BP Considers Cut to Dividend

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

Description: BP is considering reducing its dividends to help quell political uproar against the company. Meanwhile, the U.S. raised estimates of the oil gushing from the crippled Gulf of Mexico well. Monica Langley, Dennis Berman, Evan Newmark and Bruce Orwall discuss. Also, a discussion of Saturday’s World Cup soccer match between England and the U.S.

Source: Marketwatch.com ╨ video report

Date: 06/11/2010

Link: http://www.marketwatch.com/video/asset/am-report-bp-considers-cut-to-dividend/D6E6B2E2-C9D6-4B69-A4E8-124FD19CD289

Questions for discussion:

How significant is the dividend payment?

  • What would you do if you were BP?
  • What advice would you give to a BP stockholder?
  • Is there an argument for an investor to buy into BP at this time?
  • As for the report on gold and treasuries, explain the reasons given for movements in these markets?
  • What is your short-term prediction for these investments?

Why the worst isn’t over yet

Posted by & filed under Economic Analysis, Financial Planning.

Description: Economists, as you have likely heard, are enjoying a bit of a renaissance these days. With a startling new piece of economic news emerging on a near daily basis — Greece is going under! No, it’s Spain! China is in the midst of a housing bubble! China is our savior! — there’s been a surge in demand for those who would purport to tell us what it all means.

Source: CNNMoney.com

Date: 06/11/2010

Link: http://money.cnn.com/2010/06/11/news/economy/david_rosenberg_markets.fortune/index.htm

Questions for discussion:

  • Summarize the reasons for concern.
  • Do you agree with this analysis?
  • What strategies should investors consider under these conditions?
  • What advice would you suggest financial mangers consider?

Production Probably Rose, Prices Fell: U.S. Economy Preview

Posted by & filed under Economic Analysis.

Description: Factories kept churning out more goods last month, while prices and home construction fell, pointing to a manufacturing-led U.S. recovery that is not generating inflation, economists said before reports this week.

Source: Bloomberg.com

Date: 06/13/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=afVs1JzRgfSE

Questions for discussion:

  • Summarize the key items in the report and explain their significance to a financial manager of a firm.
  • On the whole, does this  report contain good news for investors?

Uncertainty Restores Glitter to an Old Refuge, Gold

Posted by & filed under Economic Analysis.

Description: It is the resurgent passion of the doomsday crowd, a bet that everything will go wrong. No matter what has you worried, they say, the answer is gold.

Source: NYTimes.com

Date: 06/12/2010

Link: http://www.nytimes.com/2010/06/13/business/13gold.html?ref=business

Questions for discussion:

  • Summarize the arguments presented in the article about gold as an investment at this time.
  • What strategy would you advise?

The Balance-Sheet Recession

Posted by & filed under Financial analysis.

Description: With gold having run up to record prices of late, some have wondered whether the yellow metal is likely to be the next bubble? Brett Arends discusses. And Peter Lattman profiles C. Dean Metropoulos, an low-profile investor with a knack for rebuilding old brands like Chef Boyardee, Bumble Bee and Schlitz. His most recent purchase: Pabst Blue Ribbon

Source: Marketwatch.com ╨ video report

Date: 06/04/2010

Link: http://www.marketwatch.com/video/asset/the-balance-sheet-recession/0F0559E5-78C2-48DE-8FE0-023DD259AE36

Questions for discussion:

  • Summarize the arguments presented in this report.
  • What are your views on the merits of these arguments?
  • What advice would you suggest to financial managers and investors?

Investor Attitudes in Today’s Market

Posted by & filed under Industry Analysis, Market Analysis.

Description: Alyssa Moeder, a financial advisor at Merrill Lynch, talks to Barron’s Associate Editor Matt Barthel about how investor attitudes today have changed and how she addresses their needs and concerns.

