Wiley Corporate Finance Updates

Fossil’s market surge: Extinct

Brahm Canzer — Mon, 14 May 2012 09:05:43 +0000

Description: Soft demand in crisis-stricken Europe is hurting sales of watch and accessory maker Fossil – and its stock price.

Source: CNNMoney.com – video report

Date: May 10, 2012

Link: http://money.cnn.com/video/markets/2012/05/08/mkts-bz-fossil.cnnmoney/

Questions for Discussion:

Why did Fossil’s share drop so dramatically?
Do you think they can return to recent valuations?
How would you go about evaluating the stock value today, and going forward?

Mayo: Banks too big to regulate

Brahm Canzer — Mon, 14 May 2012 09:04:52 +0000

Description: After news of JPMorgan’s multi-billion dollar loss, Mike Mayo reaffirms his stance that incentives are misaligned at big banks.

Source: CNNMoney.com – video report

Date: May 11, 2012

Link: http://money.cnn.com/video/news/2012/05/11/n-mayo-jpmorgan-banks.cnnmoney/

Questions for Discussion:

Summarize the opinions expressed by Mike Mayo.
Do you agree with his assessment, particularly about risk?
What would you advise regulators? Investors?

CT: Company Analysis, Industryl Analysis, Management Issues, Governments & Regulators, Growth & Valuation -

J.P. Morgan shares slump after $2 bln trading loss

Brahm Canzer — Mon, 14 May 2012 09:03:02 +0000

Description: Bank’s loss is embarrassment for CEO, fodder for regulators

Source: Marketwatch.com

Date: May 11, 2012

Link: http://www.marketwatch.com/story/jp-morgan-shares-slump-after-2b-trading-loss-2012-05-11?siteid=nwtwk

Questions for Discussions:

Summarize the reasons for the loss.
What do you believe this event will mean for the company, management, and regulators?

CT: Financial Analysis, Company Analysis, Industry Analysis, Management Issues, Governments & Regulators – Investing Strategies, Stocks, Risk Management, Derivatives

Facebook Co-Founder May Gain Choosing Singapore Over U.S.

Brahm Canzer — Mon, 14 May 2012 09:02:34 +0000

Description: Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Source: Bloomberg.com

Date: May 11, 2012

Link: http://www.bloomberg.com/news/2012-05-12/facebook-co-founder-may-gain-choosing-singapore-over-u-s-.html

Questions for Discussions:

What are the ethical issues expressed in this article?
What are the arguments for and against his decision?
What would you do?

Green Mountain Coffee: A Giddy Win for Short-Sellers

Brahm Canzer — Mon, 14 May 2012 09:01:56 +0000

Description: Ten years ago, smarting over my tech-stock losses, I should have bought shares of Green Mountain Coffee Roasters (GMCR). Of course, it was the manifest destiny of a Vermont-based outfit to go out and rock the coffee world, Starbucks’ (SBUX) hegemony be damned.

Source: Businessweek.com

Date: May 09, 2012

Link: http://www.businessweek.com/articles/2012-05-09/green-mountain-coffee-a-giddy-win-for-short-sellers

Questions for Discussions:

Summarize the arguments presented.
How would you advise investors at this time?

Why Delta is buying an oil refinery

Brahm Canzer — Mon, 07 May 2012 09:06:34 +0000

Description: Delta Air Lines tries to take out the middle man by purchasing a Pennsylvania oil refinery, but it could prove to be a risky investment.

Source: CNNMoney.com – video report

Date: May 01, 2012

Link: http://money.cnn.com/video/news/2012/05/01/n-delta-oil-refinery.cnnmoney/

Questions for Discussion:

Why did Delta do this?
What are the risks?
Do you think it was a good decision?

Rattner: General Motors is undervalued

Brahm Canzer — Mon, 07 May 2012 09:05:08 +0000

Description: Steven Rattner, former ‘auto czar’ for the Treasury Dept., says the government should hold its GM stake until the stock rises further.

Source: CNNMoney.com – video report

Date: May 02, 2012

Link: http://money.cnn.com/video/markets/2012/05/01/mkts-rattner-gm-government.cnnmoney/

Questions for Discussion:

What is the basis for this evaluation of GM?
Do you agree with this assessment?

The technicals are bullish

Brahm Canzer — Mon, 07 May 2012 09:04:55 +0000

Description: When the broad stock market, as measured by the Standard & Poor’s 500 Index, broke down through the important 1,390 support level in early April, it seemed that the bears would finally have their chance to take control after a long run by the bulls.

Source: Marketwatch.com

Date: May 01, 2012

Link: http://www.marketwatch.com/story/the-technicals-are-bullish-2012-05-01?link=mw_home_kiosk

Questions for Discussions:

Summarize the analysis presented.
Do you agree?

Is time running out for Nokia and RIM?

Brahm Canzer — Mon, 07 May 2012 09:03:01 +0000

Description: For two former leaders in mobile and smartphones, the fall from the top was painfully obvious this week.

Source: Marketwatch.com

Date: May 03, 2012

Link: http://www.marketwatch.com/story/is-time-running-out-for-nokia-and-rim-2012-05-03?link=home_carousel

Questions for Discussions:

What does the report have to say about the financial status of these firms?
Do you agree with this analysis?
What would you advise investors and managements of these firms to do in the short and long run?

Canadians Dominate World’s 10 Strongest Banks

Brahm Canzer — Mon, 07 May 2012 09:02:40 +0000

Description: Banks from Citigroup Inc. (C) in the U.S. to BNP Paribas SA (BNP) in France are racing to shed assets and raise money ahead of new global capital rules that start taking effect in 2015. For Canadian lenders, these moves have created the opportunity to go on a shopping spree.

Source: Bloomberg.com

Date: May 02, 2012

Link: http://www.bloomberg.com/news/2012-05-02/canadians-dominate-world-s-10-strongest-banks.html

Questions for Discussions:

Summarize the status of banks, as reported in this article.
What does the future look like in the next year or so?
What would you recommend to investors and managers of banks?