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  • General Electric: Investor Sentiment Has Turned Bullish [View article]
    I have yet to see how giving up $.40 in earnings will benefit GE, especially if the resulting reduction of shares only contributes $.25. Where did the rest of the money go... debt reduction or transaction costs or ...?
    Apr 17, 2015. 04:22 PM | Likes Like |Link to Comment
  • The Winner Of The Cola Wars Is... [View article]
    I was disappointed you didn't compare KO to PEP because every number I look at gives PEP the upper hand. Perhaps KO has a more durable balance sheet which might protect KO shareholders better in a down market? Anyway the title led me to believe there would be a comparison here. Any time you want to do that I would enjoy reading it.
    Apr 17, 2015. 03:04 PM | Likes Like |Link to Comment
  • AT&T Pays To Be Defensive [View article]
    SOME politicians may eventually wake up to the true causes of wage deflation and resulting income inequality and come up with solutions other than "higher minimum wages" or "lower taxes to stimulate growth". If those solutions include removing tax and regulatory incentives to automate and offshore labor, then the premise for wage deflation may eventually fail. I actually heard Marco Rubio mention this recently. Slowing the pace of automation to a more sustainable rate would hurt productivity growth and corporate earnings, but in the long run it's probably best for capitalism.
    Apr 13, 2015. 05:40 PM | 1 Like Like |Link to Comment
  • GE Gets Out At The Top [View article]
    Yes - the explanation is that GE is becoming a bit more "aggressive and shareholder friendly" at the expense of bondholders. GE corporate debt is downgraded to the same rating as GE Capital, which is ironic since they want to distance themselves from that business. As such GE joins the pack of companies that are screwing bondholders to please activist investors. I guess they learned well from their mentors at the Federal Reserve.
    Apr 10, 2015. 07:19 PM | 1 Like Like |Link to Comment
  • GE Gets Out At The Top [View article]
    Thanks - hopefully this is in no way comparable to WaMu in 2009 though! I'm assuming some day it would simply be renamed to something like "Blackstone Capital Bank" or some other entity depending on who ends up owning the accounts. As long as they remain well capitalized (which GE Capital Bank is) we're good.
    Apr 10, 2015. 05:06 PM | Likes Like |Link to Comment
  • GE Gets Out At The Top [View article]
    Does anybody have any idea what will happen to GE Capital Bank and existing GE Capital CDs, will those accounts still be managed by GE Capital or one of the acquiring companies?
    Apr 10, 2015. 04:34 PM | 1 Like Like |Link to Comment
  • MetLife: Deep Insurance Value For Bargain Hunters And A Dividend Yield Approaching 3% [View article]
    Question about insurance companies - if most of their assets are in low-yielding bonds, won't rising rates also reduce their book value? Is that the reason why insurance companies trade at a discount to book value? It seems like the improvement to earnings would be offset by reduction of book value when rates finally do begin to rise. However, I wouldn't expect rates to rise much until European bond rates rise, since raising rates unilaterally would strengthen the dollar and hamper US economic growth. I own MET for the dividend but see rates as neutral ( which is better than some income stocks that will definitely be hurt by rising rates).
    Apr 10, 2015. 01:34 PM | 2 Likes Like |Link to Comment
  • Qualcomm: Still A Cash Machine, Samsung-Based Negativity Overblown [View article]
    I think the article discounts the lost business from Samsung (which will continue since they are developing not only chips but internal R&D expertise that will pose an ongoing threat), without talking about how this business will be replaced. Sure, the market may have already discounted the lost business, but where will the revenues come from going forward? Tech value stocks are a tough way to make money, unless the dip in price is very temporary and they have great management to pull them out of the slump.
    Apr 9, 2015. 11:50 AM | Likes Like |Link to Comment
  • Synchrony Financial: Separation Expenses Will Impact Q1 2015 Earnings [View article]
    My understanding of the SYF spinoff - if you opt out of the share swap, you end up with a larger share of a smaller, more focused GE. You don't get nothing; it should be a neutral transaction if it is done correctly. If you swap shares, obviously you will end up with fewer shares of the smaller GE plus new shares of SYF, also a neutral transaction. I would like to understand the tax consequences of both choices when the time comes.
    Apr 2, 2015. 12:32 PM | Likes Like |Link to Comment
  • GE to buy stake in Enel's U.S. renewable assets for $440M [View news story]
    Why would you buy wind farms when low carbon fuel prices are putting them out of business? One other commenter (on the earlier wind farm deal) suggested GE Capital was forced into deals like this to recoup loans for generation equipment that in this case ENEL could not repay. These deals make me nervous - is this political or just foolish (or both)?
    Apr 2, 2015. 11:59 AM | Likes Like |Link to Comment
  • A Pre-Earnings Update On Gilead [View article]
    DRx, do you know if the negotiated price for Sovaldi and/or Harvoni in Europe is set in Dollars or Euros? That could significantly affect results too, I think?
    Apr 1, 2015. 11:34 AM | 3 Likes Like |Link to Comment
  • Finger Lickin' Value Down At Sanderson Farms [View article]
    Thanks James Sands, so I guess the article assuming fair value based on current earnings is flawed and also the 100% rating on predictability of earnings is flawed, since 10% growth is not a credible forecast except maybe over a very long time range.

    BTW, that Stub hub ad is really chewing up my little laptop,please makeit stop , thesetypeos arresul t of keyboarderrors duetothestubhub ad.
    Mar 31, 2015. 12:55 PM | Likes Like |Link to Comment
  • Is GE A Top-Notch Income Stock? [View article]
    I don't see mentioned in articles about GE that its exposure to energy is not just GE Oil&Gas, but also its many businesses related to demand for alternative and renewable energy, which is negatively affected by low oil and gas prices. Does the business hedge for this? I started thinking about this when I saw news that GE is acquiring the operations of a wind farm ( which seems more likely a foreclosure on a money-losing business. Still long GE but nervous.
    Mar 31, 2015. 12:40 PM | Likes Like |Link to Comment
  • Finger Lickin' Value Down At Sanderson Farms [View article]
    I have a question I can't seem to get answered. Why do some analysts forecast a 30-50% decline in earnings for 2016? I see the mean forecast earnings decline from $11.38/share in 2015 to $7.40/share in 2016. Is that because of surplus chicken supplies or some regulatory change, or related to avian flu and possible loss of some percentage of their chicken inventory?
    Mar 31, 2015. 12:16 PM | Likes Like |Link to Comment
  • Bristol-Myers Is Playing Chess, Gilead And AbbVie Are Playing Checkers [View article]
    SE, you picked a good title to draw readers, but I think GILD and ABBV are also playing chess with each other, just on a separate chess board. These are all smart companies here, after all.
    Mar 25, 2015. 04:36 PM | Likes Like |Link to Comment