Description: Investors flee the retailer after disappointing sales and earnings. Will ousted chairman George Zimmer try to take the company private? Source: CNNMoney.com – video report Date: Sep 12, 2013 Link: http://money.cnn.com/video/investing/2013/09/12/investing-buzz-mens-wearhouse-sales-george-zimmer-private.cnnmoney/index.html Questions for Discussions: Why do failing companies typically go private? Do you think the firm needs new management in order to revive sales… Read more »
Posts Categorized: Management Issues
Obama’s Wall Street Bank Rescue Stabilized Economy at a Political Cost
Description: When Barack Obama took office, the economy appeared to be on the brink of catastrophe. Despite the previous administrations commitment of several trillion dollars from every available arm of government to prop up the reeling financial system, nothing seemed to have worked. Banks were still hemorrhaging cash, and it was feared some would go… Read more »
Companies Embrace Low Interest Rates by Selling Bonds to Raise Billions
Description: For companies looking to raise money through the debt markets, and the bankers egging them on, it seems no sum is too large.Verizon Communications shattered records and shook up the bond world on Wednesday when it sold $49 billion of investment-grade corporate debt at one time. Source: NYTimes.com Date: Sep 11, 2013 Link: http://dealbook.nytimes.com/2013/09/11/verizon-set-for-49-billion-debt-sale/?ref=business… Read more »
Why Starbucks Could Double Again
Description: In the course of its 21 year stock history, Starbucks (NASDAQ: SBUX ) has doubled exactly 8 times. Minus the brief but major dips, the stock has taken off since ’08, and it has had a consistent rise in price for the last 6 years. Almost in a straight upward line. This year alone it… Read more »
A Social Entrepreneur’s Quandary: Nonprofit or For-Profit?
Description: In 2002, at the age of 18, Saul Garlick started a program to fight poverty by building schools in rural South Africa. Source: NYTimes.com Date: July 10, 2013 Link: http://www.nytimes.com/2013/07/11/business/smallbusiness/a-social-entrepreneurs-dilemma-nonprofit-or-for-profit.html?ref=smallbusiness Questions for Discussions: What are the financial advantages and disadvantages of the switch to for-profit in this case? What would your advice be?
Why We’ll Be Better Off if the Walmart Protests Fail
Description: Employees of the big box store are planning a national day of protest for higher wages. Economist Richard Vedder on why we’ll all be in trouble if they get their way. Source: Thedailybeast.com Date: Sep 05, 2013 Link: http://www.thedailybeast.com/articles/2013/09/05/why-we-ll-be-better-off-if-the-walmart-protests-fail.html Questions for Discussions: How would a jump in minimum wage to $12/hour affect companies now… Read more »
Investors dance as Steve Ballmer exits
Description: News of Microsoft CEO Steve Ballmer’s retirement sent shares surging. Wall Street has criticized Ballmer for not moving into mobile quickly enough. Source: CNNMoney.com – video report Date: August 23, 2013 Link: http://money.cnn.com/video/investing/2013/08/23/investing-the-buzz-microsoft-steve-ballmer.cnnmoney/index.html Questions for Discussions: Why did Microsoft stock jump on the news that Steve Ballmer was going to retire? Why have… Read more »
Without Seamless, Fewer Customers and Higher Margins
Description: Earlier this month, Pedro Muñoz told customers that his restaurant, Luz, would no longer use popular online food-delivery service Seamless because the site took a 14 percent commission and waited too long—more than a month, a lifetime in the overhead-heavy restaurant business—to give Luz its cut. Source: Businessweek.com Date: August 23, 2013 Link: http://www.businessweek.com/articles/2013-08-23/without-seamless-fewer-customers-and-higher-margins#r=hp-ls… Read more »
Carl Icahn Says an Apple Buyback Is a No-Brainer. Or Is It?
Description: Those Apple guys must be idiots. That’s what Carl Icahn says, having bought up more than $1 billion of its shares with the sole objective of having management do the same. With more than $146 billion of cash in Apple’s (AAPL)pocket, using it to buy back shares is a “no-brainer,” Icahn told CNBC. Source:… Read more »
BlackBerry buyout unlikely
Description: Smartphone maker BlackBerry Inc. (BBRY) is “open” to going private, according to Reuters. How delightful. In related news, my toddler is “open” to getting a pony for her next birthday. Source: Fortune.com Date: August 09, 2013 Link: http://finance.fortune.cnn.com/2013/08/09/blackberry-buyout-unlikely/ Questions for Discussions: Summarize the financial conditions at the firm. Why is a buyout unlikely, according to… Read more »
