Canada’s very own private-equity giant Onex quietly tops returns of big-name U.S. rivals

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

Description: The best performer of the biggest publicly traded private-equity firms this year won’t be found among U.S. giants such as Blackstone Group LP or KKR & Co. The leader is Canada’s own contender, the dark horse in the race, Gerry Schwartz’s Onex Corp. With a 15% stock gain, Onex is running well ahead of Blackstone’s 3.8%. KKR and Carlyle Group LP are both down more than 2% while Apollo Global Management LLC has dropped 15%.

Source: FinancialPost.com

Date: June 26, 2014

Link: http://business.financialpost.com/2014/06/26/onex-corp-gerry-schwartz/

Questions for discussion:

  • What is the formula used by Onex and other take-over firms?
  • Why do you suppose Onex has outperformed others in the same business?

Investors like Amazon 3D phone chatter

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

Description: The only thing cooler than a 3D phone? A drone delivering it to you. Amazon stock enjoyed a nice pop after announcing (via YouTube) that it will unveil a new product — likely a 3D phone — on June 18.

Source: CNNMoney.com – video report

Date: June 06, 2014

Link: http://money.cnn.com/video/investing/2014/06/06/investing-the-buzz-amazon-3d-smartphone-drone-delivery.cnnmoney/index.html

Questions for Discussions:

  • Summarize the reasons provided in this report for Amazon stock price moves.
  • Do you think Amazon stock is over-valued?

Why stock market bubble talk is just hot air

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

Description: Fortune’s Stephen Gandel discusses why it’s not time to bail on the stock market just yet.

Source: Fortune.com – video report

Date: June 06, 2014

Link: http://fortune.com/video/2014/06/06/why-stock-market-bubble-talk-is-just-hot-air/

Questions for discussion:

  • Summarize the explanations presented in this report.
  • Do you agree with Stephen Gandel’s assessments and projections?

The ticking time bomb in Europe’s latest economic stimulus

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

Description: Europe needs to get real about its so-called “zombie bank” problem and take the hits needed to unclog its lending machine.

Source: Fortune.com

Date: June 06, 2014

Link: http://fortune.com/2014/06/06/europe-economy-banks-lending/

Questions for Discussions:

  • What are the problems facing European banks, according to the report?
  • What are the suggested solutions?

Q&A: Travis Kalanick on Uber’s New $17 Billion Valuation

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

Description: Uber Technologies, the company that allows people to order taxis and private town cars via a smartphone app, has just raised $1.2 billion in a fundraising round that values the four-year-old startup at an astounding $17 billion.

Source: Businessweek.com

Date: June 06, 2014

Link: http://www.businessweek.com/articles/2014-06-06/q-and-a-travis-kalanick-on-ubers-new-17-billion-valuation#r=hp-ls

Questions for Discussions:

  • Summarize the risks and potential returns for the company as presented in the report?
  • Do you think the firm represents a good opportunity for investors?

Bond Rally Is Squeezing the Trading at Big Banks

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

Description: Wall Street’s biggest firms this year made an extraordinary wager that they probably now regret.

Source: NYTimes.com

Date: June 05, 2014

Link: http://dealbook.nytimes.com/2014/06/05/bond-boom-is-squeezing-the-trading-at-big-banks/?ref=business

Questions for discussion:

  • Why did the big banks take the position they did earlier in the year?
  • Can they be blamed for their thinking?
  • How should they go forward in terms of bonds?

Tesla debt: An electric lemon?

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

Description: Tesla debt may have gotten a junk bond rating from Standard and Poor due to concerns about its ‘niche’ market status. But investors in Tesla stock still have faith in Elon Musk.

Source: CNNMoney.com – video report

Date: May 28, 2014

Link: http://money.cnn.com/video/investing/2014/05/28/n-tesla-electric-cars-elon-musk-bonds.cnnmoney/index.html

Questions for Discussions:

  • Explain the differences in thinking by Tesla bond and equity holders about the company and risk perceptions?
  • Do you think Tesla bonds rank as “junk”?

How Does Uber Make Money?

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

Description: With Uber’s cars now operating in 130 cities worldwide and the company looking to raise another round of financing that could value it at more $10 billion, Bloomberg’s Willem Marx asks The Big Question: How does Uber make its money? (Source: Bloomberg)

Source: Bloomberg.com – video report

Date: May 30, 2014

Link: http://www.bloomberg.com/video/how-does-uber-make-money-SLy8gcRXTHGAnII9oVC1ow.html

Questions for discussion:

  • How does Uber make money?
  • What are the financial risks to lenders?
  • How would you go about deciding a fair rate for lending?

Ballmer’s $2 Billion Offer Wins Clippers Bidding

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

Description: Former Microsoft Corp. (MSFT) Chief Executive Officer Steve Ballmer bought the Los Angeles Clippers for a record $2 billion as the wife of Donald Sterling pushed through the sale without gaining the approval of the embattled owner.

Source: Bloomberg.com

Date: May 30, 2014

Link: http://www.bloomberg.com/news/2014-05-30/ballmer-s-2-billion-offer-said-to-win-clippers-bidding.html

Questions for Discussions:

  • Do you think the price was fair to both parties to the deal?
  • How should a sports franchise be evaluated from a financial point of view?