Here’s What Is Happening In The World Of Business and Finance…
Crocs (CROX), the shoe company, is getting a $200 million bailout from private equity fund Blackstone. The deal gives Crocks a cash infusion for its $350 million buyback, while Blackstone gets two seats on the board. Shares of the company known for making clogs that are comfortable but ugly peaked above $75 in 2007. But the company hasn’t been able to add new products with the same popularity, causing shares to fall to around $1 in late 2008 before beginning a recovery. Crocs also announced its CEO, John McCarvel, is retiring and will be giving up his board seat at the end of April. McCarvel has been with
the company since 2005 and president and CEO since 2010. Investors cheered the news, sending the stock 21.08% higher, closing the day at $16.14.
Lemons Into Lemonade….
On Monday, Berkshire (BRKA) announced it will acquire a specialty chemical division of oil refiner Phillips 66 (PSX) that makes chemicals to improve the potential flow of pipelines. To pay for the deal, Berkshire will return about 19 million shares it owns in Phillips 66 . The exact number of shares it will take to accomplish the approximately $1.4 Billion deal will be determined by their price on the closing date.
Berkshire acquired its Philips 66 shares in a 2008 investment in ConocoPhillips (COP). Bought when oil prices were near their peak Buffet quickly realized it was a bad call. In the company’s annual report, Buffett called the investment a “major mistake,” taking full blame. Now Buffet is taking his lemons and purchasing a company which should blend well with Bershisre’s portfolio of companies.
In The Markets:
Asian markets closed positive on Tuesday as investors got better than expected news out of the US. Japan Markets were closed for public holiday.
European shares closed down on Monday as markets and investors took profits after closing at five-year high on Friday.
US Markets closed mixed on Monday with the Dow Jones eking out one more record high. Light holiday volume and next to nothing in the way of economic data kept investors in vacation mode. DJIA:+25.88 16504.29 NASDAQ: -2.40 4154.20 S&P 500: -0.33 1841.07
In Dinner or Drink:
12 oz 7-Up® soda
2 oz Absolut® vodka
1 1/2 oz Goldschlager® cinnamon schnapps
2 oz blended whiskey
juice of 1 lemons
juice of 1 limes
1 tbsp powdered sugar
1/4 tsp grenadine syrup
Shake all ingredients (except carbonated water) with ice and strain into a collins glass over shaved ice. Fill with carbonated water and stir. Decorate with slices of orange and lemon. Add the cherry and serve with a straw.
As we close 2013 we want to Thank You for your support of Before 24 in it’s first 6 months. We look forward to launching new products, many more daily digest, and helping our readers discover more about the world of business and finance in 2014. We wish you peace, health, and prosperity in the New Year!
“For last year’s words belong to last year’s language And next year’s words await another voice.”
― T.S. Eliot, Four Quartets