Boone & Kurtz Contemporary Business Weekly Updates » Understanding Accounting and Financial Statements (p522)

A Look Inside a Hedge Fund’s Black-Box Trading

Brahm Canzer — Mon, 19 Jul 2010 10:04:30 +0000

Description: A hedge fund started by four young math wizards is using a branch of artificial intelligence, called “computer learning,” to make investment decisions. Rebellion Research’s four, 20-something-year-old partners explain how their computer program “thinks” up their strategy.

Source: Marketwatch.com – video report

Date: 07/13/2010

Link: http://www.marketwatch.com/video/asset/a-look-inside-a-hedge-fund-black-box-trading/BFAFFD06-F76B-4AF3-B2D1-577D3300F2AD

Questions for discussion:

What do you think of the concept of a “learning-based artificial intelligence software program” that determines investing decisions?
How different is this business model than others presented to investors?
Would you be inclined to invest funds with this firm because of their approach?
Why do you think some investors would be inclined not to invest with them because of their model?

Gordon Ramsay Flees Kitchen as TV Fame Saves Restaurant Empire

Brahm Canzer — Mon, 14 Dec 2009 10:01:32 +0000

Description: On a gray morning in October, Gordon Ramsay bursts into the kitchen of his south London house, pop music blaring from the radio. At the heart of the room stands a 67,000-pound ($109,000) French cooking range that weighs 2.5 tons and had to be lowered by crane into the celebrity chef’s home.

Source: Bloomberg.com

Date: 12/11/2009

Link: http://www.bloomberg.com/apps/news?pid=20601109&sid=aRE.WJ51Hq2s

Questions for discussion:

Do you think Ramsay is a typical entrepreneur? Explain your answer.
How is he different? Explain your answer.
Summarize the reasons for the risk of bankruptcy.
How did Ramsay fix the problem?

Credit card usury bill coming soon in House

Brahm Canzer — Mon, 30 Nov 2009 10:01:28 +0000

Description: Several congressional Democrats said on Wednesday they plan to introduce legislation next week to cap credit card interest rates.

Source: Reuters.com

Date: 11/25/2009

Link: http://www.reuters.com/article/politicsNews/idUSTRE5AO4ZO20091125

Questions for discussion:

What the arguments for and against regulating credit card interest rates?
Do you believe rates should be regulated? Explain your answer.
What are the likely consequences of a more highly regulated credit card industry for the consumer and for the banks?

Exxon Mobil earnings plunge 68%

Brahm Canzer — Mon, 02 Nov 2009 10:03:28 +0000

Description: Exxon Mobil reported a 68% decline in third-quarter earnings Thursday as oil and natural gas prices tumbled from last year’s highs.

Source: CNNMoney.com

Date: 10/29/2009

Link: http://money.cnn.com/2009/10/29/news/companies/exxon_mobil/index.htm?postversion=2009102912

Questions for discussion:

Summarize the current financial situation for the firm.
Do you think investors will punish the company stock? Explain your answer.
How has the stock reacted in comparison to the rest of the stock market? Explain your answer.

New highs, but now a big test.

Brahm Canzer — Mon, 12 Oct 2009 10:03:16 +0000

Description: Goldman Sachs, Bank of America, Google, IBM and Intel are among the heavy-hitters due to open their books, giving the rally its first big challenge in weeks.

Source: CNNMoney.com

Date: 10/11/2009

Keys: Finance (p558), Economy (p66)

Link: http://money.cnn.com/2009/10/11/markets/sunday_lookahead/index.htm?postversion=2009101107

Questions for discussion:

Explain why financial information released this week by these firms will likely influence the entire stock market?
Examine the changing stock market valuations of some of the stocks mentioned in this article during this week and the affect they have on the market as a whole. Explain what happened.