A look at developments in the financial markets over the last week or so.
“What is the single most important thing for a company? Is it the building? Is it the stock? Is it the turnover? It’s the people, investment in people.”
– David Brent
Featured Article
How Ikea took over the world
“In a stunning global expansion, the Swedish home furnishings giant has been quietly planting its blue and yellow flag in places you’d never expect. Pay attention, Wal-Mart: You could learn a few things.”
Companies
Rolls Royce and the Sequoia letter
An interesting look at Rolls Royce and its operations, through the eyes of an activist shareholder.
“Rolls’ stock declined more than 30% in sterling during the year as investors lost confidence in management. We held our shares in the belief that Rolls’ wounds are self-inflicted and reversible. The recent share price does not properly value the civil aviation business even if we ascribe little value to the marine and energy businesses. However, management and the board seem stubborn and entrenched, and it may take a tough-minded activist to force strategic change.”
Shake Shack shares fall on first earnings report
“Shares in US burger restaurant chain Shake Shack fell by as much as 8% in after-hours trade in the US after it posted a fourth-quarter loss, which it attributed to a tax charge.” Still priced pretty rich on the promise of growth.
Related:
Three-story Chick-fil-A to open here this summer
Chick-fil-A opens in New York City.
Box to Wall Street: We didn’t miss earnings, you guys can’t count
Box CEO argues with analysts over share count estimates. While he may have a valid point, share count and share price should not be a CEO’s primary concerns.
“Business collaboration app Box saw its shares plunge as much as 17% after hours following its first-ever earnings report on Wednesday.”
New Packaging for Coca-Cola in Spain What is Black and White and Red all over?
Coca-Cola is testing new, unified packaging designs. Interesting given how much value is placed in its brand.
Markets
Do We Need a 50-Year Bond?
A few reasons for the US (and other countries) to issue a 50 year bond. Point 4: you don’t buy a house with credit cards.
““When the ducks quack, feed them” — Wall Street proverb”
This 27-Year-Old Made Millions Riding the Death Spirals of Penny Stocks
“Josh Sason profited by lending failing companies money” – secured by discounted convertible stock.
Investing
5 Signs of a Good Annual Report
“Here are five signs of a good annual report — that is, one that is helpful, informative, and could signal that a smart management team is at the helm.”
Related:
Don’t Overlook This Factor in Your Research Process
“When was the last time you read a stock report that included a discussion of the company’s culture?”
Long Reads
How Ikea took over the world
“In a stunning global expansion, the Swedish home furnishings giant has been quietly planting its blue and yellow flag in places you’d never expect. Pay attention, Wal-Mart: You could learn a few things.”
A Beginner’s Guide to the Secret Language of Airport Runways
“For most of us, the sight of blue lights and yellow lines outside an airplane’s window is the cue to turn our phones back on. For pilots, it’s more like a secret language—a language that is vitally important to safety and, increasingly, embedded with emerging technology.”
Why Your Brain Hates Slowpokes
“The high speed of society has jammed your internal clock.”
Graph of the Week
Facebook, Google, and the Economics of Time
Source: http://www.theatlantic.com
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