And in this case, because of the small margin that has characterized the race, it's natural for that to take place.
Last month, rival Bear Stearns, one of the biggest Wall Street firms in the mortgage securities business, disclosed billions of losses in two hedge funds it managed, largely because of subprime mortgage securities that triggered margin calls and redemptions.
And not all of them came out profitable because of a methodology that inflates operating margin. (The median margin was negative 0.27%.) A given local hospital may have good operations, but not feel profitable because almost every cent of its profit is sent to their parent system for one thing or another.
The sales person will help them make that purchase, because unlike HD DVD there is enough margin in the product to motivate retailers to sell the item.
Also, each company has a business segment that could be spun off because it has an operating margin superior to its parent and would also command an above-market enterprise multiple as a stand-alone business.
Google is the low-margin winner, because it makes money off of services that run on all Android devices, even if the manufacturers of those devices make little.
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As this article notes, after McClendon had to sell 94 percent of his Chesapeake shares because of those margin calls, he no longer held the equity stake that his prior employment agreement required.
FORBES: Chesapeake Energy: CEO McClendon Serves Himself First
That's because selling a credit swap is equivalent to buying the corporate bond on margin.
Mr. HIRSCH: Because we have to make up in rural Nevada, and specifically in Lyon county, the margin that we are going to lose by down in Las Vegas.
That time deficit was a virtually impossible margin to overcome in the flat, short final stage because Landis and his team watched the Spaniard closely to make sure he didn't try to break away.
That labor-intensive effort will lower Diamond's profit margin and could undercut a favorite firm claim: that its advice is free of self-interest because it doesn't entail hiring a platoon of Diamond techies.
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