Description: Nobody seems to have any clue at this point about the degree of the damage already done in the current banking crisis or whether there are more shoes to drop. The knock-on effects from Silicon Valley Bank to First Republic Bank are now obvious, but the investor fear, whether rational or not, is spreading. Source: Financialpost.com… Read more »
Posts Categorized: Financial analysis
Did SVB break the Fed?
Description: Officials mull risks of more rate increases Source: Reuters.com/MSN.com Date: Mar 20, 2023 Link: https://www.msn.com/en-ca/money/topstories/did-svb-break-the-fed-officials-mull-risks-of-more-rate-increases/ar-AA18Qn7N?ocid=msedgntphdr&cvid=32e68863ada24b5caa9cd4271e7953f4&ei=62 Questions for discussion: Summarize the debates presented in this article. What do you think will happen? What should investors do in the meantime, in your opinion?
‘I feel like a sucker’: I bought stock for $18 after an IPO. The underwriter’s brokerage house had a $30 price target. It fell below $1. How could they get it so wrong?
Description: “It seems they put a high price target to generate interest in the IPO.” Source: MarketWatch.com Date: Mar 20, 2023 Link: https://www.marketwatch.com/story/i-feel-like-a-sucker-i-bought-stock-for-18-after-an-ipo-the-underwriters-brokerage-house-had-a-30-price-target-it-fell-below-1-how-could-they-get-it-so-wrong-2daa9e5c?mod=search_headline Questions for discussion: Summarize the explanation given to the investor. What is the lesson that all investors should take away from this article? Do you think IPOs are riskier from an investor’s… Read more »
Are bank stocks a good investment right now? Here’s what experts say
Description: Turmoil at select U.S. and European banks over the last month has prompted worries about the health of the global financial sector and has driven down bank stocks as spooked investors watched the situation play out. Despite banking worries, experts told BNN Bloomberg that the period of panic rattling the market contains some promising investment opportunities in bank… Read more »
How Used Hotel Soap Gets Recycled Into Brand New Bars | World Wide Waste | Insider Business
Description: How Used Hotel Soap Gets Recycled Into Brand New Bars | World Wide Waste | Insider Business Source: BusinessInsider.com – video report Date: Mar 20, 2023 Link: https://www.youtube.com/watch?v=6qJV34pcOaw Questions for discussion: Summarize the pros and cons of this effort to recycle hotel soap? What are the financial, marketing and managerial implications for the firms… Read more »
What Does the Banking Crisis Mean for Startups and Small Business Owners?
Description: Author, CPA and business owner Gene Marks break down everything entrepreneurs need to know about the impact of the SVB collapse. Source: Entrepreneur.com – video report Date: Mar 20, 2023 Link: https://www.entrepreneur.com/business-news/what-does-the-banking-crisis-mean-for-small-business-owners/447997 Questions for discussion: What does Gene Marks have to say about the banking crisis? How should small businesses be dealing with the… Read more »
Lessons from the Silicon Valley Bank Collapse
Description: Wharton finance professor Itamar Drechsler discusses what led to the collapse of SVB and the questions it raises for banks, depositors, and regulators going forward. Source: knowledge.wharton.upenn.edu – podcast Date: Mar 14, 2023 Link: https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/lessons-from-the-silicon-valley-bank-collapse/?utm_campaign=KatW2023&utm_medium=email&utm_source=kw_campaign_monitor&utm_term=3-15-23&utm_content=Lessons_from_the_Silicon_Valley_Bank_Collapse Questions for discussion: Summarize the key points presented in the podcast by professor Itamar Drechsler. What is your opinion… Read more »
How to Make This the Last Banking Bailout
Description: Here we go again. The federal government is bailing out the banking industry, and the American people, who have seen this show far too often, have every right to be furious. The proper target for that anger, however, is not the bailout itself, but the need for it. Source: NYTimes.com Date: Mar 14, 2023… Read more »
Jim Cramer says the Fed is on the cusp of a ‘soft, safe landing’ in its inflation fight
Description: The collapse of multiple banks, the potential folding of start-ups and the general unease in the economy all suggest the Federal Reserve is on the “cusp of a soft, safe landing,” CNBC’s Jim Cramer said Tuesday. Source: CNBC.com – video report Date: Mar 14, 2023 Link: https://www.cnbc.com/2023/03/14/cramer-fed-on-the-cusp-of-a-soft-safe-landing-in-inflation-fight.html Questions for discussion: Summarize the arguments presented… Read more »
Couche-Tard to Buy TotalEnergies Assets for $3.3 Billion
Description: (Bloomberg) — Canadian convenience-store operator Alimentation Couche-Tard Inc. agreed to buy almost 2,200 gasoline stations in Europe from TotalEnergies SE for €3.1 billion ($3.3 billion). Source: Yahoo.Finance.com Date: Mar 16, 2023 Link: https://ca.finance.yahoo.com/news/couche-tard-buy-totalenergies-retail-080229157.html Questions for discussion: Financially speaking, what does this acquisition mean for Couche-Tard? Is this a good opportunity for growth, in your… Read more »