Never eat more than you can lift." ~Miss Piggy

Never eat more than you can lift." ~Miss Piggy

Blog Date: 1/23/12

Blog Author: Saniya Khan, Accounting and Finance

If you're in business, there will come a time when it becomes necessary to talk work outside the office in the form of a business dinner, breakfast, or lunch. Maybe you're one of the lucky ones who have been making deals since your diaper days about nap time and can't wait to get down to business. But maybe you're a little more on the shy side and the thought of making small talk while eating and remembering to mind your manners and fitting in something about your company is a bit more daunting. Not to worry, your business days don't need to be over just yet. Conversing is an art. Business doesn't need to be uptight and impersonal. And an invitation to share a meal is the perfect way to become more familiar with the other person.

But how? I just recently read Don Gabor's "Talking with Confidence for the Painfully Shy" and I'd like to go through five basic rules of business dining, as adapted from that book:

1. Know your business purpose. Are you discussing a new marketing plan or using this meeting to gather information for a sales presentation? Always keep this purpose in mind.

2. Balance talking with listening. Talking about yourself and sharing the information you have to contribute to the purpose of the meeting is very important. But people like to talk about themselves too, so remember to listen.

3. Know when to have small talk and when to transition into business mode. Often the meal will start out with small talk and, depending on the length of meeting, the focus will eventually shift to your business purpose. But how do you bridge your conversation without sounding forceful or being abrupt? This brings us to the next point.

4. Bridge smoothly from small talk to your business topic. Tactfully changing the focus from everyday musings to the main idea is important. Gracefully steer across several conversations to your business topic by taking key phrases from the conversation and relating them to your own business purpose.

5. Eat and converse at calm rates. Pace yourself moderately regarding your meal and your conversation. Don't speak so fast that no one can understand what you are saying, but don't bore the person to sleep either. You can gauge yourself by eating at the same pace as your dining companion.

Now the basics are covered, but depending on the time of day the meal is chosen to be shared, how conversation should proceed will vary.

The Breakfast Meeting: These power breakfast meetings are shorter than lunching and dining, lasting only around 45 minutes total, so adjust accordingly. Small talk can lead up to ordering and pouring the first cup of coffee. After a couple of minutes, once you are sure your partner is actually awake and alert, shift gears to the business topic you want to discuss, and take it away.

The Business Lunch: Lunch time offers a break from the office and a chance to interact with the rest of the world and will usually last from about an hour to an hour and a half. More time for small talk and socializing is available so take advantage of forming a personal connection. Remembering to bridge the conversation after sufficient family vacations and hot topics have been discussed, you can then proceed to your main topic of conversation.

The Dinner Meet-up: Similar to the lunch meeting, time to socialize is available before food arrives. Creating a relaxed and comfortable environment is important, so avoid topics like politics, sex, and religion. Before narrowing in on your main topic, or if you are done discussing business before the meal ends, inquire about general business practices and the philosophy of your partner and what his "big picture" is for his company and how he goes about managing his people. Gaining this insight can also lead to more in-depth conversations which forms a better rapport.

Now that a nice meal has been shared and business has been taken care of, it's time to part ways. As the recipient of a nice meal, be sure to thank them. But instead of ending the meeting abruptly, opt to letting your meal partner know that you will be sending him a recap of the main points that were discussed and what conclusions had been reached to close the deal. End on some light conversation, and you have just concluded a successful business meal meet-up. And now that you have gained this experience, the next business lunch won't seem as daunting!

Adapted from Don Gabor's Talking with Confidence for the Painfully Shy

Let's Order Now: An Appetite for Success

Let's Order Now! An Appetite for Success

Blog Date: 12/05/11

Author: Eric Haslbauer, Accounting Major

Lets Order Now, affectionately referred to as LON, is a start-up company taking leaps and bounds in the small business industry. Lets Order Now^TM officially went live on 11/11/11, making the company less than a month old. Despite its nascency, LON is generating big press. M. ‘Wazi'hullah, Professor, Director: Molloy College, Entrepreneurship & Small Business Institute, is the creator and CEO of Lets Order Now. He appeared in a full page article in Long Island Business News explaining his new company. Verizon Fios Channel 1 News also aired a segment on Lets Order Now, describing the goals and ideas behind the company. So what is Lets Order Now? What are the goals of LON? And what kind of company is it?

