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

Description:  Four years ago the stock market was in free fall. Since then, it’s regained plenty of altitude. Many people missed out on the rally, though; rather than investing, U.S. households stashed a record $8.6 trillion in cash deposits.

Source: Businessweek.com

Date: Oct 11, 2012

Link:  http://www.businessweek.com/articles/2012-10-11/stocks-doubled#r=nav-f-graphic

Questions for Discussions:

  • What does this chart tell you about stock and bond ROI over the past four years?
  • What does it suggest about investor psychology?
  • How do you expect investors to behave going forward, knowing that they have missed the gains of the past four years and face low interest bond markets today?

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

Description:  Sprint Nextel confirmed on Thursday that it was in talks with Softbank of Japan over a “potential substantial investment.” A deal would give the struggling American cellphone service provider a deep-pocketed backer to help finance its turnaround effort.

Source: NYTimes.com

Date: Oct 11, 2012

Link:  http://dealbook.nytimes.com/2012/10/11/softbank-of-japan-said-to-near-a-deal-for-control-of-sprint/

Questions for Discussions:

  • Explain the reasons for the proposed merger and the criticisms by analysts.
  • What does this report say about the capital investment requirements in this industry?
  • Does Sprint represent a good investment to Softbank?
  • What are the risks for current investors holding the stock?

 

 

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

Description:  Pimco CEO Mohamed El-Erian talks fiscal cliff, European crisis, China slowdown and more.

Source: CNNMoney.com – video report

Date: Oct 04, 2012

Link: http://money.cnn.com/video/magazines/fortune/2012/10/04/f-el-erian-pimco-ceo-global-risks.fortune/

Questions for Discussions:

  • Summarize the risks presented by El-Erian in this report.
  • How great is each risk in terms of affecting economic activity in general and some specific industries, in particular?

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

Description: Zynga shares tumbled today after the company forecast a third quarter net loss and lowered it’s financial outlook. MarketWatch’s Cody Willard on The News Hub explains why he’d giving up on the company and dumping its shares. Photo: Getty Images.

Source: Moneywatch.com – video report

Date: Oct 05, 2012

Link: http://on.wsj.com/SzAuQV

Questions for Discussions:

  • Why is Cody Willard dumping these shares?
  • Do you agree with his assessment?
  • Is this an opportunity for new buyers?

Posted by & filed under Financial analysis, Market Analysis.

Description:  Neither previous quarterly performance nor the election year cycle have proved to be good predictors of the Dow Jones Industrial Average’s.

Source: Moneywatch.com

Date: Oct 05, 2012

Link:  http://www.marketwatch.com/story/5-charts-every-investor-needs-this-quarter-2012-10-05?dist=lcountdown

Questions for Discussions:

  • What do each of these charts tell you about investing?
  • Which do you think is most relevant today?
  • Which other charts would be particularly useful to investors today?

Posted by & filed under Company Analysis, Financial Planning.

Description:  An early tech rally fizzled on Friday as the sector was weighed down by losses in shares of Zynga Inc. and Facebook Inc.

Source: Moneywatch.com

Date: Oct 05, 2012

Link:  http://www.marketwatch.com/story/zynga-facebook-slide-tech-stocks-rally-2012-10-05?dist=lcountdown

Questions for Discussions:

  • Explain the crash in share value for Zynga and Facebook.
  • Are these buying opportunities or worrisome trends?
  • How would you value these firms’ shares?
  • What is your predicted valuation looking ahead six months to a year from now?

 

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

Description:  Here’s a vastly boiled-down refresher on corporate governance: A public company’s management is accountable to its board of directors, which in turn answers to shareholders, who are, after all, the “owners” of said public company. These holders keep executives and directors honest by casting votes based on tens of millions of shares dispersed across individual brokerage accounts, pension plans, and mutual funds. A management that consistently does wrong by shareholders is liable to be evicted from its seat at the mahogany table. For elaboration, please see Gordon Gekko’s speech in the movie Wall Street.

Source: Busineweek.com

Date: Oct 05, 2012

Link:  http://www.businessweek.com/articles/2012-10-05/wheres-the-shareholder-outrage-at-hewlett-packard#r=nav-r-story

Questions for Discussions:

  • Summarize the criticisms levied against the company and shareholders?
  • Why do you suppose there has been such limited shareholder revolt against the firm’s management?
  • Would you be a buyer of HP today?
  • Do you think HP can ever regain the valuation it once enjoyed?

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

Description:  Reflecting on the 2008 financial crisis, former FDIC chairperson Sheila Bair discusses her regrets over the bailout of the big banks.

Source: CNNMoney.com – video report

Date: Sep 27, 2012

Link: http://money.cnn.com/video/news/2012/09/27/n-sheila-bair-citi-bailout.fortune/

Questions for Discussions:

  • Summarize the regrets expressed in hindsight by Sheila Blair.
  • Why do you suppose Citi bondholders were “protected” by the Fed?
  • What might have happened if the losses in bad debts had been spread to those bond holders?
  • What have we learned about the way in which the Fed managed the risk assumed by Citi and other banks during this fiasco?

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

Description: Shares of Google are at an all-time high as it turns 14. And the search giant shows no signs of maturity yet.

Source: CNNMoney.com – video report

Date: Sep 27, 2012

Link: http://money.cnn.com/video/investing/2012/09/27/investing-google-birthday.cnnmoney/

Questions for Discussions:

  • Explain the current valuation of Google stock.
  • Why are there comparisons to Facebook?
  • What metrics would you use to evaluate the stock?
  • Would you be a buyer today?

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

Description:  Bank of America announced on Friday that it would pay $2.43 billion to settle a class action lawsuit related to its acquisition of Merrill Lynch, as the legal woes continue for the financial institution.

Source: NYTimes.com

Date: Sep 28, 2012

Link:  http://dealbook.nytimes.com/2012/09/28/bank-of-america-to-pay-2-43-billion-to-settle-class-action-over-merrill-deal/?ref=business

Questions for Discussions:

  • What lessons are there to be learned here for investors and managers?
  • Does the settlement suggest the stock is a good buy today?
  • Do you believe management can regain investor confidence after this settlement?