Professor Elam
Accounting & Investing Info for San Antonio A & M
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Category: Financial Acct
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Monday April 28, 2014 Last week Apple announced a seven for one stock split and an 8% dividend increase. As one student noted in class, that just bought them time to do something constructive. kPhones now dominate their sales structure. Frankly I don't know if Apple can continue to generate these kind of sales unless of…
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Monday April 14, 2014 This analyst examines the way owner Eddie Lampert strips the cash out of a company before spinning it off from Sears Holdings. Please read the article to see the track record. Remember the definition of accounting Recognize a transaction Record the event – journal and ledger Summarize the entries – Trial Balance, Adjusted…
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Monday April 7, 2014 We are studying the equity section of the balance sheet in a couple of the intermediate classes. We received an excellent question from an alert accouting student today. Here is the quesion. Is there a common process to evluate a stock's potential as to possible upside or downside in price, at…
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Monday April 7 2014 Sears Holdings spun off Lands End this past Friday. We are studying the equity section of the balance sheet. A property dividend may be issued by a company. That is what SHLD is doing by creating separate companies. But as you can see, some are warning the good stuff is being spun…
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Thursday April 3 2014 Google split this week. We are studying the equity side of the blaance sheet in intermediate accounting. Stock splits and stock dividends are part of that discussion. Please read this article to understand how the original owners of GOOG are increasing their hold over the company. They are receiving Class B…
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Tuesday April 1 2014 Yesterday we linked to the interview with Michael Lewis on Sixty Minutes about High Speed Trading. This morning I spotted this article in the WSJ. The FBI is probing such trading. Notice that this news i surfacing as the markets make new highs and small investors are finally scrambling to get in.…
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Tuesday April 1 2014 Google will split its common shares two for one. It is also issuing a new Class B voting to give the two founders more control. We are studying equity in ACCT 3312 as well as the toher classes. Please read this article, it comes at a timely moment in our studies. As…
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Monday March 31 2014 An alert student spotted this article on high speed trading featured on sixty minutes last night. Essentially high speed computers anticipate a buy, jump in with an order front running your order, and then sell you the stock back at a higher price. The higher price is not a dollar or…
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Wednesday March 26, 2014 A stock becomes public by having an initial public offering or IPO. See F 1 for King Digital in previous post. The underwriter, a firm like Merrill or Goldman or J P Morgan, buys the stock from the issuer and sells it to the public. The underwriter makes a profit on…
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Friday March 7 2014 Moody's downgraded Chicago's huge debt load to three notches above junk status. We are studying bonds in ACCT 3312. Moody's Fitch and S & P all rate bonds. What does this mean for Chicago? Why is there a parallel to Detroit, now in bankruptcy? Chicago has over $18,000 in pension liablity…
Professor Elam 