Knowledge@Wharton Newsletterhttp://knowledge.wharton.upenn.edu 
October 24-November 6, 2001
What's  Hot
How Swissair Landed in  Trouble
The problems of Swissair clearly multiplied after the  September 11 terrorist attack and subsequent plunge in ticket sales. But  industry experts say the company's woes run deeper, involving management  missteps that could occur at any corporation as well as troubles rooted in the  economics, politics and culture of Europe.http://knowledge.wharton.upenn.edu/whatshot.cfm 
Finance and Investment
A New Approach to Valuing Biotech Stocks
Now  that the U.S. faces a bioterrorist attack in the shape of anthrax, stocks of  biotechnology companies are soaring. But while these companies have promising  technologies, they are years away from profits. The boomlet shows, however, how  hard it is to value biotech stocks. Analysts often use proxy drivers such as the  number of patents or the dollar value of partnerships to value such companies,  but these drivers fail to show if the companies will be able to turn their  research into marketable products. Research by Karl Ulrich, a Wharton professor  of operations and information management, and other colleagues offers insights  into a new approach to value biotech companies. Hint: Look at how the company's  drug discovery process is organized.http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=454 
Finance and Investment
James J. Cramer Finds Truth and Inspiration in the Shopping Habits  of Americans
When James J. Cramer, co-founder of Smart Money  and TheStreet.com and analyst on CNBC, wants to know where the U.S. economy is  headed, he looks at the performance of major retailers. That, and his  observations on everything from gasoline to telecom to Winston Churchill, formed  the basis for an optimistic economic outlook he recently shared with  participants at the Wharton Investment Management Conference.http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=456 
Finance and Investment
Should Hong Kong Worry When China Joins the  WTO?
As Frederick Lau sees it, what's good for China is good  for Hong Kong. Lau, chief representative of the Hong Kong Monetary Authority's  New York office, talked about China's entry into the World Trade Organization -  and other events that will have an impact on Hong Kong's future - during a  meeting earlier this month with the Wharton Asia Club.http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=449 
Managing Technology
Behind the Telecom Meltdown: Too Much Money, Too Little  Foresight
While investors in the late 1990s remained  oblivious to signs of trouble, it is clear in hindsight that the  telecommunications bubble could not possibly have lasted, according to a panel  of telecom experts at the October 12 Wharton Finance Conference. They cite a  number of reasons for the unraveling of the industry, and point to Europe and  Asia as the real leaders in telecom.http://knowledge.wharton.upenn.edu/articles.cfm?catid=14&articleid=451 
Finance and Investment
Citigroup CFO Sees Economic Recovery in  Mid-2002
"It is going to be a very, very tough next couple of  quarters," is how Todd S. Thomas, CFO of Citigroup, described the near-term  economic outlook to an audience at the Wharton Finance Conference on Oct. 12.  But longer-term, Thomson was more optimistic, predicting that increased  government spending and/or tax cuts would stimulate a recovery. He also  suggested that the financial markets must learn to adapt to the reality of  "continued minor terrorism."http://knowledge.wharton.upenn.edu/articles.cfm?catid=1&articleid=450 
Managing Technology
An Insider's Scathing Look at E-commerce  Excesses
As a manager in an Old Economy firm, Brian Ross  naturally felt defensive when proselytizers of the New Economy preached that the  Internet "had changed everything" and folks (like him) who "just didn't get it"  would soon be by-passed by competitors who did. Well, Ross has done more than  survive; he has written a book entitled, When the Caffeine Wears Off: De-Hyping  the New Economy, in which he cheerfully kicks 'em while they're  down.http://knowledge.wharton.upenn.edu/articles.cfm?catid=14&articleid=452 
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Links  from Knowledge@Wharton Sponsors
GE Capital:
Sales-Leasebacks: Benefits and Challenges
Today  CFOs must negotiate their way through a weakened economy. But even as they  search for new ways to generate revenue and conserve capital, CFOs from a  variety of industries are discovering the value of one strategy --  sale-leasebacks -- that for many years was primarily focused on real estate  transactions. Sale-leasebacks are generally structured to unlock the equity a  business has in its assets (like machinery and equipment), converting that  equity into cash.http://www.gecfo.com/resources/wharton.html?c=Wharton&n=September&t=email 
GE Capital:
Maximizing Your Trucking Fleet in Tough  Times
Tough times have hit the trucking industry as shippers  evaluate the best way to move goods around the country: Lease or buy? For-hire  truckers or private fleet? The queries arise as a glut of used trucks comes on  the market and some shippers evaluate how long they can stretch existing leases.  Learn how to maximize your trucking fleet in tough times from the experts at  Wharton and GE Capital.http://www.getrucking.com/resources/wharton.html?c=Wharton&n=Sept&t=email 
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