Rather than buying PRPFX, you are better off holding its components, a-la Harry Browne. Buy 25% VTI, 25% TLT, 25% GLD and 25% SHY. I did this and am up 10.7% through November 30. And distributions are minimized.
Over the weekend, VZ Director-level and above employees were given their long-term incentive awards. Some of that came in stock. Today is the first day that employees can sell, and it looks like they are doing just that.
I have read several stories quoting VZ CEO Lowell McAdam who tries to explain the reasons behind the acquisition of Vodafone's partnership interest.
First, let's start with what the deal is NOT about. According to McAdam, the deal is not about synergies, since VZ management has recently taken steps to consolidate wireless and wireline functions in the overall business.
Also, the deal is NOT about control, since VZ already owns 55% of the JV and pretty much does what it wants to do anyway.
So eliminating what the deal is not about, then what is it about? Well, two thoughts here. First, the deal is an all-in bet on the US market. McAdam apparently believes there is still growth opportunity in the US even though pretty much everyone already owns a cellphone. He has to see the opportunity for growth through new services and products over the existing wireless network. Hmm.
And the deal is also all about ego. VZ is loaded with executives who believe their's is bigger than the next person. McAdam wants to walk around and say I own the biggest market in the world.
Assuming the deal closes, he is correct. But it remains to be seem whether the growth opportunities will pan out.
VZ's share price has been driven up by speculation that VZ will buy VOD's partnership interest. I do not see that happening when you consider that 70% of VODs profits come from the partnership.
There is not much of value in VOD without the partnership profits. Sure, they can buy somehting with all that cash, but I am not sure what that would be.
Rather than VZ buying VODs partnership share, we should consider VOD acquiring VZ. This would be an interesting twist.
Amen to that.
So my first REIT investment in a company that had not reduced or suspended its dividend in 50 years...
Do I have the touch, or what?
VNO-E shares have declined about $0.70 or so over the past week on a single rumor that they will be redeemed in August.
Quantumonline.com reports "A QOL user's broker has informed him that VNO-E has been called for 8/16/2012. We can find no information to confirm the call but assume that the call information is correct."
I called VNO's Investor relations group and spoke with a very unfriendly woman who said she has no information to report on series E shares. So, is the rumor just a gimmic to lower the purchase price for an enterprising investor?
Today was a strange trading day, WRE opened at $28.58. I tried to buy at $28.50 with no success. So I upped the ante and was successful at $28.55. Then it slid down to $28.36 and then worked its way up to $28.82 before closing at $28.57.
Seems like wide trading range for single day with no apparent news. Anyone have any thoughts on why?
Check VZ's price movement over the last two weeks of every year. You will see that it typically increases significantly. This is due to VZ either buying back its own shares, or the VZ 401(k) plan buying VZ shares, in order to drive up share value. Why? VZ management's long-term bonus is tied to yearend share price.
Don't see a strike. The general public will not support a strike. And I do not see state governors supporting one either.
Union employees will not walk for fear of losing their paycheck in a very weak ecomony. Especially if their spouses may have already been laid off from other companies.
Unions will likely work without a contract for an extended period and make management's life difficult. There will be rumors of a walk out causing management to go to their strike assignments and sit for a couple days doing nothing. Posts elsewhere on these boards mention "leave your brain at home" days (meaning the unionized workfoirce will suddenly forget how to turn a screwdriver), "work-to-rules" and other such nonsense.
What will be interesting is how the company reacts to working without a contract. Will they unilaterally change work rules to make the business more efficient? Or will they adhere to the terms of the expired contract? What happens here will give me a sense of how confident the company feels about prevailing on the contract terms.
Wow! That was quite a rant.
Let's separate your points. The first says that corporations are making money hand over fist. Yes, VZ is making money but most of that money is coming from the wireless division. The landline division has been losing customers for years with no end in sight. Landline has been making less and less money. Thus, it is reasonable that the labor unions, who work in the landline division, begin to pay their fair share for benefits and pensions.
Your second point is that management gets large salaries, corporate jets and lots of other stuff. Well, yes, there are some senior managers in VZ who get those tings, but the typical management person does not. They work payheck to paycheck just like a typical union employee. The difference is that management employees receive no pension (but have a 401(k) plan that they pay in to), pay for their medical benefits and do not have use of the corporate jets.
Your last point was something about settling for crumbs. The typical union employee in the landline division makes over $30 per hour, overtime rates after 37 hours and double time after 49 hours. That is in addition to a no-layoff clause, and fully paid pension and benefits.
So I do not buy into your comment that union employees are receiving crumbs. They are way over-compensated in a dying landline business.
Time for the unions to face reality and agree to reasonable concessions before the landline business goes under completely. Or maybe that is the union objective?
I read the information on the CWA website. What VZ proposes sounds very reasonable in light of current economic conditions.
Quite frankly, that ANY labor union is currently receiving these tyupes of benefits is outrageous.
I believe it is time for the CWA to contibute their fair share towards these benefits.
All the volume is in anticipation of the earnings release in April when, it is hoped, VZ will announce the number of iPhones sold for their network.
If volume meets expectations, then VZ may see a small increase, as I believe the current price expects it.
If not, then VZ will take a beating.
Place your bets...
I have owned DHR since 1996 - a couple of hundred shares - and have enjoyed the price growth. My concern is not what happens in the stock market - that will impact all stocks.
My concern is what happens when DHR runs out of acquisitions. Let's face it, this company grows by acquisition - not internal growth.
Once that stops DHR is in trouble - in my opinion.
If gold prices decline, do you believe the other fund components will be able to offset that decline? More or less?
I am undecided whether to place any money in this fund in lieu of a money market or a very short-term bond fund.
The real reason for the price increase is due to executive long-term compensation payouts. VZ issues both performance and restricted share units as part of its compensation plan. The performance portion is based, in part, on share price at yearend.
This increase follows the same pattern in 2008. There is a fast run-up in share price at yearend, followed by the inevitable decline thereafter.
Having there web site down for so long is very odd. I called and was told that the site was being updated for mandatory SEC disclosures. But the "normal" approach for adding material is to make the chnages off-line and then move it into production. I do not understand why they brought the entire site down for what, almost 3 weeks already.
This does make me uncomfortable about this fund family.