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IBM pulls longtime profit goal amid earnings miss


International Business Machines Corp. abandoned a longtime earnings target seen as a test of its turnaround plans and reported sharply lower third-quarter profit on surprising softness in three of its major businesses.

The Armonk, N.Y., company on Monday acknowledged it won’t meet a goal of earning at least $20 a share next year, a forecast it has stood by for five years under two chief executives.

IBM also unveiled a deal under which it will pay chip maker Globalfoundries Inc., which is owned by Abu Dhabi investment entities, to take its unprofitable semiconductor operations off its hands.

Chief Executive Virginia Rometty said “our results this quarter were disappointing” while noting IBM experienced a marked slowdown in September in customer buying, and declines in revenue and profit point to an unprecedented pace of change in the technology industry.

“We’ve got to reinvent ourself like we’ve done in prior generations,” Ms. Rometty said during a conference call with investors.

Its shares fell by as much as 8.4% in early trading, hitting a three-year low, and were recently off 7% at $168.79. IBM’s drop helped to push the Dow Jones Industrial Average lower.

Associated for decades with large computer systems, IBM has been focusing on more profitable computing services and software businesses in recent years. But Big Blue and other old-line technology leaders have been struggling to reignite growth, as information-technology spending is shifting from IBM’s traditional customer base to younger companies that spend less money on services and brand-name hardware.

Under previous Chief Executive Samuel Palmisano, the company had pledged in May 2010 to double its earnings to at least $20 a share by 2015 by more aggressively pursuing business in software and high-growth emerging markets.

However, skepticism about the company’s ability to make the goal has grown in recent quarters. IBM has been stressing hot software areas like data analytics and cloud-style outsourcing services. But those businesses face stiff competition, and haven’t been able to offset slowdowns in hardware and older kinds of computing services.

“IBM is selling the services for the old-school Humvee when customers are buying Teslas,” said Daniel Ives, an analyst at FBR Capital Markets. “The market is evolving and IBM needs to change their strategy accordingly.”

IBM plans to offer a new 2015 forecast in January.

The company also hinted it may cut back on the massive share buyback program that helped support its earnings targets. In the third quarter, IBM bought back $1.7 billion in stock. The company had $1.4 billion remaining under its current repurchase authorization at the end of September and said it would ask to boost that figure at this month’s board meeting.

IBM, which has failed to generate a revenue increase for 10 straight quarters, had been scheduled to report results after markets closed on Monday. But the company put out an advisory Sunday saying it would announce significant news Monday and accelerate its earnings release.

IBM’s plan to divest its semiconductor operations, a big factor in the company’s third-quarter profit decline, is an acknowledgment that the rising cost of chip making is too burdensome. Though IBM was a pioneer in advancing semiconductor technology, its manufacturing capability fell behind others that produced chips in large volume.

Under the deal with Globalfoundries, IBM will pay the semiconductor company $1.5 billion to take over chip manufacturing operations, which will continue to produce processors used in IBM systems. It also took a $4.7 billion charge to earnings for the divestiture.

The deal will transfer about 5,000 IBM employees to Globalfoundries, a chip manufacturing service with a big factory near Albany, N.Y., that is controlled by investors associated with the government of Abu Dhabi. IBM stressed that it will continue to invest heavily in research to advance basic semiconductor technology, sharing that technology with Globalfoundries as a key supplier of microprocessor chips used in IBM server systems.

“We now have a safe, secure supply in our own backyard of these processors,” said John Kelly, an IBM senior vice president and research director, in an interview. “We would not have done this had we not been able to find a trusted partner.”

Globalfoundries will take over IBM facilities in East Fishkill, N.Y., and near Burlington, Vt. CEO Sanjay Jha said its Burlington plant is running at full capacity serving customers for specialized products used for wireless devices. He said the IBM plants and technology specialists Globalfoundries is acquiring, besides serving IBM’s needs, should help address an emerging category of connected devices called the Internet of Things.

