Interview: Steve de Brun, Co-Founder of StockTouch

Today, I’m proud to publish an interview with a co-founder of a visually dynamic finance application called StockTouch.  Priced at $4.99, StockTouch uses color heatmaps to illustrate fluctuations in price movements.  Unlike the Wall St. Journal listings of NASDAQ and the S&P 500, StockTouch organizes stocks via color-coding into nine sectors--consumer goods, services, healthcare, energy, technology, financial, industrial goods, materials, and utilities.  If you want to read recent news articles or stock charts for a particular a company, you simply press your finger on the ticker symbol.  The app is intuitive, informative, loads quickly over wi-fi and 3G connections.  All things considered, the app blends finance and design fluidly.  To learn more, please visit stocktouch.com.            

1. Can you tell us about your educational and professional background?

Jennifer Johnson, our CEO, has a B.S. in Economics from Wharton and an MBA from Columbia. She is a former investment banker and finance professional who worked at UBS and Merrill Lynch, and is currently an entrepreneur and angel investor.

Steve de Brun, co-founder and VP of User Experience, has a B.A. in Visual Arts from Brown University. He has worked for early digital agency vivid studios, News Corporation, guru.com, and many other venture-funded companies.

John Morris, CTO, is a software developer and mobile game programmer, as well as co-founder of Blue Lava Wireless games, which was sold to JAMDAT, which was sold to Electronic Arts.

2. For our readers, can you describe StockTouch?  Specifically, what differentiates StockTouch from other finance apps in the market?

StockTouch is a dynamic, zoomable heat map of the stock market that gives you a birds-eye view of 900 companies organized by sector, and allows you to zoom in to view individual sectors and specific stocks. It enables you to touch and manipulate the data, and we believe this creates a more powerful experience of the information landscape.

3. What advice do you have for college students interested in starting their own business?

Make sure you develop your critical thinking and problem solving skills, and your social skills. Don't worry too much about specific academic qualifications, but if you're going to be an artist or coder obviously dig in and learn as much as possible. Build pet projects, websites and apps for friends, families and small businesses. Try to get involved with startups as a summer intern - spend time on Crunchbase.com, identify recently funded companies in your area, and approach them.

4. What market(s) are you targeting with StockTouch?

StockTouch is used by retail investors, but we are also finding that finance professionals are using the app as well. StockTouch is focused on equities traded on U.S. exchanges currently (even global companies traded on U.S. exchanges) and we plan on expanding our coverage over time.

5. Is there anything else you’d like to share about StockTouch?  

We believe that StockTouch is in its infancy, and there's a long way to go to expand the capabilities and possibilities with this app. We are entering an age where it will be expected that you can get hands on with data and interact with data visualizations in a more palpable, dynamic and fun way.

Steve Jobs and His Management Style

I can’t add a lot to the commentary surrounding the death of Steve Jobs.  When a man of his prestige and accomplishment dies, the media tells the stories fast.  I do have some thoughts on his legacy as a manager.  Mr. Jobs was considered an outlier in management.  His leadership philosophy was simultaneously admired, criticized, questioned, and respected. 

If there was no parking spots close to Apple’s headquarters in Cupertino, California, Mr. Jobs was known to pull into a handicapped space and hustle into work.  Employees stuck notes under his windshield wiper: “Park Different”, mimicking Apple’s Think Different advertising slogan.  The employees also converted the wheelchair symbol on the pavement into a Mercedes logo.    

This parking anecdote reflects the management style of Steve Jobs: for him, the regular rules didn’t apply.  Management experts simply couldn’t fit him into a category.  You can say some things about the way he managed.  He put people at the center, but he never created a freewheeling organization where ideas flew from the bottom up.  In fact, he was a notorious micromanager.  Every product that left Cupertino met Job’s demanding standards.  He was known to scrutinize everything from the number of pixels to the number of screws on the bottom of a laptop.  Jobs was able to inspire astounding effort yet he was known to demean people, even making some of them cry. 

