Accounting & Investing Info for San Antonio A & M
Tuesday Occt 7 2014
I received this update from Padegett Strateman today on Revenue Recognition.
No doubt all the cpa firms have something on their websites on this. Links are on the left side of this blog as well as in Helpful Websites on BB.S
Come to think of it that would be a good project, to assemble a list of URLs to CPA and consulting firms for their articles.
Here is the P/S page
Monday Oct 6 2014
Mike Phelps is the most decorated swimmer in history. But he sure needs to hire a limo to drive him around. He just received a second DUI arrest. You can read about the suspensions as a result.
And this is probably not going to help in getting endorsements, the only real reward for swimming. At a time when NBA and NFL players are cited for bad behavior, sponsors are more than ever on the alert for bad behavior.
Do endorsements matter ot the buying public by athletes? I guess so or the companies would not pay the big bucks. At any rate, not a good bit of news for Phelps.
Monday Oct 6 2014
The President of CEK, Carl Jrs and Hardees, analyses the $10.10 minimum wage idea.
Here is the link to our school database for the WSJ
https://tamusa.idm.oclc.org/login?url=http://search.proquest.com/docview/1586066413?accountid=130967
Here is a CEO who understands exactly how his restaurants work in the accounting seense. We will take a look at this in class. I don't know if this article links for all of you as I subscribe so the links always work.
At any rate this is a great example of managerial accounting. And it explains why central planners cannot magically grant wage increases to everyone.
Monday Oct 6 2014
German factory orders just experienced the biggest slowdown since 2009. This is more evidence that the markets are topping around the world amid a slow down not a speed up.
Monday Oct 6 2014
The split up of HP may be more about layoffs than anything else.
Companies sometimes feel that splitting into two companies will increase the net total shareholder value.
Thursday Oct 2 2014
PCAOB considers a compromise in revealing the name of the audit partner on an engagement.
The latest idea would be to register the name on a Form Five filed separately but simultaneously with the audit report. I suppose if one can navigate the PCAOB website one might actually find the form but I already have my doubts.
IF it is good enough for hte CEO and CFO to sign off on, it ought to be good enough for the audit partner as well.
Thursday Oct 2 2014
I suspect the final lows for this first move down lie ahead into next week. But yesterday we had a fitting item to celebrate what Joe Granville called the orthodox low of the 2008 meltdown. He noted that the largest number of new lows occurred in October 2008. And yesterday ona court ruling against investors, Fannie Mae, the architect off the housing debacle.crashed.
FNMA
Yes friends and readers, we celebrate the five year jnniversary of a housing melt down with a 36% melt down in FNMA. A judge ruled against investors seeking something for their ownership. The Federal Government had insisted ona high dividend from the company in exchange for the bail out. Looks like a negative sum game for investors here.
SPX Daily
On the daily chart the SPX has completed five wave up from the February lows. Suport lies at the previous fourth wave 19330-1925.
NYSE
Our friends at EWT have a five wave count comleted but from the March 2009 low. I frankly cannot come up with that in textbook fashion here. The better idea may be to watch the monthly parabolic which is now at 10264. A break of that would suggest that indeed, this is the big one.
Hedge
HDGE eeked out a weekly buy signal but as one can see, the MAs are not even flat yet. I suspect it would be wise to wait and see how HDGE performs after an extpected low this next week . If it stays in buy mode on the weekly PAR SAR, this owuld be significant.
Thursday Oct 2 2014
Most of the withdrawals occurred last Friday when Bill Gross moved to Janus. I expect PIMCO is right and that will be most of it. It remains to be seen if the money actually follows Gross to Janus.
Thursday Oct 2 2014
Here is the job description for a construction accountant. I thought this woudl be of interest to students as to the specifics of just what is expected. Notice the high skill level expected in excel, something frankly that colleges do not do well. I see that CCs have a reaquirement for such a course but I never meet anyone that knows much about excel.
Wed Sept 30 2014
Ford issued a profit pullback wrarning. Rather than $7-8 billion pre tax profit, now Ford sees $6 billion. Hmm, profits affect stock prices after all! That explains why there are so many rules on how we report profits, and earnings per share,
Observers are remarking that global companies are just starting to feel the impact of a higher dollar. If the US Dollar rises, companies buy fewer dollars with their francs or bolivars when they bring money back here. Let's take a look.
Ford
Ford has been trading in a 15-18 range on this weekly chart. The reaction to their profit pullback is rather obvious, it is huge. And Ford is probably going to fall out of its trading range. Now let's look at the US Dollar.
U S Dollar
This is the same time period with teh same 13 and 34 exponential moving averages shown.
I am showing the individual charts realizing that examing them is new to most of you. The Dollar is soaring above its trading range of the last two years.
There are a couple of ways to examine the relationship more closely. One way is to super impose the dollar on the Ford chart.
This makes the causation much more obvious. As the greenback has risen, shown in green, Ford held up, until it did not any more this week.
A second method is a ratio chart. If we construct a ratio of Ford to the Dollar, the chart will rise when Ford is outperforming the dollar. It will fall when the Dollar begins to gain on Ford.
Ford versus the US Dollar
While this at first glance appears to be the first chart, and after all Ford is charted in US Dollars, look closely. Here the drop is more severe and completely below both moving averages. In this chart the index has fallen out of the trading range for the last year and a half.
In computing Other Comprehensive Income we consider four parameters. One is the change in currency transactions. This is the result of bringing profits from another currency to US Dollars. The result here is that US Companies will be pressed to perform just as Japanese companies were when the yen was strong in the 1980s and 1990s.
Questions for Study
What is OCI/
Where is it reported? Why is it reported on the balance sheet and not the income statement?
How does a company hedge aginst an adverse currency event?
On the chart we used tow moving averages. What is a moving averag? How can the action of moving averages of different time lengths act as early indicators of a change in trend? What is the difference between a moving average and shown here, an exponential moving average?
Here is an explanation of moving averages.
Professor Elam 