Netflix Shows Facebook Is Not the Internet (Yet)

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

Description: Not so fast, kiddos. That’s what the Securities and Exchange Commission seems to be saying by warning Netflix (NFLX) that it may sue the company over a single Facebook (FB) update. The SEC’s warning centers on a July 3 Facebook post by Chief Executive Officer Reed Hastings that said Netflix customers streamed more than 1 billion hours of video the previous month. The day of the update, Netflix shares rose 6.2 percent.

Source: Businessweek.com

Date: Dec 07, 2012

Link:  http://www.businessweek.com/articles/2012-12-07/netflix-shows-facebook-is-not-the-internet-yet#r=nav-r-story

Questions for Discussions: 

  • Do you agree with the SEC decision?
  • How would you interpret “wide distribution” in today’s electronic world of instant electronic communications?

Why Hewlett-Packard Should Consider Breaking Up

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

Description:  The struggling technology company is an amalgam of businesses that could be worth more separately than they are together.

Source:  TheDailyBeast.com

Date: Dec 07, 2012

Link:  http://www.thedailybeast.com/articles/2012/12/07/why-hewlett-packard-should-consider-breaking-up.html

Questions for Discussions:

  • What are the arguments for breaking up and keeping H-P as it is today?
  • Do you think H-P should be broken up?
  • Would you be an investor in H-P today?

Velshi: Are we in a recession?

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

Description: Despite people feeling better about the economy, one prominent economist says we’ve already dipped into a recession.

Source: CNNMoney.com – video report

Date: Nov 29, 2012

Link: http://money.cnn.com/video/news/2012/11/29/n-velshi-recession-your-money-daily.cnnmoney/

Questions for Discussions:

  • Summarize the arguments for suggesting the US is already in recession?
  • What does each of the four indicators presented represent?
  • Do you believe the US economy is in recession?
  • How will government decisions affect these four indicators?
  • How should investors approach markets at this time?

What Awaits Mark Carney at the Bank of England

Posted by & filed under Economic Analysis, Financial Planning, Governments & Regulators, Growth & Valuation, Management Issues, Market Analysis.

Description: He has been touted as the best man for the job, but what exactly can Mark Carney expect when he takes on the role of governor at the Bank of England next year? DeAnne Julius, former MPC member, and Chris Giles, economics editor, lay out some of the challenges to the FT’s Seb Morton-Clark.

Source: FT.com – video report

Date: Nov 26, 2012

Link: http://video.ft.com/v/1990348794001/What-awaits-Mark-Carney-at-the-Bank-of-England

Questions for Discussions:

  • Summarize the issues and choices facing Mark Carney in his new position as governor of the BOE.
  • What direction do you think he will take and how will this affect investing strategies for individuals?

Why mortgage deduction may sail by fiscal cliff

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

Description:  Commentary: Initial reports from retailers are unreliable

Source: Marketwatch.com

Date: Nov 29, 2012

Link: http://www.marketwatch.com/story/why-mortgage-deduction-may-sail-by-fiscal-cliff-2012-11-29?dist=afterbell

Questions for Discussions:

  • What are the implications of a move to reform mortgage deductibility?
  • Do you think it can be phased out gradually without causing excessive stress on the housing recovery?
  • How might investments in home building companies be affected?
  • Do you think home ownership rates would be adversely affected in the long run?

 

Hedge Funds Find Tech Stocks in the Bargain Bin

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

Description: Fans of tech stocks and train wrecks got to combine their interests in 2012, as several high-profile companies endured an awful year: Shares of Facebook are off 31 percent, Zynga is down 73 percent, and Groupon is at negative 79 percent. Yahoo! struggled, Netflix fell, and even Apple had a rough stretch that lopped off a quarter of its value.

Source: Businessweek.com

Date: Nov 29, 2012

Link:  http://www.businessweek.com/articles/2012-11-29/hedge-fund-managers-find-tech-stocks-in-bargain-bin

Questions for Discussions:

  • What is motivating recent hedge fund buying sited in the article?
  • Do you think these stocks are wise choices for fund managers?
  • Do you think these stocks represent “value-investing”?

Fiscal Cliff Fears Drive Huge Spike in Dividend Payouts

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

Description:  Taxes on dividends may go up on January 1. And companies are shoveling dividends out to their shareholders before the taxman comes calling.

Source:  TheDailyBeast.com

Date: Nov 28, 2012

Link:  http://www.thedailybeast.com/articles/2012/11/28/fiscal-cliff-fears-drive-huge-spike-in-dividend-payouts.html

Questions for Discussions:

  • What is the history of dividend payouts and changing tax policies?
  • Do you think the payouts are good for the firms making them?
  • How might this affect their financial planning?
  • How will they be affected as interest rates rise?

 

Odds not in Hunger Games publisher’s favor

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

Description: Scholastic shares are lower on weaker-than-expected sales of Hunger Games and the looming fiscal cliff school budget cuts.

Source: CNNMoney.com – video report

Date: Nov 21, 2012

Link: http://money.cnn.com/video/investing/2012/11/21/investing-buzz-scholastic-hunger-games-fiscal-cliff.cnnmoney/

Questions for Discussions:

  • Explain the reasons for the stock market decline of Scholastic?
  • Do you think this stock represents a good speculative play on how the “cliff” will eventually be resolved?

Cyber Monday goes mobile

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

Description: Online shopping deals can be had even before Cyber Monday and savvy shoppers can get them from their phones.

Source: CNNMoney.com – video report

Date: Nov 23, 2012

Link: http://money.cnn.com/video/technology/2012/11/23/n-cyber-monday-mobile.cnnmoney/

Questions for Discussions:

  • What are the financial implications for the changes in shopping behavior due to online options?
  • How might these affect cash flows, revenues, and inventories in particular?

Black Friday results a useless indicator

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

Description:  Commentary: Initial reports from retailers are unreliable

Source: Marketwatch.com

Date: Nov 23, 2012

Link:  http://www.marketwatch.com/story/black-friday-results-a-useless-indicator-2012-11-23

Questions for Discussions:

  • What does the report say about the value of Black Friday as an indicator?
  • Why do you suppose it is given such prominent attention by analysts?