Stoex

AT&T: Dividend Stock Analysis

One can agree or disagree with the methodology in the article. The purest would follow the author's use of "earnings from continuing operations". And as opinions are free, my opinion would be all of us should be consistently using EFCO in all of our profitability analyses.

Thanks.

Barron's: Best Dividend Plays for 2009

These types of articles end up causing investor pain as they look for the magic potion......

Don't let the reference to "Barrons" weigh on any action steps in regards to dividends. Go back to the January 2008 article in Barrons and see which companies show up as safe. Why my goodness GE is one of the names AND look where shareholders find themselves now - a stock inwhich just about a month ago the CEO was mouthing off about a secure dividend for 2009. Now out of the other side of his mouth shareholders hear the word "review". DOW had similar CEO lip service as did BAC about 6 months ago. NEVER, absolutely NEVER go by what the CEO spouts off in regards to the dividend. Do some simple homework starting with "what is the business demand" of consumers that puts cash into the companies pockets. Also be aware of cash positions, debt, payout ratio, pending lawsuits and earnings from continuing operations. If your company adds to earnings through asset sales - run for the door.
Lastly, do a little arithmetic and see what options are telling you in your company. Its not a certainty calculation but a general barometer.

Why I Sold the Utility Stocks in My Portfolio

This article is akin to saying oil is going to stay at 40 bucks. Or we should not be building fuel efficient cars because oil is NOW cheap.

The fact is the underlying utility industry has dramatically aged and is no shape for future demands (ex the current slow down). The grid is chaotic and there are pockets of smaller utilities.

If we as a nation are to conquer our energy appetite, the utility industry will have to recapitalize its efforts and that will require investor incentives.

Stay for the long haul. Buy what is demanded.

When Bonuses Aren't Discretionary

Bonuses are just a part of the compensation structure and by definition are "extra" for achieving something. Its called pay for performance. It should be directly tied to the corporation achieving its goals for the year and at the very top of the list is earnings.
Unfortunate is the idea that bonuses are an entitlement, but that seems to be the mental state of most Wall Street types. The real question is should a bonus be eliminated or reduced as an outcome of goal achievement.
Bonus structure has gotten out of hand just as the role of 360 reviews. Those reviews have weaseled their way into compensation structure when it reality they are for development.
Seems as though the leaders and decision makers of corporate America have lost sight of performance and work ethics.

TEPPCO: A Safer Income Investment Than GE

In regards to the Buffett "stick with me" syndrome..
didn't he buy preferred shares? So any common dividend change isn't going to impact WB's income.

Immelt's dividend committment is about as good as what shareholders got from BAC and soon DOW.

Should GE's dividend be substantially cut, I believe institutional holders who have yield constraints will punt the puppy out.

This article did a good job offering alternative dividend investing and with some very common sense point (ie, volume movement vs actual commodity price movement).

Invest Where No Credit Is Required

On closer look one should realize GE is already being priced as though it has lost its AAA rating. Now consider this, GE has ultimate control and decision making regarding its dividend. On the other hand, its triple A rating has factors of both direct and indirect control on the part of GE. Macro factors from outside of GE can and have altered expected results that may now impact its rating. And about this rating frenzy. Has everybody forgotten the headlines about what has gone on inside the rating agencies?? We are to trust them? Why don't these agencies, who consider themselves godlike, rate companies as "under current economic conditions" and "post economic conditions"? That paints a different perception of buying GE today for "tomorrow's condition". You don't take the patient out and shoot him just because he has caught a cold!

I would hope Immelt has witnessed the CEO impact of "sugar coating" and lying by bank CEOs of recent. I do disagree with one action by Immelt. Shutting down the communications process only produces worry and distrust while attempting to lower volatility. It would have been more prudent to step up the communication process thus adding to investor comfort. Who is Immelt's ultimate target audience, the industry analysts or the investing public. After all, the price flucuation is 20% math and 80% emotion.

Looking at Emageon in a Buyout Only

This is a great analysis, recap and conclusion. It helps draw attention to one of the most important factors in the merger trade - financing. The spread would be more narrow if suitor was self funding the transaction. SIBL's actions, for whatever reasons, were the fear drivers back in December.

Things to Consider About an Aggregator Bank Intervention

...and while we are at the time of socializing the losses of bad decision making by banks, I would like to apply my losses, from investing in a few bank stocks, to the "Bank of Social Losses". What form do I fill out and whom do I send it to? Oh wait, that's right. I take it to the "Bank of Bend Over". Sounds like a great idea. Get hit with shareholder losses, while the bank pros took home millions in bonuses and then also involuntarily have to pay higher taxes down the road for the bailout. Hey, can I get a job at the "Bank of Bend Over"?

How the Government Forced BofA to Marry Merrill Lynch

No doubt material information regarding the MER purchase and ensuing deterioraton was voluntarily kept from shareholders. Not that is was a decision, it was a choice by the leader. What else has the leader been up to when it comes to decision making and personal wealth?
Shareholders and regulators should demand an inquiry to any hedging of personal shares (as compensation) that Lewis and his managers may have participated in over the last 2 - 3 years. Why? These cronies have been awarded hundreds of thousands of dollars as bonus money in the form of shares. No doubt they had a vesting or holding period, but can you imagine Lewis being awarded a bonus of say $1 million dollars with a holding period of three years and be held to market price flucuations that could result in him actually receiving less? That would be like saying, "Here Ken is your $1 million dollar bonus but we have no idea what its actually worth upon cashing out."
So did Lewis and any of his managers put on an over the counter collar on any awarded shares and when did they do this and more importantly did they do it at a time of being in possession of material information or when they where making decisions impacting shareholders. Such collars are not uncommon among the "rich". They will give up some upside (selling a call) and be protected from some downside (buying a put). As an otc trade, it doesn't hit the tape so nobody notices and the holder of the collar has protected his/her wealth.

Now shouldn't this be a disclosure requirement in all financial statements? Its not. We do get their share holdings but not on their personal hedging, if any, against those shares. Where is the SEC on all this? Why are shareholders demanding more? Why is there no confidence in the management of BAC? Seems like we all know why, just nobody doing anything about it.

Satyam's Moment of Truth Is at Hand

Satyam plunges over 70%; Chairman Raju resigns! (a lesson to be learned)

More importantly look at the financial firms touting the stock as a "buy" or as a "hold". The books were cooked and AGAIN none of the CFA's, MBA's, Phd's, Compliance Boards, SEC in their roles caught on. Where or where is due diligence? Where is oversight headed?

Here's the lesson:
Why do we the investing public let any brokerage firm move our emotions about "hitting" an earnings estimate, "coming in below expectations", being added to a "buy conviction list" and so on and so on?
SAY recently rumored to be a buyout candidate??? Would due diligence been apparent by the advising firm?

SAY is not alone in their less than ethical behavior. Where was the board? How qualified was the board? Etc.

Merger Review: Puget Energy

Spreads have multiple factors influencing the size. Simply put, the time horizon will impact the size and right behind that is the confidence the market has in a deal getting done. The above reference to the MER/BAC deal should have noted there was concern the deal would NOT get done (ie shareholder approval) because of price. Confidence levels will be driven by regulatory approval hurdles, financing hurdles, pending legal issues, etc.

Merger Review: Puget Energy

What Jae says about the "conditions" is correct and there are no issues with financing. I reiterate though, with a two week (if accurate) closing the spread should be under 5%. This is puzzling, but opportunistic none the less. If they wait too long there will be a dividend issue to deal with. Why give that up? Its cash in the bank for the new owners.

Merger Review: Puget Energy

The gap between current price and take out price should be smaller given its a two week period before closing.