This document discusses the confusion caused by Tweeter Home Entertainment's stock ticker symbol being similar to Twitter's upcoming IPO ticker symbol. Tweeter, a bankrupt company, saw its stock price surge 700% as some investors mistakenly bought it thinking it was Twitter stock. The document warns that IPOs carry high risks, as markets can irrationally trade on hype in the short-term before fundamentals take over. It recommends investors understand these risks and avoid IPOs in DIAS portfolios until volatility subsides.
Singapore REITs are listed companies that you can invest in, similar to how you would buy shares in other companies. But unlike other listed companies, REITs use investors’ money to buy, operate and manage properties rather than run businesses.
There are currently 35 REITs in Singapore. They can be subdivided into these property sectors: office, retail, industrial, hospitality and healthcare.
Singapore REITs are listed companies that you can invest in, similar to how you would buy shares in other companies. But unlike other listed companies, REITs use investors’ money to buy, operate and manage properties rather than run businesses.
There are currently 35 REITs in Singapore. They can be subdivided into these property sectors: office, retail, industrial, hospitality and healthcare.
The Opening Bell - Disclosure Dilemma Part IIGus Okwu
Please find attached our weekly column, The Opening Bell. We value your feedback and opinion. So, please feel free to contact us with any questions and thoughts. Please send us a short email if you would like to be removed from the distribution list. Thanks for your interest and enjoy your weekend.
There are many ways a company can go public on the equities markets. Learn the difference between a traditional IPO and APO (alternative public offering) from Charms Investments.
The Play Bigger Data Science Team discovered powerful new insights into how U.S. VC-backed companies create enduring value.
Then HBR wrote a feature story around the Play Bigger Discoveries. What follows is the report behind the story.
For Free.
DealMarket Digest Issue136 - 11 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 136 - April 11th, 2014:
- Billion Dollar Deal for Goldman Sachs’ Private Equity
- More Capital for Fewer Ventures This Year-to-Date
- Singapore’s Temasek Expands
- Sellers’ Market: Private Equity’s Distributions Jump in 2013
- PE Performance Improves Outside the US But Still Below Public Markets
- Quote of the Week: Contrarian Views
568ChapterInvestmentsAfter studying this chapter, yo.docxevonnehoggarth79783
568
Chapter
Investments
After studying this chapter, you should be
able to:
1 Discuss why corporations invest in debt
and stock securities.
2 Explain the accounting for debt
investments.
3 Explain the accounting for stock
investments.
4 Describe the use of consolidated
financial statements.
5 Indicate how debt and stock
investments are reported in financial
statements.
6 Distinguish between short-term and
long-term investments.
S T U D Y O B J E C T I V E S
Feature Story
The Navigator✓
12
“IS THERE ANYTHING ELSE WE CAN BUY?”
In a rapidly changing world you must change rapidly or suffer the conse-
quences. In business, change requires investment.
A case in point is found in the entertainment industry. Technology is bring-
ing about innovations so quickly that it is nearly impossible to guess which
technologies will last and which will soon fade away. For example, will both
satellite TV and cable TV survive, or will just one succeed, or will both be
replaced by something else? Or consider the publishing industry. Will paper
newspapers and magazines be replaced by online news via the World Wide
Web? If you are a publisher, you have to make your best guess about what
the future holds and invest accordingly.
Time Warner, Inc. (www.timewarner.com) lives at the center of this arena. It is
not an environment for the timid, and Time Warner’s philosophy is anything
Scan Study Objectives ■
Read Feature Story ■
Read Preview ■
Read text and answer
p. 573 ■ p. 578 ■ p. 581 ■ p. 584 ■
Work Comprehensive p. 587 ■
Review Summary of Study Objectives ■
Answer Self-Study Questions ■
Complete Assignments ■
The Navigator✓
Do it!
Do it!
JWCL165_c12_568-611.qxd 8/12/09 8:29 AM Page 568
569
but that. It might be character-
ized as, “If we can’t beat you,
we will buy you.” Its mantra is
“invest, invest, invest.” A list of
Time Warner’s holdings gives
an idea of its reach. Magazines:
People, Time, Life, Sports Illus-
trated, and Fortune. Book pub-
lishers: Time-Life Books, Book-
of-the-Month Club, Little, Brown & Co, and Sunset Books. Television and
movies: Warner Bros. (“ER,” “Without a Trace,” the WB Network), HBO, and
movies like Harry Potter and the Goblet of Fire, and Batman Begins. Broad-
casting: TNT, CNN news, and Turner’s library of thousands of classic movies.
Internet: America Online and AOL Anywhere. Time Warner owns more infor-
mation and entertainment copyrights and brands than any other company in
the world.
