Description: UBS AG (UBSN)’s $1.5 billion fine for rigging global interest rates expands the scandal to include bribery and highlights the influence of a trader in Tokyo who colluded with other banks to align their submissions. Source: Bloomberg.com Date: Dec 19, 2012 Link: http://www.bloomberg.com/news/2012-12-19/ubs-libor-fine-soars-as-traders-bribed-brokers-to-fix-libor-rate.html Questions for Discussions: What does this report say about the manner… Read more »
Posts Categorized: Management Issues
Yahoo beats Google in Feats of Strength
Description: While Google celebrates Seinfeld holiday Festivus a bit early, Yahoo stock has soared since ex-Googler Marissa Mayer took over as CEO. Source: CNNMoney.com – video report Date: Dec 12, 2012 Link: http://money.cnn.com/video/investing/2012/12/12/investing-yahoo-google.cnnmoney/ Questions for Discussions: How do you explain the big improvement at Yahoo? Do you think investors have fundamentally changed their thinking about… Read more »
Groupon CEO Mason Addresses Takeover Reports
Description: Cory Johnson reports on Groupon’s sales growth and possible takeover. He speaks with Deirdre Bolton on Bloomberg Television’s “Bloomberg West.” Source: Bloomberg.com – video report Date: Dec 11, 2012 Link: http://bloom.bg/X81lR9#ooid=p2aWdrNzo-dhmC7M3hsAXNhZ_gTmAnCC Questions for Discussions: Summarize the financial condition of the firm? How has management responded? Do you see a turnaround for the firm? How… Read more »
Renault Sells Volvo Shares for $1.92 Billion to Cut Debt
Description: Renault SA (RNO), which is losing sales faster than any other European carmaker, sold its remaining Volvo AB (VOLVB) stake for 12.8 billion kronor ($1.92 billion) to boost funding, ending an 11-year run as the Swedish truckmaker’s largest owner. Source: Businessweek.com Date: Dec 13, 2012 Link: http://www.businessweek.com/news/2012-12-12/renault-to-sell-volvo-shares-worth-2-billion-to-cut-debt#r=bloomberg Questions for Discussions: What is the reasoning… Read more »
Google Revenues Sheltered in No-Tax Bermuda Soar to $10 Billion
Description: Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda shell company, almost double the total from three years before, filings show. Source: Bloomberg.com Date: Dec 10, 2012 Link: http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html Questions for Discussions: Explain how tax laws have influenced financial planning at… Read more »
Shutterfly makes 120% of profit in 20 days
Description: Shutterfly CEO Jeffrey Housenbold says the holiday season accounts for all of the company’s profits and about 40% of its revenue. Source: CNNMoney.com – video report Date: Dec 05, 2012 Link: http://money.cnn.com/video/technology/2012/12/05/t-shutterfly-holidays.fortune/ Questions for Discussions: Describe the cash flow management issues for the firm. Is there a way to smooth the imbalance of cash… Read more »
Netflix Shows Facebook Is Not the Internet (Yet)
Description: Not so fast, kiddos. That’s what the Securities and Exchange Commission seems to be saying by warning Netflix (NFLX) that it may sue the company over a single Facebook (FB) update. The SEC’s warning centers on a July 3 Facebook post by Chief Executive Officer Reed Hastings that said Netflix customers streamed more than… Read more »
Why Hewlett-Packard Should Consider Breaking Up
Description: The struggling technology company is an amalgam of businesses that could be worth more separately than they are together. Source: TheDailyBeast.com Date: Dec 07, 2012 Link: http://www.thedailybeast.com/articles/2012/12/07/why-hewlett-packard-should-consider-breaking-up.html Questions for Discussions: What are the arguments for breaking up and keeping H-P as it is today? Do you think H-P should be broken up? Would you… Read more »
What Awaits Mark Carney at the Bank of England
Description: He has been touted as the best man for the job, but what exactly can Mark Carney expect when he takes on the role of governor at the Bank of England next year? DeAnne Julius, former MPC member, and Chris Giles, economics editor, lay out some of the challenges to the FT’s Seb Morton-Clark…. Read more »
Hedge Funds Find Tech Stocks in the Bargain Bin
Description: Fans of tech stocks and train wrecks got to combine their interests in 2012, as several high-profile companies endured an awful year: Shares of Facebook are off 31 percent, Zynga is down 73 percent, and Groupon is at negative 79 percent. Yahoo! struggled, Netflix fell, and even Apple had a rough stretch that lopped… Read more »
