Archive for February 4th, 2008

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General Motors‘ (NYSE: GM) GMC had an ad on last night’s Super Bowl for the first time in years. It cost something in the neighborhood of $5 million to broadcast, and if you’re a GM stockholder, you might want to ask: why did GM waste so much money?

The ad (you can see it below) is a spare, black and white cartoon of a human figure rolling a massive boulder up a hill. The figure works immensely hard, pushing the rock for over 45 seconds — an eternity in Super Bowl ad time. Finally, he gets the rock to the peak of the mountain. Fade to a white GMC Yukon hybrid, which, according to the ad, gets 50% superior mileage than a regular Yukon.

There are a number of problems with the ad. First, it brings to mind Sisyphus, who in Greek mythology is condemned to push a boulder up a hill and then watch it roll back down, over and over again, for all eternity. In other words, to do something that’s both back-breaking and utterly pointless. And this makes me wonder, what is the point of squeezing a few more miles per gallon from a gigantic, wasteful truck? The hybrid Yukon gets a paltry 21 mpg — hardly worth celebrating. A better idea would be to just get rid of the thing altogether. Stop rolling that boulder up the hill! GM would be much superior off if it concentrated on making smart, fuel efficient automobiles rather than fighting gravity by trying to make a large truck perform like a Toyota Prius.

The other problem with the ad is that it is slow and offers very tiny by way of persuasion, either in terms of zany entertainment or sober fact. I’m not alone in this conclusion, since the ad is getting consistently negative reviews. Students at Northwestern rated the ad among the worst from the 2008 Super Bowl for both marketing and entertainment purposes.

You can take a look for yourself:

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Last night’s Super Bowl might have been the most watched telecast ever, according to preliminary data compiled by Nielsen Media Research.

Ratings for the contest between the New York Giants and New England Patriots were up 9% from last year. Figures for the number of viewers weren’t immediately available from Nielsen. The most watched program of all time was the 1983 finale of “M-A-S-H.” Until now, the most-watched Super Bowl was in 1996 when the Dallas Cowboys defeated the Pittsburgh Steelers.

Shares of News Corp (NYSE: NWS), whose Fox Network broadcast last night’s game, are down 18% over the past year as Wall Street worried that Rupert Murdoch’s media empire would be hurt by a slowdown in advertising spending and the Hollywod writers’ strike.

New York-based News Corp also is set to report fourth quarter earnings after the close of trading today. Analysts are expecting the media conglomerate to report earnings of 28 cents on revenue of $8.26 billion, according to Bloomberg News.

Sanford C. Bernstein analyst Michael Nathanson expects profit at Fox TV to have increased 62% to $181 million, helped by higher advertising sales, Bloomberg stated. Thanks to the Super Bowl, that business should continue to perform well for several more quarters.

The other big winner from the Super Bowl will be New York Giants quarterback Eli Manning and his brother Peyton, the Indianapolis Colts quarterback who lead his team to victory in last year’s Super Bowl. Peyton has become a ubiquitous Television pitchman since the game. There is no doubt that advertisers would probably give their left arms to have both Manning brothers endorse their products.

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Cops state mother, daughter are serial home trashers
Miami Herald - BSO deputies respond to a call from an Oakland Park duplex in which they found 46 dogs and three cats. The mom and daughter who abandoned 49 animals in a filth-ridden Pompano Beach home Sunday morning had previously left a rental home less than

PrivateBank - Chicago exec sells stock
MSN MoneyCentral - PrivateBank - Chicago is a subsidiary of PrivateBancorp Inc., a provider of banking services to businesses and high-income clients. In a Form 4 filed with the SEC, Gary Collins, executive managing director and vice chairman of PrivateBank Chicago

Making Sense of Microhoo
Street.Com - He doesn’t own shares, but his firm has had an investment banking relationship with Shire. Regardless of the rating, NRP-104 will be an important addition to Shire as it continues its efforts to be the biggest name in ADHD treatments and at the

Allstate tells why it didn’t drop rates
Miami Herald - Bill Posey, chairman of the Senate and Banking Committee. Bonnie Gill, Allstate Floridian’s vice president, explained that Allstate’s rate-making process is based on losses it expects to incur on customers in the next year. It doesn’t include

That hairshirt! I have to have it
Times On the internet - Then, of course, there’s the credit crunch and the banking panic, aggravated by the fact that it now looks as if the Government can’t even give away Northern Rock by promising to pay its debts for ever. The latest pleasing manifestation of this

