SEC Filings Topping Santa's Naughty List in 2011, Part II

Yahoo’s (YHOO-$15.50) online search ranking in the U.S. continued its slide this year – falling to an all-time low in September: Digital intelligence researcher comScore reported that Yahoo’s share of the overall market fell to 15.5% (compared to Google’s leading 65.3% share), down from 18.9% in June 2010.

Even after the messy firing of embattled CEO Carol Baratz in September and other management shuffles, criticism of the board’s recognized inability to engineer a strategic turnaround continued. Third Point, a hedge fund run by Daniel Loeb, disclosed a 5.1% stake in the online media company last fall and called for the resignation of co-founder Jerry Yang and other board members: “From the failed Microsoft (NASDQ:MSFT) sale negotiations [rebuffed $44.6 billion, or $31 a share, buyout offer in 2008], to a subsequent bungled and disappointing search deal with Microsoft, through a series of misguided CEO selections… this Board’s failures have destroyed value for all Yahoo stakeholders,” excoriated Loeb in a letter addressed to the board on September 8. “Instead, a reconstituted Board with new Directors who will bring fresh eyes, relevant industry expertise and increased investor alignment to the table is immediately necessary.”

Loeb opined further that Yahoo was an iconic asset, which led by a reconstituted board and management team could result in a rapidly appreciating stock to a targeted value of up to $23 a share. Notwithstanding all the noise generated by Loeb, given the fractured board’s inability to ever reach consensus on a unified business strategy – such as, spinning off its 43 percent stake in Chinese internet provider Alibaba or rebooting its advertising and online shopping businesses – Yahoo’s long-suffering stockholders won’t find much deal-making value in their stockings come Christmas.

Read more: the "SEC’s Naughty list" at 24/7 Wall Street

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

SEC Filings Topping Santa's Naughty List in 2011, Part I

In straightforward fashion, News Corp. (NWS-$17.83) reported that the company faced criminal investigations regarding the well-publicized phone hacking scandal and “inappropriate payments” (bribes) to British police made by higher-ups at the media company’s erstwhile publication, News of the World. “It is also possible that these proceedings could damage our reputation and impair our ability to conduct our business,” declared the 10K filing. You think? In July, the media conglomerate withdrew its $12.4 billion takeover bid for British pay-tv satellite broadcaster British Sky Broadcasting (BSkyB), following pressure from the government.

Despite mounting legal problems, it was another profitable year for anyone named Murdoch at the family-controlled holding: Chairman and CEO Rupert Murdoch took home total compensation of $33.3 million, up from $22.7 million in 2010; his son James, deputy chief operating officer, pocketed $17.9 million, a 70 percent increase over the prior year. It looks like the financial messes resulting from the newspaper scandal didn’t damage the Murdochs’ ability to conduct business.

Read the rest of the “Worst of the Bad - Part I" regulatory filings of 2011 at 24/7 Wall Street…

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Hiding Losses at Chicos?

Notwithstanding its namesake brand, average dollar sales and transaction counts are supposed to be up across all other brands at Chicos FAS (CHS-$10.50), according to management. Why, then, will the company not break out segment profit and loss (P&L) statements?

Looking to extend customer’s experience to intimate apparel, a $13.5 billion market (led by Victoria’s Secret’s commanding 25% share), Chico’s has grown the Soma label from 10 stores in 2005 to more than 200. Given the company’s ambitions are no longer “a secret,” why should the brand’s contribution to P&L still be considered such — unless discount pricing is driving sales growth — and eating into profits?

Read more at 24/7 Wall Street: Fashion and Financial Failures at Chicos

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Significant Upside to Dendreon Stock in a Buyout

Acquiring Dendreon (DNDN-$7.50) offers a better-capitalized pharmaceutical company an opportunity to buy control of a potential blockbuster drug (on the cheap); mitigate revenue shortfalls going forward from patent expirations in their own portfolios; gain access to a lucrative new technology platform (targeted immune-cellular therapy could have applications beyond current labeling); and, cost-efficiently broaden existing oncology portfolio pipeline.

What is the manufacturer of the prostate cancer vaccine Provenge worth in a buyout?

Read more at 24/7 Wall Street: Dendreon Buyout, How Imminent?

Notwithstanding Bristol-Myers Squibb, David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Is "The Sky Falling" at Dendreon?

Dendreon’s (DNDN-$7.50) balance sheet shows the strain of what happens when it takes 15 years to bring a novel, first-in-class cancer treatment like Provenge to market: An accumulated deficit of $1.6 billion and paltry working capital of just $74.7 million. Problematic – given forecasts of continued flat sales through mid-2012.

"Come," said Chicken Little,
"We've sad news to bring,
The sky will fall,
Killing all,
And we must tell the King!”

Digging deeper into regulatory filings, however, the 10Q Detective believes Chicken Little running around the company and pointing skyward is premature – the sky “is not falling” at the Seattle-based biotechnology company – at least not yet.

Read more at 24/7 Wall Street: Dendreon - Not Running Out Of Cash

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

MF Global Stakeholders Trusted Corzine, Lose Everything

Highly leveraged, with limited liquidity, MF Global was unable to meet margin calls or the demands from regulators to boost capital reserves. An eleventh-hour attempt last weekend to raise more funds or find deeper pockets (a buyer for the entire company) failed, leaving protection under bankruptcy the only viable option.

Despite decimating the company, had CEO Jon Corzine succeeded in selling the derivatives broker-dealer to a third-party, he would have been entitled to a $12.1 million severance package, according to the terms of his employment contract. Ironically, thanks to the last Republican in the White House, George W. Bush, Corzine is unlikely to receive any going-away gifts.

Can the former Governor and Senator from New Jersey count on Democratic allies in the White House to bail him out of this debacle?

Read more at 24/7 Wall Street: MF Global and Corzine’s Folly

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

Ben & Jerry's: Out to Serve and Protect?

Unilever (UL-$34.16) has remained reticent as senior management of wholly-owned Ben & Jerry’s announced “deep admiration” for those protesters involved with the “Occupy Wall Street” movement. Against a spreading backdrop of violence and teargas – from New York to Oakland – one wonders how much longer before the global consumer goods conglomerate tells its Vermont-based ice-cream subsidiary to mind to its own business.

Read More at 24/7 Wall Street: Ben & Jerry’s Occupy Wall Street

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.