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giorgiolb

giorgiolb
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  • Beware The False God Of The Dividend [View article]
    Bruce,

    There are obsessives on both sides of every argument and in every style of investing.
    Nov 22, 2012. 02:16 PM | 2 Likes Like |Link to Comment
  • The Real False God Of Dividends [View article]
    Disillusioned,

    There are good dividend policies and there are bad dividend policies. There are good buyback policies and bad buyback policies. There are good management policies and bad management policies.

    Holding a huge cash hoard (as many companies do) is not in my opinion a good policy. Holding cash might improve book value, but that doesn't always translate in higher share prices, especially since today's money market returns won't do much to improve earnings.
    Nov 22, 2012. 02:05 PM | 4 Likes Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    Yes, I understand all that.

    I also understand that when I invest in a company as a shareholder in a company, I want to share in that company's success. I'm not sure why this is a problem.

    You keep citing profits are lost for expansion or to pay down debt, and yet my common shares (when issued) were used to fund earlier expansions and pay down debt. There's no law that says a company has to go public. They can always buy back my shares and go private.
    Nov 21, 2012. 07:36 PM | 1 Like Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    I understand all that.

    So do you advocate stiffing the preferred stockholders as well? How about the bondholders? And just think of all that money which could be hoarded if management decided to stop paying the employees a weekly paycheck and kept their earnings until they either quit or retired.

    Sounds silly, eh? , but that's what you're advocating . Current COMMON shareholders wouldn't get to share in the profits until they sold their shares and became FORMER shareholders, assuming the stock price went up from time of purchase, and that's not always the case..

    Most young, growing businesses DON'T pay dividends because they are in that growth and expansion phase.

    But sooner or later, when there's a Starbucks or Walgreens on every corner and in the middle of every block, expansion no longer makes sense. Returning some of the profits to shareholders makes sense.
    Nov 21, 2012. 05:41 PM | 1 Like Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    I really don't understand your argument. Nobody's asking management to forego growth or take on additional debt..

    But when a company is successful and generating profits far in excess of what's needed to do those necessary functions, then paying the shareholders seems quite reasonable. Shareholders take the risks and should share in the success.
    Nov 21, 2012. 05:16 PM | 1 Like Like |Link to Comment
  • President Kennedy Responds To Paul Krugman [View article]
    Paco,

    The movie would still get made. Brad Pitt would just move to another country with a lower tax rate.
    Nov 21, 2012. 01:54 PM | 1 Like Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    All easier said than done. When it comes to human behavior (stock markets) little is ever definitive. Repartee and stirring anecdotes however are always entertaining AND preferable to dull, boring, essentially unprovable hypotheses in these point & counterpoint debates.
    Nov 21, 2012. 11:56 AM | 1 Like Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    Agreed, the longer term outlook is what matters, that said, I try to avoid falling knives. I have no disagreement with your strategy, I use a variant of it myself, just to a lesser degree.
    Nov 21, 2012. 11:47 AM | Likes Like |Link to Comment
  • The Real False God Of Dividends [View article]
    AgAu,

    Good point. On the NYSE the specialist sets the opening price based on the order book, not on the closing price.
    Nov 21, 2012. 10:47 AM | 3 Likes Like |Link to Comment
  • The Real False God Of Dividends [View article]
    CounterP,

    off topic, but welcome back. I hadn't seen you around for a few weeks. Hope all is well.

    G.
    Nov 21, 2012. 10:32 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Jack,

    One vote = one pitchfork. Bring your own torch. Life would be so wonderful if it weren't for those other guys.
    Nov 21, 2012. 10:20 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Jack,

    Asian kids disprove the oft-repeated canard that we don't spend enough on education. Do you really want to go there?
    Nov 21, 2012. 10:16 AM | Likes Like |Link to Comment
  • I Don't Understand Dividends [View article]
    george,

    I only sell puts in stocks I want to own, and HPQ isn't one of them.
    Nov 21, 2012. 09:45 AM | 1 Like Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    Life is but a string of anecdotes.
    Nov 21, 2012. 09:44 AM | 1 Like Like |Link to Comment
  • I Don't Understand Dividends [View article]
    George,

    I've owned both RIG and FCX for several years That's several liefetimes compared to your typical holding period... (that was a joke!)

    There are always exceptions of course (CEL suspended its dividend and the stock recovered from freefall, for example) , but most stocks which cut or suspend dividends don't fare well.
    Nov 21, 2012. 09:41 AM | 1 Like Like |Link to Comment
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