Sunday, 17 June 2012

Expansion through Mergers & Acquisition - Microsoft agree to buy Yammer

Mergers & Acquisitions is an interesting reading under Corporate Finance in CFA Level II Curriculum. Stock based offer, cash based offer, stock purchase, asset purchase, defensive measures, transaction analysis, etc. have been discussed in detail in this reading. Expansion through M&A is considered to be a risky strategy and it can trigger regulatory authorities responsible to maintain competition in the market. The following article of Bloomberg discusses one such story in which Microsoft has agreed to buy Yammer which is a social networking website founded by the former chief operating officer of Paypal, David Sacks.

Read the article: http://www.bloomberg.com/news/2012-06-15/microsoft-said-to-agree-to-acquire-yammer-for-1-2-billion.html

Friday, 8 June 2012

Facebook debuts 600 Applications at Mobile Bazaar

Climbed 3 percent to $27.10 today, Facebook offers a service called App Center with 600 applications d├ębut. The services is surely to attract users and encourage them to stay longer on the website and marketers can target them with more ease through advertisement. The share dropped 29 percent since it started trading at $38, the major reason cited for this decrease is the uncertainty about earnings of Facebook which are largely composed of advertisements and the company's inadequacy to generate advertisements through mobile interfaces which are increasing day by day. Facebook is also striving to attract software developers so that it could figure out new ways to engage users and provide them with the 'same experience' increasing engage time and no. of users. 

Thursday, 7 June 2012

Apple seeks US ban on Samsung Galaxy S3 - Telegraph

Apple trying to ban Samsung Galaxy SIII sales in US? According to Telegraph they are doing so. Why they would be doing so? Because Samsung did copied their patents or its because Samsung became the world's largest Smartphone manufacturer last quarter? The lawsuits and counter lawsuits have been filled in the past and they still are contingent. Samsung has changed its 10.1 tablet design because of Apple claims but the battle is still going on and according to Apple, Samsung has copied its two patents and that is why they are trying legally to ban Samsung Galaxy SIII sales in US.

Read the news: http://www.telegraph.co.uk/technology/apple/9317118/Apple-seeks-US-ban-on-Samsung-Galaxy-S3.html

Integrating Financial Statement Analysis

If I compare the exam with the chapter end questions and also with the detailed examples, I think the exam was much more balanced. The technicalities in the examples and chapter end questions are way deeper. Perhaps the purpose is to equip candidates with the desired level of knowledge and skills. Reading curriculum was a tedious job especially for the purpose of passing the exam but going through it like something vital and valuable in terms of knowledge and skills development certainly changes the perspective and makes it a very helpful guide equipped with latest happenings in the financial world and methods of dealing with them. Reading 27 is one such example which has some amazing application of integrating financial statement analysis. Going through this reading after the exam solely for the purpose of learning helps in several ways. 1) There is no time restriction to complete it and 2) The mind is having a converged focus but a broad spectrum to view it. The adjustments, treatments related to several financial issues, altering numbers to reflect true economic position etc. have been explained in that reading. For me it is a must which I should be doing in 2,3 days by going through that reading from a broader spectrum and apply that knowledge on several financial statements to learn & develop myself up. There are other readings as well which serve this purpose but particularly Study Session 7 is remarkable in this regard.

Wednesday, 6 June 2012

Samsung Income Statement 1Q 2012 - Comparison


Trillion Won 1Q 2012 1Q 2011 4Q 2011 Change 1Q'11 to 1Q'12 Change 4Q'11 to 1Q'12
Sales 45.27 36.99 47.30 22% -4%
COS 30.14 26.05 31.51 16% -4%
GP 15.13 10.93 15.79 38% -4%
R&D Exp 2.73 2.34 2.74 17% 0%
SG&A 6.77 5.79 8.46 17% -20%
Other Operating P/L 0.21 0.15 0.70 40% -70%
Operating Profit 5.84 2.95 5.30 98% 10%
Equity Method G/L 0.37 0.38 0.32 -3% 16%
Finance I/E 0.13 0.06 -0.14 117% -193%
EBT 6.34 3.39 5.47 87% 16%
Tax 1.30 0.60 1.47 117% -12%
NP 5.04 2.78 4.00 81% 26%

Monday, 4 June 2012

Level II Exam, 3rd June 2012

Finally after several months of 'focused' preparation, the exam went well... As you know under Standard 7A & the Candidate Pledge we aren't allowed to discuss the exam specifically but an opinion regarding general difficulty level can be given. For me the morning session was tough as compared to the evening one. Time wasn't an issue especially in the afternoon part. Ideally 18 minutes per item set are advised but a few took 20 to 25 and a few, I was able to complete in 8 to 10 minutes. As compared to Level I the experience was different in terms of burnout. It was because of the no. of questions as they were 50% less. The areas I was comfortable with enjoyed like nothing else and the areas which I found tricky, I really cursed my self while sitting there.... On the whole it was a good experience in terms of gaining immense knowledge and its application. Over next few days I will be posting about different companies specially applying Reading 27, Integrating Financial Statement Analysis on several companies to keep myself into the stuff.

Am I really scared of failing the exam?
Well Yes! It's a part of life.

Does that mean my all efforts will go in vain?
Certainly Not because of the knowledge & skills I've developed in this one year have paid off!

Will I appear again if I fail?
Obviously!

What are the chances of passing the exam?
Morning Session... 50/50, Evening Session 70/30

Am I excited about the result?
Hell Yea!

Good Luck to all the candidates (including myself) and best wishes for the result..

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