The two executives said the payments from IBM–rather than Globalfoundries paying for the assets–reflect costs that company will incur in adapting facilities to serve IBM’s future needs. “We wanted to make sure that Globalfoundries was positioned for success,” Mr. Kelly said.

IBM’s other moves to reduce its reliance on hardware include a deal with Lenovo Group Ltd. to purchase a business selling commodity-style servers that use chips from Intel Corp. That deal closed in early October.

In all, Ms. Rometty said IBM has divested three businesses this year that generate $7 billion but have contributed $500 million in losses. They represented “empty calories, as some of my investors would say,” she said.

Most new computing installations use Intel-powered servers, but the business is highly competitive and has produced little profit for IBM. The company has chosen to focus efforts in hardware on mainframe systems, along with a high-end line of servers that use internally developed chips using a technology called Power. Neither did well in the third period.

Total revenue from IBM’s systems and technology segment, which includes the company’s computers and semiconductor operations, declined 15%. Revenues from mainframes were off 35%, while Power systems fell 12%.

Services, the company’s biggest business, also fared poorly. Revenue from IBM’s global business services segment fell 2.9% from the year-earlier period. Software revenue fell 1.6%.

In all, IBM reported net income for the quarter ended Sept. 30 of $18 million, or 2 cents a share, compared with profit in the year-earlier quarter of $4.04 billion, or $3.68 a share. Revenue fell to $22.4 billion from $23.3 billion a year earlier.

IBM said profit excluding items such as acquisition-related charges and retirement-related costs came to $3.68 a share. Analysts had expected earnings on that basis of $4.31 on revenue of $23.37 billion.

Chelsey Dulaney contributed to this article.

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SOURCE: http://www.marketwatch.com/story/ibm-pulls-longtime-profit-goal-amid-earnings-miss-2014-10-20

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Halliburton CEO: Oil-price drop to be short-lived


Halliburton Corp. beat analyst expectations by boosting third-quarter profit 70%, but shares in the oil-field service company rose only modestly amid persistent worries that low oil prices will slow drilling in the U.S.

Halliburton and its peers, including Schlumberger Ltd., are considered bellwethers for the energy industry because they help oil and gas exploration companies drill and frack wells.

U.S. oil prices are down more than 20% since the start of summer and worries are rife that further declines will be a continued drag on oil-sector stocks such as Halliburton’s. But Chief Executive Dave Lesar told investors on a conference call that he expected lower oil prices would be relatively short-lived.

Still, the recent slide in crude oil prices has raised questions about the sustainability of the North American energy boom. Services companies such as Halliburton are trying to convince investors that their earnings aren’t quickly going away.

Despite some stock-market gains last week, Halliburton shares are down more than 20% from a month ago. The stock was up 35 cents at $52.95 in late trading Monday.

Halliburton on Monday reported net of $1.2 billion, or $1.41 a share, compared with $706 million, or 79 cents a share, a year earlier.

Revenue rose to $8.7 billion from $7.47 billion last year.

Analysts had forecast earnings of $1.10 a share and revenue of $8.53 billion, according to a poll by Thomson Reuters.

Halliburton is a major provider of hydraulic-fracturing services in the U.S. Its North American operations posted the sharpest increase in revenue among the company’s regions, with sales rising 22% to $4.72 billion. The company reported North American profit margins of more than 20% by the end of the quarter–a target that had been out of reach in recent years.

Halliburton and its competitors have said they are putting more drilling and fracking equipment to work in places such as the Permian Basin of West Texas. The number of rigs drilling horizontal wells in the U.S. is up more than 20% from a year ago, and Mr. Lesar said the wells being drilled are bigger and require more service than in the past, something that is good for Halliburton’s business.

Halliburton’s customers show no signs they will stop activity across North America next year, though growth could be slower in other parts of the world because of geopolitical disruptions, he said.

Halliburton’s board approved a 20% increase to the company’s quarterly dividend.

Erin McCarthy contributed to this article.

