Weekly Updates returns August 18

June 15, 2014 Edited by  
Filed under Uncategorized

Investors like Amazon 3D phone chatter

Description: The only thing cooler than a 3D phone? A drone delivering it to you. Amazon stock enjoyed a nice pop after announcing (via YouTube) that it will unveil a new product — likely a 3D phone — on June 18.

Source: CNNMoney.com – video report

Date: June 06, 2014

Link: http://money.cnn.com/video/investing/2014/06/06/investing-the-buzz-amazon-3d-smartphone-drone-delivery.cnnmoney/index.html

Questions for Discussions:

  • Summarize the reasons provided in this report for Amazon stock price moves.
  • Do you think Amazon stock is over-valued?

Why stock market bubble talk is just hot air

Description: Fortune’s Stephen Gandel discusses why it’s not time to bail on the stock market just yet.

Source: Fortune.com – video report

Date: June 06, 2014

Link: http://fortune.com/video/2014/06/06/why-stock-market-bubble-talk-is-just-hot-air/

Questions for discussion:

  • Summarize the explanations presented in this report.
  • Do you agree with Stephen Gandel’s assessments and projections?

The ticking time bomb in Europe’s latest economic stimulus

Description: Europe needs to get real about its so-called “zombie bank” problem and take the hits needed to unclog its lending machine.

Source: Fortune.com

Date: June 06, 2014

Link: http://fortune.com/2014/06/06/europe-economy-banks-lending/

Questions for Discussions:

  • What are the problems facing European banks, according to the report?
  • What are the suggested solutions?

Q&A: Travis Kalanick on Uber’s New $17 Billion Valuation

Description: Uber Technologies, the company that allows people to order taxis and private town cars via a smartphone app, has just raised $1.2 billion in a fundraising round that values the four-year-old startup at an astounding $17 billion.

Source: Businessweek.com

Date: June 06, 2014

Link: http://www.businessweek.com/articles/2014-06-06/q-and-a-travis-kalanick-on-ubers-new-17-billion-valuation#r=hp-ls

Questions for Discussions:

  • Summarize the risks and potential returns for the company as presented in the report?
  • Do you think the firm represents a good opportunity for investors?

Bond Rally Is Squeezing the Trading at Big Banks

June 9, 2014 Edited by  
Filed under Economic Analysis, Growth & Valuation

Description: Wall Street’s biggest firms this year made an extraordinary wager that they probably now regret.

Source: NYTimes.com

Date: June 05, 2014

Link: http://dealbook.nytimes.com/2014/06/05/bond-boom-is-squeezing-the-trading-at-big-banks/?ref=business

Questions for discussion:

  • Why did the big banks take the position they did earlier in the year?
  • Can they be blamed for their thinking?
  • How should they go forward in terms of bonds?

Tesla debt: An electric lemon?

Description: Tesla debt may have gotten a junk bond rating from Standard and Poor due to concerns about its ‘niche’ market status. But investors in Tesla stock still have faith in Elon Musk.

Source: CNNMoney.com – video report

Date: May 28, 2014

Link: http://money.cnn.com/video/investing/2014/05/28/n-tesla-electric-cars-elon-musk-bonds.cnnmoney/index.html

Questions for Discussions:

  • Explain the differences in thinking by Tesla bond and equity holders about the company and risk perceptions?
  • Do you think Tesla bonds rank as “junk”?

How Does Uber Make Money?

Description: With Uber’s cars now operating in 130 cities worldwide and the company looking to raise another round of financing that could value it at more $10 billion, Bloomberg’s Willem Marx asks The Big Question: How does Uber make its money? (Source: Bloomberg)

Source: Bloomberg.com – video report

Date: May 30, 2014

Link: http://www.bloomberg.com/video/how-does-uber-make-money-SLy8gcRXTHGAnII9oVC1ow.html

Questions for discussion:

  • How does Uber make money?
  • What are the financial risks to lenders?
  • How would you go about deciding a fair rate for lending?

Ballmer’s $2 Billion Offer Wins Clippers Bidding

Description: Former Microsoft Corp. (MSFT) Chief Executive Officer Steve Ballmer bought the Los Angeles Clippers for a record $2 billion as the wife of Donald Sterling pushed through the sale without gaining the approval of the embattled owner.

Source: Bloomberg.com

Date: May 30, 2014

Link: http://www.bloomberg.com/news/2014-05-30/ballmer-s-2-billion-offer-said-to-win-clippers-bidding.html

Questions for Discussions:

  • Do you think the price was fair to both parties to the deal?
  • How should a sports franchise be evaluated from a financial point of view?

Carney Says Capitalism Must Reassess Bankers’ ‘Sense of Self’

Description: Mark Carney wants more “we” and less “me” in global finance. The financial crisis and trading scandals revealed how banks lost their way and staff operated for personal gain without regard to their impact on society, the Bank of England Governor said in a speech yesterday. Rules to prevent such behavior should embody the idea that firms and employees bear responsibility to the system in which they function, he said.

Source: Bloomberg.com

Date: May 27, 2014

Link: http://www.bloomberg.com/news/2014-05-27/carney-says-capitalism-must-reassess-bankers-sense-of-self-.html

Questions for Discussions:

  • Summarize the issues presented in the report?
  • What do you think the responses are likely to be from parties involved?