Sep

16

Will Wall Street Learn From Lehman Brothers Bankruptcy?

September 16, 2008 | 2 Comments

After the US government put out a forest fire with the takeover of Freddie Mac and Fannie Mae last week, Wall Street’s troubles were far from over. As they say, when you see a rat in the house, you can bet there are hundred more rats lurking in the dark corners. Slowly but surely, they […]

More on this topic (What's this?)
Uncontrolled Risk (Michael James on Money, 6/14/10)
ARE WE HEADED FOR ANOTHER LEHMAN? (THE PRAGMATIC CAPITALIST, 5/26/10)
Felix Zulauf: We May Have a Lehman, AIG, and Citi in One Day (Expected Returns, 5/29/10)
Read more on Lehman Brothers at Wikinvest

Sep

8

Free Cash Flow: Lifeblood of Corporations

September 8, 2008 | 2 Comments

Before you invest heavily in stocks, you should really pore over the cash flow statement. I regard it as the bible, more important than the balance sheet or profit/loss statement.
Emphasizing on earnings alone is ill-advised as devious managements can window-dress results using accounting gimmicks. Cash flow is harder to fake and following the trail of […]

Aug

25

Inflating Earnings By Capitalizing Expenses

August 25, 2008 | Leave a Comment

In real life, expenses are pretty straightforward. Anything which constitutes an outflow of money to pay for a product or service is deemed as an expense. For accounting students, an expense is recorded when an asset is used up and a liability recorded. Simple, right?
However, there are instances when you struggle to answer this question: […]

Jul

22

General Motors Unveils Fuel-Efficient 2010 Camaro

July 22, 2008 | 1 Comment

This is the car - 2010 Chevrolet Camaro, which General Motors is unveiling as part of its revamp to capture an increasing segment of car buyers who favor fuel-efficient models. No more gas guzzling SUVs and trucks.
General Motors expects the 2010 Camaro V6 versions to be one of the biggest sellers as they can yield […]

Jul

13

IndyMac Collapses From Bank Run

July 13, 2008 | Leave a Comment

Cash is king right now because most investments don’t cut it, but if you think fixed deposits in banks are risk-free, think again.
Last Friday, Indymac became the largest regulated thrift and second largest financial institution in U.S. history (with $32 billion in assets) to be seized by federal regulators after succumbing to pressures of crashing […]

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