If you are a sports fan, it is likely you have at least once been to a restaurant or bar to watch TV and having a beer. Having a beer and watching sports seems to go together or in many countries around the world they have a wonderful relationship. The biggest sporting event of the globe is the World Cup and billions of people will have watched a game. If you owned a company that was mass market appeal, being a sponsor is a very good thing. For the right to be a sponsor, companies pay money to FIFA and plan their massive promotions and advertising campaign around the event.

In an article by Philip Blenskinsop of Reuters, imagine if you were an executive at Budweiser. The brewer has been a World Cup sponsor since 1968. The rules are a little different in Qatar, the country only allows alcohol in ticketed events surrounding each of the 8 stadiums. Budweiser is owned by AB InBev of Belgium and its Chief Executive Michael Doukeris said the tournament would be a great opportunity to showcase its non-alcoholic brands.

The World Cup is to begin AB InBev has done all the logistics of sending its supplies to Qatar and then the announcement was made to ban the sale of alcohol at all of Qatar’s stadiums. What do you do?

In the article, people have gone back to the contracts to see whether the FIFA-Budweiser contract anticipated the possibility of change or who pays the supplies and logistics of the beer?

Mr. Doukeris said AB InBev focus this World Cup has been on the 70 markets around the world that do allow beer sales and there is a promotion across all AB InBev brands. The decision in Qatar hurts but not too much.

Linking to dividend paying stocks, there are many strategies and processes to follow and having alternatives is one of them. Through your homework you rationally picked the best company for you, life changes something either for you or the company and because you can easily sell, you move to other alternatives. The important aspect is ensuring you have alternatives, it does not mean you have to do an action, but you ensure if the companies you invested in are not performing as well as expected you move to another one. That is easier said than to do, for you picked the company for a reason, you rationalized your decision, you invested some time and energy to know more about the company, it is hard to sell unless there is a very good reason. If you bought for the dividend as long as the dividend is paid and hopefully raised, then you can do nothing – that is a good strategy. If the dividend and profits are threatened, you can do something – but what alternative do you do?

There are more questions than answers, till the next time – to raising questions.

When you are young and nothing in the world can hold you back, if you have a talent or a passion for a sport you likely want to play that sport professionally. You love it, however as you age a little, the issue is do you have the skills to compete against the best in that sport. Most of us do not, but you can still enjoy playing and watching sports. Fortunately for the owners, there are millions of people who enjoy watching sports on TV and that is the prime reason why a sports franchise has increased in value. The TV contracts are larger and most major league teams will make money before a ticket is purchased. If you are an owner, you like that. As a fan, you want your team to be competitive and be able to challenge and possibly win the championships, but as a fan often the journey is more important than the destination.

From your dividends you make on your stocks, you have the ability to do something with the money. Some can afford to buy a sports team both for personal reasons and to increase the value of the team if and when it is sold.

In the Ghostbusters movie there was a song saying who are you going to call? If you are wealthy enough, you can call an investment firm called Galatioto Sports Partners (GSP).

In an article by Andrew Willis, the founding partner was asked during the summer at an investment conference in Manhattan, how is his business. Mr. Galatioto said, I have never been busier, capitalism is a wonderful thing, it produces more and more billionaires.

GSP received its start in the 1990’s, raising money for team owners as bankers with Lehman Brothers. They decided to leave Lehman Brothers to start their own firm. The potential owners of the teams had assets, but they were tied up and needed help in arranging loans to close the transactions. The success of the firm is they have advised team owners in every North American league and in Europe they help the soccer teams.

GSP helps owners to understand what teams can be – they are media business, a data business and real estate business rolled into one and thanks to the sports pages are always in the news.

Linking to dividend paying stocks, similar to buying an individual stock, it is important what it is and how it generates its revenues and potential revenues. Some teams have an incredibly loyal base of fans who consume tickets and merchandise. Ever watch a sporting event and it seems everyone has a home team jersey on? How much was the jersey? how much was the tickets? and you will look at the home team a little differently, although you can still cheer for them. Then you can leverage the assets to create even more.

There are more questions than answers, till the next time – to raising questions.

In the recent midterm elections, some politicians were saying the US budget needs to be cut and they had various methods to do. The suggestions ranged from social security to raising taxes, very little was said about government subsidies.

In an article by Joseph White of Reuters, Chief Financial Officer of GM Paul Jacobson in a conference call to investors, GM expects federal subsidies between $3,500 and $5,500 an electric vehicle would add to GM pretax profits. The subsidies help make the difference between the combustion fleet and the EV fleet very comparable by 2025 profitable.

This year the profits expected which will be between $ 13.5 to $14.5 billion will come from the combustion fleet and go to fund the annual capital spending between $11 and $13 billion.

On GM’s most profitable lines including GM pickups and SUV with internal combustion engines or ICE, the margin is double digit.

The subsidies offered by the Green Energy Act and the Inflation Reduction Act would boost EV’s margins to ICE margins.

GM trails Tesla, Ford and Hyundai in EV sales this year, but expect greater production in both the US and China from 2023 to 2025.

