Dividends Anonymous

Jerry Yang's Blunder - Worst Business Decision Ever?

There are far WORSE decisions that were made (at least YHOO is still solvent & somewhat competitive) but it has to rank high on the "shareholder screwed" list when you consider where the stock price is now and what extra value he attempted to foolishly squeeze out of Microsoft. Now they'll likely get taken out at a much lower price and long-term shareholders will hardly make a gain. Here's hoping he never sits on a board or runs a company ever again (failure)

10 ETFs To Be Thankful For

I think XLK (SPDR Tech) will do well as a long-term investment. It's held up slightly better than the market and moving forward has great diversification in hardware & software companies that businesses & consumers will continue to use.

Is Bankrupt Britain Trending Towards Hyper-Inflation?

There's only one "tried and true" method for getting rid of excessive amounts of debt and that's inflation. Whether its hyper-inflation or simply higher inflation we have to wait and see, but a reasonable amount above a 2-4% target should be expected in the coming years.

Pre-packaged Bankruptcy Is GM's Only Option - Barron's

It is clearly the "BEST" option, but when has management, the unions or governments involved ever made the best decision based on long-term sustainability?

More of the same, which will only perpetuate the cycle of boom/bust for the NA automakers. Sad, because GM could be a force globally if they only were proactive in managing their long-term obligations.

How Much Does the Bailout Really Cost?

Wow.....for inflation adjusted returns that's not "THAT BAD" yet :)....

The Way Smart Money Diversifies Risk

The way most "Smart Money" diversifies risk is to invest in a number of different assets including commodities, PE, hedge, currency, etc. They can pay multiple managers in various ways to help them gain access to exchanges or products around the world. A retail investor can do that in some part due to the ETF products now available and brokers such as IB, but we'll still lag on the information foodchain.

Apple's Greatest Idea Yet

There's no such thing as a "sure thing" when investing - otherwise everyone would be in it. Apple is a consumer stock and just as any technology company they're at the mercy of consumer trends. What might be hot today might be stone cold tomorrow and unless you can continuously stay ahead of the game then you're exposed to risk. Margins are declining so unless sales increase at or above that proportion investors should be cautious. We're entering a period where demand for high-end goods might not be as feverish as investors think. Yes they have great products, great management and have compelling fundamentals but they are just as exposed to the consumer as any other company who sells a product/service to that market.

Four Commonsense Clues to a Genuine Market Bottom

Good article. The only problem with P/B is that if you're not sure what the liabilities are actually worth or if the company has off balance sheet liabilities not publicly disclosed than you can get into some serious trouble. Many sectors have been trading below P/B or NAV for quite some time now and while the broader market might be an indicator I think the S&P with strong financial weightings skews that result somewhat. I would caution against P/B as a valuation for a market bottom and continue to look to equities who continue to increase their book value by meaningful growth rather than growing the business through equity or debt.

HP Shows Strength as Its Competitors Flail

One investment if investors aren't comfortable holding individual tech names is the ETF XLK (Technology SPDR). HPQ is among its top holdings as well as hardware & software companies.

Everyone is going to see competitive threats but the companies with the strongest cashflow and able to execute on a competitive growth strategy will be able to make considerable gains on the other side of this economic cycle. Technology is needed in a global economy and HPQ is a great company to gain exposure to either directly or indirectly.

General Motors: Time to Pull the Plug

I think the unions aren't fully responsible, but they certainly didn't stop this ship from running onto the rocks. Do people seriously think that $50/hr to put a door on a car is productivity? It's a depreciating asset.
The bottom line is that workers are overpaid for their work and that contributes to the broken business model. Do GM workers deserve to make more than engineers, nurses or teachers? When you measure meaningful productivity the UAW's are overpaid on wages and benefits. Yes they got that because of the big 3's sickening addiction to SUV's and higher margin vehicles but UAW management should have been smart enough to see that as unsustainable.
Capitalism works best when the weak are allowed to fail. There are no freebies in business and Chapter 11 is calling their names. That will make them more competitive - not a bailout or infusion of funding

General Electric: Genuine Risk of Collapse?

Time to bring out the "whacking stick"

Current management has created zero shareholder value and run the financial arm of the company into the ditch. The rest of the businesses are actually worth something and over the long-term will grow the company in meaningful ways. Cut the fat & this beast will begin a revival that sells what the world needs for industrial innovation.

A Guide to Water Investing: Desalination

ERI is a great company when you look at their intellectual property.

Let GM Fail

This is what Chapter 11 protection is properly used for - to protect a company from creditors as they restructure properly or fold. GM will not go away forever, but their business model is not sustainable. Their expenses are too high, revenues too low and products are not competitive with foreign competition. Management for far too long has been reactive vs. proactive and that gets you owned in the real world. I understand that the company is huge, employs lots of workers directly/indirectly and many pensioners - but it needs to restructure and the only way to do that so something is left is through Chapter 11.

Digging into Shipping

One company you forgot to mention was SSW. They lease the ships to the bulk carriers and are therefore less exposed to volume as contracts are binding and cost prohibitive to cancel. It also pays a very attractive & sustainable dividend.

Is Apple More Undervalued Than Other Tech Sector Stocks?

The only concern that I have is when everyone's focus is on only one company the competition is likely making significant inroads elsewhere. While AAPL is a great company I think you need to be concerned about the pressure on margins and how a decline in sales affects their profitability.

The products are great, but you're buying the business when you purchase the stock and there's a big different between the two.

Great article.