All GLG News Analyses Filed Under: Corporate Treasury & Finance

Robert KempProfessorUniversity of Virginia - CC

Without Relief, The Accounting Profession Will find It Hard To Embrace Standard Harmonization

November 28, 2006

Analysis of:Booming Audit Firms Seek Shield From Suits | online.wsj.com

1.    The US accounting profession is attempting to harmonize US GAAP with IFRS.

2.    The US accounting profession finds it hard to embrace some harmonization principles because of the US legal environment.

George PughPresidentGeorge Pugh & Co

Say Hey for M&A

November 27, 2006

Analysis of:M&A Synergies? Don't Count On It | www.businessfinancemag.com

This article is based on a survey of corporate executives that states that there is evidence that M&A doesn’t necessarily greatly translate into shareholder value, but there are mergers that do, and that is why people keep at it. Of those surveyed only about half thought that there were either revenue or cost synergies. The strongest agreement in the poll was that it helped mergers helped retain the right people both for the buyer and seller, increased customer satisfaction.

Changes in the tax situation are important too, and were not noted in the article

Robert KempProfessorUniversity of Virginia - CC

Health Care Accounting - Financial analysis issues

November 27, 2006

Analysis of:Yes, Red Wine Holds Answer. Check Dosage. | www.nytimes.com

1.   Susan Mangiero is correct in highlighting the impact of increasing health care costs.

2.   Financial analysts need to be concerned about the impact of retiree health care costs on earnings and the balance sheet.

3.   FASB 158 changes the accounting for retiree health care costs.

George PughPresidentGeorge Pugh & Co

Red-Hot Smoking Beta

November 27, 2006

Analysis of:Lowering the Bar (on cost of capital) | www.cfo.com

The author writes on declining Betas and the impact on share pricing and hurdle-rate selection.  The author properly points out that falling Betas can be used to create hurdle-rates were just too low. The author further notes that Beta came back to historical levels for non-tech stocks.

The author claims that these changes could be the result of either greater fluctuation in stock price or in broader market. The author further calls for caution in situations where the Beta declines to extremely low levels.

The following analysis will discuss what Beta actually represents, and how to use them more effectively.

Technology Wins

November 27, 2006

Analysis by: GLG Expert Contributor

Analysis of:clash of titans: why big banks are wading into the stock exchange fray | www.ft.com

Europe and US Trading Platforms
MiFID
Information Technology
Event Stream Processing

Harnath SithamrajuConsultantHarnath Sithamraju

Boom time for Private Equity

November 27, 2006

Analysis of:Bank plans $1b private equity fund in Boston | www.boston.com

1.Private equity developing as an alternative investment vehicle.

2.Cashed-up private equity firms will drive changes in host economies.

Harnath SithamrajuConsultantHarnath Sithamraju

Promising prospects for ETFs

November 27, 2006

Analysis of:Exchange-traded funds ride a tidal wave of growth | www.usatoday.com

1. New and innovative ETFs likely to challenge Mutual Funds.

2. Evolving as low cost investment vehicles .

Factors may change return thresholds, but don't forget the underlining assumptions

November 22, 2006

Analysis by: GLG Expert Contributor

Analysis of:Lowering the Bar (on cost of capital) | www.cfo.com

In determining the cost of capital, corporations place a threshold of capital expenditures, acquisition target, and other uses of idle cash. With the changes in market and company directions, many companies have come to realize their beta (a primary element in the cost of capital calculation) has changes over time. But does the change merit an adjustment in the company’s benchmark. This article seems to miss the mark on the under-lying reason for the calculation.

Old methods are too broad, but new method is unproven

November 22, 2006

Analysis by: GLG Expert Contributor

Analysis of:A Triple Play in IP Valuation | www.cfo.com

For years, financial executives have been valuing intellectual property using standard and accepted methods such as cash flow calculations to raise capital, value acquired assets, and determine shareholder value. While the NPV calculation is accepted, much of formula is marred with broad based assumptions that can wildly swing the final valuation. Much like valuing a house using a 5-mile radius; using comparable asset purchases, Black-Scholes computations, or forecasted cash flow streams are at best assumptions in the calculations. Finding a better mousetrap could prove to be a more accurate answer.

Nitish GroverPrincipal, OwnerNitish Grover and Associates

Information Overflow - The Many Facets of Financial Reporting

November 20, 2006

Analysis of:Global Capital Markets and the Global Economy | www.pwc.com

A truism - Financial  Reporting  has  changed  and  is  evolving at  an  ever  increasing  pace  especially  over  the  last  ten  years. The  referred  article  is  an  elaborate  essay  on  accounting, auditing  and  financial  reporting  and  covers  many  facets.

In  this  analysis  I  restrict  myself  to  enunciating  my  thoughts   on  the  questions  asked  in  the  public  request  which  are:

1. Until  regulations  change  the  reporting  model, how  can  investors combat  the  lack  of  valuable  information  in  assessing  the  future  performance  of  companies?
2. What  sources  of  information  should  they  rely  on  for  analysis?

Previous Page : 234567891011Next61 to 70 of 321