shares-city-priorities-with-governor_np_12110.shtml
Mar 9, 2011 – 7:58 AM
By Hartford Mayor Pedro Segarra’s office
In a letter sent to Governor Dannel P. Malloy on Tuesday, Hartford Mayor Pedro E. Segarra outlined the City’s vision, priorities and initiatives that will help grow the local and regional economy and serve to substantially improve Connecticut’s Capital City. In his letter, Mayor Segarra referenced the Governor’s background and achievements as a former city mayor as part of his core knowledge and understanding that urban centers will play a critical role in turning around the state’s economy.
“Hartford’s success is Connecticut’s success. By moving forward on my immediate and long-term strategies, we will make Hartford the center of medical research and technology, continue to make our students more competitive in the global job market, and further establish Hartford as the state’s and region’s Arts center. Connecticut’s Capital City is perfectly positioned to help small and large businesses create jobs, enhance the City’s and the State’s quality of life, and become a choice tourist destination. My goal is to continue making Hartford a great place to live, work, play and raise a family,” said Mayor Segarra.
In addition to defining a long-term vision for the City, there are several capital and infrastructure projects that the Mayor brought to the Governor’s attention including:
1. Swift Factory: Through strong partnerships, a vacant factory will be turned into a vibrant multipurpose facility and rejuvenate a North End neighborhood;
2. Coltsville: Continue to work with the Congressional delegation to have this area designated as a national park and securing federal and/or state funding for façade improvements;
3. XL Center: The current management contract runs out in 2013, at which point the City will assume responsibility of this facility. The Mayor and his administration are in the process of laying the groundwork to make this a more vibrant and desirable venue for sports and entertainment events;
4. iQuilt: This innovative initiative crafted by The Bushnell, The Greater Hartford Arts Council, and the City of Hartford intends to knit together our wonderful social and cultural centers and enhance pedestrian routes to promote economic growth and redevelopment in the Capitol district;
5. 101 Pearl Street: The Mayor and city officials are actively pursuing creative options that would benefit the Downtown area as well as neighboring tenants;
6. Albany Avenue/Route 44: A state highway and main artery in the North End, working in conjunction with MDC to aggressively pursue funding for streetscape that would prove critical to community vibrancy;
7. Capitol Avenue: Through the Greening of America’s Capitals grant received from EPA, we are poised to work with appropriate state officials to transform areas surrounding the State Capitol to add green space, more appealing sightlines, and increased sustainability;
8. New Britain to Hartford Busway: This project will improve travel to and from the city, create about 4,000 jobs, and represent the state’s first rapid-transit system. While the City is still firm in its position to not disrupt operations at Aetna and The Hartford, this project would revitalize Asylum Hill neighborhood and reduce traffic on I-84 and I-91;
9. Lyric Theatre: A historic theatre in the Frog Hollow neighborhood that the Mayor has targeted for restoration and the future home of the Puerto Rican Cultural Center.
Other long-range projects mentioned include the Hartford Viaduct and high-speed rail. Mayor Segarra emphasized that through partnerships and a collaborative approach at the community, city, state, and federal levels, these projects will improve the quality of life for residents throughout the city, address environmental concerns, and provide employment opportunities for years to come.
MAR10
http://www.norwalkplus.com/nwk/information/nwsnwk/publish/Local_2/Segarra-shares-city-priorities-with-governor_np_12110.shtml
Mar 9, 2011 – 7:58 AM
By Hartford Mayor Pedro Segarra’s office
In a letter sent to Governor Dannel P. Malloy on Tuesday, Hartford Mayor Pedro E. Segarra outlined the City’s vision, priorities and initiatives that will help grow the local and regional economy and serve to substantially improve Connecticut’s Capital City. In his letter, Mayor Segarra referenced the Governor’s background and achievements as a former city mayor as part of his core knowledge and understanding that urban centers will play a critical role in turning around the state’s economy.
