Where’s the Shareholder Outrage at Hewlett-Packard?

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis, Management Issues.

Description:  Here’s a vastly boiled-down refresher on corporate governance: A public company’s management is accountable to its board of directors, which in turn answers to shareholders, who are, after all, the “owners” of said public company. These holders keep executives and directors honest by casting votes based on tens of millions of shares dispersed across… Read more »

Bair: Why Citi should have been broken up

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Description:  Reflecting on the 2008 financial crisis, former FDIC chairperson Sheila Bair discusses her regrets over the bailout of the big banks. Source: CNNMoney.com – video report Date: Sep 27, 2012 Link: http://money.cnn.com/video/news/2012/09/27/n-sheila-bair-citi-bailout.fortune/ Questions for Discussions: Summarize the regrets expressed in hindsight by Sheila Blair. Why do you suppose Citi bondholders were “protected” by the… Read more »

No awkward teen years for Google

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Description: Shares of Google are at an all-time high as it turns 14. And the search giant shows no signs of maturity yet. Source: CNNMoney.com – video report Date: Sep 27, 2012 Link: http://money.cnn.com/video/investing/2012/09/27/investing-google-birthday.cnnmoney/ Questions for Discussions: Explain the current valuation of Google stock. Why are there comparisons to Facebook? What metrics would you use… Read more »

Bank of America to Pay $2.43 Billion to Settle Suit Over Merrill Deal

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Description:  Bank of America announced on Friday that it would pay $2.43 billion to settle a class action lawsuit related to its acquisition of Merrill Lynch, as the legal woes continue for the financial institution. Source: NYTimes.com Date: Sep 28, 2012 Link:  http://dealbook.nytimes.com/2012/09/28/bank-of-america-to-pay-2-43-billion-to-settle-class-action-over-merrill-deal/?ref=business Questions for Discussions: What lessons are there to be learned here for investors and… Read more »

RIM Defies Critics by Finding BlackBerry Sales Overseas

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Description:  Research In Motion Ltd. (RIMM)’s sales of the BlackBerry smartphone trounced estimates last quarter as it gained ground in emerging markets, signaling that the company may still have a future in the age of the iPhone. Source: Bloomberg.com Date: Sep 28, 2012 Link:  http://www.bloomberg.com/news/2012-09-28/rim-defies-critics-by-finding-blackberry-sales-overseas.html Questions for Discussions: Summarize the financial situation at RIM. Why… Read more »

Sprint gets iPhone 5 bump

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Description:  Shares of Sprint are up on iPhone 5 mania. But is the struggling wireless carrier a better bet than Apple, AT&T and Verizon? Source: CNNMoney.com – video report Date: Sep 20, 2012 Link: http://money.cnn.com/video/investing/2012/09/20/investing-sprint-iphone-5.cnnmoney/ Questions for Discussions: What explains Sprint’s rise in price? What are the negative aspects related to investing in this firm?… Read more »

Analyst: We See Apple Hitting $800 a Share

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Description: Alliance Bernstein senior analyst Toni Sacconaghi joins digits to explain the firm’s aggressive outlook for Apple and any tech sector forces that could curb the form’s outlook as well. Photo: Getty Images. Source: Moneywatch.com – video report Date: Sep 21, 2012 Link: http://on.wsj.com/RFKDLo Questions for Discussions: What is driving the share price of Apple?… Read more »

Do shaken transport stocks signal a sell?

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Description:  Commentary: Rough week for FedEx, railroads rattles Dow Theorists Source: Marketwatch.com Date: Sep 21, 2012 Link:  http://www.marketwatch.com/story/do-shaken-transport-stocks-signal-a-sell-2012-09-21 Questions for Discussions: Summarize the theory that concerns some investors at this time. Do you think there is reason to be concerned? What else might explain a decline in the transportation sector that is disconnected to the… Read more »

The economy 4 years after Lehman

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Description: CNNMoney takes a look at Wall Street jobs and where the country’s money is concentrated four years after Lehman Brothers went bankrupt. Source: CNNMoney.com – video report Date: Sep 14, 2012 Link: http://money.cnn.com/video/news/2012/09/14/n-economy-four-years-after-lehman-collapse.cnnmoney/ Questions for Discussions: Summarize the changes that have taken place during the past four years. What change can be considered “for… Read more »

Why Apple isn’t going into the Dow

Posted by & filed under Company Analysis, Industry Analysis.

Description:  Kraft  KFTis being replaced in the Dow Jones Industrial Average by UnitedHealth Group  after the close of trading  Sept. 21. It’s the first change in the composition of the widely quoted index since 2009. But while UnitedHealth represents an important sector of the economy, it may not have seemed the most logical choice, given… Read more »