Tully’s on the market?
Seattle Post Intelligencer - Tully’s Coffee Corp. has hired an investment-banking firm to pursue “strategic alternatives” that could include the sale of the scrappy Seattle-based chain. “There are a lot of people who think quite highly of our brand and products. If run properly

Minnesota Wild Players and Cub Foods Customers Run Wild in Grocery
Forbes - In addition to innovative natural, ethnic and certified organic food sections, Cub stores offer shoppers added conveniences, such as in-store pharmacy and banking. Cub Foods was established in 1968 as one of the nation’s first discount grocery stores

NC will pay for foreclosure counselors
CNBC - More than 20 nonprofit counseling groups have agreed to participate in the program, in which $1,000 will go to the group for each homeowner whose home that group helps save, Deputy Banking Commissioner Mark Pearce said. Cooper and Commissioner of

NewAlliance to Present at Two Banking Conferences
Forbes - Peyton R. Patterson, NewAlliance Chairman, President and Chief Executive Officer, and Merrill B. Blanksteen, Executive Vice President, Chief Financial Officer and Treasurer, will make a presentation at the Sterne Agee Third Annual Bank and Thrift

Economy drives up vehicle loan defaults
Detroit News - But the cuts take months to flow through the banking system and prompt increased lending. Some lenders who focus mainly on subprime borrowers with shaky or thin credit histories have announced plans to scale back their lending this year. One such

S&P 500 Leaders & Laggards: ABK CMI
Forbes - Washington Mutual Inc. declined $2.66, or 12.2 percent, to $19.16, as banking stocks were among the hardest hit in the session. And financial company CIT Group Inc. lost $3.03, or 9.9 percent, to $27.65. The lender was likely hit with credit concerns

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Punch Taverns in buyout speaks
MSN MoneyCentral - Mitchells and Butlers recently announced it had lost 274 million pounds ($538 million) in a collapsed property deal and an interest rate hedge, leading to the resignation of its finance director. The group stated it was launching a strategic review of

Top quotes from the Islamic Finance Summit
Reuters - “In Islamic banking, there’s no black box that needs a genius to unwind it. Many of these conventional products that have been under stress lately are very complex and need special risk management tools. In Islamic banking you’ll not have this

Paris shares higher lunchtime, buoyed by US gains, M&A speak
Forbes - Local dealers gave some credence to the talk, saying that the upcoming sale of publishing company Editis would enable Wendel to finance the stake increase. Among other risers, Gaz de France was up 0.82 or 2.22 pct at 37.75, helped by an upgrade to

Lagarde States SocGen Controls Failed, Seeks More Risk Management
Bloomberg - Feb. 4 (Bloomberg) — French Finance Minister Christine Lagarde pushed banks to better manage risk after saying Societe Generale SA’s controls “clearly” failed to avert a trader’s deals that led to a 4.9 billion-euro ($7.2 billion) loss. Banks

Euroshares higher midday as Wall St seen adding to gains; M&A hopes
CNBC - Shares in Xstrata fell 1.85 pct after reports Brazilian mining group Cia Vale do Rio Doce fired Merrill Lynch as co-lead adviser after the investment bank decided not to help finance a potential 90 bln usd takeover bid for the Anglo-Swiss group.

Mother Earth Mother Board
Wired - In which the hacker tourist ventures forth across the wide and wondrous meatspace of three continents, acquainting himself with the customs and dialects of the exotic Manhole Villagers of Thailand, the U-Turn Tunnelers of the Nile Delta, the Cable

Click thumbnails to zoom
Detroit Free Press - Members of AWARE include the American Financial Services Association, National Automobile Dealers Association, National Association of Minority Automobile Dealers, American International Vehicle Dealers Association, and auto dealers and finance

Dexia Provides USD 500 Million (EUR 340 Million) Additional Capital to
Forbes - These resources will add capacity for FSA to take advantage of increasing opportunities that have recently arisen in the U.S. municipal and public infrastructure finance markets. FSA’s Triple-A ratings have been recently affirmed by Fitch, Moody’s

Wealthy Business Owners Live to Work, Regardless of Net Worth, PNC
Forbes - Inc. (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance

A Reason to Vote Hillary
Slate - Mickey’s Single Issue Voter’s Guide: Suppose you were a single issue voter, and your single issue was immigration. Specifically, you were opposed to legislation that combines some form of amnesty (legalization of existing illegal immigrants) with

Personal finance: Where credit is due
Newsday - Bob Friedrich always pays his bills on time . . . well, almost always. Three years ago, he sent in his monthly mortgage payment as usual, but it got lost in the mail. He thought the problem was history after he paid the overdue balance the following

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