“Hartford’s success is Connecticut’s success. By moving forward on my immediate and long-term strategies, we will make Hartford the center of medical research and technology, continue to make our students more competitive in the global job market, and further establish Hartford as the state’s and region’s Arts center. Connecticut’s Capital City is perfectly positioned to help small and large businesses create jobs, enhance the City’s and the State’s quality of life, and become a choice tourist destination. My goal is to continue making Hartford a great place to live, work, play and raise a family,” said Mayor Segarra.
In addition to defining a long-term vision for the City, there are several capital and infrastructure projects that the Mayor brought to the Governor’s attention including:
1. Swift Factory: Through strong partnerships, a vacant factory will be turned into a vibrant multipurpose facility and rejuvenate a North End neighborhood;
2. Coltsville: Continue to work with the Congressional delegation to have this area designated as a national park and securing federal and/or state funding for façade improvements;
3. XL Center: The current management contract runs out in 2013, at which point the City will assume responsibility of this facility. The Mayor and his administration are in the process of laying the groundwork to make this a more vibrant and desirable venue for sports and entertainment events;
4. iQuilt: This innovative initiative crafted by The Bushnell, The Greater Hartford Arts Council, and the City of Hartford intends to knit together our wonderful social and cultural centers and enhance pedestrian routes to promote economic growth and redevelopment in the Capitol district;
5. 101 Pearl Street: The Mayor and city officials are actively pursuing creative options that would benefit the Downtown area as well as neighboring tenants;
6. Albany Avenue/Route 44: A state highway and main artery in the North End, working in conjunction with MDC to aggressively pursue funding for streetscape that would prove critical to community vibrancy;
7. Capitol Avenue: Through the Greening of America’s Capitals grant received from EPA, we are poised to work with appropriate state officials to transform areas surrounding the State Capitol to add green space, more appealing sightlines, and increased sustainability;
8. New Britain to Hartford Busway: This project will improve travel to and from the city, create about 4,000 jobs, and represent the state’s first rapid-transit system. While the City is still firm in its position to not disrupt operations at Aetna and The Hartford, this project would revitalize Asylum Hill neighborhood and reduce traffic on I-84 and I-91;
9. Lyric Theatre: A historic theatre in the Frog Hollow neighborhood that the Mayor has targeted for restoration and the future home of the Puerto Rican Cultural Center.
Other long-range projects mentioned include the Hartford Viaduct and high-speed rail. Mayor Segarra emphasized that through partnerships and a collaborative approach at the community, city, state, and federal levels, these projects will improve the quality of life for residents throughout the city, address environmental concerns, and provide employment opportunities for years to come.
Shaw Capital Working Management Tips & Articles: Rimage: A Call To Action By A Shareholder
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-rimage-a-call-to-action-by-a-shareholder/
MAR10
______________________________________________________________
http://www.gurufocus.com/news.php?id=125175
Mar. 08, 2011 | Filed Under: RIMG
Dear Members of the Board:
As shareholders of Rimage Corporation (RIMG), Schacht Value Investors demands a change in the company’s strategic direction and capital allocation. On behalf of our clients, who beneficially own 65,010 shares of Rimage, we request:
* A renewed focus on core business & organic initiatives.
* An end to the search for acquisition targets.
* A special dividend of at least $100 million, or $10/share.
* Engagement of investment bankers about a sale of Rimage.
The company’s enormous cash balance, which currently represents 80 percent of the company’s market capitalization, is its largest source of shareholder value. Recent statements and actions by management raise serious concerns about the intentions for this capital. Over the past year, it has become increasingly clear that Rimage’s leadership will primarily use the cash to pursue an “option” that includes acquisitions and a new “content delivery platform”.
We disagree strongly with this direction.
The current market price of Rimage shares implies a value of $140 million. Two components contribute to this value: a profitable core business that generates significant free cash flow, which at the current market price carries a value of under $30 million, and at least $100 million in cash that investors could redirect without affecting the operation and value of that core business. Even if the core business declines, by any measure, its value should far exceed the $30 million currently being assigned.
