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

Description:  Amazon.com Inc. (AMZN) fell the most in three months after sales missed estimates, signaling that its investments in media services, Kindle devices and shipping promotions have been slow to pay off.

Source: Bloomberg.com

Date: 02/01/2012

Link:  http://www.bloomberg.com/news/2012-01-31/amazon-s-sales-miss-estimates-profit-drops-as-expenses-surge-shares-drop.html

Questions for discussion:

  • Why did the stock value fall?
  • What does the reason suggest about the profitability of the business?

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

Description:    Cisco’s John Chambers says the 33% tax rate on foreign profits prevents companies from repatriating the money and creating jobs.

Source: CNNMoney.com – video report

Date: 01/26/2012

Link:  http://money.cnn.com/video/news/2012/01/26/n_davos_chambers_investment.cnnmoney/

Questions for discussion:

  • Where are Cisco’s profits invested in today’s global economy?
  • How is this issue a business, economic, and political issue?
  • Is there a way to mitigate the drain on lost profits to the U.S. economy?

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

Description: Marketwatch’s David Weidner makes a stop on Mean Street to point out that amid all of Apple’s recently reported financial successes, there is a familiar dark side to all the good news. Photo: Reuters.

Source:  Marketwatch.com – video report

Date: 01/26/2012

Link:  http://www.marketwatch.com/video/asset/weidner-there-a-rotten-side-to-apple-success/595D3920-BA75-44B6-9C8D-E33B59F12A13

Questions for discussion:

  • Summarize the criticisms levied against Apple? Are they fair?
  • How should investors regard these points when considering investment choices?
  • Does the image of Apple’s products overwhelm its “dark” side of business practice?
  • Is management practice any different than at any other big global corporation?

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

Description:  At the depths of the financial crisis, senior bankers at Credit Suisse Group (CS) received $5.05 billion of junk-grade loans and commercial-mortgage-backed bonds as part of their annual bonuses. Those assets, considered long-shot investments when they were transferred to an internal employee fund in late 2008, offered the Swiss investment bank a way to shift risk off its books—while giving the employees a chance to benefit from any recovery in that market.

Source: Businessweek.com

Date: 01/26/2012

Link:  http://www.businessweek.com/magazine/at-credit-suisse-toxic-bonuses-turn-into-gold-01262012.html

Questions for discussion:

  • Explain the strategy employed and how everyone seems to be benefiting from it.
  • Is everyone benefiting fairly from this strategy and is it unethical, in your opinion?

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

Description:  Critics say the popular funds are causing stocks to swing wildly together. Finding proof is another matter.

Source: Fortune.com

Date: 01/27/2012

Link:  http://finance.fortune.cnn.com/2012/01/27/etfs-market-swings/?iid=SF_F_Lead

Questions for discussion:

  • Summarize the reasons ETFs are blamed.
  • Do you agree with these views?

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

Description:  Leaders of the world’s biggest banks touted the virtues of austerity at the World Economic Forum in Davos — for themselves, not just for over-indebted governments.

Source: Bloomberg.com

Date: 01/26/2012

Link:  http://www.bloomberg.com/news/2012-01-26/incredible-shrinking-bankers-at-davos-humbler-as-austerity-hits.html

Questions for discussion:

  • According to the report, what are the key messages being sent to the banking industry?
  • How do you think managers will respond?

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

Description:  When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president. But as Steven P. Jobs of Apple spoke,President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?

Source:  NYTimes.com

Date: 01/22/2012

Link to article:   http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?hp

Link to video: http://www.nytimes.com/interactive/2012/01/20/business/the-iphone-economy.html?ref=business

Questions for discussion:

  • How does Apple illustrate the global nature of business today?
  • Why, according to the report, will these manufacturing jobs never return to the U.S.?
  • Do you agree with this view?
  • What does this report suggest managers do in order reduce the loss of manufacturing employment?
  • How can future employees – in the U.S. and elsewhere – prepare for work in a global market for jobs?
  • Is there a role for governments here?

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

Description:    With the stock up 120% in the last three years, Nike pushes more retail in emerging markets.

Source: CNNMoney.com – video report

Date: 01/20/2012

Link: http://money.cnn.com/video/news/2012/01/20/n_nike_china_oil.cnnmoney/

Questions for discussion:

  • Why are inventories a concern for a company like Nike?
  • Do you think the growth prospects are good for the company?
  • What level of growth do you believe is realistic? Explain your thinking.
  • How do oil prices affect the company?

Posted by & filed under Company Analysis, Financial analysis.

Description: Google’s fourth-quarter earnings rise but come in below analysts’ targets, and that doomed the search firm’s stock in late trades. Currency and tax issues, combined with a recent rally, set up the shares for a fall, according to MarketWatch tech editor Dan Gallagher. Lauren Rudser reports.

Source:  Marketwatch.com – video report

Date: 01/05/2012

Link:  http://www.marketwatch.com/video/asset/google-rarely-misses-estimates-so-what-happened/EF182A02-BD36-4A3F-8865-3E96A04E5C83

Questions for discussion:

  • Summarize what happened at Google, according to this report.
  • Do you think now is a good opportunity to pick up Google stock or is this the beginning of a trend?

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

Description:  Reduced risk has translated into a return on shareholder’s equity that’s more akin to a sleepy regulated utility than a top investment firm.

Source: Fortune.com

Date: 01/20/2012

Link:  http://finance.fortune.cnn.com/2012/01/20/bank-earnings-shareholder-return/?iid=SF_F_Lead

Questions for discussion:

  • Why are bank stock returns expected to be reduced?
  • Do you agree with the explanation?