Careless talk can lead to a loss as great as $25 billion US dollars.

Royal Bank of Canada was one of the 35 banks that brought out Alibaba IPO, but it decided to voluntarily withdrew from this deal. Released on Tuesday, RBC said that it pulled out of its co-underwriting role in Alibaba’s Sept.19 Market debut because an “employee unrelated to the Alibaba IPO process inadvertently made a comment about the transaction”. [1]

Unfortunately, RBC can no longer sell any of Alibaba’s shares to its customers due to the strict rules under the U.S. federal securities laws around the marketing of IPS. During the so-called “quiet period” before one company going public, those related with the deal are legally not allowed to talk about or promote the stock before the offering. [2]

It’s an unfortunate loss to RBC since Alibaba broke the record as the world’s largest-ever stock market flotation with 38% gain on the first day of trading, and then it reached $100 a share later on Tuesday.[3] Moreover, this situation also leads to a bigger concern of RBC’s reputation for confidentiality and securities. It’s very important for companies like banks to be aware of the regulations under the federal laws, especially when dealing with securities and stock issues.

Watch a video here: https://www.youtube.com/watch?v=DxuGNi8FPsw

Blogs can also affect stock market : http://www.theguardian.com/world/2009/jan/22/south-korean-blogger-minerva-prosecution

Resources: “Loose talk prompted RBC to withdraw from Alibaba IPO.” The Globe and Mail. N.p., n.d. Web. 30 Oct. 2014. <http://www.theglobeandmail.com/report-on-business/international-business/rbc-pulled-out-of-alibabas-ipo-after-staff-comment/article21352630/>.

Holodny, Elena. “One Chatty Banker Cost His Bank ‘Millions Of Dollars’ On The Alibaba IPO Deal.” Business Insider. Business Insider, Inc, 28 Oct. 2014. Web. 30 Oct. 2014. <http://www.businessinsider.com/rbc-lost-alibaba-ipo-deal-2014-10>.

“Alibaba’s market cap passes Wal-Mart as shares hit new high.” Fortune Alibabas market cap passes WalMart as shares hit newhigh Comments. N.p., n.d. Web. 30 Oct. 2014. <http://fortune.com/2014/10/28/alibaba-market-cap-passes-wal-mart/>.

Went public last November 11, Twitter started with a high-profile IPO of $26. The stock price went triple in December, and hit a high of $74 a share, but is now down to $ 43.57 a share. Although the company has reported sharply rising revenue for the past two quarters, the stock price went down by 11% after the company reported a meagre growth in new and existing usage during the third quarter.

In its financial report, Twitter’s revenue totalled to $361 million with $320 million in advertising, showing an increase of 114% compared to $169 million in the same period last year. The total net loss amounted to $175 million, a $110 million increase compared to $65 million in the same period last year. The increase in net loss is due to high expense for the its stock compensation, which accounted to $179 million in the third quarter. If excluding these expenses, Twitter earned a profit of 1 cent a share in the third quarter.

Why is the stock falling? Nate Elliott, an analyst at Forrester who studies social media, pointed out “The experience on Twitter today is the same experience people have always had on Twitter.”

The company’s lack of innovation and its slow pace of improvement are disappointing the public. Company like Twitter that are strongly dependent on technology and development  should innovate continuously and lead ahead of its rivals to retain its market and to attract more users. On the other hand, Twitter’s rival-Facebook, “is constantly looking for ways to get people back on their site,” said Mr. Elliott.

Sources:

“Twitter user-growth stalls, shares drop.”New York Post. N.p., n.d. Web. 22 Oct. 2014. <http://nypost.com/2014/10/27/twitter-user-growth-stalls-shares-drop/>.

“Twitter investors anxiously await first earnings report.” New York Post. N.p., n.d. Web. 22 Oct. 2014. <http://nypost.com/2014/02/05/twitter-investors-anxiously-await-first-earnings-report/>.

“Twitter Inc..” TWTR Stock Quote. N.p., n.d. Web. 22 Oct. 2014. <http://www.marketwatch.com/investing/sto

Looking at current smartphone trend, we often find that the giant tech companies like Apple and Samsung are taking majority share of the market. When signing up for a mobile plan, we often look at and compare the monthly fees with the price of the smartphones that are offered for a discount price. Without a regular or a premium mobile plan, a standalone smartphone can be easily priced around $500 to $700, which is not an inexpensive investment for people living in developing countries.

To provide better access to its customers in developing countries, Google has found a way to get unstrapped in the markets with their “Android One” series. Manufactured in India, this new series of smartphones are sold for under $120 each. While making these phones more accessible and affordable, Google still managed to offer well-rounded features. This competitive advantage of low-cost production also made these phones as disruptive innovations in the smartphone market.

However, it is evident that other competitors are also promoting their “low-cost” smartphones, such as Motorola and Sony. Moreover, the emerging smartphone makers in China will more likely to bring the most disruptive innovations in the market with their low-price yet powerful smartphones. For examples, Huawei Ascend series offer competitive pice with higher functions. Smartphone maker, Xiaomi, has overtaken Samsung in China after first launched in 2011, making it to the third largest smartphone makers in the world.

This is a comment on Dominique Cai’s Blog

Read more news about Xiaomi: http://www.ecumenicalnews.com/article/xiaomi-now-the-third-largest-smartphone-maker-in-the-world-surpasses-samsung-sales-in-china-27106

Shortly four months after the Supreme Court of Canada gave the Tsilhqot’in First Nation the title of 1,750 square kilometres of land west of Williams Lake, more dispute has risen from the Tsilhqot’in people on the tribal park project.

Covered about 3,120 square kilometres, the tribal park protects cultural, heritage and ecological values, according to the Tsilhqot’in, while connecting to five surrounding provincial parks. The People are claiming that the Taesko’s industrial mining will cause a huge damage on the fish and the fish habitat. Also, large-scale clear-cut logging will destroy the forest that features a unique “rain shadow” forest ecosystem and some of the best habitat for large carnivores in North America. [1]

It is very important for the companies to be aware of their social responsibilities and ethics when they are doing things that have effects on the society. It is also very important to consider what effects a business can have on the local community, such as the social costs and social benefits their actions will bring the community.

In the case of the tribal park project,  the interests and opinions of the First Nation should be heard and put into consideration when designing the business model. Also, evaluating the impact of their actions on the environment, society, and Aboriginal culture should take place in the decision-making process.

Watch a video of First Nation Historic victory: https://www.youtube.com/watch?v=z4D85H7lQxE

Read more: http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html#ixzz3FODWrW1v

Source: “Tsilhqot’in set to declare site of New Prosperity mine a tribal park.” www.vancouversun.com. N.p., n.d. Web. 6 Oct. 2014. <http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html>.

Montpetit, Isabelle. “Background: The Indian Act.” CBCnews. CBC/Radio Canada, 14 July 2011. Web. 5 Oct. 2014. <http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988>.