capgain

CNBC Viewership Down 28%

So Durden is crowing about a viewership decline at CNBC? After reading his scree I tried to find his earlier report(s) about Air America going belly-up. Not a word! I guess "reporting" these days starts with a position and the "facts" are whatever you can make up to support that position. A sad but very poignant example of today's media.

Intel's Buy into the Device Software Business: Did They Overpay?

There is good reason that INTC, as the acquirer, closed up on the day of the announcement. Apparently, more than a few investors believe that the price is a bargain, and likely to face competing bids from the likes of IBM or MSFT. WIND is the leader in their space as a result of a re-vamped sales force offering a proven technology into a myriad of markets. WIND's embedded chips have been successfully applied down here on Earth and as far away as Mars. They are in "smart" refrigerators that scan groceries and advise on the need for replenishment; they are in the Mars landers that have outlived their anticipated lives by more than 10 x!! They are in most of the cars we drive and techies across so many industries are utilizing them to facilitate upgrades in installed hardware.

So, did INTC overpay? We'll see over the next 30-60 days if some of the other big boys refuse to let them slip through their fingers.

Why I'm Exiting Cisco

I don't want to be on the road anywhere near this dope.......he's the guy that is using his rear-view mirror to steer.

'AAA' Rated Companies: And Then There Were Six

Let's put things in proper perspective; this is like Joe's Luncheonette lowering their rating on McDonalds.
Jeff Imelt could take a few bucks out of the petty cash drawer and buy S & P!

Mr. Market Has Spoken

I had to read this twice; who is this guy saying all the things I've been saying for months?? And if he can see things as clearly as so many of us, why is Washington so tone deaf? And how much longer are we going to abide these "solutions" that so obviously are much larger problems in the making? Why is the law of gravity being outlawed?

It is as inevitable as tomorrow's sunrise.....failure is a critical component of capitalism. Washington's efforts to deny this by shoveling newly-borrowed money into failing enterprises will only lead to.......larger and more expensive failures!

There are trillions of dollars of private capital wisely sitting out this futile exercise. And you could measure in hours the time it would take for this capital to become the solution to our economic morass, but only after the megalomaniac amateurs in DC park their egos at the curb and get the hell out of the way. And how simple is the answer? Let's try this..........

Reduce the long term capital gains tax to ZERO for five years. The holders of all this side-lined capital will flood into the market to make smart investments free of a tax penalty. There will be an immediate creation of a market for all the "toxic paper" for which there is no market now. The smart money will do their due diligence in a competitive environment and end up buying up this paper for fire-sale prices, perhaps 10 to 50 cents of face value, depending on the long term tax free profit potential. This same capital will look to taking out the govt's positions in the viable enterprises that took TARP money.

In short, capitalism will return to our markets. Investors who put their money to work wisely, free of a tax penalty, will be rewarded. Those who are less wise will experience failure. Balance will emerge, and we will again have the opportunity to make our own individual mistakes!!

Bank of America / Merrill Lynch Propose New Scenario for 'MicroHOO' Deal

Once again, "analysts" have exhibited their value.....somewhere between dandruff and pigeon droppings! If I'm long YHOO I'm checking my mailbox every day for the form to check "YES". However, if I'm long MSFT I'm looking at this suggestion as being comparable to Custer giving all his arms to the indians "just to hold for awhile."

These "analysts" have too much idle time on their hands.

Geithner Unable to Break with the Past

Geithner's "plan" was like kissing your sister.....nothing there. The wags and the pundits were quick to pin the 400 pt drop on this, but I think the cause was far more serious. I think people are realizing that they are on a ship sailing in troubled waters, and the captain just doesn't have the experience or the skills to navigate through safely. To wit, Monday evening Mr Obama stood before the country and, with his bare face hanging out, continued to insist that this bail-out bill was devoid of all pork and earmarks!!! Does he really think that we are all deaf, dumb and blind, and willing to follow him as he stumbles from mistake to mistake?

Of course the market pulled back, just as one rightfully jerks one's hand from a hot stove. What is really needed now is a lot more honesty, and a lot less polished rhetoric.

The Most Dangerous Place to Get Investing Advice

Thank you for such a well-written and simply stated article. It is chock full of basic common sense advice. I consider myself a fairly sophisticated investor and as I read this article I kept saying to myself..."I wish I had seen this forty years ago; I would have avoided so many stupid mistakes."

Your initial point re chartists is so spot-on! Whenever I see one spouting their "expertise", I see a driver steering his vehicle by firmly grasping his rear-view mirror!

Also, your advice to understand what a company does before investing is so basic and yet so often ignored. But it has served Uncle Warren well over the years, hasn't it? As has his advice to panic when others are greedy and be greedy when others are in panic.

