U.S. Economy: Profit Surge May Help Broaden Expansion

Posted by & filed under Economic Analysis.

Description: The fastest pace of economic growth in six years during the final three months of 2009 fueled a surge in corporate profits that may set the stage for job gains and a broadening of the U.S. recovery. Source: Bloomberg.com Date: 03/26/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aorqXG5sfGeY Questions for discussion: Summarize the reasons given for economic and stock… Read more »

How Not to Run an S.E.C. Investigation

Posted by & filed under Governments & Regulators.

Description: A recent report by Securities and Exchange Commission’s inspector general shows that the investigation of Bernard L. Madoff was not the only one to go badly awry. While the impact of the S.E.C.’s missteps were not nearly as significant as in the Madoff case, the report shows that the agency’s enforcement division allowed itself… Read more »

Value Investing for the Next Decade

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

Description:  Long-duration investing is about finding well-established companies to buy and hold for the next 10 years, according to fund manager Bill Smead, who favors pharmaceutical, housing and equity-fund plays. Matt Andrejczak reports. Source: Marketwatch.com – video report   Date: 03/16/2010 Link: http://www.marketwatch.com/video/asset/value-investing-for-the-next-decade/49B13123-0A86-4B78-ACD1-85EF967190FC Questions for discussion: Why do you believe investors are holding stocks for… Read more »

Avoid Negative-Net-Worth Stocks Like the Plague: John Dorfman

Posted by & filed under Financial analysis.

Description: I rarely buy a stock whose debt is greater than stockholders’ equity, or corporate net worth per share. In effect, that means I won’t give a second look to about one third of U.S. stocks. Source: Bloomberg.com Date: 03/15/2010 Link: http://www.bloomberg.com/apps/news?pid=20601039&sid=aReZz0vi1B5U Questions for discussion: In general, do you agree with this analysis and strategy… Read more »

At Lehman, Watchdogs Saw It All

Posted by & filed under Governments & Regulators.

Description: Almost two years ago to the day, a team of officials from the Securities and Exchange Commission and the Federal Reserve Bank of New York quietly moved into the headquarters of Lehman Brothers. They were provided desks, phones, computers — and access to all of Lehman’s books and records. At any given moment, there… Read more »

Palm shares may hit $0: Analysts

Posted by & filed under Financial analysis.

Description:  Palm’s future already looked bleak. But after reporting worse than expected results for the third quarter Thursday, some analysts think the company’s stock is now essentially worthless. Source: CNNMoney.com   Date: 03/19/2010 Link: http://money.cnn.com/2010/03/19/technology/palm_target_price_zero/index.htm Questions for discussion: Summarize the reasons for Palm’s demise. Do believe there is any hope for the stock? How would… Read more »

China may allow yuan to rise by mid-April, strategists say

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

Description:  China could allow its currency to begin appreciating against the U.S. dollar within the next month, as Beijing responds to growing pressure from Washington to allow its currency to trade more freely, according to analysts. Source: Marketwatch.com   Date: 03/12/2010 Link: http://www.marketwatch.com/story/china-may-let-yuan-rise-next-month-2010-03-12?siteid=nwtwk Questions for discussion: Summarize the reasons one can expect a rise in… Read more »

How Men’s Overconfidence Hurts Them as Investors

Posted by & filed under Industry Analysis.

Description: MEN and women invest differently, a growing body of research has found. And in at least one important respect, women may be better at it. Source: NYTimes.com Date: 03/12/2010 Link: http://www.nytimes.com/2010/03/14/business/14mark.html?ref=business Questions for discussion: How are men and women investors different from each other? What lessons are there that each gender can learn from… Read more »

Apax, Private-Equity Firms Say Retail LBOs Return With Recovery

Posted by & filed under Industry Analysis.

Description: Private-equity firms looking to buy retail and consumer companies said they’re now able to finance deals and pay reasonable prices after the credit crisis and global recession triggered a buyout slump. Source: Bloomberg.com Date: 03/12/2010 Link: http://www.bloomberg.com/apps/news?pid=20601109&sid=a1CarvonDlcU&pos=15 Questions for discussion: Does this news bode well for the economy? What has changed in this industry… Read more »

SEC explains dangerous derivatives

Posted by & filed under Governments & Regulators.

Description:  Director of the SEC’s division of Risk, Strategy, and Financial Innovation Henry Hu maps out how credit default swaps work. Source: CNNMoney.com – video report   Date: 03/05/2010 Link: http://money.cnn.com/video/markets/2010/03/04/mkts_ss_sec_white_board.cnnmoney/ Questions for discussion: Summarize the financial arrangements between banks, companies, and investors that define credit default swaps.  What is the problem, if any? Should… Read more »