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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (2045)	10/9/2014 10:41:21 AM
From: Jerome	Read Replies (2) \| Respond to of 26745

Kirk, With Apple , GM and Walmart the financial arms may be at some distance from the CEO's office. All these financial departments have their own rules. Mary Barra of GM has to answer for a lot of GM problems with suppliers, even though she did not personally set up the problematic contracts. example...Each GM contract stipulated a 5% reduction in supplier price every year. Walmart financial arm does a whole lot stupid stuff without informing the CEO. Example....putting some employees paycheck on a Walmart debit card that is laden with hidden activation fees and other fees. I would guess that that Apples' financial arm put the squeeze on GTAT without the CEO's approval. Two items stand out. 1) Apple withheld final payment to GTAT of 137 million dollars last month, and this caused a financial crunch. Had they paid that payment bankruptcy could have been avoided. GTAT spent hundreds of millions of dollars outfitting the Mesa AZ factory and that was a huge drain on GTAT. The fact that GTAT did not insist that Apple buy all the sapphire they produced in the Mesa plant, speaks poorly of GTAT's planning ability.