Eyeing Inflation with Liz Ann Sonders

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

Description: Liz Ann Sonders, chief investment strategist at Charles Schwab & Co., gives her view on inflation in the U.S. now and inflationary signs to look for in the year ahead. Dow Jones’ Veronica Dagher has the interview.

Source: Marketwatch.com – video report

Date: 02/23/2011

Link:  http://www.marketwatch.com/video/asset/eyeing-inflation-with-liz-ann-sonders/5658E1E7-2BD4-498B-A73C-A7CC24C49E96

Questions for discussion: 

  • Do you agree with the analysis presented in this report?
  • How should investors respond to the forecasts presented for an improving economy? 
  • How should financial managers prepare for the types of inflation described?
  • How will cash flows be affected?

Buffett Says His `Trigger Finger Itchy’ to Buy, With $38 Billion in Wallet

Posted by & filed under Market Analysis.

Description:  Warren Buffett said his “trigger finger is itchy” for takeovers after cash holdings at his Berkshire Hathaway Inc. climbed to $38.2 billion.

Source: Bloomberg.com

Date: 02/26/2011

Link: http://www.bloomberg.com/news/2011-02-26/buffett-says-his-trigger-finger-itchy-to-buy-with-38-billion-in-wallet.html

Questions for discussion:  

  • How might the fact that Warren Buffet is planning to go shopping for stocks influence other investors?
  • Describe Buffett’s strategic thinking about investing at this time.

Charlie Sheen is out, but money keeps pouring in

Posted by & filed under Company Analysis, Financial analysis.

Description: The good news for the producers of “Two and a Half Men” is that Charlie Sheen’s meltdown happened during the show’s eighth season, and not the first.

Source: CNNMoney.com

Date: 02/25/2011

Link: http://money.cnn.com/2011/02/25/news/companies/charlie_sheen_two_and_a_half_men/index.htm

Questions for discussion: 

  • Summarize the financial fortunes related to the show?
  • How does syndication impact financial planning for television production?
  • Do you think the publicity will help or hurt cash flow?

GM shares hit post-IPO low, oil risk trumps profit

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

Description:   General Motors Co posted fourth-quarter results that topped Wall Street expectations, but its shares fell below their IPO price as investor concerns shifted to the pressure from rising oil prices and higher costs of launching and selling new cars.

Source:  Reuters.com
 
Date: 02/24/2011

Link: http://www.reuters.com/article/2011/02/24/us-gm-idUSTRE71N0ZD20110224

Questions for discussion: 

  • Summarize the financial results reported for GM?
  • Do you share the concerns that rising oil prices can have on the firm?
  • How should financial managers respond in the short-run to deal with this concern?
  • How should investors regard the firm?

China’s hold on rare earths

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

Description: As China stockpiles rare earth minerals used to manufacture consumer items like iPhones and cameras, the U.S. is facing a growing shortage.

Source:  CNNMoney.com – video report

Date: 02/18/2011

Link:  http://money.cnn.com/video/markets/2011/02/18/mkts_rare_earths_china.cnnmoney/

Questions for discussion:

  • Do you think domestic development of rare earth mines should proceed?
  • How would you expect prices to move over the next few years?
  • How should manufacturers plan for this environment?

American dream still home ownership

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

Description: KB Home CEO Jeffrey Mezger says recovery is taking place in California and Texas and foreclosed homes are finding buyers.

Source: CNNMoney.com – video report

Date: 02/18/2011

Link:  http://money.cnn.com/video/news/2011/02/17/n_kb_home_lookahead.cnnmoney/

Questions for discussion: 

  • Do you agree with the analysis presented in this report?
  • How would investors be expected to react to the forecasts presented for improving real estate markets?
  • Would you be an investor in KB today?

Buffett Says Pricing Power Beats Good Management When Evaluating Companies

Posted by & filed under Management Issues.

Description:  Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway Inc., said he rates businesses on their ability to raise prices and sometimes doesn’t even consider the people in charge.

Source: Bloomberg.com

Date: 02/18/2011

Link: http://www.bloomberg.com/news/2011-02-18/buffett-says-pricing-power-more-important-than-good-management.html

Questions for discussion:  

  • What does Warren Buffet have to say about the importance of management and the ability of the company to raise prices?
  • Do you agree with this view?
  • What does this view suggest about the performance-based compensation packages paid to managers?
  • What does this thinking suggest about the way financial managers are compensated?

NYSE Euronext, Deutsche Boerse to merge

Posted by & filed under Financial analysis.

Description: Deutsche Boerse AG on Tuesday unveiled a widely expected deal to pay about $9.5 billion to acquire NYSE Euronext, a transaction that would create an exchange powerhouse with annual revenue of $5.4 billion.

Source: Marketwatch.com

Date: 02/15/2011

Link: http://www.marketwatch.com/story/nyse-euronext-deutsche-boerse-to-merge-2011-02-15?siteid=nwtwk

Questions for discussion: 

  • Do you believe there are any drawbacks to this deal for investors or companies served in either market?
  • Do you believe the evaluations make sense?

Here comes the dot-com boom 2.0

Posted by & filed under Growth & Valuation.

Description:   Facebook. Twitter. LinkedIn. Zynga. Groupon. LivingSocial. Will those be the Google Inc. (GOOG 630.08, +4.82, +0.77%) , eBay Inc.(EBAY 34.53, -0.16, -0.46%) and Amazon.com Inc. (AMZN 186.50, -1.26, -0.67%) of the next big wave of Internet companies going public, which appears to be happening as we speak?

Source:  Marketwatch.com
 
Date: 02/18/2011

Link: http://www.marketwatch.com/story/here-comes-the-dot-com-boom-20-2011-02-18?siteid=nwtwk

Questions for discussion: 

  • Do you agree with this analysis?
  • Is this another bubble in the making?
  • How should investors evaluate these businesses?
  • Which metrics should be used and which should be avoided?

Facebook’s $50,000 factory jobs

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

Description: Facebook is opening a data center in April in Prineville, Oregon, and has promised to create jobs in exchange for tax breaks.

Source:  CNNMoney.com – video report

Date: 02/11/2011

Link:  http://money.cnn.com/video/technology/2011/02/11/t-facebook-oregon-data-jobs.cnnmoney/

Questions for discussion:

Summarize the financial structure of this investment by Facebook from the firm’s point of view and then from the other stakeholders.

  • What are the key financial benefits to each stakeholder?
  • What are the drawbacks to this deal?
  • Does this financial structure act as a subsidy by the government, employees, or other stakeholders?
  • How might this financing model impact other communities and firms?