Friday Sept 20 2019
A Rogue Trader at Mitsubishi causesd a $320 M loss in oil fututures.
While that is small in comparison to Mitsu overall profit, how embarassing an internal control failure.
Accounting & Investing Info for San Antonio A & M
Friday Sept 20 2019
A Rogue Trader at Mitsubishi causesd a $320 M loss in oil fututures.
While that is small in comparison to Mitsu overall profit, how embarassing an internal control failure.
Wednesday Sept 18 2019
The Mays Center hosted a group of volunteer non profits on campus today. Students and faculty had the chance to interface with them one on one.
I visited with Mary Flannigan, Director of Communications and Partnerships at SA Youth Literacy. 
This group recruits volunteers to assist second graders with a reading program. Testing begins in the third grade. So assisting with a push toward reading makes sense at this time. We see the results of testing reading out of education. Far too often not college ready means a lack of reading comprehension, what did you read? And good writing only results from good reading.
Friday Sept 13 2019
Felicity Huffman gets 14 days in jail for an attempt costing $15 K to get her daugher into a college of her choice.
Gee what do you suppose her legal bills are now?
Why not just contribute a half million to the school, perfectly legal, and bingo, daughter admitted.
Geez
Thursday Sept 12 2019
See page B 10 ij today's WSJ for the story on yet another KPMG ethical failure.
The top auditor bribed and or stole information about which audits the PCAOB would examine.
It is rare for a Big Four auditor to get jail time but he is sentenced to one year and one day which allows for an earlier parole.
He states he never imagined he wold commit a crime
Thursday Sept 12 2019
T Boone Pickens is described as a corporart raider. Except he never succeeded in taking over any firm.
Here is a list of links to learn about the up and down career of a famous Texan.
James Stewart's prize winning account of Drexel and the Take Over Mania
Drexel Burnham Lambert
https://en.wikipedia.org/wiki/Drexel_Burnham_Lambert
Michael Miliken
https://en.wikipedia.org/wiki/Michael_Milken
T Bone Pickens
Thursday Sept 12, 2019
Luby's is exploring a possible sale.
The stock has traded in low single digits for years while losing money. Cafeterias have closed. The Pappas Brothers are in control of the firm which also includes Fuddruckers. About 25 years ago senior citizens made Lubys a real item. I suspect as one student remarked, that concept of open food in steam trays is not appealing any longer. Golden Corral has also diminished with the same formula.
The stock price has been in decline for years.
Thursday Sept 12, 2019
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Monday Sept 9 2019
Welcome back CoB faculty,
I hope your summer was enjoyable, and you are having a good start to the new semester. Please, follow the link below to your University Library newsletter.
https://mailchi.mp/f7b20c8e50e5/cobfall2019
Have a great day!
Marina Narvaez
Business Librarian
Texas A&M University- San Antonio
(210) 784-1510
Monday Sept 16 2019
Recently we reviewed the concept of reserve currency, Smoot Hawley tariffs and the Bretton Woods 1944 agreement.
In this post we introduce you to Chinese efforts to dominate trade in the Far East. By the way note the front page article on China weaker than most thought in today's WSJ.
Asian Infrastructure investment Bank – Finance
https://en.wikipedia.org/wiki/Asian_Infrastructure_Investment_Bank
https://www.aiib.org/en/index.html
China's New Silk Road – Transportation
https://www.weforum.org/agenda/2017/06/china-new-silk-road-explainer/
https://www.britannica.com/topic/Silk-Road-trade-route
South China Sea – Spratley Islands
https://thediplomat.com/2016/05/south-china-sea-who-claims-what-in-the-spratlys/
https://en.wikipedia.org/wiki/Spratly_Islands_dispute
Please read this for class discussion
Friday Sept 6, 2019
China and the United States on Thursday agreed to hold high-level talks in early October in Washington, cheering investors hoping for a trade war thaw as new U.S. tariffs on Chinese consumer goods chip away at global growth.
Reuters
The DJIA rose over 400 points on that news. But markets have been rising and falling in a broad range on positive and then negative news on what might happen trade wise. And there is an entire month left until October. The most encouraging thing is the lack of Presidential tweets threatening this and that across our range of trading partners. The most reliable indicator is the advance decline line of the New York Stock Exchange index. This is simply a graph of the number of stocks advancing minus the number declining. It rose to a new high which is the technical reason for the market advances this week.
The tariffs have replaced China with Mexico as our largest trading partner. No doubt Chinese leaders want to show something to their people that some progress is taking place. Still, it is hard to believe they won’t wait Trump out until the 2020 elections rather than agree to finally honor intellectual property rights. Until now they have trampled them, refusing to pay royalties on music and movies.
Last week I mentioned that the refiners were worth watching. Indeed I am cautiously optimistic on this sector. The refining ETF is CRAK. It is turning up as its i momentum indicator. But it really needs to take out $27.50-28 to turn the trend bullish. Valero VLO is a better chart forming a second higher low since June. Since 2016 it rose from 44 to 120. It has given back half that gain now trading around $75. It is a well managed firm trading at a modest 12.77 price earnings ratio. And the forward dividend is 4.69%, well more than the banks are paying.
I also suggested looking at Cullen Frost Bank. Lower interest rates have beaten down bank share prices. This past year Frost has fallen from 111.70 to 79.869, now at 83.25. If the stock market has corrected, it follow that yields on ten year treasuries should be advancing and indeed they are. Surely we are as James Grant put it, at a 4,000 year low for interest rates. Frost pays a 3.42% dividend and is quite profitable. Our bottom line is to look for a low in interest rates leading to stronger bank stock prices. And in t turn, this should firm oil prices.
Gold and silver have corrected a bit after a nice run from multi-year lows. Let’s look for a good re-entry point here. The XAU index of gold miners is holding onto its recent gains.