Professor Elam

Dell Talks his Prospects Down

Weekend March 30 2013

Dell has now made a 274 page filing with the SEC talking down future prospects for the company.

As Carey Kingsley noted in ACCT 3311 class, one would think a guy as smart as Mike Dell would have counted the votes first! Now even the CFO says they are fighting for market share. 

As I mentioned, we are studying equity in ACCT 3312. Reading all the articles you can goolge on this deal will give you valuable context and additional understanding about this part of the balance sheet. 

Tim Kuhn Presents HOLT CAT

Thursday March 28 2013

Tim Kuhn Chief internal Auditor for HOLT CAT , spoke to students and faculty at TAMUSA at noon today. Ten faculty members toured HOLT CAT two years ago hosted  by Paul Hensley CFO for HOLT. 

Tim did a fine job explaining the various entities involved in HOLT CAT. HOLT CAT is the largest CAT dealer in the USA with 28 locations from Texarkana to Laredo. Surprisingly the internal audit staff consists of three people. The External Auditor is Ernst and Young. Tim was previously with Deloitte in Washington DC and Houston. 

Tim went on to describe the risk analysis function of an internal audit group. I was pleased to get some good questions and observations from the audience. Professor Jim Hackard observed that the SA City Manager had described that there were 95 steps in hiring someone for the city, She had cut that number of steps in half and planned to do so again. Jim observed that this was the sort of thing an internal audit department did thereby improving efficiency. Students and faculty stayed after the presentation to visit with Tim.

Professor Judy Lewis related her experience visiting an ethics training seminar at HOLT. 

 

This was the third in our Spring Lecture Series which previously included Bruce Howard from FHK on non verbal communication, and Jessica Wertz on the Certified Management Accountant designation. 

Our thanks to Tim for taking time to visit our campus. Did I mention Tim is an Aggie?

Return of the Z 28

Thursday March 28 2013

The original Z 28 Camaro was a 1967 offering, right after the top of the bull run in the markets form 1948-1966. It was bare bones and powerful, the perfect ending to an era typified by the Beach Boys, Jan and
Dean, the Ripchords singing the praises of fast cars. Detroit piled in at the very end of the era producing more and more outrageous examples until clear air legislation collided with the lack of technology to support high horsepowwer machines. But the era ended with offerings like the Plymouth Roadrunner Superbird.

Now that the  markets are knocking on all time highs again,  not surprisingly the Z 28 is back, trimmed down with one radio speaker and no air conditioning. A Volt it ain't. 

Market tops are typified by bright colors, bigger faster autos, taller buildings, and other expansive statements. We have mentioned many of these on our Market Perspective Blog.

it is a fitting statement that a former Wall Street icon, what's good for GM is good for America, has resurrected itself and its confidence to bring back a muscle car at SPX 1561. 

 

Oddly the Beach Boys 2013 Tour does not feature an event in Texas or California, what's up with that?

European Labor Costs

Thursday March 28 2013

Proponents of the higher minimum wage or the so called living wage need only look toEurope to see the fallacy of this idea. 

N o wonder Saab folded in Sweden, same for Volvo. Among large countries, France is the socialist leader in tryng to legistlate wealth thru minimum wages. Since Turkey is not in the EU it is not shown but that would be the best comparison for a country that has it about right. 

Ten Top Non Tax Payers

Wed March 27 2013

Here are ten large companies paying no income taxes. Various reasons, an interesting read. 

Tim Kuhn with HOLT CAT to speak tomorrow

Wed March 27 2013

Tim Kuhn with Holt CAT will speak in the small auditorium tomorrow at noon. His position as Chief Internal Auditor brings him in contact with the entire operation. I met him at the SA IIA chapter meeting.

Please plan on attending; networking is key to your career success.

An Invitationf from San Antonio Institute of Management Accountants

Wednesday March 27 2013

Those attending the talk by Jessica Wertz last Thursday received a fine e mail invitation to join the local chapter at a discounted rate. I wanted to share this opportunity with all of you.  You have heard me say that accounting certifications are in a transition period. Here is proof of just that with a coordinated effort on the part of national and local reps.

