Professor Elam
Accounting & Investing Info for San Antonio A & M
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Category: Financial Acct
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Sunday June 5, 2011 Groupon is going public, the market cap may well be $30 billion dollars. Financial analysis would have us believe that a company is worth the present discounted value of future earnings. The only flaw here is Groupon does not have any earnings, they have lost money every year, just like the…
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Thursday June 2, 2011 SW Air LUV used to be that scrappy upstart with stews in hot pants and peanuts only. No longer. As LUV has taken on more routes and grown, the fare prices have risen as well. We will use this article for our first posting in Intermed I this summer. Please read the…
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Barry Ritholtz has a great column on what it takes to be a great investor. My thoughts on his suggestions. 1. Historian – absolutely but looking at the numbers alone will not prepare you for the emotional involvement of what is happening. Reading about history is one thing, experiencing it is something else. I proposed…
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Wed May 11, 2011 Here is another view on the Skype purchase by MSFT. Yes they paid more but they paid much less per user than the last buyer. It works the same way with a media buy. The big radio station in any town charges more for their ads than the small stations. But…
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Tuesday May 10, 2011 MSFt buys Skype for $8 Billion There are several interesting facets of this. The last sale on Skype was $2.5 B, Skype indicated it was going to do an IPO, put itself up for sale, and bingo, MSFT buys in at 3x the previous price. Observations MSFT has always bought competition…
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Tuesday May 10, 2011 CITI has reverse split it stock. Now the four dollar stock is a $40 stock, except of course no one made any money. CITI never recovered from the 2008 meltdown. Its low price has made for incredible speculation from $3-$5 and back again. But mutual funds are hesitant to buy shares in single…
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Wed April 27 2011http://online.wsj.com/article/SB10001424052748703789104576273042510527896.html?mod=WSJ_hp_MIDDLETopStories We are studying corporate stock options in Intermed II. Please read the above article as it explains exactly what we are studying in Chapter 19 of Spiceland.
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Friday April 22, 2011 I have mentioned in multiple classes that one needs to read the WSJ, one needs context to provide a basis for understanding derivatives. I looked on line but for some reason do not find today's commodity column. It relates that a huge purchase of puts in the SLV ETF was made…
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Thursday April 21, 2011 I posted my derivative presentation for Intermed II on Black board. I have made the same presentation to Cost and Intermed I as well as to a local accounting group. I have enjoyed visiting with Dr. Lewis Intl Accounting Class on the same subject as well as various currency gyrations. …
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Thursday April 21, 2011 Here is a link to a General Electric earnings report. Thanks to an alert student in Intermed II>. This Forbes Report looks at the earnings reports for this week and how it supposedly affected the markets. I say supposedly because markets exhibit patterns that reflect social behavior. Earnings reports are a sort of white noise…
Professor Elam 