Description: The government worries mainly about “horizontal” mergers in which one company buys another that does the same thing. But there’s also risk in vertical combinations. Source: Businessweek.com Date: Oct 13, 2014 Link: http://www.businessweek.com/articles/2014-10-13/this-nobel-economist-analyzes-competition#r=nav-f-story Questions for Discussions: What does Jean Tirole say about mergers? How should investors use this information to guide their investment thinking?
Posts Categorized: Industry Analysis
GM Sued for $10 Billion Over Losses on 27 Million Cars
Description: General Motors Co. (GM) was hit with its biggest lawsuit so far over serial recalls, brought on behalf of drivers of 27 million vehicles seeking more than $10 billion in compensation for fallen car prices. Source: Bloomberg.com Date: Oct 15, 2014 Link: http://www.bloomberg.com/news/2014-10-15/gm-sued-for-10-billion-over-losses-on-27-million-cars.html Questions for Discussions: What are the issues in this report related… Read more »
Americans sour on SodaStream
Description: Shares of the home carbonation machine maker sunk 21% to an all-time trading low Tuesday after the company released poor preliminary results for the third quarter. Source: CNNMoney.com Date: Oct 07, 2014 Link: http://money.cnn.com/2014/10/07/investing/sodastream-earnings-warnings/index.html?iid=HP_LN Questions for Discussions: Summarize the financial performance of the company from an investor’s point of view. What has happened? Do… Read more »
Hewlett-Packard Takes the King Solomon Approach
Description: And then Meg Whitman cut the baby in two. After spending years debating the merits of operating as separate companies, Hewlett-Packard (HPQ) on Monday announced its plans to divide. Source: Businessweek.com Date: Oct 06, 2014 Link: http://www.businessweek.com/articles/2014-10-06/hewlett-packard-to-split-into-two-companies#r=hpt-fs Questions for Discussions: Summarize the reasons provided for splitting the company into two separate firms? Do you… Read more »
The next big crisis? Think 2008, only worse
Description: NEW YORK — Ever wondered when the next financial crisis will be? Possibly in just a couple of years with the “coming collapse of the international monetary system.” Source: FinancialPost.com/Reuters Date: Oct 06, 2014 Link: http://business.financialpost.com/2014/10/06/the-next-big-crisis-think-2008-only-worse/ Questions for Discussions: What is your opinion of this prediction? How should investors respond if they disagree with… Read more »
How to tell when investors are scared
Description: You can’t just look at stock prices to judge how investors feel. CNNMoney’s Fear & Greed Index measures seven different gauges to determine if investors are fearful or greedy. Source: CNNMoney.com – video report Date: Oct 02, 2014 Link: http://money.cnn.com/video/investing/2014/10/02/fear-and-greed-explainer.cnnmoney/ Questions for Discussions: What is the composition of the index? How should it be… Read more »
EBay breaks up with PayPal
Description: Ebay is finally following the advice off Carl Icahn and spinning of PayPal in 2015. Will the companies benefit from the breakup? Source: CNNMoney.com – video report Date: Oct 02, 2014 Link: http://money.cnn.com/video/investing/2014/09/30/ebay-splits-with-paypal.cnnmoney/ Questions for Discussions: Why was PayPal spun off from EBay? Do you think it will be good for investors buying either… Read more »
Berkshire Hathaway buying 5th largest U.S. auto dealer
Description: Warren Buffet’s Berkshire Hathaway is buying U.S. auto dealer Van Tuyl Group to pursue medium and long term growth opportunities in the sector. Chitra Nawbatt reports. Source: BNN.ca – video report Date: Oct 02, 2014 Link: http://www.bnn.ca/Video/player.aspx?vid=457908 Questions for Discussions: Why is there consolidation taking place in the industry? What makes this industry an… Read more »
What Should a Liberated PayPal Do? Become a Bank and Go to War With Apple
Description: PayPal’s break from EBay (EBAY) is all about buzzwords: eliminating dis-synergies, applying strategic focus, and seizing the moment. But what does that even mean? Source: Businessweek.com Date: Oct 02, 2014 Link: http://www.businessweek.com/articles/2014-10-02/ex-paypal-execs-ideas-for-its-future-war-with-apple-become-bank#r=hp-ls Questions for Discussions: What strategic direction is PayPal considering, according to the article? Do you agree with this line of thinking? Should… Read more »
Bill Gross quits Pimco: Why did he leave
Description: Bill Gross, co-founder and chief investment officer of Pimco, will join Janus Capital Group. Gross, who has presided over the world’s biggest bond fund for almost three decades, will start Sept. 29 at a new Janus office in Newport Beach, CA, and will begin managing the Janus Global Unconstrained Bond Fund on Oct. 6,… Read more »