Why does the market attribute such a paltry valuation to the core business? The market assigns a negative value to the aforementioned “option” that management hopes to pursue. While management may believe that the option represents the best use of company cash, the market correctly assumes that the option will instead destroy shareholder wealth. In fact, CEO Sherman Black reinforced the market’s view only last week:
We have not given any financial estimates, because we don’t have a firm business plan that we can share with you at this time. What we have shared with you, Steve, is that we have an existing business that we feel comfortable is going to continue to generate cash flow.
We could not have said it better ourselves. Everything outside the core business is just an expensive experiment, a speculation with shareholder capital that we do not and will not support.
Focus on the Core Business
The operating portion of Rimage should be the largest component of enterprise value and the focus of management’s efforts. Management may feel “comfortable (that it) is going to continue to generate cash flow”, but the “option” is a major distraction that jeopardizes this progress.
Furthermore, instead of throwing an undefined amount of cash at the promised “content delivery platform,” management should seek further organic growth in areas that truly relate to the existing business. By their own admission, management does not have a firm plan for their new business efforts. These ventures are ill-defined and promise to consume unknown quantities of shareholder capital.
To be clear, we do not oppose investing for the future. Rather we question the nature and extent of the needed investment. The Board of Directors must resist the institutional imperative to spend the enormous store of wealth.
End the Search for Acquisitions
If we were to write a book entitled “Successful Corporate Acquisitions”, it would be a very slim text. The chapter covering technology companies would be slight to non-existent. Sherman Black acknowledged this during the 4th Quarter 2009 earnings conference call:
I can provide you with a lot of data that says companies that do what you just suggested [acquisitions] actually fail. And when you start looking multiple rings away from your core, your chances of success go way down. And that’s been documented in many, many cases. I would rather – if I thought that’s where I was going to go, I’d rather give the money back to the shareholders and let them decide where they want to take their investments.
This remark reassured us as investors, but it has started to ring hollow in light of recent statements and developments. First and foremost, the company hired an investment bank to explore acquisition targets. We are reminded that you never ask a barber if you need a haircut!
Next, the Board of Directors this week changed management incentive compensation so as to actually encourage acquisitions. The company did not discuss or even identify this critical change during the most recent earnings conference call. We thus question the ability of the current Board of Directors to represent investor interests. To encourage behavior that will likely destroy shareholder wealth strikes us as irrational.
For at least a year, investors have questioned management (publicly and privately) about capital allocation plans, particularly in regard to Rimage’s enormous and growing cash balance. Initially, management asked for time to formulate a plan, citing their short time on the job. More recently, it hinted at a plan that remains undisclosed, ill-defined, or both. Nonetheless, management assured shareholders that the cash is not burning a hole in the corporate pocket.
Hiring an investment bank and changing compensation incentives confirms investors’ worst fears. Yet the Board of Directors expects us to sit passively, content with the cash balance in the hands of management, despite signs of imminent value destruction.
Despite the general lack of transparency, one thing is abundantly clear: there are no plans to disgorge excess capital back to shareholders, where it is desired and where it belongs.
Given the checkered history of corporate deal making, this should be the first option considered, not the last.
Shareholder after shareholder has raised the issue of a special dividend. Management has dismissed us every time, with excuses, platitudes, and outright condescension. Just review the enclosed litany of exchanges regarding Rimage’s cash over the last 5 quarters (attached).
Management forgets that investors own this capital. Yet management ignores investor calls for a pro-rata share of our own cash, in favor of management ambitions, unspecified customer requests, a call for growth by the Board of Directors, and whatever gem our new investment bankers may uncover. We should not have to wait at the end of the line for our own capital.
If shareholders needed further evidence of the company’s intentions, we need only cite Sherman Black’s recent statement that accelerating growth at Rimage “will require some inorganic activity, and we’re looking at those options”. Such veiled references to acquisitions only provide further proof that management understands the unpopularity of the “acquisitions first” course.
