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

Description: Commentary: Here’s a fair-price calculation for Facebook

Source: Marketwatch.com

Date: May 25, 2012

Link: http://www.marketwatch.com/story/facebooks-stock-should-trade-for-1380-2012-05-25

Questions for Discussions:

  • What is the basis for the calculations?
  • Do you think the approach is sound?
  • What do you think Facebook is worth?

 

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

Description: Facebook Inc. (FB)’s initial public offering, plagued by trading errors and a 16 percent drop in the share price, will push more individual investors out of a stock market they already distrust after the financial crisis.

Source: Bloomberg.com

Date: May 26, 2012

Link: http://www.bloomberg.com/news/2012-05-25/facebook-ipo-fallout-deepens-investor-distrust-of-stocks.html

Questions for Discussions:

  • What does this report say about investors’ trust in the system?
  • Do you agree with this sentiment?
  • How would you suggest the industry and regulators address the situation?

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

Description: All hail Memorial Day weekend. In the tradition of my Miami childhood, ‘tis the season to don Crockett & Tubbs white pants and flaunt the right to bare arms. Hedgies and traders clad in Sperry Docksiders bolt Gotham for the leafy, saltwater-sprayed indolence of the Hamptons. The market’s volume dips to a trickle.

Source: Businessweek.com

Date: May 25, 2012

Link: http://www.businessweek.com/articles/2012-05-25/kvetch-in-may-why-market-timing-isnt-everything

Questions for Discussions:

  • Why do you suppose investor behavior seems to respond to the “sell in May” theory?
  • What is the opinion expressed in this report about the phenomenon?
  • What is your thinking on the strategy?

 

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

Description: As trading volumes spiked to 567 million shares, CNNMoney tried to get in on the action.

Source: CNNMoney.com – video report

Date: May 18, 2012

Link: http://money.cnn.com/video/news/2012/05/18/n-cnnmoney-buys-facebook-shares.cnnmoney/

Questions for Discussion:

  • Describe the barriers to buying into the IPO on the first day of trading?
  • How do you think these constraints affected the trading values during the day?
  • How will this change over the near future?
  • How do you think investors will react to the closing value on the first day?
  • Would you have been a buyer (if you could) on the first day of trading?

 

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

Description: With Facebook Inc. FB +0.61%  finally going public, the market’s attention next turns to whether the social-networking sensation will lead the way for another wave of tech firms to cash in on the IPO market

Source: Marketwatch.com

Date: May 18, 2012

Link: http://www.marketwatch.com/story/facebook-debut-sets-pace-for-tech-ipos-to-come-2012-05-18

Questions for Discussions:

  • How is the Facebook IPO experience expected to influence other social media firms waiting in the wings?
  • What do you think of the valuation for Facebook?
  • Do you think is will hold?

 

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

Description: Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.

Source: Marketwatch.com – video report

Date: May 18, 2012

Link: http://www.marketwatch.com/video/asset/fishing-industry-aids-iceland-recovery/E1ED2AC5-D98B-4760-844E-67F8BA64A136

Questions for Discussion:

  • What does this report have to say about economic recovery in Iceland?
  • How does the country’s currency help with business recovery?
  • What does this report suggest about recovery in Greece, Italy, Spain and other European countries?

 

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

Description: The 8-year-old social-networking site run by co-founder Mark Zuckerberg closed 0.6 percent higher at $38.23 in New York yesterday. That compares with Carlyle Group LP (CG)’s lackluster 0.2 percent day-one increase on May 3. It pales in contrast with Google Inc. (GOOG)’s 18 percent jump in its 2004 initial public offering, Visa Inc. (V)’s 28 percent gain in 2008 and LinkedIn Corp.’s 109 percent surge last May.

Source: Bloomberg.com

Date: May 19, 2012

Link: http://www.bloomberg.com/news/2012-05-18/facebook-failing-to-garner-day-one-pop-lags-behind-google.html

Questions for Discussions:

  • How did Facebook fare on the first day of trading in comparison to other hyped IPOs?
  • Where do you think the stock will go over the next few weeks, given its launch results?
  • Would you be a buyer today?

 

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

Description: As Facebook increases the size and price range of its initial public offering, the rest of the IPO market is starting to sputter. According to data compiled by Bloomberg, there’s been an uptick in the number of companies that have either withdrawn or postponed their IPO in the past three months. Since mid-February, 29 IPOs have been shelved, a 38 percent increase over the same period last year.

Source: Businessweek.com

Date: May 16, 2012

Link: http://www.businessweek.com/articles/2012-05-16/is-facebook-sucking-oxygen-out-of-the-ipo-market

Questions for Discussions:

  • What is the state of the IPO market today?
  • What factors influence the decisions about IPOs?
  • How do you think Facebook’s launch has influenced the IPO market?

 

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

Description: Soft demand in crisis-stricken Europe is hurting sales of watch and accessory maker Fossil – and its stock price.

Source: CNNMoney.com – video report

Date: May 10, 2012

Link: http://money.cnn.com/video/markets/2012/05/08/mkts-bz-fossil.cnnmoney/

Questions for Discussion:

  • Why did Fossil’s share drop so dramatically?
  • Do you think they can return to recent valuations?
  • How would you go about evaluating the stock value today, and going forward?

 

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

Description: After news of JPMorgan’s multi-billion dollar loss, Mike Mayo reaffirms his stance that incentives are misaligned at big banks.

Source: CNNMoney.com – video report

Date: May 11, 2012

Link: http://money.cnn.com/video/news/2012/05/11/n-mayo-jpmorgan-banks.cnnmoney/

Questions for Discussion:

  • Summarize the opinions expressed by Mike Mayo.
  • Do you agree with his assessment, particularly about risk?
  • What would you advise regulators? Investors?

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