Week Nine DB
Understanding finance begins by reading reputable articles in newspapers/magazines such as the Wall Street Journal, New York Times, Forbes, Fortune, US News and World Report, and other web based resources.
POST #1 Find an article that interests you and write 3 paragraphs. Your format should be:
INTRODUCTION: Briefly introduce the article (author, date) and the major financial topic it attempts to address (bankruptcy, merger, financial crisis, financial literacy, a specific company).
MAJOR TAKEAWAYS: Discuss the 3-5 points the article made about the financial topic.
CONCLUSION: What did you learn about finance and did the article address the question it posed?
Include APA CITATION at the end of the post.
POST #2 AT LEAST ONE MORE POST: Respond to another person’s post with an article or video reinforcing that post or extending the conversation. For example, you could say “Hi Cathy, I really enjoyed your post on Apple reaching $1 trillion this past week. Thank you for your research. I recently reviewed a short article which walks through the history of Apple’s financial success.Statista.com (Links to an external site.)Links to an external site. reports a wonderful chart on the history of Apple and its successes on the way to $1 trillion. Some analysts actually believe that when Petrochina launched its IPO in 2007, it surpassed the $1 trillion mark then. Thanks! Anne
Citation: Imbert, F. (2018, August 3). The first company to reach $1 trillion in market value got crushed. Retrieved from https://www.msn.com/en-us/money/topstocks/the-firs… (Links to an external site.)Links to an external site..
Find article Try to find something within the last 3 months or so. and Respond to another person’s post
respond to ( The article that I picked for this week is titled What’s Next for Mattress Firm After Bankruptcy and Putting 700 Stores to Sleep? This article was published on October 5, 2018 by Warren Shoulberg on Forbes’ website. This article is discussing the giant mattress retailer that is around every corner. As we have noticed, the company is struggling and is beginning to close down some of its stores. The have filed for chapter 11 bankruptcy and will need quite a lot more effort than just closing down some stores to get back to being financially healthy and stable.
The article introduced some very interesting ideas that address the question of why exactly is the company struggling. The first takeaway is that the company has 3,500 stores and will be closing 700 stores. However, the author states that even the 2,800 retail locations will be a lot to handle and he predicts this number to continue to rise and more stores will end up being closed. The second takeaway that addresses their struggling is regarding their parent company: Steinhoff International. They paid $3.8 billion for it in 2016 and soon after there were accounting irregularities discovered and are still undergoing investigation. Thus, a parent company with bad books has a very negative influence on Mattress Firm itself. The third major takeaway that also addresses their struggling is regarding its suppliers. One of its biggest suppliers was Tempur-Pedic; however, they had a conflict that resulted in Mattress Firm to discontinue the selling of their products. As a result, the company’s sales dropped 11.2% last year, and have been dropping ever since. Thus, there is internal conflict, as well as, external that are both affecting the company negatively an bringing about their filing for bankruptcy.
In this article, I learned that a company can file for bankruptcy; however, there could still be a chance for the company to recover with the execution of the right strategy and the correct decisions. In addition, I learned both from class and from such real example how complicated bankruptcy is, and that it takes a long time for the whole process to conclude. Overall, I see this article as informative and it definitely answered the question of why Mattress Firm is suffering and in addition gave a prediction to the closing down of their stores. I am eager to see how it all works out for the company and will they be able to recover somewhat.
Citation: Shoulberg, W. (2018, October 05). What’s Next For Mattress Firm After Bankruptcy And Putting 700 Stores To Sleep? Retrieved October 21, 2018, from https://www.forbes.com/sites/warrenshoulberg/2018/10/05/whats-next-for-mattress-firm-after-bankruptcy-and-putting-700-stores-to-sleep/#1d5ae34c5328Links to an external site.