Who Needs Banks? PayPal and Lending Club Want to Make Small Business Loans

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

Description: Lots of companies have tried to use technology to improve small business lending with data, collecting information about merchants from their social media profiles, online accounting software, and reviews to help lenders decide whether to make loans. Alternative companies such as OnDeck and Kabbage have succeeded at increasing loan volumes and speeding approval times. But their loans usually cost more than bank loans or credit cards—sometimes much more.

Source: Businessweek.com

Date: Mar 20, 2014

Link: http://www.businessweek.com/articles/2014-03-20/who-needs-banks-paypal-and-lending-club-want-to-make-small-business-loans#r=nav-fst

Questions for discussion:

  • Is there anything wrong with these lending arrangements?
  • What are the risks associated with these loans?
  • Do you think the interest rates adequately reflect the real risks to lenders?

Why the bull market could end tomorrow

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

Description: One smart prognosticator thinks the five-year run will soon come to a close.

Source: Fortune.com

Date: Mar 21, 2014

Link: http://finance.fortune.cnn.com/2014/03/21/why-the-bull-market-could-end-tomorrow/?iid=SF_F_River

Questions for discussion:

  • What is the basis for the argument?
  • Do you agree with the analysis?

Bugatti-Driving 26-Year-Old Tied to Penny-Stock Website

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

Description: Short-sellers and stock promoters have puzzled for years over who operated one of the largest penny-stock websites. A U.S. lawsuit points to a Bugatti-driving 26-year-old from Montreal.

Source: Bloomberg.com

Date: Mar 17, 2014

Link: http://www.bloomberg.com/news/2014-03-17/bugatti-driving-26-year-old-tied-to-penny-stock-website.html

Questions for Discussions:

  • How did the fraud to pump and dump work?
  • What are the signs that the source is less than genuine?
  • How should investors respond to this article?

How to take the bull market by the horns

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

Description: Investment strategists say the fundamentals of the stock market are still strong and gains are possible with the right buying strategy.

Source: CNNMoney.com – video report

Date: Mar 10, 2014

Link: http://money.cnn.com/video/investing/2014/03/10/investing-bull-market-five-year-anniversary.cnnmoney/index.html

Questions for Discussions:

  • What does this report have to say to investors?
  • Do you agree?

This company loves the snow

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

Description: Let it snow. Douglas Dynamics, a maker of snow plows, loves the winter weather. It reported strong earnings and its stock (ticker symbol PLOW) is up on the news.

Source: CNNMoney.com – video report

Date: Mar 05, 2014

Link: http://money.cnn.com/video/investing/2014/03/11/buzz-douglas-dynamics-snow-plows.cnnmoney/index.html

Questions for Discussions:

  • Is it likely the firm would experience increases year over year or is this season a “one-off” due to unusual wintery weather?
  • How should investors analyze the financials of this sort of firm?

Dividend Stocks Fall on Rising Rate Forecast: EcoPulse

Posted by & filed under Company Analysis, Economic Analysis, Financial analysis, Governments & Regulators.

Description: Shares of high-dividend-yielding companies are trading near the lowest level in almost three years relative to the market, as the prospect of higher interest rates makes these stocks less attractive to investors.

Source: Bloomberg.com

Date: Mar 14, 2014

Link: http://www.bloomberg.com/news/2014-03-14/dividend-stocks-fall-on-rising-rate-forecast-ecopulse.html

Questions for discussion:

  • Summarize the reasons for investor rotation into and out of these high-dividend paying stocks?
  • Do you agree with the analysis and predictions presented?

Puerto Rico Gets a Break With Rates on Its Bonds

Posted by & filed under Economic Analysis, Financial analysis, Governments & Regulators.

Description: Puerto Rico is expected to sell roughly $3 billion in bonds on Tuesday at interest rates that are considerably lower than many investors in the municipal market had expected, providing a rare bright spot for the cash-squeezed island.

Source: NYTimes.com

Date: Mar 10, 2014

Link: http://dealbook.nytimes.com/2014/03/10/puerto-rico-gets-a-break-with-rates-on-its-bonds/?ref=economy

Questions for discussion:

  • What are the concerns to Puerto Rico bondholders?
  • Are the current rate offerings “good enough” to cover the risk, in your opinion?

The Jeep Plant Mitt Romney Said Was Moving to China Is Hiring 1,000 Workers in Ohio

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

Description: Remember the closing days of the 2012 presidential campaign when Mitt Romney ran that explosive ad suggesting Chrysler was going to stop building Jeeps in Ohio and move production to China?

Source: Businessweek.com

Date: Mar 14, 2014

Link: http://www.businessweek.com/articles/2014-03-14/the-jeep-plant-mitt-romney-said-was-moving-to-china-is-hiring-1-000-workers-in-ohio

Questions for Discussions:

  • What is the message in this report for investors?
  • Why would Chrysler be more likely to increase production from this existing plant in Ohio?
  • What are the constraints on deciding plant location investments?

How Ukraine crisis affects your money

Posted by & filed under Economic Analysis, Financial analysis, Governments & Regulators, Market Analysis.

Description: Stocks, energy prices, commodities and gold are a few of the ways the escalating tensions in Ukraine and Russia could affect your finances.

Source: CNNMoney.com – video report

Date: Mar 03, 2014

Link: http://money.cnn.com/video/investing/2014/03/03/investing-ukraine-russia-global-markets-stocks-energy-commodities-grains-gold.cnnmoney/index.html

Questions for Discussions:

  • How does the Ukraine crisis affect economic and business activity, according to the report?
  • How have investors reacted to events?

Should Icahn shut up about eBay?

Posted by & filed under Governments & Regulators, Management Issues.

Description: Shares of eBay are near an all-time high even though Carl Icahn keeps attacking the company for not spinning off PayPal. So should Icahn stay on the warpath or stop talking?

Source: CNNMoney.com – video report

Date: Mar 05, 2014

Link: http://money.cnn.com/video/investing/2014/03/05/buzz-ebay-icahn.cnnmoney/index.html

Questions for Discussions:

  • Why is Carl Icahn unhappy with eBay?
  • Do you believe he is justified in calling for a sell-off of Pay-Pal?
  • Would you be a buyer of eBay today?