Declare a Special Dividend
Numerous academic studies and countless examples show clearly that large excess cash balances erode management discipline and shareholder returns. Yet management ambitions often override financial concerns when shareholders fail to intervene. Even Warren Buffetthimself has weighed in on these issues saying he prefers smaller companies with higher returns on capital to bigger ones with lower returns.
Investors will not allow Rimage to become a venture capital fund. Most of Rimage’s shareholders are professional investors with a far greater capability to reinvest this capital, with the track records to prove it. Investors, including Schacht Value, have a wider choice of possible investments outside the company’s rather specific area of technology.
The company could easily return at least $100 million to shareholders and still have more than enough cash for organic opportunities and working capital. Even a distribution of this size would leave some $16m in cash to support $80m-$85m in 2011 sales. Management must demonstrate why they could not operate the current business and invest for the future with this level of remaining cash (post distribution), ongoing free cash flow, and a debt free balance sheet.
We therefore request that the Board declare a special dividend of at least $100 million. This special dividend would be additive to the regular dividend, not a replacement.
Investigate Possible Company Sale
With a low enterprise value multiple, large cash balance, and steady free cash flow capabilities, Rimage makes a natural target, not an acquirer. The only reason to hire an investment banker would be to sell the company. We can’t name a single “minnow-swallows-whale” acquisition that succeeded. Even “bolt-on” acquisitions are a mixed bag in terms of success.
Thus, in the interest of exploring all avenues of shareholder value maximization, we request that the Board of Directors engage an investment bank to solicit offers for Rimage. The best option for shareholders may well be a sale of the company, but we won’t know unless the Board of Directors explores the possibilities.
Further Comments
In anticipation of one response to our request, let us acknowledge the company’s steps to respond to shareholder discontent: engaging in modest share repurchases and declaring a regular dividend. These decisions, however, do not address the huge amount of cash in question or the risky steps being taken elsewhere in the name of growth.
For instance, despite the recently announced buyback activity, shares outstanding have actually increased. Clearly, the benefit of the share repurchases has not accrued to shareholders. Instead, it represents a wealth transfer (via stock options) to employees, making what was implicit explicit. Management only uses the share repurchases to the extent needed to offset option dilution. Whatever the portrayal, this is not a serious effort to return capital to shareholders.
Investors welcome a regular dividend as a necessary step for Rimage, but it does not address the company’s outsized cash balance. Barring any special dividend, cash will likely continue to grow, unless management wastes it on an acquisition.
So when it comes to addressing the cash hoard and/or returning a significant amount of cash to shareholders, the above activities are merely window-dressing.
Conclusion
It is time the Board of Directors upholds its fiduciary duty to protect shareholders from the management team’s ambitions, directing them to run the business at hand. While day-to-day operations may not have the glamour and intrigue of so-called “strategic matters”, Rimage investors believe they are a better use of management’s time, and our money.
Send a clear signal to existing shareholders and the wider investment community that Rimage will not burn its cash in a misguided attempt to discover the next “big thing”. The Board of Directors must consider all options for increasing value, including a sale of the company. In the meantime, the company must return excess cash to its owners.
Leave eager investment bankers and their shopping lists for others. By doing so, you will distinguish Rimage as a true steward of shareholder capital and likely cause a positive reappraisal of the company’s value.
In short, we trust management to run its existing business, not to allocate over $100 million in shareholder capital on new ventures.
Numerous concerned shareholders have patiently tried to work with management to address capital allocation. Our reasonable concerns have fallen on deaf ears. For this reason, we have lost confidence in the company’s intentions and abilities in regard to our capital.
We therefore appeal to the Board of Directors to weigh in. Please fulfill your obligation to protect shareholder value. By considering only acquisitions and token displays of affection for shareholders, directors risk being held accountable by investors for any destruction of shareholder value that results.
We await your response.
