David Silver

Research analyst, value, growth, event-driven
David Silver
Research analyst, value, growth, event-driven
Contributor since: 2012
Alcoa (NYSE:AA) is one of the main suppliers of the aluminum alloy, yes.
I agree with Redarrow about KO's management team. They had the chance back in 2012 (I actually wrote an article about KO denying it at the time too http://seekingalpha.co...). The cash flow is a great point to make, but then again, KO has never had a problem with cash flow, its the volumes and pricing power that are the issue right now. This move doesn't solve either of those problems.
Thanks for pointing out the mistake!
I agree with your R&D argument, I was making the point that sales have been slow and so far it is not paying off for the Company. Hence the shutdown in October because of higher inventories.
With respect to the cash situation. Looking at the Company's 10-Q, the line item "cash and cash equivalents" is clearly outlined on the top line of the balance sheet. And the number after all that blue space.... $22,184. When you take that the numbers are millions. So $22.2 billion. Sorry I dropped the $0.2 billion off my number
I dont think that every major automaker has turned their business around. Look at GM... GM is in loads of trouble despite going through bankruptcy. Ford has more pricing power than just about any automaker.
Yes, auto sales are on the mends, but profitability is what matters. Ford actually has a problem about not enough vehicles out there, definitely not a problem with GM as they are shutting down production for the Volt in October. Ford just added 1,200 workers to a plant in the US building Fusions (most of the production had previously been done in Mexico). I still have faith, but realize that the troubles in Europe are acting like an anchor on just about every company.
I think that Mulally's biggest accomplishment is what he did to the management team. There was such a bureaucracy and alliances that little could get done (a little like Washington right now) but he thinned out the ranks and got everyone working towards one goal.
No one on this site claims to be an expert. I wrote an article, followed what the research I did was telling me. But now you have commented five times on the same article demanding an apology? Did I cost you any money? No, you said you bought the stock and got your shares, so congratulations.
The information I went off of was the same information that Borderite posted in one of his comments. Also, how would you like me to correct it? The event has passed, there is nothing that can be done about it now.
No the date of record is July 27. If you were a shareholder as of that date, you get the extra share... If you bought it after that, you do not receive an extra share
GM has a long ways to go before that happens. The Volt needs to become more readily available and the price needs to come down.
GM made a comment during its conference call that it was the leader in subprime auto loans... is that really where GM wants to stake their future? I should hope not
I agree Susan, FB will not have a meaningful impact at all on the market beyond being a big name that many people want to see fail.
Thanks!
That is a great point! Ford has extremely strong pricing power in the industry and GM keeps talking about being OK with giving up market share to have stronger pricing power, but their incentives are so volatile.
They could have waited a year, but then they would have had a problem with antitrust laws
I agree with you completely! this could be a huge business and a huge money making machine, but the valuation is just too rich right now...
You make some solid points, but for whatever reason, stocks seem to run into a split. It changes nothing on the fundamentals of a company, the only thing i could think of is that it makes the stock "more affordable" for retail investors. Imagine if AAPL split, how many people would jump at the chance to own it?
I long KO
I completely agree with you Tony. As a shareholder, I would love for him to stay on as CEO. But he has only said he will be there for 2012, and it is already the end of April. If they are looking for someone new, they should start the process now, but I do hope that Mr. Mulally stays on for at least another year (through 2013).
Thanks for the comment... As a shareholder, I hope it is not the end because other candidates within the company aren't so inspiring at the moment. However, Mulally has accomplished everything he set out to do. Seems to me like it would be a good time to walk away and "spend more time with the family"
Good article! I agree with the first commenter, however, that GM will have limited upside as long as the government still owns such a huge stake in the company.
I didn't block you, and well done on your options purchase. Are you selling tomorrow? or are you going to hold the options until they expire?
Yeah, who would have that with aluminum prices down 9% the Company sees record revenues. Still trying to figure out where the extra demand came from (air and auto doesn't account for the huge difference). Thanks for the comment though!
Don't have any shorts actually, but my thesis that they are not a bellwether still holds true.
I agree with you completely that it hurts them reporting first, but the street would like very negatively at the company if they changed it up now.
Yes, they have billion dollar contracts but it's about growth. I was on tv when the stock was at $18 and said I would avoid the stock. I didn't think it would get this low, but I don't like their model. They have an oversupply worldwide and now lower demand from the US, Europe, and China doesn't help at all.
More and more people are giving up, and all those plans to help make it easier for people aren't fixing the problem!
Just thinking about the FICA score for the US is a scary proposition...
Good catch... Thanks for that
Good article! Thanks
I mean artificial because some companies (think HD over the past few years) have improved earnings and share price as a result of share buybacks... I prefer improving the business and using that cash elsewhere.
You are right Dividend Fool... There are many new laws that are coming into new markets these days, one of the most dramatic has been the ban in Spain. That being said, PM still has a great market share, and while volumes may falter slightly, you will see strong pricing power and improving share. The smoking bans haven't reached many Asian markets yet, so that is another positive for PM. And i do expect another dividend increase over the next six months in addition to the nearly $4 billion of share repurchases.
I will give credit to the Cruise and I will say that GM has done well in the US, however, everywhere else around the world has been a problem. I see that you are very long GM... when did you get into the stock?
It would be smart for Greece to leave the Euro, then again, I was never such a big fan of the Euro to begin with. There are too many countries in the Euro right now... It got too big that you needed to use the Euro, but most of the countries in it now (think Greece) bring nothing to the table.
Definitely another example of kicking the can down the road. The plan, although it was approved, really doesn't fix the problem, it just takes some of the sting out. And it only lessens the probability of complete chaos. The Greek people have a lot of pain ahead of them if they want to stay in the Euro Zone.