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SOURCE: http://www.marketwatch.com/story/halliburton-ceo-oil-price-drop-to-be-short-lived-2014-10-20

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Cliffs plans to write down $6 billion in assets


Cliffs Natural Resources Inc. is taking a $6 billion write-down, mostly related to the ill-timed purchase of a Canadian iron ore mine intended to supply the then-booming Chinese steel market.

The hefty write-off by Cleveland-based iron ore and coal miner, announced Friday, is the latest blow to a sector reeling from a 40% drop in iron ore prices from a year earlier due largely to oversupply and slumping demand in China. Iron ore is the main ingredient in the making of steel.

As prices fall, midsize players like Cliffs are getting squeezed by major miners BHP Billion and Rio Tinto Ltd. in Australia, and Vale SA of Brazil, which produce more than 60% of iron-ore exports globally and continue to push production. The big three control massive mines, ports, and railroads, allowing them to produce iron ore at costs of $50 per ton and below.

By comparison, Cliffs’s costs at its Eastern Canadian operations were $87.50 per ton in the second quarter. That division lost $88.2 million in the first six months of 2014, after losing $30.3 million over the same period in 2013.

Cliffs expanded in Canada in 2011 when it bought Consolidated Thompson Iron Mines Ltd. and its Bloom Lake mine in Quebec province for $4.9 billion. “We have one problem child, and that problem child is Bloom Lake,” Chief Executive Lourenco Goncalves said in an interview Friday. “[Cliffs] paid too much, and we are correcting what needs to be corrected.”

At the time, Cliffs officials said they hoped to diversify from their traditional business of mining iron ore in Michigan and Minnesota and selling it to Midwestern steelmakers. Specifically, they wanted to ship ore from Canada to China, which produces around half of the world’s steel and imports around two-thirds of all the iron ore traded on global markets.

But markets have been rocked this year as the big three miners have expanded production while Chinese steel production has eased up, prompting a drop in imports and iron ore prices. The price of iron ore imports into China have fallen 40% from year-ago levels to around $80 per ton, from $134 per ton. Prices for metallurgical coal, the other key ingredient in steelmaking, have also fallen.

The price decline has especially hurt iron ore companies with operations far from China. In the first eight months of 2014, iron ore exports to China from Canada were down 19% at 7.4 million tons. From Australia, exports to China rose 34% to 353.9 million tons.

In 2011, Cliffs “over-paid and over-invested based on high iron ore price,” said John Tumazos, an investor and analyst at Very Independent Research LLC. “The write-off is not a business decision, it’s simply acknowledging what is the status quo.”

In an earlier interview, Mr. Goncalves said the big three producers “can have” the Chinese market, “I don’t want to be a part of it.”

Cliffs is seeking partners for its Canadian operations, and its Australian iron ore mines, which are still profitable but have trouble competing with the major miners. It is also seeking buyers for a chromite project in Canada, and its U.S. coal operations. Mr. Goncalves took office in August after a board coup orchestrated by activist shareholder fund Casablanca Capital LP.

Cliffs’s strategy now is to re-center its business on the five mines in Minnesota and Michigan that supply iron ore to automotive-focused steel mills with operations in the Midwest, such as ArcelorMittal. With the auto industry prospering, those mines have been profitable.

Cliffs’s stock fell 8% to $8.74 on Friday. In the second quarter, the company swung to a net loss of $1.9 million, from a year-earlier profit of $133.1 million. Last week, S&P lowered the miner’s credit rating to BB- from BBB- with a negative outlook, citing falling iron ore prices.

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SOURCE: http://www.marketwatch.com/story/cliffs-plans-to-write-down-6-billion-in-assets-2014-10-17-174855614

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M&T Bank’s profit fall, miss expectations


M&T Bank Corp., whose acquisition of Paramus, N.J.-based bank Hudson City Bancorp Inc. has been on hold for over two years, said earnings in its September quarter fell 6%, despite posting higher residential mortgage banking revenues.

The Buffalo, N.Y.-based bank, which has been investing heavily in consultants and technology to boost its compliance systems for curbing money laundering, posted a profit of $275.3 million, or $1.91 a share, down from $294.5 million, $2.11 per share, a year earlier.

