Professional Athletes & Random Thoughts
Posted: June 3, 2016
Professional golfer Phil Mickelson was fined about $930,000 after he purchased 200,240 shares of Dean Foods. A week later Dean Foods announced a spinoff of one of its businesses and the stock shot up 40 percent. Mickelson made $931,000 on the transaction. However, since Mickelson, known fondly as "lefty" on the PGA Tour, did not know why specifically he was purchasing the stock, Mickelson was known only as a "relief defendant", meaning that he was seen to have received ill-gotten proceeds that he would be compelled to return, but not having engaged in unlawful behavior.
I have to believe that if any one of us did this, we would not be treated like a professional athlete. However, having said that, Mickelson has made more than $80 million in career earnings, not including endorsements, so I don't feel so bad that he had to cough up the money he made in the stock market.
RANDOM THOUGHT #1: Well, Saudi Arabia is getting what they wanted. Rather, the country with the richest oil reserves in the world thought that if they flooded the market with lots of oil that they would force the U.S. fracking industry to go out of business. While that is happening to some extent, it's interesting to point out that oil prices are half the level the Saudi government needs in order to balance its books, and it is burning through cash reserves. With rival Iran on the rise, traditional Saudi allies, like the United States, are keeping their distance.
RANDOM THOUGHT #2: According to the latest Kiplinger Report (May 20, 2016), online shopping is growing by leaps and bounds as sales at brick-and-mortar stores are dwindling. E-commerce sales are expected to increase by more than 10 percent in 2016, espeically considering that the category has only been in existence for two decades.
RANDOM THOUGHT #3: I thought it was a nice touch by the NASCAR Sprint Cup Series to have military personnel on the front of all 40 drivers' windshields during last Sunday night's race.
RANDOM THOUGHT #4: Is there anything more obnoxious than Flo, the television spokesperson for all of the Progressive Insurance commercials?
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