1. All DG Systems Are GoIf only Martha Stewart had been CEO of DG Systems ( DGIT). The folks at DG know exactly what to do with a chief executive found to have engaged in insider trading: nothing at all. On Monday the board of the company -- which electronically distributes advertisements to broadcasters -- reaffirmed its support for Chairman and CEO Scott Ginsburg despite a wee little legal setback Ginsburg suffered last week. That problem? Ginsburg, according to a three-judge appeals court, violated insider trading provisions of the Securities and Exchange Act. And, as a result of a jury's finding in a civil Securities and Exchange Commission case, Ginsburg should pay a $1 million fine and be enjoined from future violations of the securities laws and regulations. DG's board, in its Monday reaction, went straight for the silver lining: "The Court of Appeals did not bar Mr. Ginsburg from serving as an officer or director of a public company," board members said in a statement. "The Board of Directors continues to believe that the Company is well served by Mr. Ginsburg's continued service as Chairman and CEO." Yes. For all the crimes the founder of Martha Stewart Living Omnimedia ( MSO) committed in a cover-up, no one has actually yet decided whether her December 2001 ImClone ( IMCL) stock sale violated insider trading laws. On the other hand, Ginsburg -- back when he was CEO of a publicly traded company called Evergreen Media -- "breached his fiduciary duty to his company and to its shareholders on two separate occasions for the financial gain of his family members," the appeals court found. But the board of his current company still loves him -- shades of Michael Eisner's boardroom cheering section at Disney ( DIS). We at the Five Dumbest Things Research Lab have been following this case for a little while now -- first when
2. Maybe This Is What They Mean by 'Double Your Money in Real Estate'You want to make money in real estate? You don't want Donald Trump as a role model. No, you want John Rigas, the former Adelphia Communications CEO who's now on trial in New York City.
Rigas doubles his money -- and sales
3. The Notorious JoeWe at the research lab committed a grievous lapse in our coverage of Starbucks ( SBUX) last week. We must apologize.
|Java 'n 'Joe' |
Another cup of no
4. Big, Hard Thoughts About MicrosoftThe European Union isn't going to fix Microsoft ( MSFT). So maybe you can. To us, the 497 million-euro fine imposed this week on Microsoft symbolizes everything that's wrong with the government's attempt to make Microsoft play nice. It comes five years, for example, after Sun Microsystems ( SUNW) filed its first complaint in Europe, according to the San Jose Mercury News. It will take years more for anyone in Europe to collect the money, after all the appeals. It represents a microscopic amount of Microsoft's revenue and cash on hand. And it leaves us no doubt that this whole battle will start up all over again the next time Microsoft seeks to get into a new line of business. Which leads us to the latest in our sporadic series of reader contests.
|Mister Hardball |
Teaching Microsoft to play fair
5. OFHEO. Me Say OFHEO. Daylight Come and Me Want to Go HomeWho says the Bush administration isn't creating enough jobs? For evidence of employment growth in the U.S., you need look no further than the classified ads of The Wall Street Journal this week. That's where we discovered that the Office of Federal Housing Enterprise Oversight wants to fill over 30 jobs in its examination department. Hot dog! The jobs pay well -- they start at $73,500 a year -- and the ad says that OFHEO is "a fast growing, exciting agency."
|Dream Job? |
Don't bet the house on it