Category Archives: Investing

Facebook’s Weapon to Get to NASDAQ

Current Status 

Facebook, the social network created by Mark Zuckerberg, is betting that its IPO prospectus will occur in the second half of May. The company explained that after the first quarter of 2012, these are the most representative data:

  • 901 million active users each month.
  • 3.200 million comments and “likes” are made every day.
  • 300 million photos are uploaded to the social network every day.
  • 125.000 million “friends” are on the platform.
  • 488 million active users each month via phone.

The company explained that their markets have higher growth rates in Brazil, India and the U.S.

Purchase Instagram

Facebook bought Instagram for millions of cash and stock. Instagram is an application to edit and share photos.

“This is an important step for Facebook because it is the first time we buy a product and a company with many users. We have no plans to do more of these acquisitions,” said Zuckerberg at the time, in the company’s official blog.

IBM Patent

The company acquired 750 patents of International Business Machines Corp. (IBM), in an effort to increase its intellectual property portfolio following a lawsuit filed by Yahoo for an undisclosed sum by the company.

Microsoft Patents

Facebook bought 650 Microsoft patents, for $550 million in cash.

These licenses had been recorded in the first instance by AOL, who sold part of its portfolio of IP at Microsoft last April 9, and for which the company founded by Bill Gates, would have paid 1.000 million dollars in cash.

“The agreement today with Microsoft represents an important acquisition for us. It is a significant step in creating a portfolio of IP to protect Facebook and its long-term interests,” said Ted Ullyot, legal representative of the company created by Mark Zuckerberg in 2004.

 

Walmart Begins 2012 with the Right Foot

MEXICO CITY – Walmart de Mexico and Central America report positive results of the first quarter of 2012, with increases of 13% in EBITDA and 14% in net income. Thanks to a good performance in comparable store sales (more than a year in operation) and its aggressive expansion in sales floor.

Based on the figures for March, same store sales of the company that handles formats such as Suburbia, Bodega Aurrera, Superama and Sam’s Club, rose by about 5.6% and 2.6% in Mexico in Central America.

To Paola Sotelo, an analyst at Monex Casa de Bolsa, the revenue performance of the firm has benefited from the ongoing strategy of low prices, seasonal promotions and advanced higher consumer confidence, which has positively impacted traffic customers and the average ticket for the quarter.

“In Central America, we see a modest increase in comparable store sales because most of the units in 2011 he opened the second half of the year,” says the specialist market sector.

In the January-March quarter of 2012, Walmart of Mexico and Central America opened a total of 46 stores, representing an advance of about 11% in its expansion plan this year.

For Raquel Moscoso, an analyst at Casa de Bolsa Banorte-Ixe, the liquidation of inventories are lower than expected. It will result in a slight contraction in operating margins. Despite this, the survey reveals that EBITDA and operating income of the firm will increase by 13% and 14%, respectively, to settle at 9.150 and 7.176 pesos pesos in the same order.

Finally, the net income of the company directed by Scot Rank added 5.141 million pesos, which represents an increase of 14% compared to that obtained in the first quarter of 2011.

Walmart of Mexico and Central America in the retail sector operates in six countries: Costa Rica, El Salvador, Guatemala, Honduras, Mexico and Nicaragua.

It has a variety of formats including discount stores (Bodega Aurrera Express, Family Pantry and Pali), supermarkets (Superama Paiz, Pantry Don Juan, La Union and Mas x Menos), warehouses (Bodega Aurrera, Mi Bodega Aurrera and Maxi Bodega), superstores (Walmart), membership wholesale clubs (Sam’s Club and ClubCo), apparel stores (Suburbia) and restaurants (Vips, El Porton and Ragazzi), to date, totaling 2.754 units.

Audi Buys Ducati for $1.120 Million

BERLIN/HAMBURG – Audi has agreed to purchase the Italian motorcycle company, Ducati, for $1.120 million including debt.

Ducati’s financial obligations are well below 200 million euros, said one source.

Audi has reached an agreement with the main shareholder of Ducati and acquisition plans to announce next Wednesday, sources told Reuters last week.

Several analysts questioned the benefit of buying Ducati, saying it was unnecessary to the main challenges of VW: integrating the sports car manufacturer Porsche and truck divisions merging MAN and Scania.

“The acquisition of Ducati is based on the passion of VW brands, that is industrial and financial logic,” said Arndt Ellinghorst, auto analyst at Credit Suisse.

Ducati increased its number to 12 of the VW Group brands and expand Audi’s rivalry with Bayerische Motoren Werke to large displacement motorcycles.

The 11 brands of VW made everything from efficient cars for the city to trucks of 40 tons.

Audi and Investindustrial may not reveal the exact price of the sale in the statement, which plans to publish on the eve of the annual meeting of shareholders of VW in Hamburg, said one source, who declined to reveal his identity because the matter remains confidential.

Wells Fargo Profit Disappoints

NEW YORK РU.S. bank, Wells Fargo, reported Friday a profit of $0.75 per share for the first quarter and revenues of 21.600 billion. Analysts expected a profit of $0.73 per share and revenue of 20.510 billion.

The bank’s shares fell 1% on transactions prior to market opening, after it released the results.


European Stocks Hit by Postponed Agreement for Greece

European stocks opened down Thursday as investor confidence is affected by repeated postponements of the agreement to save Greece and the possibility of relegation credit ratings of several financial institutions in the Euro area by Moody’s, says Reuters.

FTSEurofirst 300 index of the most important European shares fell 0.9% in the early trading session, after reaching peak Wednesday last six months, a trend which has led some investors to sell to make profits increase 18% index recorded at the end of November.

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Fed’s New Mission Is to Devalue the Dollar by 33%

The Management Board of the U.S. central bank (Fed) has officially announced, after two days of debate, its new goal: to devalue the dollar by 33% over the next 20 years. The decline will be greater if the Fed’s own inflation target of 2% per year won’t be met, reports Business Insider.

A price increase of 2% a year won’t be felt in your pockets. Back in the day, during the gold standard (when the dollar was tied to the value of gold), such an increase was unusual. When the dollar was tied to gold, the years with modest inflation were followed by years of price declines. As a result, on along term, prices remained stable. And an American dollar was worth a dollar, 20 years later.

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