Linking to dividend paying stocks, most profitable companies benefit from government subsidies. The subsidies come in for a particular purpose and companies like them so they tend to stay around even when from the outside the subsidies could be cut. From the inside, subsidies are a very useful addition and companies get used to having them. If the government stops some there are usually other avenues to find addition subsidies for governments have money for designated purposes. In the non-profit world, grant seekers are very adaptable, same for the corporate world.

There are more questions than answers, till the next time – to raising questions.

If you ever read books around the times of Sherlock Holmes, the air was a character in the story because it was a mixture of fog and coal pollution. At the time of Mr. Holmes, the dominate way to heat the homes of London was coal so it was not surprising it made into the literature and songs – I received a lump of coal for Christmas. Coal replaced candles for heating and eventually making electricity which replaced coal, but coal has always had a negative aspect of pollution when it is used. One of the earlier solutions was to make the smokestacks higher so more it would be dispersed by the winds be blown away from the coal plant. Jumping to current days, coal is still on governments’ minds as seen at the recent COP27 or Conference of the Parties held in Egypt.

In an article by Eric Reguly, the issue of coal has been on the agenda for the past 27 years and likely will continue to be on the agenda. The good news is the 75 countries which represent 95% of the total coal consumption have pledged to reach net zero emissions by 2050 to 2060.

The bad news is the demand for coal will continue into the future as evidenced by the war in Ukraine delayed the closure of coal plants in Europe. China is building 100 new coal plants, as well as 100 new coal plants are being built in the rest of Asia. The reason why coal plants are being built is simple: they are relatively easy to build, coal is plentiful and equally important inexpensive, and the lifespan of a plant is 30 to 50 years. One of the reasons why coal is plentiful is companies such as Glencore have built an infrastructure system that allows it to make billions from coal mining and exports.

Linking to dividend paying stocks, similar to everyone you will have concerns as person. You want to live in a relatively clean environment and all that entails. When you are investing, you want to invest in profitable companies that can pay dividends for you to enjoy the environment. Energy companies meet demand and prices allow profits to be made, the companies may go in and out of national favorites but as an investor you concern is legally making money. When the laws change, you can change, as long as the government keeps the laws, so much the better. In the next few years, you can see how the alternatives are doing and when to change if change is needed.

There are more questions than answers, till the next time – to raising questions.

We all know who Bernie Madoff is – he was the former head of the SEC and a Wall Street Investment firm that was producing consistent returns for years no matter how the markets fluctuated. In the end it was all an elaborate scheme to bring in new money to get Peter to pay Paul and it worked for 15 years. Bernie ended up in jail for 50 years.

In Minnesota, another Ponzi scheme was run almost as big as Madoff, before it collapsed in 2008. Thomas Joseph Peters was convicted of a $2 billion fraud and is in jail. Mr. Peters company declared bankruptcy and has been in the courts since.

In an article by James Bradshaw and David Milstead of the Globe and Mail, the lawsuit alleged that Milwaukee based Marshall and Ilsley Bank and a smaller bank helped facilitate a Ponzi scheme run by Mr. Peters between 1999 and 2008.

The issue is the corporate model the bank understood what Mr. Peters company did and what Mr. Peters actually did such as the bank moved tens of millions in and out of corporate and personal accounts were not measuring up to one another.

The Judge found that although the Bank of Montreal bought the Milwaukee based bank in 2011, M&I destroyed computer bankup tapes in 2010 and 2011 that likely contained documents and some tapes that contained evidence. The bank falsely told the judge all the tapes were gone.

A jury found the present owner of the bank, Bank of Montreal needs to pay a fine which amounts to $1.1 billion.

Linking to dividend paying stocks, when a company goes into bankruptcy it will take a long time before there is any type of payout. If you own such an investment you need to cut your losses and move on. In the above case, it is now almost 2023, the bankruptcy was 2008 and only cents on the dollar will be recovered. Every downturn in the economy shows there are frauds in every state and many people are just trying to make a little bit more. It is easier to buy a profitable company that has paid dividends over the years and let the company do the work legitimately. Losing money takes the compound interest of real gains and as an investor you love compound interest. Years ago, the author was helping managing my parent’s funds, my investments were in the growth side of the market, my parents were in dividend funds, who was making more money with less risk? my parents, I switched over to enjoy compound interest.

There are more questions than answers, till the next time – to raising questions.

We all have our perceptions of the world’s trade and that is good. In the dairy industry, if you were thinking about a powerful dairy industry, you might think of Wisconsin and you would be correct, they have a large dairy industry. The largest dairy industry in actually in California, Wisconsin is second to California.

If you think worldwide, which country has 35% of the world trade in dairy products? If you guessed New Zealand you would be correct. Despite being closer to Australia than any other country, the country of 5.1 million people ranks about 7 or 8th in terms of milk production and accounts for 35% of the world trade in dairy products. Do you remember the ads about New Zealand and Lord of the Rings, do you remember seeing cows?

In an article by Steven Chase of the Globe and Mail, both New Zealand and the US are pressuring the trade panel to look at the rules which limits their ability to sell to the Canadian market.