Sincerely,
Henry W. Schacht, CFA
Schacht Value Investors, LLC
P.O. Box 777
Notre Dame, IN 46556
574-273-9846
www.schachtvalue.com/rimage
_________________
Henry W. Schacht, CFA is the founder of Schacht Value Investors, an investment management firm serving individuals and institutions. He currently serves as President and Chief Investment Officer. He earned his MBA at the University Of Chicago Graduate School of Business and a BBA in finance from the University of Notre Dame. Mr. Schacht is a member of the Association for Investment Management & Research (AIMR), the Investment Analysts Society of Chicago (IASC), and the National Association of Corporate Directors (NACD).
MAR10
______________________________________________________________
http://www.gurufocus.com/news.php?id=125175
Mar. 08, 2011 | Filed Under: RIMG
Dear Members of the Board:
As shareholders of Rimage Corporation (RIMG), Schacht Value Investors demands a change in the company’s strategic direction and capital allocation. On behalf of our clients, who beneficially own 65,010 shares of Rimage, we request:
* A renewed focus on core business & organic initiatives.
* An end to the search for acquisition targets.
* A special dividend of at least $100 million, or $10/share.
* Engagement of investment bankers about a sale of Rimage.
The company’s enormous cash balance, which currently represents 80 percent of the company’s market capitalization, is its largest source of shareholder value. Recent statements and actions by management raise serious concerns about the intentions for this capital. Over the past year, it has become increasingly clear that Rimage’s leadership will primarily use the cash to pursue an “option” that includes acquisitions and a new “content delivery platform”.
We disagree strongly with this direction.
The current market price of Rimage shares implies a value of $140 million. Two components contribute to this value: a profitable core business that generates significant free cash flow, which at the current market price carries a value of under $30 million, and at least $100 million in cash that investors could redirect without affecting the operation and value of that core business. Even if the core business declines, by any measure, its value should far exceed the $30 million currently being assigned.
Why does the market attribute such a paltry valuation to the core business? The market assigns a negative value to the aforementioned “option” that management hopes to pursue. While management may believe that the option represents the best use of company cash, the market correctly assumes that the option will instead destroy shareholder wealth. In fact, CEO Sherman Black reinforced the market’s view only last week:
We have not given any financial estimates, because we don’t have a firm business plan that we can share with you at this time. What we have shared with you, Steve, is that we have an existing business that we feel comfortable is going to continue to generate cash flow.
We could not have said it better ourselves. Everything outside the core business is just an expensive experiment, a speculation with shareholder capital that we do not and will not support.
Focus on the Core Business
The operating portion of Rimage should be the largest component of enterprise value and the focus of management’s efforts. Management may feel “comfortable (that it) is going to continue to generate cash flow”, but the “option” is a major distraction that jeopardizes this progress.
Furthermore, instead of throwing an undefined amount of cash at the promised “content delivery platform,” management should seek further organic growth in areas that truly relate to the existing business. By their own admission, management does not have a firm plan for their new business efforts. These ventures are ill-defined and promise to consume unknown quantities of shareholder capital.
To be clear, we do not oppose investing for the future. Rather we question the nature and extent of the needed investment. The Board of Directors must resist the institutional imperative to spend the enormous store of wealth.
End the Search for Acquisitions
If we were to write a book entitled “Successful Corporate Acquisitions”, it would be a very slim text. The chapter covering technology companies would be slight to non-existent. Sherman Black acknowledged this during the 4th Quarter 2009 earnings conference call:
I can provide you with a lot of data that says companies that do what you just suggested [acquisitions] actually fail. And when you start looking multiple rings away from your core, your chances of success go way down. And that’s been documented in many, many cases. I would rather – if I thought that’s where I was going to go, I’d rather give the money back to the shareholders and let them decide where they want to take their investments.
This remark reassured us as investors, but it has started to ring hollow in light of recent statements and developments. First and foremost, the company hired an investment bank to explore acquisition targets. We are reminded that you never ask a barber if you need a haircut!
Next, the Board of Directors this week changed management incentive compensation so as to actually encourage acquisitions. The company did not discuss or even identify this critical change during the most recent earnings conference call. We thus question the ability of the current Board of Directors to represent investor interests. To encourage behavior that will likely destroy shareholder wealth strikes us as irrational.
