Reluctant Bulls Key for Birinyi Amid Record S&P 500 Rally

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

Description:   The Standard & Poor’s 500 Index (SPX)’s record rally probably has another year to go as investors give up their pessimism and buy, according to Laszlo Birinyi, one of the first money managers to tell clients to buy before the bull market began.

Source:  Bloomberg.com

Date: Mar 29, 2013

Link: http://www.bloomberg.com/news/2013-03-28/birinyi-says-buy-mining-technology-shares-as-bull-ages.html

Questions for Discussions:

  • What is the logic behind Birinyi’s thinking and advice to investors?
  • Do you agree with his assessments?

 

Nike soars – It’s gotta be the shoes!

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

Description: Shares of Nike surge after the athletic apparel retailer reported better-than-expected earnings, despite worries about weak sales in China.

Source: CNNMoney.com – video report

Date: Mar 22, 2013

Link: http://money.cnn.com/video/investing/2013/03/22/investing-the-buzz-nike.cnnmoney/

Questions for Discussions:

  • Why was Nike expected to perform poorly in the last quarter?
  • What is the explanation for its success?
  • What do these financial results suggest about consumer spending and the economy?
  • Are there other companies that you think might be worthwhile reexamining from a financial analysis point of view?

 

How to Play Lululemon

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

Description: Option Pit Mentoring COO Mark Sebastian discusses his Lululemon trade. He speaks on Bloomberg Television’s “Lunch Money.” (Source: Bloomberg)

Source:  Bloomberg.com – video report

Date: Mar 22, 2013

Link:  http://bloom.bg/11sB7QT#ooid=JoZDhlYTrKI2yBsgQJNQoRU7RdG3LP_n

Questions for discussion:

  • Explain the play in Lululemon presented in the report and the reasons for this thinking?
  • Do you agree with this strategy?
  • How would you evaluate the impact on Lululemon share vale?

 

New Critical Warning as 2013 shocker looms

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

Description:  (MarketWatch) — Yes, another dark “shocker” before the end of the year, an unexpected “black swan.” And sadly for Fed Chairman Ben Bernanke — who hopes his “I saved America from economic collapse” illusion stays intact till he leaves office — he’s not going to get a dream ending to his Fed career.

Source:  Marketwatch.com

Date: Mar 23, 2013

Link: http://www.marketwatch.com/story/new-critical-warning-as-2013-shocker-looms-2013-03-23?link=MW_Nav_MA

Questions for Discussions:

  • What is the basis for concern in markets?
  • Do you agree with the analysis?
  • What is your prediction for future Fed and government decisions?
  • How do you think markets will react?

 

When David Einhorn Talks, Markets Listen—Usually

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

Description: It was shaping up as an especially good episode of The David Einhorn Show. The founder of the $8.8 billion hedge fund Greenlight Capital was speaking in May 2012 at his favorite venue, the Ira W. Sohn Investment Research Conference, held that year at New York’s Lincoln Center, to a packed audience of money managers eager to hear which stocks were in his cross hairs.

Source: Businessweek.com

Date: Mar 21, 2013

Link: http://www.businessweek.com/articles/2013-03-21/when-david-einhorn-talks-markets-listen-usually#r=hp-sf

Questions for Discussions:

  • Summarize the highlights in this report.
  • Why do think the response to David Einhorn’s short calls are more pronounced?
  • What do you think of the risks associated with following the advice of celebrated investment gurus such as David Einhorn?

Fear Index Says This Stock Market Reminiscent of October 2007

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

Description:   The euphoria among stock advisors and investors alike seems to be increasing as key stock indices proceed to move into uncharted territories. I see it all as a bearish indicator. Just look at the chart below of the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), often referred to as the “fear index:”

Source:  Profitconfidential.com

Date: Mar 13, 2013

Link: http://www.profitconfidential.com/stock-market/fear-index-says-this-stock-market-reminiscent-of-october-2007/?subid=taboola

Questions for Discussions:

  • Summarize the technical analysis presented in the report.
  • Do you agree with the assessment?

 

Jim Rogers: Soaring Dow a poor indicator

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

Description:  Famed investor Jim Rogers says recent gains in international markets is a poor indicator of global economic health.

Source: CNNMoney.com – video report

Date: Mar 15, 2013

Link: http://money.cnn.com/video/news/2013/03/15/news-jim-rogers-currency-inflation.cnnmoney/

Questions for Discussions:

  • What is the reason Jim Rogers believes the current run up in the Dow is not a good predictor of a better future economy?
  • Do you agree with his analysis and concerns, once interest rates inevitably begin to rise?
  • What happens when interest rates fail to satisfy savers?

 

Dividend not in CGI Group’s plans: CEO

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

Description: Paying a dividend to shareholders is not the right use of its money, CGI Group (CGI-T 16.44 -0.05 -0.3%) chief executive Michael Roach tells BNN, as the company, which was recently crowned Canada’s biggest technology firm, builds up funds for potential acquisitions.   CGI shareholders, along with the stockholders of most publicly-traded companies, have raised their voices recently in favour of dividends as investors look for profits from high-paying dividend companies.

Source:  BNN.ca – video report

Date: Mar 15, 2013

Link:  http://watch.bnn.ca/headline/headline-march-2013/headline-march-14-2013/#clip884637 http://watch.bnn.ca/headline/headline-march-2013/headline-march-14-2013/#clip884643 http://watch.bnn.ca/headline/headline-march-2013/headline-march-14-2013/#clip884642

Questions for discussion: 

  • Summarize the highlights in this report with respect to the growth of the firm through acquisitions and the required cash to facilitate such growth.
  • Do you think the strategy is appropriate in today’s marketplace?

Spinoff of Time Inc. Rattles Employees

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

Description:  It was an elite reception at a glittery Manhattan setting: prominent media figures like Gayle King and Lesley Stahl gathered on the 10th floor of the Time Warner Center on Monday night to toast Sheryl Sandberg, the Facebook executive who recently released a book about her life.

Source:  NYTimes.com

Date: Mar 13, 2013

Link: http://www.nytimes.com/2013/03/14/business/media/spinoff-of-time-inc-rattles-employees.html?_r=0

Questions for Discussions:

  • What are the key financial points presented in this report.
  • How significant is the current debt level of the firm?
  • What financial considerations motivated the spinoff?
  • Do you think the new entity will be able to generate sufficient cash flow independently?

How Big Losses Distorted JPMorgan’s Sense of Reality

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

Description: Time-tested wisdom on Wall Street is that when a trade you made is losing money, you should swallow hard and get out of the position before things get even worse. Cut your losses. But when JPMorgan Chase (JPM) started losing big on its London Whale trade last year, traders and executives all the way up to the chief executive officer seemingly had trouble facing the painful reality.

Source: Businessweek.com

Date: Mar 15, 2013

Link: http://www.businessweek.com/articles/2013-03-15/how-big-losses-distorted-jpmorgans-sense-of-reality#r=hpt-ls

Questions for Discussions:

  • Summarize the analysis of what went wrong and why,  as presented in this report.
  • What message is there for financial managers?