You are, however, very forgiving of stockbrokers. My experience of them over forty plus years of investing is a bit less charitable. I define a broker as someone who will likely make you moreso.

Overall, a very good article. Thank you.

CNBC's Gasparino Problem

It sounds like Mr. Salmon has more than a philosophical problem with Gasparino.
Chucky G is hardly a right-wing nut case; I've listened to him light into the current administration as well as the left. Importantly, however, he does regularly analyze and explain quite intelligently the often under-reported consequences of the actions of those whose hands are now on the financial throttle.

Quite frankly, I think we're being driven headlong toward a precipice, and Gasparino is just identifying the terrain along the way. Does Mr Salmon not recognize that we are on a dangerous journey?

The Short Case for General Electric

Let's not forget old Warren's mantra....."Be greedy when others panic....."

I'm sorry, I just couldn't help it. In addition to adding to my GE position @ under $20, I also added Jan 2010 calls at $20 and at $25. I've lived through at least five serious "crashes", but this one is so over-hyped it is almost ready for the daytime soaps!!! We might not be at "the bottom", but remember....no one rings a bell when you get there!!!

Where's the Bottom? Still Anybody's Guess

Very thoughtful effort. It is all too easy to get caught up in the "We have to do this $800 B rescue plan or the markets will collapse" fervor, but there ARE alternatives that deserve consideration. Right now there is roughly three trillion in "idle" capital just sitting on the sidelines waiting for the dust to settle. Some of that is mine and, like T Boone, I "have a plan."

With one easy move by our genius legislators in DC, we the investing public will be able to say to the Paulson posse, "Thanks, but no thanks!!" All they have to do is lower the capital gains tax to ZERO for ten years. You can almost see and hear that three trillion racing by!

A far-out idea, perhaps, but the unpalatable alternative is to have the govt control another hugely important aspect of our lives.

GE: Struggling Short-Term, But Should Do Fine Long-Term

So what if Lehman owned $500 MM GE shares?? That has no effect on GE's share price. The price pressure on GE stock is what I have characterized over many years as "lemmingfear". It is about as meaningful as last Thursday's newspaper! If you are long GE, just remember why you took that position. Was your reasoning incorrect? Is the company so badly impacted by the current turmoil? Or is it in an enviable position to perhaps pick up some bargain-priced assets?

Having just bought a fistful of Jan 2010 in-the-money calls at panic prices, I am going back to work and then going on vacation without having to worry about this Chicken Little operetta.

Natural Gas & Wind Power - The Pickens Plan

This is perhaps the most important discussion that can take place; the very survival of our country as an independent political and social leader in the world is all that is at stake!!

I have read the Pickens Plan. It is not perfect, but it is viable and, more importantly, it is the only thoughtful framework that is on the table right now. We would be foolish to nit-pick it into oblivion just because it isn't "the" solution for all time. To paraphrase, let not perfection be the fatal enemy of the possible. For purposes of discussion, let me state from the outset that I hold positions in CLNE, GE, and PWR.

First, the obvious: Having hamstrung ourselves by limiting severely our production of fossil fuels domestically, we are vulnerable to the political and often fanatical whims of those who are not our very best friends. Worse, we are obliged to fund their "whims" at levels that are obscene. We should start today - this morning - to develop every viable alternative imaginable. This includes drilling for crude oil and natural gas. It also should include hydrogen fuel cells, compressed LNG, bio-fuels, nuclear, solar, geothermal and probably a half dozen that I haven't even heard of. Make no mistake about it....this is a matter of our survival as a free nation, and the environmentalists who have established themselves as the self-appointed "guardians of our planet" will have to just step aside and let the realists work to ensure that they will have enough power tomorrow to light and heat their own
"Save the Planet" offices.

We can and must do anything and everything to maintain our independence. And we must face the fact that we have become our own worst enemies. The petty partisan political theater in Washington has gone beyond acceptability! No matter which side of the political aisle each of us identifies with, we can no longer afford to be red or blue; we must insist, loudly and clearly, that our ensconced representatives in DC stop playing the roles of good Republicans and Democrats and start behaving like good Americans! The only thing hanging in the balance is our nation!!!

Wind Turbines: The New Renewable Bull Market

Both the article and the comments are well thought out. Whether the limiting factor will be the over-taxed current production facilities, the political strictures, the high cap-ex to ramp up production, or, for the average investor, the hesitation to invest in pink-sheet companies, there is a way to cash in. Fatwollit is on the right track, and I offer another common-sense alternative. No matter who produces the wind generated power, and no matter where it is harnessed, it has to be delivered to the grid to monetize it. The industry leader here is Quanta (PWR) and I like companies whose products/services are in demand worldwide!

Looking for the Perfect Dividend Stock

Any listing of high-yields should include BAC @ 8%!