Comments on Marie Albin's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/marie-albin/articles http://seekingalpha.com/article/104656-what-a-democrat-in-the-white-house-means-to-your-wallet?source=feed#comment-300642 300642 Sat, 08 Nov 2008 08:16:42 -0500
If you think a two party system works, I suggest you have failed to detect the true nature of "partners in crime."

]]> http://seekingalpha.com/article/104656-what-a-democrat-in-the-white-house-means-to-your-wallet?source=feed#comment-299921 299921 Fri, 07 Nov 2008 07:35:52 -0500 http://seekingalpha.com/article/104656-what-a-democrat-in-the-white-house-means-to-your-wallet?source=feed#comment-299894 299894 Fri, 07 Nov 2008 04:05:29 -0500
there is little commercial credit, we have killed off the consumer by wiping out his home equity and retirement, and we have been told by the economic bozo's that they don't know what will happen next.]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-277705 277705 Thu, 09 Oct 2008 10:33:46 -0400
1. The have a large financial business that is hurting as are the rest of the financials. I just read Charles Morris's book, 'The Trillion Dollar Meltdown' and discovered that GE was a pioneer in creating Asset Backed Securities to finance numerous things the company needs. According to Charles this lowers apparent debt using special purpose entities. An ABS is a type of CDO. The company is obviously desperate enough to give Buffet a 10% guaranteed dividend to raise some capital. Now there are questions about whether GE can get another $85 billion they need the next time their short-term commercial paper comes due. Its hard to imagine that a great company like GE would have problems getting that loan but credit markets are frozen and need time to thaw.

2. GE has been a proxy for the economy and the economy doesn't look good going forward. All of the analysts that I listen to say the earnings outlook for the entire market is going to turn pretty ugly as numbers are released this quarter. Estimates are starting to be cut at a breakneck pace. And GE is a bellweather.

With the short ban being lifted last night and earnings for GE out tomorrow, look out below. This is a rare instance that I would consider buying put options on a company but I just did. Will buy some more on any bounce.

The fed is backstopping top rated commercial paper right now which should help GE. However, the downturn in earnings could be a real problem for them going forward and perhaps threaten their AAA credit rating at some point. I have to believe thats what they are worried about most and what prompted them to give Buffet the sweetheart deal.]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-277273 277273 Wed, 08 Oct 2008 18:23:50 -0400
1. GE's annual report tells us that the company is strategically positioned around the world. OK so they are positive that they are strategically positioned around the world and yet earlier this year Imelt or Omlet as I like to call him couldn't even get their earnings right in pre-release statements and sent the share price down 16% in ONE day.

2. NBC has failed to keep up with Fox news in the ratings. To figure out why I took a look at their news coverage and what do you know. The chearleading for Obama going on on that network will alienate all but the far left for years to come. If you don't believe me try listening to Keith Oberman for 5 minutes with an open mind to the center and right's points of view. I wrote to them to complain and had the privileged of receiving a form letter and I started seeing more of Oberman than ever before. So sadly I have have and unrealized loss of 6K on GE stock and I watch Foxnews because not even when it is in my own economic self interest can I bring myself to tolerate even 5 minutes of Obermans smugness.

3. GE bought back Billions of dollars worth of shares in the high 30's and has now issued 12 Billion dollars worth of common and up to 6 Billion worth of preferred at the low 20's mark. So basically the company has squandered billions worth of capital that would have served the shareholders more had it been dispersed in dividends and now Buffet is being paid to take the risk while the common shareholders have been diluted. Keep in mind that the dividends paid on these new issues will be weighing on earnings for the duration of there existence as will the $4 to $1 debt ratio the company has to finance and pay interest on.

4. With the debt that the company is carrying and the credit market frozen you would think that the liquidity received from recent offerings would be a boon and would be kept for the time being to insure that AAA credit rating on GE capital and yet Omlets press release mentions only the potential acquisitions that GE could make with this money. Yes we have seen how competent thay have been at capital allocation so far.

In the end I have no one to blame for my investment but myself but I would urge anyone thinking about investing in GE to think about whether GE is really looking out for its shareholders given my experience with them so far.

