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   Strategies & Market TrendsSpeculating in Takeover Targets

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To: waitwatchwander who wrote (4630)11/6/2017 10:19:34 AM
From: richardred
   of 6274
Sorry, I've never owned an ETF fund. So I can't give good personal knowledge on the matter. However, I've found this older link that might be of some help with your question.

snip> it is the fund firms that maintain the right to vote in corporate elections. “Most investors don't know that when they buy an ETF, they also give that ETF the right to vote at all the underlying companies owned by that ETF.

ETF Proxy Voting Records In Focus by Michael Johnston on July 8, 2009

For the last several years, ETFs have been the darlings of the financial world, widely praised for their ability to offer cheap, diversified exposure to nearly every corner of the market and the flexibility that sets them apart from traditional open-end funds. And while there is little debate over certain advantages of ETFs, it is beginning to seem like the honeymoon with the financial press is over, as many analysts are digging a litter deeper into the nuances of exchange-traded products and discovering that they are not without their flaws. Last week, The Wall Street Journal’s Ian Salisbury delved into the proxy voting habits of ETF firms, revealing some rather intriguing and potentially alarming patterns.

As indexing and passive investing strategies have become increasingly popular, the power wielded by ETF firms over the management of some of the world’s largest corporations has grown significantly. While the interests in these companies represent the assets of individual investors throughout the countries, it is the fund firms that maintain the right to vote in corporate elections. “Most investors don't know that when they buy an ETF, they also give that ETF the right to vote at all the underlying companies owned by that ETF,” says Jon Lukomnik, program director at the Investor Responsibility Research Center Institute (IRRCI), the organization that completed the study. ETF firms argue that they are best equipped to handle the voting process and represent their investors’ best interest, while some critics have argued that they’re “asleep at the switch.”

Study Results The study examined the proxy voting policies and and recent voting records of seven of the largest ETF sponsors ( iShares, SSgA, Vanguard, Invesco PowerShares, ProShares, Rydex, and WisdomTree). “Our analysis revealed wide variation in both the voting policies of the seven dominant ETF sponsors, as well as how they actually voted on a sample of twenty-one specific votes on a variety of important governance and social policy issues,” said Scott Fenn, senior managing director for policy at PROXY Governance. The proposals in question ranged from executive pay at Comcast to whether to appoint an independent chairman at Exxon Mobil. Among the specific findings:

  • ProShares voted with management on only five of the 21 proposals, while Rydex sided with management on 19 of them. The rest of the fund firms fell somewhere in between. As such, there is significant variation in the voting philosophies and patterns of the largest ETF sponsors, with some funds much more likely to vote against management on both shareholder and management-sponsored proposals than other funds.
Issuer % Votes Against Management Proposals % Votes For Shareholder Proposals (Governance) % Votes For Shareholder Proposals (Compensation) % Votes For Shareholder Proposals (Social Issues)
iShares 16.7% 71.4% 0% 0%
State Street 33.3% 57.1% 50% 0%
Vanguard 16.7% 28.6% 0% 0%
PowerShares 66.7% 100.0% 100% 0%
ProFunds 33.3% 100.0% 100% 80%
Rydex 0.0% 14.3% 0% 20%
WisdomTree 40.0% 83.3% 33.3% 0%
(Keep in mind that there is a relatively small sample size for each proposal category. Also, it is noted that Vanguard regularly abstains on social and environmental proposals)

  • The three largest ETF sponsors are somewhat less likely to vote against management on shareholder proposals than are the smaller fund companies considered in the study. The three largest issuers also withold votes from incumbent director nominees at a greater number of companies than small funds. This appears to indicate that the witholding of votes is their preferred method for expressing dissatisfaction (rather than voting against management on specific proposals).
  • Funds that rely heavily on a proxy advisory firm for guidelines tend to vote against management proposals (and in favor of shareholder proposals) more frequently than those that rely on their own guidelines.
Since ETF firms are often among the largest individual shareholders in individual corporations, their voting policies can have important ramifications on shareholder protection and corporate governance. If major fund firms are unlikely to challenge management on controversial proposals, it is possible that the rise in popularity of ETFs has been detrimental to investor rights. But the results of the study are far from conclusive, and they seem to indicate that many fund firms do an excellent job of voting in an informed manner that is consistent with the best interests of their investors. In short, while the IIRCI study doesn’t indicate and devastating oversights by ETF firms, it does raise a few red flags and highlight another area that investors should consider carefully when choosing between particular ETF sponsors.

