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Colgate-Palmolive To Split Shares, A Move Many High-Priced Stocks Resist

Via Forbes

Colgate-Palmolive‘s Ian Cook touted a big year and confidence in the future Thursday when the consumer products company announced it will execute a two-for-one stock split and raise its quarterly cash dividend 10% to 68 cents (or 34 cents post-split).

In a statement, Chairman and CEO Cook said the move is being driven by “confidence in the continued strong and profitable growth,” of the business.

The two-for-one split, scheduled for April 23, will increase shares outstanding to 936 million, from 468 million.While the statement did not address the rationale for the split — a Colgate spokesperson was not available for comment — one factor may be the relatively lower prices of the company’s competitors. Fellow global consumer goods companies like Procter & Gamble, Unilever and Clorox, have stocks in the $40-$80 range despite comparable earnings multiples.

[Full article here]


Hollywood keeps its tax break in ‘fiscal cliff’ deal

Via The LA Times

Middle-class taxpayers aren’t the only ones who stand to benefit from the last-ditch deal to avert the so-called fiscal cliff.

The agreement in Congress also includes something for Hollywood — the extension of a tax break for movies and TV shows that shoot mainly in the U.S.

The provision, Section 181 of the federal tax code, allows qualifying productions to write down the first $15 million of expenses from their corporate tax bill.

The program will cost an estimated $430 million in deductions in the next year, according to estimates by the Joint Committee on Taxation.

Congress implemented the federal tax incentive in 2004 to encourage productions to stay home rather than flee to Canada, Britain and other foreign countries.

It’s not clear how effective the incentive has been. Film and television production continues to migrate to foreign cities, including Vancouver, Canada, and London, because of the stronger film tax breaks available there. And while production in the U.S. has increased dramatically in the last decade, most of that has been attributed to various state tax incentive programs.

Nonetheless, the federal credit extension was strongly backed by the Motion Picture Assn of America, the chief lobbying arm for the studios. MPAA Chief Executive Chris Dodd has been a strong proponent of tax breaks for the industry.

[Full article here]


Andina Acquisition Corporation Securities to Commence Separate Trading

Via Yahoo Finance

Andina Acquisition Corporation (Nasdaq: ANDAU – News) (the “Company”) announced today that EarlyBirdCapital, Inc., the representative of the underwriters for the Company’s initial public offering of units which took place in March 2012, has notified the Company that separate trading of the ordinary shares and warrants underlying the units would commence on or about May 8, 2012. The ordinary shares and warrants will be listed on the Nasdaq Capital Market under the symbols ANDA and ANDAW, respectively. Units not separated will continue to be listed on the Nasdaq Capital Market under the symbol ANDAU.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering was made only by means of a prospectus, copies of which may be obtained by visiting the U.S. Securities and Exchange Commission website at http://www.sec.gov. Alternatively, a copy of the prospectus relating to the offering may be obtained from EarlyBirdCapital, Inc., 275 Madison Avenue, 27th Floor, New York, NY 10016, Attn: Aimee Bloch, 212-661-0200.

Andina Acquisition Corporation is a blank check company organized for the purpose of effecting a merger, capital stock exchange, asset acquisition or other similar business combination with one or more businesses or entities. The Company’s efforts to identify a prospective target business will not be limited to any particular industry or geographic region, although the Company intends to focus its search for target businesses in the Andean region of South America and in Central America, with a particular emphasis on Colombia.

[Full story here]


U.S. Insider Probe Focus on Asia, Banks Said to Be Intensifying

Story via CNN Money.

The multiyear insider trading probe that has implicated U.S. hedge funds, technology company employees and consultants is intensifying its focus on banks and Asia as federal investigators probe Goldman Sachs Group Inc. technology analyst Henry King, according to a person familiar with the matter.

Michael DuVally, a spokesman for the New York-based bank, didn’t immediately return a call seeking comment on the investigation. James Margolin, a spokesman for the Federal Bureau of Investigation in New York, declined to comment. The probe of King was reported earlier by the Wall Street Journal.

[Full story here]


Home sales continue to improve

Story via CNN Money.

By Chris Isidore

Home sales ended a difficult year on a high note, resulting in a gain in full-year sales volume.

The National Association of Realtors reported that the annual sales pace in December reached 4.6 million homes, up 5% from November’s pace and 3.6% from a year ago.

