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Toshiba Hit with Record Fine; Shareholders Sue

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Photo of Toshiba presidentDespite its best efforts to turn the corner after its forced disclosure earlier this year of one of the largest accounting scandals ever to jolt the Japanese financial community, Toshiba Corp. just keeps getting  hit with more and more bad news. This bad news includes Japan’s financial regulators assessing the largest fine ever in the history of the country for financial mismanagement – ¥7.37 billion or about $60 million.

And now, the very first wave of shareholder lawsuits against former Toshiba executives are filed…and they are big.

See more on Toshiba’s continuing waves of woes… [Read more…] about Toshiba Hit with Record Fine; Shareholders Sue

Wall Street Reacts to Negative Nortek Q3 Numbers; AVC Sales Drop 36.8%

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Company Blames Declines on ‘Negative Impact’ of United Technologies Unsuccessful Acquisition Bid

Nortek's HeadquartersNortek, Inc. stock dropped more than 9.3% in early afternoon trading Wednesday in the wake of a report released by the company after the close of business Tuesday showing results for their fiscal third quarter. With sales and profit declines in key business segments – as well as for the company overall – it appears that Wall Street analysts are growing tired of waiting for the promised benefits of the company’s multi-year restructuring program, begun four years ago.

The company reported overall sales for the quarter of $618.5 million or 3.8% below the $642 million booked in the third quarter last year. The profit picture was even bleaker with a net loss of $14.4 million in the quarter this year as compared with a net profit in the quarter last year of $4.6 million.

Surprisingly, the AVC division saw sales drop an astonishing 36.8% to $30.1 million – well off the $47.6 million in the quarter last year – in the wake of the spin-off of TV One and the company’s exit from commercial AV businesses.

See more on this report and its troubling revelations… [Read more…] about Wall Street Reacts to Negative Nortek Q3 Numbers; AVC Sales Drop 36.8%

Nortek Calls Off Discussions with United Technologies

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Nortek LogoNortek, Inc. announced late Thursday that it has called off talks with an unnamed party who had tendered an unsolicited offer. According to the Wall Street Journal and as we had previously reported, that suitor was United Technologies. Nortek stock closed Friday at $63.97/share or off 3.8%,  on a day when the Dow was up .2%.

See more on this announcement from Nortek… [Read more…] about Nortek Calls Off Discussions with United Technologies

Needing Cash, Sharp Sells its Osaka Headquarters Building

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Photo of woman walking past Sharp signTroubled Japanese electronics manufacturer Sharp Corp. announced today that it will sell its headquarters building in Osaka, as well as an additional associated building, and the land they both stand on, in a bid to raise cash. The company says it sold the properties for ¥18.8 billion ($156.8 million) which will allow them to book a special gain of ¥14.8 billion in profit from the deal in their fiscal fourth quarter, the period ending March 2016.

See more on Sharp’s situation and this transaction… [Read more…] about Needing Cash, Sharp Sells its Osaka Headquarters Building

Your Company: Sell It? Take a Partner? Find an Investor?

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Capital Summit @ CEDIA Expo 2015 Announced

CEDIA Expo 2015 logoIntrepid Investment Bankers, LLC and Stiernberg Consulting have announced that they will once again partner to host a Capital Summit in conjunction with the CEDIA Expo taking place in Dallas next month from October 14-17. This is the second time the two companies – one a middle-market investment bank and the other an industry consulting firm – have held the event which offers attendees an expert panel sharing information on a variety of issues related to capital strategies.

See more on the agenda for the Summit, including who’s participating… [Read more…] about Your Company: Sell It? Take a Partner? Find an Investor?

Try as It Might, Toshiba Can’t Seem to Turn the Page

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Toshiba signOn Monday, Toshiba released their twice-delayed final financial data for the last fiscal year (ended March 2015) in what it undoubtedly hoped would be the first step to turning the page from a scandal-racked year. But forces out of their control conspire to keep them in the hot seat – with a regulatory agency threatening large fines and a major shareholder demanding the company sue its former executives.

It looks like Toshiba’s troubles will continue… [Read more…] about Try as It Might, Toshiba Can’t Seem to Turn the Page

Toshiba Stuns Markets Again, New Whistleblowers Claim More Wrongdoing

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10 New Investigations into Allegations of Improprieties, Including at U.S. Subsidiary

Photo of Toshiba presidentJust when you thought things couldn’t get worse for the aging Japanese industrial giant, Toshiba Corp. again stunned the financial community in Japan – forced to postpone their already delayed financial reports which were expected at the end of August. The company said it was forced to delay the report in the face of ten whistleblowers who have come forward alleging more company misdeeds. The company has launched ten new investigations, including one at a U.S. subsidiary.

See more on this shocking development from the already damaged company… [Read more…] about Toshiba Stuns Markets Again, New Whistleblowers Claim More Wrongdoing

Investment Advisor on Potential Nortek Acquisition: ‘Nortek is a Bit of a Train Wreck’

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Nortek LogoAfter the Wall Street Journal revealed late last month that United Technologies Corp. (UTC) was in talks to potentially acquire Nortek, Inc., we questioned why UTC would even want to acquire Nortek. Within days of our post, investment advisory firm The Motley Fool (TMF) also raised the issue in a post last week about this not-quite-so-obvious marriage. Well, maybe it’s more like a dalliance than a marriage…at least at this point.

We found the Motley Fool’s analysis interesting – both in their clear-eyed assessment of Nortek and why the acquisition may in fact make sense for United Technologies.

See more on this Motley Fool discussion of the potential UTC-Nortek deal… [Read more…] about Investment Advisor on Potential Nortek Acquisition: ‘Nortek is a Bit of a Train Wreck’

Why Would United Technologies Want to Acquire Nortek?

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UTC logoThe Wall Street Journal broke the news yesterday that United Technologies Corp. is in talks to possibly acquire Nortek, Inc. Nortek is best known in our industry as the parent company of Core Brands, a collection of several prominent lines – such as Niles, Elan, SpeakerCraft (and others) – that are focused largely on the custom integration business, but also produces commercial and residential HVAC and air handling equipment. United Technologies is a large conglomerate with diversified holdings such as Pratt & Whitney jet engines, Otis elevators, and Carrier air-conditioning equipment.

See more on what we know so far on this potential deal, which isn’t much… [Read more…] about Why Would United Technologies Want to Acquire Nortek?

Toshiba Struggles to Get Past Troubles

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Toshiba FacilityToshiba Corp. has been subjected to almost daily press stories and analyses in the Japanese media on their continued struggles in the wake of a huge accounting scandal at the formerly blue-chip powerhouse company. The scandal was likely large in terms of financial losses, but even larger in terms of decimating the reputation of the company and its management. To turn the situation around, the company must start to build a new reputation for reliability. It isn’t going to be easy…

New President, new board, secret ballets…strange stuff… [Read more…] about Toshiba Struggles to Get Past Troubles