Description: Shares of women’s apparel retailer J.Jill (JILL)plunged 50% Thursday after the company warned that sales would flag. The company said stores open at least a year may fall between 3% and 5% in the third quarter, and earnings would miss forecasts. Source: CNNMoney.com – video report Date: Oct 13, 2017 Link: http://money.cnn.com/2017/10/12/investing/jjill-retail-sales-plunge/index.html Questions for discussion: What… Read more »
Posts Tagged: Bankruptcy
Toys ‘R’ Us Is a Cautionary Tale for Technology
Description: How about this setup for a joke: What does Toys “R” Us Inc. have in common with business software companies? Source: Bloomberg.com Date: Sep 21, 2017 Link: https://www.bloomberg.com/gadfly/articles/2017-09-21/toys-r-us-is-a-cautionary-tale-for-technology-firms Questions for discussion: What does article say about the use of debt and the consequences? What should investors and financial managers take away from this report?
Number of distressed U.S. retailers at highest level since Great Recession
Description: Moody’s says 14% of its retail names are sitting at the lowest level of the credit-rating spectrum Source: MarketWatch.com Date: Feb 27, 2017 Link: http://www.marketwatch.com/story/number-of-distressed-us-retailers-at-highest-level-since-great-recession-2017-02-27?siteid=nwtwk Questions for Discussions: Summarize the financial analysis of the industry as presented in the report. How should investors evaluate these stocks today? Do you foresee opportunities for mergers or… Read more »
Warren Buffett Has a Paper Gain of $13.5 Billion From His Bank of America Bet
Description: They don’t call him the Oracle of Omaha for nothing. Warren Buffett’s $5 billion bet on then-struggling Bank of America in 2011 has resulted in around $13.5 billion in gains for Berkshire Hathaway, the investment company he heads. Source: Fortune.com Date: Feb 24, 2017 Link: http://fortune.com/2017/02/24/warren-buffett-bank-of-america/?iid=leftrail Questions for Discussions: What was Buffett’s bet? Do… Read more »
General Motors, Considering Exiting Europe, Talks About Selling Opel
Description: FRANKFURT — General Motors floated the possibility on Tuesday that it could exit the large but troubled European market by selling its chronically unprofitable Opel unit to the French maker of Peugeot and Citroën cars. Source: NYTimes.com Date: Feb 14, 2017 Link: https://www.nytimes.com/2017/02/14/business/dealbook/general-motors-peugeot-opel.html?ref=business Questions for Discussions: Summarize the reasons for GM’s thinking. Do you… Read more »
Toshiba’s Thin Ice
Description: How the mighty have fallen. Toshiba Corp., a company that was worth more than Apple Inc. as recently as 2004, could soon be effectively worthless. Source: Bloomberg.com Date: Feb 14, 2017 Link: https://www.bloomberg.com/gadfly/articles/2017-02-14/toshiba-s-thin-ice Questions for discussion: Summarize the financial story of Toshiba’s decline. Can the firm recover, in your opinion? How should investors deal… Read more »
This investor thinks big banks are doomed
Description: Bond king Bill Gross is not known for his sunny outlook for the markets. But he took his pessimism to a new level in his latest monthly outlook. Source: CNNMoney.com – video report Date: Mar 03, 2016 Link: http://money.cnn.com/2016/03/03/investing/bill-gross-janus-banks-stocks/index.html?iid=hp-stack-dom Questions for discussion: Summarize the bank problems as argued in the report. What do you… Read more »
Warning: Oil company defaults are coming
Description: The U.S. shale oil boom lured tons of prospectors in recent years. Source: CNNMoney.com – video report Date: Nov 6, 2015 Link: http://money.cnn.com/2015/11/06/investing/oil-companies-debt-gundlach/index.html?iid=Lead Questions for Discussions: Summarize the arguments presented in this report. Do you agree with the predictions?
Why Lehman Brothers Lives On
Description: The repercussions of Lehman Brothers’ bankruptcy can still be felt. It has been almost seven years since the firm’s failure started a global financial crisis and deep recession in most developed countries. Yet the real damage is only now becoming clear. Source: NYTimes.com Date: May 27, 2015 Link: http://www.nytimes.com/2015/05/28/business/dealbook/why-lehman-brothers-lives-on.html?ref=dealbook Questions for discussion: What does… Read more »
The Eurozone’s zombie banks
Description: They can’t be saved. They can’t be killed and are ready to cause the next global crisis! You’d be right to think zombies, but were you thinking zombie banks? Source: CNNMoney.com – video report Date: Oct 31, 2014 Link: http://money.cnn.com/video/news/2014/10/31/zombie-banks.cnnmoney/index.html Questions for Discussions: What are “zombie” banks and how were they “created”? Why are… Read more »
