Why gold is a bad investment

Posted by & filed under Industry Analysis.

Description:  Precious metal lures susceptible buyers into a Midas crush

Source: Marketwatch.com
 
Date: 11/12/2010

Link: http://www.marketwatch.com/story/why-gold-is-a-bad-investment-2010-11-12

Questions for discussion:

  • How do you explain the run up in gold prices?
  • Do you agree with the assessment of risk presented in the report?
  • Would you invest in gold today?
  • Would you invest in gold mining companies?
  • What are the some possible scenarios over the next six month that would dramatically affect the price of gold?

The slaying of the Celtic Tiger

Posted by & filed under Company Analysis, Financial analysis, Governments & Regulators, Growth & Valuation.

Description: Anglo Irish Bank’s unfinished head office pokes into the sky on Dublin’s North Wall Quay, a silent testimony to the rise and fall of the Celtic Tiger.

Source:  TheGlobeandMail.com
 
Date: 11/12/2010

Link:  http://www.theglobeandmail.com/report-on-business/economy/the-slaying-of-the-celtic-tiger/article1797583/

Questions for discussion: 

  • Summarize the history of the Irish economic experience.
  • What do you think will happen to Irish markets over the near future?

Fixing Washington’s balance sheet

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

Description: Former U.S. Comptroller General David Walker discusses inflationary risks, taxes and balancing the budget.

Source:  CNNMoney.com – video report

Date: 11/05/2010

Link: http://money.cnn.com/video/news/2010/11/05/n_la_debt_taxes_fed_dollar.cnnmoney/

Questions for discussion:

  • What are the risks described by Walker?
  • What is his fundamental recommendation to government and the Federal Reserve?
  • What do you think will happen?
  • Given these expectations, what advice would you give investors and corporate financial managers?

Wall Street Soars After Election

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

Description: Business and economics correspondent Rebecca Jarvis explains why Wall Street is doing well while unemployment is still high.

Source:  BNET.com – video report

Date: 11/05/2010

Link: http://moneywatch.bnet.com/investing/video/wall-street-soars-after-election/481308/?tag=col1;fd-banner-roto

 Questions for discussion: 

  • Summarize the key points presented in the report.
  • Why did the stock market respond so favorably?
  • What do you think will happen to markets for the balance of the year?

AIG loses $2.4 billion on asset sales

Posted by & filed under Company Analysis, Financial analysis.

Description:  AIG said Friday that it lost $2.4 billion in the third quarter on sales of insurance units, proceeds of which it plans to use to pay back the U.S. government.

Source:  CNNMoney.com
 
Date: 11/05/2010

Link: http://money.cnn.com/2010/11/05/news/companies/aig/index.htm

Questions for discussion: 

  • What were the reasons for AIG losses?
  • How should investors react to this new information?
  • What is the significance of the resulting new financial structure for management and for investors?

Alcatel Lucent Sees ‘Turning Point’ After Deals in U.S. and China

Posted by & filed under Company Analysis, Industry Analysis.

Description: Alcatel Lucent, which has struggled in the wake of its 2006 merger, said Thursday that it had reached a “turning point” after clinching $5.7 billion in deals to build high-speed wireless networks and supply other gear for the biggest mobile operators in the United States and China.

Source:  NYTimes.com

Date: 11/04/2010

Link: http://www.nytimes.com/2010/11/05/technology/05alcatel.html?src=me&ref=technology

Questions for discussion:

  • Summarize the key reasons given for the firm’s optimism.
  • Do you agree that the firm has reached a “turning point” in operations?
  • What is the one key reason for your assessment?
  • What does this report suggest about the restructuring process in this industry?
  • Would you be a buyer of this firm or any others in this industry?

Whole Foods reconsiders dividend

Posted by & filed under Company Analysis.

Description:  Turnaround gains strength. Year-to-date, shares up 72%

Source: Marketwatch.com
 
Date: 11/04/2010

Link: http://www.marketwatch.com/story/momentum-builds-whole-foods-weighs-dividend-2010-11-04

Questions for discussion:

  • How do you explain the turnaround in share value at this firm?
  • What is your assessment of the various financial metrics reported in the article?
  • Would you invest in the firm today?

Insider trading probe in Tokyo

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

Description: The Tokyo Stock Exchange launched an official examination after global complaints of widespread insider trading.

Source:  CNNMoney.com – video report

Date: 10/29/2010

Link: http://money.cnn.com/video/news/2010/10/29/n_lah_japan_insidertrade.cnnmoney/

Questions for discussion:

  • What is the essence of the claim that there was unfair trading involved?
  • How would investors be expected to react while the claims are being investigated?
  • What are the ramifications for the exchange and foreign investment in Japan, if the charges are found to be true?

Buying Into Emerging-Markets Consumers

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

Description: Strong economic growth is bringing great wealth to developing countries and giving rise to a consumer class with a lengthy shopping list. Tom Sowanick, CIO at OmniVest Group, tells MarketWatch’s Jonanthan Burton about consumer-sector opportunities across Asia and Latin America.

Source: Marketwatch.com  – video report

Date: 10/27/2010

Link: http://www.marketwatch.com/video/asset/buying-into-emerging-markets-consumers/9975C8F8-C9B1-442B-845E-9D8725A6FC31

Questions for discussion: 

  • What does this report say about foreign investment in emerging markets?
  • Do you agree with the recommendations made?

U.S. dollar falls vs yen; FX options flag QE worry

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

Description:  Uncertainty over a fresh round of U.S. monetary easing weighed on the dollar on Friday, prompting investors in the options market to hedge against any volatility arising from the Federal Reserve decision.

Source:  Reuters.com
 
Date: 10/29/2010

Link: http://www.reuters.com/article/idUSTRE69D46V20101029

Questions for discussion: 

  • What are the reasons reported for recent movements in these currencies?
  • How should financial managers react to this activity?
  • How should investors react to this activity?
  • Where do you believe these currencies will be in six to twelve months time?
  • Why do you believe this will happen?