Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary “reading list” which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for “reading list” items are gratefully reviewed, although sometimes space limits the number included.
- Fallen Bodies, Jet Parts and a Child’s Pink Book (Sabrina Travernise, The New York Times) Bodies, debris and plane parts fell over a 4-6 square mile area.
- Malaysia Airlines Plane Brought Down by Missile in Ukraine: US Official (Colleen Curry and Luis Martinez, ABC News) Ukraine claims it was a ground-to-air-missile from Russian separatists; the separatists claim it was Ukrainian forces which was responsible. Earlier this week two Ukrainian military aircraft were brought down by rebel surface to air missiles. The latest video summary from ABC News is below – other videos accessible via the article title link.
- IBM Shares Drop After Hours Despite Beating Q2 Earnings, Revenue Estimates (Alex Konrad, Forbes) IBM’s second quarter earnings were up 34% year-over-year at $4.32 per share. But revenue continued to decline, although at a slower rate that in recent previous quarters. The $24.4 billion earnings for 2Q/2014 was 2% below the same quarter a year ago. The negative implications of IBM’s continuing revenue contraction and the company’s reactions were discussed ‘behind the wall’ yesterday. That article discussion is repeated below.
- DRUCKENMILLER: IBM Is The ‘Poster Child’ For What’s Wrong With Corporate Behavior Today (Myles Udland, Business Insider) Repeated from ‘behind the wall’ yesterday. Stanley Druckenmiller says IBM is no longer a computer and software engineering company but a financial engineering company. They have the same sales as six years ago and have increased debt three fold to buy back stock and boost earnings per share by financial manipulation. He then goes on to say that IBM is not alone in this endeavor, many other corporations are doing the same thing. The article includes a graph from Ed Yardini which shows how 2014 is paralleling 2007. Note that the same behavior did not occur at the 2000 top – there was another mania going on then.
- Seven arrested in alleged penny stock pump-and-dump (Scott Cohn, CNBC) Hat tip to Marvin Clark. Abraxas J. (“AJ”) Discala, CEO of Rowayton-based OmniView Capital, a privately held investment-advisory and merchant-banking firm, is one of seven people arrested by federal authorities in what is alleged to be a “wide ranging pump-and-dump scheme” involving penny stocks. The micro-cap stocks involved were identified as:
CodeSmart, which purportedly provided guidance to health-care providers on Medicare billing codes; Cubed, which claimed to offer “a cloud-based, three-dimensional, functional cube” application for mobile device users; purported movie studio StarStream Entertainment; and purported staffing provider The Staffing Group.
There are 12 articles discussed today ‘behind the wall’.
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