THursday /27/2023
THis will be an interesting partnership, click to read
Professor Elam
Accounting & Investing Info for San Antonio A & M
about
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Professor Elam
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Professor Elam
7/26/23
PCAOB çhair declares This is unacceptable
CLick for the story. ånd fines now total $10.5 M but so what, chump change in the Big Four League.
These firms have been paylng fines as long as I have been teaching ethlcs since about 2006.
And their performance has only gotten worse.
What does it take to get kicked out of this racket?
Question, how is it that govt employees with salaries of well less than $200K can find all these deficiencies but the brass at the top of the audit firm making $600K cannot, can anyone explain this?
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Professor Elam
Friday July 14 2023
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Professor Elam
Thursday July 13 2023
NASBA passes a rule extending time to pass CPA exam from 18 to 30 months
They claim this is part of the pipeline program to increase pass rates. I don't see it, 2.5 years, if you did not pass in the first eighteen it is not likely you will later, time is the enemy of the candidate.
And this does not address the problem of requiring another 30 hours credit beyond BBA at considerable time and expense with no guarantee you will pass the exam.
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Professor Elam
Tuesday July 11 2023
WSJ article on RL notes a price break out on the chart but gross margin lags, let's loook
Monthly
RL has not exceeded the high of 160 back in 2015. It has a wide range trading as low as 60. Resistance is now 130
Weekly RL hs not been participating with the broader market, it is not a tech stock
Daily
The break out is much more obvious on the daily chart.
4181300/642500 = 6.5%
3653300/6159800 = 5.9
so gross margin has improved and the stock price is up
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Professor Elam
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Professor Elam
Thursday June 29 2023
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Professor Elam
Wed 6/28/23
NVDA is trading at a price earnings ratio of 219. Investors put up $219 to buy one dollar of NVDA earnings.
BY the way those earnings are a mere $1.91 a share.The mania here is for artificial intelligence AI. The same sort of mood propelled investors to buy the dot.coms in 999 which made no money. The NASD peaked March 2000 around 5,000. It lost 78% of its value in the next three years.
Ten Years of Tesla
Apple in contrast carries a 31 P/E and is earning $5.90 a share. Gee whiz, which do you think is a better buy,.
Lordstown Motors
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Professor Elam
6/28/2023
Obama had Solyndra, Trump has Lordstown. Lordstown was begun via an SPAC,money in search of an idea.
It went public in 2020 trading as high as $400. Now just three years later it cannot comply with its agreement with Foxconn to buy the former GM plant.
This is another example of social mood on boil. The idea that the firm would build a Tesla style pickup with no experience is the sort of thing seen when investors are cresting a mania, the FOMO fear of missing out is too great and obscures judgement.
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Professor Elam
Wed June 21 2023
Burger King, the longtime No. 2 U.S. burger chain, looked even more like a pretender to the throne after slipping to third place in 2020 behind Wendy’s by revenue.
But market share was the least of its concerns after the pandemic roiled the restaurant industry. Its franchisees have seen revenue and profitability sag, and two of its largest owners have been forced into bankruptcy recently with another failing to pay royalties. Now the chain is nine months into a mission to “reclaim the flame”—a tough-love approach to beef up its best operators and encourage weaker ones to cut back.
Even with a minority of the promised sums invested, there has been some improvement with comparable sales growing by 10.8% in the first quarter from a year earlier. Investing in only the strongest franchisees makes sense—there is no reason to water your weeds. Fast-food chains with financially weak partners have a harder time pushing through promotional discounts or launching products that might require a new piece of equipment. Dirty, understaffed or poorly located restaurants detract from a chain’s overall corporate image.
But continuing cost pressures and now signs of fatigue by core fast-food customers, who skew younger and lower income, are weighing on quick-serve restaurants. Along with Wendy’s, Jack in the Box, Shake Shack and even Taco Bell owner Yum Brands, 2023 earnings-per-share forecasts for RBI have slipped over the past 12 months, according to FactSet. The sole exception? McDonald’s, which seems to be moving from strength to strength.
Professor Elam 