The New York Post reports that actor and heartthrob Matt Damon could use TMF Money Advisor. Er, not really, but the Post reports that Damon has learned some hard lessons after being caught up in a Ponzi scheme. In fact, he was shrewd enough to forgo a payday upfront and negotiate 8% of the gross profit from his current movie, Ocean's Eleven -- which might end up taking in half a billion dollars worldwide. Just watch out how those gross margins are calculated, Matt!
Apparently Damon's one-time girlfriend, Winona Ryder, got caught in the same Ponzi scheme and lost more money than Damon -- which could explain why she allegedly has been shoplifting at Saks Fifth Avenue. Ryder made an appearance in court on Thursday, offering a smoking defense -- a friend of hers told E! TV she was carrying some things she was considering buying when she stepped outside for a butt.
Our recommendation to all celebrities who have trouble managing their money: think index fund. The Motley Fool 50 Index finished the day down half a percent. For the week the index shed about 2%.
In today's Motley Fool Take:
Cuban and Buffett to Face-off at Dairy Queen
Dallas Maverick's owner Mark Cuban's latest tirade against National Basketball Association officials could get him into a run-in with super-investor investor Warren Buffett. Cuban was fined an NBA record $500,000 this week for criticizing referees, including, among other things, a dig against the NBA's head of officiating, saying, "I wouldn't hire him to manage a Dairy Queen.''
Dairy Queen, a subsidiary of Buffett's Berkshire Hathaway (NYSE: BRK.A), released this response on Thursday:
"We are certainly impressed that Dairy Queen is top of mind with Mark Cuban. We like the publicity he's generated for us. But Mr. Cuban may be surprised to find out how much it takes to manage a Dairy Queen. We invite Mr. Cuban in to manage a Dairy Queen for a day."
Cuban, a big fan of DQ's signature Blizzard shake, liked the idea and has decided to take the company up on the offer. "Actually I would love to do it for a day," he told ESPN.com via email. "I brought up DQ because I love 'em. Any additional pounds I have are due exclusively to Blizzards and Blizzards alone."
Cuban said his favorite Dairy Queen was recently closed, so he's open to working with the company to find an appropriate location to manage for a day. We have a suggestion for both parties: Please, please, please, oh please make it a DQ in Omaha, preferably one that the Oracle of Omaha himself reputedly visits to munch on his favorite sweet treats.
Seriously, we would pay money to see Cuban, the loudmouth Internet investor who made a fortune ($2 billion) selling Broadcast.com to Yahoo! (Nasdaq: YHOO), serve the stoic "old economy" investor Buffet a chili dog and a Dilly Bar. We'd endure the brain freeze of sucking back 10 Blizzards to hear their conversation.
ESPN.com reported that Cuban's remarks and their subsequent publicity have been worth as much as $1 million to $2 million in equivalent advertising for Dairy Queen. The Motley Fool hereby offers Dairy Queen more free publicity. Get this meeting setup and we'll be there to cover it and splash it all over our main page.
Looks like Ford (NYSE: F) shareholders might be looking to the lemon law to see if it can find them a better investment vehicle to ride in. The carmaker continues to retreat under a lukewarm new car market. Slashing its workforce by 10% and marking down its quarterly dividend to 10 cents per share, the Michigan-based company is seeing a lot of tens. It's just not scoring them.
The troubled automaker, which is gearing up to celebrate its 100th anniversary next year, will take a $4.1 billion charge in the restructuring process that will include closing five plants, easing up on the production levels at many of the others that will remain open, and laying off 35,000 workers. If you were interested in getting behind the wheel of a 2003 model Ford Escort, Lincoln Continental, Mercury Villager or Cougar, don't wait. Ford will be discontinuing those lines by year's end.
