Daily Archives: November 29, 2005

A great Houstonian

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Sam Casscells.jpgSamuel Ward Casscells, III is a 53 year old M.D. and professor of biotechnology at the University of Texas Health Science Center at Houston in Houston’s amazing Texas Medical Center. He is also an Army medical corps reservist, and recently was awarded both the General Maxwell Thurman Award and the Army Meritorious Service Medal for his service during Operation Iraqi Freedom. In this Houston Chronicle op-ed, Dr. Casscells writes about the reason that he joined the military and the surprising experience that followed:

I had joined the Army Reserve for what seemed good reasons at the time: to help a hard-working medical corps, to live up to the examples of some of my heroes (Drs. Denton Cooley, James “Red” Duke, Michael DeBakey, and my father, surgical giants who wore Army green), and to set an example for my children.
It proved to be more than that: gripping, inspiring and filled with surprises. As only one in 200 Americans is in uniform today, most do not know any soldiers; hence this report.
One month after being commissioned, I received a phone call from Army Surgeon General Kevin Kiley: “Col. Casscells, welcome aboard. I want to be ready in case of a flu pandemic. You have some experience. We may even have some fun. Stand by for orders.”
In a few months, I felt like a member of a big family. I would not say a team because there was so little rah-rah, and ó to my surprise ó no bragging, no macho, no arguing and very little politics. Even in the sand, with all the surgeons from Operation Iraqi Freedom, the focus was the mission: how to prevent and treat injuries and illness.
All suggestions were welcome. All are addressed by rank, but the general speaks as respectfully to the sergeant as to a colonel. And there is lots of laughing and gentle teasing (a perennial: the Air Force, always ready, will go anywhere ó as long as there is a dry golf course, and cocktails).
[snip]
Equally wondrous to me: There was not a shred of racial awareness, much less tension. I finally had to ask. The answer is that, since President Truman integrated the Army Officer Corps in 1948, there have been several generations of advancement based on merit (which means hard work, smart work, but especially teamwork). Thus there are thousands of black officers who command with quiet confidence.

Read the entire piece. Hat tip to Clear Thinkers reader Byron Hood for the link to Dr. Casscells’ inspiring op-ed.

Comparing bad off-season deals

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wagner2.jpgausmus.jpgInasmuch as Roger Clemens still has not let the Stros know whether he is going to play next season, the Stros have been twiddling their thumbs so far this off-season considering silly notions such as re-signing Brad Ausmus rather than going out and competing for a couple of free agent hitters that the club really needs.
However, it helps me to remain optimistic about the Stros’ management when I read that former Stros closer Billy Wagner has just taken the Mets to the cleaners for $43 million over the next three years with an option for a fourth season that could push the total compensation over $50 million. Now, don’t get me wrong. Wagner is a very good closer and a lefty to boot. However, $50 million over four years for a 34 year old pitcher who had season-ending arm problems as recently as the season before last? Although Wagner’s runs saved against average (“RSAA,” explained here) was a very good 26 last season, he has had RCAA’s of 10, 13 and 15 in three of the past five seasons. That’s decent production, but not $12.50 – $14.3 million per year-type of production. The Stros will likely sign the more effective Brad Lidge for an annual salary probably around a third of what the Mets are paying Wagner.
With Jeff Bagwell’s deal, the Stros are closing the book on their final long-term, overpriced contract. Inasmuch as those contracts limit the flexibility of a mid-market club such as the Stros to make the type of “tweaking” acquisitions necessary to remain competitive, I am glad that Stros management is not overbidding for high-priced stars (remember Carlos Beltran?). Nevertheless, the Stros need to be careful at overpaying — albeit at a far lesser rate — unproductive players such as Ausmus. Throw a couple of million at Ausmus, plus another million or so at an equally unproductive player such as Vizcaino, and — after awhile — you’re talking about some real money.

Checking in on Krispy Kreme

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krispy4.jpgI haven’t checked in on beleaguered doughnut franchisor Krispy Kreme Doughnuts, Inc. in awhile, so I noticed the company’s regulatory filing a week or so ago in which the North Carolina-based company announced that it is “highly unlikely” that it would be able to deliver its financial statements to lenders by a December 15 deadline. Although a publicly-owned company, Krispy Kreme has not filed a financial statement since September 2004 and is facing a January, 2006 deadline for having its stock delisted by the New York Stock Exchange. As the company continues the process of restating earnings by over $20 million for its first four fiscal years, the company’s stock — which traded at around $50 per share in 2003 — is trading closer to $5.50 per share now.
So, can this trendy maker of delicious doughnuts stay out of tank? Probably not, but this Business Week Online article surveys the company’s landscape and sets forth CEO Stephen F. Cooper‘s turnaround strategy, which is essentially to operate smaller stores and expand into foreign markets while selling more high-margin coffee. I’ve got my doubts about whether that’s a winning strategy, at least without a formal reorganization under chapter 11, but who knows? Mr. Cooper agreed to a success fee based on 1.7 million warrants that are convertible into shares at $7.75, so he is clearly betting on the company’s success. And the company still makes a good doughnut. However, as one commentator in the article notes, “the lines are no longer out the door.”