Mr. Jobs created products that were intuitive and made sense to people.  The iPod and the iTunes store gave users an easy way to access the world of music.  The iPhone and apps transformed smart phones from device used for business to a object for entertainment.  He injected meaning and creativity into products in a way that Microsoft could never quite master.  He mastered culture and people rather than focusing exclusively on technical details and engineering.  Jobs was a renaissance man--he was able to skillfully blend liberal arts and technology.  

One example is his insistence on keeping Apple’s software tied to its hardware.  Even when Amazon.com started selling songs that could be played on any MP3 player and Android was designed to work on any participating headset, Apple stuck to this strategy.  If you want to hear iTunes on the go, you need to listen to them on your iPod or iPhone.  Do you want to have an OS X operating system?  You’ll have to purchase a Mac. 

I-Phone Sales Robust Ahead of I-Phone 5 Release

As you probably know, Apple will release the iPhone 5 sometime soon, although many analysts expected the debut to come before the 10th of September.  However, the iPhone 4 is still the top-selling smartphone in the US, despite its age. 
 

According to analyst Shaw Wu, Apple will sell 18.5 million iPhones in the third quarter, which concludes in about three weeks.  Although this number is less than the record 20.34 million iPhones sold last quarter, a more steep drop was expected. 
 

One of the reason for increased sales is the large number of companies outfitting their employees with iPhones.  For instance, home-improvement retailer Lowe’s plans to provide employees with 42,000 iPhone 4s next month, with custom apps that will be a part of a technology overhaul.  Lowe’s hopes to release a new MyLowes online tool and implement the iPhones in an effort to catch rival Home Depot, which invested more than $60 million on handheld Motorola POS systems last year. 
 

Service providers are approaching the fifth generation of the iPhone in different ways.  Sprint has agreed to retain its unlimited data plans while Verizon and AT&T will only offer customers tiered, capped data plans.  If this rumor is true, Sprint would be the only operator in America to offer unlimited data for the iPhone in exchange for a flat fee.  Currently, Sprint’s unlimited voice and data plan is $99.99 per month, while AT&T offers 2 gigabytes of data for $25 per month.  The addition of Sprint to iPhone service providers is expected to add the sale of six million iPhones to Apple’s sales according to analyst Gene Munster of Piper Jaffray. 

Recent Current Events

The world has been a busy place in the past couple weeks--so busy in fact that I found it necessary to post a current events update. 

1.  Hurricane Irene makes landfall in North Carolina.  Approximately 65 million people will be in the direct path of Hurricane Irene over the next few days.  The storm is expected to arrive in the Washington area late Saturday and into Sunday morning before heading north to New York and New England.  For the first time in memory, citizens of New York were ordered to evacuate flood-prone areas in Brooklyn, Queens, Staten Island, and Lower Manhattan.  Experts have feared this kind of storm for decades largely because of rapid expansion of coastal resorts and housing developments on the East Coast. 

2. The Ministry of Culture of the People's Republic of China barred 100 songs from music download sites including Lady Gaga's "Judas" and Katy Perry's "Last Friday Night".  The ministry said the rule was meant to preserve China's "national cultural security". On a related note, the Japanese National Police Agency reveals that 90% of cyber attacks on its website on July 10 came from IP addresses in the People's Republic of China.

3. Scientists at Swinburne University of Technology in Melbourne announce their discovery of a planet made entirely of diamond--only the second time such a planetary mass has been discovered.  Co-investigator Willem van Straten said this pulsar rotates thousands of times per second.  It is likely that the planetary body is all that remains of a once massive star that has lost 99.9 percent of its original mass to leave it a shadow of its former self--just five times bigger than earth.

4. Libya's National Transitional Council announces plans to move its headquarters to Tripoli following the capture of the city from Muammar Gaddafi.

