Finance Weekly Updates

Ex-CEO’s Helping Other Companies

A recent article in the Wall Street Journal from November 10, 2009 points to a new, and quite interesting business trend. A number of businesses are seeing a new trend with former chief executives taking an active role in helping troubled companies. John “Jack” Krol, for instance, was named, in November as outside chairman of Delphi Automotive LLP. Retired from DuPont Co. as their CEO, he is now working on Delphi’s operating plans and strategies.

Dennis Carey, a senior client partner at Korn/Ferry International, explains this trend. As he says, “These chairmen are strategic equal partners of the CEO because they already demonstrated a successful ‘in the trenches’ style of management.”

This trend is certainly most pronounced at struggling companies, but it’s being seen at more big businesses as well. The Corporate Library, a governance research firm, says that 46 former CEOs are now chairmen of other companies. This statistic is up from 14 in 2004.

Edward Whitacre Jr., for instance, a former CEO of AT&T Corp., has recently made television commercials for GM and has played a key role in convincing fellow directors to keep GM’s Opel brand and European operations.

This should prove to be a very interesting trend to continue to follow in the business world.

Introducing the iPad

Apple today introduced iPad, a revolutionary device for browsing the web, reading and sending email, enjoying photos, watching videos, playing games, reading e-books, and much more. Its high-resolution Multi-Touch display lets you interact with content — including 12 innovative new apps designed especially for iPad and almost all of the 140,000 apps. apple.com/ipad

Tips for Buying a Foreclosed Home

One great way to get a bargain today is to buy a home that is under foreclosure. You should be careful, however, if you plan to buy a foreclosed home buy using these five tips. Many companies, such as Keller Williams Realty, Inc., Trammell Crow, Lincoln Property and Kirk Sanford and Sightline Acquisition Corp, can offer even more tips of this sort for benefiting from a depressed economy.

Just because something is foreclosing doesn’t mean it’s a great deal. Sometimes, even the banks overprice their properties. Hire a good realtor and know the market. Pay attention to location; don’t buy in the wrong area just because something is a good deal. Get an inspection and do a title search. Spending a bit of money now can save you a great deal later. Finally, make sure you hire a good attorney.

Just because a foreclosed property might be the best way to go, don’t close out all other options. You might find a better deal with a seller than you do with a bank. Keep all of your options open and be a smart buyer. Surround yourself with knowledgeable people including real estate agents, lawyers and more.  Make sure to do all of your homework and to educate yourself about buying a foreclosed home before  you sign on the dotted line.

Malaysian Businessmen Optimistic About 2010

According to the International Business Confidence Survey, Malaysia is seen as one of the top ten countries regarded as best able to deal with the global economic crisis. Surveying 7500 businessmen in 24 countries, this survey conducted by Servcorp intended to gauge international business moral. Certainly, Malaysian businessmen such as Taek Jho Low, Regional Development Authority (Irda) chief executive officer Harun Johar, MIDA chairman Dr Sulaiman Mahbob and others should take heart.

Australia received the #1 spot with the highest vote of confidence for their ability to weather the recent global economic crisis, while China and India earned the second and third spots respectively.

The Malaysian economy did register a 6.2 percent negative growth during the first quarter of 2009; however, they have a positive growth forecast in the fourth quarter of 2009 and for the coming year in 2010.

The results of another survey, carried out by accountancy body, CPA Australia, indicate that business leaders in Southeast Asia are optimistic about the end of the global economic downturn. Of the 300 business leaders in the region, including a number in Malaysia, who were questioned, most said that they expect the global economic issues to be over by the end of 2010.

Hedge Funds Help Families Acquire Homes

The hedge fund community of New York has established an organization in conjunction with Habitat for Humanity whose mission is to help hard-working New York families fulfill their “once-in-a-lifetime” dream of home ownership.

These are families that without the intervention of Habitat and the support of hedge funds and private equity firms would not be able to compete for purchase of real estate in New York City.

Hedge Funds for Habitat-NYC is supported by some of the leading hedge fund and private equity firms in New York, including but not limited to:

Jason A. Press
The N.I.R. Group LLC, Corey Ribotsky,  Managing Partner
Walter Noel
PNC MultiFamily Capital
Tullett Prebon Holdings Corp
Vantage Partners