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

Description: A number of hedge funds including Hayman Capital and Glenview Capital are buying up JCPenney stock in the hopes of turning around the troubled retailer.

Source: CNNMoney.com – video report

Date: Sep 04, 2013

Link: http://money.cnn.com/video/investing/2013/09/04/investing-the-buzz-jcp-glenview-hayman-capital.cnnmoney/index.html

Questions for Discussions:

  • What do you think these new buyers of stock see in the company?
  • How does the market generally respond to hedge fund investment in a declining firm?
  • What do you think the general response will be this time?

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

Description: Fewer jobs were added than expected in August, which may be a sign that the economy is not strong enough yet for the Fed to start tapering its monthly asset purchases.

Source: CNNMoney.com – video report

Date: Sep 06, 2013

Link: http://money.cnn.com/video/investing/2013/09/06/investing-the-buzz-us-bonds-taper-jobs-report.cnnmoney/index.html

Questions for Discussions:

  • Explain the connection between bond prices and the interest rates set by the Fed?
  • Do you think bond prices will rise, fall, or stay the same for the next few months?

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

Description: In 2002, at the age of 18, Saul Garlick started a program to fight poverty by building schools in rural South Africa.

Source: NYTimes.com

Date: July 10, 2013

Link: http://www.nytimes.com/2013/07/11/business/smallbusiness/a-social-entrepreneurs-dilemma-nonprofit-or-for-profit.html?ref=smallbusiness

Questions for Discussions:

  • What are the financial advantages and disadvantages of the switch to for-profit in this case?
  • What would your advice be?

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

Description: Employees of the big box store are planning a national day of protest for higher wages. Economist Richard Vedder on why we’ll all be in trouble if they get their way.

Source: Thedailybeast.com

Date: Sep 05, 2013

Link: http://www.thedailybeast.com/articles/2013/09/05/why-we-ll-be-better-off-if-the-walmart-protests-fail.html

Questions for Discussions:

  • How would a jump in minimum wage to $12/hour affect companies now paying substantially lower wages?
  • How would financial planners likely respond to an increase in hourly rates?
  • What are the arguments for and against confronting employers like Wal-Mart?

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

Description: Revolutions, wars and the emergence of totalitarian movements are rarely just about grand ideals, political philosophy or theological disputes.

Source: Telegraph.co.uk

Date: Sep 04, 2013

Link: http://www.telegraph.co.uk/finance/economics/10284077/Syria-needs-liberal-capitalism-not-missiles.html

Questions for Discussions:

  • Summarize the political economic arguments presented in this report.
  • Do you agree with the assessment?
  • What role do western investors play in this situation?

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

Description: Pimco’s Mohamed El-Erian discusses Syria’s impact on oil prices, Chancellor Merkel’s recent statements about Greece and U.S. Treasury yields.

Source: CNNMoney.com – video report

Date: August 28, 2013

Link: http://money.cnn.com/video/news/2013/08/28/n-cmw-pimco-el-erian-syria-oil-merkel-bond-yields.cnnmoney/index.html

Questions for Discussions:

  • Summarize the reasons for uncertainty in markets today according to El-Erian.
  • How do you think oil prices will behave in the near future?

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

Description: Shares of Verizon soar on reports that the company might make a deal with UK-based partner Vodafone to finally buy out its 45% stake in Verizon Wireless.

Source: CNNMoney.com – video report

Date: August 29, 2013

Link: http://money.cnn.com/video/investing/2013/08/29/investing-the-buzz-verizon-wireless-deal-vodafone.cnnmoney/index.html

Questions for Discussions:

  • Why would Verizon want to buy Vodafone’s shares?
  • Is the debt a concern?
  • Do you think a drop in dividends would be acceptable to shareholders if the company became more successful with growth?

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

Description: Microsoft executives faced an unusual challenge in April when a $12 billion hedge fund, ValueAct, announced that it had bought a nearly $2 billion stake in the company with the intention of shaking things up.

Source: NYTimes.com – video report

Date: August 30, 2013

Link: http://dealbook.nytimes.com/2013/08/30/with-huge-war-chests-activist-investors-tackle-big-companies/?ref=business

Questions for Discussions:

  • Summarize the strategic thinking of “activist” investors.
  • Do you think that their involvement in management of firms is a good thing for the firms or for investors?

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

Description: Considering the trillions of dollars of Treasury bonds the federal government has been selling to pay for its budget deficits, you’d expect there to be plenty of them for use by dealers in the financial markets. Instead there’s a drought, one that’s likely to get worse before it gets better, and it’s already interfering with the functioning of what an adviser to the Treasury Department in a recent document called “the silently beating heart of the market.”

Source: Businessweek.com

Date: August 29, 2013

Link: http://www.businessweek.com/articles/2013-08-29/a-treasury-shortage-squeezes-the-heart-of-the-market#r=nav-fst

Questions for Discussions:

  • Explain the role of treasury and the affect it is currently having on markets, according to the report.

 

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

Description: Looking for the highest yield plays out there? Business Day asks investing experts to outline what investors should look for when choosing a dividend stock, ETFs, and top paying energy shares.

Source: BNN.ca – video report

Date: Aug 30, 2013

Link: http://www.bnn.ca/News/2013/8/30/The-hunt-for-yield.aspx

Questions for Discussions:

  • Describe the investing strategy suggested by Leslie Lundquist.
  • What are the primary metrics investors should consider warnings that the investment is problematic?