According to the New York Times, the satellite launch company, founded by Richard Branson, announced sweeping cuts last week as it struggled to recover from a high-profile rocket failure in January. Questions: Source: Granville, K. (2023) Virgin Orbit Files for Bankruptcy After Failed Launch and Lack of Funding. The New York Times, April 4 (Retrievable… Read more »
Posts Categorized: Financial Statement Analysis
Bank Vulnerability
According to the Washington Post, a new study shows that hundreds of banks in the United States would be in danger of failing if they were hit by runs similar to the one that recently brought down Silicon Valley Bank. Questions: Source: Werner, E. (2023). Hundreds of banks would be vulnerable in SVB-style runs, researchers… Read more »
Reining in Crypto
According to the New York Times, the SEC fined cryptocurrency lending firm Nexo for violating federal securities law. Questions: Source: Yaffe-Bellany, D. (2023) Crypto Lender Nexo Is Fined $45 Million as Crackdown Widens. The New York Times, Jan. 19 (Retrievable online at https://www.nytimes.com/2023/01/19/business/nexo-sec-crypto-fined.html?)
How Common is Securities Fraud?
According to a new study, ten percent of public companies commit securities fraud each year. Questions: Source: Livni, E. (2023) Just How Common Is Corporate Fraud? The New York Times, Jan. 14 (Retrievable online at https://www.nytimes.com/2023/01/14/business/dealbook/how-common-is-corporate-fraud.html?)
A Bad Year for Bonds
According to the New York Times, although it has been a bad year for bonds, the future appears to be brighter. Questions: Should you buy bonds as a speculative bet for 2023? What did the period from January through October 2022 look like for bonds? What are the long-term prospects for bonds, according to the… Read more »
Nikola Fraud Update
Trevor Milton convicted of securities fraud after 6-year successful stock market run. His company and concept car was all a lie! Questions: Why do, as the article says, “corporate executives tend to portray activist short sellers as vigilantes?” Related to the first question, what has Nathan Anderson’s firm done in the past several years? Why… Read more »
Stocks extend Losses
There has been a lot of market movement since Fed Chair Powell’s Jackson Hole speech last Friday. Questions: What did Powell say about interest rates? 2. What did the article say that Powell’s speech is trying to remind people about? 3. How high do you think interest rates will be raised? 4. What do the… Read more »
Long Awaited Agreement is Only a First Step
According to Thomson Reuters, the U.S. Public Company Accounting Oversight Board (PCAOB) on Aug. 26, 2022, finally signed an agreement with Chinese authorities that will allow the board to inspect and investigate audit firms based in China and Hong Kong whose clients trade on American exchanges. Questions: When will the PCAOB start inspections? What were… Read more »
Exploiting Inflation to Pad Bottom Lines
According to The Washington Post, some companies are exploiting inflation to pad their bottom lines. Questions: What evidence indicates that companies are raising prices to exploit rather than in relation to underlying cost increases? If companies are passing on their own higher costs to consumers, their _______________ should stay roughly the same. How do analysts… Read more »
Walmart’s new venture into financial technology
Walmart Inc.’s financial-technology venture agreed to buy two small companies and rebrand itself in a step toward providing an app that enables customers to save, borrow and receive money. Questions: What are the two small companies the Fin-Tech venture agreed to buy? What is Walmart’s venture called? Why is this move going to shake up… Read more »