It was the third straight month of improvement in the pace of sales. The improved fourth-quarter sales volume lifted full-year sales to 4.26 million homes, up 1.7% from 2010 levels.

[Full story here]


JPMorgan Profit Pumps Banks, Supports Street

by Steve Schaefer

Better than expected results lift market, afternoon gains boost indexes to session highs.

A $4.8 billion profit from JPMorgan Chase kicked off reporting season for the largest U.S. banks in style Friday, while slower than expected retail sales and China’s latest bid to tamp down inflation kept the broader market from fully getting on board until the afternoon.

JPMorgan finished off its highs with a gain of 1%, lifting peers like Bank of AmericaBACnews people ), Wells Fargo (WFCnews people ) and CitigroupCnews people ), after the firm recorded earnings per share of $1.12 that were well ahead of the 99 cent consensus estimate. Releasing loan loss reserves helped juice the company’s performance in the period. (See “JPMorgan Beats Expectations.”)

The Dow Jones industrial average, which counts JPMorgan among its 30 components, reversed an early dip and extended its advance in the last few hours of trading to gain 55 points and close at 11,787. The S&P 500 added 9 points to 1,293 and the Nasdaq was 20 points higher at 2,755.

Another Dow component, IntelINTCnews people ), gave back some of its gains after reporting better-than-expected results after the closing bell Thursday, falling 1%.

[read more: Forbes]


Buffett Says He Could Spend Up to $10 Billion on Next Investment

By Tomoko Yamazaki and Andrew Frye

Warren Buffett, who invested $23.9 billion for his Berkshire Hathaway Inc. in the third quarter, said the company could spend as much as $10 billion on its next acquisition.

Buffett, Berkshire’s chief executive officer, said today on his first visit to Japan that he potentially has $8 billion to $10 billion if he found the right investment, though he had no specific merger and acquisition plans currently.

“We like the A part better,” Buffett said in an interview with Bloomberg News in Fukushima prefecture in northern Japan, referring to a preference for acquisitions over mergers. “On the Lubrizol transaction I think we spent about $8.7 billion. We’d love another one like that — we can handle that. We can manage somewhat larger. We can handle a $10 billion deal very comfortably.”

Buffett, 81, has turned to stocks and takeovers this year after interest-rate declines limited returns in the bond market. He spent more than $10 billion on International Business Machines Corp. shares and on the takeover of Lubrizol Corp. Buffett, who is also chairman and head of investments, is seeking deals as Omaha, Nebraska-based Berkshire’s cash builds.

“It can be any place,” he said. “If I can find something here in Japan that was a business that I like and understood, like their competitive position, like the price, like the financial position, like the management, we would do that tomorrow.”

[read more: Businessweek]


James Altucher, Wall Street’s Keeper of the Pain

In the crash’s aftermath, the VC-turned-blogger is a source of wisdom and comfort

by Roben Farzad

Shaggy-haired, bespectacled James Altucher is a 43-year-old venture capitalist who puts money into tech startups such as Buddy Media—last valued at $500 million. He has also designed websites, worked as a financial columnist, and run a fund that invested in hedge funds. Along the way, he lost his savings and his marriage, and by his own admission suffered several nervous breakdowns.

Now Altucher has turned his misfortune into a source of wisdom and comfort for the despondent. He shares his insecurities and psychic traumas with 30,000 Twitter followers and on his blog, the Altucher Confidential, which he says has had 10 million page views since he launched it a year ago. His self-published book, I Was Blind But Now I See, has ranked as high as No. 2 this year in Amazon.com’s (AMZN) motivational books category, and he’s publishing a comic book about his life. “I think the role James fulfills in the post-crash world is beacon of hope,” says Joshua Brown, a financial adviser who blogs as the Reformed Broker. “I know it sounds corny, but no one has been more forthcoming about how the torn economic fabric of this country has affected him personally. The message is always centered around him still being here—that there’s life after financial near-death.”

While blogging is his passion, Altucher makes his living investing in tech startups as founder and managing partner of Formula Capital in New York. “The guy is too complicated to analyze, and I’m not a psychologist, but he knows his stuff,” says John Pappajohn, a biotech investor in Des Moines who helped found Caremark (now CVS/Caremark (CVS) ) and seeks Altucher’s insight on companies and the markets. “I don’t go to New York without asking him to breakfast.”

