Brazil Faces New Oil-Boom Curse as the World’s Resource Engine

Description:   In 2007, Brazilian geologists made the biggest oil find in the Americas in three decades. Buried more than five miles below sea-level, the discovery was estimated to raise the country’s crude reserves by 62 percent.

Source:  Bloomberg.com

Date: 03/13/2012

Link:  http://www.bloomberg.com/news/2012-03-13/brazil-faces-new-oil-boom-curse-as-the-world-s-resource-engine.html

Questions for discussion:

• Summarize the issues raised in the article about resource based industries?
• How can investors inside and outside Brazil be expected to respond?
• How will the currency likely be affected as resources rise or fall in value?
• What are the implications for investors?

Coffee Stocks Look Shaky

Description:  Starbucks late Thursday launched a broadside at Green Mountain Coffee, announcing the development of its own single-cup brewing system, the heart of Green Mountain’s success. Green Mountain’s stock tumble is a cautionary sign, Jack Hough reports on Mean Street.

Source: Marketwatch.com – video report

Date: 03/09/2012

Link:  http://www.marketwatch.com/video/asset/coffee-stocks-look-shaky/19D47C83-88D2-4332-AADA-23B838DAC9FD

Questions for discussion:

• Explain the coffee industry in general terms.
• Are the companies that are named good investments at this time?

Copper Traders Most Bullish in Two Months as Hedge Funds Buy: Commodities

Description:  Copper traders are the most bullish in two months on speculation that demand will strengthen from the U.S. to China at a time when stockpiles monitored by the world’s biggest metals exchange are at a 2 1/2 year low.

Source: Bloomberg.com

Date: 02/24/2012

Link:  http://www.bloomberg.com/news/2012-02-24/copper-traders-most-bullish-in-two-months-as-hedge-funds-buy-commodities.html

Questions for discussion:

• Explain the price movements in commodities and the investing strategies described.
• How would you approach this market?

Why oil prices keep on climbing

Description:  Oil prices spike to its highest level in nine months, following Iran’s announcement to halt oil exports to Britain and France.

Source: CNNMoney.com – video report

Date: 02/20/2012

Link:  http://money.cnn.com/video/news/2012/02/20/n_iran_oil_gas_prices.cnnmoney/

Questions for discussion:

• Why have oil prices risen?
• What is the impact of this change on the economy?

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?

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?

Investors flee gold and hedge funds

Description:  TrimTabs CEO Charles Biderman says money flowed out of gold and hedge funds and into bonds and bank savings accounts in 2011.

Source: CNNMoney.com – video report

Date: 12/29/2011

Link: http://money.cnn.com/video/news/2011/12/28/n_trimtabs_ceo.cnnmoney/

Questions for discussion:

• Summarize the arguments presented by Charles Biderman concerning investor behavior and the economy.
• Do you agree with his assessments?
• How would you approach investing in the early part of the new year?

What Buffett’s IBM buy says about his next move

Description: Screening for undervalued stocks the Oracle of Omaha would like

Source:  Marketwatch.com

Date: 11/18/2011

Link:   http://www.marketwatch.com/story/what-buffetts-ibm-buy-says-about-his-next-move-2011-11-18

Questions for discussion:

• How is Warren Buffetts’ investment in IBM being interpreted?
• How do you think it will influence investors’ perceptions of IBM?

New gold bugs are young and restless

Description: The allure of gold is thousands of years old, but nowadays the precious metal has a youthful look. Gold’s spectacular, decade-long run, coupled with the sovereign-debt crisis in Europe, an uncertain outlook for the U.S. dollar, and worries of worldwide recession, has tapped a new vein of investors in their 20s and 30s.

Source:  Marketwatch.com

Date: 11/11/2011

Link:   http://www.marketwatch.com/story/new-gold-bugs-are-young-and-restless-2011-11-11

Questions for discussion:

• Explain the appeal of gold to these investors.
• Is their thinking about the long term value of gold sound?

Cross-border pipeline may change oil’s landscape

Description: A proposed pipeline stretching from Canada to the United States may contribute to a rise in the nation’s prices for oil, and has the potential to significantly change the landscape of the market.

Source:  Marketwatch.com

Date: 10/28/2011

Link:   http://www.marketwatch.com/story/cross-border-pipeline-may-change-oils-landscape-2011-10-28

Questions for discussion:

• Summarize the main points presented in this report.
• Do you agree with the analysis and conclusions?
• Do you think the project should go ahead?

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