‘Period of remorse’ catches up to Diamond

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

Description: Robert Diamond’s resignation, effective immediately, as chief executive officer of Barclays PLC UK:BARC -2.05%  BCS -1.72%  Tuesday morning in the wake of the Libor-manipulation scandal comes a day after he reportedly sent a letter to employees saying he was “sorry” and pledged to impose tougher internal controls. Full story: Bob Diamond resigns as Barclays CEO.

Source: Marketwatch.com

Date: July 03, 2012

Link: http://www.marketwatch.com/story/period-for-remorse-catches-up-to-diamond-2012-07-03?siteid=nwtwk

Questions for Discussions:

  • Do you believe there is an internal control problem?
  • Is the culture within these institutions the problem?
  • Is this resignation going to make any difference to future management operations, in your opinion?

How to crack Wall Street’s earnings code

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

Description: 7 terms to listen for when CEOs and CFOs talk business

Source: Marketwatch.com

Date: July 06, 2012

Link:  http://www.marketwatch.com/story/how-to-crack-wall-streets-earnings-code-2012-07-06

Questions for Discussions:

  • Summarize the code-speak.
  • Do you think anyone misses what is really happening?
  • Why would managers choose to avoid speaking clearly to shareholders and analysts?

France slaps seven billion euros in taxes on rich and big firms

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

Description:  France’s new Socialist government announced tax rises worth 7.2 billion euros on Wednesday, including heavy one-off levies on wealthy households and big corporations, to plug a revenue shortfall this year caused by flagging economic growth.

Source: Reuters.com

Date: July 04, 2012

Link: http://www.reuters.com/article/2012/07/05/us-france-budget-idUSBRE86307X20120705

Questions for Discussions:

  • What are the implications for Euro-based debt, the Euro, and the global economy?
  • Is this decision a good one?

 

Why your hospital bill is so high

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

Description:    From IV bags to chest tubes, Dr. Sanjay Gupta explains why even basic medical equipment adds thousands to your medical bill.

Source: CNNMoney.com – video report

Date: June 28, 2012

Link: http://money.cnn.com/video/news/2012/06/27/n-medical-equipment-cost.cnnmoney/

Questions for Discussions:

  • Summarize the way hospitals allocate costs in order to cover all operating expenses.
  • Is this a form of insurance?
  • What would be a fairer way to allocate charges for services and products used by uninsured patients?
  • Is there a technological solution that can help in this environment?

Old school guide to money and marriage

Posted by & filed under Financial Planning.

Description:    Married residents of New York’s Amsterdam at Harborside retirement community share how they’ve dealt with money issues over the decades.

Source: CNNMoney.com – video report

Date: June 25, 2012

Link: http://money.cnn.com/video/pf/2012/06/22/pf-hd-old-money-marriage.cnnmoney/

Questions for Discussions:

  • What personal financial lessons can be learned from this report that remain true for people today?
  • How did people function before electronic systems like credit cards?
  • Do you think these older systems enabled people to understand and control their spending better?

Airlines Lift U.S.-To-Europe Fares By Paring Seats

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

Description: U.S. carriers led by United Continental Holdings Inc. (UAL) are shielding their lucrative trans- Atlantic business from the worst of Europe’s economic slump, after shrinking the supply of seats to support higher fares.

Source: Bloomberg.com

Date: June 28, 2012

Link: http://www.bloomberg.com/news/2012-06-28/airlines-lift-u-s-to-europe-fares-by-paring-seats.html

Questions for Discussions:

  • How have airlines planned and adjusted to market conditions?
  • How will this affect cash flow and budgetary concerns?

U.S. Automakers Cut Retirees Loose

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

Description: General Motors (GM) is offering retiree Rick Knoth a check for more than a half-million dollars and he’s still unhappy. Yes, Knoth plans to take GM’s huge buyout of his retirement benefits, but says he may never buy another car from the company where he worked for 37 years. “During my career I was told I was a valuable member of the GM family,” says Knoth, 60, who retired in 2008 as a manufacturing engineer. “Now they’re saying … ‘Here’s your check, go away.’”

Source: Businessweek.com

Date: Jun 27, 2012

Link:  http://www.businessweek.com/articles/2012-06-27/u-dot-s-dot-automakers-cut-retirees-loose

Questions for Discussions:

  • Summarize how the pension crisis at GM developed?
  • Is the current strategy good for the company, the pensioner, both, or neither?
  • What risk management lessons are there in this situation for other financial planners to learn from?

Encana probes collusion accusation

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

Description:  Encana Corp. has launched an internal investigation after the State of Michigan said it is examining allegations that the company worked with rival Chesapeake Energy Corp. to avoid competing in state land auctions for shale gas.

Source: GlobeandMail.com

Date: June 26, 2012

Link: http://www.theglobeandmail.com/globe-investor/encana-probes-collusion-accusation/article4368056/

Questions for Discussions:

  • What are the financial implications for both firms if collusion is found to be true?
  • How should companies manage this sort of risk?
  • Do you believe there is a case to be made?
  • How would you advise investors?

 

There’s more to fear: Americans eating in

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

Description: Slow sales for Darden Restaurant chains Olive Garden and Red Lobster have investors asking for the check as Americans opt to dine at home.

Source: CNNMoney.com – video report

Date: June 22, 2012

Link: http://money.cnn.com/video/markets/2012/06/22/investing-bz-darden.cnnmoney/

Questions for Discussion:

  • Why is there concern over financial details related to these firms?
  • Do you agree with the interpretation of these numbers and what some analysts suggest?

How we know you’re afraid to invest

Posted by & filed under Market Analysis.

Description:    CNNMoney has a new way to help you gauge whether investors are greedy or fearful.

Source: CNNMoney.com – video report

Date: June 20, 2012

Link: http://money.cnn.com/video/news/2012/06/19/n-fear-and-greed.cnnmoney/

Questions for Discussions:

  • Summarize the methodology used to explain stock market behavior?
  • Do you think it is a useful way of measuring and predicting behavior?
  • Based on the current readings, what are your predictions for the market over the next three months?