Description: When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president. But as Steven P. Jobs of Apple spoke,President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States? Source: … Read more »
Posts Categorized: Economic Analysis
How Nike keeps running up profits
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 »
Bank investors better get used to low returns
Description:Â 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:Â 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?
Sir Richard enters the business of banking
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
Description:Â Â Â Hostess Brands, known for sweet treats like Twinkies and Ding Dongs, is back in Chapter 11. Source: NYTimes.com Date: 01/11/2012 Link:Â 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
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?
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 »
Private Equity: Hero or Villain?
Description: Now that it’s become a campaign issue, it’s worth asking: Is private equity good for America? Source: Businessweek.com Date: 01/11/2012 Link: http://www.businessweek.com/magazine/private-equity-hero-or-villain-01112012.html Questions for discussion: Summarize the key points presented in the report. Do you agree with these assessments?
Investing in a bi-polar world
Description: Blackrock’s Chief Equity Strategist Bob Doll discusses the Europe debt crisis, U.S. corporate earnings and the social unrest. Source: CNNMoney.com – video report Date: 01/06/2012 Link: http://money.cnn.com/video/markets/2012/01/05/mkts_ss_blackrock_doll_2012.cnnmoney/ Questions for discussion: Summarize the arguments presented by Bob Doll concerning the global economy. Do you agree that with his assessments? How would you approach investing today?
A Historical Cycle Bodes Ill for the Markets
Description:Â 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:Â 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 »
