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Tag >> Apple
We've heard a lot about how high-growth startups generate more jobs than other small businesses. Now there's evidence so-called entrepreneurial public companies create more employment than other firms of the same size.
The findings are from research by Joel Shulman, an associate professor at Babson College who also runs a newly created mutual fund called EntrepreneurShares Mutual Fund . It invests in 400 companies defined as entrepreneurial according to 15 core factors, including such characteristics as organic growth, an above average ownership stake among key stakeholders, an above average return on investment capital and a long duration of key managers. Companies, which also have a market cap of $200 million and more, range from Apple to Credit Acceptance Corp.
Apple is the latest company to feel the sting of corruption. A supply manager in Asia, Paul Devine, was arrested on Friday for giving Apple suppliers in the region confidential company information to help them win favorable contracts. Devine received more than $1 million in kickbacks from the companies involved.
The mid-level manager is in the custody of the US marshals and will appear in the US District Court in San Jose, California, Monday to face 23 counts of wire fraud and money laundering. According to the indictment, Devine allegedly used a chain of US and foreign bank accounts and a front company for receiving payments.
The Wall Street Journal has an article Wednesday on the swelling coffers of the world's largest tech companies and how they're using that cash to make it almost impossible for smaller players to compete with them.
It's truly staggering how much cash some of these companies are throwing off: "Over the past two years, Apple Inc., Oracle Corp., Google Inc., Microsoft Corp. and six other large tech companies have generated $68.5 billion in new cash, compared with just $13.5 billion for the other 65 tech companies in the S&P 500 Index combined, according to a Wall Street Journal analysis of data provided by Capital IQ."
Leave it to Steve Jobs to make $25 billion sound like rainy day money.
On Thursday, Apple's visionary CEO pooh-poohed the suggestions of those who think the company should buy back shares or pay a dividend, saying he prefers to hold on to that cash for acquisitions and investments.
But given Apple's history of deal making under Jobs, he might as well have said, "Our shares are up 135 percent since the beginning of last year alone, so shut up about the cash."
Ron Fink wrote back in September about concerns over new accounting rules for revenue recognition doing little more than providing more areas of confusion for investors.
Under the new rules, companies can book revenue based on estimated sales prices for all the components of "bundled deliverables" all at once instead of on their current fair value. The expectation is that the rule will boost upfront earnings for tech companies whose products combine hardware and software.
Well, on Monday night, Apple made its first quarterly earnings report under the new rules and they certainly gave the tech darling a boost, but it's unclear whether it will ultimately confuse investors. Indeed, they were likely distracted by Apple raking in $3.4 billion in net income for the quarter ended Dec. 26, up 50 percent from a year earlier.
BusinessWeek has a story asking, "Is Apple Ready for Merger Mania? " As a sign that it might be, the article points out that last year Steve Jobs and Co. hired a Goldman Sachs investment banker, Adrian Perica, to help it with deal making.
No doubt the acquisition wheels have sped up at Apple: Three of the 11 deals done under Jobs' leadership have come in the past five months, including the largest since his return, the $275 million purchase of Quattro Wireless.
This article on Intel's restructuring buries the news that its general counsel, Bruce Sewell, has resigned only six months before AMD's anti-trust case against it goes to trial. The trial is scheduled to go to begin next March, some five years after it started.
And that, as Law360 points out (sorry, no link), has industry analysts scratching their heads.As one analyst put it, "It's like the coach of a football team leaving on the eve of the big game."