• Professor Elam

    Thursday June 26, 2014

    For the first time since the 1970s the US will be exporting oil. This is a result of increased production in the  Shale areas of ND and South Texas as well as the Permian Basin. 

    What could go wrong?  Glad you asked.

    Valero

    Screenshot 2014-06-26 09.26.00

    VLO dropped 8.3% on over 4x normal volume. Why?  The thinking is that the refiners have had their pick of what oil to refine. With more output than ever and no exports, there has been a bit of surplus of oil to refine. Now the lighter  grades or condensate will be exported. US Refiners have geared up for the heavier grades of oil. But as the saying goes, there is always a fundamental event to verify the technical result. And here VLO has nearly doubled from its October low at 32.5 to 57. A correction was probably inevitable. The news apparently triggered a wave of stop sell orders placed under the current price. The result was a wave of computer generated selling. 

    Is this a long term deal or  just a short term knee jerk reaction, we shall see. NOthing boring about oil trading. 

  • Professor Elam

    Wednesday June 25, 2014

    Whoops, this was meant for the professorelam blog but it does give you an idea fo what we are recommending for our students.

    Here are some examples just today of how reading the WSJ will improve your contextual understanding of what we discuss in class.

    Page A 13 SEIU is attempting an union organizaing ruse by actions to boost the minimum wage. This would allow organizing mom and pop franchises like Subway. 

    A 14 The WSJ calls it IRS E mail Jeopardy as the service continues to fabricate stories justifying its losss or desctruction of e mails. Try telling the IRS such a whopper during your next audit. 

    A 15 Business continues to flee the 39%  US corporate tax rate. ON page B5 even staid Walgreens is considering leaving the US. 

    C1  REITs dizzying rise suggests over valuation, Question, what is an REIT and why are they over valued?

    A1  The US is set to export oil for the first time since the 1970s, how does this impact our blance of trade, how does this affect Texas, what kind of oil is being exported and why, what you mean there are different kinds of oil, you bet there are, quite a bit different. 

  • Professor Elam

    Wed June 25, 2014

    Mark Hulbert comments on corporate profitability.

    We are studying equity in ACCT 3310. Notice how Mark projects corofits which he then translates into stock market performance. Is this valid?  Do stocks always reflect corporate performance?

  • Professor Elam

    Monday June 23, 2014

    Here we go again with a list of top careers for college grads. This one comes from UC San Diego and there is a link to the actual report. I don't agree with 10 thru six, here goes.

    10 – INsurance Sales Agent  Well no doubt property casualty large line companies are requiring a degree, I realy don't know why. You are an order taker and they will send you to order taking school for a week and then intern you with another agent to learn how. I can't abelieve there is a shortage..

    9 – Public Relations Specialist. Well ifyou can get hired by a government this pays pretty well, no really, it is a tough game however in the private sector. At Texas State they actually had a week long program titled what to do with your mass communication degree

    8 – Management Analyst, Unique Expertise, hmm, at what, I mean really, I can see HR or Supply Chain but just claiming youare a management analyst is likely to land you a job at the Outlet Mall where you can analyze retail sales, yours

    7 – Computer Systems Analyst – Hmm how about computer systems programmer?  If so I would give this a heads up, Better yet pair this with an accounting degree

    6 – Elementary School Teacher  My eyes rolled at this one, every woman in the College of Ed or near every one of them, wants to teach little kids, they are not physically threatening to the teacher and they still like school, hence there are a jillion applicants, try 8th grade science or math instead, I understand there is a lack of coaches as well, if you are willing to bet your carrer on what a bunch of teenagers do on Thursday or Friday night

    The top five are either some sort of computer application, accountant, or here we go with marketing analyst again. Trust me, most marketingjobs, as in 97% are sales not analyst jobs. 

    Incredibly I did not see Petroleum Engineer on the list, and once again for this brief window of time that is in demand again, big demand. My suggestion as an alternate to the general management idea is supply chain, coupled with GPS and Pert Charts. 

    Hmm, and I never met an electrical engineer out of a job either. 

    Increasingly accounting needs more computer information which we are providing with SAP training. 

     

  • Professor Elam

    Monday June 23, 2014

    Rackspace RAX is hte start up success sory of San Antonio. BUt success atracts competition. And that is coming from big boys with deep pockets like Google and possibly Amazon. And so the stock price has dropped from its all time high of 80 to the low 30. RAX has hired J P Morgan to help with well strategic issues. 

    Here is another company with lots of issues to illustrate what we will discuss in discussing equity in ACCT 3310.

     

  • Professor Elam

    Monday June 23, 2014

    fLULU Chairman Dennis Wilson stepped down amid the sheer pants stumble. Now he wants more control.

    We focus on equity issues this week. LULU is a good place to start. Here is a recent start up and public company that went from nothing to wild success. Then, as often hapens, a mis step occurred. the pants were too sheer and the the firm missed the move to brighter colors. who says the future is all high tech?

    It's all here, a high flier tumbles in price, the CEO is ousted, the investment bankers huddle, a proxy fight is on. 

     

  • Professor Elam

    Weekend June 22, 2014

    Lance Armstrong finally admitting doping while cycling. And now the USPS wants its sponsor money back, in fact three times that. 

    Armstrong replies that USPS got what it wanted, lots of publicity at the time. The later revelations did not diminsh that. 

    Hmm, nevertheless the government is suing. 

    Does the government have a right for the return of its sponsor money?

  • Professor Elam

    Thursday June  19, 2014

    I received this nice e mail following my name  from Frost Bank. As always it pays to read the blog to be aware of internships, job offerings, and what is generally going on!

    Dennis Elam

    I wondered if you can put me in contact with the TX A&M San Antonio folks or forward this email.  Frost has a current opening for a college intern in our Audit department.  I noticed that there have been students from there who have recently participated in our chapter events.  This is a great opportunity for a student who is interested in internal audit as a career.  This position is a paid internship and prior interns have also used it for internship credit at their college.  

    I have summarized the info that is listed on our website.  Interested candidates will need to apply via www.frostbank.com.  If anyone has questions, feel free to email me.

     

    Must be a Junior or Senior level student currently enrolled in a four year degree program with a concentration in Business, English or other degree plan as approved by management

    * Minimum 3.0 G.P.A.

    * Focused reader with strong attention to detail

    * Strong written and verbal communication skills

    * Strong organizational and time management skills

    * Professional appearance

    * Must be able to work 20-25 hours per week, Monday – Friday between the hours of 8:00 am and 5:00 pm

     

  • Professor Elam

    Tuesday June 17, 2014

    France took th money, and spent it.  Yes they have the two amphibious warships Russia ordered, but the rest of the West does not want Russia to have additional means to invade other Eastern Countries, which is what this ship is all about. Lacking real electronics capability Russia turned to France for these two ships.

    Now with the French economy in the tank and Hollande's popularity at a new low, France needs the business. Russia needs the ships. But the rest of the world is turning cold shoulder. What will Hollande do?

  • Professor Elam

    Thursday June 12, 2014

    Consider the WSJ today

     

    Iraq overrun by ISIS in Mosul and TIkrit, approaching Baghdad

    Lawyers and GM spar over Cobalt Black Boxes

    Dan Henninger and Karl Rove wonder if there is a foreign policy

    PEw Research confirms my New Civil War Theory

    The Green Dream simply does not add up

    World Cup, US Open, Father's Day this weekend

    Interestingly we hear little to nothing about the fall of Iraq