Lets Order Now is an online social ordering system. From the perspective of a user (someone ordering from LON), this website eliminates lunch frustration. After creating a free personal account on the site, it automatically keeps track of the user's address, tastes, payments, and favorites. There are two options for ordering lunch: 1) Cuisine Calendar and 2) I Wanna Choose. Cuisine Calendar offers a certain restaurant that is specifically delivering to the user's building. I Wanna Choose is for those who do not want to order lunch from the Cuisine Calendar, enabling them to select any type of food from any restaurant that delivers to that building. Now here's the fun part! When ordering through Cuisine Calendar, the price of a meal goes down as more co-workers order. Essentially, the more people you have ordering from Cuisine Calendar, the cheaper it is for everyone! Lets Order Now's slogan "Simple Social Ordering"^TM clearly summarizes the main elements of the company. It's a quick and easy way to order cheap lunch with friends and co-workers.

On the other hand, Lets Order Now is great for restaurants too. From their perspective, this website lowers preparation and delivery fees, benefitting the restaurant. By informing the restaurant owner of a large order (30 to 40 people), the restaurant can deliver a sizable amount of meals to one location. Instead of delivering two or three orders at ten stops, the restaurant can make one trip delivering to 30 or so people. This process greatly decreases the restaurants fulfillment costs while at the same time enabling them to sell to a wider market segment. This is the magic of the whole company! In essence, it's the best of both worlds! The customers are happy because they are paying less, and the restaurant owners are happy because they are selling more. What is there to lose?

An additional aspect to Let's Order Now is that a group of about 16 students, graduates and undergraduates, are working as the Customer Order Representatives (COR). The CORs serve as the agents who promote the company. They are the people who go to the restaurants and the users, presenting Let's Order Now. Their goal is twofold. First, they are trying to convert the restaurants by assisting them in registering onto the website. Second, they are attempting to attract large buildings by convincing a collection of co-workers to order lunch together through LON. M. ‘Wazi'hullah, by assisting the students working on his company, is teaching them vital characteristics of a successful business: execution, entrepreneurship, negotiation, and sales. These students are actively learning how to execute a business idea through personal experience. Rather than memorizing or reading about people who have successfully executed a business plan, the students are actually going out and executing it themselves. It's a unique opportunity, executively educating the future leaders of the corporate world.

Lets Order Now is a prime example of a new business that has a promising future despite these difficult economic times. Although it is still early, I personally believe that Lets Order Now has a high potential for success and will become an international giant in the years to come. However, the fate of Lets Order Now rests on one universal element: Time. All we can do is wait and see how the untold future of this nascent company unfolds. 

AT&T Tie Up

AT&T Tie-Up

Blog Date: 11/21/11

Author: Eric Haslbauer, Accounting Major

AT&T, a giant in the telecommunications industry, has been in the news the past few weeks regarding its proposed acquisition of T-Mobile. Offering $39 billion for T-Mobile, AT&T Chief Executive Officer Randall Stephenson in March announced the proposed purchase of T-Mobile, a unit of Deutsche Telekom AG However, the combination of the country's second- and fourth-largest wireless carriers would violate antitrust law and "substantially lessen competition," says the U.S. Justice Department. U.S. District Judge Ellen Segal Huvelle aims to block the deal, the largest announced acquisition of the year according to data compiled by Bloomberg. "Given the size of the cancellation fee that was negotiated into this agreement (at utmost $7billion), AT&T has the incentive to fight," said Andrew Gavil, who teaches antitrust law at Howard University in Washington. "The fact that the Justice Department is challenging the deal doesn't mean they won't negotiate a resolution at some point."

In more recent news, AT&T has signaled for the first time since March that its planned acquisition is more likely to fail than to succeed. According to the Wall Street Journal, they plan on setting aside $4 billion in this year's final quarter to cover the potential cost of the deal falling apart. Deutsche Telekom AG (AT&T and T-Mobile's parent company) pulled their application for merger approval at the Federal communications Commission in order to focus on their fight with the Justice Department, which has sued to block the acquisition. This action illustrates AT&T's growing doubt in the success of their proposed merger. Does this mean AT&T is throwing in the towel? Are they giving up?

