Description: There are all sorts of new things in the aisles for small kitchen appliances these days, such as men. Not so long ago, small kitchen appliances were confined to a few main items such as toasters. Now, after a decade of kitchen-gadget makers adding high-tech features and with consumer spending recovering from the recession,… Read more »
Posts Categorized: Company Analysis
Markets charge ahead
Description: With all major indices up about 10% so far this year, investors are optimistic that 2013 will be a robust year for the economy. Source: CNNMoney.com – video report Date: Mar 29, 2013 Link: http://money.cnn.com/video/investing/2013/03/29/news-markets-q1.cnnmoney/ Questions for Discussions: Summarize the state of the US stock market. What explains the change in performance? What explains… Read more »
Dell: We’ve got 99 problems but the bid ain’t one
Description: Dell Inc. (DELL) today filed a proxy statement, detailing the process leading up its its $24.4 billion buyout proposal from CEO Michael Dell and private equity firm Silver Lake Partners. The proxy also includes details from the company’s recent “go-shop” period, which resulted in nonbinding indications of interest from The Blackstone Group (BX) and… Read more »
The Troubling Return of Credit Bubble Factors Like CDOs
Description: Data point No. 1: Banks are back to hawking complex derivatives that magnify bets on corporate debt. Data point No. 2: For the first time since the financial crisis, JPMorgan Chase (JPM) is set to resume selling securities tied to home loans that aren’t backed by the government. Add a third development—the feverish revival… Read more »
Nike soars – It’s gotta be the shoes!
Description: Shares of Nike surge after the athletic apparel retailer reported better-than-expected earnings, despite worries about weak sales in China. Source: CNNMoney.com – video report Date: Mar 22, 2013 Link: http://money.cnn.com/video/investing/2013/03/22/investing-the-buzz-nike.cnnmoney/ Questions for Discussions: Why was Nike expected to perform poorly in the last quarter? What is the explanation for its success? What do these… Read more »
How to Play Lululemon
Description: Option Pit Mentoring COO Mark Sebastian discusses his Lululemon trade. He speaks on Bloomberg Television’s “Lunch Money.” (Source: Bloomberg) Source: Bloomberg.com – video report Date: Mar 22, 2013 Link: http://bloom.bg/11sB7QT#ooid=JoZDhlYTrKI2yBsgQJNQoRU7RdG3LP_n Questions for discussion: Explain the play in Lululemon presented in the report and the reasons for this thinking? Do you agree with this strategy?… Read more »
When David Einhorn Talks, Markets Listen—Usually
Description: It was shaping up as an especially good episode of The David Einhorn Show. The founder of the $8.8 billion hedge fund Greenlight Capital was speaking in May 2012 at his favorite venue, the Ira W. Sohn Investment Research Conference, held that year at New York’s Lincoln Center, to a packed audience of money… Read more »
Dividend not in CGI Group’s plans: CEO
Description: Paying a dividend to shareholders is not the right use of its money, CGI Group (CGI-T 16.44 -0.05 -0.3%) chief executive Michael Roach tells BNN, as the company, which was recently crowned Canada’s biggest technology firm, builds up funds for potential acquisitions. CGI shareholders, along with the stockholders of most publicly-traded companies, have… Read more »
Spinoff of Time Inc. Rattles Employees
Description: It was an elite reception at a glittery Manhattan setting: prominent media figures like Gayle King and Lesley Stahl gathered on the 10th floor of the Time Warner Center on Monday night to toast Sheryl Sandberg, the Facebook executive who recently released a book about her life. Source: NYTimes.com Date: Mar 13, 2013 Link:… Read more »
How Big Losses Distorted JPMorgan’s Sense of Reality
Description: Time-tested wisdom on Wall Street is that when a trade you made is losing money, you should swallow hard and get out of the position before things get even worse. Cut your losses. But when JPMorgan Chase (JPM) started losing big on its London Whale trade last year, traders and executives all the way… Read more »