Harry Winston to Use Swatch Cash for Diamonds Purchases

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

Description:  Harry Winston Diamond Corp. (HW)’s $1 billion sale of a luxury unit to Swatch Group AG (UHR) provides the cash to invest more in diamond mining, a business that last year was more than twice as profitable as jewelry.

Source:  Bloomberg.com

Date: Jan 15, 2013

Link: http://www.bloomberg.com/news/2013-01-15/harry-winston-to-use-swatch-cash-for-diamonds-purchases.html

Questions for Discussions:

  • Explain the logic of selling the retail division to Swatch in order to finance the development of more mining.
  • How else could the firm have financed more mining?
  • Do you think the decision was a good one?
  • Would you be an investor in either firm today?

Dell buyout talks advance, Silver Lake lines up banks-sources

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

Description: Talks to take Dell Inc private are at an advanced stage with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters, propelling shares of the No. 3 computer maker 7 percent higher.

Source: Reuters.com

Date: Jan 16, 2013

Link:  http://www.reuters.com/article/2013/01/16/us-dell-deal-idUSBRE90E0XK20130116

Questions for Discussions:

  • Explain why the stock value has risen on this news.
  • Is it a good deal for the buyers?

 

 

 

No showtime at Apollo’s U. of Phoenix

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

Description: Shares of for profit education owners sank after University of Phoenix owner Apollo reported a decline in enrollment.

Source: CNNMoney.com.com – video report

Date: Jan 09, 2013

Link: http://money.cnn.com/video/investing/2013/01/09/investing-education-phoenix-apollo.cnnmoney/

Questions for Discussions:

  • Why has Apollo’s stock fallen recently?
  • Explain their business model and whether you think it is sustainable?
  • Would you be an investor in the stock?

 

The battle over Herbalife

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

Description: An inside look at Herbalife’s business model and the $1 billion bet hedge fund manager Bill Ackman has against it.

Source: CNNMoney.com – video report

Date: Jan 11, 2013

Link: http://money.cnn.com/video/news/2013/01/11/n-herbalife-bill-ackman-queens.cnnmoney/

Questions for Discussions:

  • Compare the organizational structure of Herbalife to a pyramid selling organization.
  • Do you believe Herbalife is a conventional distributor of products?

 

 

What’s at the Center of the Debate Over Herbalife

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

Description: In the wake of the bombshell announcement that Daniel S. Loeb’s Third Point has taken an 8.9 percent stake in Herbalife after the company’s shares were shorted by William A. Ackman of Pershing Square, the question is: Which very rich hedge fund manager is right?

Source: NYTimes.com

Date: Jan 10, 2013

Link:  http://dealbook.nytimes.com/2013/01/10/whats-at-the-center-of-the-debate-over-herbalife/?ref=business

Questions for Discussions:

  • Summarize the arguments presented by each side.
  • What do you believe is really the case for Herbalife?

 

Second terms’ impact on stock market

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

Description:  Does the stock market perform any differently during second presidential terms?

Source:  Marketwatch.com

Date: Jan 11, 2013

Link: http://www.marketwatch.com/story/second-terms-impact-on-stock-market-2013-01-11?siteid=nwtwk

Questions for Discussions:

  • How does the article answer the question posed?
  • What is your opinion of the assessment?
  • How should investors weigh the information in this report?

 

A Goldman Sachs Trading Team Sidesteps the Volcker Rule

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

Description:  Sitting onstage in Washington’s Ronald Reagan Building? in July, Lloyd Blankfein said Goldman Sachs Group (GS) had stopped using its own money to make bets on the bank’s behalf. “We shut off that activity,” the chief executive officer told more than 400 people at a lunch organized by the Economic Club of Washington, slicing the air with his hand. The bank no longer had proprietary traders who “just put on risks that they wanted” and didn’t interact with clients, he said.

Source:  Businewssweek.com

Date: Jan 10, 2013

Link: http://www.businessweek.com/articles/2013-01-10/a-goldman-sachs-trading-team-sidesteps-the-volcker-rule#r=nav-fst

Questions for Discussions:

  • What is the “Volker rule”?
  • What does it attempt to control?
  • Do you think Goldman Sachs is attempting to sidestep the Volker rule?

How Does Amazon Survive on Such Tight Margins?

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

Description:  Cory Johnson looks at how Amazon.com makes money. He speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Source: Bloomberg.com – video report

Date: Jan 03, 2013

Link:  http://bloom.bg/UqidDB

Questions for Discussions:

  • Explain the financial strategy Amazon is using to build its business?
  • Do you think it is a sustainable strategy?
  • Would you be an investor in Amazon?

El-Erian: Look for Bottom-Up Housing Opportunities

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

Description: Pimco CEO Mohamed El-Erian discusses politicians can do to bring the labor market to “escape velocity’ and how to invest off of the December jobs report. He speaks on Bloomberg Television’s “In The Loop.”

Source: Bloomberg.com – video report

Date: Jan 04, 2013

Link: http://bloom.bg/WqRpl8#ooid=x1N2wyODrh7cAvcnvu0a95OK800KKZDU

Questions for Discussions:

  • Summarize the analysis presented by El-Erian in this report.
  • Do you you agree with his advice to investors?

Apple’s Stock: Analysts’ Price Targets Vary Wildly

Posted by & filed under Company Analysis, Industry Analysis.

Description:  For years, analysts could forecast Apple’s (AAPL) stock movements with a single word: up. The company’s hit parade of new products like the iPhone and iPad led to record-breaking quarterly profits and expectations that Apple could become the first U.S. corporation with a $1 trillion market value. Bullish analysts saw their own careers climb in tandem, as investors who bought the stock on their advice captured huge returns.

Source:  Businewssweek.com

Date: Jan 03, 2013

Link: http://www.businessweek.com/articles/2013-01-03/apples-stock-analysts-price-targets-vary-wildly#r=read

Questions for Discussions:

  • Do you agree with the analysis in this report?
  • What would you advise investors to at this time – those who own Apple and those who are considering buying in?