Michael Delaney

P/E - Value Plays or Value Traps?

User 422955,

Windstream has a trailing EPS of $0.86, an estimated forward EPS of $0.88, and is paying a dividend of $1.00. How can this dividend be safe? It cannot.

I would not be surprised to see the dividend cut to $0.50. The current price is $7.97, so the dividend yield would be 6.2%, still a good return if the price per share remains constant or rises.

Wall Street Breakfast: Must-Know News

Everybody wonders why our automobile manufacturers cannot produce small efficient cars like they do in Europe and Brazil and sell them here. Then they elect people to go to Washington to enact laws requiring safety crash tests and pollution controls that are much less stringent in Europe and Brazil. Don't you think GM, Ford and Chrysler know more about making cars than you do? And more than our elected officials do? And don't you think GM, Ford and Chrysler would produce a high-mileage, low-pollution, crash-safe, and affordable vehicle if the technology is available?

Everything is a trade-off. If you want to trade a less safe vehicle (lighter weight) for more fuel economy and fewer emissions (lighter weight can use smaller engines), then let Washington know. Say what you want about big SUVs. They are safe and as long as gas is cheap, the public will want them.

Cramer's Mad Money - More UltraShort ETFs? (4/28/09)

"I wonder if Cramer would be switching positions as usual, when summer crash occurs..."

I hope so. As long as the market is going up, whether caused by lies or spin or CNBC hype or not, I am along for the ride. I don't care what the reason is. If we get a crash this summer, a smart trader would start to short. I do not short, so if the market crashes this summer, I will just be out (in cash) waiting for the next run up. I gave up trying to be right while fighting market trends a long time ago.

Thoughts on Active Trading vs. Buy and Hold

What is the definition of "Buy and Hold"? As the author points out, even if you have a long investment time horizon, you still have to dump a losing stock if your original thesis no longer holds water. Otherwise, you're watching your Lucent position get smaller and smaller as you keep chanting "buy and hold".

Even with buy and hold, you have to pay attention (it's not an excuse to be a lazy investor) and you should have some idea where you want to place a stop loss limit.

Cramer's Mad Money - Beating the Bad News Bears (3/13/09)

BMWTwisty,

You are one angry Apple-holic. Nearly all of your 33 comments are very critical (of CNBC, of Cramer and of anyone who says anything negative about Apple or Steve Jobs). Lighten up. If AAPL drops in price, you can buy more! Isn't this fun?!