History Suggests OPEC’s Days Could Be Numbered

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

Description: Could lower oil prices be the end of OPEC?

Source: Bloomberg.com

Date: March 10, 2015

Link: http://www.bloomberg.com/news/articles/2015-03-10/opec-beware-cartels-tend-to-end-in-tears

Questions for discussion:

  • Why are cartels under pressure when prices fall?
  • Do you think OPEC will fall apart?

$20 oil is possible: Jack Ablin, BMO Private Bank

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

Description: As market volatility continues, Jack Ablin, CIO of BMO Private Bank says one of the key drivers of the volatility – crude oil – could potentially hit $20 per barrel. And with the NASDAQ hitting 5,000 and the DOW and the S&P 500 reaching new highs, is Ablin still a long-term bull on U.S. equities? Or, is he finding new opportunities elsewhere? Find out when he speaks with Catherine Murray on Business Day.

Source: BNN.com – video report

Date: March 4, 2015

Link: http://www.bnn.ca/Video/player.aspx?vid=562652

Questions for Discussions:

  • What does Jack Ablin suggest is a basic guide to understanding commodities and equities?
  • Do you agree with his analysis and recommendations?

Pebble Time Kickstarter campaign raises more than US$4 million in three hours

Posted by & filed under Financial Planning, Growth & Valuation.

Description: The first smartwatch developed by Pebble Technology Corp. had one of the most successful Kickstarter campaigns ever, and now the company behind the trailblazing wearable device is back with the Pebble Time and a new pre-sale campaign that managed to raise US$4-million in only three hours, and US$1-million in just 31 minutes on Tuesday, making it the fastest project on Kickstarter to reach that milestone.

Source: FinacialPost.com – video report

Date: Feb 24, 2015

Link: http://business.financialpost.com/2015/02/24/pebble-time-kickstarter-campaign-surpasses-us3-million-in-an-hour-and-a-half/?__lsa=7a93-d933

Questions for Discussions:

  • Why do you suppose Pebble is such a huge success using Kickstarter?
  • How does Kickstarter help market a product while financing operations?
  • Is there a general rule to guide successful use of Kickstarter for financing a firm?

How to start a successful craft beer brewery

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

Description: Michael Kane went from poring over spreadsheets to pouring craft beer with his name on it.

Source: CNNMoney.com

Date: March 04, 2015

Link: http://money.cnn.com/2015/03/03/smallbusiness/craft-beer-startup-how-to-guide/index.html

Questions for Discussions:

  • What are the financial issues related to starting and operating a craft brewery?
  • Why is cash flow management so critical to success of the business?

When ‘Shark Tank’ deals fall apart: Why some entrepreneurs walk away when the cameras stop rolling

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

Description: NEW YORK — With the cameras rolling, Daniel and Stephanie Rensing accepted an offer from a Shark Tank investor. But after they had time to think about it, they changed their minds.

Source: FinancialPost.com

Date: Feb 27, 2015

Link: http://business.financialpost.com/2015/02/27/when-shark-tank-deals-fall-apart-why-some-entrepreneurs-walk-away-when-the-cameras-stop-rolling/?__lsa=7a93-d933

Questions for discussion:

  • What are the primary benefits sought by entrepreneurs on this show?
  • What are the warnings to entrepreneurs about going forward with financial partners?
  • Is there any downside to entrepreneurs after appearing on the show, regardless of any deals?

The Price of Oil Is About to Blow a Hole in Corporate Accounting

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

Description: (Bloomberg) — There’s one place in the world where oil is still $95 a barrel. On paper.

Source: Bloomberg.com

Date: March 04, 2015

Link: http://www.bloomberg.com/news/articles/2015-03-04/oil-at-95-a-barrel-discovered-in-sec-rules-on-reserves

Questions for discussion:

  • What are the implications of the current price for oil?
  • How should investors deal with this concern?

Goldman Sachs CEO on the benefits of low oil

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

Description: Goldman Sachs CEO Lloyd Blankfein says low oil prices are a net positive for the U.S. economy.

Source: CNNMoney.com – video report

Date: Feb 24, 2015

Link: http://money.cnn.com/video/investing/2015/02/24/lloyd-blankfein-goldman-sachs-oil.cnnmoney/

Questions for Discussions:

  • Why does Lloyd Blankfein believe lower oil prices are good for the economy?
  • How should investors be expected to respond if his understanding is correct?
  • What does he recommend financial planners do to deal with energy volatility?
  • In practice, what does this mean?

Is FOMO in tech startups driving valuation?

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

Description: Investor Bill Gurley says that investing too much money in new technologies may be cause for concern. Fortune’s Andrew Nusca and Erin Griffith discuss.

Source: Fortune.com – video report

Date: Feb 24, 2015

Link: http://for.tn/1BlY8qR

Questions for Discussions:

  • Summarize the concerns and the reasons for valuations.
  • How do you think investors should approach this issue?

Banks and bonds

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

Description: David Rosenberg, chief economist at Gluskin Sheff and Associates, explains why banks might be investing in U.S. bonds

Source: CBC.ca – video report

Date: Feb 23, 2015

Link: http://www.cbc.ca/player/News/ID/2655447343/

Questions for Discussions:

  • What does David Rosenberg suggest is happening in global markets today?
  • Why would U.S. bonds be attractive to banks?