It Teetered, It Tottered, It Was Bound to Fall Down

Posted by & filed under Financial Planning, Governments & Regulators, Industry Analysis.

Description: This article was adapted from “Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon,” by Gretchen Morgenson, a business reporter and columnist for The New York Times, and Joshua Rosner, a managing director at the independent research consultant Graham Fisher. The book is to be published on Tuesday by Times Books.

Source: NYTimes.com

Date: 05/21/2011

Link: http://www.nytimes.com/2011/05/22/business/22excerpt.html?ref=business

Questions for discussion:

  • Summarize the thesis of the article.
  • Are there items you agree or disagree with?
  • What lessons should be learned from this period?

Gap, Aeropostale unraveled

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

Description: While they might not portend the End Times, signs of Friday’s route of the low-end retailers could certainly be discerned months ago in the commodities markets.

Source: Marketwatch.com

Date: 05/20/2011

Link: http://www.marketwatch.com/story/gap-aeropostale-unraveled-2011-05-20

Questions for discussion:

  • Summarize the issues raised in the report about commodities and the performance of these companies.
  • What do you think the near future portends for commodities and these retailers?

Microsoft’s Skype call

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

Description: Microsoft agrees to buy Skype for $8.5 billion to gain a bigger presence on the Internet, where Bing and MSN have been losing money.

Source: CNNMoney.com – video report

Date: 05/11/2011

Link: http://money.cnn.com/video/markets/2011/05/10/mkts_skype0510.cnnmoney/

Questions for discussion:

  • Do you think this is a good fit for both companies?
  • How can Microsoft leverage the value of Skype to generate more revenues?
  • Do you think Microsoft paid too much for Skype?
  • Why do you think eBay sold its stake in Skype?

Cody Willard: Why Apple is going to $2,000

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

Description: Cody Willard makes his case for Apple at $2,000 and explains why it could be the first $2 trillion company in market cap.

Source: Moneywatch.com – video report

Date: 05/11/2011

Link: http://www.marketwatch.com/video/asset/cody-willard-why-apple-is-going-to-2000/4C6F5D5C-B4BC-4737-871C-E5DA3D667949

Questions for discussion:

  • Summarize the reasons given by the analyst that support his belief in Apple stock rising to such extraordinary levels.
  • Do you agree with his assessment?
  • What else might support this view of future success?
  • What could possibly go wrong over the next 5 to 10 years?

OpenTable, broken stock? A lesson in the dangers of tech IPOs

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

Description: The company has done nearly everything right, but it’s dangerously overvalued, even for a tech company. Should Facebook, LinkedIn, and Groupon take heed?

Source: Fortune.com

Date: 05/13/2011

Link: http://tech.fortune.cnn.com/2011/05/13/opentable-broken-stock-a-lesson-in-the-dangers-of-tech-ipos/

Questions for discussion:

  • Summarized the essence of the report with respect to the lessons that might be learned for other technology IPOs.
  • Do you agree with the arguments?
  • What other advice would you offer?

Health Insurers Making Record Profits as Many Postpone Care

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

Description: The nation’s major health insurers are barreling into a third year of record profits, enriched in recent months by a lingering recessionary mind-set among Americans who are postponing or forgoing medical care.

Source: NYTimes.com

Date: 05/13/2011

Link: http://www.nytimes.com/2011/05/14/business/14health.html?ref=business

Questions for discussion:

  • Summarize the financial relationships between health insurers, providers, and clients?
  • What is the current situation for the industry?
  • How likely is the situation to remain this way?
  • Is paying more dividends and raising reserves a good strategy?
  • How should financial managers prepare for the change when it comes?

Housing crash is getting worse: report

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

Description: If you thought the housing crisis was bad, think again.

Source: Marketwatch.com

Date: 05/09/2011

Link: http://www.marketwatch.com/story/housing-crash-is-getting-worse-2011-05-09?siteid=nwtwk

Questions for discussion:

  • Summarize the issues raised in the report.
  • What is your view about residential real estate prices and their influence on the economy?
  • How would you approach this market, as an investor in builders?

BullHorn: Metal meltdown

Posted by & filed under Economic Analysis.

Description: Silver has plunged, gold has taken a hit and the commodity bubble may be finally bursting.

Source: CNNMoney.com – video report

Date: 05/06/2011

Link: http://money.cnn.com/video/markets/2011/05/06/mkts_bullhorn0506.cnnmoney/

Questions for discussion:

  • Summarize the analysis presented in this report.
  • Do you agree that the commodities bubble is bursting?
  • What do you believe is the reason for the recent price drops?
  • Is this good or bad for the economy in general and for other businesses in particular?

Preventing Future Flash Crashes all but Impossible

Posted by & filed under Governments & Regulators.

Description: MarketWatch columnist Mark Hulbert says research suggests massive stock slumps such as the “flash crash” can’t be prevented and remain a rare, but consistent feature of all stock markets.

Source: Moneywatch.com – video report

Date: 05/05/2011

Link: http://www.marketwatch.com/video/asset/preventing-future-flash-crashes-all-but-impossible/0E8C8C79-1A17-45AE-AA67-68B6722D0696

Questions for discussion:

  • What does the research suggest about stock market behavior?
  • How should investors respond to this information and deal with the risks of sudden market drops?

Oil price collapse pays off for one speculator

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

Description: For the last several weeks, oil trader Stephen Schork has been betting that prices would fall. Instead, they kept rising. And every day they ticked higher, he lost money.

Source: CNNMoney.com

Date: 05/06/2011

Link: http://money.cnn.com/2011/05/06/markets/oil_prices_speculators/index.htm

  • Questions for discussion:
  • How did Stephen Schork decide that the time was ripe for shorting oil?
  • What contributed to oil’s rise since February and its recent fall?
  • What factors might contribute to a rapid return to higher prices?