5. Berkshire Hathaway, the conglomerate headed by Warren Buffett, announced a plan to invest $5 billion in Bank of America.  After the deal was announced on August 25, bank stocks were bid up, but settled down in the afternoon as the market absorbed the information. 

6. The New York Yankees hit three grand slams in a single game, the first time such a feat has occurred, in a win over the Oakland Athletics.  In all, the Yankees pounded out 21 hits against A's pitchers.  Yankees backup catcher Jorge Posada played second base for the first time in his major league career.

7. Steve Jobs resigned as CEO of Apple, Inc.  Tim Cook took over the CEO position for the company. "I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know.  Unfortunately, that day has come." Job said in his resignation letter.  After a brief halt, Apple's shares slid 5.13% to $355.70 in after hours trading on Wednesday.

Apple Releases Plans for Flying Saucer Headquarters in Silicon Valley

Although many business professionals prefer anything but Apple products, the tech behemoth that recently became the world’s largest company in terms of market capitalization has launched plans to build a space-ship like circular headquarters in Silicon Valley.  The building will be 2.8 million square feet, will feature a 1,000 seat auditorium, a fitness center, and 300,000 square feet of research facilities.  The landscaping will include native plants and apricot orchards, which are reminiscent of the agricultural heritage of Silicon Valley.  Apple estimates the new facilities will house over 12,000 employees, and clean energy sources will power the site, with local electricity grids to be used only in emergencies. 
 

Apple CEO and co-founder Steve Jobs originally received the ambitious vision for the flying saucer campus back in 1983.  Like any talented entrepreneur, he took action and approached the newly-elected mayor of San Jose, Tom McEnery, with a the plan for a shimmery glass structure surrounded by oaks and grasses.  Jobs even hired famous architect I.M. Pei, the same man who designed the Louvre Pyramid in Paris.  Although the plan fell through after Jobs was forced out of Apple, his vision never died.  
 

The city of Cupertino, California is the real beneficiary of Mr. Job’s dream.  “There is no chance we’re saying no,” Cupertino Mayor Gilbert Wong mused after a city council meeting where Steve Jobs was present.  What would your response be if Steve Jobs cam to your town and said he wanted to build a headquarters that looks like it belongs in outer space?   
 

“Apple has grown like a weed.  It’s clear that we need to build a new campus.  We’re just out of space.  That doesn’t mean that we don’t need the one we’ve got-we do need it- but we need another one to augment it,” Jobs argued at the meeting.  Apple purchased most of the land from Hewlett Packard, where Jobs worked one of his first summer jobs. 
 

To put into perspective the sheer size of the proposed headquarters, I did some research to see how the spaceship compares to the Pentagon.  A perfect circle that circumscribes the Pentagon has a diameter of 1,566 feet.  According to the architectural building presented below, the diameter of the future Apple spaceship will be 1,615 feet.  This means if the Apple spaceship covers more ground than the Pentagon. 
 

Below is a borrowed image from Mac Observer showing the relationships in size between the proposed Apple HQ, the Pentagon, top to bottom, a cruise ship, a U.S. nuclear aircraft carrier a U.S. Navy Blimp, a WW2 Battleship, the Empire State Building, and a super tanker.    

How Wi-Fi Networks and Free Wi-Fi Can Be Risky

Do you have a smartphone?  Do you use wireless internet on that phone?  Wireless fidelity (Wi-Fi) is available on nearly every cell phone on the market today, but this convenient piece of technology brings with it potential risks and privacy concerns.  

According to CNet News, 3.5 billion devices will have Wi-Fi capabilities by 2014-that’s roughly half of the world’s population.  These devices include televisions, cell phones, and other computers that have a WiFi signal.  This is great as far as internet accessibility goes, but a well-informed consumer will know the risks as well as the benefits of such a risky venture.  

