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Going-Concern Statement

Just like you never want to hear a doctor say "oops" in the operating room, you never want to see a going-concern statement in a financial report about a company you own. Accountants throw these in when they've been over the books, talked to customers, and checked the horoscopes and have concluded there is "substantial doubt" about a company's ability to remain in business. In short, don't blame the accountants if the company files for bankruptcy protection.

You¿d reckon that a going-concern statement would be enough to send investors running to the exits, but it's not. True, many large institutions automatically bail when an existing company gets slapped with one of these, but many individuals (often wrongly) take a chance they know more than the bean counters.

During the tech boom of the late 1990s, many companies actually went public even though they had been hit with going-concern statements. Many of those companies subsequently disappeared. Enough said.

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Flowers, Cards and Homemade Items Top Moms' Lists This Mother's Day, According to the Discover(R) Card Mother's Day Shopping Survey

 
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RIVERWOODS, Ill., May 05, 2008 (BUSINESS WIRE) ----Flowers, cards and a dinner out are among the top choices to give and receive this Mother's Day, according to the annual Discover(R) Card Mother's Day Shopping Survey. The survey revealed a range of other Mother's Day-related shopping trends and consumer spending intentions.

"The Discover Card Mother's Day Survey found that consumers once again plan to recognize mom with both handmade and store-bought gifts," said Ryan Garton, director of customer insights at Discover Financial Services. "Our findings provide great ideas for those looking to buy the perfect gift, as well as the retailers who are supplying them."

Mother's Day Purchasing and Spending Intentions

Fifty-five percent of all respondents said they plan to purchase Mother's Day gifts this year and similar to last year, more men (59 percent) than women (51 percent) will do so. Looking at the women in their lives, 73 percent of men plan to purchase a gift for their mothers, 24 percent for their mothers-in-law, 45 percent for their wives, 7 percent for their daughters and 7 percent for their stepmothers.

The Discover Card survey revealed additional trends on who's spending what:

 SPENDING INTENTIONS 2007 2008 =======================================================-======-=======
   Amount respondents plan to spend on their mothers $66.50 $70.30 ----------------------------------------------------------------------
   Amount men will spend on their mothers $73.80 $77.50 ----------------------------------------------------------------------
   Amount women will spend on their mothers $58.40 $63.90 ----------------------------------------------------------------------
   Amount men will spend on their wives $90.70 $108.00 ----------------------------------------------------------------------
   Amount respondents will spend on their mothers-in-law $50.10 $51.90 ----------------------------------------------------------------------
   

All figures in chart refer to average amounts for those who plan to purchase Mother's Day gifts this year or planned to purchase Mother's Day gifts last year.

Not surprisingly, when asked how much would be an appropriate amount to spend on a Mother's Day gift, nearly half of moms surveyed (44%) said no money at all, citing that the best gift would be handmade. Thirty-five percent said less than $50 while 18 percent said $50 or more. Eighty-two percent of the moms surveyed said that given the economy, they would rather their kids spend less this year on Mother's Day than they did last year.

Top Gift Choices for Mother's Day

Similar to last year's results, many gift-givers are aligned with what recipients hope to receive on the special day. Top findings include:

 HOT GIFTS - SHOPPERS' INTENTIONS HOT GIFTS - RECIPIENTS' DESIRES
   ==================================-=================================== 73% Flowers/greeting card 61% Flowers/greeting card
   ---------------------------------------------------------------------- 45% Dinner out at restaurant 51% Something homemade
   ---------------------------------------------------------------------- 38% Gift card 48% Dinner out at restaurant ----------------------------------------------------------------------
   30% Apparel 44% Gift card ---------------------------------------------------------------------- 30% Jewelry 28% Spa treatment/day
   of pampering ---------------------------------------------------------------------- 26% Music/books/DVD's or games 26% Music/books/DVDs
   or games ---------------------------------------------------------------------- 25% Spa treatment/day of pampering 21% Jewelry
   ---------------------------------------------------------------------- 21% Something homemade 18% Travel/weekend getaway ----------------------------------------------------------------------
   7% Travel/weekend getaway 17% Apparel ---------------------------------------------------------------------- 

Traditional Store Locations the Preferred Way To Shop; Majority of Consumers Will Shop for Mom on the Weekends

Twenty-eight percent of respondents cited the mall as a top place to shop, while 23 percent said a discount store such as Wal-Mart or Target. Twenty-one percent said a department store such as Macy's or Bloomingdale's is where they plan to shop, while 16 percent cited online. Only 2 percent plan to use a mail-order catalog.

The majority of men and women will shop for Mother's Day gifts on the weekends (54%) or after work (29%). Others said they will shop during a lunch break during the week (8%), online during the work day (2%) or some other time (5%).

About the Discover Card Mother's Day Shopping Survey

For Discover Card's Mother's Day Shopping Survey, a telephone survey was conducted with a total of 1,003 nationally representative adults. The research was conducted from April 17 to 20, 2008 by Caravan Opinion Research Corporation.

About Discover Financial Services

Discover Financial Services (NYSE: DFS) is a leading credit card issuer and electronic payment services company with one of the most recognized brands in U.S. financial services. The company operates the Discover Card, America's cash rewards pioneer. Since its inception in 1986, the company has become one of the largest card issuers in the United States. Its payments businesses consist of the Discover Network, with millions of merchant and cash access locations, and PULSE, one of the nation's leading ATM/debit networks. For more information, visit www.discoverfinancial.com.

SOURCE: Discover Financial Services

Discover Financial Services Mai Lee Ua (224) 405-3082 
Copyright Business Wire 2008

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