Apple tops out at $700 billion. Samsung is unloading its chem units. And Uber may be worth $40 billion–Interlinked Weekly Investment News – Nov. 26th, 2014

Samsung to Sell Chemical, Defense Units for $1.7 Billion

Korean giant Samsung is making some big deals this week, and unloading two large sectors of its business in order to reorganize the company, and refocus their strategy. They announced a planned deal to sell their chemical and defense businesses to a company known as the Hanwha Group, for just around $1.7 billion. Samsung is one of the world’s leading electronics companies, but also has a number of other businesses spread across a number of fields.

Samsung Electronics Co., Samsung C&T Corp. (000830) and four other units of the group will sell their stakes in Samsung Techwin Co. (012450) and Samsung General Chemicals Co., the companies said in regulatory filings today. The deal is expected to be completed in the first half of next year.

The sale comes as the group prepares for a generational handover of power with Chairman and patriarch Lee Kun Hee, who’s been hospitalized since May, leaving his only son Lee Jae Yong as heir apparent. Last week, Samsung Heavy Industries Co. (010140) had to call off a proposed merger with Samsung Engineering Co. (028050) after shareholders claimed buyback rights.

Source: Bloomberg

Uber Will Be Valued At $40 Billion In New Round, Says Report

Rideshare startup Uber continues to break down boundaries with its funding and growth efforts, and according to some, is actually worth a lot more than it was initially marked. Earlier this year, during valuation, Uber was generously estimated at $18 billion. Turns out, it may be work nearly three times that. Here’s why.

The valuation matches what Business Insider’s Henry Blodget heard from a source last week. It would be a massive leap in valuation for the transportation company, which was valued at $18 billion in its last round just this summer.

The company has been embroiled in controversy recently, after one of its executives suggested hiring investigators to dig up dirt on journalists.

But an internal presentation from late 2013 shows the company well on its way to making $1.5 to $2 billion in gross revenue this year. Revenues on New Year’s Eve grew more than 4x between 2012 and 2013.

Source: Business Insider

New iPhones push Apple’s market cap past $700 billion

Apple is having great year by any measure. The release of two new smartphones has been a great success, propelling sales to nearly 40 million units for its iPhone line. The company announced that phone sales this quarter alone are expected to be between $63-$66 billion. This has pushed apples market cap to an astonishing $700 billion. That’s nearly double that of it’s competitor Microsoft, making it the world’s most valuable company.

Apple shares have risen 48 percent in 2014 and the company announced its first stock split in 9 years. Apple’s title as the world’s most valuable company does come with an asterisk, however. While Apple is the first S&P 500 company to exceed $700 billion in value, Microsoft Corp., if adjustments are made for inflation, had an even greater market cap about 15 years ago. Its $613 billion market cap in 1999 would be worth $874 billion today.

Source: The Boston Globe

How to Be a Closer, Not a Seller, When Looking for Investors

Meeting the right investors is crucial when trying to raise capital for your business. But even more important is how you present yourself, your company, and how you close. A good closer can have much more success than a traditional sales pitch with generate. That’s why it’s important to know how to communicate with your investors, and how to seal the deal before they have time to say no. Here are some helpful tips from our blog:

Your product or service could be the greatest thing since sliced bread, but if you don’t know how to confidently close, you’ll never truly gain the confidence of your investors. The simplest way to do this is to be frank with them. Don’t be pushy. If they’re in the investment capital business, chances are this isn’t their first rodeo, and they’ve most likely seen hundreds of pitches from young CEOs in a variety of industries.

To be frank with a potential investor, or investors, means you need to cut straight to the point. You have an objective. You have done your due diligence. And you have a product/service you believe in. If you communicate that correctly, people will want to get on board with you as much as you want to get on board with them.

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