How Nike keeps running up profits

Posted by & filed under Company Analysis, Economic Analysis, Growth & Valuation, Management Issues.

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… Read more »

Google Rarely Misses Estimates, So What Happened?

Posted by & filed under Company Analysis, Financial analysis.

Description: Google’s fourth-quarter earnings rise but come in below analysts’ targets, and that doomed the search firm’s stock in late trades. Currency and tax issues, combined with a recent rally, set up the shares for a fall, according to MarketWatch tech editor Dan Gallagher. Lauren Rudser reports. Source:  Marketwatch.com – video report Date: 01/05/2012 Link: … Read more »

Bank investors better get used to low returns

Posted by & filed under Company Analysis, Economic Analysis, Governments & Regulators, Growth & Valuation, Management Issues.

Description:  Reduced risk has translated into a return on shareholder’s equity that’s more akin to a sleepy regulated utility than a top investment firm. Source: Fortune.com Date: 01/20/2012 Link:  http://finance.fortune.cnn.com/2012/01/20/bank-earnings-shareholder-return/?iid=SF_F_Lead Questions for discussion: Why are bank stock returns expected to be reduced? Do you agree with the explanation?

Kodak Bankruptcy May Bet on Printing

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis.

Description:  As Eastman Kodak Co. (EK) investors bet the 131-year-old photographic pioneer was headed for bankruptcy, the company decided Chapter 11 was the simplest way to become the leaner digital printing specialist it aspires to be. Source: Bloomberg.com Date: 01/20/2012 Link:  http://www.bloomberg.com/news/2012-01-19/kodak-bankruptcy-may-shed-photography-bet-on-digital-printing.html Questions for discussion: Do you think the bankruptcy and sale of assets will… Read more »

Sir Richard enters the business of banking

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Description:  Virgin Group’s Sir Richard Branson on his new foray into the banking business with takeover of the ill-fated British bank,Northern Rock. http://money.cnn.com/video/news/2012/01/10/n_branson_virgin_money.cnnmoney/ Questions for discussion:   Do you think this bank will be managed differently because of the connection to Branson and the Virgin brand? Do you think this bank will perform any differently –… Read more »

Hostess, Maker of Twinkies, Files for Bankruptcy

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Description:    Hostess Brands, known for sweet treats like Twinkies and Ding Dongs, is back in Chapter 11. Source: NYTimes.com Date: 01/11/2012 Link:  http://dealbook.nytimes.com/2012/01/11/hostess-files-for-bankruptcy/?ref=business Questions for discussion: Why do you think the firm is in financial difficulty again? What is the financial condition of the firm? What would you advise management do today?

Weil: Why Zombie Banks Hate to Write Off Bad Loans

Posted by & filed under Company Analysis, Economic Analysis, Financial analysis, Growth & Valuation.

Description: There’s a simple explanation for why the world’s zombie banks remain so reluctant to write off worthless assets and tap the equity markets for fresh capital. They don’t want to end up like UniCredit SpA. (UCG) Source:  Bloomberg.com Date: 01/11/2012 Link:  http://www.bloomberg.com/news/2012-01-12/financial-frankness-is-a-bad-dream-for-a-bank-commentary-by-jonathan-weil.html Questions for discussion: What is the explanation for not writing off bad… Read more »

Can anyone save Fannie Mae and Freddie Mac?

Posted by & filed under Company Analysis, Economic Analysis, Governments & Regulators, Growth & Valuation, Management Issues.

Description:  It has been more than three years since then Treasury Secretary Henry Paulson fired his famous metaphorical bazooka and the federal government seized control of mortgage agencies Fannie Mae and Freddie Mac. Source: Fortune.com   Date: 01/11/2012 Link: http://money.cnn.com/2012/01/11/news/economy/thebuzz/index.htm?iid=HP_River Questions for discussion:  According to the report, what are the reasons for ongoing problems at… Read more »

A Historical Cycle Bodes Ill for the Markets

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Description:  AT the turn of the last century, it was widely accepted that American stocks were virtually certain to be good long-term investments. Now, far fewer people are confident of that. Source: NYTimes.com Date: 01/06/2012 Link:  http://www.nytimes.com/2012/01/07/business/economy/a-historical-cycle-bodes-ill-for-the-markets.html?ref=business Questions for discussion: Summarize the model presented in this report. Do you agree with the analysis presented in… Read more »

Here comes the big profit lie

Posted by & filed under Company Analysis, Economic Analysis, Governments & Regulators, Growth & Valuation, Management Issues.

Description:  Wall Street expects corporate miracles in 2012, and that means trouble. Source: Fortune.com Date: 01/06/2012 Link:  http://finance.fortune.cnn.com/2012/01/06/profit-expectations-unrealistic/?iid=SF_F_LN Questions for discussion: Summarize the arguments presented in this critique of Wall Street. Do you agree with this assessment? Is there anything to be done by regulators?