Well according to the Wall Street Journal, AT&T insisted this past Thursday that they are not ‘throwing in the towel;' rather they are strategizing and essentially attempting to strike a settlement with the Justice Department. So, which is it? Why should AT&T keep fighting? Or why should they give up?

For AT&T, the benefits of the deal are potentially huge, indicating their desire to continue fighting for permission to merge with T-Mobile. T-Mobile uses the same network technology as AT&T allowing for easy access to larger market segment. The deal also would potentially lower prices due to the overlap of technology between the companies. Perhaps most beneficial is the fact that the deal would propel AT&T ahead of rival Verizon Wireless, making them number one cell phone service in the nation. However, AT&T has failed to anticipate the antitrust officials' concerns about the wireless industry, which is already dominated by Verizon and AT&T. The involvement of the U.S. Justice Department raises a great deal of concern, suggesting that AT&T drop their proposition.

Personally, I feel AT&T should accept the unlikelihood of their acquisition and prepare to cover the losses. Ultimately, only time will tell what is to come of AT&T and T-Mobile.

What is a Hedgefund?

What is a Hedgefund?

Blog Date: 11/26/11

Author: Daniel Soares, Finance/Management Major

The mere thought of the word gets investors salivating. Why do these funds differentiate themselves from other investment portfolios? And, why are some of the richest money managers on the street hedge fund managers? Well, I would like to take the task of simplifying the cash cow investment known as a hedge fund.

Hedge funds are unlike mutual funds and retirement funds in that they can undertake a broad range of investment and trading activities, and invest in a diverse range of assets, including equities, bonds and commodities. With the ability to diversify its investments, hedge funds obtain the possibility of performing exponentially better in return on investment. To really understand hedge funds, it is essential to classify them according to the investment strategies they use. There are a few other strategies that can be used but the following three are most common:

1.Long/short equity
2.Short-selling
3.Event Driven

Long/short equity is a portfolio that contains a long position (buying) in undervalued shares, and a short position (selling) in overvalued shares.

Short selling consists of selling shares in companies with precise problems, or dumping shares because of the "market sentiment". In other words, it means betting on falling markets or securities.

Lastly, the event-driven strategies are fixated on certain events, which can accumulate an increase in the price of the stock. These hedge funds buy, after an announcement of lets say a merger, the shares of the company that is being acquired, and sell shares of those of the purchaser. These are all a variety of ways in which hedge funds invest their money.

Hedge funds have a "V.I.P." guest list of investors who are invited to their party, so to speak. These investors can be institutions, such as pension funds, university endowments and foundations, or high net worth individuals. An accredited investor will have one of three situations:

1. Net worth that is greater than $1 million.

2. Income for two years that has exceeded $200,000.

3. $5 million in assets

A qualified purchaser will be:

1. Someone who holds more than $5 million in investments

2."A family-owned'' business that has $5 million in investments or more

3. A business that holds $25 million in investments.

These list of credentials exemplify just how exclusive hedge funds are. Hedge funds as of late perform better then most investment portfolios. As of 2009, hedge funds represent 1.1% of the total funds and assets held by financial institutions. The estimated size of the global hedge fund industry is $1.9 trillion. The top 5 hedge fund managers are worth an estimated $112 billion.

Hedge funds are a great way to make a lot of money fast. But in order to do so you must be extremely quantitative and have a strong stomach. Hedge funds can get excruciatingly volatile and definitely carry great risk. With that being said, I feel hedge funds are your best bet on landing yourself on the Forbes top 100 list.

Yahoo's Yin and Yang

Yahoo's Yin and YANG

Blog Date: 11/21/11

Author: Eric Haslbauer, Accounting Major

Jerry Yang, Yahoo!'s co-founder and board director, is raising red flags. Some of Yahoo!'s top shareholders and other activist shareholders, such as Third Point LLC and P. Schoenfeld Asset Management LP, are concerned with Yang and his recent role in the possible sale of Yahoo!. Yang has discussed creating a new ownership group using his 3.6% stake in the company. The Wall Street Journal reported that Mr. Yang and other Yahoo! bankers have discussed the possibility of creating an ownership group which would collectively own about 10% of Yahoo!'s shares. With a buyer who would take another 20% stake, the company could essentially buy back its stocks, increasing the size of that stake. This basic explanation of Yang's possible plan is called "leveraged recapitalization."

