Description: BlackBerry says it will cut 4,500 jobs across its operations, and expects to report a second-quarter loss of between $950 million to $995 million US when it issues its financial results next week. Source: CBC.ca – video report Date: Sep 20, 2013 Link: http://www.cbc.ca/player/News/TV%2BShows/The%2BNational/Technology%2B&%2BScience/ID/2407696489/ Questions for discussion: Summarize the collapse of BB share value. Is… Read more »
Posts Categorized: Company Analysis
Buffett’s 9% Heinz Dividend Means 3G Cutting Jobs, Mini-Fridges
Description: HJ Heinz Co.’s longtime leader Bill Johnson stood in the Veranda ballroom at the Four Seasons Hotel San Francisco, addressing the ketchup maker’s top 50 executives for the last time. Around the corner in a smaller room, his successor as chief executive officer, Bernardo Hees, waited to tell some of the same managers whether… Read more »
POSTMASTER SAYS USPS MAY NEED EMERGENCY RATE HIKE
Description: Postmaster General Patrick Donahoe said Thursday his agency is in “the midst of a financial disaster” and may need an emergency increase in postage rates to keep operating. Source: AP.com Date: Sep 19, 2013 Link: http://bigstory.ap.org/article/postmaster-says-usps-may-need-emergency-rate-hike Questions for Discussions: What is the problem at the USPS? Why is it important to keep the service… Read more »
New iPhone a yawn? Apple is still a bargain
Description: Despite concerns that Apple is no longer innovating, investors (including Carl Icahn) can’t ignore the attractive valuation and $147 billion in cash. Source: CNNMoney.com – video report Date: Sep 10, 2013 Link: http://money.cnn.com/video/investing/2013/09/10/investing-the-buzz-apple-iphone.cnnmoney/index.html Questions for Discussions: Do you think Apple is a good buy, now that investors have further reduced valuations upon seeing the… Read more »
Obama’s Wall Street Bank Rescue Stabilized Economy at a Political Cost
Description: When Barack Obama took office, the economy appeared to be on the brink of catastrophe. Despite the previous administrations commitment of several trillion dollars from every available arm of government to prop up the reeling financial system, nothing seemed to have worked. Banks were still hemorrhaging cash, and it was feared some would go… Read more »
Companies Embrace Low Interest Rates by Selling Bonds to Raise Billions
Description: For companies looking to raise money through the debt markets, and the bankers egging them on, it seems no sum is too large.Verizon Communications shattered records and shook up the bond world on Wednesday when it sold $49 billion of investment-grade corporate debt at one time. Source: NYTimes.com Date: Sep 11, 2013 Link: http://dealbook.nytimes.com/2013/09/11/verizon-set-for-49-billion-debt-sale/?ref=business… Read more »
Why Starbucks Could Double Again
Description: In the course of its 21 year stock history, Starbucks (NASDAQ: SBUX ) has doubled exactly 8 times. Minus the brief but major dips, the stock has taken off since ’08, and it has had a consistent rise in price for the last 6 years. Almost in a straight upward line. This year alone it… Read more »
JCPenney’s newest customers: hedge funds
Description: A number of hedge funds including Hayman Capital and Glenview Capital are buying up JCPenney stock in the hopes of turning around the troubled retailer. Source: CNNMoney.com – video report Date: Sep 04, 2013 Link: http://money.cnn.com/video/investing/2013/09/04/investing-the-buzz-jcp-glenview-hayman-capital.cnnmoney/index.html Questions for Discussions: What do you think these new buyers of stock see in the company? How does… Read more »
A Social Entrepreneur’s Quandary: Nonprofit or For-Profit?
Description: In 2002, at the age of 18, Saul Garlick started a program to fight poverty by building schools in rural South Africa. Source: NYTimes.com Date: July 10, 2013 Link: http://www.nytimes.com/2013/07/11/business/smallbusiness/a-social-entrepreneurs-dilemma-nonprofit-or-for-profit.html?ref=smallbusiness Questions for Discussions: What are the financial advantages and disadvantages of the switch to for-profit in this case? What would your advice be?
Why We’ll Be Better Off if the Walmart Protests Fail
Description: Employees of the big box store are planning a national day of protest for higher wages. Economist Richard Vedder on why we’ll all be in trouble if they get their way. Source: Thedailybeast.com Date: Sep 05, 2013 Link: http://www.thedailybeast.com/articles/2013/09/05/why-we-ll-be-better-off-if-the-walmart-protests-fail.html Questions for Discussions: How would a jump in minimum wage to $12/hour affect companies now… Read more »