Linking to dividend paying stocks, we all have perceptions of the market and that is good but sometimes facts come forth which changes your thinking. Some companies or industries are under less marketing lights for we do not see them at first glance. When you do your homework, looking for profitable companies you are not looking for the ones in the spotlight, jus the ones that can consistently make profits to pay dividends. After you own them, let others enjoy the spotlight, you can enjoy the dividends.

There are more questions than answers, till the next time – to raising questions.

Before the midterms the predictions from pollsters there was predictions of a red wave or the Republicans were going to win seats to control government. For investors, you had the ability to do something or nothing. At the same time, former Presidential Trump said he was going to make a major announcement a week after the election. If you put 2 and 2 together, you would conclude it was a candidacy for the Presidential nominee for the Republican ticket.

In an article by Shreyashi Sanyal and Anisha Sircar of Reuters, prior to the midterms, shares in Digital World Acquistions Corp the blank check company looking to take Donald Trump’s social media venture public jumped in value 24%. If you are a diehard fan of Mr. Trump and bought much earlier, your loss for the year is over 58%.

Since the midterms and no red wave for the Republican Party and many of the candidates endorsed by Mr. Tump losing, the shares of Digital World have eased off.

Linking to dividend paying stocks, it is a good idea to see which companies will benefit or should benefit from changes in political leadership. Sometimes the answer is very few, sometimes the answer is industry groups because all politicians tend to vote extra money for their favorite groups. One of the easy examples is Republicans tend to give the oil and gas industry less regulation or drill baby drill; while Democrats tend to give solar companies greater incentives. There are natural alliances between the 2 parties although in reality both will do something for each, but it will be easier to see for one party or the other. Just remember you are not looking for a bounce but long term results and saying no is a good thing.

There are more questions than answers, till the next time – to raising questions.

All around the globe, investors look for value or hidden values that with some changes will unlock the value. One of the areas where people see value is in large conglomerates. The companies grew larger for a variety of reasons including the government ensuring one or more divisions had readily sales due to the government calling it a national security. At some point, investors begin to examine conglomerates and wonder if the company was broken up, would the parts be worth more than the existing?

In an article by Mayu Sakoda, Makiko Yamazaki, and Takaya Yamaguchi of Reuters, the company known as Toshiba is a prime example of the conglomerate to be broken up. Toshiba has over 116,000 employees involved in chip making, nuclear energy and what most of us their retail electronics. In 2015 there was a accounting scandal and ever since the company has lurched from crisis to crisis. One of the many concerns is major shareholders and management do not agree on the direction the company is taking.

A solution was devised of a potential buyout by Japan Industrial Partners (a private equity firm) and Japan Investment Corp (a state backed fund). The plan was going well until the issue of do we retain the existing management team? The private equity firm said yes, the state back fund said no and departed as a partner. The issue of retaining or letting go the existing management team is not an easy one because there are advantages and disadvantages to both sides. However, if you believe many changes must be carried out, something the Japanese banks believe, do the banks want to risk their money if many changes are not done?

Japan Industrial Partners which has previously bought out Olympus Corp’s camera business and Sony Group’s laptop business is trying to find partners to secure equity and financing commitments.

Japan Investment Corp is in talks with Bain Capital and north Asia fund MBK Partners to form a competing bid.

Linking to dividend paying stocks, companies that grow often have the government as a wonderful partner-either direct or indirectly. This partnership is the government backing the company to grow and some of what it is doing is in the national interests of the government. The national interest can be such as Toshiba chip making and nuclear energy, as a government you would not want to have competing nuclear energy firms so they back one over the other. It could be the research and development the company is involved with, there are multiple avenues where it could work. The issue is at some point the economy changes, government changes and they are not long the government’s interest. Many companies have a balancing act. If you have investments in a company which is protected by national interest of the government, how secure is it?

There are more questions than answers, till the next time – to raising questions.

Today is Black Friday and around the shopping malls and retail stores, people are searching for values for their holiday shopping. In the corporate world, company’s strategic planning team does what individuals due.

One company that was searching for an undervalued company is Phillip Morris International (PMI) one of the largest makers of cigarettes. PMI found a company in Sweden called Swedish Match which controls half the world’s market for snus – a moist, smokefree snuff.

In an article by Reuters, PMI bid $9.73 a share which was a premium to where the shares were trading. Companies including Elliot Management Corp believed the offering should be higher. In this case, Elliot Management bought more shares and in October reached 10% holding.

PMI raised the bid to $10.58 a share because although they own 80% of the shares, they needed 90% to reach the threshold for forced redemption of the remaining minority shareholding. Once the price was raised Elliot agreed to tend and PMI will own Swedish Match. You can expect to see Snus in the tobacco section soon.

Linking to dividend paying stocks, all companies look for undervalued competitors or add on their companies or similar to individual shoppers they are looking for value. The difference is the number of 0s at the end of the cheque. In every market there is value or opportunity, if you similar to a corporation you take your time to find it and buy it at the right price for the future.

There are more questions than answers, till the next time – to raising questions.