These concerns of the shareholders are just the most recent indecent regarding Yahoo!'s corporate situation since the firing of CEO Carl Bartz in September. Since then, the company is still considering whether to sell all or parts of itself. According to the Wall Street Journal, Yahoo! is also currently searching for a new CEO as well as discussing possible solutions to their existing tribulations. However, it ultimately comes down to one question......What is Yahoo!'s next move?

In my opinion, Yahoo! has two options: 1) Sell or 2) carry out Yang's leveraged recapitalization idea. Yang is currently meeting with several private equity firms discussing which option is in Yahoo!'s best interest, according to people familiar with the matter. Nevertheless, Yahoo!'s fate still remains unclear. It has a huge decision on its hands, and all we can do as spectators is wait in anticipation. Hopefully, we will see some closure in the near future.

The American Dream: Maybe it's all in our Heads

The American Dream: Maybe it's all in our Heads

Blog Date: 11/18/11

Author: Joseph Antony, Accounting/Management Major

Edited by: Louis Lamonte, Accounting/Management Major

For many years, America has been the "place to be" if your dream is to prosper. Many people from many different countries throughout history have come to America seeking freedom, success, and just a better life in general. What many people don't realize is that an integral part of this "American Dream" is the strength of the middle class. The middle class, in many ways, is the reflection of all the values and ideals for which America stands. The typical middle class American has been the envy of the world-- he enjoys (for the most part) freedom, success and prosperity, especially in comparison to the citizens of many other countries. It is arguable that the middle class is what has made America so great; however, many statistics today show that the middle class in America is slowly being squeezed into two broad categories of citizens: the Haves and Have-Nots-- the wealthy, and everyone else.

Take a look at the market for consumer and retail goods. A key player in the retail of goods and services for the middle class has always been Wal-mart. When taking a look Wal-mart's performance in the past few years, we see that they haven't being doing so well. Instead, the companies that have seen the most growth are companies in the luxury end of the market, and companies that are-- for lack of a term-- on the opposite end of that spectrum. Family Dollar stores, which provide relatively cheap goods and products, have seen steady growth in the past few years, while companies such as Ralph Lauren and Tiffany & Co. have also seen significant growth. This demonstrates that during this recessionary time, the wealthy have been spending just as much as before, if not more, while the middle class has not. This growth in the high and low ends of the spectrum of consumer goods can be seen as one example of how the middle class is actually starting to disappear in America. In addition, a report by the Census Bureau states that the percentage of families under the poverty line is now at levels not seen since 1992. On top of that, average household income has fallen to levels not seen since about 1999. Again, this demonstrates the widening economic gap America is facing today.

However, this trend has not gone unnoticed. Clear proof of this is the Occupy Wall Street Movement. This is an indisputable signal that many Americans feel they are not being treated fairly. It is possible to see OWS, at its fundamental level, as an outcry against growing class disparity. I believe, as I am sure many of you do, that this trend is not positive at all. The things that have always made America great are disappearing. If this continues as it has been, we could (in an extreme scenario) see America being transformed into a country where the majority of the population is in poverty while only few are at the top. The standard of living we currently enjoy may severely drop. Though I do not think we will ever reach such a point, I believe it is important for everyone, including policy-makers, academics, and even the typical citizen to reassess the broad implications that this widening economic gap could possibly have on our great country's future.

Yahoo! Yard Sale

Yahoo! Yard Sale?

Blog Date: 11/11/11

Author: Eric Haslbauer, Accounting Major

Edited by: Louis Lamonte, Accounting/Management Major

Yahoo! is up for sale!!!! Several articles in both the Wall Street Journal as well as online have indicated that Yahoo! is selling itself. But the question on everyone's lips is.... to whom?

According to the Wall Street Journal, Google has met with private equity firms about potentially helping them finance a deal to buy Yahoo!. Of course, many say this deal would get a good look over by the Fed, and that the Government will never allow such a deal to go through. This belief stems from the hunch that the Fed would be hesitant to allow this acquisition due to fears of Google monopolizing the industry. Microsoft as well as the China Internet giant Alibaba has also reportedly been in talks with private equity firms to purchase Yahoo!.

