‘If you do not have to pay for the product, you are the product’

Secure and private conversations. Online. By Adrianus Warmenhoven Adrianus provides an excellent analysis of the perils of online communications within companies and organizations. Adrianus explains the protocol IRC: Internet Relay Chat (IRC) is an application layer protocol that facilitates communication in the form of text. The chat process works on a client/server networking model. IRC clients are computer programs that a user can install on their system. The message is simple – don’t rely on third parties to handle your confidential communications. As my grandfather told me, “If you do not know who the sucker is at the poker table, it’s you.” Adrianus Warmenhoven is a colleague in the DSI Global Network. Please visit Adrianus at Adrianus Warmenhoven. Richard Wottrich    ...

Behold the Russian Bear

By Richard L. Wottrich, CEO & Senior Consultant, International Services, DSI Global View LLC, Atlanta USA  “I am as brave as any other man. Come at me in the form of a rugged Russian bear, an armor-plated rhinoceros, or a tiger from Iran. Take any shape other than the one you have now and I will never tremble in fear. Or come back to life again and challenge me to a duel in some deserted place. If I tremble then, you can call me a little girl. Get out of here, you horrible ghost, you hallucination. Get out!”   Macbeth  Putin and Russia have been dominating the news cycle recently, as Americans cope with a totally unexpected result in their presidential election. Russian-backed hacking and leaking will no doubt be investigated and utilized as political ammunition until the next election. Meanwhile Russia, having found a tactic that is cheap and apparently works, has moved on to the upcoming Italian and German elections. This is nothing new. Putin has continuously been up to mischief over President Obama’s past two terms and beyond.  Russia has backed Assad in Syria and participated in a modern extermination of civilians unprecedented in recent Middle East history, prompting millions of Syrian refugees to flee into Turkey and the EU. Russia previously has annexed portions of Georgia, the Crimea, and is actively waging war in the Ukraine. The EU member states, worried about Russian energy supplies, are playing at sanctions and rationalizing the conflict into a personality cult about Putin. The tone and tenor for Putin’s more recent antics were set on March 6, 2009, in Geneva, when...

DSI Technology Expertise Case Study – Connor Manufacturing Services – Aerospace/Defense

Press Release, May 19, 2016, San Francisco USA Bill Fraser, an Estimator at Cadence Aerospace, said recently when talking about Connor Manufacturing Services, “Aerospace is a tough nut! Replete with specifications so complex and processes so tightly controlled as to bring mere mortals to their knees, this business is not for the faint of heart. This is what impresses me most about Connor Manufacturing Services. Embracing the most stringent requirements, your company is as capable as any I have encountered in my 38 years in the aerospace industry.” A 100-year-old firm, Connor is an Aerospace – AS9100C and Automotive – ISO/TS 16949:2008 certified company. From Cadence Aerospace to Tesla Motors, Connor is a worldwide leader providing customized solutions in precision metal stamping, wire forms, springs and integrated assembly needs. Connor provides engineering support and industry expertise in Aerospace/Defence, Automotive, Electronics, Medical Devices, Semiconductor, and Heavy Truck markets. Connor serves these markets with wholly owned factories located in the United States, China, Singapore and Malaysia. DSI Global View LLC coordinates a virtual Global Networking Platform composed of over 225 investment banking firms, consulting firms and university and technology centers in 35 countries. DSI builds Global Teams to meet specific client value-added IT, Joint Venture and M&A mandates. DSI CEO Richard Wottrich serves on the Connor board of directors. Contact Dennis Kwiecinski, President, Connor Manufacturing Services – http://www.connorms.com/ Contact Richard Wottrich, CEO, DSI Global View LLC, Atlanta USA, 312-286-5315 –...

Seeking Alpha Article – Benchmarking Tesla

Benchmarking Tesla Published on Seeking Alpha Apr. 12, 2016 11:39 AM ET DSI Global View LLC Summary Is Tesla fairly valued and can we measure Tesla’s value via benchmarking? Conclusion is that Tesla stock is a sell. Is it time to short Tesla? What does the near term future hold for Tesla?   Is Tesla fairly valued and can we measure Tesla’s value via benchmarking? Tesla (NASDAQ:TSLA) and its all-electric “Applesque” Model S have become stock market darlings and government supplicants, synonymous with the battle against climate change and the evolution of the electric automobile. But is Tesla worth its $250 share price and market capitalization/revenues ratio of 8.18 times its 2015 revenues? The purpose of this article is to determine Tesla’s value via benchmarking. When it comes to best practices in valuing a company through benchmarking the goal is to find good best-in-class corporate comparables. Through such comparisons we may see how financial ratios between two corporations correlate or diverge. We compare market perceptions and behaviors relating to the corporations to measure how risk is factored into their respective valuations. Because Tesla is valued at such a high market capitalization, we will focus on big corporations and their market capitalization/revenue ratios to isolate their relative market valuations. Relative capital expenditures also are isolated to demonstrate the impact on corporate future cash flows. Tesla has sold just 125,000 cars in 13 years. In 2015 Tesla says it delivered a bit over 50,000 cars. Meanwhile the total of all autos sold globally hit 88 million in 2015. Tesla’s unit production is not material to the automotive industry. Clearly almost the...

‘Through the Looking Glass’ Negative Interest Rate Redux

Richard L. Wottrich, CEO & Senior Consultant, International Services, Atlanta USA As we step ‘Through the Looking Glass’ in Alice in Wonderland into the world of negative interest rates, I am reminded of a conversation between Alice and the King. `I see nobody on the road,’ said Alice. `I only wish I had such eyes,’ the King remarked in a fretful tone. `To be able to see Nobody! And at that distance, too! Why, it’s as much as I can do to see real people, by this light!’ This writer explored negative interest rates a few years ago when they were still a novelty. Suddenly they are ‘de rigueur.’ Historically Switzerland imposed a negative interest rate on non-resident deposits in 1972-1978. That ‘surcharge’ drove rates to -40% in 1978. Switzerland did this to discourage inflows of capital seeking higher yields in the face of rapidly declining interest rates in surrounding European countries. Dependent upon its exports, Switzerland felt the need to deflate the appeal (value) of its currency. This policy lasted until 1982, when the Swiss realized that inflation was too high a price to pay for a weak currency. This however remains a problem for Switzerland today. As of last April over 30 percent of EU-issued bonds traded at negative interest rates. The Federal Reserve, Bank of Japan, Bank of England, and European Central Bank have managed interest rates since 2008 down to zero and beyond. As a result in certain cases depositors have to pay to deposit funds or buy bonds, accepting a negative interest rate. Negative interest rates have appeared on government bonds from Switzerland, Denmark, and Germany. Certain corporations...

North America 2016 Macro Logistics Trends

Richard L. Wottrich, CEO & Senior Consultant, International Services January 1, 2016, Atlanta USA The linked DSI “North America 2016 Macro Logistics Trends” presentation below was adapted from “U.S.-MEXICO SUPPLY CHAIN BLUEPRINT” as presented on April 15, 2015, to the United States-Mexico Chamber of Commerce Mid America Chapter – La Cámara de Comercio México-Estados Unidos (CCMEU) – in Chicago, Illinois USA, by Richard L. Wottrich. “North America 2016 Macro Logistics Trends” conclusions are the result of a DSI consulting assignment with an OEM Class-8 heavy truck parts manufacturer serving major truck manufacturers in North America. “North America 2016 Macro Logistics Trends” [embeddoc...