Market Edge: Dividend Hike a Healthy Sign

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

Description:  Companies that regularly increase their dividend payments are often steady stock picks, according to Don Taylor, manager of Franklin Rising Dividends Fund, who talks with MarketWatch’s Jonathan Burton about the stocks that meet his investment criteria. Source:  Marketwatch.com – video report   Date: 05/17/2010 Link: http://www.marketwatch.com/video/asset/market-edge-dividend-hike-a-healthy-sign/CFE526EF-6662-4AE0-B2F9-A80E7D6D5CD2 Questions for discussion: Summarize the thinking about growth,… Read more »

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… Read more »

Why a $14/hour employee costs $20

Posted by & filed under Governments & Regulators, Management Issues.

Description: You probably cost your boss a lot more than you think you do. Source:  CNNMoney.com Date: 03/26/2010 Link: http://money.cnn.com/2010/03/26/smallbusiness/employee_costs/index.htm Questions for discussion: In general, do you think these taxes (costs) are fair to employers and employees? Why would any exemptions for employment taxes be considered an unfair competitive subsidy by other businesses who must… Read more »

Wall Street sours on Palm as smartphone sales stall

Posted by & filed under Company Analysis, Industry Analysis.

Description:  Analysts say wireless-device maker has few options; few see buyout as likely. Source: Marketwatch – video report   Date: 02/26/2010 Link: http://www.marketwatch.com/story/palms-survival-at-stake-if-smartphones-dont-sell-2010-02-26?siteid=nwtwk Questions for discussion: Do you think investors have properly valued Palm in the past or presently? On what basis would you set a stock value for the firm? What valuation would you… Read more »

Buffett’s $50 million credit card blunder

Posted by & filed under Company Analysis, Management Issues.

Description:  Peddling credit cards isn’t so easy that a caveman can do it. That seems to be the conclusion Berkshire Hathaway (BRKA, Fortune 500) chief executive Warren Buffett reluctantly reached last year, when he shut down a money-losing credit card business he had dreamed up for Berkshire’s Geico car-insurance unit. Source: CNNMoney.com   Date: 02/27/2010… Read more »

A.I.G. Posts Loss of $11 Billion on Higher Claims

Posted by & filed under Company Analysis, Industry Analysis.

Description: The American International Group said on Friday that it lost about $11 billion last year, surprising analysts and showing the long-term risks inherent in the types of large, complex insurance coverage that the company once pioneered. Source: NYTimes.com Date: 02/26/2010 Link:  http://www.nytimes.com/2010/02/27/business/27insure.html?ref=business Questions for discussion: What is your view of this business model in… Read more »

Corporate Bond Spreads Rise Most Since November: Credit Markets

Posted by & filed under Governments & Regulators.

Description:  Corporate borrowing costs are rising at the fastest pace in more than two months on concern that worsening government finances will slow the global economy and make it harder for companies to meet debt payments. Source: Bloomberg.com Date: 02/08/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=auWwLKPsLRFM Questions for discussion: Summarize the report and the impact this trend will have… Read more »

The Places They Go When Banks Say No

Posted by & filed under Financial Planning.

Description: In the glory days of the digital photo frame business, when his products were still a novelty and shoppers were flush with cash, getting a bank loan to manufacture them was a cinch, Michael Levy says. Source: NYTimes.com Date: 01/30/2010 Link: http://www.nytimes.com/2010/01/31/business/smallbusiness/31order.html?ref=business Questions for discussion: Summarize the problems facing small businesses since the financial… Read more »

GM ends pay cuts for salaried workers

Posted by & filed under Uncategorized.

Description: Automaker restores white-collar staff’s paychecks after temporary reductions made four months ago. Source: CNNMoney.com Date: 9/11/2009 Keys: Cash flow, budgeting Link:  http://money.cnn.com/2009/09/11/news/companies/gm_ends_pay_cuts.reut/index.htm?postversion=2009091111 Questions for discussion: Why is this news significant for GM? Explain your answer. What does this suggest about operations and cash flow? Explain your answer.

Costs of the minimum wage hike

Posted by & filed under Uncategorized.

The new minimum wage may mean higher prices for consumers as companies pay for higher payroll costs. Source: CNNMoney – video report Date: 7/24/2009 Keys: Budgeting, cash flow, expenses, working capital Link: http://money.cnn.com Questions for discussion: How might management of the food store respond to the rise in the minimum wage? Rank your choices starting… Read more »