The latest of the major tech company initial public offerings has come and gone, with Pandora opening on the New York Stock Exchange, but questions still linger despite its apparent success. CNET reports that Pandora is overvalued and the company’s fundamental business model should discourage investors.
The most basic issue for Pandora revolves around its primary cost: music licensing. The service pays 0.1 cent to SoundExchange, the group that collects money from online music distributors for artists, for every song played. While this seems like a minimal amount, it adds up to $7.35 per customer per year if each person listens to their maximum allowed free music. Read more…
Now is a good time to be thinking about whether you are putting enough aside for your retirement. A review of your long term plans should be done on an annual basis and June is good month for two reasons; firstly because it is too wet and cold outside to be doing anything more interesting and secondly because you should make sure you have put enough into your KiwiSaver fund to get the maximum Government tax credit.
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