Description: HP is following eBay’s lead and is breaking up into two companies. There has been a wave of spin-offs this year. Expect more to come. Source: CNNMoney.com – video report Date: Oct 06, 2014 Link: http://money.cnn.com/video/investing/2014/10/06/corporate-breakups-on-the-rise-hp-spinoff.cnnmoney/ Questions for Discussions: What is driving corporate splits? How have the corporate splits cited in the report performed… Read more »
Monthly Archives: October 2014
Americans sour on SodaStream
Description: Shares of the home carbonation machine maker sunk 21% to an all-time trading low Tuesday after the company released poor preliminary results for the third quarter. Source: CNNMoney.com Date: Oct 07, 2014 Link: http://money.cnn.com/2014/10/07/investing/sodastream-earnings-warnings/index.html?iid=HP_LN Questions for Discussions: Summarize the financial performance of the company from an investor’s point of view. What has happened? Do… Read more »
Hewlett-Packard Takes the King Solomon Approach
Description: And then Meg Whitman cut the baby in two. After spending years debating the merits of operating as separate companies, Hewlett-Packard (HPQ) on Monday announced its plans to divide. Source: Businessweek.com Date: Oct 06, 2014 Link: http://www.businessweek.com/articles/2014-10-06/hewlett-packard-to-split-into-two-companies#r=hpt-fs Questions for Discussions: Summarize the reasons provided for splitting the company into two separate firms? Do you… Read more »
S&P 500 Companies Spend 95% of Profits on Buybacks, Payouts
Description: Companies in the Standard & Poor’s 500 Index really love their shareholders. Maybe too much. Source: Bloomberg.com Date: Oct 06, 2014 Link: http://www.bloomberg.com/news/2014-10-06/s-p-500-companies-spend-almost-all-profits-on-buybacks-payouts.html Questions for Discussions: What does the report say about corporate use of funds? Why is this a concern longer term?
The next big crisis? Think 2008, only worse
Description: NEW YORK — Ever wondered when the next financial crisis will be? Possibly in just a couple of years with the “coming collapse of the international monetary system.” Source: FinancialPost.com/Reuters Date: Oct 06, 2014 Link: http://business.financialpost.com/2014/10/06/the-next-big-crisis-think-2008-only-worse/ Questions for Discussions: What is your opinion of this prediction? How should investors respond if they disagree with… Read more »
How to tell when investors are scared
Description: You can’t just look at stock prices to judge how investors feel. CNNMoney’s Fear & Greed Index measures seven different gauges to determine if investors are fearful or greedy. Source: CNNMoney.com – video report Date: Oct 02, 2014 Link: http://money.cnn.com/video/investing/2014/10/02/fear-and-greed-explainer.cnnmoney/ Questions for Discussions: What is the composition of the index? How should it be… Read more »
EBay breaks up with PayPal
Description: Ebay is finally following the advice off Carl Icahn and spinning of PayPal in 2015. Will the companies benefit from the breakup? Source: CNNMoney.com – video report Date: Oct 02, 2014 Link: http://money.cnn.com/video/investing/2014/09/30/ebay-splits-with-paypal.cnnmoney/ Questions for Discussions: Why was PayPal spun off from EBay? Do you think it will be good for investors buying either… Read more »
Berkshire Hathaway buying 5th largest U.S. auto dealer
Description: Warren Buffet’s Berkshire Hathaway is buying U.S. auto dealer Van Tuyl Group to pursue medium and long term growth opportunities in the sector. Chitra Nawbatt reports. Source: BNN.ca – video report Date: Oct 02, 2014 Link: http://www.bnn.ca/Video/player.aspx?vid=457908 Questions for Discussions: Why is there consolidation taking place in the industry? What makes this industry an… Read more »
Humans Lose to Machines in $500 Billion-a-Day Bond Market
Description: Human traders are increasingly losing out to machines in the world’s biggest bond market. Source: Bloomberg.com Date: Oct 02, 2014 Link: http://www.bloomberg.com/news/2014-10-02/humans-lose-to-machines-in-500-billion-a-day-bond-market.html Questions for Discussions: How has technology affected bond trading, according to the article? Is this trend a problem for the markets, in your opinion?
What Should a Liberated PayPal Do? Become a Bank and Go to War With Apple
Description: PayPal’s break from EBay (EBAY) is all about buzzwords: eliminating dis-synergies, applying strategic focus, and seizing the moment. But what does that even mean? Source: Businessweek.com Date: Oct 02, 2014 Link: http://www.businessweek.com/articles/2014-10-02/ex-paypal-execs-ideas-for-its-future-war-with-apple-become-bank#r=hp-ls Questions for Discussions: What strategic direction is PayPal considering, according to the article? Do you agree with this line of thinking? Should… Read more »
