Monthly Archives: September 2012

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ September 14, 2012

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $3.93 (0.77% UP)

Carver Bank New York (CARV) $4.00 (UNCH)

Radio One (ROIA) $0.86 (4.24% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  147.31 (0.53% UP)

Botswana Stock Exchange (BSE)  7 361.27 (0.16% UP)

Ghana Stock Exchange (GSE)  1 036.39 (N/A)

Nairobi Stock Exchange (NSE)  86.61 (N/A)

Johannesburg Stock Exchange (JSE) 36 550.08 (1.85 UP)

International Stock Exchanges

New York Stock Exchange (NYSE) 8 458.87 (0.62% UP)

London Stock Exchange (LSE)  3 088.57 (1.72% UP)

Tokyo Stock Exchange (TOPIX)  756.88 (1.70% UP)

Commodities

Gold 1 772.70 (0.03% UP)

Oil 99.00 (0.70% UP)

*All quotes reported as of 6:00 PM Eastern Time Zone

The HBCU Endowment Feature – Prairie View A&M University

School Name: Prairie View A&M University

Median Cost of Attendance: $11 505

Undergraduate Population: 6 931

Endowment Needed: $1 594 823 040

Analysis: Prairie View A&M University needs approximately $1.5 billion for all of its students to attend debt free annually. Prairie View A&M University is located in Texas which is one of three states that have HBCUs underneath “systems” with Maryland and Florida being the other two. Prairie View A&M is underneath the Texas A&M University system which itself controls the tenth largest endowment in America at almost $7 billion. The upside of being in a system of a larger university is the financial stability provided but in exchange for essentially a complete loss of sovereignty in key strategic areas. As such it makes it complicated to know what their exact endowment is within the university since oft times money is pooled together and to complicate it even more the Texas A&M University system potentially charges its satellite schools a management fee to hold their money allowing them to skim off any donation that comes into the university. U.S. News reports Prairie View A&M’s endowment to be in the neighborhood of approximately $48 million which is 0.68% of Texas A&M’s endowment for perspective. Historically, the relationship  between Prairie View A&M and Texas A&M has always been tumultuous and when money is involved it only complicates it even further. It has taken Prairie View A&M University alumni over 133 years to establish an independent foundation to manage the assets of its alumni. A foundation whose purpose and strategy still seem very unclear if one visits their website or talks to any alumni. The future of Prairie View A&M’s endowment which could use some clarity will ultimately rest in decisions about that endowment being made in Prairie View, Texas or continuing to be made in College Station, Texas. It is hard to imagine your competition having your best interest at heart.

As always it should be noted that endowments provide a myriad of subsidies to the university for everything from scholarship, faculty & administration salaries, research, and much more.

HBCU Money Business Book Feature – The March of Folly: From Troy to Vietnam

In The March of Folly, two-time Pulitzer Prize winning historian Barbara Tuchman tackles the pervasive presence of folly in governments through the ages. Defining folly as the pursuit by governments of policies contrary to their own interests, despite the availability of feasible alternatives, Tuchman details four decisive turning points in history that illustrate the very heights of folly in government: the Trojan War, the breakup of the Holy See provoked by the Renaissance popes, the loss of the American colonies by Britain’s George III, and the United States’ persistent folly in Vietnam. The March of Folly brings the people, places, and events of history magnificently alive for today’s reader.

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ September 7, 2012

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $3.70 (UNCH)

Carver Bank New York (CARV) $3.65 (7.12% DN)

Radio One (ROIA) $0.86 (UNCH)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  147.36 (0.55% UP)

Botswana Stock Exchange (BSE)  7 321.93 (0.03% UP)

Ghana Stock Exchange (GSE)  1 035.97 (N/A)

Nairobi Stock Exchange (NSE)  85.90 (N/A)

Johannesburg Stock Exchange (JSE) 35 744.25 (N/A)

International Stock Exchanges

New York Stock Exchange (NYSE) 8 234.51 (0.91% UP)

London Stock Exchange (LSE)  3 023.99 (0.43% UP)

Tokyo Stock Exchange (TOPIX)  735.17 (2.25% UP)

Commodities

Gold 1 74972.50 (2.05% UP)

Oil 96.42 (0.93% UP)

*All quotes reported as of 8:00 PM Eastern Time Zone

The HBCU Endowment Feature – Hampton University

School Name: Hampton University

Median Cost of Attendance: $29 074

Undergraduate Population: 4 361

Endowment Needed: $2 535 834 240

Analysis: The university currently needs $2.5 billion for all of its students to attend debt free annually. Hampton’s endowment is the 3rd largest among HBCUs, 244th in the nation, and one of only five to grace the rare air of the HBCU $100 million endowment club. Hampton’s leadership has maintained an aggressive approach to its endowment which has allowed an immense growth over the years and puts it in prime position to challenge Howard and Spelman in the race to become the first billion dollar HBCU endowment. Last year the endowment underperformed with a 12.8% return against the national average of 17.8% and median of 20.0% but expect to see this group come back in a strong way. Expected economic headwinds withstanding in 2013 the university will continue to be an endowment leader among HBCUs because of its forward thinking in deploying capital.

As always it should be noted that endowments provide a myriad of subsidies to the university for everything from scholarship, faculty & administration salaries, research, and much more.