3 big stocks facing Borders-like trouble

Posted by & filed under Company Analysis, Management Issues.

Description: Borders Group Inc., like Blockbuster before it, failed to surprise Wall Street as it has limped into oblivion. The second-biggest U.S. bookstore chain won bankruptcy court approval last week to liquidate hundreds of stores in an attempt to bring in $175 million to satisfy its creditors.

Source: Marketwatch.com
 
Date: 07/28/2011

Link:  http://www.marketwatch.com/story/3-big-names-about-to-go-bust-like-borders-2011-07-28

Questions for discussion:

  • Summarize the key points made in the article.
  • Do you agree with the analysis?
  • Would you short the shares of these companies?

BullHorn: Zillow stock for sale

Posted by & filed under Company Analysis.

Description:   There’s plenty of hype surrounding web services like Pandora, LinkedIn, and now Zillow. But can their business plans keep investors coming?

Source: CNNMoney.com – video report

Date: 07/21/2011

Link:  http://money.cnn.com/video/markets/2011/07/20/mkts_bh_zillow.cnnmoney/

Questions for discussion:

  • Summarize the commentary made for each of these stocks.
  • Would you advise investors to buy, sell or hold any of them?

News Hub: Dow Steamrolled by Caterpillar

Posted by & filed under Company Analysis, Economic Analysis, Market Analysis.

Description: Blue chips slipped, but finished with a strong weekly advance, as investors weighed Caterpillar’s disappointing results against a new agreement on a Greek financing plan. Laura Mandaro has details.

Source: Marketwatch.com – video report

Date: 07/22/2011

Link:  http://www.marketwatch.com/video/asset/news-hub–dow-steamrolled-by-caterpillar/D5F42C53-7D15-422C-AE7C-C14485D2E16E

Questions for discussion:

  • Summarize the significance of Caterpillar’s results and stock movement.
  • What does the continuing rise of gold suggest about the direction of economy, the US dollar, interest rates, and inflation?
  • As an investor, do you see value in the companies in the Dow today?

Nokia to Cut Costs More After Loss

Posted by & filed under Company Analysis, Industry Analysis.

Description: The two largest European makers of telecommunications equipment, Nokia and Ericsson, announced plans Thursday to continue or accelerate cost-cutting efforts in the face of rising competition, internal reorganizations and weak demand in North America.

Source:  NYTimes.com

Date: 07/21/2011

Link:  http://www.nytimes.com/2011/07/22/technology/nokia-and-ericsson-announce-cost-cutting.html?ref=business

Questions for discussion:

  • How can management mitigate the stress on cash flow during this transition period?
  • Could the damage done to the share value have been avoided?
  • What would you advise investors to do now?

EBay Profit Drops After Acquisition Costs Eat Into Earnings

Posted by & filed under Company Analysis, Management Issues.

Description: After making at least nine acquisitions in the past year, EBay reported a drop in second-quarter net income and forecast modestly reduced earnings for the third quarter

Source: Businessweek.com
 
Date: 07/21/2011

Link:   http://www.businessweek.com/technology/ebay-profit-drops-after-acquisition-costs-eat-into-earnings-07212011.html

Questions for discussion: 

  • Summarize the key points made in the report.
  • What are the implications for the firm?
  • How should management and shareholders view these metrics?
  • How should potential investors?

Time to buy News Corp.?

Posted by & filed under Company Analysis, Management Issues.

Description: If all strategic options are on the table for Rupert Murdoch’s media empire, there may be good money to be made on its shares.

Source: Fortune.com
 
Date: 07/21/2011

Link:  http://finance.fortune.cnn.com/2011/07/21/time-to-buy-news-corp/
Questions for discussion:

  • Summarize the key points made in the article.
  • Would you buy the shares of News Corp. today?

Demystifying the Euro bank test

Posted by & filed under Economic Analysis.

Description:   CNN’s Jim Boulden blasts through the jargon of the European bank stress tests.

Source: CNNMoney.com – video report

Date: 07/15/2011

Link:  http://money.cnn.com/video/news/2011/07/15/n_euro_bank_stress.cnnmoney/

Questions for discussion:

  • Summarize what the “tests” are supposed to show.
  • Are there any weaknesses to the test?
  • How would you advise investors to deal with the current conditions?

Markets Hub: Icahn Makes Surprise Bid for Clorox

Posted by & filed under Company Analysis.

Description: Carl Icahn made a surprise bid for Clorox, and suggested the company shop itself around as well. It’s a classic Icahn move, Deal Journal’s Shira Ovide reports.

Source: Marketwatch.com – video report

Date: 07/15/2011

Link:  http://www.marketwatch.com/video/asset/markets-hub-icahn-makes-surprise-bid-for-clorox/9A0BE37C-095E-450E-A934-D47600F669C4

Questions for discussion:

  • What is the “classic Icahn move”?
  • What do you think he is trying to achieve?
  • What should investors do at this time?
  • What should management of Clorox do?

Eight banks fail Europe’s stress tests

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

Description: Investors may take a skeptical view of Europe’s latest stress tests after eight banks failed with a combined capital shortfall of just 2.5 billion euros ($3.5 billion).

Source:  Marketwatch.com

Date: 07/15/2011

Link:  http://www.marketwatch.com/story/eight-banks-fail-europes-stress-tests-2011-07-15

Questions for discussion:

  • What does “failure” mean, in this context?
  • What are the implications for the economies of Europe and elsewhere?
  • What would you advise investors?

Murdoch’s Mess

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

Description: News Corp.’s British newspapers have put the future of Rupert Murdoch’s empire in question

Source: Businessweek.com
 
Date: 07/14/2011

Link:  http://www.businessweek.com/magazine/murdochs-mess-07142011.html?chan=magazine+channel_top+stories

Questions for discussion: 

  • Summarize the key points made in the report.
  • What are the ethical issues here?
  • How should investors play this situation?
  • How should government respond to this situation?