Description: It hasn’t drawn much attention, but Facebook’s first annual earnings report contains an accounting gem: a multibillion-dollar tax deduction for the cost of executive stock options and share awards. Source: Businessweek.com Date: Feb 14, 2013 Link: http://www.businessweek.com/articles/2013-02-15/facebook-gets-a-multi-billion-dollar-tax-break#r=hp-lst Questions for Discussions: Why is the tax treatment of stock options a controversial issue? In your opinion,… Read more »
Posts Categorized: Company Analysis
Hermes $10,000 Birkin Purse Seen Leading to Record Sales
Description: For decades, fashionistas have known that a Birkin bag is a safe style bet — if you can get your hands on one. That demand makes its producer, Hermes International SCA, the surest bet in the luxury industry when it comes to sales growth. Source: Bloomberg.com Date: Feb 11, 2013 Link: http://www.bloomberg.com/news/2013-02-10/hermes-10-000-birkin-purse-seen-leading-to-record-sales-retail.html Questions for… Read more »
Berkshire and 3G Capital in a $23 Billion Deal for Heinz
Description: Just days ago, the fate of a 144-year-old American icon was being hashed out in a Pittsburgh conference room as executives spoke by phone to representatives of two global billionaires who went by the code names “Owl” and “Goose.” Source: NYTimes.com Date: Feb 15, 2013 Link: http://dealbook.nytimes.com/2013/02/14/berkshire-and-3g-capital-to-buy-heinz-for-23-billion/ Questions for Discussions: Describe the finiancial structure… Read more »
Dell LBO `Fair Deal’ for Shareholders, Sculley Says
Description: John Sculley, former chief executive officer of Apple Inc., and Shannon Cross, analyst at Cross Research, talk about Dell Inc.’s decision to go private in a deal valued at $24.4 billion, undertaking the biggest leveraged buyout since the financial crisis. They speak with Tom Keene and Sara Eisen on Bloomberg Television’s “Surveillance.” Joseph Weisenthal,… Read more »
Einhorn: What Tim Cook Should Do With Apple Cash
Description: Apple the world’s most valuable technology company, is being urged by David Einhorn’s Greenlight Capital to return more of its $137.1 billion in cash to shareholders. Einhorn speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg) Source: Bloomberg.com – video report Date: Feb 07, 2013 Link: http://bloom.bg/XqQHnV Questions for Discussions: What is David Einhorn’s proposal… Read more »
HP Investors Face a Lonelier Road Ahead
Description: Now that its nemesis, Dell (DELL), is going private and bowing out of the quarterly earnings spotlight, Hewlett-Packard (HPQ) finds itself at the intersection of two clichés: Misery loves company (but) breaking up is hard to do. Source: Businessweek.com Date: Feb 08, 2013 Link: http://www.businessweek.com/articles/2013-02-08/hp-investors-face-a-lonelier-road-ahead#r=hp-ls Questions for Discussions: How has HP boosted stock value… Read more »
Can Procter & Gamble CEO Bob McDonald hang on?
Description: Earnings calls aren’t known for providing catharsis. Indeed, you wouldn’t have detected elation in the nasal, Midwestern tones of Procter & Gamble’s embattled CEO, Bob McDonald, as he answered questions after the ritual presentation of the quarterly numbers on Jan. 25. Source: Fortune.com Date: Feb 08, 2013 Link: http://management.fortune.cnn.com/2013/02/08/procter-gamble-mcdonald/ Questions for Discussions: Would you… Read more »
Will Michael Dell become the Marlboro man of the PC age?
Description: Comment The mooted Dell takeover, the one to take it private again, is now happening. The big question is why? Why come off the public markets to operate as a private company again? The obvious and logical answer here being that the people buying the company think they can make more money this way… Read more »
Amazon can do no wrong
Description: Shares of Amazon are near an all-time high despite missing estimates. Investors continue to give Jeff Bezos the benefit of the doubt. Source: CNNMoney.com – video report Date: Jan 30, 2013 Link: http://money.cnn.com/video/investing/2013/01/30/investing-buzz-amazon-bezos-earnings.cnnmoney/ Questions for Discussions: How is Amazon doing financially speaking and in the stock market? How does this report explain the price… Read more »
Facebook Profit Drops as Spending Rises on New Features
Description: Facebook Inc. (FB) reported a plunge in fourth-quarter profit on higher spending, even while it made long-awaited progress luring advertisers eager to reach mobile- device users. Source: Bloomberg.com – video report Date: Jan 31, 2013 Link: http://www.bloomberg.com/news/2013-01-30/facebook-profit-drops-amid-higher-spending-on-features-ad-tools.html Questions for Discussions: Summarize the financial analysis presented in this report for Facebook. Explain the reasoning for… Read more »
