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.

'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!!

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!!!

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%!

Adding to My GE Position

Davy:
Your assessment is valid, if a bit tepid. Most investors (especially the "professionals") are mentally lazy lemmings who run to follow the crowd. Just as you have disclosed what part GE plays in your portfolio, I am happy to do the same.......it is my largest single holding by far, and has been for the last 40 years, and the lemmings who sold yesterday sold to......me.

Having made clear that I value this as a smart investment, let me be fair and opine that GE is a sub-$30 stock now for two identifiable reasons. The first is cited above.....the lemming factor. The second is a consequence of its timidity years ago. For those readers who have a fair recollection of history, think back to GE's attempt to buy Honeywell. This was an acquisition that rivaled sunshine in its brilliance. And GE backed down in the face of protectionist EEC opposition! When the EEC said "Tut, tut" and "Nein, nein", GE said "Uncle" instead of "#@^& you" and that was the beginning of its slide toward $30. (Are you listening, MSFT?)

It continues to both amaze and disappoint me that the powerhouses such as GE, MSFT, and UTX continue to knuckle under to the lilliputians and the tree-huggers to their own detriment.

Now fast-forward to today, and you will see why GE is still a good investment. Who is taking the lead in developing potable water, wind-generated power and fuel-efficient engines? Right! Now if only they would also focus on fuel cell technology, the obvious answer to our imported oil morass.

Davy, continue to tell it like it is......and don't be afraid to be right!

Dow: An Undervalued 5-Star Market

It's tough to argue with Mr. Johnson's assessment of these major players; most of them are in my portfolio and I am very willing for him to be right! However, AIG (my second largest holding) is problematic. This company is like an out-of-control freight train heading for almost certain disaster. Sullivan is so far over his head it is shameful. It's hard to believe but a good $80 billion has been vaporized to date and I don't see who/ what is going to step in to effect a change in course.

Your over-all take on the major players you mention is probably correct with this one exception.....it almost makes me gag to have to look at the reality of AIG; right now it is OVER-VALUED!!!

Options Trader: Monday Outlook

"...poor starving masses"...."greedy upper class".....Boone Pickens a "deranged rooster"....this scree is right out of the Bernie Sanders/George McGovern handbook for socialism! The writer has such a hair shirt on for GE that anything constructive that he might want to impart is buried so far under his disdain for capitalism that it is lost to all but the nattering faithful.

An obvious question arises......just where else should Pickens have looked for his turbines? The Sierra Club? The Environmental Defense Fund? Peta? NPR?

The writer is obviously intelligent, writes well, but is long on form and short on substance.

Blood in the Streets: Buy and Hold GE, For Now

Ryan,
You are obviously an investor (as am I) keeping your ship upright in a sea of traders. I have lived through tumultious markets and have ridden out the swells that have often been nothing more than traders trying to prove that they are smarter than everyone else and able to alter the tides. They came from the used car lots, spent time as day traders, and have migrated to the mortgage broker offices. Personally, I'm ok with waiting for the blood in the streets, and have added substantially to my GE position recently. My grandchildren will see first-hand the value of common-sense investing; thank you for your reasoned opinion.

Analyzing Analysts on GE, GOOG, C Earnings

Bravo! Well said! The first two sentences of your piece are spot on. The added "value" that analysts provide is worth almost as much as an expired option. They come from the same gene pool as consultants, that over-compensated genre that takes your watch in order to tell you what time it is.

Is General Electric Overvalued?

Of course you are correct.....and if you have any of that over-valued GE stock that you would like to unload at a "fair" price of $33, or $30, or $26....just get back to me. I'll take it off your hands.