Source: Marketwatch.com ╨ video report

Date: 06/05/2010

Link: http://www.marketwatch.com/video/asset/investor-attitudes-in-today-market/A2BAF27E-A132-4AE8-BAB1-339217104E34

Questions for discussion:

  • Summarize the changes in attitude that are discussed in this report.
  • Do you agree with the analysis presented?
  • Do you agree with the advice being suggested for investors?
  • How do you think the investment industry should respond to these arguments?

BP’s Gulf Coast oil spill – a legal primer

Posted by & filed under Company Analysis, Industry Analysis.

Description: To help readers navigate the legal landscape surrounding BP’s mammoth oil spill (or “oil spew,” as some argue it should more properly be called) in the Gulf Coast, I have looked into some of the law-related questions and statements that keep surfacing as the press and bloggers keep up with the crisis. I rely mainly here on an interview with Christopher B. Kende, an international insurance law specialist at the firm of Cozen O’Connor. Kende also teaches attorneys about the legal issues stemming from the Deepwater Horizon oil spill as a lecturer for HB Litigation Conferences.

Source: CNNMoney.com

Date: 06/06/2010

Link: http://money.cnn.com/2010/06/04/news/companies/bp_legal.fortune/index.htm

Questions for discussion:

  • What is your view of the risk management situation in this industry today?
  • Do you think BP miscalculated their risk exposure?
  • How could they have dealt with the risk differently?
  • How should investors view the risk potential for the industry and BP in particular?

15 Steps for Successful Strategic Alliances (and Marriages)

Posted by & filed under Economic Analysis.

Description: Wedding bells fill the Northern Hemisphere air for this season’s happy couples. Among the newlyweds armed with pre-nuptial agreements are numerous companies starting strategic alliances, joint ventures, and focused collaboratives.

Source: Bloomberg.com

Date: 06/01/2010

Link: http://www.bloomberg.com/apps/harvardbusiness?sid=Hf4bf828cb7a8e91f3cc9bd45f37e6165

Questions for discussion:

  • Evaluate the suggestions made in this report.
  • How do the suggestions in this report compare to conventional textbook thinking?
  • Why do you suppose that this line of thinking makes sense to the writer?

Debtors’ Prism: Who Has Europe’s Loans?

Posted by & filed under Economic Analysis, Management Issues.

Description: IT’S a $2.6 trillion mystery. That’s the amount that foreign banks and other financial companies have lent to public and private institutions in Greece, Spain and Portugal, three countries so mired in economic troubles that analysts and investors assume that a significant portion of that mountain of debt may never be repaid.

Source: NYTimes.com

Date: 06/04/2010

Link: http://www.nytimes.com/2010/06/06/business/global/06toxic.html?hpw

Questions for discussion:

  • What are the similarities and differences in the financial markets today in comparison to just prior to the global financial crisis?
  • Do you believe that this situation in Europe will precipitate a double-dip recession?
  • How should financial managers deal with the conditions that exist in their industry and respective institutions?
  • How should investors look at the situation?

Is Gold the Next Bubble?

Posted by & filed under Economic Analysis.

Description:  With gold having run up to record prices of late, some have wondered whether the yellow metal is likely to be the next bubble? Brett Arends discusses. And Peter Lattman profiles C. Dean Metropoulos, an low-profile investor with a knack for rebuilding old brands like Chef Boyardee, Bumble Bee and Schlitz. His most recent purchase: Pabst Blue Ribbon

Source:  Marketwatch.com – video report
 
Date: 05/26/2010

Link: http://www.marketwatch.com/video/asset/am-report-is-gold-the-next-bubble/5B8A1CAC-3A28-4FF1-A8B2-92FB92E40558

Questions for discussion: 

  • Summarize the reasons given for stock market volatility?
  • How does this volatility relate to the current and future price of gold?
  • Do you believe a gold-bubble is forming?
  • What strategy should investors follow in this environment?
  • What strategy should financial managers follow?
  • Finally, why do you suppose PBR remains successful?