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Ray Merola  

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  • Opportunity Knocks To Power Your Portfolio With Eaton Corp. Plc [View article]
    Thank you for a thorough and well-articulated case for Eaton Corporation, PIP

    The shares certainly appear discounted today. The company has the attributes of a fine investment: well-managed, sound balance sheet, strong franchise, earnings profits in cash, and is shareholder-friendly.

    One negative not mentioned: CEO Sandy Cutler plans to retire in May 2016. He has been a driving force behind the success of the company.
    Aug 27, 2015. 08:28 AM | 1 Like Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Yes, GM wasn't interested....at least outwardly, and at this time. I believe I agree with CEO Mary Barra. Right now, GM has plenty to re-organize, including the Cadillac brand, getting EU straightened out, securing the China market, and of course working through the ignition-switch tragedy and related corporation culture. I suspect Marchionne wasn't willing to give away FCAU, either.

    I suspect Fiat/Chrysler needs GM more than the other way around, and GM has other fish to fry. At least that's my current view of the matter.
    Aug 26, 2015. 05:59 PM | Likes Like |Link to Comment
  • Schlumberger’s bid for Cameron makes sense, analysts say [View news story]
    Does this potential deal have any implication with respect to the HAL/BHI acquisition? Currently, HAL v BHI arbitrage spreads indicate Mr. Market is not sure the Halliburton transaction will close.

    Does the prospective SLB deal imply they believe the HAL combo will close, and wishes to do its own deal?
    Aug 26, 2015. 03:55 PM | 2 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    bobpaulo

    Thanks for the excellent added color about the Arlington facility.

    What was your source/methodology validating an incremental $1 in profits by de-emphasizing rental fleet sales and upping production at Arlington?
    Aug 26, 2015. 12:38 PM | Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Strong points, Brian

    The younger American generation has different views about cars than previous. This hasn't been lost on GM senior management.

    What do you think about General Motors' re-imagining the Cadillac brand? It's been all but forgotten among luxury autos. I wonder if this could be an ace-in-the-hole for the franchise.

    Thank you for reading and commenting.
    Aug 26, 2015. 07:53 AM | 1 Like Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    brucesmith

    Certainly in the midst of a sharp correction, "Mr. Market isn't feeling very confident" may be an understatement!

    Agree that "Peak-cycle" risk is real for the automakers. However, who's really at "peak-cycle?" Europe has been in the pits, Latin America worse. China's growth may be slowing, but the number of cars versus people is still about 1-to-30 versus 1-to-1 here in the U.S. Domestic sales are robust; however, this is after a long period of very low volume.

    Thank you for commenting.
    Aug 26, 2015. 07:48 AM | 1 Like Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Corporations can change culture. Typically, it starts at the top. I believe there are distinct differences between ex-CEO Rick Wagoner (2000 to 2009) and current CEO Mary Barra. Big differences.
    Aug 25, 2015. 09:58 PM | 2 Likes Like |Link to Comment
  • Shell Is Outperforming All Major U.S. Oil And Gas Competitors [View article]
    That's a pretty dire forecast, but who knows.

    In the 1980s, oil fell from $30/bbl to $10/bbl and stayed there for years. The dividend wasn't cut. In 2008-09, oil fell from $140/bbl to $30/bbl; coupled with a global structural financial crisis. The dividend wasn't cut.

    The Company has a stated gearing ratio between 0% and 30%. It's 16% now. The ratio went down year-over-year, despite the fall in oil prices. The math indicates Shell can go a long time, post-BG acquisition, and handle the current dividend.

    I believe no Shell CEO wants to cut the dividend on his/her watch. Not after 70 years' record. There's a lot of levers to pull before reducing the payout.
    Aug 25, 2015. 02:36 PM | 6 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    nafar

    Excellent point. I had not noticed this. Yes, a miss or reduction would be a big problem. However, based upon the 2Q report there's no reason to believe GM needs to reduce the payout.

    That begs your question. Why no announcement yet? In 2014, the 3Q dividend announcement came about August 12.
    Aug 25, 2015. 12:51 PM | Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Reasonable plan, G-Hammer

    I suspect the cash dividend is solid, at least for the foreseeable future.
    Aug 25, 2015. 11:24 AM | 3 Likes Like |Link to Comment
  • General Motors Price Action: What The Hell Is Going On Out Here? [View article]
    Thanks for the support, Bobcat9

    See my earlier comment to Mr. Goodman below.
    Aug 25, 2015. 11:24 AM | 2 Likes Like |Link to Comment
  • Shell Is Outperforming All Major U.S. Oil And Gas Competitors [View article]
    For information only, Shell has not reduced its cash dividend since 1945. The current CEO has gone on record several times stating the company will continue to pay at least the current cash dividend through the end of 2016.
    Aug 25, 2015. 11:08 AM | 7 Likes Like |Link to Comment
  • 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
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