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To: richardred who wrote (4549)11/6/2017 12:11:33 PM
From: richardred
   of 6274
Re-entered DLTH today. For some strange reason thinking of the Zappos acquisition by Amazon. At this point in time. In due time I see Amazon going more brick in mortar. Whole Foods just might be the start of a trend. This time only more smaller niche acquisitions they can continue to grow as not to stir the pot. As JCP & Sears and most clothing retailers are struggling. This company seems to getting it right.

CO. SNIP> Duluth Trading is a rapidly growing lifestyle brand for the Modern, Self-Reliant American.

Based in Belleville, Wisconsin, we offer high quality, solution-based casual wear, workwear and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and our products are sold exclusively through our content-rich website, catalogs, and “store like no other” retail locations. We are committed to outstanding customer service backed by our “No Bull Guarantee."

P.S. Carhart is another a company who's product I use and reminds me of Duluth. Woolrich is another.

>Carhart sells via many kinds of retailers but refuses to allow discount stores such as K-Mart to carry its products in order to protect its brand.

>Woolrich Awhile back the company announced they had plans to move more of their workforce to the United States.

Can textiles come back to the USA again? Many of these retailers had to cut their US workforce to MFG. overseas to be competitive. Just maybe customer experience. Along with excellent marketing, and US factories manned by efficient equipment can change that.?

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From: richardred11/6/2017 6:23:35 PM
   of 6274
MNTX -8K The dreaded accounting issues. I didn't see this one coming!

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To: richardred who wrote (4633)11/7/2017 9:02:40 AM
From: The Ox
   of 6274
Yes, a black eye but doesn't look devastating for MNTX. It also sets up a relatively perfect double top. A lot of support in the $7.50 range and below $6 could be a long term gift at this point?

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From: richardred11/9/2017 10:08:53 AM
   of 6274
RE-SNAK Taking my lumps. Sold out of my take under for redeployment elsewhere.

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From: richardred11/12/2017 9:29:36 PM
   of 6274
New HSBC chairman Mark Tucker eyes American takeovers

Aimee Donnellan
November 12 2017, 12:01am, The Sunday TimesHSBC has a troubled past in US acquisitions, but its chairman maintains an ‘optimistic view’ of future expansion

HSBC’s new chairman Mark Tucker has told investors that he is on the prowl for acquisitions, with American credit card businesses among his targets.

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To: richardred who wrote (2863)11/20/2017 10:29:48 AM
From: richardred
   of 6274
MRVL buying CAVM for $40 cash plus 2.1757 share. Mr McWilliams was spot on. SNIP> In his special report, McWilliams discussed eight of the companies he thinks are most likely to show an interest in Cavium. These include Marvell Technology (NASDAQ: MRVL

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To: richardred who wrote (4429)11/20/2017 10:45:05 AM
From: richardred
   of 6274
RE- RELY filed chapter 11 last Fri. I will be taking two lumps with my JVA. Most chapter 11's these days have nothing left for shareholders after re-organization? I'm just guessing this one might stand a chance. Holding to zero or whatever upside might be in the future.

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To: richardred who wrote (4632)11/24/2017 5:47:51 PM
From: richardred
   of 6274
Alibaba continues to increase its “bricks & mortar” presence

21 November 2017

In June this year when Amazon announced its $13.7bn offer for Whole Foods, there was a lot of media comment about the deal finally representing a move towards “physical” locations, as well as being an e-retailer, and many commentators seemed transfixed by this.

