jdubrox

http://eight-thirty.blogspot.com
Total Rating:
+3 / 0

6 Comments

    • Fri Nov 14th 01:26 AM | Rating: +3 0
      Commented on:
      GE Hits 12-Year Low: Time To Stock Up
      Hey Matt,

      I understand what you mean about being a "major buyer." A poll would show that roughly $65,000 is a lot of money to about 99.8% of our population. I congratulate you on your major buy. You're right that you've put a lot of capital into GE. I surely hope this is the bottom... When the company released the statement today once-again guaranteeing their dividend through 2009, I myself picked up some shares too. Not quite as substantial a purchase, but I definitely bought big (in terms of my own goals and horizons).

      I agree with previous commenters that UTX does seem more financially sound on paper. However, I, like yourself, will gladly take my almost 8% dividend on my GE shares and compound it for years to come. Not only that, the company will likely begin to raise the dividend again in 2011 at the latest. For sure, they won't lower it- GE has a reputation to maintain.

      Investors and wannabe-investors alike have been giving GE quite a bad wrap lately because of its financial difficulties. Advice to them: get over it. Only 45% (at the most) of GE's revenue comes from their financial services business. GE's other business (Media, Infrastructure, Healthcare, etc.) are thriving, in general. Demand for nuclear power plants and jet turbines continues to grow at double-digit pace. Once GE gets its finances under control, investors will see the light and realize that all along the fundamentals have been there. GE has laid off very few workers, and maintains a healthy cash position, continuously gobbling up competitors (thanks partly to infusion from the Berkshire team).

      Matt, you're a smart investor. As I bought GE today, I told myself, "people are going to look back on today and say, 'I watched GE sink to $14.75 a share that day, and I. sat. out. ..only to realize later on that it was one of the biggest mistakes of my life to have done so.'" I've seen the light and I know that you have too. Earnings growth will return... it will because GE is a solid company with solid leadership- they're already making the hard decisions (as evidenced by dumping certain divisions).

      The fundamentals are there, but an irrational market abuses its only rational players. We're the rational players and it's time the irrationality ended. Buy.

      Disclosure: Long GE, of course.
      View article »
    • Thu Sep 25th 16:17 PM | Rating: 0 0
      Commented on:
      GE: Not That Different From You and Me
      Ed. K

      Why do you comment as such, when recently you posted the following:

      "I WOULD NORMALLY BE THE LAST PERSON TO DEFEND MR. IMMELT BUT THIS TIME I THINK GE'S RESULTS MIGHT HAVE BEEN BEYOND HIS CONTROL.ALTHOUGH HE HAS TO TAKE THE HEAT FOR THE MISS I BELIEVE THE FINANCIAL SECTOR MELTDOWN AND ECONOMIC SLOWDOWN WERE THE MAIN CONTRIBUTORS TO THIS."

      You seem to contradict yourself, and the capital letters don't make you look smarter.
      View article »
    • Thu Sep 25th 16:16 PM | Rating: 0 0
      Commented on:
      GE: Not That Different From You and Me
      P.S. ALL CAPS DON'T GIVE ANY MORE REPUTABILITY TO YOUR COMMENT. JUST FYI FOR YOUR FUTURE RANTS.
      View article »
    • Thu Sep 25th 16:15 PM | Rating: 0 0
      Commented on:
      GE: Not That Different From You and Me
      To the gentleman who claims that Immelt has not taken any financial hit from GE's share price tumbling:

      On 5/28/08 Immelt purchased 115,000 shares of GE at about $30.60/share. That means he spent $3.5 million of his own AFTER-TAX money to purchase these shares. To my knowledge, he hasn't sold any shares since, and his stake stands at roughly 1,562,000 shares.

      Do you have ANY idea how much money he's lost in the last year on his own company's stock? No- the answer is that you clearly have NO idea how much of a fiscal impact this is having on Immelt's own retirement portfolio.

      1) He's not going anywhere. They're not going to give him the boot because he's handling GE's credit issues as well as anyone could. The market has a much larger hand right now in GE's financial success than Immelt does.

      2) Since GE's peak last fall at around $42 per share, to where it stands right now at about $25.50, Immelt finds himself presently sitting on an unrealized loss of more than $20,000,000.

      So let me say once more: you have no idea what you're talking about. It's ignorant investors that keep wise ones from making the right investing decisions.

      I will proudly collect my 4.85% dividend yield of $1.24/share per year on my long position in GE. The company has announced its intention to maintain its present dividend, and you can rest assured they'd never cut it. Tell me what you're earning in your savnigs account. If its anything close to the national average, then my GE shares are yielding ten times as much income each year than your savings account is.

      Oh yeah, and I'm beating inflation.

      View article »
    • Tue Jun 17th 08:50 AM | Rating: 0 0
      Commented on:
      GE: More Bad News to Come?
      This article appears to be very nearsighted. In order to be taken seriously, command of proper grammar and spelling is a must. Specifically, your Aero Engines section could use some work. "Effect" and "Affect" do not mean the same thing, nor are they even the same part of speech.

      Talk about written on a whim...
      View article »
    • Mon Mar 3rd 15:05 PM | Rating: 0 0
      Commented on:
      Time to Short Financial Stocks - Starting with BofA
      I whole-heartedly agree with JSwish, who pointed out the dividend factor. If you do as this article says, and short BAC at today's open/close price, you're then responsible for paying the dividend on that stock. I'm seeing an average dividend right now of $0.64 per share. Pay that each quarter, and you're paying ($2.56/sh/yr over $38.92/share) and there goes 6.58% of your capital. In my opinion, "paying money" and "Bank of America" in the same sentence mean "atm fees" and "mortgage payment", not paying BAC's dividend to someone else who's holding long. Then, if you're right by shorting BAC that the stock will go lower, if it actually does go lower, and BAC keeps the same dividend payout, you're going to be essentially paying any gains you've unrealized back to BAC long shareholders in the form of an ever-increasing yield of the dividend.

      Good luck with that one.
      View article »
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