Revenue, a combination of net interest income and total other income, edged down slightly to $1.12 billion. Analysts polled by Thomson Reuters were expecting the bank to earn $1.98 a share on $1.13 billion in revenue.

M&T has been squeezed by the slowdown in mortgage refinancings and rising regulatory costs. Mortgage banking revenues increased 44% in the quarter from the prior-year period.

In August 2012, it announced a deal to acquire Hudson City, though the closing of the deal has been delayed several times after regulators discovered problems with M&T’s anti-money-laundering procedures.

The Federal Reserve ordered M&T to improve its systems, and M&T said last December that it might finish the deal in the second half of 2014.

Under the deal’s terms, if regulators don’t bless the deal by the end of this year, either bank could walk away, though they may decide to keep trying.

M&T shares were inactive premarket after falling 8% in the last month.

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SOURCE: http://www.marketwatch.com/story/mt-banks-profit-fall-miss-expectations-2014-10-17

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American Express profit rises 8%


American Express Co.’s third-quarter earnings rose 8%, as revenue growth was below its target but trends in operating expenses were favorable.

American Express, which issues plastic cards and owns a card-processing network, said revenue, net of interest expense, rose 0.3% to $8.33 billion from $8.3 billion a year earlier.

The company reported a profit of $1.48 billion, or $1.40 a share, compared with $1.37 billion, or $1.25 a share, a year earlier.

Analysts surveyed by Thomson Reuters expected a profit of $1.36 a share on $8.35 billion in revenue.

American Express said card-member spending rose 9%.

The company said its revenue increase was “still below our long-term target.”

American Express said “on the cost side of the ledger, operating expense growth remained on track to come in well below our target for the full year and that’s one of the factors that provided the flexibility to invest in both the core business as well as some newer initiatives.”

The company has been increasingly looking at different ways to attract new customers, especially outside its traditional base. The company’s efforts include the Bluebird prepaid card, billed as an alternative to checking accounts that is sold at Wal-Mart Stores Inc. locations.

Josh Silverman, president for consumer products and services, said last month the company is seeking more “revolver” customers, meaning those who don’t pay off their loans in full every month.

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SOURCE: http://www.marketwatch.com/story/american-express-profit-rises-8-2014-10-15-174851627

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McDonald’s hires back another ex-U.S. executive


McDonald’s Corp. has hired back a second former executive as it tries to stabilize its U.S. business.

Karen King, retired east division president for McDonald’s USA, returned to the company this week as its Chief People Officer for the U.S.

Her arrival comes on the heels of the return of former executive Mike Andres, who once headed McDonald’s central division in the U.S. Mr. Andres was hired in August to head McDonald’s U.S. business, replacing Jeff Stratton, who had served in the role of McDonald’s USA President for less than two years.

McDonald’s has been struggling in the U.S. as a complicated menu last year slowed service and as young customers have left in favor of fast casual chains.

There have been several recent management changes at the company, including the retirement of chief operating officer Tim Fenton and the departure of the company’s U.S. chief creative officer Marlena Peleo-Lazar.

McDonald’s has faced challenges around the globe, ranging from a supplier problem in China to store closures in Russia. McDonald’s in August posted its weakest monthly sales results in more than a decade. Global same-store sales fell 3.7% in August, the sharpest decline since a drop of 4.7% in February 2003. In the Asia/Pacific, Middle East and Africa region, August sales at existing locations slid 14.5% as consumers continued to steer clear of the chain after Shanghai Husi Food Co., owned by U.S.-based OSI Group LLC, was accused by Chinese authorities of intentionally selling expired meat to McDonald’s and other fast-food chains.

Fixing problems in its home market is paramount, given its size. The U.S., which is home to more McDonald’s restaurants than any other market, with more than 14,000, posted a 2.8% drop in same-store sales in August.

McDonald’s plans to report third-quarter earnings and September sales on Oct. 21.