All WiFi devices emit a unique signal that can identify a particular device.  This signal is known as a MAC address.  If you have an I-Phone, you can scroll to the settings to locate yours.  Why is a MAC address relevant?  Google’s recent project Street View has discovered that its cars had “collected the unique identifiers of millions of WiFi enabled devices”  Google then made that data public, which enables access of this information to quite literally anyone with internet access.  If you know someone’s MAC address, you can then use Google to find out where they live, where they work, and other details about an individual.  

If you have played the popular I-Phone app Foursquare, then you know it uses your current location.  Likewise, Apple records the location of I-Phone and I-Pad users as they move around.  Just last week, a company called TruePosition, which makes software that can track your location in case the police need to locate you in an emergency, has reportedly sold its software to foreign governments.  What happens when governments start using this technology to spy on citizens?

I can see the potential benefits of companies tracking your location and collecting your data, but like anything else, this new technology can fall into the hands of people with evil motivations.  I encourage everyone to be more aware of ways in which your personal devices can be used to collect information about you.  Do your research and make a wise decision before making a purchase of a WiFi enabled gadget.

Another point to consider--how vulnerable is your personal information at public Wi-Fi spots?  These places are easy and convenient, but their openness allows anyone to sign on.  To secure a more safe browsing session, only use services that use “https” so your data traffic is more secure.   

Google Has Agreed To Buy Motorola Mobility For $12.5 Billion

The technology market saw an unprecedented buy-out recently as Google has announced it is acquiring Motorola Mobility, the cellphone manufacturer based in Libertyville, Illinois.  

Earlier this year, Motorola Inc. was split into two entities: Motorola Mobility, which received the faster growing cellphone and TV box businesses; and Motorola Solutions, which sells networks, accessories like walkie-talkies, and radios.

Compared to Motorola Mobility’s market capitalization (the total number of shares outstanding times the stock price), the sum of $12.5 billion is a massive 63% premium per share.  This means that Motorola shareholders will receive $40 per share in cash, which is 63% more than Motorola’s August 14 closing stock price of $24.30.  A premium is the difference between what a stock is worth and what price was paid for that stock.  The deal marks the Google’s biggest purchase in the 15 year history of the company.  I think the huge premium indicates Google was getting desperate to expand its patent portfolio after falling behind to Apple and Microsoft.  Furthermore, Google is finally crossing the Rubicon into the hardware market.    

In a blog post, Google co-founder and CEO Larry Page wrote that Google bought out Motorola for two reasons:

-Its strength in the smartphone market

-Being a “market leader in the home devices and video solutions business”

Now, Google has gained access to over 17,000 patents, including all of those associated with the Android-capable smartphone.  Previously, Google products were available on Android-powered smart phones, but if the deal goes through, Google will have the power to develop and modify both the smart phones and Android software.  However, Google has promised to continue offering Android as an open platform, meaning approved web developers will be permitted to improve the functionality of the software.  Larry Page has been looking for Google to make itself a legal shelter to Apple’s increasingly aggressive legal attacks, despite the fact that Android was the best-selling smartphone operating system in the second quarter of this year.  Despite the news of the buyout, Apple’s stock only dropped $2.93 per share on the market on Tuesday.  Apple briefly became the world’s most valuable company in terms of market cap last week, and it still remains at the number two spot.   

The acquisition will likely attract the attention of government regulators.  Google has already come under review by the U.S. Federal Trade Commission for the following reasons:

-Using deceptive tactics and violation of its own privacy promises to consumers

-Antitrust business practices in Europe and the United States

Although the transaction will take time to be approved by Motorola stockholders and regulators, Google expects it to close by the end of 2011 or early 2012.  

Apple Just Keeps Rising

Even though Exxon Mobil regained the title as the world’s most valuable company last week, Apple briefly grabbed the number one spot.  The ranking is determined by stock market capitalization, or the total market value of all a company’s outstanding shares.  After trading on August 9th, Apple’s market cap closed at $347 billion.  The tech colossus might take over the top spot again soon.

