ABB has never really made money. Oh, sure, if you bought at a low and sold at a high you did OK. But, all it has going for it is a 3% dividend. Europe is going into a recession. Dump this stock.
I hope not, I got back in at $49. I sold my original position at $53. BP is making a ton of money per share right now. Yes, they have problems, but the cashflow is enormous.
I took a big position when BP dropped to $40 after the oil spill. It took time, but it is now at $53. Its evaluation is now less than the other oil companies but not by much more than $20 to $25 billion. This is the approximate cost of the oil spill. I, therefore, think that BP is now fairly evaluated. It is time to sell. I think the other oil companies will do as well and there isn't enough discount in BP to make up for the legal risk of the oil spill.
remember yahoo. We will look at this $100/share offer a year from now and shake our head. I would take this money and run. But, if I am an executive at AZN and might loose my big payday, sure I am against it.
1. Global temps, according to my reading, have perhaps increased by 1 degree F over the last 100 to 150 years.
2. Why the temp has increased we do not know. The temp has fluctuated more than 1 F over history within the span of a century before. The last occurred when it cooled in the 1700 -1850 period (the "little ice age") and when it warmed during the greadt "medieval warming period" (when greenland was actually green. So, a 1 degree F change within a century is well within historical norms.
3. The consensus that the earth's temp will rise by 1 degree F has, indeed, been the predictions of global warming models over the last generation. However, the empirical evidence does not support the theory. Indeed, the last 15 years has seen no rise in temperature. Remember, Al Gore's little movie "no ice in the arctic in five years"?
4. I do not believe in any action that needs to be taken. Anything that prevents the use of fossil fuels will be disasterous for the economy and result in a massive increase in poverty and all of the ills that come with it. I am not willing to do that based on a "maybe" with no empirical evidence.
another problem is that a lot of rail capacity is being taken up by shipping crude. This makes Buffet a lot of money, but it is bad for the economy. Until we get pipelines built, this will be a problem. The rail companies will not invest in more capacity to ship crude because they are not sure if this is permenant or not.
Maybe so, but I have heard that mantra for a decade (patience). ABB has not been a good investment. And, now, selling off pieces of their recent acquistion at firesale prices? What the heck is their longterm strategy.
Yes, a little curious. They bought T&B at a premium and are now selling parts off at firesale prices? Very confused strategy.
Integrating something you purchased is quite hard. I read a study once and it said that 70% of all acquisitions are unsuccessful. Part of the problem is that what makes this niche players successful is their cultures and that is the first thing ABB gets rid of. I used to work at Bailey Controls. What made it successful was its lean managment structure and tightly couple R&D with applications. ABB came in and put in multiple layers of management and moved R&D to Europe. They pretty much discontinued the US developed products and R&D staff. The result? Lost sales, lost growth. What made Bailey attractive was the very thing that ABB got rid of. Pretty typical in buyouts.
When BP hit $40 I bought. I thought, with Oil at $100/bbl, how can this company longterm loose? Well, for a couple of years, the American legal system kept it down. Now, I think $100/bbl oil has finally overpowered the legal system. I think this goes to $60/share.
Oil at $100/bbl will "cure" this stock. Just have patience. We will be at $70 by May. My guess is that we will be $85 by October.
the future contracts of oil have just dropped below $80. The market thinks that with Libya coming online that oil prices are going to fall. Thus, oil is not as good a bet as it once was.
As I indicated in October, I thought TAL was getting pricey. I sold half my position at $46 and the other half at $49. Today, the stock is back to $45. I am trying to think when it is time to get back in. I am thinking about $40 to $42.
I mispoke, I meant that companies don't want to send oil by rail as pipelines are much safer.