UPDATE 3-Perkins restaurant chain files for bankruptcy

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

Description: The owner of the Perkins and Marie Callender’s restaurant chains filed for bankruptcy on Monday with plans to close 65 of its 600 locations and cut 2,500 jobs, according to court documents. Perkins & Marie Callender Inc became the latest food company to fall victim to a sluggish recovery and soaring food prices. Last week, chicken producer Allen Family Foods tumbled into bankruptcy.

Source: Reuters.com

Date: 06/13/2011

Link: http://www.reuters.com/article/2011/06/13/perkinsandmarie-idUSN1320770720110613

Questions for discussion:

  • Summarized the reasons for these restaurant bankruptcies.
  • How have competitors gained advantage by restructuring their debts earlier than Perkins?
  • As a financial manager dealing with these restructured firms, what precautions could you take to mitigated risks?

Aflac’s comeback

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

Description:  Shares of Aflac have taken a beating lately but name recognition is helping the insurer turn things around.

Source: CNNMoney.com – video report

Date: 06/10/2011

Link:  http://money.cnn.com/video/markets/2011/06/10/mkts_mids_aflac.cnnmoney/

Questions for discussion:

  • Do you consider Aflac a good investment today?
  • How about insurance companies in general?
  • Why might recent natural and man-made disasters be interpreted as good for the insurance business?

The Supercycle: A Longer Range View of Emerging Markets

Posted by & filed under Economic Analysis, Market Analysis.

Description:  Some investment pros see the emergence of Asian and Latin American economies as a third industrial revolution—a decades-long “supercycle”

Source: Businessweek.com

Date: 06/09/2011

Link: http://www.businessweek.com/investor/content/jun2011/pi2011069_910102.htm

Questions for discussion:

  • Summarize the arguments in this report.
  • Do you agree with the fundamental points that are made?

50,000 BitTorrent users sued for alleged illegal downloads

Posted by & filed under Economic Analysis, Financial Planning, Growth & Valuation.

Description: The turn of the 21st century was rife with bitter anti-piracy lawsuits pitting studios against their potential customers, with music labels banding together to blast Napster — and its massive user base — to smithereens.

Source: CNNMoney.com

Date: 06/10/2011

Link: http://money.cnn.com/2011/06/10/technology/bittorrent_lawsuits/index.htm

Questions for discussion:

  • How can this legal intervention affect BitTorrent?
  • Is the business model fundamentally sound?
  • Would you be an investor in BitTorrent?

Man vs. Machine

Posted by & filed under Economic Analysis.

Description: In the epic battle of man versus machine, machines have a growing price advantage.

Source: NYTimes.com – video report

Date: 06/10/2011

Link:  http://economix.blogs.nytimes.com/2011/06/10/man-vs-machine/?ref=economy

Questions for discussion:

  • Summarized the essence of the report.
  • What does this report suggest to investors about a return to fuller employment and recovery?
  • What other factors affect managerial decision making?

Toyota Expects 31% Profit Slump

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

Description: Toyota Motor said Friday that it expected its annual net profit to fall almost a third from the previous year, hurt by production disruptions after the earthquake and tsunami that struck Japan in March.

Source: NYTimes.com

Date: 06/10/2011

Link: http://www.nytimes.com/2011/06/11/business/global/11toyota.html?ref=business

Questions for discussion:

  • Explain the reasons for Toyota’s drop in profits.
  • Do you think the causes will hurt sales and profits in the long run?
  • How should investors approach the stock?

Groupon IPO: Tech boom or bubble?

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

Description: Deal site Groupon and music service Pandora could continue the tech IPO boom started by LinkedIn and Renren.

Source: CNNMoney.com – video report

Date: 06/03/2011

Link: http://money.cnn.com/video/markets/2011/06/03/mkts_groupon_pandora.cnnmoney/

Questions for discussion:

  • Do you think there is a bubble forming in these tech stocks?
  • Do you think these firms are raising sufficient funds for growth purposes?
  • Why have values fallen so soon after the initial hoopla surrounding the IPO?

Fed – 0% interest fallout

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

Description: Thomas Hoenig, head of the Kansas City Federal Reserve Bank says 0% interest rates lead to inflation and economic imbalances, with an unclear long-term impact.

Source: CNNMoney.com – video report

Date: 06/01/2011

Link: http://money.cnn.com/video/news/2011/06/01/n_ss_hoenig_gps.cnnmoney/

Questions for discussion:

  • Do you agree with the economic arguments made by Mr Hoenig?
  • What are the consequences for businesses and consumers of continuing to keep interest rates too low?
  • What would your advice be to regulatory authorities?

U.S. stock investors to focus on Fed, Apple, OPEC

Posted by & filed under Economic Analysis.

Description: U.S. stock investors, bruised by five straight weeks of losses, will watch how the Federal Reserve responds to a spate of bleak economic data — which could include its Beige Book report — for an indication of whether the market will fall further.

Source: Moneywatch.com – video report

Date: 06/04/2011

Link: http://www.marketwatch.com/story/us-stock-investors-to-focus-on-fed-apple-opec-2011-06-04

Questions for discussion:

  • Summarized the essence of the report with respect to the relationship between interest rates, economic growth, and the stock market?
  • Do you agree with the positions presented?
  • What would you advise investors to do?