Tuesday, September 19, 2006


BN-CVO... Again!.... and Other Stuff

Banta-Cenveo heats up... Banta had a web-based investor call outlining cost savings plans, and... a special $16 dividend to stockholders of record on November 10. The stock will drop by about that amount on that day, which is about $5 more than the stock has moved after the CVO kerfuffle started (at about $35). As I am writing this, CVO has not responded, but this certainly removes BN money from the possibility of being raided after a takeover, making it less attractive as an acquisition. No doubt, there will be a CVO response, and it will probably mention what a bad decision this is, especially noting the fact that BN is borrowing money to pay the dividend. It's such a shame that this stuff is going on because it really chews up management time... and those investment bankers and lawyers are very expensive. That time and money is better deployed elsewhere in restructuring the business and reinvesting in it. There is a chance that CVO and its investors, who have probably been buying BN stock at its lows and its rebound, may take the dividend, declare victory and go home. I suspect, however, they're in this for the long haul, and that these actions will be identifiying the great need for Cenveo's management acumen in Banta.
Reuters story http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-09-14T172415Z_01_BNG228992_RTRIDST_0_SERVICES-BANTA-UPDATE-2.XML&rpc=66&type=qcna

Veronis Suhler Stevenson has issued their latest forecast of the media business.
Overall communications spending is on pace to grow at an accelerated rate in 2006, driven by double-digit growth in alternative advertising and marketing strategies...Over the forecast period from 2005 to 2010, spending on media and communications will increase by more than $330 billion to $1.2 billion. In 2000 the industry spending total just over $700 billion...Internet and mobile services is one of the fastest growing segments of the media industry with a projected growth rate of 14.7 percent over the next five years, but according to new data compiled by VSS the fastest growth within internet and mobile services is coming from traditional media companies...Marketing services was the largest and fastest growing communications sector in 2005, growing 9.1 percent to $309.93 billion, and is expected to rise at a five-year CAGR of 8.0 percent to $455.72 billion in 2010, fueled by growth in direct response media, event marketing and custom publishing...Never have there been so many media options available to advertisers and consumers, a trend that has both excited and frustrated brand marketers as media buying decisions have become more complicated by a market veering toward new media.
Also reported in the Financial Times http://www.ft.com/cms/s/956196d8-41cb-11db-b4ab-0000779e2340.html

Case study about effective use of e-marketing... yet another glimpse about how communications efforts are evaluated.

Yahoo starts new classified service

Valassis has a free report on the effectiveness of newspaper inserts

PC World has its own article about the hard drive's 50th birthday

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