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Theranos Low on Cash After Settlement with Walgreens

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Re: Theranos Low on Cash After Settlement with Walgreens

#61
post #51
post #49

Earlier quoted context omitted.

If you're an investor, do you want to get some pennies back on the dollar, or do you want to get 0 pennies back on the dollar? If they liquidate they can take that cash and pay out something, at least to some class of investors.

I would imagine writing the whole thing off as a loss is better from a tax perspective.

I don't think it'd ever be better because you're always writing off the loss, the difference is the size of the loss. It's better to, e.g., get 10K back out of 100K investment and claim a 90K loss, versus getting back 0K with a 100K loss claimed. You're only getting back your taxes from that 10K difference in losses, versus getting the 10K back. The delta would always be there.

Re: Theranos Low on Cash After Settlement with Walgreens

#62
post #51

Earlier quoted context omitted.

I would imagine writing the whole thing off as a loss is better from a tax perspective.

Please excuse my ignorance, but I don't understand this. Scenario 1: I have $100 in gains this year. I owe $30 in taxes. I am left with $70. (Say $100 is 30% bracket) Scenario 2: I have $100 in gains this year. I write off a $10 loss. (Say $90 is 25% bracket). I owe $22.5 in taxes. I am left with $67.5. Is it the case that writing off the loss is better, if you can be bumped so far down the brackets that (gains - los…

No, it's continuous with no edge effects like this because only income within a bracket is taxed at that bracket.

Re: Theranos Low on Cash After Settlement with Walgreens

#63
post #36

Earlier quoted context omitted.

Is there a decent future for business schools? Yes, as long as you understand their purpose. They exist as a form of class signalling. [0] Many of the older forms of nepotism/cronyism have been made illegal. Racial and IQ discrimination are also illegal. Therefore, business schools and law schools fill the gap. They exist to tell an employer that the applicant is either a member of their class or an ally. [0] http://…

I'm not a fan of floods of MBAs, but surely the degree serves some purpose other than class signalling. It seems like an exercise in typical engineer hubris to think is a trivial pursuit could learn in a week. Suppose you take a veteran engineer heading into management, and send him/her to get an MBA. Will they come back no better for it?

> I'm not a fan of floods of MBAs, but surely the degree serves some purpose other than class signalling. It seems like an exercise in typical engineer hubris to think is a trivial pursuit could learn in a week.

You won't find engineers saying that medical degrees are just BS.

Fact is, business degrees are thin on content. I know this because I studied engineering and went to a business school. Now of course any degree has some kind of content, but business content just has very little that would pass for being academic content. The core stuff like Porter's Five Forces and Taylorism is no different than what you'd "know" if you read some of those airport magazines now and again.

Imagine an engineering class where you just watched a Discovery show about how the Channel Tunnel was made. Yes, it's content, but nobody should be hired to build tunnels based on having seen that video of the French guy shaking hands with the British guy.

But that is how we hire executives. A guy who knows some things about the history of some industry, and can talk about it confidently.

> Suppose you take a veteran engineer heading into management, and send him/her to get an MBA. Will they come back no better for it?

They'll know something about the culture of management, which will be useful for duping someone into promoting him. Well actually I rather like the idea of having technically trained managers, so I'd cheer that on. But not because you'll know how to manage from studying management.

Re: Theranos Low on Cash After Settlement with Walgreens

#64
post #6

Non-paywalled Article (Vanity Fair): https://www.vanityfair.com/news/2017/08/theranos-walgreens-s... It seems this whole thing was a "build hype now, invent the actual stuff later" policy taken to the extreme. Elizabeth Holmes has done a disservice to the tech community's reputation.

"Fake it until you make it" is commonly accepted strategy in the "start up" community..

Re: Theranos Low on Cash After Settlement with Walgreens

#65
post #6

Non-paywalled Article (Vanity Fair): https://www.vanityfair.com/news/2017/08/theranos-walgreens-s... It seems this whole thing was a "build hype now, invent the actual stuff later" policy taken to the extreme. Elizabeth Holmes has done a disservice to the tech community's reputation.

No she hasn't. She just signaled to the world all the VC funds staffed by idiots that think they are the smartest peeps in the room. All the science and life-science funds passed on Theranos b/c they could smell the bullshit from Holmes a mile away. No one in the life-sciences or science industry was harmed by Holmes lies. The only ones hurt were the patients, un-knowing employees, and the inept vc funds.

Re: Theranos Low on Cash After Settlement with Walgreens

#66

It's interesting that at this point any institutional investor still has funds parked in Theranos. They must really think they know something that everyone else does not know.

it can mean a variety of things, including that they don't want to realize a loss on the current valuation.

Re: Theranos Low on Cash After Settlement with Walgreens

#67

Earlier quoted context omitted.

My question is why isn't Elizabeth Holmes in prison? She is a disgrace. And I was a huge fan of hers (I thought she would be a good role model for my daughter) before her crimes came to light.

In case you were in a coma 2008-2009, the US justice system likes to settle with corporations, but almost never actually tries to convict white collar criminals. Here is a whole book subtitled "Why the justice department fails to prosecute executives." https://www.amazon.com/dp/B06XBZFQR2/ref=dp-kindle-redirect?... It is very well reviewed.

I've got a friend that puts much stock in the interviews that CEOs give on the financial TV networks. He keeps insisting that the CEOs on these shows rarely lie, because they would otherwise go to jail or otherwise get sued by their investors.

I'm not so sure...

Re: Theranos Low on Cash After Settlement with Walgreens

#68

A company has not only totally failed in the market but employed deception which lead to a lawsuit, my question is how do they have any money left at all? Isn't this such a miss that whatever was left should just be returned to investors and the company close down. Does anyone have a scenario where this company becomes viable?

In all sincerity: does Theranos have anything left? This isn't 23andMe where a viable product got caught up in legal fights over reporting. As I understood it, the fraudulent component here was "everything at all worthwhile about the product". Are they just a shell at this point, trying to use the team and leftover money as a basis for a new project? Do they have some existing offering which isn't totally valueless?…

>Do they have some existing offering which isn't totally valueless

There's a lot of patents, via Holmes. Someone in the last Theranos thread also pointed out that whatever hardware does exist may have licensing value for other developers. The owners may be planning to part it out.

Re: Theranos Low on Cash After Settlement with Walgreens

#69

A company has not only totally failed in the market but employed deception which lead to a lawsuit, my question is how do they have any money left at all? Isn't this such a miss that whatever was left should just be returned to investors and the company close down. Does anyone have a scenario where this company becomes viable?

My question is why isn't Elizabeth Holmes in prison? She is a disgrace. And I was a huge fan of hers (I thought she would be a good role model for my daughter) before her crimes came to light.

Which crimes?

Re: Theranos Low on Cash After Settlement with Walgreens

#70

A company has not only totally failed in the market but employed deception which lead to a lawsuit, my question is how do they have any money left at all? Isn't this such a miss that whatever was left should just be returned to investors and the company close down. Does anyone have a scenario where this company becomes viable?

My question is why isn't Elizabeth Holmes in prison? She is a disgrace. And I was a huge fan of hers (I thought she would be a good role model for my daughter) before her crimes came to light.

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