Hoping that a leaner Ford will lead to a return to profitability, the auto industry as a whole was initially optimistic that October's strength on the heels of rock-bottom financing incentives would fuel a recovery. It didn't. Recently crowned CEO Bill Ford Jr. has his work cut out for him. Sometimes, you have to shift into reverse before driving forward again.
Cloned Credit Cards Skim $1 Billion
You'd think the chances of most of us bumping into an al Qaeda operative or bona-fide mob boss would be pretty remote. Still, Americans are falling victim to mobsters and terrorists in record numbers -- unwittingly, and without even coming within miles of the perpetrators.
The latest high tech scam involves Very Bad People cloning consumers' credit cards, selling them to other Bad People, and using the profits to fund their Very Bad Ways. The practice, according to a report in the New York Daily News, has bilked unsuspecting consumers out of $1 billion a year. That's a billion smackaroos that authorities have linked to the likes of the Russian mob and Osama bin Laden's terrorist network.
Skimming, as the practice is known, is one of the fastest-growing forms of credit card fraud. Here's how it works: When you pay for gas, a meal, or other merchandise, an accomplice scans your credit card using a homemade $50 machine about the size of a cigarette pack. The information on your card -- including the name and numbers on the front, and the digital gobbledygook on the magnetic stripe on the back -- is e-mailed overseas (mostly to Malaysia and Indonesia -- cheap labor, lax laws) where a copy of your card is made.
Cards are shipped back to the Very Bad People, and then sold or used to buy merchandise. According to the Daily News report, the average take on a card is $2,500 to $3,000 -- just little enough to thwart red flags at credit card companies. By the time the cardholder finds out that he's fallen victim, the card has already been discarded without a trace to the criminal.
To foil the criminals, the credit card industry developed "smart" cards with encrypted computer chips that defy skimming. The authorities are also providing retailers in high-risk areas with readers that scan the card in the customer's sight so it can't be alternately swiped. Even more sci-fi-like is a new magnetic strip being developed that gives off a unique electronic "noise" that can't be duplicated by a clone card.
How can you protect yourself from the skimming scam?
- When you pay with plastic, be present when your card is being swiped.
- See if your credit card issuer offers a "smart" card.
- Notify the fraud departments of the big three credit bureaus if you suspect theft. (Equifax: 800-525-6285; Experian: 888-397-3742; Trans Union: 800- 680-7289)
- Get in touch with the Federal Trade Commission at 877-ID-THEFT or at www.consumer.gove/idtheft.
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The London-based Financial Times reports that eBay (Nasdaq: EBAY) is considering several options now that it's apparent Yahoo! (Nasdaq: YHOO) has an insurmountable lead in the race for the top auction site in Japan. One of those options could be an acquisition or merger with Yahoo! Japan. Both companies, however, say there have been no such discussions.
Two earnings reports after the bell yesterday are giving mixed signals about the chip sector. Cree (Nasdaq: CREE) was taken down a few notches after missing estimates by a penny and reporting lower-than-expected revenue for its second quarter. Cree makes compound semiconductors, a sector covered in this year's Industry Focus. Rambus (Nasdaq: RMBS), meanwhile -- which licenses computer memory technology -- topped expectations for its fiscal first quarter despite net income falling year-over-year by more than 50%.
A Maryland jury has awarded IGEN International (Nasdaq: IGEN) $505 million in a licensing dispute with Roche Diagnostics (Other OTC: RHHBY) of Switzerland. The issue centers on IGEN's blood-testing technology, and the favorable ruling sent its shares up over 10%. Roche plans to appeal.
The holidays were good to Borders Group (NYSE: BGP). The nation's number two bookseller reported a 5% rise in same-store sales since Thanksgiving, and raised its fourth-quarter and full-year earnings guidance as a result.
And Finally...
Today on Fool.com: Investing may not be a science, but Bill Mann has a few hints to steer you in the right direction... Roy Lewis has a smart way to save for college in our weekly tax column... Ever wonder if your brokerage account is insured? Ask the Fool has the scoop.
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