Shouting into the unfunded abyss

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

Description: When the founder of an unheralded startup offered a cri de coeur about the inanities of the funding process, he heard hundreds of voices crying back.

Source: Fortune.com

Date: 05/06/2011

Link:  http://tech.fortune.cnn.com/2011/05/06/adam-neary-profitably-shouting-into-the-unfunded-abyss/

Questions for discussion:

  • Summarized the essence of the report with respect to the difficulty of finding funding.
  • Why do you think some ventures find sources of funding more easily than others?
  • Is there a solution here?

The Class That Built Apps, and Fortunes

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

Description: ALL right, class, here’s your homework assignment: Devise an app. Get people to use it. Repeat. That was the task for some Stanford students in the fall of 2007, in what became known here as the “FacebookClass.” No one expected what happened next. The students ended up getting millions of users for free apps that they designed to run on Facebook. And, as advertising rolled in, some of those students started making far more money than their professors.

Source: NYTimes.com

Date: 05/07/2011

Link: http://www.nytimes.com/2011/05/08/technology/08class.html?pagewanted=1&ref=business

Questions for discussion:

  • How is this venture capital model different from conventional thinking?
  • Do you see any flaws in the concept?
  • Is this contributing to a bubble or are the valuations paid for these apps justified?

Japan’s 4.5 trillion yen jump start

Posted by & filed under Economic Analysis.

Description: Japan is preparing a supplemental budget of 4.5 trillion yen to help the country recover from lost production due to the tsunami.

Source: CNNMoney.com – video report

Date: 04/28/2011

Link: http://money.cnn.com/video/news/2011/04/28/n_japan_economy.cnnmoney/

Questions for discussion:

  • Summarize the economic and business situation in Japan.
  • Do you believe the projections are likely to be true?
  • Which businesses would you expect to be particularly harmed during this reconstruction period?
  • Are there any companies that can be expected to benefit from the reconstruction effort?

Sokol: Berkshire shareholders react

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

Description: At Berkshire Hathaway’s annual meeting in Omaha, shareholders have very different opinions about David Sokol.

Source: CNNMoney.com – video report

Date: 04/30/2011

Link:  http://money.cnn.com/video/news/2011/04/30/n_buffett_sokol_shareholders.cnnmoney/

Questions for discussion:

  • Judging from the interviews with stockholders, do you think the firm’s management is being questioned?
  • Do you think the stock value is being affected?
  • How might this event affect succession?
  • Do you think regulators handled this case differently because of Warren Buffet’s association?

Cisco Grows Smarter

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

Description: As Starbucks and now Cisco have discovered, the wrong kind of expansion reaps painful contractions

Source: Businessweek.com

Date: 04/26/2011

Link: http://www.businessweek.com/managing/content/apr2011/ca20110421_393278.htm

Questions for discussion:

  • Summarize the issues raised in the report.
  • What is your view about Cisco’s past and future prospects?
  • What advice would you give management at this time?

Can RIM win back investors after missteps?

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

Description:   Research In Motion Ltd. lost much of its remaining support on Wall Street Friday after the company took down its estimates for the May quarter, leaving some to wonder whether the wireless-device maker can win back support from investors who have been burned by the stock this year.

Source: Marketwatch.com

Date: 04/29/2011

Link: http://www.marketwatch.com/story/can-rim-win-back-investors-after-missteps-2011-04-29

Questions for discussion:

  • Why did RIM’s shares fall so drastically?
  • Do you think the drop is justified?
  • How much is this due to poor management decision-making?
  • Would you be a buyer of RIM now?

Exxon Mobil profit nears $11 billion

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

Description: Exxon Mobil Corp. said Thursday that its first-quarter profit climbed 69% to almost $11 billon, beating Wall Street estimates, as $100-a-barrel crude prices boosted the oil company’s bottom line to levels not seen since 2008.

Source: Marketwatch.com

Date: 04/28/2011

Link:  http://www.marketwatch.com/story/exxon-mobil-profit-nears-11-billion-2011-04-28

Questions for discussion:

  • What do you think Exxon’s next quarter will look like?
  • How do you think its stock market value will respond to minor changes in oil prices?

Parties Seeking to Blame Each Other’s Policies for Gas Prices

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

Description:  Congress returns next week to a flaring brawl over oil industry profits and tax breaks, with both parties hoping to capitalize on growing public ire at high gasoline prices.

Source: NYTimes.com

Date: 04/29/2011

Link: http://www.nytimes.com/2011/04/30/business/30gas.html?ref=business

Questions for discussion:

  • Summarize the reasons for concern over rising gasoline prices?
  • How do rising fuel costs affect businesses and consumers?
  • What is the cause of higher prices?
  • How can demand be reduced individually or collectively?
  • How will this affect financial planning?

The power of the iPhone

Posted by & filed under Company Analysis, Management Issues.

Description: The sales of 2.2 million iPhones by Verizon helped Apple nearly double profits from last quarter.

Source: CNNMoney.com – video report

Date: 04/21/2011

Link:  http://money.cnn.com/video/markets/2011/04/21/n_apple_0421.cnnmoney/

Questions for discussion:

  • Summarize the financial performance by Apple?
  • Do you believe the numbers suggest a bubble forming?
  • Would you be a buyer of Apple at this time or the service providers?

digits: Google’s Answer to Groupon

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

Description: Google’s rival to services such as Groupon and LivingSocial, called Google Offers, has officially launched in some cities. Will Google dominate daily deals, or has the daily deals market grown too crowded? Plus: what it means for Groupon’s planned IPO.

Source: Moneywatch.com – video report

Date: 04/22/2011

Link: http://www.marketwatch.com/video/asset/digits-google-answer-to-groupon/C16FD858-3A59-44FA-8E56-7645A80F4EBF

Questions for discussion:

  • What contribution will this make to Google cash flow?
  • Do you think the growth at Google or Facebook will cut into cash flow at Groupon and LivingSocial?
  • How would you go about evaluating the IPO for these companies?