The myth of China’s building boom

Posted by & filed under Economic Analysis.

Description: Jim Chanos is outspokenly bearish on China and it’s construction economy.

Source:  CNNMoney.com – video report

Date: 12/03/2010

Link: http://money.cnn.com/video/fortune/2010/12/03/f_chanos_china_bubble.cnnmoney/

Questions for discussion:

  • Summarize the basic points presented in this report?
  • Do you agree with the opinions and arguments made?
  • What is the message to investors?
  • Are there ways to mitigate the risks described in the report?

U.S. Stocks Gain as Commodities Rally Offsets Jobs Data

Posted by & filed under Economic Analysis, Market Analysis.

Description: Bloomberg’s Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks rose, extending the biggest weekly gain in a month, as a rally in energy and metals producers after the dollar fell offset concern that slower-than-estimated growth in payrolls will hamper the economy. Bloomberg’s Pimm Fox also speaks.

Source: Bloomberg.com – video report
 
Date: 12/03/2010

Link: http://www.bloomberg.com/video/65011244/

Questions for discussion: 

  • Summarize the recent stock market movements
  • What were the reasons presented that explain these movements?
  • Why are the employment numbers so important to investors?
  • What is your projection for the economy over the next six months?

Groupon reportedly spurns Google’s billions

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

Description: Groupon Inc. has walked away from a Google Inc. acquisition offer worth as much as $6 billion, according to reports late Friday, appearing to set the stage for a Groupon IPO as soon as next year.

Source: Marketwatch.com – video report
 
Date: 12/04/2010

Link: http://www.marketwatch.com/story/groupon-reportedly-spurns-google-merger-2010-12-04

Questions for discussion: 

  • Do you think Groupon is overvalued in this proposed deal?
  • How would you evaluate Groupon’s fair value from an acquisitions point of view?
  • Why would the acquisition affect the value of Google shares?
  • Would Groupon investors be better off going with an IPO instead?

Forget Hemlines. Ties May Be the New Indicator

Posted by & filed under Financial analysis, Market Analysis.

Description:  Armed with renewed confidence, men are heading to stores in greater numbers this season.

Source:  Businessweek.com
 
Date: 12/02/2010

Link: http://www.businessweek.com/magazine/content/10_50/b4207025554860.htm

Questions for discussion: 

  • What is the economic significance of the increased spending on men’s suits?
  • What is thinking that would suggest a correlation exists between men spending behavior and the overall economy?

Gold rush resumes with another record high

Posted by & filed under Economic Analysis.

Description:  Gold prices jumped back above $1,400 an ounce Friday to settle at a fresh record-high as the U.S. dollar slid following a surprisingly weak report on the nation’s job market.

Source:  CNNMoney.com

Date: 12/04/2010

Link:  http://money.cnn.com/2010/12/03/markets/gold/index.htm

Questions for discussion:

  • Why has gold continued to move up in price?
  • Where is the demand coming from?
  • Do you believe gold still represents a good investment today?

Tiffany shows its sparkle

Posted by & filed under Company Analysis, Economic Analysis.

Description: The season of bling in full swing, as Tiffany reports a 14% surge in sales, and Signet gets a boost from record gold prices.

Source:  CNNMoney.com – video report

Date: 11/24/2010

Link: http://money.cnn.com/video/markets/2010/11/24/mkts_tiffany_signet.cnnmoney/

Questions for discussion:

  • Summarize the financial results reported?
  • Do you believe these results suggest a positive change in consumer attitude toward more discretionary purchases?
  • Would you be a buyer of these shares?
  • Do you believe these results suggest a broader change in economic activity?

BofA in a bear trap

Posted by & filed under Company Analysis, Economic Analysis.

Description: Bank of America’s financial woes deepen, some readers of “The Buzz” believe the stock is undervalued, others remain furious at the bank.

Source: CNNMoney.com – video report

Date: 11/26/2010

Link: http://money.cnn.com/video/news/2010/11/23/n_bz_bofa.cnnmoney/

Questions for discussion: 

  • Do you believe BofA is a bear trap?
  • Summarize the key points presented in the report about BofA.
  • Do you agree with the opinions presented?
  • How would you deal with the stock, from a strategic investing point of view?
  • What are the financial management implications for the bank?

Rosenberg Interview on Holiday Shopping, U.S. Economy

Posted by & filed under Economic Analysis.

Description: David Rosenberg, chief economist at Gluskin Sheff & Associates, talks about the outlook for the holiday-shopping season. Rosenberg, speaking with Sara Eisen and Erik Schatzker on Bloomberg Television’s “InsideTrack,” also discusses the prospects for the U.S. economy.

Source: Bloomberg.com – video report
 
Date: 11/26/2010

Link: http://www.bloomberg.com/video/64814870/

Questions for discussion: 

  • Summarize the opinions presented in the report.
  • Do you agree with them?

Bank Dividends May Be Coming Back

Posted by & filed under Company Analysis, Industry Analysis.

Description:  JPMorgan Chase, Wells Fargo, and other large players may soon follow Comerica’s lead in boosting their quarterly payouts.

Source:  Businessweek.com
 
Date: 11/24/2010

Link: http://www.businessweek.com/magazine/content/10_49/b4206050293663.htm

Questions for discussion: 

  • What is the significance of the return of bank dividend payments?
  • What advantages and disadvantages are there to the banks that decide to make dividend payments again?
  • Would you be a buyer of bank stocks today?

Taxing the Rich: It’s All Relative

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

Description:  IT’S not just Tea Party activists who are angry about taxes. A much larger and more diverse group appears outraged that Congress is considering allowing the Bush tax cuts to expire at year-end for families earning more than $250,000 and for individuals earning more than $200,000

Source:  NYTimes.com

Date: 11/27/2010

Link:  http://www.nytimes.com/2010/11/28/business/28view.html?ref=business

Questions for discussion:

  • What is the basic argument for and against “taxing the rich” more?
  • Why, according to the writer of this article, will it have no impact on the economy?
  • Do you agree?
  • Do you believe it would impact the markets?