An article I read in the Globe and Mail ties directly with many of the topics we have discussed in class. “BlackBerry hit with securities shareholder class action” is about exactly what the title suggests. Blackberry is being sued by one of its shareholders for allegedly “inflating” stock prices by making its financial situation seem to look better than it was in reality.

Last class, we discusses financial statements and fraudulent financial reporting, where members of a business tweak the numbers when reports assets or liabilities usually in order to make the company look better in the eyes of the public, and therefore, raise its perceived value. Although there is no evidence of fraud in their finances, they are in hot water for mislead potential stockholders, still however, a potential violation of the ‘Securites and Exchange Act of 1934’ according to shareholders.

Last year, when the BlackBerry 10 line was being showcased, many people who bought stocks felt that they were being misled after BlackBerry 10 flopped in its release. Since then, BlackBerry has been struggling to remain competitive, has reduced its workforce considerably, and its share price has dropped a great deal.

Whether or not BlackBerry is guilty of misleading shareholders, the company is still in big financial trouble and will have to go great lengths if it is to remain competitive in the market.

http://www.theglobeandmail.com/report-on-business/blackberry-hit-with-securities-shareholder-class-action/article14713440/

http://cdn-static.cnet.co.uk/i/c/blg/cat/mobiles/blackberry-broken.jpg

Twitter is going to go public soon and has just filed for IPO, or Initial Public Offering, to be traded on the market after approval by the Securities and Exchange Commission. They are expected to fare well in the stock market once they are listed. They will join the stock exchange after a three-week period where a starting price will be set for shares. Even though they aren’t listed at the moment, they have already received a “buy” rating by a brokerage firm which claims that the stock price could reach $50 from “float[ing] at $28 – $30”.

Although the anticipation for Twitter going public is high, rival social media giant Facebook Inc., which went public last year, flopped in its initial public listing contrary to expectations. Some concerns for Twitter are that they reported massive losses in the last few years because of internal problems and not commercializing very fast. However, Twitter believes that advertising revenue will continue to go up.

One can only speculate how Twitter will fare when going public. They have been losing money and have a great deal of liabilities from the past few years, but their cash flow is increasing with increased and more specialized advertising. However, unless they stabilize their balance sheet, potential stakeholders may be weary to invest.

http://www.theglobeandmail.com/report-on-business/international-business/us-business/twitter-gets-buy-rating-even-before-listing/article14722911/

http://www.wired.com/business/2013/10/twitter-files-for-ipo-2/

http://www.digitaltrends.com/wp-content/uploads/2012/03/twitter.jpg

The Economist’s “Un-marketing rhino horn” is an article that I read which struck me as interesting and relatable to some of the topics which were discussed in class. The article outlined the “lucrative black market” for rhino horn that is becoming more and more aggressive with poaching throughout South Africa and other areas where rhinos can still be found. Although a ban on rhino horn trade has been instituted internationally, there is such intense demand for it as a luxury product in countries like Vietnam that the illicit trade continues anyway. Efforts are underway to help reduce demand for rhino horn in the form of marketing campaigns and removal from pharmaceuticals (in many cultures rhino horn is wrongly thought to improve health and was until recently used in many medicines). Public awareness campaigns about extinction of the rhino, actual health benefit (little if any) of the horn from medical professionals, and concerns over danger of the product (illegality, funding terrorism, poison implanted in rhino horn, etc) are all being considered in order to help protect the rhinos from being poached into extinction.

This relates to the marketing aspect of our class. As we learned, brand image and public perception of a product is vital to its continued sales and future existence as a brand. In the case of the rhino, proper “de-marketing” can be used to destroy the rhino horn “brand” and help save the critically endangered species from extinction.

http://www.economist.com/blogs/schumpeter/2013/10/business-conservation