Description: The global shipping industry is taking a hit as concerns increase over China’s economic slowdown. Source: CNNMoney.com – video report Date: Mar 14, 2016 Link: http://money.cnn.com/video/news/economy/2016/03/14/china-slowdown-hits-shipping.cnnmoney/ Questions for discussion: Why is the shipping industry a good barometer of economic activity? How is this industry changing? What other transportation businesses would be good indicators of… Read more »
Posts Categorized: Growth & Valuation
U.S. Textile Industry Turns to Tech as Gateway to Revival
Description: Warwick Mills shows the kind of innovative know-how common among American textile companies that have survived the fierce global competition of recent years. Source: NYTimes.com Date: April 01, 2016 Link: http://www.nytimes.com/2016/04/01/technology/us-textile-industry-turns-to-tech-as-gateway-to-revival.html?ref=business&_r=0 Questions for discussion: How is innovation helping this company and industry? Why do you think manufacturers might be slow to follow a similar… Read more »
‘Affordable’ Tesla Model 3 revealed as Elon Musk charges up the crowd
Description: More than 135,000 people have already paid $1K to reserve one Source: MarketWatch.com Date: Apr 01, 2016 Link: http://www.marketwatch.com/story/tesla-model-3-elon-musk-charges-up-the-crowd-for-mass-appeal-car-2016-04-01 Questions for Discussions: Do you think the model 3 will catapult Tesla stock value? How should investors interpret the meaning of 135,000 people depositing funds for future delivery of a car?
The Netflix of Fashion: Rent the Runway Streams Wardrobes
Description: The Netflix of Fashion: Rent the Runway Streams Wardrobes Source: Bloomberg.com – video report Date: Mar 24, 2016 Link: http://bloom.bg/1q4RukG Questions for Discussions: Do you think this business model is sustainable? Explain your thinking? Do you think low barriers to entry present a problem for this firm’s growth? How would you characterize the risk… Read more »
In Yahoo, Another Example of the Buyback Mirage
Description: It is one of the great investment conundrums of our time: Why do so many stockholders cheer when a company announces that it’s buying back shares? Source: NYTimes.com Date: Mar 25, 2016 Link: http://www.nytimes.com/2016/03/27/business/in-yahoo-another-example-of-the-buyback-mirage.html?ref=business&_r=0 Questions for discussion: What is the buyback mirage warning all about? How should investors weigh firms that choose to take… Read more »
Valeant Pharmaceuticals International Inc creditors prepare to slam company with tougher demands in face of possible default: sources
Description: NEW YORK – Creditors of Valeant Pharmaceuticals International, which has been in violation of lender agreements since Wednesday, are beginning to demand new terms that could further pressure the drugmaker’s business model, according to three people familiar with the matter. Source: Reuter.com/FinancialPost.com Date: Mar 21, 2016 Link: http://business.financialpost.com/investing/market-moves/valeant-pharmaceuticals-international-inc-creditors-prepare-to-slam-company-with-tougher-demands-in-face-of-default-sources Questions for Discussions: Do you think… Read more »
After $600 Million Typo, Valeant CEO Is Back on the Hot Seat
Description: Michael Pearson and his company, Valeant Pharmaceuticals International Inc., were supposed to calm Wall Street doubters on Tuesday. Instead: chaos. Source: Bloomberg.com – video report Date: Mar 15, 2016 Link: http://www.bloomberg.com/news/articles/2016-03-15/after-a-600-million-typo-valeant-s-ceo-is-back-on-the-hot-seat Questions for Discussions: Summarize the reasons for Valeant’s share value collapse, according to the report. Do you think it has collapsed completely and… Read more »
Cuban on his crusade against the SEC — and when he’ll be satisfied
Description: When he’s not hounding referees at Dallas Mavericks games or doling out money to would-be entrepreneurs on “Shark Tank,” Mark Cuban has made a hobby of offering often biting criticism of the Securities and Exchange Commission. Source: WashingtonPost.com Date: Mar 17, 2016 Link: https://www.washingtonpost.com/business/economy/cuban-on-his-crusade-against-the-sec–and-when-hell-be-satisfied/2016/03/17/619d9e9a-ebae-11e5-b0fd-073d5930a7b7_story.html Questions for discussion: Summarize Mark Cuban’s position with respect to… Read more »
Did central bankers make a secret deal to drive markets? This rumor says yes
Description: Speculation is flourishing about a tacit “Shanghai Accord” Source: MarketWatch.com Date: Mar 18, 2016 Link: http://www.marketwatch.com/story/did-central-bankers-make-a-secret-deal-to-drive-markets-this-rumor-says-yes-2016-03-18 Questions for Discussions: Summarize the theory presented in this report. What is the evidence presented? Do you agree with the analysis?
‘Fickle’ millennials blamed for Chipotle’s downward spiral
Description: Chipotle downgrade to rare underperform rating at Jefferies, which cited weak February trends and rising marketing costs Source: MarketWatch.com Date: Mar 18, 2016 Link: http://www.marketwatch.com/story/chipotle-stock-drops-after-rare-bearish-call-at-jefferies-2016-03-17 Questions for Discussions: Why has Chipotle stock been down-graded by this analyst? Do you agree with the assessment and predictions for recovery?