For at least a year, investors have questioned management (publicly and privately) about capital allocation plans, particularly in regard to Rimage’s enormous and growing cash balance. Initially, management asked for time to formulate a plan, citing their short time on the job. More recently, it hinted at a plan that remains undisclosed, ill-defined, or both. Nonetheless, management assured shareholders that the cash is not burning a hole in the corporate pocket.
Hiring an investment bank and changing compensation incentives confirms investors’ worst fears. Yet the Board of Directors expects us to sit passively, content with the cash balance in the hands of management, despite signs of imminent value destruction.
Despite the general lack of transparency, one thing is abundantly clear: there are no plans to disgorge excess capital back to shareholders, where it is desired and where it belongs.
Given the checkered history of corporate deal making, this should be the first option considered, not the last.
Shareholder after shareholder has raised the issue of a special dividend. Management has dismissed us every time, with excuses, platitudes, and outright condescension. Just review the enclosed litany of exchanges regarding Rimage’s cash over the last 5 quarters (attached).
Management forgets that investors own this capital. Yet management ignores investor calls for a pro-rata share of our own cash, in favor of management ambitions, unspecified customer requests, a call for growth by the Board of Directors, and whatever gem our new investment bankers may uncover. We should not have to wait at the end of the line for our own capital.
If shareholders needed further evidence of the company’s intentions, we need only cite Sherman Black’s recent statement that accelerating growth at Rimage “will require some inorganic activity, and we’re looking at those options”. Such veiled references to acquisitions only provide further proof that management understands the unpopularity of the “acquisitions first” course.
Declare a Special Dividend
Numerous academic studies and countless examples show clearly that large excess cash balances erode management discipline and shareholder returns. Yet management ambitions often override financial concerns when shareholders fail to intervene. Even Warren Buffetthimself has weighed in on these issues saying he prefers smaller companies with higher returns on capital to bigger ones with lower returns.
Investors will not allow Rimage to become a venture capital fund. Most of Rimage’s shareholders are professional investors with a far greater capability to reinvest this capital, with the track records to prove it. Investors, including Schacht Value, have a wider choice of possible investments outside the company’s rather specific area of technology.
The company could easily return at least $100 million to shareholders and still have more than enough cash for organic opportunities and working capital. Even a distribution of this size would leave some $16m in cash to support $80m-$85m in 2011 sales. Management must demonstrate why they could not operate the current business and invest for the future with this level of remaining cash (post distribution), ongoing free cash flow, and a debt free balance sheet.
We therefore request that the Board declare a special dividend of at least $100 million. This special dividend would be additive to the regular dividend, not a replacement.
Investigate Possible Company Sale
With a low enterprise value multiple, large cash balance, and steady free cash flow capabilities, Rimage makes a natural target, not an acquirer. The only reason to hire an investment banker would be to sell the company. We can’t name a single “minnow-swallows-whale” acquisition that succeeded. Even “bolt-on” acquisitions are a mixed bag in terms of success.
Thus, in the interest of exploring all avenues of shareholder value maximization, we request that the Board of Directors engage an investment bank to solicit offers for Rimage. The best option for shareholders may well be a sale of the company, but we won’t know unless the Board of Directors explores the possibilities.
Further Comments
In anticipation of one response to our request, let us acknowledge the company’s steps to respond to shareholder discontent: engaging in modest share repurchases and declaring a regular dividend. These decisions, however, do not address the huge amount of cash in question or the risky steps being taken elsewhere in the name of growth.
For instance, despite the recently announced buyback activity, shares outstanding have actually increased. Clearly, the benefit of the share repurchases has not accrued to shareholders. Instead, it represents a wealth transfer (via stock options) to employees, making what was implicit explicit. Management only uses the share repurchases to the extent needed to offset option dilution. Whatever the portrayal, this is not a serious effort to return capital to shareholders.
Investors welcome a regular dividend as a necessary step for Rimage, but it does not address the company’s outsized cash balance. Barring any special dividend, cash will likely continue to grow, unless management wastes it on an acquisition.
