GLG News by Valuation Specialists

1. Additional hedge fund regulation is likely.2. Federal regulation is favored by some in lieu of different states each doing their own thing.3. Billions of pension dollars going into alternatives has regulators worried.

The company identified 2 accounting issues that were mishandled by the company.One is a misapplication of GAAP. The other is estimation error.These may indicate that the company's accounting, reporting and control systems may have problems, with future negative news to come.

Option-related restatements are indicative of control problems, as well as potentially managerial opportunistic behavior. While the option effect may be small, companies often find additional issues that need restatements or other corrective actions (management changes), resulting in further negative...

1. Defined benefit plans invest in company stock.2. Fiduciaries often select company stock as a 401(k) plan investment alternative.3. Anything that impacts company share price must be considered before investing. This includes practices relating to executive option grants.4. Problems related to backdated...

1. Before investing, institutions must pay attention to executive compensation practices as part of their due diligence.2. Pension fiduciaries have a particularly important responsibility to evaluate relevant risk factors before investing in company stock.3. Problems related to backdating of options...

Management announces several topics, including an upcoming restatement of previously issued financial statements due to revenue recognition issues. The reported Form 8-K of the company reveals that the investigation into prior option backdating issues yielded other financial statement flaws.

These are summary points related to the FT article and my analysis. 1. Several recent reports have called for increased deregulation as a way to promote capital market development.2. Deregulation requires institutional investors such as pension funds to be even more vigilant as corporate watchdogs.3....

1. Federal entitlements are large and growing.2. The extent to which these programs are grossly underfunded can wreak havoc on the U.S. economy.3. Investors need to understand the relationship between entitlement spending and macroeconomic policy.4. Investors will no doubt be affected by a downturn...

1. The graying of populations around the world is undeniable.2. The cost of post-retirement benefits is increasing, along with extended lifespans.3. The over-55 set is likely to continue working after "retirement."4. Companies will be affected by changes in hiring trends and disposable income of...

1. In the aftermath of the Pension Protection Act of 2006, pension funds are under more pressure to close funding gaps.2. Pension fund fiduciaries are being encouraged (perhaps forced) to examine interest rate risk strategies.3. There is a groundswell of interest in long-term bonds on the part of pension...