Stocks and News

Stocks and News

Presently we are investigating the impact information has on the economy, particularly the value of a company’s stock value. Last week students had to trade stock on a number of made up companies based on fabricated new headlines. They then found news headlines from the newspaper or internet sites that they believe would affect the value of a certain company and had to write a paragraph explaining their logic. Two news items were especially interesting. Wayne Rooney’s broke his foot in the game where he debuted Nikes “revolutionary” new football boot. A few football aficionados voiced what many people were perhaps speculating – that the boot had something to do with the foot fracture. Rooney denied there was any connection but Rooney’s manager Sir Alex Ferguson requested that Nike pursue a full investigation into the possibility that the boot was at fault. Rooney’s out of the world cup and Nike’s most high profile player is out of the spotlight. A day or two after the news hit the stands; Adidas eclipsed Nike for the number one spot in their very competitive business. Coincident? Perhaps. One also must take into consideration that the World Cup is in Germany and starts in less than a month. Adidas is a German company and is a huge sponsor of the Cup.

Wayne and His New Nike Boots

Rooney and His New Nike Boots

Rooney Injured in His New Nike Boots

Walt Disney announced a divorce from McDonald’s. The scapegoating of McDonalds as the cause of all that’s unhealthy in the US rather than blaming the people who unscrupulously woof down mounds of unhealthy food is taking its toll on the fast food monster. It will be interesting to see how this one plays out. Curious side note; Ray Kroc, founder of McDonalds and Walt Disney actually served together in WWII. After the war Disney went home and began building his empire and Kroc did likewise. At an early stage in their empire building Kroc approached Walt and asked if he was interested in making some sort of deal in which McDonalds would be a primary server of food at the Disney establishments. Walt declined. Somewhere down the line, obviously, Disney Corp changed their mind but now has gone back on the deal. Maybe Walt had used a little Disney magic and saw the future of American fast-food and didn’t like what he saw.

McDisney No More

McDisney No More

The response from McDisney to the allegations that Disney broke relations with McDonalds due to the latters poor health record can be read here.



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