On 01-Feb-2012, our strategic partner ITG (NYSE - ITG) announced it impaired $4.3 million of an investment it made in Disclosure Insight in April 2010. ITG did not hit the sales targets required under our mutually agreed-upon business plan needed to keep Disclosure Insight afloat.  Unfortunately, this means Disclosure Insight must now suspend our operations indefinitely.

We obviously regret deeply having to take this action, however, absent either the funds or sales force needed to continue on our own we had no choice.

In parting, please know we are eternally grateful to all the friends and supporters of “DI” through the years.  It's truly been both a pleasure and a privilege to have worked with you all.

We look forward to what comes next …

John P. Gavin, CFA
Founder and CEO

This video takes you through why investors should care a lot more about FCPA probes than many do now.  

Public company disclosures of investigations pertaining to potential violations of the US Foreign Corrupt Practices Act (FCPA) are widely perceived as without consequence, and therefore typically ignored by many investors.   That thinking is misguided for the following reasons:

1. A disclosed FCPA probe represents a judgment on the part of management that the company has a risk that is material to the investment decision making process. 
2. It can indicate accounting fraud.
3. It can hurt operations.

In conjunction with its earnings release filed this morning, Janus Capital Group (NYSE: JNS) disclosed in an 8-K that Steven Scheid will retire as Chairman at the end of his term in Apr-12. This will be the company’s sixth director departure since 2007.

Scheid (age 58) has served as Chairman since Jan-04 and as a director since Dec-02. He also previously served as CEO from Apr-04 to Jan-06. In addition to being the sixth director to depart since 2007, Scheid will be the fourth person under the age of 60 to exit the board in that time. Glen Schafer (age 62) has been appointed to succeed Scheid as Chairman. He has been a director since Dec-07 as well as Chairman of the audit committee since May-08.

The following is excerpted from a research report we originally published for subscribers on 12-Jan-12. It is based on data we routinely acquire from the United States Securities and Exchange Commission under the Freedom of Information Act. This particular report warns of the risk of undisclosed SEC investigative activity in the companies noted below. The full report of 12-Jan-12 is attached.

Roche (RHHBY.PK) announced this morning that it has made a proposal to acquire Illumina (NASDAQ: ILMN), a provider of integrated systems for DNA sequencing, for approximately $5.7 billion. As part of the deal, Roche would acquire ILMN for $44.50 per share in cash, a 64% premium over the closing price on 21-Dec-11 (the day rumors about a deal began to fly). The hefty premium brings about a natural question: Is Roche paying too much?

With ILMN trading between $50 and $55 per share after the announcement, the market thinks Roche or another suitor is willing to pay more. That may be the case. However, back-of-the-envelope analysis says $44.50 a share could already be rich.