Prince against PrinceCosts oh yes it hurt

Men know that it can happen at any time, a failure is always traumatic. Yahoo! is not his first experience in the matter, but this warning is more serious than the previous. Measured over one year, the growth in the last quarter even illusion. Sequentially, what is the truth of a still young society and facing strong competitive pressure, the fiasco is palpable. Since two quarters, turnover and cash flow of the first Internet portal are stalled in the United States. Only the international, which represents a third of the total, keep a minimum of force. But, with an earnings per share which, him also, stagnant for six months, and won 20 in fifteen months, Yahoo! is for the time being out of the different where should evolve a title which was valued more than 60 times its expected end of 2006 profits. The question is now to assess how long the incident will last. Recognizing need for three additional months to develop software technology intended to boost advertising sites effectiveness, Yahoo! has cooled the most ardent supporters. 9 Billion dollars of capitalization lost yesterday as soon as the first trade brought two years back a course already battered since January. It is a setback too violent to be erased without recurring evidence of a return to full form.

Communicating vessels

What fate weighs on the seniors of the Dow Jones With General Electric, Citigroup and a few others, is IBM part of these sacred monsters of Wall Street who changed President a few years ago and is still cannot to entice investors. The computing giant is the same level as on arrival at the orders of Sam Palmisano four years ago, while the index has taken over 35 in the meantime. Is under 13, the ratio of recovery of profits is historically lower than that of Hewlett-Packard, impecunious, but nobody seems to see an opportunity to purchase. Yet, IBM has changed in the meantime, out of the PC market, becoming the most Indian it services Giants giants, focusing on its activities with greater added value and margin. But a last quarter only "good", there where the previous could be characterized as "excellent", is the fundamental problem: the inability to recreate a sustainable dynamics. Lack of a better, IBM has been reduced to highlight regular redemptions of its own shares. But, at the rate of 2.5 billion dollars and 5 of its securities in circulation per quarter, it is a little as if the senior group provided to the market to purchase resources, Google in mind, the new generation of high-tech values. A daunting variant of the communicating vessels.

Prince against Prince

Costs, oh yes it hurt. Charles Prince, CEO of Citigroup, is rightly tell on its management by its shareholder to 4.3, the Saudi prince Alwaleed. Expenditure notice some 16 when revenues rise by 10, this is disorder for the first American Bank. Then difficult not to be carried away by the euphoria, in periods of high activity Analysis of the performance of its rivals gives an interesting light. Bank of America, the second player in the sector, much better, it is undeniable. With its profile very large Bank, he managed to contain its coefficient of operation, the relationship between costs and revenues, around 48 in the second quarter. JPMorgan Chase, the third, has the advantage to go very far, as a result of the acquisition of Bank One in 2004: it can only improve. Nevertheless, on the part Investment Bank, where the Group operates an incredible bond, its ratio expenditure of personal income degrades from 43 to 45 of one quarter to another. Of Citigroup, he passes from 37 to 38: this is so much better for the number one, who had posted a disastrous 43 in the first quarter. For once, it is not the bonus of the traders which deprive shareholders of the benefits of growth. A much consolation.