Financial management principles and practices

¶ … Nuemann, Jeannette. (2012). Boost for foreclosure market: Real-estate firm gets Citigroup to buy properties to turn into rentals. Walls Street Journal. Web. Retrieved September 15, 2012 from http://online.wsj.com/article/SB10000872396390443720204578000570020723746.html?mod=WSJ_hpp_LEFTTopStories

The American economy is just now starting to regain its footing after the major economic recession that began after the 2007 housing crisis. When the housing market crashed, it sent a ripple through the rest of the international economy. Now, a Waypoint Real Estate Group, LLC. Seems to have convinced one of the major banking institutions to take advantage of other's financial dismay. The company received $65 million to secure homes in foreclosure in order to make a revenue renting properties in the midst of this terrible housing crisis. This could have a major negative affect immediately on stock prices, as investors show their distaste for profiting on others' misfortune, however the deal will undoubtedly add much needed revenue to Citibank. There are always risks in purchasing and flipping properties, yet there is a very lucrative market in it. The article presents haunting images of houses in poor condition to show not only the emotional charge but also the investment opportunity.

Article 2:

Worthen, Ben. (2012). HP tries on a sleeker look: Taking a cue from Apple, CEO Whitman makes better design central to turnaround. Wall Street Journal. Web. Retrieved September 16, 2012 from http://online.wsj.com/article/SB10000872396390443589304577637652500054674.html?mod=WSJ_hp_LEFTWhatsNewsCollection

This article reviews a major decision by HP to take design more seriously in order to better compete with major innovators like Apple. Currently, the company has lacked in sleek design, which has helped cause a major stall in sales. There is a major risk in dumping needed revenue into design projects that might not take in the market, which could negatively affect stock value. However, the organization is incredibly optimistic and believes the rewards of greater sales are worth the risk. The company is already in risk of loosing the top spot for computer sales in volume. Taking this risk right around the holidays may help boost sales and overall stock value. One would think that to compliment an article about taking risks in design, the article would have its own sleek image to it. Yet, there are not powerful visuals to augment the excitement over design that is dominating HP.

Article 3:

Estrel, Mike. (2012). Heineken gives its bottle a makeover. Wall Street Journal. Web. Retrieved September 16, 2012 from http://online.wsj.com/article/SB10000872396390443720204578000200505512938.html

One of the most infamous beer companies is about to redesign its bottle. Dutch company Heineken has reported its plans to elongate its famous green long neck bottle in an attempt to curb rapidly dropping sales numbers. There are definitely risks, including operating expenses for a bottle design that might be rejected by the market. This would only further decrease stock value. However, with so many competitors showing positive results from their bottle remakes, like Bud Light Platinum's sleek bright blue bottle design, there are greater chances of rewards. The company had seen sagging sales in the last few business quarter, and so this is a bid to once again take the place of the top importer of foreign beer into the United States. The article features a stunning picture of the famous bottles on the factory line, which is both visually appealing and invoking a sense of nostalgia for a bottle design that had satisfied Americans for generations.

Article 4:

Sreeharsha, Vinod. (2012). Carlyle buys controlling stake in Brazilian furniture retailer. New York Times. Web. Retrieved September 16, 2012 from http://dealbook.nytimes.com/2012/09/13/carlyle-buys-controlling-stake-in-brazilian-furniture-retailer/

The New York Times reported on Sunday that the Carlyle Group bought 60% of Tok & Stok, a furniture company located in Brazil. This is news worthy because it is interesting to see an investment firm begin to move into a more consumer retail market.

Financial data shows that the company saw a slight drop in stock prices, although that was quickly reversed with an increase to $37 per stock that has held steady since September 13, 2012. The overall long-term risk is the loss of the reported $347 million that was used to fund the purchase. Still, the deal shows a possibility for the Carlyle Group to extend its dominance into more than just the financial investment marketplace. Unfortunately, there are no visuals to augment this story, which makes it seem less powerful compared to some of the other articles highlighted on the site.