In regards to Alibaba's possible purchasing of Yahoo!, Jack Ma, the CEO of the company, was quoted saying, "We are very interested in Yahoo. Our Alibaba group is important to Yahoo and Yahoo is important to us ... All the serious buyers interested in Yahoo have talked to us." According to Techrunch.com, Those buyers include: Alibaba Group investor Silver Lake Partners, Microsoft, Hellman & Friedman and Andreesen Horowitz.

Why Alibaba, you may ask? An article in the New York Times explains that Mr. Ma's history with Yahoo! goes back several years, when Yahoo! acquired a 40 percent stake in Alibaba. The relationship between the two companies, however, have some "bad blood", and Mr. Ma has said repeatedly that he wants to buy back Yahoo's 40 percent stake in his company. By buying Yahoo!, he would get that stake back.

Chris Lau summarizes the whole situation very clearly in an article he wrote on October 26th which can be found on Seekingalpha.com. Lau states, "Yahoo's business feels dated, and this showed up in its most recent results. With the exception of Yahoo Finance and original video content offered by Yahoo!, there is little reason to be excited about the company. Investors would disagree: Yahoo! is up 50.68%, closing most recently at $16.71 on speculation that Google Inc. is in the running for buying Yahoo!." Lau further explains that Google's only problem is that regulators will most likely not allow the internet giant to purchase Yahoo!, for Google has a 68% share of the market. With the acquisition of Yahoo!, Google's share would increase to about 88%, says Lau. This induces fears of monopolization, lowering Google's chances to acquire Yahoo!. Lastly, Lau closes his argument defending his opinion. He says, "Yahoo! shares already rallied to $16.71 [due to Google's perspective purchase of Yahoo! which was mentioned earlier in this article], which is within its 2011 trading range price of between $16 and $18. Buying Yahoo! now is purely speculative, and any takeover discussion may easily fall apart. The European crisis will further remind investors that "risk-off" will reduce the trading premium already priced in Yahoo's shares."

In summation, I have to agree with Lau, for he proposed the most logical argument I've read so far. However, only time can tell what is in store for Yahoo!. We will have to wait and see how this company's fate will unveil itself.

Christmas in November

Christmas in November?

Blog Date: 11/11/11

Author: Eric Haslbauer, Accounting Major

Edited by: Louis Lamonte, Accounting/Management Major

So you are driving down Hempstead Tpke. And you pass a row of stores on your right. There is a shimmer of light and your eyes naturally glance toward the light. Christmas wreaths, tinsel, and holiday lights are bedecking the faces of the buildings, creating that "magical" and "butterfly" feeling in your stomach. You smile, and continue driving. Then a thought sparks. You ask yourself, "What is today's date?" and notice that it is November 1st. That "butterfly" feeling disipates as it is replaced with a twinge of sadness. "Christmas is over two months away," you disappointedly say to yourself, for the decorations implied it was much closer. Now this little story brings us to one question...................................................

"When is too early to put up Christmas decorations?" This is a question that has been debated a countless number of times. Many retailors, for example, decorate their stores once Halloween is over! On the other hand, some people wait until after Thanksgiving to decorate for Christmas. Personally, I believe that Christmas decorations should not be put up until after Thanksgiving. Simply put, it's unfair to do it earlier! Why is it that Christmas totally overshadows Thanksgiving and in a sense, takes it over? I understand Christmas is arguably the most popular holiday (it is in fact my favorite holiday), but it should not overshadow Thanksgiving. Thansgiving deserves to be fully celebrated. Secondly, it deceives people. Decorating for Christmas early creates that disappointing feeling as described above. So then, why do several stores decorate almost a month in advance? After doing some research, I've discovered that stores do this in order to promote sales, i.e. Christmas shopping. Many people do most of their Christmas shopping in November anyway, but this "pre-decorating" elongates the Christmas shopping spirit. It increases sales for many companies, therefore, beneficial to the business. Essentially, it comes down to preference. So which do you prefer? What do you do? Decorate before or after Christmas? Why?

