Ridout Barrett CPAs Tony Ridout has visited and addressed our students many times. We have placed graduates with Ridout for several years.
Financial Consulting Firms
Aventine Hill Partners, Inc. Beth Hair CEO founded Aventine in San Antonio in 2009. The firm now has offices in Dallas, Austin, San Antonio, and Houston. She formerly was with RGP.
Resource Global Professionals Susan Hough has been to campus and spoken to our students. She is the San Antonio Manager of RGP. RGP and Aventine are not CPA firms. Instead they offer contract specialists for firms needing specific tasks such as compliance or Controllerships.
Acounting Today This is an independent site for accounting news regarding firms and current issues.
Certified Information Systems Auditor CISA Now that everything is literally on the computer and cyber security becomes a prominent issue, I see more and more accounting professionals with this designation. Previously known as the Information Systems and Audit Control Association, it now goes by the acronym ISACA.
Institute for the Study of War The Institute for the Study of War advances an informed understanding of military affairs through reliable research, trusted analysis, and innovative education. We are committed to improving the nation’s ability to execute military operations and respond to emerging threats in order to achieve U.S. strategic objectives. ISW is a non-partisan, non-profit, public policy research organization.
Stratfor This Austin, TX based site was begun by an ex Texas State Professor.
My take is that MCD is just like Wal Mart WMT. Both have preached low price for so long they own it. Attempts to go up scale have never worked. MCD is never going to build a Five Guys in side a Golden Arches. So give it a rest guys. You have too many locations, a mistake Whataburger has not made.
Michael Pearson Valeant CEO got a $100 M margin call from Goldman Sachs this past week. Friday Oct 30 GS told him to pay the loan or face foreclosure by Tuesday Nov 3. Sure enough GS sold 1.3M shares that Thursday Nov 5. We study equity in ACCT 3302 and 3304. So here is a teachable moment.
What is a margin call? Stock purchased with borrowed money from the border is said to be bought on margin, that being the borrowed money. Ione can borrow 50% of the purchase price. If however the stock falls enough that the 50% equity of the buyer is wiped out, the broker 'calls' the margin and sells the stock.
VRX.TO has been in free fall.That is the reason for the margin call. It is falling so much there is barely equity to pay the loan.
On this two hour chart one can readily see the GS forced sale Nov 5. And it looks like there have been at least two other previous instances where no doubt the same thing happened. Dumping such a stock into a market with few buyers, well I am amazed the stock has not gapped down much further.
Luis had the chair of Merrill Lynch, the strategist for Goldman, and John Templeton.
The CEO of Merrill is virtually useless, clearly understands little about markets or market history.
The guy from Goldman also speaks glibly but seems to have some understanding.
Templeton stands head ands holders above the other two,observing that the bear market might already be over. Which is was. He is most interesting in Part II observing that there are always bull and bear markets but that as long as you do not buy with borrowed money and invest well, you will be all right.
Now reading assignment who is or rather was John Templeton?
We study earnings management and financial engineering in both intermediate accounting and ethics.
Here is an example of a potential research article for the ethics class. How much have stock buy backs figured in moving the stock market higher? Do companies have to generate real earnings are can we just buy plow our own earnings into stock. lowering hte numnber of outstanding shares and raising earnings per share?
NYSE margin debt was $457 billion in November, still down from its February 2014 peak of $465.7 billion.
This updated chart of corporate buybacks and mergers shows that after reaching the highest levels since the S&P's 2007 top, buyers pulled in their horns somewhat as 2014 drew to a close.
Thus, two more key measures of optimism suddenly betray a diminishing appetite for stocks.
As we noted in The Elliott Wave Financial Forecast in November, the investment community's obsession with share buybacks at price peaks generally turns into a deep misgiving. This process appears to be underway, as Bloomberg recently quoted a chief investment officer saying, "You can only go so far with financial engineering before you actually have to have a business with real growth."
The financial media sometimes refers to this corporate largesse as "money returned to owners." But history shows that it's nothing of the kind, because shareholders invariably hold on to their investment until stocks prices are much lower. By then, buybacks are so completely discredited that they all but cease to occur.
A reversal must be close: Bloomberg recently reported that in 2014, S&P firms will spend about 95% of their earnings on their own shares and dividends. Some companies are even borrowing money to buy their own shares. It's a strategy they will come to regret.
I made the comment on the investment blog that the smart money would 'bet on Vlad.' So far that prediction is working pretty well. Here is a good summary on red flags the West ignored. AFter drawing a red line in Syria and then failing to follow through, Putin seized the initiative so keep his man Assad in Office, and his Navy Base in the med.
Dictators and tyrants will always expand into weakness. Putin ahs been trying out the U S Syria and found nothing to stop him. And so he invades the Ukraine.
Fredrick Forsythe laid all this out in The Devil's Alternative originally published in the 1970s. Now it is coming true, the fight for the Ukraine, the bread basket for Russia. Russia also has the ability to declare the food unsafe that is exported cutting off income for the Ukraine, and of course Russia controls its energy supplies. There is a parallel, Stalin tried to choke off Berlin after WW II. THe US responded with
teh Berlin Airlift. I don't see anything like that as possible now. Berlin was a small city, the Ukraine if an entire country.
The markets are overbought this is the opportunity to claim this incident is taking them down,
Since going independent in 1991 Estonia has become a high tech center. Certainly the small size of the country made it easier to 'get things done' but it also highlights the folly of the Soviet System.