Lululemon Athletica Inc rebounds after yoga-wear maker reassures investors that problems are temporary

Posted by & filed under Company Analysis, Financial analysis, Financial Planning, Growth & Valuation.

Description: Canadian yogawear retailer Lululemon Athletica Inc forecast earnings and revenue below expectations on Thursday, but its shares rose after executives said the weak outlook was largely due to temporary West Coast port delays and currency factors. The stock was up 6.2% at US$64.73 in morning trading, with investors reassured that the outlook did not reflect underlying obstacles to growth.

Source: FinancialPost.com

Date: March 26, 2015

Link: http://business.financialpost.com/2015/03/26/lululemon-athletica-incs-shares-slide-after-forecast-misses-estimates/

Questions for discussion:

  • What are the concerns investors would have over inventories?
  • Explain the reason for the jump in stock value.

Will the Fed raise interest rates to the detriment of the stock market?

Posted by & filed under Economic Analysis, Governments & Regulators, Growth & Valuation, Market Analysis.

Description: Fortune senior editor Stephen Gandel and writer-reporter Christopher Matthews discuss if the Federal Reserve raising interest rates is a good thing for the economy long-term.

Source: Fortune.com – video report

Date: March 13, 2015

Link: http://for.tn/1b8kdxr

Questions for Discussions:

  • Summarize the commentaries about a rate hike and the consequences for the economy?
  • What do you think will happen to interest rates over the next year and how will it affect the stock market and the economy in general?

Are Alibaba’s Problems Expiring Along With Its IPO Lockup?

Posted by & filed under Company Analysis, Growth & Valuation, Market Analysis.

Description: Starting today, some of Alibaba’s earliest investors can sell their stakes, six months after the company went public in the biggest market debut in history.

Source: Forbes.com

Date: March 18, 2015

Link: http://www.forbes.com/sites/laurengensler/2015/03/18/alibaba-ipo-lockup-expiration/

Questions for Discussions:

  • What contributed to the recent decline in the stock price?
  • What would suggest better prices in the not too distant future for stockholders?
  • Would you be a buyer now?

Here’s what stocks do in the months just before a rate hike

Posted by & filed under Financial analysis, Governments & Regulators, Growth & Valuation.

Description: NEW YORK (MarketWatch) — It seems increasingly clear that the Federal Reserve’s first rate hike since 2006 is now just months away, and that is making investors nervous. But should it?

Source: MoneyWatch.com

Date: March 18, 2015

Link: http://www.marketwatch.com/story/heres-what-stocks-do-in-the-months-just-before-a-rate-hike-2015-03-06

Questions for Discussions:

  • What does the report suggest is the typical market response to rate increases?
  • Why is there so much investor concern over a rate increase at this time?

Here’s a Look at How the Dollar Is Clobbering Other Currencies Around the World

Posted by & filed under Economic Analysis, Governments & Regulators, Growth & Valuation.

Description: A fantastic new report from Bloomberg Briefs examines the state of currency markets around the world. This graphic offers a nice visualization of how different currencies have been getting clobbered against the dollar during the past year. As you can see, huge losers include the Russian ruble, the Norwegian krone, the Brazilian real, the Swedish krona, and of course the euro.

Source: Bloomberg.com

Date: March 18, 2015

Link: http://www.bloomberg.com/news/articles/2015-03-18/here-s-a-look-at-how-the-dollar-is-clobbering-other-currencies-around-the-world

Questions for discussion:

  • How has the dollar’s performance affected borrowing, importing and exporting?
  • How has it affected American firms with large foreign-based operations and revenues?

Valeant Inc lands Salix Ltd with knockout bid, but forced to pay more than expected

Posted by & filed under Company Analysis, Financial analysis, Financial Planning, Growth & Valuation.

Description: Valeant Pharmaceuticals scored a knockout punch Monday in the bidding war for Salix Pharmaceuticals Ltd., even though a frenetic M&A race in the pharmaceutical industry forced it to pay more than it originally hoped.

Source: FinancialPost.com

Date: March 16, 2015

Link: http://business.financialpost.com/2015/03/16/valeant-inc-lands-salix-ltd-with-knockout-bid-but-forced-to-pay-more-than-expected/

Questions for discussion:

  • Why are pharma mergers and acquisitions like this one taking place, according to the report?
  • Do you think it is a good deal for both companies?

Stocks get crushed on strong dollar

Posted by & filed under Growth & Valuation, Market Analysis.

Description: Jim Awad, Chairman of Plimsoll Mark Capital, explains why a strong dollar led to the Dow tanking 333 points and what effect it might have on the Federal Reserve raising interest rates.

Source: CNNMoney.com – video report

Date: March 10, 2015

Link: http://money.cnn.com/video/investing/2015/03/10/stock-market-crushed-dow-down-333-strong-dollar.cnnmoney/

Questions for Discussions:

  • What does Jim Awad suggest is at the heart of investor concerns?
  • Do you agree with his analysis and recommendations?

GM announces $5 billion stock buyback

Posted by & filed under Company Analysis, Financial analysis, Financial Planning, Governments & Regulators, Growth & Valuation, Management Issues.

Description: CEO Mary Barra outlined the stock buyback, as well as a new comprehensive capital allocation framework meant to put more money in shareholders’ pockets.

Source: Fortune.com – video report

Date: March 09, 2015

Link: http://for.tn/1A9zcfr

Questions for Discussions:

  • Why did GM go ahead with the buyback?
  • Do you think it was a good decision for the company?
  • What are the tradeoffs of this maneuver?

Why investors should worry about this bad sign for retailers

Posted by & filed under Financial analysis, Governments & Regulators, Growth & Valuation, Management Issues.

Description: Large-cap retail stocks are outperforming the broader stock market this year, as falling unemployment means more Americans are willing to spend money. But investors seem to be ignoring a decline in earnings estimates, as management at several top companies have given conservative guidance.

Source: MoneyWatch.com

Date: March 10, 2015

Link: http://www.marketwatch.com/story/why-investors-should-worry-about-this-bad-sign-for-retailers-2015-03-10?dist=afterbell

Questions for Discussions:

  • What is the basis for concern according to the report?
  • Do you agree with this assessment?

Investors Bet $100,000 Cancer Drug Prices Are Here to Stay

Posted by & filed under Financial Planning, Governments & Regulators, Growth & Valuation, Management Issues.

Description: (Bloomberg) — President Barack Obama, prominent cancer doctors and health insurers are all warning about the need to control the surging prices of new drugs.

Source: Bloomberg.com

Date: March 10, 2015

Link: http://www.bloomberg.com/news/articles/2015-03-09/investors-warm-to-100-000-cancer-drugs-after-21-billion-deal

Questions for discussion:

  • Why are investors confident that insurers will pay high prices for certain drugs?
  • Is there a way to control rising prices?