Facebook - Some Extracts from S1 Filing

It was an anticipated event. A huge number of people would be digging into Facebook to consider it a better investment prospect. Below are some extracts taken from the S1 Filing. 

Months	Revenues	Cost of Revenue	Total Cost & Expenses
Mar-10	345	100	183
Jun-10	431	111	213
Sep-10	467	131	251
Dec-10	731	150	294
Mar-11	731	167	343
Jun-11	895	210	488
Sep-11	954	236	540
Dec-11	1,131	247	583
*All amounts in Million Dollars

Solving Exams based on Psychometric Testing (Last Part)

The test itself

·                    Listen to and read the instructions carefully.  If you are unclear about something, ask. 

·                    You will be given time to read the instructions before the timed part of the test begins. 

·                    Try not to pay attention to other people taking the test around you.  Remain focused on the test.

·                    If you are stuck on a question, do not waste time on it - go on to the next one and come back to it at the end if you have time.

·                    The best approach with multiple-choice questions is to try and work out the answer yourself, and then see if your answer is one of the given options.  If your answer is not one of the given options, check your reasoning or calculations.  If you are absolutely stuck, make an educated guess rather than picking an answer randomly; eliminate answers you know to be wrong and then go with your best guess from the remaining options.

·                    Only change your answer if you are sure you have made a mistake.  If you are unsure, it is probably best to stick with your first answer.

Citigroup Income Statement (Graph)

The trend of revenues is declining in quarters of 2010 and 2011 for Citigroup. Th operating expenses are more or less consistent whereas Income from continuing operations are exhibiting a kind of similar trend as of revenues.

Citigroup Income Statement

Housing Conundrum (Part 4)

Healthcare Sector Review: Giant Step for MannKind, Threshold and Merck Agreement

These healthcare numbers are driving me crazy. Every day there is a new development and the way it is reflected in the stock price... is remarkable. A latest development which happened today reported by Stella Mariz of Wall Street Cheat Sheet can be found on the URL below.

Read the article: http://wallstcheatsheet.com/stocks/healthcare-sector-review-giant-step-for-mannkind-threshold-and-merck-agreement.html/

Healthcare Sector - Statistics

Description	Market Cap.	P/E	ROE %	Div. Yield %	Long-Term Debt to Equity	Price to BV	NP Margin  %
Sector: Healthcare	51058.4B	20.26	16	3.74	69.99	17.99	16
Industries
Biotechnology	2509.2B	57.8	8.7	2.07	38.21	7.38	11.9
Diagnostic Substances	12.0B	179.6	2.5	3.54	36.57	4.99	2.7
Drug Delivery	69.4B	0	0	0.36	86.31	-9.05	-1.2
Drug Manufacturers - Major	45511.9B	17.2	15.8	4.02	72.17	19.89	16.7
Drug Manufacturers - Other	191.8B	28.9	13.4	1	253.56	17.85	14.1
Drug Related Products	22.2B	36.5	14.9	0.77	58	13.95	9.5
Drugs - Generic	853.3B	50.1	7.6	0.13	50.97	-22	6
Health Care Plans	180.1B	11.8	17.2	1.22	61.83	10.08	4.5
Home Health Care	4.9B	24.1	12	2.22	71.65	-11.1	5.7
Hospitals	318.7B	10	144	0.24	75.2	-2.49	4.3
Long-Term Care Facilities	9.3B	63.7	2.4	0.88	206.77	4.05	0.9
Medical Appliances & Equipment	898.4B	16.3	14.1	1.61	32.45	6.06	13.7
Medical Instruments & Supplies	322.2B	24.1	13.5	1.63	42.34	16.88	13.6
Medical Laboratories & Research	131.9B	202.8	1.5	0.81	78.05	-9.45	0.8
Medical Practitioners	3.3B	7.6	12.7	6.04	45.08	5.59	4.3
Specialized Health Services	19.8B	17.3	17.6	1.94	121.04	-10	9.4

The data is a 2 days older but the proportion of Biotechnology Industry in the Healthcare sector in US is 2nd after Major drug manufacturers. P/E of Medical Laboratories & Research is ten times more than the sector but the net profit margin is only 0.8%. Apparently the reasons are not coming into my mind but I have found the statistics interesting especially when looked together. 

Solving Exams based on Psychometric Testing (Part B)

On the day before the test

·                    Check the time and place of the test, and make sure of your travel arrangements.

·                    Review anything you feel you need to, but don’t overdo it; set yourself a certain amount of time to do this and then allow yourself an evening doing something completely different.

·                    Try to build a positive mental attitude; think positively about your abilities and try to stop negative thoughts.  Distract yourself by doing something that you know you will enjoy e.g. read a good book, watch a film, do something that makes you feel good about yourself.

·                    Eat a good meal and get a good night’s sleep. 

On the morning of the test

·                    Breakfast is important but avoid ‘heavy’ foods which can make you feel tired during the test.  Some people consider unsugared foods, such as cereal and bananas, good ‘brain food’.

·                    Collect everything you need to take into the test. 

·                    Try to remain calm and to maintain a positive mental attitude. 

·                    Leave yourself plenty of time to get ready and get to the test centre so that you do not panic.

Available for Sale Investments

These are debt and equity securities which the investor is willing to sell but not actively planning to sell.
Accounting Treatment:
· Available for sale securities are initially measured at Fair value + Transaction Costs
· At each subsequent reporting date, these investments are re-measured and reported at fair value excluding transaction costs.
· Any unrealized gains or losses arising from changes in fair value are reported in Equity as Other Comprehensive Income (U.S. GAAP) and directly to Equity (IFRS).
· The amount reported in Other Comprehensive Income is net of taxes.
· If the security is sold, the cumulative gains or losses previously recognized in Other Comprehensive Income is reclassified (i.e. removed from other Comprehensive Income) and reported on the Income Statement.
· Interest received on debt securities and dividends received on equity securities are reported in Income Statement.


Accounting Treatment of Available for Sale Debt Securities (in the case of foreign exchange gains / losses):
IFRS: Total change in Fair value of an available for sale debt security is divided into two components:
a) Any portion related to Foreign Exchange gains & losses is recognized on the Income Statement.
b) The remaining portion is recognized in Other Comprehensive Income.

U.S. GAAP: Total change in fair value of available for sale debt securities (including foreign exchange gains & losses) is included in Other Comprehensive Income.

Accounting Treatment of Available for Sale Equity Securities:
Under both IFRS and U.S. GAAP, total change in fair value of available for sale equity securities (including foreign exchange gains & losses) is included in Other Comprehensive Income.

Housing Price Conundrum (Part 3)