Emerging Markets Head for Record Bond Sales as Yields Plunge

Posted by & filed under Economic Analysis, Industry Analysis.

Description: Emerging-market borrowers are on course to sell more bonds than ever this year after yields hit record lows and developing economies rebounded faster from the credit crisis than advanced nations.

Source:  Bloomberg.com

Date: 10/01/2010

Link:  http://www.bloomberg.com/news/2010-10-01/emerging-markets-head-for-record-sales-of-bonds-as-yields-plunge-to-lows.html
 
Questions for discussion:

  • Why are emerging market bond sales soaring?
  • What risks are there to this investing strategy?
  • What advantages are there for investors?

China Will Buy Greek Bonds, Support Shipping Industry, Wen Says in Athens

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

Description:  “From the outbreak of the sovereign debt crisis in certain European countries at the start of this year I have repeatedly voiced China’s support of measures adopted by the European Union and International Monetary Fund,” said Wen, who began a tour of European capitals in Greece yesterday. “China supports a steady euro and it will not be reducing its European bond holdings.”

Source: Bloomberg.com
 
Date: 10/02/2010

Link: http://www.bloomberg.com/news/2010-10-01/china-s-wen-visits-greece-to-sign-cooperation-deals-show-confidence-in-eu.html

Questions for discussion:

  • What are the immediate consequences of the Chinese investments in Greece?
  • How can Greek bonds be expected to react, as a result of the Chinese involvement?
  • What do you think is motivating the Chinese investment strategy?
  • What would your recommendations be to investors under these new circumstances?
  • Do you think this development will affect the financial markets of other European countries that are facing economic challenges, such as Ireland and Spain?
  • How will this development affect currencies?

Gold pays off for miners, ETFs

Posted by & filed under Economic Analysis.

Description: Investors run to the precious metal as jitters about the recovery and currency market volatility increase.

Source:  CNNMoney.com – video report
  
Date: 09/23/2010

Link: http://money.cnn.com/video/markets/2010/09/23/mkts_gold_highs.cnnmoney/

Questions for discussion:

  • Summarize the analysis presented about gold and gold related investments.
  • Do you agree with this analysis?
  • What is your prediction for gold over the next 12 months and for the next 5 years?
  • What is the basis for your predictions?
  • How would you recommend investors play the current volatility in gold and currencies?
  • As a financial manager of a firm affected by currencies and commodities, what would you be doing to mitigate the current risk levels?

Housing market rebounds — sort of

Posted by & filed under Economic Analysis, Industry Analysis.

Description:  Although construction company shares and new home starts are up, Buzz readers are skeptical about a recovery in the housing sector

Source:  CNNMoney.com – video report
 
Date: 09/22/2010

Link: http://money.cnn.com/video/news/2010/09/22/n_bz_housing.cnnmoney/

Questions for discussion:

  • Summarize the range of commentary made about the housing market.
  • Do you agree with any of the analysis presented?
  • How do you think potential home buyers will behave in the next six months?
  • How do you think home builders will respond to the current conditions?
  • What advice would you suggest to financial managers at home building firms?
  • What advice would you give to investors in the stocks of home builders at this time?

Facebook Sells Your Friends

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

Description:  How Facebook plans to leverage its 550 million users into the greatest advertising juggernaut since … O.K., only since Google. That’s still huge.

Source:  Businessweek.com
 
Date: 09/22/2010

Link: http://www.businessweek.com/magazine/content/10_40/b4197064860826.htm

Questions for discussion: 

  • Summarize the financial evaluations made in the article for Facebook?
  • As an investor, how would you play Facebook?
  • What would your strategic planning be as a financial manager at this firm?

U.S. REITs Use Stock Sales to Grow After `Balance-Sheet Repair’

Posted by & filed under Economic Analysis, Industry Analysis.

Description: U.S. real estate investment trusts are selling shares to fund property acquisitions after using record cash from equity offerings last year to reduce debt and cover dividends.

Source:  Bloomberg.com

Date: 09/24/2010

Link:  http://www.bloomberg.com/news/2010-09-24/u-s-reits-balance-sheet-repair-gives-way-to-deals-as-stock-sales-advance.html
 
Questions for discussion:

  • How are these firms restructuring their finances?
  • What is driving this behavior?
  • Do you believe it is a correct strategy at this time?
  • What would your investment advice be at this time?

Obama Stimulus Made Economic Crisis Worse, `Black Swan’ Author Taleb Says

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

Description: U.S. President Barack Obama and his administration weakened the country’s economy by seeking to foster growth instead of paying down the federal debt, said Nassim Nicholas Taleb, author of “The Black Swan.”

Source: Bloomberg.com
 
Date: 09/25/2010

Link: http://www.bloomberg.com/news/2010-09-25/-black-swan-author-taleb-says-obama-s-stimulus-made-economic-crisis-worse.html

Questions for discussion:

  • What is the basis of Taleb’s criticism of government handling of the economy?
  • Do you agree with his arguments?
  • What do you think would happen to real estate prices and builders if government phased out mortgage interest deductibility on income taxes?
  • What would you suggest  is a solution to the current economic situation?

BullHorn: ORCL, RIMM, China, Solar

Posted by & filed under Market Analysis.

Description:  Oracle and Research In Motion are by no means dead. China stocks are hot, perhaps too hot. And investors are warming up to solar.

Source:  CNNMoney.com – video report
 
Date: 09/17/2010

Link: http://money.cnn.com/video/markets/2010/09/17/mkts_bh_orcl_rimm_china.cnnmoney/

Questions for discussion:

  • Summarize the commentary made on each stock?
  • Do you agree with the analysis presented?
  • Look at the other financial metrics for these stocks at an online site such as Google Finance and present a short analysis of each firm from an investors point of interest and secondly, as from that of the financial management at the firm.

Revolution Investing: Apple Going to $1,000

Posted by & filed under Company Analysis.

Description: With $40 billion in cash on its balance sheet, Apple can grow earnings 30% to 40% and reach a $1,000 stock price by 2015, according to MarketWatch newsletter writer Cody Willard, who points to the company’s power in apps. Veronica Dagher reports.

Source:  Marketwatch – video report
  
Date: 09/13/2010

Link: http://www.marketwatch.com/video/asset/revolution-investing-apple-going-to-1000/DC68E619-2969-41D8-BF81-DE00375729AE

Questions for discussion:

  • Summarize the analysis presented about Apple.
  • Do you agree with this financial analysis and prediction for Apple stock?
  • What could change the projected growth scenario quite quickly?
  • How would you play Apple as an investor?
  • As a financial manager, what would you be doing with Apple’s cash?

How the Best-Known Brand in Golf is Navigating the Global Economy

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

Description:  Like a weekend duffer playing through a summer squall, the golf industry has weathered brutal conditions in recent years. Callaway, the Carlsbad, California-based golf equipment maker, has hardly been immune to the ill winds. After banner years in 2007 and 2008, the company encountered the economic storm that struck the entire industry in 2009, and saw an annual revenue drop of 15 percent.

Source:  BNET.com
 
Date: 09/17/2010

Link: http://www.bnet.com/article/how-the-best-known-brand-in-golf-is-navigating-the-global-economy/466407?tag=mantle_skin;content

Questions for discussion: 

  • Summarize the financial changes at the firm over the past few years?
  • Do you agree with the analysis and projections presented in the article?
  • As an investor, how would play Callaway and other golf equipment businesses?
  • What would your strategic planning be as a financial manager at this firm?