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SOURCE: http://www.marketwatch.com/story/mcdonalds-hires-back-another-ex-us-executive-2014-10-15

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Acology Inc – ACOL


Acology, translated from ancient Greek, means “the science of remedies”. Acology, Inc.® markets and sells the TSOS Container™. This container is the first-ever polypropylene air-tight, water-tight, smell-proof delivery and storage container with a built-in grinder. It is manufactured from medical-grade No. 5 polypropylene resin, which is non-porous and non-leaching. These containers are portable and affordable.

These containers give consumers the ability to easily store, carry and grind herbs and herbal remedies, medicines, teas, and other solids or liquids without cross-contamination or leakage.

Products

The Medtainer is versatile in it’s design, being able to traverse numerous consumer needs on the go. Through the product’s ability to embody both air-tite & grinding capabilities, we are able to transcend various markets and expand its everyday uses. Although originally engineered as a solution to break down medication for the needs of Pediatric and Geriatric patients, The Medtainer has now been adopted as an application into markets/industries such as tea, culinary , coffee , pharmaceuticals & veterinary medicine.

The Company intends to develop, market and sell other plastic container products.

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Family Dollar profit falls below expectations


Family Dollar Stores Inc. said its earnings fell 66% in its August quarter as expenses related to the discount retailer’s pending acquisition by Dollar Tree Stores Inc. and restructuring-related items offset sales growth.

The company said that in light of its pending $8.5 billion sale deal with Dollar Tree that it wouldn’t provide guidance for its recently started new fiscal year.

Family Dollar in September rejected Dollar General Corp.’s $9.1 billion tender offer to buy its shares–part of a monthslong merger saga involving the three biggest dollar retail chains in the U.S. At the time, Family Dollar suggested Dollar General’s offer was aimed more at derailing its previously reached sale deal with Dollar Tree than to acquiring the company.

In July, Family Dollar said it would take additional steps to improve its performance, including plans to expand its cooler program to attract more food buyers and to roll out beer and wine to draw more customer traffic.

During the quarter, Family Dollar’s restructuring moves included the closing of 375 underperforming stores. As a result, the company posted $10.4 million in inventory write-downs reflecting its effort to sell off merchandise at stores scheduled to close.

Chairman and Chief Executive Howard R. Levine also said that the company’s latest results reflect a difficult competitive environment and challenges facing its customers. While Family Dollar expects the current quarter will be its most challenging in its recently started new year, the company also expects momentum will build as the period progresses, he said.

For the period ended Aug. 30, Family Dollar reported a profit of $34.5 million, or 30 cents a share, down from $102.2 million, or 88 cents a share, a year earlier. In addition to the inventory write-downs, the latest period included $55.2 million in restructuring-related charges and $9.4 million in expenses tied to the Dollar Tree deal. Excluding such items, earnings fell to 73 cents from 86 cents. The company expected per-share earnings of 75 cents to 85 cents.

Net sales increased 4.5% to $2.61 billion. Analysts polled by Thomson Reuters expected $2.58 billion.

Sales edged up 0.3% excluding newly opened or closed locations, as the value of average customer transactions increased, offsetting a decline in customer transactions.

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SOURCE: http://www.marketwatch.com/story/family-dollar-profit-falls-below-expectations-2014-10-09

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PepsiCo raises profit outlook for the year again


PepsiCo Inc. raised its profit outlook for the year a second time after price increases, cost cuts and growth in its emerging markets offset sluggish performance in developed countries and foreign-exchange headwinds in the third quarter.

The better-than-expected results may be enough to help Chairman and Chief Executive Indra Nooyi fend off calls by activist shareholder Nelson Peltz’s Trian Fund Management LP to split up the snack-and-beverage giant amid a recent wave of corporate spinoffs.

Growing signs of a turnaround also could pave the way for an eventual graceful exit by the 58-year-old Ms. Nooyi, who has been fighting to rebuild her reputation among investors after PepsiCo lost market share to beverage rival Coca-Cola Co. and missed profit targets in 2011. Ms. Nooyi, who hasn’t indicated she plans to step down, has been CEO since 2006.

