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

Description: Canadian companies and pension funds are on a European acquisition binge, even as U.S. and Chinese buyers slash spending on takeovers there. Europe’s low valuations and the robust Canadian dollar are spurring deals by Canadian companies such as Brookfield Asset Management (BAM) and Alimentation Couche-Tard. “Canadian companies are basically punching above their weight in the European market,” says Julian Brown, head of corporate finance for Canada at Pricewaterhouse-Coopers in Toronto.

Source: Businessweek.com

Date: Aug 02, 2012

Link: http://www.businessweek.com/articles/2012-08-02/canadian-companies-shop-for-european-assets#r=nav

Questions for Discussions:

  • Explain the reasons for Canadian acquisitions in Europe?
  • How significant is the strength of the Canadian dollar and commodity prices in explaining the decision to invest outside Canada?

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

Description: Commentary: Ironically, you’ll win by buying banks now. “Facebook will become the poster child for the current social-media bubble,” warns economist Gary Shilling in his latest Forbes column, “just as Pets.com was for the dot-com bubble.” Yes, Wall Street is repeating the 2000 dot-com crash as today’s social-media bubble crashes and burns.

Source: Marketwatch.com

Date: July 31, 2012

Link: http://www.marketwatch.com/story/the-real-crash-is-dead-ahead-as-2008-is-forgotten-2012-07-31?siteid=nwtwk

Questions for Discussions:

  • Summarize the arguments for the doom and gloom outlook in this article.
  • Do you agree with the basic premise?

Posted by & filed under Financial analysis, Financial Planning, Governments & Regulators.

Description:  Stockton, California, Police Chief Tom Morris was supposed to bring stability to law enforcement when he was appointed to the job four years ago.

Source: Bloomberg.com

Date: July 31, 2012

Link: http://www.bloomberg.com/news/2012-08-01/police-chief-s-204-000-pension-shows-how-cities-crashed.html

Questions for Discussions:

  • Explain the crisis facing these cities in terms of financial mismanagement of budgets and cash flow estimations?
  • Is there a financial solution?
  • Could legislation be used to regulate pensions?

 

 

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

Description: Former TARP Inspector General Neil Barofsky says the program failed to protect Main Street from Wall Street.

Source: CNNMoney.com – video report

Date: July 25, 2012

Link: http://money.cnn.com/video/news/2012/07/25/n-Barofsky-TARP.cnnmoney/

Questions for Discussions:

  • Summarize commentary in this report about the failure to manage TARP.
  • Do you believe the criticism is fair?
  • What are the economic prospects for the next year, in your opinion and how much are they related to the lending environment today?

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

Description: Retail merchants get charged a fee when you use plastic and recent reforms don’t seem to be reducing the burden on small businesses.

Source: CNNMoney.com – video report

Date: July 20, 2012

Link: http://money.cnn.com/video/smallbusiness/2012/07/19/sbiz-credit-card-costs.cnnmoney/

Questions for Discussions:

  • Describe how cash, credit and debit card processing affect the financial operations of retailers.
  • Do you think these costs fairly reflect the value of services that card companies provide?
  • Should rates be left to the market to decide or should they be legislated?
  • What alternative payment systems might be able to compete?

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

Description: $15.1 billion deal one of many to greatly impact global oil, natgas. When Cnooc Ltd. scored a deal to acquire Canada’s Nexen Inc., it was one big leap for China’s largest offshore oil and natural gas producer, and one small step toward building a global empire to feed the Asian nation’s voracious appetite for energy.

Source: Marketwatch.com

Date: July 27, 2012

Link: http://www.marketwatch.com/story/china-flexes-muscles-with-cnooc-nexen-deal-2012-07-27

Questions for Discussions:

  • Summarize the history of Chinese energy acquisitions and the logic behind this deal in particular.
  • What are the global implications for energy prices and the values of other energy companies?

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

Description: Remember suburban Phoenix, home of empty subdivisions with green swimming pools and roving coyotes? It’s booming again. A house in Glendale got 95 offers and eventually sold for 17 percent above the asking price. “This is not something we would see in a normal market,” says Michael Orr, director of the Center for Real Estate Theory and Practice at Arizona State University’s W.P. Carey School of Business.

Source: Businessweek.com

Date: July 26, 2012

Link: http://www.businessweek.com/articles/2012-07-26/housing-a-long-way-from-normal#r=nav

Questions for Discussions:

  • Summarize the activity in real estate markets today.
  • What does all of this mean for homeowners, builders, and investors?
  • Would you be a buyer of a home building company today?

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

Description:  Facebook Inc. (FB) plunged to a record low after its first earnings report as a public company showed a slower sales gain and narrower profit margins, failing to allay concerns over growth that have dragged down the shares.

Source: Bloomberg.com

Date: July 27, 2012

Link: http://www.bloomberg.com/news/2012-07-27/facebook-falls-after-report-fails-to-quell-concerns-over-growth.html

Questions for Discussions:

  • Why has the stock fallen in price?
  • What are the financial concerns for the company?
  • How does the emerging “mobile” environment conflict with the current Facebook business model?
  • What are you financial predictions for the firm and its stock performance?

 

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

Description: Walgreen reached an agreement with pharmacy benefit manager Express Scripts, giving its shares a much needed boost.

Source: CNNMoney.com – video report

Date: July 19, 2012

Link: http://money.cnn.com/video/markets/2012/07/19/investing-bz-Walgreen.cnnmoney/

Questions for Discussions:

  • Summarize and explain the recent financial performance of Walgreen.
  • How much of the problem facing the company can be attributed to management, in your opinion?
  •  Explain why you would be a buyer or seller today?

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

Description:   Chipotle is still growing rapidly, but investors were disappointed that revenues missed lofty forecasts.

Source: CNNMoney.com – video report com

Date: July 20, 2012

Link: http://money.cnn.com/video/markets/2012/07/20/investing-bz-Chipotle.cnnmoney/

Questions for Discussions:

  • Summarize the financials for the company.
  • Why has the stock fallen so much?
  • Would you be a buyer or seller at this time?