The merger of America Online (AOL) with Time Warner, one of the biggest
mergers ever, was originally perceived by many as the gateway to the
future. In actuality, it was a financial disaster. It is largely responsible for
much of the decline in Time Warner’s stock price, from a high of $95.80 to
a recent level of $14.07. Ted Turner, who was at one time Time Warner’s
largest shareholder, lost billions of dollars on the deal and eventually sold
most of his shares.
The Navigator✓
Inside Chapter 12…
• Ho.
We have reason to believe that the SEC already has Qihoo on its radar. Given the information presented in this report, along with other issues that we have omitted, we believe that Qihoo will be delisted from the NYSE and management charged with securities fraud.
If you have watched the stock market for long period of time, you realize that it can be very unpredictable. One day bubbles flourish, things could get any better and then the next day it seem like the sky is falling.
The Opening Bell - Disclosure Dilemma Part IIGus Okwu
Please find attached our weekly column, The Opening Bell. We value your feedback and opinion. So, please feel free to contact us with any questions and thoughts. Please send us a short email if you would like to be removed from the distribution list. Thanks for your interest and enjoy your weekend.
There are many ways a company can go public on the equities markets. Learn the difference between a traditional IPO and APO (alternative public offering) from Charms Investments.
The Play Bigger Data Science Team discovered powerful new insights into how U.S. VC-backed companies create enduring value.
Then HBR wrote a feature story around the Play Bigger Discoveries. What follows is the report behind the story.
For Free.
DealMarket Digest Issue136 - 11 April 2014Urs Haeusler
SEE WHATS NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 136 - April 11th, 2014:
- Billion Dollar Deal for Goldman Sachs’ Private Equity
- More Capital for Fewer Ventures This Year-to-Date
- Singapore’s Temasek Expands
- Sellers’ Market: Private Equity’s Distributions Jump in 2013
- PE Performance Improves Outside the US But Still Below Public Markets
- Quote of the Week: Contrarian Views
568ChapterInvestmentsAfter studying this chapter, yo.docxevonnehoggarth79783
568
Chapter
Investments
After studying this chapter, you should be
able to:
1 Discuss why corporations invest in debt
and stock securities.
2 Explain the accounting for debt
investments.
3 Explain the accounting for stock
investments.
4 Describe the use of consolidated
financial statements.
5 Indicate how debt and stock
investments are reported in financial
statements.
6 Distinguish between short-term and
long-term investments.
S T U D Y O B J E C T I V E S
Feature Story
The Navigator✓
12
“IS THERE ANYTHING ELSE WE CAN BUY?”
In a rapidly changing world you must change rapidly or suffer the conse-
quences. In business, change requires investment.
A case in point is found in the entertainment industry. Technology is bring-
ing about innovations so quickly that it is nearly impossible to guess which
technologies will last and which will soon fade away. For example, will both
satellite TV and cable TV survive, or will just one succeed, or will both be
replaced by something else? Or consider the publishing industry. Will paper
newspapers and magazines be replaced by online news via the World Wide
Web? If you are a publisher, you have to make your best guess about what
the future holds and invest accordingly.
Time Warner, Inc. (www.timewarner.com) lives at the center of this arena. It is
not an environment for the timid, and Time Warner’s philosophy is anything
Scan Study Objectives ■
Read Feature Story ■
Read Preview ■
Read text and answer
p. 573 ■ p. 578 ■ p. 581 ■ p. 584 ■
Work Comprehensive p. 587 ■
Review Summary of Study Objectives ■
Answer Self-Study Questions ■
Complete Assignments ■
The Navigator✓
Do it!
Do it!
JWCL165_c12_568-611.qxd 8/12/09 8:29 AM Page 568
569
but that. It might be character-
ized as, “If we can’t beat you,
we will buy you.” Its mantra is
“invest, invest, invest.” A list of
Time Warner’s holdings gives
an idea of its reach. Magazines:
People, Time, Life, Sports Illus-
trated, and Fortune. Book pub-
lishers: Time-Life Books, Book-
of-the-Month Club, Little, Brown & Co, and Sunset Books. Television and
movies: Warner Bros. (“ER,” “Without a Trace,” the WB Network), HBO, and
movies like Harry Potter and the Goblet of Fire, and Batman Begins. Broad-
casting: TNT, CNN news, and Turner’s library of thousands of classic movies.
Internet: America Online and AOL Anywhere. Time Warner owns more infor-
mation and entertainment copyrights and brands than any other company in
the world.
The merger of America Online (AOL) with Time Warner, one of the biggest
mergers ever, was originally perceived by many as the gateway to the
future. In actuality, it was a financial disaster. It is largely responsible for
much of the decline in Time Warner’s stock price, from a high of $95.80 to
a recent level of $14.07. Ted Turner, who was at one time Time Warner’s
largest shareholder, lost billions of dollars on the deal and eventually sold
most of his shares.