So when it comes to addressing the cash hoard and/or returning a significant amount of cash to shareholders, the above activities are merely window-dressing.
Conclusion
It is time the Board of Directors upholds its fiduciary duty to protect shareholders from the management team’s ambitions, directing them to run the business at hand. While day-to-day operations may not have the glamour and intrigue of so-called “strategic matters”, Rimage investors believe they are a better use of management’s time, and our money.
Send a clear signal to existing shareholders and the wider investment community that Rimage will not burn its cash in a misguided attempt to discover the next “big thing”. The Board of Directors must consider all options for increasing value, including a sale of the company. In the meantime, the company must return excess cash to its owners.
Leave eager investment bankers and their shopping lists for others. By doing so, you will distinguish Rimage as a true steward of shareholder capital and likely cause a positive reappraisal of the company’s value.
In short, we trust management to run its existing business, not to allocate over $100 million in shareholder capital on new ventures.
Numerous concerned shareholders have patiently tried to work with management to address capital allocation. Our reasonable concerns have fallen on deaf ears. For this reason, we have lost confidence in the company’s intentions and abilities in regard to our capital.
We therefore appeal to the Board of Directors to weigh in. Please fulfill your obligation to protect shareholder value. By considering only acquisitions and token displays of affection for shareholders, directors risk being held accountable by investors for any destruction of shareholder value that results.
We await your response.
Sincerely,
Henry W. Schacht, CFA
Schacht Value Investors, LLC
P.O. Box 777
Notre Dame, IN 46556
574-273-9846
www.schachtvalue.com/rimage
_________________
Henry W. Schacht, CFA is the founder of Schacht Value Investors, an investment management firm serving individuals and institutions. He currently serves as President and Chief Investment Officer. He earned his MBA at the University Of Chicago Graduate School of Business and a BBA in finance from the University of Notre Dame. Mr. Schacht is a member of the Association for Investment Management & Research (AIMR), the Investment Analysts Society of Chicago (IASC), and the National Association of Corporate Directors (NACD).
Shaw Capital Working Management Tips & Articles: Ariba to Present at Roth OC Growth Stock Conference
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-ariba-to-present-at-roth-oc-growth-stock-conference/
MAR10
http://www.businesswire.com/news/home/20110309005086/en/Ariba-Present-Roth-OC-Growth-Stock-Conference
March 09, 2011 08:30 AM Eastern Time
2011 ROTH OC Conference
SUNNYVALE, Calif.–(BUSINESS WIRE)–Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, today announced its participation in the Roth OC Growth Stock Conference on Monday, March 14 at the Ritz Carlton, Laguna Niguel. Ariba Chief Financial Officer Ahmed Rubaie will present at 1:30 p.m. ET. A live webcast of the presentation can be accessed on the investor relations section of Ariba’s website at www.ariba.com.
About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology with the world’s largest web-based trading community to help companies discover, connect and collaborate with a global network of partners – all in a cloud-based environment. Using the Ariba® Commerce Cloud, businesses of all sizes can buy, sell and manage cash more efficiently and effectively. Over 340,000 companies around the globe use the Ariba Commerce Cloud to simplify inter-enterprise commerce and enhance results. Why not join them? To get on the path to Better Commerce visit: www.ariba.com/commercecloud/
Copyright © 1996 – 2011 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, Ariba.com, Ariba.com Network, Ariba Spend Management. Find it. Get it. Keep it. and PO-Flip are registered trademarks of Ariba, Inc. Ariba Procure-to-Pay, Ariba Buyer, Ariba eForms, Ariba PunchOut, Ariba Services Procurement, Ariba Travel and Expense, Ariba Procure-to-Order, Ariba Procurement Content, Ariba Sourcing, Ariba Savings and Pipeline Tracking, Ariba Category Management, Ariba Category Playbooks, Ariba StartSourcing, Ariba Spend Visibility, Ariba Analysis, Ariba Data Enrichment, Ariba Contract Management, Ariba Contract Compliance, Ariba Electronic Signatures, Ariba StartContracts, Ariba Invoice Management, Ariba Payment Management, Ariba Working Capital Management, Ariba Settlement, Ariba Supplier Information and Performance Management, Ariba Supplier Information Management, Ariba Discovery, Ariba Invoice Automation, Ariba PO Automation, Ariba Express Content, Ariba Ready, and Ariba LIVE are trademarks or service marks of Ariba, Inc. All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations in the United States and/or other countries.
Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba’s expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba’s operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba’s results of operations and financial condition; delays in development or shipment of new versions of Ariba’s products and services; lack of market acceptance of Ariba’s existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the impact of any acquisitions, including difficulties with the integration process or the realization of benefits of a transaction; the impact of our disposition, including the potential disruption of our ongoing business; the ability to attract and retain qualified employees; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company’s pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions and dispositions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba’s Form 10-Q filed with the SEC on February 2, 2011.
Ariba, Inc.
Investor Contact:
John Duncan, 650-390-1200
Investor@ariba.com
or
Media Contact:
Karen Master, 412-297-8177
kmaster@ariba.com
MAR10
http://www.businesswire.com/news/home/20110309005086/en/Ariba-Present-Roth-OC-Growth-Stock-Conference
March 09, 2011 08:30 AM Eastern Time
2011 ROTH OC Conference
SUNNYVALE, Calif.–(BUSINESS WIRE)–Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, today announced its participation in the Roth OC Growth Stock Conference on Monday, March 14 at the Ritz Carlton, Laguna Niguel. Ariba Chief Financial Officer Ahmed Rubaie will present at 1:30 p.m. ET. A live webcast of the presentation can be accessed on the investor relations section of Ariba’s website at www.ariba.com.
About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology with the world’s largest web-based trading community to help companies discover, connect and collaborate with a global network of partners – all in a cloud-based environment. Using the Ariba® Commerce Cloud, businesses of all sizes can buy, sell and manage cash more efficiently and effectively. Over 340,000 companies around the globe use the Ariba Commerce Cloud to simplify inter-enterprise commerce and enhance results. Why not join them? To get on the path to Better Commerce visit: www.ariba.com/commercecloud/
Copyright © 1996 – 2011 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, Ariba.com, Ariba.com Network, Ariba Spend Management. Find it. Get it. Keep it. and PO-Flip are registered trademarks of Ariba, Inc. Ariba Procure-to-Pay, Ariba Buyer, Ariba eForms, Ariba PunchOut, Ariba Services Procurement, Ariba Travel and Expense, Ariba Procure-to-Order, Ariba Procurement Content, Ariba Sourcing, Ariba Savings and Pipeline Tracking, Ariba Category Management, Ariba Category Playbooks, Ariba StartSourcing, Ariba Spend Visibility, Ariba Analysis, Ariba Data Enrichment, Ariba Contract Management, Ariba Contract Compliance, Ariba Electronic Signatures, Ariba StartContracts, Ariba Invoice Management, Ariba Payment Management, Ariba Working Capital Management, Ariba Settlement, Ariba Supplier Information and Performance Management, Ariba Supplier Information Management, Ariba Discovery, Ariba Invoice Automation, Ariba PO Automation, Ariba Express Content, Ariba Ready, and Ariba LIVE are trademarks or service marks of Ariba, Inc. All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations in the United States and/or other countries.
Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba’s expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba’s operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba’s results of operations and financial condition; delays in development or shipment of new versions of Ariba’s products and services; lack of market acceptance of Ariba’s existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the impact of any acquisitions, including difficulties with the integration process or the realization of benefits of a transaction; the impact of our disposition, including the potential disruption of our ongoing business; the ability to attract and retain qualified employees; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company’s pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions and dispositions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba’s Form 10-Q filed with the SEC on February 2, 2011.
Ariba, Inc.
Investor Contact:
John Duncan, 650-390-1200
Investor@ariba.com
or
Media Contact:
Karen Master, 412-297-8177
kmaster@ariba.com
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