Description: Walmart agreed to purchase Jet.com for $3.3 billion, papering what would be the most expensive U.S. e-commerce acquisition of all time. Source: Forbes.com Date: Aug 08, 2016 Link: http://www.forbes.com/sites/ryanmac/2016/08/08/walmart-inks-3-billion-deal-for-jet-com-in-biggest-u-s-e-commerce-deal-ever/#1d29af9b94eb Questions for discussion: Do you think the acquisition makes sense from a financial point of view? How would Walmart’s results be expected to change going… Read more »
Posts Categorized: Industry Analysis
Adidas selling part of its golf business
Description: Herbert Hainer, Adidas CEO, says the company plans to sell off its TaylorMade and Adams brands and will focus on its footwear and apparel business. Source: CNNMoney.com – video report Date: May 05, 2016 Link: http://money.cnn.com/video/news/2016/05/05/adidas-ceo-golf.cnnmoney/ Questions for Discussions: From a financial standpoint, why would Adidas divest from these firms? Why would it continue… Read more »
The World’s Richest Airlines Can’t Get Enough Hand-Me-Down Jets
Description: It’s a tale that could be dubbed “From Russia to Love.” Source: Bloomberg.com Date: May 11, 2016 Link: http://www.bloomberg.com/news/articles/2016-05-11/the-world-s-richest-airlines-can-t-get-enough-hand-me-down-jets Questions for discussion: What is motivating the purchases of older planes? How does this affect the operating finances of these airlines?
Big Oil Abandons $2.5 Billion in U.S. Arctic Drilling Rights
Description: After plunking down more than $2.5 billion for drilling rights in U.S. Arctic waters, Royal Dutch Shell, ConocoPhillips and other companies have quietly relinquished claims they once hoped would net the next big oil discovery. Source: Bloomberg.com – video report Date: May 10, 2016 Link: http://www.bloomberg.com/news/articles/2016-05-10/big-oil-abandons-2-5-billion-in-u-s-arctic-drilling-rights Questions for Discussions: What does the report say… Read more »
The Existential Angst of SolarCity
Description: If you’re involved in the running of a company called SolarCity, one question you really don’t want to hear on your earnings call is: “What is SolarCity?” Source: Bloomberg.com Date: May 10, 2016 Link: http://www.bloomberg.com/gadfly/articles/2016-05-10/solarcity-shares-plunge-amid-existential-angst Questions for Discussions: What is SolarCity? Why did share value plunge? How would you evaluate investment in the firm? From… Read more »
LendingClub saga may yield increased scrutiny of peer-to-peer lending
Description: Regulators expected to take fresh interest after LendingClub’s CEO ouster Source: MarketWatch.com Date: May 09, 2016 Link: http://www.marketwatch.com/story/lendingclub-saga-may-yield-increased-scrutiny-of-the-peer-to-peer-lending-2016-05-09 Questions for Discussions: What are the managerial issues at the center of this story? What lessons should be taken by all managers, regardless of the nature of their industry?
Sewer or Not? Valeant Pits Ackman Against Buffett in Clash
Description: Billionaires Warren Buffett and Bill Ackman couldn’t be further apart on Valeant Pharmaceuticals International Inc. Source: Bloomberg.com – video report Date: May 02, 2016 Link: http://www.bloomberg.com/news/articles/2016-05-02/sewer-or-not-valeant-pits-ackman-against-buffett-in-clash Questions for Discussions: What do you think about the business model? As an investor, how would you treat the stock today?
These Six Charts Show Investors Don’t Have Faith in U.S. Stocks
Description: While $3 trillion has been added to equities in 11 weeks and the S&P 500 has recently been points from a record, you couldn’t tell from the behavior of investors. Source: Bloomberg.com Date: May 03, 2016 Link: http://www.bloomberg.com/news/articles/2016-05-03/these-six-charts-show-investors-don-t-have-faith-in-u-s-stocks Questions for Discussions: What do you think about the analysis presented in the report? What is… Read more »
Carl Icahn Dumped His Apple Shares
Description: And made around $2 billion on overall Apple investments Source: Fortune.com – video report Date: Apr 28, 2016 Link: http://for.tn/1STw2vP Questions for discussion: Do you think Carl Icahn sold too soon, too late, or should have held on? Why do you think he sold now? How much of his decision do you think was… Read more »
Yahoo, when looked at in a certain way, is worth approximately -$8 billion.
Description: The minus sign above isn’t a typo. Source: Bloomberg.com – video report Date: April 28, 2016 Link: http://www.bloomberg.com/features/2016-yahoo/ Questions for Discussions: Summarize Yahoo!’s key financials presented in the report. What do you think the value of the firm is to investors?