]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-276576 276576 Wed, 08 Oct 2008 07:19:44 -0400
Lets imagine you were working out at the Wall Street New York Sports Club with a cut on the sole of your foot. You walk across the shower floor and later develop an antibiotic resistant strain of stapholoccus (MRSA). It gets worse and worse. You get really sick and you have to go to the hospital.

The doctor comes in and says: Listen tough guy, you're done. Eventually that MRSA is going to work its way up your leg and kill you. I could amputate your foot but why bother?

My guess is that you would argue to your doctor that you could enjoy another 40 years of your life without your foot and that given a rusty hacksaw, you would do the job yourself.

Now, if you were an enormous foot, that's a different story.]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-276484 276484 Wed, 08 Oct 2008 01:07:10 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-276291 276291 Tue, 07 Oct 2008 18:51:49 -0400
If you see GE in such a poor position, how do you explain the AAA credit rating? Don't you think the analysts have thouroughly investigated GE's financial arm? Please help me understand your position on GE.]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-276164 276164 "things I can understand" 2. Sust.Comp.Advantage => "fundamentally good economics" 3. Able n Trustworthy Managers => "a management that I like and trust and admire" 4. Bargain Price => "it's got to be a price that makes sense" Charlie Rose: Is there an operative narrative to the kinds of investments you are making other than you look at and you buy on value, look at advantage, management, you look at a place that can absorbed the amount of money you want to invest, and you look at its prospects, and you look at price. Warren Buffett: Yeah. They have to be pretty good size for us now to have... to move the needle. But we look for fairly large situations. We look for things I can understand. A lot of businesses I don't understand. So some guy may know how to make money in cocoa beans, but I don't so I just let him have that. But it's got to be something I understand. It's got to be a business with fundamentally good economics. It's got to be a management that I like and trust and admire. And it's got to be a price that makes sense. And lately the price -- Charlie Rose: Prices make sense. Warren Buffett: Prices make a lot more sense now, yeah. ]]> Tue, 07 Oct 2008 16:53:29 -0400
1. Understandable => "things I can understand"
2. Sust.Comp.Advantage => "fundamentally good economics"
3. Able n Trustworthy Managers => "a management that I like and trust and admire"
4. Bargain Price => "it's got to be a price that makes sense"

Charlie Rose: Is there an operative narrative to the kinds of investments you are making other than you look at and you buy on value, look at advantage, management, you look at a place that can absorbed the amount of money you want to invest, and you look at its prospects, and you look at price.

Warren Buffett: Yeah. They have to be pretty good size for us now to have... to move the needle. But we look for fairly large situations.
We look for things I can understand. A lot of businesses I don't understand. So some guy may know how to make money in cocoa beans, but I don't so I just let him have that. But it's got to be something I understand. It's got to be a business with fundamentally good economics. It's got to be a management that I like and trust and admire. And it's got to be a price that makes sense. And lately the price --

Charlie Rose: Prices make sense.

Warren Buffett: Prices make a lot more sense now, yeah.

]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275854 275854 Tue, 07 Oct 2008 12:18:05 -0400
You know what I care about? When I go into a hospital and see GE medical imaging machinery being used exclusively. Not mostly, exclusively. What I care about is buying GE lightbulbs not Philips. I can't light my house with commercial paper. I can't do an ultrasound with short term financing. Those are instruments. GE manufactures goods and has market share. Remember those words? Goods? Markets? You know, things that are sold to people as opposed to ficticious instruments negotiated between financial organizations which are similarly ficticious?

Forget it, its a long term thing, you wouldn't understand. Potash is due for a bounce, though. I'm sure you bought it already.]]> http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275636 275636 Tue, 07 Oct 2008 10:06:55 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275543 275543 Tue, 07 Oct 2008 08:47:08 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275488 275488 Tue, 07 Oct 2008 07:59:41 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275479 275479 Tue, 07 Oct 2008 07:35:46 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275435 275435 Tue, 07 Oct 2008 05:51:50 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275434 275434 Tue, 07 Oct 2008 05:50:26 -0400 http://seekingalpha.com/article/98782-buffett-buys-ge-goldman-should-you-follow?source=feed#comment-275432 275432 Tue, 07 Oct 2008 05:46:33 -0400