Earlier, we had blogged on how BearingPoint’s stock had fallen below 20 cents a share, clearly others were also taking notice. Just days ago on November 13, 2009, BearingPoint, Inc. received notice from NYSE Regulation, Inc. that the NYSE had decided to suspend BE's common stock from trading prior to market opening on Monday, November 17, 2008. The NYSE based its decision on the "abnormally low" trading price of BE common stock, which closed at just 7 cents on November 12, 2008. Further, BE had previously fallen below the NYSE's continued listing standard for minimum average closing price of $1.00 over a consecutive 30 trading day period and minimum average market capitalization of $100 million over a consecutive 30 trading day period.
BearingPoint is appealing the decision. Nonetheless the stock is out of the NYSE for now and trades as BGRP.PK on the OTC (Over the Counter) exchange as a so-called penny stock on pink sheets. The stock price is not much more than a penny, falling to just 4.5 cents a share on November 24, 2008, and reaching an abysmal low of 2.5 cents on November 18, 2004. With 220 million shares outstanding, the market capitalization of this stock is about $10 million, while its revenue is close to $3.5 billion or $10 million for each day of the calendar year.
Again, we ask, where does this lead, will BearingPoint finally become a private company and be spared of daily market valuations. Really, at this price, even an ESOP could buy out the equity interest.
Monday, November 24, 2008
Tuesday, November 18, 2008
PwC Opines on Healthcare Policy in an Obama Administration
During one of the most riveting election campaigns in recent times, President-Elect Barack Obama has achieved a historic landslide victory.
Now comes the tough part. Delivering on his promises in a tough financial environment.
One key issue that Obama embraced was the institution of universal health coverage by reforming the current US health system to expand access and make health care less expensive.
In a comprehensive report, PricewaterhouseCoopers examines what this all means in dealing with how and who will pay for these programs; impact of expanding health insurance coverage; and ensuing strains on the existing health care system.
Here are the important points in this report:
The Obama plan could provide coverage for two-thirds of the uninsured, and lead to a taxpayer annual cost of $75 billion if enacted in 2009. But finding this money under tight budgetary conditions will be a challenge
In Massachusetts, where universal healthcare was made into law provides an excellent example of how this could play out. The state now has the lowest uninsured rate in the country, reversing its position from the most expensive healthcare state in the US
40% of about 30 million Americans who would get access to health insurance would obtain this through their employers. This trends reverses a troublesome movement towards erosion of employer-based coverage. A backdrop to all this are increasing number of 65+ aged baby-boomers.
About one-third of the cost of the Obama plan could come from existing funding for the uninsured, with the balance coming from repealed tax cuts, raising taxes or other constraints in spending.
Managing costs is critical. Without tough limits, pressure from healthcare costs could increase costs rapidly over time and reduce its effectiveness; and consequently its mandate of keeping federal costs sustainable.
PwC posits that the entire health industry can improve care and lower costs through public-private efforts, specifically through five ideas below and some bold ideas that could lead to positive disruptions
Keep people well
Reorder treatment around collaboration
Simplify the system
Make interoperable electronic medical records a reality
Use genes to pick the lock on disease
The report also discusses in detail how the Obama plan impacts employers, providers, insurers and hospitals; and a fascinating read for all those in the healthcare industry and general knowledge for all.
It can be downloaded at http://www.pwc.com/extweb/pwcpublications.nsf/docid/9A205B0B97EB9E50852574FE0014DE06
Now comes the tough part. Delivering on his promises in a tough financial environment.
One key issue that Obama embraced was the institution of universal health coverage by reforming the current US health system to expand access and make health care less expensive.
In a comprehensive report, PricewaterhouseCoopers examines what this all means in dealing with how and who will pay for these programs; impact of expanding health insurance coverage; and ensuing strains on the existing health care system.
Here are the important points in this report:
The Obama plan could provide coverage for two-thirds of the uninsured, and lead to a taxpayer annual cost of $75 billion if enacted in 2009. But finding this money under tight budgetary conditions will be a challenge
In Massachusetts, where universal healthcare was made into law provides an excellent example of how this could play out. The state now has the lowest uninsured rate in the country, reversing its position from the most expensive healthcare state in the US
40% of about 30 million Americans who would get access to health insurance would obtain this through their employers. This trends reverses a troublesome movement towards erosion of employer-based coverage. A backdrop to all this are increasing number of 65+ aged baby-boomers.
