Since our price estimate already includes a healthy growth in diners seated over the future as well as the potential impact of the Foodspotting acquisition announced in January (see OpenTable Looks To Boost Diner Growth With Foodspotting Acquisition), we think that investors are underestimating the risks of its loss-making internationalbusiness and its increasing operational costs.
Dodd-Frank Global Culture Change 11-12-2012U.S. firms would see less internationalbusiness if those foreign banks dodge new compliance costs by curtailing their American trading activities.
Netflix, in short, is in play, with or without the poison pill, as cash flows will continue to be mediocre with rising content costs on a declining DVD business, aggressive international expansion and what the company hopes is a continued rebound in domestic streaming even with increased competition.
Rising costs, higher incomes for Chinese labor and an increasingly competitive internationalbusiness environment will pressure the big corporations in China again this year.
Indirect costs will likely include the loss of proprietary business information during intrusive inspections by international monitors and lost production time due to these inspections -- that may take as long as ten business days.