Description: In fewer than two weeks, the two best teams in the National Football League will face off in New Orleans for Super Bowl XLVII. The winning team will receive the Lombardi Trophy, along with rings, hats, T-shirts and perhaps even a victory parade in its home city.But could the outcome also tell investors what’s… Read more »
Posts Categorized: Financial analysis
Lululemon: Downward facing stock
Description: Despite continued growth, investors are punishing Lululemon stock on worse-than-expected guidance. Source: CNNMoney.com – video report Date: Jan 15, 2013 Link: http://money.cnn.com/video/investing/2013/01/15/investing-buzz-lululemon.cnnmoney/ Questions for Discussions: Why has the stock price declined recently? Summarize the financial analysis presented in the report. Why would some investors believe there remains much more growth in the future for… Read more »
Harry Winston to Use Swatch Cash for Diamonds Purchases
Description: Harry Winston Diamond Corp. (HW)’s $1 billion sale of a luxury unit to Swatch Group AG (UHR) provides the cash to invest more in diamond mining, a business that last year was more than twice as profitable as jewelry. Source: Bloomberg.com Date: Jan 15, 2013 Link: http://www.bloomberg.com/news/2013-01-15/harry-winston-to-use-swatch-cash-for-diamonds-purchases.html Questions for Discussions: Explain the logic of… Read more »
Dell buyout talks advance, Silver Lake lines up banks-sources
Description: Talks to take Dell Inc private are at an advanced stage with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters, propelling shares of the No. 3 computer maker 7 percent higher. Source: Reuters.com Date: Jan 16, 2013 Link: http://www.reuters.com/article/2013/01/16/us-dell-deal-idUSBRE90E0XK20130116 Questions for Discussions: Explain… Read more »
The battle over Herbalife
Description: An inside look at Herbalife’s business model and the $1 billion bet hedge fund manager Bill Ackman has against it. Source: CNNMoney.com – video report Date: Jan 11, 2013 Link: http://money.cnn.com/video/news/2013/01/11/n-herbalife-bill-ackman-queens.cnnmoney/ Questions for Discussions: Compare the organizational structure of Herbalife to a pyramid selling organization. Do you believe Herbalife is a conventional distributor of… Read more »
How Does Amazon Survive on Such Tight Margins?
Description: Cory Johnson looks at how Amazon.com makes money. He speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg) Source: Bloomberg.com – video report Date: Jan 03, 2013 Link: http://bloom.bg/UqidDB Questions for Discussions: Explain the financial strategy Amazon is using to build its business? Do you think it is a sustainable strategy? Would you be an… Read more »
It’s getting interesting for Apple again
Description: The market is starting to pick up some good feelings again. The Sturm and Drang playing out in the capital is pretty impressive. Emotions in the market are starting to dissipate. I think there has been some heavy tax selling of big names from investors trying to manage their 2012 tax bills. Source: Marketwatch.com… Read more »
Renault Sells Volvo Shares for $1.92 Billion to Cut Debt
Description: Renault SA (RNO), which is losing sales faster than any other European carmaker, sold its remaining Volvo AB (VOLVB) stake for 12.8 billion kronor ($1.92 billion) to boost funding, ending an 11-year run as the Swedish truckmaker’s largest owner. Source: Businessweek.com Date: Dec 13, 2012 Link: http://www.businessweek.com/news/2012-12-12/renault-to-sell-volvo-shares-worth-2-billion-to-cut-debt#r=bloomberg Questions for Discussions: What is the reasoning… Read more »
Google Revenues Sheltered in No-Tax Bermuda Soar to $10 Billion
Description: Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda shell company, almost double the total from three years before, filings show. Source: Bloomberg.com Date: Dec 10, 2012 Link: http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html Questions for Discussions: Explain how tax laws have influenced financial planning at… Read more »
Why Hewlett-Packard Should Consider Breaking Up
Description: The struggling technology company is an amalgam of businesses that could be worth more separately than they are together. Source: TheDailyBeast.com Date: Dec 07, 2012 Link: http://www.thedailybeast.com/articles/2012/12/07/why-hewlett-packard-should-consider-breaking-up.html Questions for Discussions: What are the arguments for breaking up and keeping H-P as it is today? Do you think H-P should be broken up? Would you… Read more »