Market Misconceptions

Market Misconceptions

Blog Date: 11/09/11

Author: Eric Haslbauer, Accounting Major

Despite all of the negativity presented in the media, there seems to be little attention focused at the positive. For instance, many don't even know that the Dow Industrial Average finished the month of October with its biggest advance since 1987!!!! The Dow finished at about a 14% increase for the month!

The Wall Street Journal contained two rather interesting articles which discussed this topic. The first, entitled "Brighter Mood Buoys Dow Rally", was published on October 22, 2011, and it discussed how the Dow finished that week in positive territory, its longest such run since January. The article discussed that hope was the main reason for the Dow's success. It explained that US companies that have impressed analysts by surpassing profit expectations as well as the meetings of the EU involving the Greece crisis have contributed to this growing hope in the market. Rebecca Patterson, the chief markets strategist for JP Morgan, summed it all up saying, "There are a few factors at work here, and they're all hope-based." At the start of October, stocks were falling to there lowest in over a year (close to a bear market which is defined as a 20% decline from a recent high). The S&P 500 finished the week of 17th up 9.4%. The article centered upon the aspect of attitude and how it is a key to success. Without the thought of success or even the belief of the possibility of success, you have already counted yourself out before the "race" even started. Being an avid runner, I can really relate to this statement. While anxiously standing on the line for the gun to go off, you must genuinely believe you are going to run well. If I don't believe in my abilities and have a poor attitude about the race, I can count myself out before the race even starts because of my mental perception. Success is partially a mental game requiring physical performance as well as psychological aptitude. The article concluded with another quote by Rebecca Patterson which clearly illustrates the situation, "I wouldn't claim victory yet. I would love for hope to stay around for a while and there's a good chance that it could, but until I see the details from Europe, I'm convinced that the trend has not changed."

The second article in the Wall Street Journal was entitled "Stocks Cap a Big Week with Gains." It was published on October 29, 2011 and also discussed the surprising gains in the Dow. It explained how the week's gains came just after the 300 point surge which investors claimed was due to the European plan to combat Greece's debt issues, expand a bailout facility, and recapitalize the region's biggest banks. Investors are also shifting their attention from Europe to the U.S. and how 300 plus companies on the S&P 500 have reported earnings well above analysts' expectations. Likewise, the focus has migrated toward Congress's so-called super committee on deficit reductions which is supposedly going to decide on budget cuts by Thanksgiving weekend. All of these facts have contributed to the Dow's success as the article explained. Similarly, the S&P 500 is on pace to reach its first month without a back-to-back decline since October 2006.

Overall, these two articles exhibit how the Dow is still experiencing success despite the negativity in the media. However, despite all of these positive gains in October, questions still remain regarding how Europe will implement its plans and whether these plans will be enough to resolve the debt crisis. As spectators, all we can do is wait and see how the current situation unfolds.

Is Facebook REALLY Worth it?

Is Facebook Really Worth It?

Blog Date: 11/08/11

Author: Edwin Ayala, Management Major

Edited by: Louis Lamonte,  Accounting/Management Major

Even with the constant hype and push of the date of Facebook's IPO, people haven't been nudged toward purchasing the largest social media company's stock. But is it really worth it, anyway? Is Facebook such a national-- or furthermore-- worldwide phenomenon that people should put thousands upon thousands of dollars into it? Many would say "yes;" but how long will the success last? With all the format changes that Facebook has made (and plans on bringing to the website in the near future), I don't think users will have enough patience to deal with the site. They barely have enough patience to handle the new "stalker bar" on the layout (a vertical list of people online who you can "chat" with), let alone all the other changes that are planned for the future. It's not to say that the company won't make any money, but for how long will they make it? How long will Facebook last? It might crash, and if it does, much of the money put into the site will obviously be lost. Take a look at the out-of-date social networking sites, like MySpace. A website somewhat similar to Facebook in layout and purpose, MySpace fell off the grid with the creation and growth of Facebook, only within 10 years of it creation. Now, other networking sites like Google+, Twitter and Tumblr are looming and taking aim at Facebook. And who's to say that one of these sites won't follow Facebook's footsteps and wipe the social media monster off the map before-- or even during-- the time that Facebook goes public? This possibility certainly lessens the chances of actually making money off the networking phenomenon. So let me ask you this: Is Facebook really worth it?