In Today�s
World, Major Companies Barter To Achieve Objectives
�
Executive Pay Comes In Form Of Barter
Incoming
American International Group president and CEO Robert Benmosche�s
salary will be paid in cash ($3 million) and barter ($4 million in
fully vested AIG stock). The stock will provide him with a
significant equity stake, aligning his interests with those of AIG.
(The package was �approved in principal� by Kenneth Feinberg, the
Treasury Department�s special master for executive compensation for
institutions that received U.S. government bailouts.
�
Barter, A Tool Used For Biggest International Deals
India plans to
turn its armed forces into a modern fighting machine to boost border
security and fight terrorism. They will be spending between $50- and
$55-billion over the next five years. When making big-ticket
purchases from the top defense companies around the world barter
enters the picture. The foreign companies will be required to
�offset� their sales by making a 30% (of every sale) purchase from
an Indian company (domestic supplier) or a similarly sized
investment within India.
�
Patent Settlement Embraces Barter
Align
Technology, the provider of the Invisalign teeth straightening
treatment, is providing (via barter) a 10% stake in its company to
Danaher as part of a patent settlement with one of Danaher�s
subsidiaries.
�
Media Giant Barters For Stake In TV Site
Walt Disney
negotiated a barter deal with longtime media rivals (News Corp and
NBC Universal, the creators of Hulu) to take an equity stake in
Hulu.com, the fast-growing web site where users can watch movies and
TV episodes for free. In exchange, Disney provides content �
episodes of ABC shows to Hulu.
�
Bankruptcy-Restructuring Sees Debt-For-Equity Barter Deal
Bally Total
Fitness Holding Corporation is finalizing its
bankruptcy-restructuring plan, which calls for lenders to take
control of the health club operator (300 health clubs). The
debt-for-equity barter deal will cut the company�s debt by $600
million. Lenders, under a pre-bankruptcy term loan, will receive 94%
of the equity of the reorganized company.
�
Bank Cements Win-Win Barter Deal With Clients
Spanish bank
Banco Santander SA, has quietly offered to reimburse its
private-banking clients their original investments in compensation
for losses arising from Bernard Madoff�s Ponzi scheme. The bank�s
effort is a barter type deal that will see the bank providing their
original investments in the form of preferred stock in Banco
Santander SA.
The preferred
shares will be issued by Santander and pay a 2% rate of annual
interest. In return, its clients will agree both to not sue and to
keep all of their current business and deposits at the bank.
�
Energy Trader Looks To Barter For Equity
Energy trader
Andrew Hall is in discussion with Citigroup to barter a substantial
chunk of Mr. Hall�s compensation for 2010, into equity (Citigroup
stock) from cash. Hall is the head of Citigroup�s energy-trading
unit Phibro LLC and made roughly $100 million in compensation in
both 2008 and 2009.
�
Hollywood�s Movie Stars Know The Value Of Barter Option
Top Hollywood
movie stars often choose to pass on upfront fees for starring in a
movie. Rather they�ll choose to accept the barter option (which in
essence is betting on themselves), thus passing on the guarantee fee
in exchange for a sizable back-end deal, which will include an
ownership stake (often 25% to 33%) in the film.
Attention Trade Exchange Owners. . .It�s GROW OR GO!
The magic bullet for growth is sales, always has been and always
will be...yet the industry�s overall growth is anemic. Why? Maybe
it�s because we�re not providing on-going education about our unique
way of doing business. Knowledge is always a pre-requisite to taking
sustained action.
And for those newcomers, the lifeblood of an exchange, awareness of
and understanding about the value of trading is even more important.
If you expect prospects to come aboard and your members to be more
active traders, but you are perplexed when the results are less than
you desire...there�s a good reason. You must continually educate
and motivate every month--month after month after month!
Such action is necessary because, let�s face it, more cash business,
not trade, is of paramount importance to your members. You must
break through this �cash only� focus and redirect their thinking
toward barter. Although most exchanges don�t see the importance of
doing so, many industry leaders are taking action and so can you.
As the owner of your own operation, there is an easy and
inexpensive solution for moving forward...look
into using The Competitive Edge newsletter. It�s a
camera-ready, 4-page, professionally written, informational
marketing tool...available in PDF format as well as print. So
regardless of how you reach your prospects and clients, you will
have the necessary vehicle.
Written especially for you, the busy trade exchange owner, I am
certain it will be the best investment you ever make.
For more information about The Competitive Edge, and how it
can benefit you
click
here.
IMS Files 2nd Quarter
Report
Showing Strong Operating Profit & Cash Flow
International Monetary
Systems (OTCBB:ITNM), a worldwide leader in business-to-business
barter services, recently filed its form 10-Q report for the second
quarter of 2009. It was the company�s most profitable quarter in
several years.
In addition, during the six-month period ending June 30, 2009, IMS
began to realize the benefits of the substantial reductions in
overhead that the firm had worked so hard to achieve over the past
year.
Some of the highlights
were:
�
Employee
costs reduced by more than $900,000 from those of the first six
months of last year.
�
Total
liabilities reduced by more than $1.4 million since December 31,
2008.
�
Net income
from operations improved by more than $800,000 over that reported
for the first six months of last year.
�
Unrestricted cash available increased by 44.8% since December 31,
2008.
�
160,672
shares (post-split amount) repurchased and added to treasury stock
since the end of last year.
During the quarter ended June 30, 2009, International Monetary
Systems generated gross revenues of $3,481,819, an increase of 3.9%
compared to revenue of $3,351,224 in the first quarter of 2009, and
a decrease of 1.6% compared to $3,539,434 of revenue in the second
quarter of 2008.
Operating expenses in the second quarter were $3,190,938, a decrease
of 3.2% compared to the first quarter of 2009, and a 13.8% decrease
compared to the second quarter of 2008.
The combination of revenue change and expense controls resulted in
net operating income of $290,881 for the quarter, compared to net
operating income of $56,314 in the first quarter of 2009, and a net
operating loss of $161,020 in the second quarter of 2008.
After adjusting for interest and income tax expense, the net profit
for the current period was $179,951, compared to losses of $54,369
in the first quarter of 2009, and $64,193 in the second quarter of
2008, respectively.
For
more information
click here.
