Japan Has More Than Just a Yen Crisis

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

Description: The currency crisis is merely one symptom of the country’s general aversion to change after the boom-and-bust 1980s.

Source:  Businessweek.com

Date: 09/02/2010

Link:  http://www.businessweek.com/magazine/content/10_37/b4194007896491.htm 

Questions for discussion:

  • Summarize the analysis of Japans economic situation.
  • What are the historical reasons that explain how this present condition came about.
  • Do you agree with the analysis presented and the recommendations for making improvements?
  • What else would you advise governments do to help improve the economy?
  • What lessons are there here to be learned by other governments and regulators?
  • How did international firms respond to the economic conditions in Japan?
  • What others strategies are available to financial managers of these firms?
  • What strategies are available to the financial managers of firms that only operate in Japan?

Treasury 10-Year Notes Decline, Yield Curve Steepens on Increase in Jobs

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

Description:  Treasury 10-year notes and 30-year bonds dropped for a second week for the first time since April as a bigger-than-forecast gain in company payrolls eased concern the U.S. economy was falling into another recession.

Source: Bloomberg.com
 
Date: 09/04/2010

Link: http://www.bloomberg.com/news/2010-09-04/treasury-10-year-notes-decline-yield-curve-steepens-on-increase-in-jobs.html

Questions for discussion:

  • Summarize the arguments that attempt to explain the meaning of the gap.
  • What is your opinion about the current situation?
  • What would your strategic thinking be towards investing in corporate bonds and treasuries?

Billionaire’s Buy List

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

Description:  Warren Buffett, George Soros, Carl Icahn are buying stocks and that’s a bullish sign, says James Altucher, Wealth Adviser contributor. There’s plenty to learn from their picks, Altucher explains to Dow Jones’ Veronica Dagher.

Source: Marketwatch.com  – video report
 
Date: 08/25/2010

Link: http://www.marketwatch.com/video/asset/billionaire-buy-list/F84B011C-5B35-494E-9249-73A6DB19B2D6

Questions for discussion:

  • Summarize the reasons given for these particular stock purchases?
  • Why is this information considered worthy of attention by small investors?
  • Do you believe these deals are good choices for small investors today?

The double-dip debate

Posted by & filed under Economic Analysis.

Description: Bank of America’s Ethan Harris and Mizuho Securities’s Steven Ricchiuto discuss the possibility of a double-dip recession.

Source:  CNNMoney.com – video report
  
Date: 08/27/2010

Link: http://money.cnn.com/video/news/2010/08/27/n_ss_lake_panel.cnnmoney/

Questions for discussion:

  • Summarize and evaluate the opinions presented?
  • What would you advise investors to do under the current conditions, given your views of the future?
  • What would you advise financial managers of firms?

A busy August for deals fuels M&A speculation

Posted by & filed under Financial analysis, Growth & Valuation.

Description:  Stagnant stocks, corporate cash piles, low rates, may spur more acquisitions

Source:  Marketwatch.com
 
Date: 08/27/2010

Link: http://www.marketwatch.com/story/a-busy-august-fuels-ma-speculation-2010-08-27?siteid=nwtwk

Questions for discussion: 

  • What reasons are presented to explain the level of current M&A activity?
  • What would cause this activity level to change?
  • Do you think these deals are valued correctly, given the conditions that are promoting heated M&A activity?

Treasury Two-Year Yields Increase Most Since April After Bernanke Speech

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

Description: Treasuries dropped, pushing two-year note yields up the most since April, after remarks from Federal Reserve Chairman Ben S. Bernanke tempered speculation that the central bank will step up debt buying.

Source:  Bloomberg.com

Date: 08/28/2010

Link:  http://www.bloomberg.com/news/2010-08-28/treasury-two-year-yields-increase-most-since-april-after-bernanke-speech.html
 
Questions for discussion:

  • Summarize the recent activity in treasuries and the bond market.
  • What do you believe will happen over the next six months?
  • What would your advice be to investors?
  • How should financial managers respond as they plan to gear up for a recovering economy?

United-Continental Merger Clears Federal Hurdle

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

Description: The Justice Department said late Friday that it had cleared the planned $3 billion merger between United Airlines and Continental, lifting the biggest regulatory hurdle to the creation of the world’s top airline.

Source: NYTimes.com

Date: 08/27/2010

Link: http://www.nytimes.com/2010/08/28/business/28air.html?ref=business

Questions for discussion:

  • Do you believe that the stocks and bonds of this new airline will be good investments?
  • What are the risks for investors?
  • Is the “all stock” financing of this deal meaningful in some way?

AM Report: Deals Make a Comeback

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

Description:  Global merger activity is at its highest levels since late 2009, presenting a glimmer of economic confidence even as the stock and bond markets continue to price in a weakening U.S. economy. Anupreeta Das and Dennis Berman discuss. Also, Dan Michaels discusses the race among 21 American museums to land one of the three space shuttles that will soon enter retirement.

Source: Marketwatch.com  – video report
 
Date: 08/20/2010

Link: http://www.marketwatch.com/video/asset/am-report-deals-make-a-comeback/7092CA79-29AA-48C5-BCE2-20E429150871

Questions for discussion:

  • Summarize the opinions expressed by the panel about the current activities?
  • Do you agree with these comments?
  • Do you believe these deals are good for investors?

BHP Billiton will take bid directly to Potash shareholders

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

Description:  Mining giant BHP Billiton went on the attack Wednesday, saying it will take its nearly $39 billion takeover bid for Potash Corp. straight to shareholders after the fertilizer firm’s board spurned the offer as grossly inadequate.

Source:  Marketwatch.com
  
Date: 08/18/2010

Link: http://www.marketwatch.com/story/bhp-billiton-takes-bid-to-potash-shareholders-2010-08-18?siteid=nwtwk

Questions for discussion:

  • What are the arguments favoring the acquisition of Potash Corp.?
  • What value would you put for Potash Corp. today?
  • What concerns does the financial management of BHP Billiton have as it moves ahead with this and other acquisitions?

The New GM to hit market with new hopes, old ghosts

Posted by & filed under Company Analysis.

Description:  The second-biggest IPO in U.S. history is finally winding its way toward Wall Street, and while the road ahead is fraught with hazards, some analysts still see big potential in a rebuilt General Motors.

Source:  Marketwatch.com
 
Date: 08/20/2010

Link: http://www.marketwatch.com/story/should-investors-steer-clear-of-gm-ipo-2010-08-20

Questions for discussion: 

  • Do you think the GM IPO will be successful with small investors?
  • Do you think the IPO is a good choice for small investors?
  • At what price do you think the stock will be issued?
  • Would the small investor be wiser to wait until the IPO dust has settled and then look at the possibilities of purchase?