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

Description: Economist Julia Coronado of BNP Paribas says the market had been wrong to assume the Federal Reserve would begin to taper.

Source: CNNMoney.com – video report

Date: Sep 19, 2013

Link: http://money.cnn.com/video/investing/2013/09/19/investing-fed-no-taper-flip-flop.cnnmoney/index.html

Questions for Discussions:

  • Why did the market react as it did this week?
  • What data will likely trigger tapering by the Fed?

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

Description: Shares of Darden Restaurants, parent company of Olive Garden and Red Lobster, plunged after the company’s sales and earnings missed forecasts.

Source: CNNMoney.com – video report

Date: Sep 20, 2013

Link: http://money.cnn.com/video/investing/2013/09/20/investing-the-buzz-darden-restaurants.cnnmoney/index.html

Questions for Discussions:

  • What is the greater economic concern suggested by the drop in earnings at Darden?
  • Do you think the drop in share price offers a good entry opportunity for investors?

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

Description: BlackBerry says it will cut 4,500 jobs across its operations, and expects to report a second-quarter loss of between $950 million to $995 million US when it issues its financial results next week.

Source: CBC.ca – video report

Date: Sep 20, 2013

Link: http://www.cbc.ca/player/News/TV%2BShows/The%2BNational/Technology%2B&%2BScience/ID/2407696489/

Questions for discussion:

  • Summarize the collapse of BB share value.
  • Is there any strategy the company can undertake to survive?
  • How should the company estimate its value for acquisition or merger with another firm?
  • How should investors deal with the stock?

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

Description: HJ Heinz Co.’s longtime leader Bill Johnson stood in the Veranda ballroom at the Four Seasons Hotel San Francisco, addressing the ketchup maker’s top 50 executives for the last time. Around the corner in a smaller room, his successor as chief executive officer, Bernardo Hees, waited to tell some of the same managers whether they still had jobs.

Source: Bloomberg.com

Date: Sep 18, 2013

Link: http://www.bloomberg.com/news/2013-09-18/buffett-s-9-heinz-dividend-means-3g-cutting-jobs-mini-fridges.html

Questions for Discussions:

  • Describe the changes brought about at Heinz and the reasons for them.
  • What does this say about Buffett’s approach to acquisitions?

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

Description: Postmaster General Patrick Donahoe said Thursday his agency is in “the midst of a financial disaster” and may need an emergency increase in postage rates to keep operating.

Source: AP.com

Date: Sep 19, 2013

Link: http://bigstory.ap.org/article/postmaster-says-usps-may-need-emergency-rate-hike

Questions for Discussions:

  • What is the problem at the USPS?
  • Why is it important to keep the service going at a low cost to users?
  • Is a general rate hike a good solution or should management be looking at other ways to fix the problems?

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

Description: Despite concerns that Apple is no longer innovating, investors (including Carl Icahn) can’t ignore the attractive valuation and $147 billion in cash.

Source: CNNMoney.com – video report

Date: Sep 10, 2013

Link: http://money.cnn.com/video/investing/2013/09/10/investing-the-buzz-apple-iphone.cnnmoney/index.html

Questions for Discussions:

  • Do you think Apple is a good buy, now that investors have further reduced valuations upon seeing the “new” iPhones?
  • Why is the cash on hand so attractive to investors?

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

Description: Investors flee the retailer after disappointing sales and earnings. Will ousted chairman George Zimmer try to take the company private?

Source: CNNMoney.com – video report

Date: Sep 12, 2013

Link: http://money.cnn.com/video/investing/2013/09/12/investing-buzz-mens-wearhouse-sales-george-zimmer-private.cnnmoney/index.html

Questions for Discussions:

  • Why do failing companies typically go private?
  • Do you think the firm needs new management in order to revive sales and profits?
  • Is George Zimmer a plus or minus to the firm?

Posted by & filed under Company Analysis, Economic Analysis, Governments & Regulators, Management Issues.

Description: When Barack Obama took office, the economy appeared to be on the brink of catastrophe. Despite the previous administrations commitment of several trillion dollars from every available arm of government to prop up the reeling financial system, nothing seemed to have worked. Banks were still hemorrhaging cash, and it was feared some would go down.

Source: Businessweek.com

Date: Sep 12, 2013

Link: http://www.businessweek.com/articles/2013-09-12/obamas-wall-street-bank-rescue-stabilized-economy-at-a-political-cost#r=hp-sf

Questions for Discussions:

  • Summarize the financial crisis inherited by the newly elected president and the choices he faced?
  • Do you agree with the analysis and conclusions?

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

Description: For companies looking to raise money through the debt markets, and the bankers egging them on, it seems no sum is too large.Verizon Communications shattered records and shook up the bond world on Wednesday when it sold $49 billion of investment-grade corporate debt at one time.

Source: NYTimes.com

Date: Sep 11, 2013

Link: http://dealbook.nytimes.com/2013/09/11/verizon-set-for-49-billion-debt-sale/?ref=business

Questions for Discussions:

  • What are the risks to borrowing such large sums of money by firms like Verizon and Verizon investors?
  • What are the risks for the lenders?
  • Do you think we will see a growing rate of M&A?

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

Description: In the course of its 21 year stock history, Starbucks (NASDAQ: SBUX  )  has doubled exactly 8 times. Minus the brief but major dips, the stock has taken off since ’08, and it has had a consistent rise in price for the last 6 years. Almost in a straight upward line. This year alone it has gone from $53.63 to $74 in share price (at the time of writing), a better than 30% gain. There are many reasons to believe it will double again, and why you should own it for the long term.?

Source: Fool.com

Date: Sep 10, 2013

Link: http://www.fool.com/investing/general/2013/08/29/starbucks-will-probably-double-again-be-there-when.aspx

Questions for Discussions:

  • Summarize the financial analysis of the stock.
  • Do you agree with the recommendation?
  • What are the risks involved?