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Was born, has lived a fairly good life, will one day cease
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  • Why All Buybacks And No Splits?

    I know I know splits add no value-- splits are jsut a way for investment bankers to cash in.........nonsense

    Why with the market at all time highs do i keep seeing reports of massive buyback programs? Sure I hate dilution as much as the next investor but to buy high and sell low makes no more sense for a company than it does the individual right?

    now talking about the individual investor, the young kid who wants to get a stake in some big safe divvy payers and buidl long term wealth slowly, how is she supposed to do this with prices like these-

    JNJ $92.5

    UTX $112

    BA $138

    3m $139

    Seems to me if these companies want the little retail investor to jump in they need to split ot make it feasible. let's say my nephew has $500 saved from shoveling driveways and raking leaves, whats he going to do buy 5 to 3 shares of any of these stalwarts? Nippety nope, he needs a split to make it somewhat feasible to sart investing.

    Without the chance for young kids to learn investing playing with wide moat divvy paying blue chips stocks you will not foster a generation used to the idea of slow steady income growth. You will however encourage the swing for the fence penny stock players and the must play risky options to show a return gamblers of this world which will lead to huge swings, decreased confidence in the system, and the small guy getting destroyed by buying less fundamentally sound stocks because "hey at least i can get enough shares that it might make a difference".

    Were I the CEO &/or CFO's of a huge company priced near or over $100 and at historical highs, I would be looking hard at the idea of less buybacks and more little guy friendly splitting.

    Toasty "Spitting and Slipping but no Splitting" 54

    Disclosure: I am long UTX, JNJ.

    Dec 27 10:19 AM | Link | Comment!
  • When The Going Gets Tough The Tough Break Down And Cry!

    I'm calling my shot like Babe Ruth once did. This week is the start of the correction. Why you ask, there has been no definitive taper news. Well we all know it is out there, lurking, like a hungry polar bear and we lay around rubbing our distended bellies with the flippers of well fattened seals......bad things are going to happen to your net worth soon....portfolio shrinkage is on the way...Robert Schiller, he of the Ph.D and Case Schiller Index fame says so, all the headlines say so......sooner or latter we have to accept this will be a self fulfilling prophecy if nothing else.

    So what to do? Sell it all now and hope to time the market? Not me. this feels likely to be a correction not a reversal.

    See we're kind of walking down Bizzarro Wall Street in that the better the economy is looking the more likely we are to pull back, because of the taper worm that has burrowed deeply into our the better the economy is doing the more likely we are to go down but since this is unprecedented tomfoolery we have no sense of how far down it might go and for how long this reverse correlation will last.

    DGI acolytes will cling to the "my drips now get me more shares" wubby which is nice and true to an extent but the unspoken assumption in this is then the market will go back up before i need to sell. Not always true for our older or retired investor friends.

    So here is my plan-review my holdings looking for signs of weakness that might mean any drop is not just an outgoing tide but true fundamental weakness---yes Intel I'm staring art you.

    Look for signs of strength that seem to be saying damn the falling market I am head up anyway-----Yup CSX you go girl!

    Mentally prepare myself to accept some losses while monitoring my daily losses locked in a closet compulsively eating cheesecake.

    and wait....yeah i might shift some $'s from intel to csx or make similar moves but if the reason the market is likely to fall short term is a better economy that should mean jobs and security for my neighbors, then sooner or latter people will shake off the short term, must hold on to my paper gains at all costs mentality that is likely to spur selling at the start of the correction, but I will cling to the old fashioned belief that a good economy is a good thing and a good investment should be bought and held...

    Toasty "standing my ground in a fetal position" 54

    Disclosure: I am long INTC, CSX.

    Tags: INTC, CSX
    Dec 04 10:36 AM | Link | Comment!
  • Re-Dripping WHY Not?

    You know what would be great? An automated ability to drip from 1 stock into others. I honestly don't see why the big brokerage firms couldn't offer an option to drip my KO divvy into JNJ.

    Now of course they are for profit institutions and they would be losing out on my $8.95 transaction fees once I've built up enough cash to make that trade myself and they get nadda on my why not charge a small percentage of the trade?

    Would you pay 1% or $5 if you could automatically redirect divvy drips from one stock to another? I would and I'm frighteningly cheap so I assume people who don't dent their nickels by pinching them as hard as I do mine would.

    I would think Schwab would be able to leverage this product into a pretty marketable tool to steal market share from others. I know I would use it to reduce my overweight condition and relieve me of having to monitor and choose when and where to move the divvys. Just sign on 1 day and say divvys from UTX go to NGG and forget about it...

    Toasty "Any of my 3 followers happened to be named Charles Schwab the 17th?" 54

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: SCHW
    Nov 20 9:29 AM | Link | Comment!
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