Tag: equity analysis

Too much runway, and you may never take off. Here’s the write-up I saw in the Next Draft newsletter (hey there, Dave!) that pointed me to a story about Slack’s then-recent venture financing: Give me some slack … equity. The...

Dear NY Times, Please stop writing about corporate finance. Nobody who worked on this article appears to know anything about securities laws, corporate finance, reasons companies go public, or how to read past issues of this paper. Securities laws: Facebook...

Answer: it becomes regular useless information, arbitraged away by the market. (Unless you don’t believe in the efficient market hypothesis, in which case you’re reading the wrong blog! The only way to live in between those two things is to...

A colleague recently asked us about finance and money tips for small businesses. Since we spend a huge amount of time analyzing very large companies from the perspective of the equity markets, it might seem that the lessons we teach...

The NYT displayed some confusion about finance realities in this older column about net operating losses, a perennial “favorite” topic of ours. We’ve done some complex planning (aka invent new deal structures) for a corporation and its shareholders that held...

This finance link post from the team at 37Signals briefly compares Apple’s share of the mobile phone market (apparently by volume) with its share of the profits in that market: Market share is irrelevant if you can’t turn it into...

Someone recently asked about the cost for a valuation. As with many questions we hear, this one also has to be answered with a question: why do you need a valuation? And that, in turn, is really better framed as...

This WSJ article on identifying and analyzing mutual funds is interesting because of what’s not there. The article describes a new study by Fama and French, the prolific finance authors who continue to study the efficient market hypothesis and the...

Just recently, we published another post regarding stock buybacks and how the math is the math: you can change your risk profile, but in any case, at some point the usage of cash to buy stock makes sense as a...

[NB: this post was started quite some time ago, and it recently re-surfaced in our ‘drafts’ folder. Sorry for the delay, but we believe that the underlying issues are still interesting and how companies use cash is more, not less,...

Larry Ribstein, who’s a law professor and pretty focused on corporate governance generally, just described the bailout in some pretty straightforward terms. WARNING: we are not typically focused on macroeconomics except in scenario planning. However, we see strong tendrils of...

Geoffrey Colvin, the star of our last post, is once again delivering basic finance concepts to the masses in his all-too-short article on the AT&T- BellSouth merger. Believe us, basic is the level that many corporate finance & management teams...

A recent Fortune article by Geoffrey Colvin discusses the relatively low percentage of debt in the capital structure of a large percentage of US public companies (he cites that “25% of the Russell 3000 have no debt or negative debt”)....