Practical analysis for investment professionals

Case Studies


Inditex Is Priced for Perfection

This article is meant to illustrate how, depending on the price, the stock of a great company may not be a great investment.

How Well Does the Stock Market Discount? Dell as a Case Study

How accurately does the stock market discount the value of a business based on future streams of actual net income, plus an estimate of terminal value? Dell provides a real-world example.

Dilemmas in Responsible Investment: Lessons from the Lonmin Strike

While all investors are concerned with the risk and return of investing, some are also concerned with social and environmental impact of their investments. Céline Louche discusses the dilemmas these investors face.

The Case of Empresas la Polar: Encouraging Whistleblowers Can Serve a Firm’s Interest

The largest corporate fraud in Chilean history offers a cautionary tale not only about improper accounting and misleading financial statements but also about the importance of implementing an organizational culture that encourages employees to take action when they observe unethical behavior.

Manchester United IPO: Yellow Card

Manchester United, the acclaimed soccer club of the English Premier League, is planning to sell shares to the public in an offering to be priced August 9, 2012. While its iconic brand and loyal following are probably unsurpassed in professional sports, the valuation attached to Manchester United's shares and the risk factors associated with ownership make this an investment to avoid, unless you are just looking for bragging rights at your local pub.

The Unintelligent Investment? Gauging Facebook’s IPO Through the Lens of Graham and Dodd

Investors who bought shares in the recent public offering should have first consulted the authors of Security Analysis, who wrote that the intrinsic value of a security is “that value which is justified by the facts . . . as distinct, let us say, from market quotations established by artificial manipulation or distorted by psychological excesses.”

Three Questions about the Facebook IPO

Unless you have been living under a rock, you must be aware that Facebook, the “darling” of social media, is about to go public. But before investors slake their thirst for Facebook shares, market participants should consider three questions.

The Hildebrand Case: Ethics and the Power of Perception

The recent scandal that led Swiss National Bank chairman Philipp Hildebrand to resign highlights the difference between what is legal and what is ethical. The law tells us what we “can and cannot do,” whereas ethics tells us what we “should and should not do.”