Don’t forget about commodities

Posted by & filed under Company Analysis, Market Analysis.

Description: Commodities surged last year on strong emerging markets and a weak dollar, but investors wonder if the momentum can last through 2011.

Source:  CNNMoney.com – video report

Date: 01/13/2011

Link: http://money.cnn.com/video/news/2011/01/13/n_bz_commodities_2010.cnnmoney/

Questions for discussion:

  • Summarize the opinions presented in this report.
  • Do you agree with them?
  • Do you believe that “speculation” rather than real user “demand” is driving commodity prices?
  • How might investors respond to this information?
  • How might commodity producing based companies respond?

Skype CEO: Only 6% of users pay

Posted by & filed under Company Analysis, Financial analysis.

Description: Despite a small base of paying users, the VOIP and video chat service is still profitable.

Source:  CNNMoney.com – video report

Date: 01/14/2011

Link:  http://money.cnn.com/video/technology/2011/01/13/t_connected_skype.fortune/

Questions for discussion:  

  • Can Skype be sustainable when only 6% of users pay anything for services?
  • How can Skype convert the growing customer base to more revenue generation?
  • Do you think Skype will eventually be replaced by some other competitor?
  • Do you think Skype would be a good investment as an IPO?

Why the Private Sector Still Isn’t Hiring

Posted by & filed under Company Analysis, Management Issues.

Description: CEOs don’t want to increase employment until they know the recovery is real—and it won’t be until they hire.

Source: Businessweek.com

Date: 01/13/2011

Link: http://www.businessweek.com/magazine/content/11_04/b4212022530815.htm

Questions for discussion:

  • Summarize the reasons for the reluctance of businesses to hire more employees?
  • How does this decision affect cash flow and budgets?
  • How does this decision affect financial statements?
  • What would trigger a change in attitude towards increasing hiring?

JPMorgan Posts Strong Profit as Crisis Fades

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

Description: JPMorgan Chase kicked off the banking industry’s earnings season on Friday with news that its profits surged 48 percent last year amid signs that consumers and businesses had slowly regained their balance in the aftermath of the financial crisis.

Source:  NYTimes.com
 
Date: 01/14/2011

Link: http://dealbook.nytimes.com/2011/01/14/jpmorgans-fourth-quarter-profits-rise-47-to-4-8-billion/?ref=business

Questions for discussion: 

  • Summarize the explanation for the recovery reported by JP Morgan.
  • How might  investors be expected to respond to this stock, the banking industry, and the general stock market?
  • What would you advise investors to do today?

Corporate tax reform: Talk grows louder

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

Description:  There’s the sweet deal for companies that make Puerto Rican rum. Or the tax break intended to promote U.S. manufacturing but that’s so broad it can include the making of hamburgers. The list goes on. Welcome to the American corporate tax code, which is front and center for a possible overhaul.

Source:  CNNMoney.com

Date: 01/15/2011

Link:  http://money.cnn.com/2011/01/14/news/economy/corporate_tax_reform/index.htm

Questions for discussion:

  • Summarize the key points made in this report.
  • Where do you think tax changes are likely to be made?
  • How will these changes affect financial planning within firms?
  • How can businesses be expected to respond?
  • How would you deal with the tax code?

BullHorn: Can you see past the hype?

Posted by & filed under Company Analysis, Market Analysis.

Description: All electronics are hyped at CES, so pick the best ones. Rare metals are risky, while railroads are a solid bet.

Source:  CNNMoney.com – video report

Date: 01/07/2011

Link: http://money.cnn.com/video/markets/2011/01/07/mkts_bh_ces_metals_rail.cnnmoney/

Questions for discussion:

  • Summarize the opinions presented in this report.
  • Do you agree with them?
  • Which of the stocks mentioned would present the greatest risk to an investor?
  • Which of the stocks mentioned would present the least risk?
  • Why are the railroad stocks good indicators for the economy as a whole?
  • What other stocks would also represent the economy?

Facebook Moves Toward IPO

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

Description: Facebook is poised to cross the 500 shareholder mark this year, so is an IPO in the works? Kelsey Hubbard gets a Facebook “status update” from the WSJ’s Dennis Berman.

Link: http://www.businessweek.com/news/2011-01-07/apple-s-overture-to-blackstone-cfo-may-presage-deals.html
Questions for discussion:

  • Summarize the reasons Apple is expected to go looking for acquisitions.
  • Do you think Tosi would be a good fit at Apple?

Apple’s Overture to Blackstone CFO May Presage Deals

Posted by & filed under Company Analysis, Management Issues.

Description: Apple Inc.’s approach to Blackstone Group LP Chief Financial Officer Laurence Tosi about becoming finance chief may be a sign Steve Jobs is ready to pick up the dealmaking pace.

Source: Businessweek.com

Date: 01/07/2011

Link: http://www.businessweek.com/news/2011-01-07/apple-s-overture-to-blackstone-cfo-may-presage-deals.html

Questions for discussion:

  • Summarize the reasons Apple is expected to go looking for acquisitions.
  • Do you think Tosi would be a good fit at Apple?

After a Long Ascent, Turbulence for Bonds

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

Description: WHEN the stock market plummeted in 2008, investors began to pour money into bond mutual funds, which generally performed quite well — at least until this past December.

Source:  NYTimes.com
 
Date: 01/08/2011

Link: http://www.nytimes.com/2011/01/09/business/mutfund/09bond.html?ref=mutfund

Questions for discussion: 

  •  
    • Summarize performance of bonds over the last 12 months.
    • How have investors behaved recently?
    • Strategically speaking, what would you advise bond investors to do?

Facebook? Google is the next Google

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

Description:  Only in the fickle world of technology can a company with a market value of $200 billion and nearly 20% sales growth be considered yesterday’s news.

Source:  CNNMoney.com

Date: 01/07/2011

Link:  http://money.cnn.com/2011/01/07/technology/thebuzz/index.htm

Questions for discussion:

  • Summarize the key factors driving the valuations for Facebook and Google.
  • How do you think they will perform over the next 12 months?