In my opinion, the behemoth Apple will continue to grow as Smartphones become more popular.  Perhaps most significant is what this growth represents--the high-tech, digital world is becoming the giant of the global economy.  Just a mere 14 years ago, Apple sat on the brink of bankruptcy, with a record-low stock price and crippling financial losses.  Since then, Apple has made a strong resurgence, introducing MacBooks, iPods, iPhones, iTouches, iPads, the iTunes store, and Apple TV to the consumer technology market.  Indeed, Apple has found a niche as the world’s leading provider of consumer technology, leapfrogging business-oriented competitors Microsoft, IBM, and Hewlett-Packard.  Last month, the firm announced that its profits have more than doubled to $7.3 billion while revenues rose 82% to $28.6 billion.   

The growth Apple has experienced in the past 2 years is a testament to the expansive influence the tech market has had on the overall economy.  Apple sold more in the last quarter than it did in all of fiscal 2007.  It’s return on equity, which measures a firm’s amount of net income as a percentage of shareholder’s equity, is nearly twice what is was in 2006.  Some analysts believe it has the potential to be the first $1 trillion company in existence.  

Sure, oil and energy demands are more important than iPhones.  Transportation and all the other conveniences that natural gas and oil provide outweigh the fun, entertaining gadgets Apple keeps producing.  However, as globalization forces many individuals into sprawling urban environments, it’s conceivable that mobile devices could be viewed as more important than cars.      

One serious challenge that still looms for Apple is the health of Steve Jobs, who has been on a medical leave of absence since January.

I-Phone App of the Week

Today, I am proud to announce a post series on Joe’s Musings.  Every week, I plan on reviewing an I-Phone app.  This week, I’ve chosen a joint project created by the History and A&E Television Networks Mobile.  They have teamed up to introduce an excellent history app to iPhone and iPad owners.  The Civil War Today app chronicles the events of the Civil War over the next four years.

If you a history buff and go download this app, then each day, you will be greeted with an update regarding Civil War battles and historic information from the same date 150 years ago.  The features include photos, maps, newspaper clippings, diary entries, and more.  

The Civil War Today app launched on April 12, 2011, the 150th anniversary of the beginning of the Civil War.  The app is available today in the App Store, but it is relatively pricy at $7.99.  If you are Civil War fanatic, this is a reasonable price to pay to receive daily content straight from the archives of United States history.

Thoughts on the I-Phone

This year for Christmas, I received an Apple I-Phone.  I remember when the IPhone hit markets during my senior year of high school.  The craze was similar to the introduction of most Apple products: a wave of buyers flock to the Apple store to buy theirs.  I've never been a trendsetter, but a few of my friends bought the rather expensive phone, so I had the opportunity to toy with it.

The Big Three of the I-Phone include the internet, cell phone, and I-Pod.  It's truly remarkable to think how far technology has advanced when we can possess these three capabilities in the palm of our hand.  I think back to days when dial up was prevalent.  It took me about 5 minutes to get internet access in my early years of grade school.

Anyway, the apps are what make the I-Phone for me.  I've downloaded over 100 apps so far, some of which are free.  As you might know, there are many different categories of apps available for download.  My personal favorites are the Google, Wikipedia Mobile, AppZilla, and the scanner.  If you feel inclined, leave a comment with a few recommendations.

In business school, we are taught the basics of Microsoft Excel and Microsoft Access.  The vast majority of the computers on campus are PCs, so I'm getting a healthy dose of Mac OS X and Windows.  The amount of time I spend in front of a computer screen has grown astronomically over the years.  I'm not sure if this is a good or bad thing yet.  I still have strong relationships with my family and friends, but in my free time, I spend my time online instead of reading books, watching television, or playing video games.

Does anyone have any opinions on the I-Phone?  Anything you like or dislike?  I'd love to hear from you.