More Reasons Not to Fudge Business Expenses

Posted by & filed under Financial Planning, Governments & Regulators, Management Issues.

Description: It’s easy for entrepreneurs hatching startups to fudge the line between personal and business expenses. Is that laptop really used for your company, or for your kids? Are you discussing business at lunch, or gossiping with a friend? Beyond the typical admonitions about tax audits, running personal expenses through your business can backfire with employees, investors, partners, and buyers. I spoke to Ben Straughan, an attorney and partner in the emerging-companies practice at Seattle-based Perkins Coie. Edited excerpts of our conversation follow.

Source: Businessweek.com

Date: Nov 06, 2012

Link:  http://www.businessweek.com/articles/2012-11-06/more-reasons-not-to-fudge-business-expenses#r=nav-f-column

Questions for Discussions:

  • What does this report say about the keeping business and personal expenses separate?
  • What else did you learn from this report about the proper financial management of a start-up?

 

Google Ventures ups fund to $300m a year

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

Description: Google Ventures announced in a tweet yesterday it has increased its fund by 50 percent to $300 million a year and plans to invest $1.5 billion in startups through 2017.

Source: Smartplanet.com

Date: Nov 09, 2012

Link:  http://www.smartplanet.com/blog/bulletin/google-ventures-ups-fund-to-300m-a-year/5174?tag=header;header-sec

Questions for Discussions:

  • Explain the rationale for Google’s Venture fund?
  • What primary benefit can Google receive following a successful start-up?
  • Evaluate the risks for Google?

 

How Sprint is outperforming Apple

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

Description: CEO Dan Hesse’s turnaround of Sprint has the wireless carrier’s stock outperforming Apple’s.

Source: CNNMoney.com – video report

Date: Nov 02, 2012

Link: http://money.cnn.com/video/magazines/fortune/2012/11/02/ldrshp-sprint-1.fortune/

Questions for Discussions:

  • Why has Sprint stock done so well over the past year?
  • How has the deal with Apple changed cash flow?
  • Would you be an investor in Sprint or Apple?

Joy: There’s Not Much Value in Treasuries

Posted by & filed under Economic Analysis, Financial analysis, Market Analysis.

Description: Nov. 2 (Bloomberg) — David Joy, chief market strategist at Ameriprise Financial, talks with Bloomberg’s Stephanie Ruhle about his strategy for investing in the bond market. They speak on Bloomberg Television’s “Lunch Money.” (Source: Bloomberg)

Source: Bloomberg.com – video report

Date: Nov 02, 2012

Link: http://bloom.bg/YeXiFQ

Questions for Discussions:

  • Summarize the bond strategies made in this interview. Do you agree?
  • What would you advise investors?

Verizon: Sandy could have ‘significant’ impact on profit

Posted by & filed under Company Analysis, Industry Analysis.

Description:  Verizon on Friday said it is making progress in getting its cellular service back online for customers impacted by Superstorm Sandy, but the repair work may take a chunk out of its fourth-quarter earnings.

Source: CNNMoney.com

Date: Nov 02, 2012

Link:   http://money.cnn.com/2012/11/02/technology/mobile/verizon-sandy/?source=cnn_bin

Questions for Discussions:

  • How can Verizon and others in the same industry deal with the financial risks associated with events like “Sandy”?
  • What other businesses are likely to report similar financial losses as a result of the storm?

It’s Global Warming, Stupid

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

Description: Yes, yes, it’s unsophisticated to blame any given storm on climate change. Men and women in white lab coats tell us—and they’re right—that many factors contribute to each severe weather episode. Climate deniers exploit scientific complexity to avoid any discussion at all.

Source: Businessweek.com

Date: Nov 01, 2012

Link:  http://www.businessweek.com/articles/2012-11-01/its-global-warming-stupid#r=hp-ls

Questions for Discussions:

  • What does this report say about the connections between economic development, global warming and “Sandy”?
  • What are the possible economic scenarios in the future if a trend towards worsening storms becomes a reality for businesses to deal with?
  • How will this affect financial planning models?

Investing a lump sum of money in stocks pays off

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

Description:  A mutual fund giant challenges an investment technique financial advisers have used for decades, and many professionals are taken aback.

Source: Marketwatch.com

Date: Nov 02, 2012

Link:  http://www.marketwatch.com/story/putting-a-lump-sum-of-money-into-stocks-pays-off-2012-11-02?siteid=nwtwk

Questions for Discussions:

  • Summarize the highlights of this study.
  • How would you expect investors and advisors to react to the conclusions in the study?

 

Expedia takes off

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

Description: Shares of the travel site are soaring after the company crushes earnings forecasts yet again, raising the bar for rivals Priceline and Orbitz.

Source: CNNMoney.com – video report

Date: Oct 26, 2012

Link: http://money.cnn.com/video/investing/2012/10/26/investing-expedia-priceline-orbitz.cnnmoney/

Questions for Discussions:

  • Why do you suppose Expedia has performed better than other online competitors?
  • How important is “brand” in this explanation?

Sparks Fly With Greg Smith Over Goldman Sachs Book

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

Description: Bloomberg Television recaps the discussion between former Goldman Sachs employee Greg Smith and Bloomberg’s Stephanie Ruhle on his career at Goldman Sachs and the reasons why he wrote his book, “Why I Left Goldman Sachs.” He speaks on Bloomberg Television’s “Market Makers.”

Source: Bloomberg.com – video report

Date: Oct 25, 2012

Link: http://bloom.bg/SiOE6B#ooid=JhYTZjNjpkF3-sNmTXx_b4-fCePOVqwF

Questions for Discussions:

  • Summarize the arguments made in this interview.
  • What is your opinion of the accusations and criticisms made by Greg Smith?
  • Since he says, “Everything was legal”, is there a problem?

Citi Chairman Is Said to Have Planned Chief’s Exit Over Months

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

Description:  Vikram Pandit’s last day at Citigroup swung from celebratory to devastating in a matter of minutes. Having fielded congratulatory e-mails about the earnings report in the morning that suggested the bank was finally on more solid ground, Mr. Pandit strode into the office of the chairman at day’s end on Oct. 15 for what he considered just another of their frequent meetings on his calendar.

Source: NYTimes.com

Date: Oct 25, 2012

Link:  http://www.nytimes.com/2012/10/26/business/citi-chairman-is-said-to-have-planned-pandits-exit-for-months.html?ref=business

Questions for Discussions:

  • What does this report say about the management at Citi?
  • What are your thoughts on the way Pandit was treated?
  • How do you think this episode will affect the stock?