H-P grabbing Palm could shake up PC alliances

Posted by & filed under Company Analysis, Industry Analysis.

Description: Hewlett-Packard’s bid to gobble up Palm Inc. could shake up alliances in the personal computer industry, as other players in the sector figure out their play in a rapidly-changing smartphone arena, analysts say.

Source:  Marketwatch.com

Date: 04/29/2010

Link: http://www.marketwatch.com/story/h-ps-palm-merger-seen-shaking-up-pc-alliances-2010-04-29?siteid=nwtwk
 
Questions for discussion:

  • Do you agree with the analysis presented?
  • Is this a good deal for stockholders of each firm?
  • From a financial management point of view, what will the consequences be for the newly structured organization?
  • Will there be cash flow concerns? Explain your thinking?

UAL, Continental reportedly set to announce deal Monday

Posted by & filed under Company Analysis, Industry Analysis.

Description:  United Airlines and Continental Airlines are reportedly on track to announce a multibillion-dollar merger deal on Monday that would create the world’s biggest airline.

Source:  Marketwatch.com
 
Date: 04/29/2010

Link: http://www.marketwatch.com/story/ual-continental-reportedly-close-in-on-deal-2010-04-29?siteid=nwtwk

Questions for discussion:

  • Is this a good deal for stockholders of each firm?
  • From a financial management point of view, what will the consequences be for the newly structured organization?
  • Will there be cash flow concerns? Explain your thinking?

Boost in U.S. Consumer Spending Broadens, Sustains Expansion

Posted by & filed under Economic Analysis.

Description:  Consumer spending grew at the fastest pace in three years during the first quarter, a sign that the largest part of the economy is gaining speed while becoming less dependent on government stimulus.

Source: Bloomberg.com
 
Date: 05/01/2010

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

Questions for discussion:

  • Given the recent economic improvements, what changes should financial managers consider for the coming year?
  • How should financial managers be expected to interpret the recent results from the Institute for Supply Management?

Goldman Sachs Loses Room to Maneuver After Public Testimony

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

Description: Goldman Sachs Group Inc. may have backed itself into a corner by speaking out quickly to counter fraud claims by the U.S. Securities and Exchange Commission.

Source: Bloomberg.com
 
Date: 05/01/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=avI7OhdudjWc

Questions for discussion:

  • In terms of public opinion, McCormick said, Goldman Sachs has “already been condemned, the question is the price.” Do you agree with this statement?
  • What advice would you send to Goldman at this time in order to mitigate the damage done to its current and future net worth?

Did Goldman Do Anything Wrong?

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

Description:  When it comes to laying the blame on Goldman Sachs, Wealth Adviser columnist James Altucher says, “not so fast.” Nevertheless, he tells investors to stay away from buying the stock until the flames cool down.

Source:  Marketwatch.com – video report
 
Date: 04/23/2010

Link: http://www.marketwatch.com/video/asset/did-goldman-do-anything-wrong/E02B7836-3C8D-4719-A7EB-DE47036348DF

Questions for discussion:

  • So, in your opinion, did Goldman do anything wrong?
  • Summarize the arguments presented that mitigate the threat to Goldman management and stock value.
  • How should management be expected to respond to the situation?
  • What would you recommend to investors looking at Goldman and other firms dealing with these financial instruments that are the center of the controversy?

How credit watchdogs fueled the financial crisis

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

Description: A slew of internal e-mails from the leading credit rating agencies show employees at those firms knew of the dangers in subprime mortgages, but gave them the seal of approval anyway.

Source:  CNNMoney.com

Date: 04/24/2010

Link: http://money.cnn.com/2010/04/23/news/economy/credit_rating_agencies_hearing/index.htm
 
Questions for discussion:

  • Do you agree with the analysis presented?
  • What actions should be taken by regulators?
  • Should anyone be legally charged?

Apple earnings soar on strong iPhone, Mac sales

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

Description:  Apple Inc said Tuesday that profit rose 90% in its fiscal second quarter as it sold almost 9 million iPhones, easily topping analyst estimates in both profit and sales amid a surge in demand in international markets.

Source:  Marketwatch.com
 
Date: 04/20/2010

Link: http://www.marketwatch.com/story/apple-earnings-soar-on-strong-iphone-sales-2010-04-20?siteid=nwtwk

Questions for discussion:

  • As an investor with a one year view to the future, what stock value do you see for Apple?
  • What level of stock price volatility would you expect to see during this period? Why?
  • What investing strategies would you expect to employ in order to take advantage of the stock’s price behavior?
  • How would you expect the financial managers at Apple to respond to the current and predicted improvement to sales and profits?
  • How will these changes affect cash flows, consideration for mergers and acquisitions and so forth?

Competition, lack of data drove flawed credit ratings

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

Description:  During the buildup to the financial crisis, major rating agencies Moody’s Corp. and Standard & Poor’s Inc. were understaffed, didn’t have enough data about the mortgage securities they were rating and were pressured by each other and investment bankers to issue overly rosy ratings, a lawmaker said Friday.

Source: Marketwatch.com
 
Date: 04/23/2010

Link: http://www.marketwatch.com/story/competition-lack-of-data-drove-flawed-ratings-2010-04-23?siteid=nwtwk

Questions for discussion:

  • Summarize the arguments presented by each side of this issue.
  • What is your view of whom, if anyone is to blame for any neglect or improper behavior?
  • What lessons can be learned here in order to help reduce the risk of repeating mistakesthat were made?

SEC Risks Harm With High-Frequency Trading Curbs, CME CEO Says

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

Description:  Regulators would harm U.S. equities trading if they toughened restrictions on computer-driven strategies that have largely replaced human market makers, CME Group Inc. Chief Executive Officer Craig Donohue said.

Source: Bloomberg.com
 
Date: 04/24/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aVkTbg7q8Lwo

Questions for discussion:

  • Do you agree with the concerns expressed by Donohue?
  • Can this type of activity be regulated by way of technology?

SEC director talks tough about Goldman

Posted by & filed under Governments & Regulators.

Description:  Director of Enforcement Robert Khuzami discusses the charges against Goldman Sachs during a panel at Tulane University’s Corporate Law Institute.

Source: CNNMoney.com – video report
 
Date: 04/16/2010

Link: http://money.cnn.com/video/news/2010/04/16/n_Goldman_SEC_lawsuit_Khuzami.cnnmoney/

Questions for discussion:

  • Summarize the accusations against Goldman and Paulson.
  • Is this just a matter of full disclosure?
  • What impact do you think this action will have on Goldman, Paulson, and other financial firms in general?
  • Do you think the consequence of this legal procedure by the SEC will be positive for future financial activity?