Ronbowlens - Ron's Blog

With everyone’s attention turning to the debt ceiling X-Date of October 17 (or sooner now that the Pentagon is once again spending money like a drunken sailor following the recall of 400,000 workers or half of the total number fuloughed), some are wondering why is the stock market not reacting more violently. The generic response that has formed is that despite all the feamongering by Obama and the Treasury, even crossing the X-Date will hardly result in the apocalyptic outcome that so many predict as the Treasury can “prioritze payments”, i.e., paying some bills and not others, which as we explained before, means paying down debt obligations first, and everything else - whose non-payment does not constitute an event of default under US debt - last. In other words, if the US were to merely live within its means, it should have no problem remaining current on its interest expense even if that means slashing most other government programs.

Continued

Google Glass Explorer Edition

The frothing excitement around these prototype, titanium-framed wearable computers has the tech world tripping over itself, but big what, why, and how questions remain. CNET dives in to clear up the reality -- and the future possibilities -- of Google Glass.

Google glass is a cool idea but the commercials take it way further than what is possible. 

After offending much of his market base, Lululemon chairman and founder Chip Wilson will step down, according to a press release from the company. 

Wilson has been at the center of a firestorm of bad press after he said some women’s bodies just “don’t work” in the brand’s pants. This fall, Wilson responded to criticisms of low quality by saying that women’s thighs that rub together were eroding the pricey brand’s athletic clothing.

(Photo by Lucas Jackson/Reuters)

VIDEO: Wal-Mart’s China Plan To Focus On E-commerce

Wal-Mart Stores, the world’s biggest retailer, is expanding its China business as it seeks to…

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These two are now available as prints at: www.redbubble.com/people/simonstalenhag

Women’s halfpipe qualifier kicking off shortly here @CopperMtn. 30+ women set to drop, 12 advance to finals. #GrandPrix #UnderTheLights #Freeskier #Skiing (at Copper Mountain Resort)

Are you in Times Square today? Stop by the NASDAQ MarketSite on 43rd Street for some FREE Ice Cream courtesy of #Tumblr & #Coolhaus in celebration of #AdvertisingWeek2013! From 12:30 pm to 4:30 pm! #awx #tumblrcoolhaus

Tesla runs out of juice again

Tesla cars are so fricken cool!!! Prices for the cult stock Tesla tanked again this week. Tesla this week reported a better than expected Q3 earnings report, so why did the stock tank? Essentially Tesla has become so hyped that anything better than perfect will cause turmoil for this stock. So much performance is expected form the company that to not perform to that expectation will effect the stock price. In this quarter Tesla outperformed their own goals of selling 5000 new model S cars, however investors were expecting no less than 5850 cars. Tesla delivered around 5500 new models. Now the problem is not that there is not demand for the car. Tesla actually can not keep up with their demand, and this is not their fault. Currently they are having shortage of batteries which is slowing down sales. Even though this set back is not Tesla's fault it still had a negative affect on stock price because of the unreasonable expectation set for the company. The result of this set back send stocks plunging yesterday dropping  from $176 to $142 where it sits today. The fall was so rapid yesterday it triggered the exchanges short sale circuit breaker (this does not happen often). This breaker temporarily stops sales of borrowed shares. Analysts estimate the stocks actual value is somewhere around 141$. However with the amount of hype and attention the company is getting, this stock will likely still see a lot of dynamic change. Rising on minor achievements and crashing on small setbacks.

Lazard has $100 million more for investments

By Brett Cole

Lazard Australia Private Equity Ltd has made only one investment from its 2011, $120 million fund but that investment in sportswear company 2XU has been spectacular. It may however be hard to repeat as Lazard looks to make as many as five more investments with the $100 million left in the fund.

Gareth Young, director of Lazard Australia Private Equity, told DataRoom the fund’s realised return from its 2XU investment is in excess of two times money multiple, or a 50 per cent internal rate of return, per annum.

Lazard has sold some of its shareholding in 2XU to LVMH Moet Hennessy Louis Vuitton SA, enabling it to monetise an investment that is just two years old.

Lazard Australia has until 2021 to invest and liquidate investments from its second fund that will take stakes of up to 49 per cent in companies headquartered in Australia. The firm’s 2006, $330 million fund is fully invested and Lazard has five investments to sell from the fund in the next couple of years.

The firm’s $120 million fund usually takes minority stakes in companies using a minimal of leverage. Six people, mostly in Melbourne, work on investments.

Young says the Lazard fund is not a leveraged buyout or venture capital investor but a “corporate opportunities fund” that has no sector specialty and invests along “macro thematic” lines.