Teaching note for product W41982.

With the issuance of Muddy Waters’ short report on Fairfax Financial Holdings Ltd. (Fairfax), Fairfax faced intensive scrutiny but continued to support its financial reporting decisions. The case investigates three accusations by Muddy Waters against Fairfax. The goal is to assess the merit of these claims against generally accepted accounting principles (GAAP). Along with the analysis surrounding the basis of accounting, this case gives students .....more

A business school student was preparing for a stock pitch competition. He had developed an interest in stock held by investor Warren Buffet in Liberty Media Corp.’s Series C Liberty Formula One common shares. His research revealed that a substantial part of Formula One’s valuation was accounted for as intangible assets and comprised, in particular, what was known as the 100-year agreement with the Federation Internationale de l’Automobile, the sport’s .....more

Teaching note for product W31821.

An investor in NIO Inc. (NIO), an electric vehicle (EV) manufacturer based in China, contemplated the role NIO played in the EV market in China and the world, as well as the differences between NIO’s business model and the business models of other EV makers. Specifically, NIO had built and operated a network of battery-swapping stations and often included complimentary swaps with vehicle purchases. Also, NIO was able to sell a car without a battery .....more

Teaching note for product W27676.

Jane Zhou, an equity analyst at a large asset management firm, was preparing a report on EOS Imaging (EOS), a French medical device company that her firm had invested in. EOS’s drastic fall in First Quarter (Q1) 2019 revenue caught Zhou’s attention, as the company had maintained a continuous growth record up until 2018. In Q1 2019, EOS only achieved 1 per cent of its Q1 2019 equipment sales revenue. Also, during Q1, EOS made a significant change to .....more

Teaching note for product #

Teaching note for product 9B21B001.

Delta 9 Cannabis Inc. produced and sold recreational cannabis in Canada—a market that after legalization was characterized by volatility in supply, demand, and regulations. Nonetheless, Delta 9 grew rapidly, and March 31, 2020, marked Delta 9’s best-ever fiscal quarter. However, Delta 9’s share prices had deflated over the previous year and the economy had recently been upended by the COVID-19 pandemic. Thus, there was considerable uncertainty regarding .....more