Investing in Foreclosures: How One Company Does It

Description: Buying foreclosures to turn them into rental properties is tricky business. Mack Companies, a Chicago real-estate firm, invests in about one out of every 40 homes it inspects. MarketWatch’s Amy Hoak looks at why some make the cut and others don’t.

Source:  Marketwatch.com – video report

Date: 02/03/2012

Link:  http://www.marketwatch.com/video/asset/investing-in-foreclosures-how-one-company-does-it/08159368-9CE4-4D5C-BE15-1DD13BC08DF8

Questions for discussion:

• Describe the financial analysis required before this firm buys.
• What are the risks associated with this sort of investing?

Why Cisco parks $43 billion overseas

Description:    Cisco’s John Chambers says the 33% tax rate on foreign profits prevents companies from repatriating the money and creating jobs.

Source: CNNMoney.com – video report

Date: 01/26/2012

Link:  http://money.cnn.com/video/news/2012/01/26/n_davos_chambers_investment.cnnmoney/

Questions for discussion:

• Where are Cisco’s profits invested in today’s global economy?
• How is this issue a business, economic, and political issue?
• Is there a way to mitigate the drain on lost profits to the U.S. economy?

Weidner: There’s a Rotten Side to Apple’s Success

Description: Marketwatch’s David Weidner makes a stop on Mean Street to point out that amid all of Apple’s recently reported financial successes, there is a familiar dark side to all the good news. Photo: Reuters.

Source:  Marketwatch.com – video report

Date: 01/26/2012

Link:  http://www.marketwatch.com/video/asset/weidner-there-a-rotten-side-to-apple-success/595D3920-BA75-44B6-9C8D-E33B59F12A13

Questions for discussion:

• Summarize the criticisms levied against Apple? Are they fair?
• How should investors regard these points when considering investment choices?
• Does the image of Apple’s products overwhelm its “dark” side of business practice?
• Is management practice any different than at any other big global corporation?

Why you shouldn’t blame ETFs for wild markets

Description:  Critics say the popular funds are causing stocks to swing wildly together. Finding proof is another matter.

Source: Fortune.com

Date: 01/27/2012

Link:  http://finance.fortune.cnn.com/2012/01/27/etfs-market-swings/?iid=SF_F_Lead

Questions for discussion:

• Summarize the reasons ETFs are blamed.
• Do you agree with these views?

How the U.S. Lost Out on iPhone Work

Description:  When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president. But as Steven P. Jobs of Apple spoke,President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?

Source:  NYTimes.com

Date: 01/22/2012

Link to article:   http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?hp

Link to video: http://www.nytimes.com/interactive/2012/01/20/business/the-iphone-economy.html?ref=business

Questions for discussion:

• How does Apple illustrate the global nature of business today?
• Why, according to the report, will these manufacturing jobs never return to the U.S.?
• Do you agree with this view?
• What does this report suggest managers do in order reduce the loss of manufacturing employment?
• How can future employees – in the U.S. and elsewhere – prepare for work in a global market for jobs?
• Is there a role for governments here?

How Nike keeps running up profits

Description:    With the stock up 120% in the last three years, Nike pushes more retail in emerging markets.

Source: CNNMoney.com – video report

Date: 01/20/2012

Link: http://money.cnn.com/video/news/2012/01/20/n_nike_china_oil.cnnmoney/

Questions for discussion:

• Why are inventories a concern for a company like Nike?
• Do you think the growth prospects are good for the company?
• What level of growth do you believe is realistic? Explain your thinking.
• How do oil prices affect the company?

Bank investors better get used to low returns

Description:  Reduced risk has translated into a return on shareholder’s equity that’s more akin to a sleepy regulated utility than a top investment firm.

Source: Fortune.com

Date: 01/20/2012

Link:  http://finance.fortune.cnn.com/2012/01/20/bank-earnings-shareholder-return/?iid=SF_F_Lead

Questions for discussion:

• Why are bank stock returns expected to be reduced?
• Do you agree with the explanation?

New Normal on Wall Street: Smaller and Restrained

Description:  With firms like Goldman Sachs and Morgan Stanley reporting weak results for last year, Wall Street is having to confront doubts about itself.

Source: NYTimes.com

Date: 01/19/2012

Link:  http://dealbook.nytimes.com/2012/01/19/the-new-normal-on-wall-st-smaller-and-restrained/?ref=business

Questions for discussion:

• Summarize the key points presented in the report.
• Do you agree with these assessments?
• Is this a good or bad scenario, in your opinion?

Sir Richard enters the business of banking

Description:  Virgin Group’s Sir Richard Branson on his new foray into the banking business with takeover of the ill-fated British bank,Northern Rock.

Questions for discussion:  

• Do you think this bank will be managed differently because of the connection to Branson and the Virgin brand?
• Do you think this bank will perform any differently – financially speaking?

Can anyone save Fannie Mae and Freddie Mac?

Description:  It has been more than three years since then Treasury Secretary Henry Paulson fired his famous metaphorical bazooka and the federal government seized control of mortgage agencies Fannie Mae and Freddie Mac.

Source: Fortune.com
 
Date: 01/11/2012

Link: http://money.cnn.com/2012/01/11/news/economy/thebuzz/index.htm?iid=HP_River

Questions for discussion: 

• According to the report, what are the reasons for ongoing problems at these agencies?
• What are the recommendations to resolve these issues?
• Do you agree with this line of thinking?
• Do you think they are feasible – given the players involved?

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