Ex-UBS Trader Is Accused of Gambling in a Big Loss

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

Description:  Fictitious trading and brazen gambling by a single individual could have brought down the Swiss financial giant UBS, a British prosecutor said on Friday at the trial of a former bank employee accused of causing a multibillion-dollar trading loss.

Source: NYTimes.com

Date: Sep 14, 2012

Link:  http://dealbook.nytimes.com/2012/09/14/as-his-fraud-trial-opens-ex-ubs-trader-is-accused-of-brazen-gambling/?ref=business

Questions for Discussions:

  • Summarize the highlights of this case.
  • What does this report say about individual and corporate responsibility for actions on the job?
  • Where would you lay blame for this fiasco?
  • How would you expect investors respond to this report?

Why Apple isn’t going into the Dow

Posted by & filed under Company Analysis, Industry Analysis.

Description:  Kraft  KFTis being replaced in the Dow Jones Industrial Average by UnitedHealth Group  after the close of trading  Sept. 21. It’s the first change in the composition of the widely quoted index since 2009. But while UnitedHealth represents an important sector of the economy, it may not have seemed the most logical choice, given the continued outperformance of Apple Inc.

Source: Marketwatch.com

Date: Sep 15, 2012

Link:  http://blogs.marketwatch.com/thetell/2012/09/14/why-apple-isnt-going-into-the-dow/

Questions for Discussions:

  • Why does Apple not qualify for entry to the Dow?
  • How would its inclusion have affected the index over the past year?
  • Why would the company not split the shares in order to better qualify for entry to the Dow?
  • How does all of this affect stockholders?

Bankers, Expect Your 2012 Bonus to be Down 30%

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

Description: As investment bank bonus pools continue to shrink, banks are expected to continue to layoff staff. The WSJ’s Deborah Kan speaks to Christian Brun from executive search firm Wellesley Partners about just how bad it’s about to get.

Source: Moneywatch.com – video report

Date: Sep 07, 2012

Link: http://on.wsj.com/Qi5MdW

Questions for Discussions:

  • According to the report, what is the state of investment banking today?
  • Why was there a lag between quarterly profits and employment?
  • What does the adjustment in employment and compensation suggest for the near future?
  • Do you believe that this is an industry that can rebound quickly or are the changes of a more permanent nature?

No Joke: Jay Leno Took Pay Cut of 50%

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

Description: Late-night talk show host Jay Leno took a 50% pay cut as part of NBC’s budget-chopping effort last month at “The Tonight Show,” the network said, detailing the scope of the changes for the first time as well as the reasoning behind them. Christopher Stewart has details on Lunch Break. Photo: Getty Images.

Source: Moneywatch.com – video report

Date: Sep 07, 2012

Link: http://on.wsj.com/QjHz7c

Questions for Discussions:

  • Besides salaries, what other significant budgetary adjustments are possible for this sort of programming?
  • Given these constraints, what financial future do you see for these shows?
  • How does the Internet provide financial solutions?
  • How would you suggest financial compensation be structured so as to make these shows financially viable?

Too quick to a call bottom for U.S. home prices: Shiller

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

Description: The much-anticipated bottom of the U.S. housing market may finally be upon us, as the closely watched S&P/Case Shiller index of home prices rose 0.5 percent from last year – marking the first time since 2010 that home prices increased year-over-year.

Source:  BNN.ca – video report

Date: Sep 07, 2012

Link:  http://www.bnn.ca/News/2012/9/7/Too-quick-to-a-call-bottom-for-US-home-prices-Shiller.aspx

Questions for discussion:

  • Summarize the highlights of this report?
  • Do you think housing is bottoming out in the US in select markets such as Florida?
  • Is it a good time to buy if you are a speculative investor?

Are the Big Banks Keeping Their Commitment to Small Businesses?

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

Description:   Last September in Cleveland, 13 of the nation’s largest banks stood beside Vice President Joseph R. Biden Jr. and Karen Mills, chief of the Small Business Administration, and announced a commitment to increase small-business lending by $20 billion over the following three years.

Source: NYTimes.com

Date:  Sep 06, 2012

Link:  http://boss.blogs.nytimes.com/2012/09/06/are-the-big-banks-keeping-their-commitment-to-small-businesses/?ref=smallbusiness

Questions for Discussions: 

  • What is the answer to the question posed in the title of this article?
  • Explain the reasons for this situation and what the implications are for small businesses.

The Mystery Man Behind Weight Watchers And The Private Equity Deal Of The Century

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

Description:  The private equity industry has produced legendary investors like Steve Schwarzman, David Rubenstein and Mitt Romney. But none of these guys have done a deal quite like Raymond Debbane, an unknown and secretive private equity investor who is based in New York. Debbane is the man behind Weight Watchers International, which is the private equity deal of the century. This money-making extravaganza has been going on since 1999, largely unnoticed, and there is no sign that it will stop anytime soon.

Source: Forbes.com

Date: Sep 04, 2012

Link:  http://www.forbes.com/sites/nathanvardi/2012/09/04/the-mystery-man-behind-weight-watchers-and-the-private-equity-deal-of-the-century/

Questions for Discussions:

  • Summarize the history of Weight Watchers Inc.
  • Do you agree that it was the deal of the century?
  • What would you do if you were Debbane?
  • What would you advise investors?

Dallas Cowboys Lead NFL With $2.1 Billion Valuation

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

Description:  The most famous quote attributed to legendary Green Bay Packers coach Vince Lombardi is “winning isn’t everything, it’s the only thing.” But if Lombardi had coached in this era instead of the 1960s he may have substituted the word “marketing” for “winning.”

Source: Forbes.com

Date: Sep 05, 2012

Link:  http://www.forbes.com/sites/mikeozanian/2012/09/05/dallas-cowboys-lead-nfl-with-2-1-billion-valuation/

Questions for Discussions:

  • What is the basis for the evaluation of teams?
  • What additional metrics would you use when attempting to put a value on a professional sports team?
  • How would you assess the level of risk associated with ownership?

Facebook Shares Hit New Lows

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

Description: Facebook shares fell 5% to new lows Friday as two analysts from firms that underwrote its initial public offering cut their price targets on the shares, Paul Vigna reports on the News Hub. Photo: AP.

Source: Marketwatch.com – video report

Date: Aug 31, 2012

Link: http://on.wsj.com/R3hzXy

Questions for Discussions:

  • Summarize the explanation in this report for why Facebook share values continue to fall.
  • Do you agree with the analysis?
  • Would you be an investor in the shares?

Bernanke: Fed Gears Up to Do More to Lift Economy

Posted by & filed under Economic Analysis.

Description: Fed chairman Ben Bernanke expressed concern over the labor market, defended the central bank’s monetary policies and left no doubt he plans to do more to lift the economy at the next meeting in September. Sudeep Reddy reports on Markets Hub. Photo: AP.

Source: Marketwatch.com – video report

Date: Aug 31, 2012

Link: http://on.wsj.com/R2sKQl

Questions for Discussions:

  • Summarize the reporters’ explanations of Fed chairman Bernanke’s statements.
  • Do you agree with these assessments?
  • What monetary and fiscal behaviors would you think are most appropriate and realistic at this time?
  • What would you advise investors at this time?