Weissass

Stocks with the Largest Short Positions

The shorts are betting that Walmart's future earnings will get crushed by Obama's promise to Labor Unions to enact Card Check and other pro-union legislation. If Unions infect Walmart's low cost business model, WMT may become as sick as the "Big Three" Automakers.

Pfizer and Wyeth: A Marriage of Convenience

The merger makes sense if you suspect a governmental takeover is in the works. The bill is already circulating in the House to enable Medicare to negotiate directly with the drug companies to create a low-cost formulary of drugs for Medicare beneficiaries. The bigger companies have more drugs and can therefore negotiate better terms with one contract. The goverment takes the whole "basket of drugs" from the company at a steep discount in exchange for exclusivity on the formulary. Sell more drugs at a lower price while taking market share from smaller competitors who eventually become takeover targets.

Congress Needs a Course in Remedial Finance

Excellent discussion on politicians' educational qualification...

Why isn't there a qualifying exam or board certificate that must be earned by our political leaders? We could then consider voting for the smartest, most experienced, most talented candidate rather than one who "shares our values" or "feels our pain." Why don't voters have to take an exam to demonstrate that they have a fundamental grasp of the issues?

The Congress is just one big jury of fools making decisions based on blather dispensed by the two opposing counsels (Dems & Repubs).

Barron's Takes Down Cramer, Again

Do your own due diligence...Mad Money is entertainment with a dose of education. I gather many opinions from many sources before drawing conclusions and making trades...then I still lose money in this market!!

Bond ETF Yields in Historical Context

The interest payments are tax-free (unless your state income taxes really suck) but any gains from selling the fund at a profit would qualify as a capital gain (15% longterm, 20% short-term). If you're in the highest federal tax bracket, the tax-free muni's are the way to go. I'm getting about a 9% annual tax-equivalent return. Buy and hold individual AAA/AA bonds to maturity and reinvest all proceeds = the mythical dream of compounding interest!

Now Is the Right Time for a DRIP

DRIP's take some of the emotion out of investing and lead to that mythical goal of compound interest. The Schwab platform allows "one-click" access to set up DRIP's at any time. It's very convenient and easy to change. I have noticed that the share price IS marginally higher on the days that the DRIP shares are bought...so the market-timers DO have a slight advantage.

Partial List of Personal Holdings: Bonds, ETF Bond Funds and High-Yield ETFs

Where's the muni exposure? I suppose if you're in a lower tax bracket or trading in non-taxed accounts, the muni's aren't as beneficial...

How Wall Street Has Failed the Individual Investor

America's Corporate Culture of exorbitant compensation and golden parachutes for CEO's/Upper Level Management has got to end!! The bonuses should be going to shareholders/investors... Unfortunately, we need some "socialistic" regulations to curb corporate greed. Cap CEO compensation to $1M/y for all publically traded companies. Impose a 99% federal tax rate on compensation of top level executives who run their companies into the ground! End golden parachutes, deferred compensation plans, and stock options.

Although I exaggerate the draconian measures that COULD be imposed, we definitely need some formal outside regulation to prevent these public companies from continuing to fleece the investing public.

Three Financial Stocks Worth Holding

...just buy XLF on the dips and you won't have to pick winners or losers.
You can also look into diversified financial funds like Nuveen JQC which currently trades below NAV and pays a whopping 24.5% dividend yeild. If you follow the Rule of 72, your investment will double in less than three years without any stock appreciation if you set up DRIP's.

But don't take my advice...I've gotten my clock cleaned by the financial sector this past year.

General Electric: Genuine Risk of Collapse?

The Dems are going to allow this market to sink until Inaugeration Day when their Holy Annointed Savior takes the helm...then they'll push through a middle class tax-cut, a corporate tax-cut, perhaps a capital gains holiday and one huge infrastructure stimulus package. Stocks will rally bigtime!! The Dems will deny the tax cutting had anything to do with the successful rally and give all the credit to Obama's leadership. Just like Reagan took credit for the freeing of the Iranian Hostages when he took office.

The last eight years proved Repubs could outspend the Dems...maybe the next eight years will prove the Dems can be fiscally conservative? I might have to go Blue!

GM Could Benefit from Bankruptcy

"Good paying jobs" are not coming back...we are not "entitled" to them anymore than the Mexicans, Indians, or Chinese. The Union's impossible demands have forced jobs overseas in order for the companies to stay competitive. Welcome to the downside of UNIONS!! They can do many positive things but in this case they're part of the problem along with exorbitant CEO/Executive pay. I refuse to allow my taxes to be wasted on subsidizing your FAILED industry.

Many Americans won't even consider buying an American made car... even before they've formally announced their bankrupcy. My 2007 GMC Van is light years behind the quality of my 2001 Nissan Maxima. The A/C unit on the new van is the same non-digital crap that was installed 20 years ago! The cab lights don't go on when you open the doors. I could go on...

General Electric: Genuine Risk of Collapse?

I'm not into conspiracy theories, but there must be a reason GE backed Obama?! Maybe GE management felt the Dems would be more willing to bail 'em out if they fail? Maybe GE likes the Dem's idea of infrastructure projects as an economic stimulus? Maybe the arrogant GE execs think they can more easily manipulate Obama & the Dems? Just honest speculation....