The Navigator✓
Inside Chapter 12…
• Ho.
We have reason to believe that the SEC already has Qihoo on its radar. Given the information presented in this report, along with other issues that we have omitted, we believe that Qihoo will be delisted from the NYSE and management charged with securities fraud.
If you have watched the stock market for long period of time, you realize that it can be very unpredictable. One day bubbles flourish, things could get any better and then the next day it seem like the sky is falling.
Snam 2023-27 Industrial Plan - Financial Presentation
Thought for the_week_-_273
1. This commentary is not intended as investment advice or an investment recommendation. It is solely the opinion or our investment managers
at the time of writing. Nothing in the commentary should be construed as a solicitation to buy or sell securities. Past performance is no
indication of future performance. Liquid securities, such as those held within DIAS portfolios, can fall in value. Global Financial Private
Capital is an SEC Registered Investment Adviser. All charts courtesy of Bloomberg.
Thought for the Week (273):
Tweeter vs. Twitter
Synopsis
Tweeter Home Entertainment saw its stock price surge last Friday as demand for the stock of this bankrupt company increased seven-fold.
Twitter’s initial public offering (IPO) is the most anticipated IPO of 2013, and last Thursday they filed the necessary paperwork to begin the process of selling their shares to the public.
IPOs are exciting, and the opportunity to get on the ground floor in the next Google is very appealing to any investor, however the risk of an IPO is too high for DIAS portfolios.
Tweeter Home Entertainment
Tweeter Home Entertainment is a defunct Massachusetts-based electronics retailer that filed for bankruptcy in 2008 and shut its stores later that year. Despite being out of business, Tweeter’s stock surged on October 2, as more than 14.3 million shares (still less than $1 million in total value) were traded. The chart below shows the frenzy of activity last week in Tweeter’s stock.
How could any stock for a company in bankruptcy for the last five years with stores closed see so much activity in their stock price? To answer this question, let’s rewind the clock back 24 hours to the day where one of the most hotly anticipated events of the year finally happened.
On October 1, Twitter made its initial public offering (IPO) filing public, which is by far the most anxiously awaited IPO of 2013. The excitement from the messaging service selling shares to the public has created media frenzy as investors await the opportunity to buy shares in the next hot internet IPO.
Well Twitter announced in their S1, a document filed with the Securities and Exchange Commission (SEC), that their stock ticker will be “TWTR”. At that that time, Tweeter’s ticker was “TWTRQ” (the “Q”
2. This commentary is not intended as investment advice or an investment recommendation. It is solely the opinion or our investment managers
at the time of writing. Nothing in the commentary should be construed as a solicitation to buy or sell securities. Past performance is no
indication of future performance. Liquid securities, such as those held within DIAS portfolios, can fall in value. Global Financial Private
Capital is an SEC Registered Investment Adviser. All charts courtesy of Bloomberg.
designates that the company is in bankruptcy), and traders got confused and thought that Twitter had already started to sell shares one day after filing with the SEC. By the time the financial industry’s regulatory arm, FINRA, halted trading, the shares were up nearly 700%!
The confusion was lifted on Tuesday this week when Tweeter resumed trading under the symbol “THEGQ”. One lesson to be learned here is that markets are often irrational for short periods of time.
Caveat Emptor
However, a more important lesson to be learned is that IPOs are extremely risky and particularly those that receive media attention. In fact, our Investment Committee has a belief that the more hype surrounding an IPO, the more risk one presents investors.
The actions surrounding Tweeter’s stock last week is a prime example. Granted the number of investors who actually traded Tweeter’s stock was relatively small, the activity in the stock was truly astonishing for three key reasons:
1. Timing Was Way Off: Typically we don’t see shares actually sold to the public for three weeks after filing the S1, as the company conducts a road show to advertise to potential investors.
2. The Price Wasn’t Right: The share price is still unknown which indicates that market participants were willing to buy with no regard to valuation.
3. It Wasn’t Even the Same Symbol: The stock symbols did not even match up exactly, but market participants still traded feverishly in a stock priced less than $0.10, which is irrationally low for a newly released IPO.
We strongly urge investors to understand the risks of any IPO because for every success story like Google or Chipotle, there’s a botched IPO like Facebook or Groupon. Often times these stocks trade highly irrationally for the first few weeks/months, and an investor getting in early must be willing to endure the volatility caused by forces like insider selling, short-term profit taking, etc.
The bottom line is that although IPOs sound exciting and most investors would love to brag about how they got in early on the next Google, we feel that they represent too much risk in our DIAS portfolios and steer clear until the dust settles and fundamentals begin to drive the stock.