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Steven Kiel
Steven Kiel
Articles (136)  | Author's Website |

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March 07, 2012 | About:

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About the author:

Steven Kiel
Steven Kiel is the president and chief investment officer for Arquitos Capital Management, a Virginia-based investment management firm. He is a graduate of George Mason School of Law and a captain in the Army Reserves. He manages two spoke funds, The Freedom Fund, a value-oriented portfolio, and The Hayek Fund, a portfolio dedicated to free market principles. He can be contacted at [email protected] or through the firm's website at www.arquitos.com.

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Rating: 2.8/5 (24 votes)

Comments

ClydeMid
ClydeMid - 5 years ago    Report SPAM
Excellent perspective. Thank you.

I don't watch television much, and am appalled at some of the mindless shows that are on - but I never once thought that Colgate or Lucky Charms was somehow in bed with the mindset of the writers and producers because those companies chose to advertise during the airtime. It's a false association.

I do, however, disagree with you one point. It's my belief that Rush's listeners are similar to Paul Harvey's from decades ago - a product was bought because Paul talked about it on his show. I put coal tar in my hair because Paul said that T-Gel worked. And it did. Everyone knows that Carbonite was pimped hard by Rush, and that they took their sales and ran over this situation. I don't think the customer base will come back as quickly as you suggest. And perhaps Rush, out of spite, and a competitor, out of a desire for market position, will be a replacement to Carbonite.

AOL's stock didn't move? Rush listeners that trade on political whims wouldn't own it because of the HuffPo deal. Further, have you looked at the institutional ownership? There's not enough room left for Rush listeners to move the stock. And I view JCP and Sears as long-term holds anyway - fundamentally different from Carbonite which is kinda sorta a start-up break-out investment.

All that said, great article.
Eliot Ness
Eliot Ness - 5 years ago    Report SPAM
Carbonite's 2011 Annual Report shows that this dot-com disaster has vaporized $100.4 million over the past seven years and is speeding toward insolvency by losing $2 million more each month.

http://www.sec.gov/Archives/edgar/data/1340127/000119312512101462/d277280d10k.htm

Carbonite pays its CEO David Friend $500,000 per year to manage the loss of $500,000 per week. That is insane! (Except here in Washington, DC.)

When Carbonite's piggy bank is empty it will perforce be shut down or liquidated in a fire-sale.

Limbaugh will be doing his listeners a service by NOT shilling Carbonite's service and/or stock because the company's business model simply is not that of an "ongoing concern." It is run as an impending "spectacular dot-com flameout" that enriches its executives and insiders at the expense of shareholders.

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