Hi Everyone-

 

Thank you for coming to the IMA and CMA information session last Thursday.  I hope that you can see how much value the IMA and CMA can bring to you. I have attached the presentation from last week for you reference.  Remember you can register with the IMA for only $25 for the year.  The code is JOIN1425LB.  The offer expires very soon. 

 

As discussed last week, I would like to invite you all to the San Antonio Chapter of the IMA monthly events.  We meet the third Thursday of every month. This is a great opporunity to hear great speakers and network.  Our next meeting is Thursday, April 18 at the Old SanFrancisco Steakhouse.  I hope to see you there.

 

Please join our LinkedIn Group (San Antonio Chapter of the IMA) to learn about our Chapter events as well as other events in Texas and other areas of the United States (including the Annual Student Conference).  I will also invite you to join our LinkedIn Group (if you have a LinkedIn profile associated with this email.)  Here is a link to our Linked In Group:  http://www.linkedin.com/groups?gid=2122350&goback=%2Egsm_2122350_1_*2_*2_*2_lna_PENDING_*2

 

Here are some more useful links for you:

 

IMA Annual Student Leadership conference:  http://www.imastudentconference.org/

IMA website:  http://www.imanet.org/ima_home.aspx

IMA Student website:  http://www.imanet.org/ima_student_programs/student_membership.aspx

IMA Texas Annual Conference in Dallas:  http://www.imatexascouncil.com/Event/default.html  <Early Bird pricing ends 3/31>

San Antonio Chapter website: http://www.ima-sa.org/

 

If you have any questions for Lisa & I, please let us know.  Thanks again!

 

Jessica Wertz

Membership Director

San Antonio Chapter of the IMA

Discount Reminder

[email protected]

 

The Leverage of Gold Miner

Weekend March 24 2013

 

 

Buying a gold miner is like buying an oilfield service company. 

When oil is cheap no one wants service companies, they are wanting for work and letting employees go. When oil prices are up though it is a sellers market for them, they can name their price and so their share prices soar faster than an energy company itself. 

I notice Eldorado gold EGO has 19 million ounces of proven gold reserves. You are not betting on how much money EGO is making today or tomorrow, you are betting on what the reserves will be worth with gold at successive higher levels of 1900 2100 2300 etc if costs stay the same at 1200 per ounce of extraction. They are trading at 1.2 times book since the gold price is only four hundred above the extraction cost and of course the media has everyone believing gold is going to tank below 1,000, so no value is ascribed to the company. I am just using EGO as an example.

For EGO if gold advances 100 dollars per ounce  that is 100 x 19 000 000 = 1.9 billion dollar increase in reserves, good thing I have the Big Red Official Calculator of the National Debt with sixteen digits

IN contrast CEF Central Fund is still trading flat with no premium, a rare event. One can buy the gold and silver for just what it is worth. But there is no leverage as with the miners. 

This post was prompted by an excellent inquiry from an alert reader of TMP, thanks!

 

Career Fair this Past Thursday March 21

Weekend March 24 2013

Bennet Grey brought numerous firms and governments to campus this past Thursday. 

Target had several recruiters. 

 

 

 

Here are some other firms that were present.

 

 

 

 

 

 

Valero is a major employer in San Antonio.

 

 

 

 

 

 

 

 

Enterp;rise Rent a Car

 

 

 

 

 

 

 

 

Bruce Howard a member of our Business Advisory Council poses with a TAMUSA student. Bruce is Operations Manager for FHK CPAs. 

 

 

 

 

 

 

 

CMA Presentation Thursday Noon

Weekend March  24 2013

Jessica Wertz from the local Institute of Management Accountants chapter joined Lisa Beaudoin from the national headquarters in New Jersey for a presentation on the Certified Management Accountant designation.The presentation was this past Thursday March 21 2013 in our small auditorium. 

Jessica related that she decided to work for a company rather than an external accounting firm. Therefore she studied and passed the CMA exam rather than the CPA exam. CMAs are a  fraction of the number of CPAs. There are 38,000 CMAs today while Texas alone has granted over 100,000 CPA certificates. 

We are in a transition period. As newer designatiions like CIA and CMA gain more credibility, more students I believe will examine the expanding range of options.