Archive for April, 2009

The Connecticut Secretary of the State’s office published first-quarter 2009 business filing data (business closings and start-ups) on Monday. The headline of the press release was “1st quarter of 2009 saw another record number of Connecticut businesses shut down.” Company shut downs totaled 3,477, with the pace picking up month-over-month into March (the figure was up 16% year-over-year). On the flip side, new start-ups totaled 6,941 (also increasing m-o-m into March), which is nearly double the number of companies that closed, but is still down 13% y-o-y and the lowest tally since 2001. At TradeFlow21, we unmistakably recognize the harsh economic climate. However, at the same time, we are very cognizant of the importance of entrepreneurial spirit (6,941 new businesses in Q1) and of the key role of small businesses: per the CT SOS press release, “Small businesses have created over 90% of all new jobs in Connecticut in the last 10 years and they are the backbone of our economy.”)

This Friday, TradeFlow21 is honored to host its first annual trade summit: Export Connecticut! Middle East Trade Summit. Thus far, approximately 40 Connecticut companies from a variety of industries have registered. We anticipate a lively and informative event: opening remarks by Connecticut Lieutenant Governor Michael Fedele, a keynote address by former U.S. Ambassador Shaun Donnelly (Sr. Director, National Assoc. of Manufacturers), the release of the state’s 2008 International Trade Survey by Peter Gioia, V.P. and Economist at CBIA, and a blue-ribbon round table panel discussion. We look forward to seeing your there. — TradeFlow21: Commerce | Prosperity | Security

On Thursday, shares of Providence, Rhode Island-based Textron (NYSE: TXT) soared 49% to $13.56 on a report by a Kuwaiti newspaper that said investors from the UAE and Kuwait were eying a takeover at $21/share. Textron, the maker of Cessna Aircraft corporate jets and also a defense contractor (Bell Helicopters), traded as high as $65 last year, before spiraling down to as low as $3.50 last month.  The problem with Textron is two-fold, although neither issue is likely to ground Middle East investors. First, its financial arm has effectively turned Textron into another victim of the credit crisis — a JP Morgan analyst says it has a negative value. Second, there is no chance Bell Helicopter will find itself under non-US ownership given its defense ties. Long story short, the emergence of Middle East investors, as opposed to earlier rumors of a potential takeover by a US defense player, should be welcomed by stakeholders. Trading under $7.50/share before the rumors began, the stock has already doubled, and could basically triple at the reported takeout price. Textron Financial will likely be absorbed by the new investors, while Bell will be sold, leaving Cessna flying high. The alternatives of muddling through, or a takeout at a lower price (as would be the case in a domestic deal), are certainly less palatable.

Aeropostale, the $1.8B (market cap; $1.6B annual sales) NY-headquartered teen retailer announced yesterday that it opened its first store in Dubai. In an earnings conference call last August when Aeropostale announced its plans to pursue Dubai, CEO Julian Geiger stated the company chose Dubai over many other options given its “growth and development,” calling it the “perfect platform” to launch the brand while learning and positioning for growth among the Asia region’s half a billion teenagers. In yesterday’s announcement, Mr. Geiger pretty much reiterated these points as Aeropostale plans to unveil more than 20 additional stores in the Middle East. While it is far from being the best of times, there are still opportunities, and the Middle East is clearly among the most promising. Hats off to Aeropostale. Also getting its foot in the door, Payless ShoeSource just announced store openings in Kuwait and Saudi Arabia.