I agree but this vote, if it passes only requires the board to explore the possibility. The idea that they wanted to strike the question from a shareholder vote and the comments from investor relations suggesting that they didn't think it was necessary are not exactly inspiring.
Not going to happen unless an activist or Buffett gets behind this effort.
Yes they sure do need to go. Break up this mammoth of a company. We need an activist investor in here fast. Inexcusable failure here....
is 250M shares at ~$16/share. 3 days average trading volume. The board needs to start looking for new management. Its inexplicable that Mgmt did not nail both qualitative and quantitative reviews. I'd love to see an activist investor jump in here and argue for the breakup of the company. The fact that they didn't nail both tests demonstrates that's it too big to manage - effectively by the current management.
I did and I didn't. I was focused only on CCAR but I do recognize that these dividends are payable. What are you thinking will happen this afternoon?
An additional 0.04 dividend representing a sum of 0.09 and a 6B buyback. That would represent 3.6B in annual dividends and, of course 6B in buy backs which I think is well within reason but probably strong considering the recent 10K. My preference would be buybacks vs. (taxable) dividends.
I noted that both Forbes and a few posters listed the ex-div date as 2/14. I looked back at the earnings notes and the EXC Investor page and the ex-div date is listed as 2/19. Am I missing something here? Thanks.
At the close today, the aggregated open interest of the Feb 26 through 35 strike price saw 31,007 contracts on the call side with 39,632 on the put side. The heaviest concentration around the 30 - naturally.
Focusing on today's action only, a whopping 14,241 calls were purchased vs. 7,398 puts for the same strikes mentioned above.
What does it all mean? I have no idea. Do the purchasers of the 14,241 calls know something or are they playing the recent momentum?
I will say this, based on ConEd's performance, mediocre or poor results combined with a 25% or more dividend cut could very well be cause for a sharp sell off. I would imagine this is exactly what those 39,632 put holders are praying for.
We will know much more early tomorrow morning.
I completely agree and have put my money where my words are. This small pullback can be attributed to cautious analysts comments and little if anything else. I expect GS to be the benefactor of an expanding multiple. Let's not forget, these guys know how to make money and will continue to do so. The fact that they reduced their costs through compensation reductions is a signal that they "get it" which likely means they will not be in the cross hairs when, if, the politicians turn their attention back to the banking industry. I see $160+ before the end of May. We are in a good place, just need to weather the storm here. The clouds are clearing as I write....I hope.
If Mgmt eliminates the uncertainty around its dividend, reports respectable earnings from each business unit and really shows progress in slowing (or eliminating) the pace of "one-time" charges I think this stock goes higher - that is a pretty low bar for EXC to hurdle in my opinion.
As for the dividend, I'm not concerned whether they keep the same rate or reduce it, certainty is most important. EXC pays a higher dividend than any of their peers so a reduction is in order. This Mgmt team has had a tough year and I think they are up to the task of getting things back on track starting with this earnings call.
If not, heaven help the guys at the top of the org chart.
April 30 calls look cheap at .60-.65 with open interest peaking at the 32 strike price. This could work out nicely if Mgmt comes through.
I think this stock is headed to ~63 before Jan 31st. If at anytime the S&P rises to 1500-1550 it may run to ~67 or more. Take a look at how this stock has done in January alone over the past 5 years. It has been remarkably consistent in good times and bad.
Disclosure: I am holding Feb13 57.50 calls.
If this report leads to lower equity prices they will be short lived and represent a buying opportunity. A close look at the fundamentals shows the company is performing well. With the CEO anticipating record production in 2013 I think the future look really good. I'm a buyer on any weakness.