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 »
Posts Categorized: Financial Planning
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 »
Outsourcing to surge in 2013: study
Description: Love it or hate it, outsourcing is here to stay as a standard business practice. Source: SmartPlanet.com Date: Jan 28, 2013 Link: http://www.smartplanet.com/blog/bulletin/outsourcing-to-surge-in-2013-study/11466?tag=nl.e660&s_cid=e660 Questions for Discussions: Why is outsourcing popular? How does outsourcing relate to productivity, costs, and cash flow? What are the financial risks and limits to outsourcing?
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 »
Groupon CEO Mason Addresses Takeover Reports
Description: Cory Johnson reports on Groupon’s sales growth and possible takeover. He speaks with Deirdre Bolton on Bloomberg Television’s “Bloomberg West.” Source: Bloomberg.com – video report Date: Dec 11, 2012 Link: http://bloom.bg/X81lR9#ooid=p2aWdrNzo-dhmC7M3hsAXNhZ_gTmAnCC Questions for Discussions: Summarize the financial condition of the firm? How has management responded? Do you see a turnaround for the firm? How… 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 »
Shutterfly makes 120% of profit in 20 days
Description: Shutterfly CEO Jeffrey Housenbold says the holiday season accounts for all of the company’s profits and about 40% of its revenue. Source: CNNMoney.com – video report Date: Dec 05, 2012 Link: http://money.cnn.com/video/technology/2012/12/05/t-shutterfly-holidays.fortune/ Questions for Discussions: Describe the cash flow management issues for the firm. Is there a way to smooth the imbalance of cash… Read more »
Velshi: Are we in a recession?
Description: Despite people feeling better about the economy, one prominent economist says we’ve already dipped into a recession. Source: CNNMoney.com – video report Date: Nov 29, 2012 Link: http://money.cnn.com/video/news/2012/11/29/n-velshi-recession-your-money-daily.cnnmoney/ Questions for Discussions: Summarize the arguments for suggesting the US is already in recession? What does each of the four indicators presented represent? Do you believe… Read more »
What Awaits Mark Carney at the Bank of England
Description: He has been touted as the best man for the job, but what exactly can Mark Carney expect when he takes on the role of governor at the Bank of England next year? DeAnne Julius, former MPC member, and Chris Giles, economics editor, lay out some of the challenges to the FT’s Seb Morton-Clark…. Read more »