Net revenue at the maker of Lay’s potato chips and Pepsi-Cola rose 1.8% to $17.22 billion in the 12 weeks ended Sept. 6 from a year earlier. Net income grew 4.9% to $2.01 billion as operating margins rose for a ninth straight quarter, lifted by higher prices and productivity gains.

PepsiCo said it now expects per-share earnings to grow 9% in 2014 in adjusted terms, the second straight quarterly upward adjustment, after it raised its forecast in July to 8% from 7%. Third-quarter adjusted earnings were $1.36 a share, easily topping Wall Street analysts’ estimate of $1.29 a share.

The company in February promised $5 billion in new productivity gains over the next five years, including consolidating plants and increased automation, on top of a three-year, $3 billion cost-cutting plan launched in 2012. It reiterated on Thursday that it’s on track to return $8.7 billion to shareholders through dividends and stock buybacks this year, up 35% from 2013.

“We are confident our plans are working,” despite “sluggish” demand in developed markets and political turmoil in many parts of the world, Ms. Nooyi told analysts in a conference call Thursday.

PepsiCo’s share price hit a 52-week high of $96.22 on Thursday before closing down 37 cents, or 0.4%, at $93.57 as major U.S. stock indexes fell 2%. The company’s shares are up 13% so far this year, compared with a 4.3% gain in the S&P 500.

Revenue in Europe slipped 1% and was flat at its Americas-wide beverage unit, where North American soda volumes dipped 1.5% as consumers continue to scale back on carbonated soft drinks amid obesity and health concerns. Voters in San Francisco and Berkeley, Calif., vote next month on whether to impose special taxes on sugary drinks. Ms. Nooyi called the proposed taxes “discriminatory.”

Overall company volumes in Mexico declined by roughly 3% in the third quarter, extending a downturn after that country introduced so-called “fat” taxes on snacks and sugary drinks in January. Such taxes could weigh more heavily on PepsiCo, whose brands also include Gatorade sports drinks and Cheetos chips, if they take hold in other countries.

But PepsiCo continues to get a big boost from many less-developed markets, including an 11% jump in revenue at its Asia, Middle East and Africa division for the third quarter. Ms. Nooyi said revenue so far this year is up by double-digit percentages in India and Egypt, and by high-single-digit percentages in China, Brazil and Turkey.

Revenue has also risen by a mid-single-digit percentage in Russia this year, a key country representing about 7% of PepsiCo’s revenue, despite economic and political upheaval. Ms. Nooyi said Russian dairy and juice sales have held up well and that PepsiCo has benefited from local production and sourcing, limiting the impact of the weakening Russian ruble.

Mr. Peltz, whose Trian fund owned about 1% of PepsiCo’s shares at the end of June, has publicly campaigned since last year for PepsiCo to split its faster-growing snacks business from its slower-growing beverage business. Trian hasn’t ruled out a proxy battle ahead of next year’s annual shareholder meeting.

Hewlett-Packard Co. became the latest major company on Monday to say it would split up. More than $1.5 trillion in subsidiaries and business lines have been sold or spun off globally by corporations this year as activist investors increasingly push for them to narrow their focus.

Ms. Nooyi has remained adamant PepsiCo, which has more than 20 brands that generate more than $1 billion in retail sales annually, is better off united, arguing its size lowers costs and increases clout with retailers.

She said Thursday that more than 60% of U.S. consumers of its Mountain Dew soda also buy its Doritos chips, helping PepsiCo cross-promote the brands in stores. She added PepsiCo has lowered costs by combining marketing in China, snack and beverage distributors in India and administrative functions in countries like Russia.

“That’s the ‘better together’ story,” she told analysts Thursday.

In a survey of 100 investors published in March by Bernstein Research, 55% favored splitting PepsiCo.

