Racism and Business Don't Mix

If you follow the NBA, then you know about Donald Sterling. For those of you who don't, he's the controversial billionaire owner of the Los Angeles Clippers. And just yesterday, He was accused of racism against black people. Normally, this wouldn't be such a big deal. - racism isn't acceptable, but people can have their own opinions - but the core of Sterling's multi-million dollar business is reliant on black people. 11 out of the 13 players on their roster, not to mention their head coach, have African American Blood running through their veins. The entire debacle was precipitated by a recorded phone conversation between Sterling and his girlfriend. Somehow TMZ obtained the tape, and now it's floating around on the internet.  http://www.huffingtonpost.com/2014/04/26/donald-sterling-racist_n_5218572.html

As heard from the tape, Sterling is heard angrily chastising his girlfriend after having learned she took a picture with Magic Johnson, a black point guard who played for the Los Angeles Lakers. He states for her to "admire him in private" and "don't bring him to the games." Naturally, the entire sports world has blown up with this news, but from a business perspective, it's much worse.


Sterling is heavily involved in real estate. And having investments in the Los angeles area means that he has to work with minorities such as blacks and hispanics. This tape could irrevocably damage his reputation as a business owner. It's already made him into being a bad person. But now he's vulnerable to many lawsuits for employee discrimination. When combined with the fact that many other giant organizations such as the entire NBA are now against him (the NBA has launched a full investigation), he's bound to be taken to court eventually. Whether he settles for an undisclosed amount or countersues is a moot point.



Meanwhile in the stockmarket: (these are all my own opinions, so please don't consider my advice as law)
Ford (F) hit a speed bump: it's recent profits dipped, but as far as I can tell, their inventory hasn't piled up to what I'd consider a red flag, so I'm going to keep my shares and wait for them to hit the summer sales session before I make any immediate decisions.

Rite Aid (RAD): is now what I'd consider a growth stock. They've finally strung together several successive quarters of growth and are no longer just reorganizing.

Apple (APPL): The company has recently signed a contract with LG and purchased nearly 10 million small OLED screens. I'm pretty sure this is an indicator that the company is finally ready to enter the wearable technology market. Also, part leaks, as well as blueprint leaks have identified Apple as releasing a bigger iPhone this year. A new, untapped market  + a refresh on the existing one = higher profits? I think so!

(AMZN): They just won a contract to stream HBO's old shows over Netflix. Sweet! Their new FireTV boxes don't seem to be so sweet. But they are releasing a phone. Sooooo.....I'd still hold out. Personally, I've always been holding out on Amazon because they are notorious for not releasing key sales figures. Sometimes I think they might be in the center of a giant scam, but then I realized there's no way the Federal trade comissioned would let something like that happen. Oh wait... Comcast merging with Time Warner Cable is an example? Oh dear.


Something happy for the week: google up "Quokka" and hit images. You're welcome.