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Ray Merola  

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  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Art S.

    Union contract talks are a risk factor for many many industries.

    What if contract talks break down? On the other hand, what if contract talks go well? Without the ability to handicap something based upon facts, I try not to let it influence my long-term investment decisions too much. I prefer to invest in companies versus trade shares on short-term issues.

    A union issue works itself, one way or the other.
    Aug 25, 2015. 09:54 AM | 1 Like Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Unfortunately, Gayle GG, I am not sure the facts and statistics support these points. GM has de-emphasized fleet sales, and the Buick light vehicle brand is doing especially well in China and the U.S. I recommend keeping an eye on Cadillac, too. Big management changes and marketing approach coming.

    Nonetheless, GM North America July sales were robust, to say the least.
    Aug 25, 2015. 08:20 AM | 5 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    funfun

    An article about GM, BAC or DD would be incomplete without your colorful remarks.

    Some of us may have a more favorable view of GM management. I think they are making some of the tough calls, for example: working to maintain automobile price integrity / margins versus just moving iron out the door; shutting down woeful Russian ops, segregating Cadillac management and location from Detroit operations with an eye on restoring the brand.

    Dupont, maybe another story. I'm less impressed with Kullman and Co. Maybe Peltz can help iron it out.
    Aug 25, 2015. 07:56 AM | 4 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Remford,

    You, Sir, are what make a market. While some may disagree with your thesis, it's well-articulated. Author's "contra" Pick. Thank you for taking the time to compose and share your thoughts.
    Aug 25, 2015. 07:48 AM | 5 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    vigma

    Mr. Market certainly appears to have mis-priced GM. The 5% dividend yield when 10-year Treasuries are under 2% is one of several tips.

    BTW, I believe Benjamin Graham (a mentor to Warren Buffett) was the originator of the first part of the quote referenced. His remark was timeless.
    Aug 25, 2015. 07:45 AM | 3 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Indeed, AZIZ KHAN,

    I believe the Efficient Market Theory is nonsense. Recent GM price action has been just silly. Nonetheless, buying in stages is a better strategy than all at once; especially while the market has been correcting.
    Aug 25, 2015. 07:42 AM | 5 Likes Like |Link to Comment
  • When Opportunity Reveals Itself, Part 2: The Eaton Corp. Dip [View article]
    I agree with most of the investment thesis, except if the only time Eaton cracked a 4% yield was during the Great Recession crash, what probability do you place upon getting a bid low enough to provide a 4.5% yield now? That's $48.89. Great deal if it comes about; given the wild ride today that might be in the cards.

    I was happy to purchase Eaton shares with just a 4% yield. Today provided an extra opportunity: buy at $53.95 and an even greater 4.1% dividend yield. This is slightly above my prior basis.

    I believe some of ETN's dividend is also considered return of capital. As such this is an added positive. On the other hand, great CEO Sandy Cutler is departing in May 2016. This is a negative, though I suspect the CEO transition will be smooth. Nonetheless, there aren't many Sandy Cutlers around.
    Aug 24, 2015. 05:57 PM | 3 Likes Like |Link to Comment
  • Bank Of America Turning The Corner With Pulling Guards [View article]
    I agree that trying to time a market bottom is a fool's errand. However, one can put together a "shopping list" based upon discount from fair value and leg in slowly. I do not buy any stock "at once," always buying in 1/4th or sometimes smaller increments over time. I try not to "violate basis."

    Now would seem like a good time for that.

    Unfortunately, I tend to be early to the party but still have some dry powder left. Picked up a few bargains this morning. Remarkable day on Wall Street.

    Thank you for reading, WhatsUp
    Aug 24, 2015. 11:24 AM | 1 Like Like |Link to Comment
  • At the open [View news story]
    Remarkable.

    I picked up a few bargains, or at least these seem like bargains now. One unusual fill was Celgene at $93.55. It's own "flash crash."
    Aug 24, 2015. 11:17 AM | 4 Likes Like |Link to Comment
  • Bank Of America Turning The Corner With Pulling Guards [View article]
    While in the midst of a violent correction, it's difficult to predict what will pacify investors. Uncertainly about China's economy, markets, and policymakers appears to be at the center of the storm, but there's a great supporting cast of worries.

    I'm putting together a shopping list of prospective bargains, then just waiting to see what happens. No heroics.
    Aug 24, 2015. 08:17 AM | 2 Likes Like |Link to Comment
  • Bank Of America Turning The Corner With Pulling Guards [View article]
    Edi222

    My earlier remark was meant to be somewhat tounge-in-cheek. I was referring to the August 20 price of $15.30. Sorry for the confusion. Market panics require a little levity.

    I don't know if BAC trading revenue is helped or hurt by the current volatility. If forced to hazard a guess, I'd say it wouldn't help matters.
    Aug 21, 2015. 06:53 PM | 1 Like Like |Link to Comment
  • Bank Of America Turning The Corner With Pulling Guards [View article]
    When the market throws fits like this, I tend to do the same: little to nothing.

    I have "shopping list" with limit orders set. These are all considerably lower than today's prices, often seeking to accumulate shares for "accidental high-yielders" if the shares fall through the floor. I already have positions in these tickers. No new names.
    Aug 21, 2015. 12:45 PM | Likes Like |Link to Comment
  • Bank Of America Turning The Corner With Pulling Guards [View article]
    Edi222

    Looking at premarket, maybe BAC could be back to $15.30 again today! Energy, Financials, many Industrials, and Materials stocks are all in the tank.

    For those with some cash on the sidelines, some opportunities may arise.
    Aug 21, 2015. 08:23 AM | Likes Like |Link to Comment
  • Energy Transfer Equity - Stay Close To The Energy Transfer Family In The Downturn [View article]
    Good article, Mr. Khan

    You've noted ETE has a 24.7x annualized P/DCF multiple. Do you have any comparable P/DCF ratios with which to compare Energy Transfer to the other large, mid-stream or pipeline MLPs / Corps? (i.e., EPD, KMI, WMB, ENB, etc.)

    Thank you.
    Aug 20, 2015. 11:12 PM | 2 Likes Like |Link to Comment
  • Bank Of America Turning The Corner With Pulling Guards [View article]
    mag2015

    Greece is a sideshow in part of a bigger, negative, panicky set up. BAC isn't down over Greece per se; it's down along with other Financials for several reasons: worries the Fed will raise rates in September, worries the Fed will NOT raise rates in September, China, Europe, emerging markets, U.S. deflation, etc.

    We've experience a long run market advance. Perhaps it's time to let some air out of the balloon. There's already bear markets ongoing in Energy, Materials, and some Industrials.

    I have a "shopping list" of certain securities that I'd buy if they "come in." Most would be accidental high yielders: offering 4% at given prices.

    As for BAC, I'm just sitting tight. Doing nothing.
    Aug 20, 2015. 05:24 PM | 2 Likes Like |Link to Comment
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