In an interview Thursday, Chief Financial Officer Hugh Johnston declined to comment on Mr. Peltz or any specific shareholders. But in meetings in recent months, shareholders “have been supportive of the strategies we’re pursuing and quite happy with the results,” he said.

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SOURCE: http://www.marketwatch.com/story/pepsico-raises-profit-outlook-for-the-year-again-2014-10-09

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Daniels Corporate Advisory Co Inc – DCAC


Daniels creates and helps finance the implementation of corporate strategy alternatives for the mini-cap public or private company client. Through the full-time efforts of its senior management and the call up of members of its independent contractor specialist network, depending upon the assignment and its complexity, Daniels provides an outsourced talent pool of senior level executive with visionary talent on an affordable basis for the mini-cap company. The client pays a reasonable cash up front retainer, work-in-progress retainers and a final cash retainer determined by advisory assignment /implementation results.

Daniels aim is to work with client senior management to better understand the clients objectives and then to create and provide the client with multiple corporate strategies /opportunities for acceleration of growth that are unique and appropriate including joint-ventures, marketing opportunity agreements and/or a variety of potential acquisitions structured in LBO format. The most promising of these client opportunities will be financed by Daniels directly and/or through joint-venture with members of its capital referral network; within a deal structure not seriously dilutive to existing equity. This process presents the client with the option of entrance into new recommended market niches or unique ways of furthering expansion in existing niches. The optimum deal structure for the best business alternative, whether generic or acquisitive in nature, to accelerate growth is designed specifically to limit the amount of time necessary for the client to achieve the necessary financial criteria for listing on a Major US Stock Exchange, (American/Small Cap NASDAQ).

The Goal: Within fourteen to twenty-four months from commencement of a Corporate Strategy Assignment, financial results should be forthcoming and recorded in SEC Filings, a highly-credible, expanded Board and Senior Management Team assembled and the Exchange listing process guided to completion, all by Daniels.

THE BENEFITS

• Growth Acceleration Strategies for the Start-up and Early-Stage Development Company

• Private or Public companies; well focused Business Model and Management Team

• Cost-Effective, Independent Contractor Talent Pool for all Management Disciplines

• Professional teams tailored to specific client needs

• Visionary ideas created for expansion of client Business Model

Upon Board Approval of Business Model adjustments, advisory findings implemented with in-house capital

• Start-up client has the potential to be valued as a public company, with stock market multiple valuation, and not as a private company

CAPABILITIES

The capabilities of Daniels are many and concentrated in all the senior management disciplines. Corporate Strategy Teams of independent contractor visionaries with significant senior executive and operating management experience are formatted by Daniels to fulfill the specific needs of every assignment. Our teams are deployed and work to develop and execute a revised game plan for the client that is jointly-developed through constant interaction with their senior executives and operating management. Redeployment of assets and cash flows are usually in order, to affect the recommended expansion of the client’s Business Plan/Model. Our findings/conclusions/recommendations are a consensus; incorporating the views of Daniels’ senior management, the independent contractor strategists and client’s senior management and Board. Daniels concentrates on growth acceleration in a specifically chosen industry/market niche through a variety of novel approaches and structures including sales agency agreements; Levered acquisition/merger transactions, and joint-venture marketing opportunities, just to name a few.

THE BENEFITS

• The capabilities of Daniels are many and concentrated in all the senior management disciplines;

• Our teams are deployed to develop and execute a revised game plan for the client;

• The revised plan is jointly-developed through constant interaction with senior executives and operating management

• Recommendations are a consensus; the views of the independent strategists and client senior management and Board • Consideration is given to a variety of novel approaches including sales agency agreements; Levered acquisition/merger transactions;

• Candidate selection risk is limited; those candidates chosen are primarily new product additions to a successful, existing product mix. A foreign manufacturer can launch a new product addition specifically designed/chosen for U. S. Distribution through a jointly financed and managed Sales Agency. Daniels becomes their presence in the US market place by providing talent for concentration in its recommended market niches.

• Start-up client has the potential to be valued as public company, with stock market multiple valuation, and not as a private company.

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