Jolly_Rancher

Here Come Pharma's 'Me-Too' Mergers

BP management is predictably acting in its own self interest just like management from other sectors. The agenda is to buy into big cash flows that will support management's lavish lifestyles. So Wide Moat, you are correct in that the cash looks good, but management is going to "back out" those cash flows right into their pockets -- Lear jets, stock options, expensive travels and office renovations, etc. Dividend? Cut in half. R&D? Nonexistent.

36 Opportunities for the Beginning of the Bull

I just set up a pseudonym because I tired of being User X. In this discussion I posted above as User 210417.

Ames, I actually think you and Bill Cara are both correct partially!! I think this is a bottoming cycle but the bottom ain't gonna be pretty -- maybe six months of wicked downs and ups that will pretty much keep the ETF investors thoroughly whipped out. 1975 this is NOT. The best one can do is buy companies whose earnings are not entirely driven by the economy, like selective drugs/healthcare. Again, very company specific. Indiscriminate buying or shorting will result in whiplash. Perhaps dividend plays make sense here -- stable companies only with little economic downside.

36 Opportunities for the Beginning of the Bull

I agree with you, but...

I think GE is probably not the most imaginative pick. Why pick a stock for it's industrial nature whose earnings in the past have come mostly from the finance arm? Also it is composed of heavily healthcare and entertainment. Doesn't make sense. Maybe TEL makes more sense as an industrial conglomerate.