About one-third of the cost of the Obama plan could come from existing funding for the uninsured, with the balance coming from repealed tax cuts, raising taxes or other constraints in spending.
Managing costs is critical. Without tough limits, pressure from healthcare costs could increase costs rapidly over time and reduce its effectiveness; and consequently its mandate of keeping federal costs sustainable.
PwC posits that the entire health industry can improve care and lower costs through public-private efforts, specifically through five ideas below and some bold ideas that could lead to positive disruptions
Keep people well
Reorder treatment around collaboration
Simplify the system
Make interoperable electronic medical records a reality
Use genes to pick the lock on disease
The report also discusses in detail how the Obama plan impacts employers, providers, insurers and hospitals; and a fascinating read for all those in the healthcare industry and general knowledge for all.
It can be downloaded at http://www.pwc.com/extweb/pwcpublications.nsf/docid/9A205B0B97EB9E50852574FE0014DE06
Tuesday, November 11, 2008
KPMG Survey Finds EU Heading Rapidly Towards Recession
KPMG finds the European Union is quickly heading towards a recession. The recently published KPMG Business Outlook Survey, which questions 2,800 service sector firms all across the Union finds that the 12-month outlook for business activity has turned negative. Moreover, activity is expected to decrease on both volume and revenue fronts, and disturbingly, every non-price measure has fallen into negative territory, including new business, employment, profits, capital expenditure and outsourcing.
A silver lining to this dismal outlook is that expectations for inflation have also decreased, along with the precipitous decline in oil prices and commodity price levels since June 2008. But this has little offsetting impact on the larger decline in consumer and business demand.
As further bad news, confidence in the EU service sector economy on business activity outlook over the next year also reduced dramatically in October to a record survey low. This net balance of expected volume of business activity has fallen three times in a row since April 2007 and now stands at -2.9 in October, indicating that more service companies expect activity as also revenue to decline than those anticipating growth.
Along with this negative expectations for activity and revenues and profit pressure, KPMG finds that EU service providers are set to cut workforces over the next twelve months. The net balance fell quickly into negative territory for the first time in October, to -14.4, from +12.2 in April.
According to Andrew Smith, Chief Economist, KPMG, “The extreme downturn in service sector confidence — output, profits and employment are now all expected to fall in the coming year — spells recession for the wider economy as well. The only saving grace is the collapse in inflation expectations, leaving the door open for deeper interest rate cuts in coming months”
While there is raging debate on whether the US is technically in a recession, which requires two consecutive quarters of negative economic growth, this survey shows that EU is also rapidly heading in the same direction with some lag. There was some small hope that EU may have dodged the recession bullet, but this may not be so according to this survey. Now the whole world may be following US’ lead and heading into economic downturn.
A silver lining to this dismal outlook is that expectations for inflation have also decreased, along with the precipitous decline in oil prices and commodity price levels since June 2008. But this has little offsetting impact on the larger decline in consumer and business demand.
As further bad news, confidence in the EU service sector economy on business activity outlook over the next year also reduced dramatically in October to a record survey low. This net balance of expected volume of business activity has fallen three times in a row since April 2007 and now stands at -2.9 in October, indicating that more service companies expect activity as also revenue to decline than those anticipating growth.
Along with this negative expectations for activity and revenues and profit pressure, KPMG finds that EU service providers are set to cut workforces over the next twelve months. The net balance fell quickly into negative territory for the first time in October, to -14.4, from +12.2 in April.
According to Andrew Smith, Chief Economist, KPMG, “The extreme downturn in service sector confidence — output, profits and employment are now all expected to fall in the coming year — spells recession for the wider economy as well. The only saving grace is the collapse in inflation expectations, leaving the door open for deeper interest rate cuts in coming months”
While there is raging debate on whether the US is technically in a recession, which requires two consecutive quarters of negative economic growth, this survey shows that EU is also rapidly heading in the same direction with some lag. There was some small hope that EU may have dodged the recession bullet, but this may not be so according to this survey. Now the whole world may be following US’ lead and heading into economic downturn.
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