However, what seemed to go relatively unnoticed was the fact there is already a precedent of a global e-retailer looking to physical locations in order to help it fulfil the next stage of its strategic plan. Alibaba, the Chinese e-commerce conglomerate, had already started to invest in “bricks and mortar” retailers as far back as 2014, and yesterday saw it continue with this strategy with the announcement of its acquisition of a 26% stake in Sun Art Retail Group, the Hong Kong-based hypermarket operator.

For Alibaba, this deal represents its fourth acquisition of a “physical” retailer, after acquiring the remaining 53% of Intime Retail earlier this year, as well as minority positions in household appliance retailer Suning Commerce and Lianhua Supermarkets in May 2016 and May 2017, respectively.

The underlying driver for both Amazon and Alibaba in making these acquisitions is to access data held by the target companies, and also to bring together the two worlds of online and offline commerce for all parties involved.

Alibaba’s CEO, Daniel Zhang, is quoted as saying that “physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalized services in the digital economy”. He also said: “By fully integrating online and physical channels together with our partners, we look forward to delivering an original and delightful shopping experience to Chinese consumers.”

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To: richardred who wrote (4614)11/24/2017 5:54:23 PM
From: richardred
   of 6274
Shanghai Pharmaceuticals to purchase Cardinal Health’s unit Shanghai Pharmaceuticals Holding is acquiring Malaysia-incorporated Cardinal Health L (Cardinal Malaysia) for USD 1,200 billion, subject to further adjustments based on the target’s working capital, existing cash and assumed debt. The buyer has obtained financing from third party financial institutions and is making the purchase via its Shanghai Pharma Century Global arm. Pending approval from China’s Ministry of Commerce, the deal is expected to complete by the end of Cardinal Health’s fiscal year.

The target is a holding unit which controls all of the China-based business of Cardinal Health, a New York Stock Exchange-listed pharmaceutical supplier. Billed as a global and integrated healthcare services provider, the Dublin and Ohio-headquartered group operates through five segments: pharmaceutical distribution, medical devices distribution, hospital direct sales, speciality pharmaceuticals and speciality pharmacies and commercial technology.

Cardinal Health currently serves almost 11,000 medical institutions and other downstream customers through 30 direct-to-patient pharmacies, 14 direct sales companies and 17 distribution centres in China. It provides drugs, medical devices, surgical supplies, speciality pharmaceuticals, vaccines and diagnostic systems and equipment in major cities ranging from Beijing and Tianjin to Dalian and Wuxi. In all, the business owns a storage area of about 146,000 square metres and 7,000 square metres of cold storage capacity.

Cardinal Malaysia posted operating revenue of CNY 25,518 million (USD 3,848 million) and earnings before interest, tax, depreciation and amortisation of CNY 553 million in H1 2017. It also had total and net assets of CNY 12,890 million and CNY 1,909 million, respectively, as of 30th June 2017.

The announcement comes as China is planning a reform to tighten oversight of its fragmented healthcare industry, a move that could significantly slow Cardinal Health’s business growth. An unnamed person familiar with the matter previously told Reuters: “The new policy is likely to squeeze margins for most distributors in China. They will be under pressure for future profitability. It does make Cardinal and others worried.”

From Shanghai Pharmaceuticals’ perspective, the deal serves to widen its distribution network, particularly in Shanghai, Beijing, Zhejiang, Tianjin and Chongqing, among other locations. Commenting on the transaction, the buyer’s chairman Zhou Jun said: “Amid the national healthcare reform, the acquisition of the Cardinal Health China business will further strengthen our leadership in the distribution and retail pharmacy network, and expedite our transformation to become a modern global healthcare provider.”

Last July, Cardinal Health successfully carried out its largest deal on record to buy the medical supplies businesses of Medtronic for USD 6,100 million. In a much smaller transaction early this year, Cardinal Health purchased 6 per cent of Navidea Biopharmaceuticals, an Ohio-based diagnostics and radiopharmaceutical medical products maker, for around USD 7 million.

© Zephyr

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