[read more: Businessweek]


The Dictator Index

A billionaire battles a continent’s legacy of misrule.

by Ken Auletta

ANNALS OF COMMUNICATIONS about billionaire Mo Ibrahim. One day last March, students crammed into the Great Hall at the University of Ghana to hear Mo Ibrahim, a Sudanese-born billionaire who built one of the first mobile-phone networks in Africa. In his speech, he noted that while Africa is a very rich continent, it has the poorest people on earth. He blamed this state on “a catastrophic failure of leadership and governance…too many dictators, too many megalomaniacs, too many thieves, who bled this continent for their personal and family interest.” Ibrahim, who is sixty-four years old, is often hailed as a hero in Africa. His mobile-phone company, Celtel, contributed to the development of civil society across the continent, and he’s now spending the money he earned to try to change the values of the dictators, megalomaniacs, and thieves. Each year, he offers the Ibrahim Prize, which bestows five million dollars on an African leader who is elected to office, promotes democracy, does not steal from the people, and cedes power peacefully. He has also created the Ibrahim Index of African Governance, a numerical ranking of Africa’s fifty-three governments. With citizen revolts in Tunisia, Egypt, Sudan, Libya, and elsewhere, Africa is undergoing perhaps its greatest political convulsion since the end of colonialism, and few private citizens have done as much in recent years as Ibrahim to push for the kind of democracy that people are demanding in the streets. Ibrahim’s message is that Africa needs to take responsibility for itself, and it needs to start by jettisoning its awful leaders. Ibrahim was born on May 3, 1946, in Northern Sudan. He attended Alexandria University, and, after getting his Ph.D. from the University of Birmingham, in 1981, he worked for British Telecom before founding his own consultancy, Mobile Systems International. In 2000, Ibrahim sold M.S.I. and focused on Celtel. By 2004, Celtel provided service to six million customers in thirteen countries. The next year, its revenues reached a billion dollars. The number of mobile phones in Africa has grown from fewer than four million in 1998 to more than four hundred million today, and the phones have created jobs and infrastructure. In 2006, Ibrahim unveiled the Ibrahim Prize. The Ibrahim Foundation has not granted a prize for the past two years, because the selection committee believed that no outgoing African head of state deserved it. Detractors describe the prize as a form of bribery, but Ibrahim rejects this claim. The Ibrahim Index of African Governance has “a huge impact” on how aid is distributed, according to the U.S.A.I.D. administrator Rajiv Shah, and it has helped change the conversation about how the West should assist developing countries. Describes a conference Ibrahim organized in Mauritius. Ibrahim knows that technology does not exclusively push society in the direction of greater freedom and openness, nonetheless he is proud that citizens in Tunisia and Egypt used their mobile phones to plan demonstrations and communicate strategy through calls, e-mail, Facebook, and Twitter.

[read more: The New Yorker]


Occupy Wall Street: The Most Important Thing in the World Now

by Naomi Klein

I was honored to be invited to speak at Occupy Wall Street on Thursday night. Since amplification is (disgracefully) banned, and everything I say will have to be repeated by hundreds of people so others can hear (a?k?a “the human microphone”), what I actually say at Liberty Plaza will have to be very short. With that in mind, here is the longer, uncut version of the speech.

I love you.

And I didn’t just say that so that hundreds of you would shout “I love you” back, though that is obviously a bonus feature of the human microphone. Say unto others what you would have them say unto you, only way louder.

Yesterday, one of the speakers at the labor rally said: “We found each other.” That sentiment captures the beauty of what is being created here. A wide-open space (as well as an idea so big it can’t be contained by any space) for all the people who want a better world to find each other. We are so grateful.

If there is one thing I know, it is that the 1 percent loves a crisis. When people are panicked and desperate and no one seems to know what to do, that is the ideal time to push through their wish list of pro-corporate policies: privatizing education and social security, slashing public services, getting rid of the last constraints on corporate power. Amidst the economic crisis, this is happening the world over.

And there is only one thing that can block this tactic, and fortunately, it’s a very big thing: the 99 percent. And that 99 percent is taking to the streets from Madison to Madrid to say “No. We will not pay for your crisis.”

That slogan began in Italy in 2008. It ricocheted to Greece and France and Ireland and finally it has made its way to the square mile where the crisis began.

“Why are they protesting?” ask the baffled pundits on TV. Meanwhile, the rest of the world asks: “What took you so long?” “We’ve been wondering when you were going to show up.” And most of all: “Welcome.”

[Read More: The Nation]