MISSION INTANGIBLE

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MISSION:INTANGIBLE, the blog of the Intangible Asset Finance Society, offers critical comments on intangible asset, corporate reputation, and finance; supplemented by quantitative reputation metrics. Intangible assets include business processes, patents, trademarks; reputations for ethics and integrity; quality, safety, sustainability, security, and resilience; and comprise 70% of the average company's value. MISSION:INTANGIBLE is a registered trademark of the Intangible Asset Finance Society.

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Apple: Bruised reputation

C. HUYGENS - Tuesday, September 30, 2014
Headlining the Forbes article in February of this year "Apple Acting More Like Microsoft Than Facebook and Google," Steve Schaefer openly wonders if the law of large numbers is working against the once star iconoclast. Recent technology stumbles suggest the problem may be more closely related to organizational mass and control rather than financial variables, and no where is the loss potential more clearly evident than in the evolution of Apple's reputation. Notwithstanding a high reputation premium and low value risk, at 0.92 and 0.10 percentiles, respectively, Apple no longer commands the highest premium nor the lowest risk among its 73 peers.

The new Sprint

Nir Kossovsky - Friday, June 12, 2009
Last Friday June 5 2009, Sprint Nextel Corp’s CEO Dan Hesse told analysts and reporters, "We're a very different company than we were 12 months ago. The Pre is the coming-out party for the new Sprint, to show off the new Sprint." The reputation metrics provided by Steel City Re’s IA (Corporate Reputation) Index, have yet to reflect this corporate change.

The Index, which correlates with reputation surveys such as those published by Forbes, Fortune, and Harris Interactive, captures the financial implications of stakeholder behaviors and expectations of stakeholder behaviors as determined by corporate reputation. The Index is a good leading indicator of financial performance and returns on equity.



The Steel City Re Index shows that over the last twelve months, Sprint's reputation has deteriorated from the 33rd percentile to the 12th percentile among the 34 companies that comprise the Wireless telecommunications services sector. The Company's EWMA IA volatility has generally been increasing and hovers around 4 log orders of magnitude. These are all features seen in companies that are inferior stewards of their intangible assets, and it is therefore not surprising that Spring has underperformed the median of its peers by 8.5%.

As for the hot play as of 10 June 2009, the firm with the top reputation ranking among Wireless telecommunications services sector entities is China Mobile Ltd. (ADS) (NYSE:CHL). For those of you who do not follow this company, we reproduce the following from their home page: "We are pleased to note that the Company ranked number 1 in the China Section of FinanceAsia's 2009 Asia's Best Companies poll in the four categories: Best Managed Company, Best Corporate Governance, Best Corporate Social Responsibility and Most Committed to a Strong Dividend Policy." With an ROE that is 0.5% above the median of this sector to date, this is one to watch.


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