Anne: You are one of the best posters on any MB I've ever seen. You're polite and civil to all no matter how stupid their remarks. You ask intelligent questions and provide well thought out answers to others' questions. You write coherent English with generally excellent grammar and punctuation. We need more like you. Muito obrigado!
The fact that GE had to go to Warren Buffett, hat-in-hand, for a bailout says it all. Buffett got a fantastic deal... I think it was 10% at a time when interest rates were in the cellar.
That's not surprising, but I'd be happier if there were new shorts to take the place of those who are bailing out. The longs need a fresh supply of new money to buy back at higher prices. That's what keeps the ball rolling.
You're exactly correct. Immelt inherited a monumental mess. However, if memory serves me, it was Immelt who bought that bank in the midwest that was deep in the sub-prime mortgage business that nearly destroyed GE. Welch was a skilled self-promoter who pumped up GE with nothing more than a lot of hot air. I had a neighbor (now dead) who worked for GE for his entire career, knew Welch, and had a very low opinion of him. He became the plant manager of a glass-blowing plant in Mexico that made light bulbs, vacuum tubes, etc. He was very heavily involved in the design and production of the first vacuum tubes used in the early days of the computer industry. He thought Welch had a way-too-high opinion of himself for someone with almost no knowledge of what GE actually did.
I'm not expecting a great deal from this sale to reach the shareholders. When GE sold NBCUniversal, they got a ton of money, none of which ever did anything for GE shareholders. From what I can see, it was mostly spent on Alstrom. I still have some serious qualms about that purchase. French companies are burdened by heavy labor and business laws that make ours look downright permissive by comparison. If you look at how much GE stock is owned by members of the Board, that sheds a lot of light on the problem. Let's just say they don't eat their own cooking.
I doubt that Immelt is selling his stock; that would immediately be public information for all to see. The feel-good moment will almost certainly be followed by profit-taking by disgruntled longs, and it'll be back to business as usual. GE has been a massive disappointment, but there's still a chance the divestiture of the financial assets will end up being a positive. It all depends on how they spend the money. Another Alstrom will be a disaster. Giving it all away to the stockholders will end up accomplishing nothing of lasting value. I still believe Immelt is on very thin ice and could find himself out of a job very soon if he make another wrong turn. He's been in over his head from the beginning, and the Board of Directors is made up of some of industry's most incompetent and over-paid members. I sold most of my position late on Friday with the idea that I might get back in if the stock drops back to around $23-24. On second thought, I'm not so sure.
Dr. Frost was born in 1935. That makes him 79-80. That's not what I'd call "mid-80's". He has (that's present tense) 2 older brothers who are 15 and 16 years older than him. I'm 74 and not dead yet. So.... what's your point?
Take a look at Dr. Frost's purchases on Friday. Go down the list and group the blocks in order. 1600+200=1800. 100+400+1300=1800. 300+700+100+700=1800. Lastly, a block of 1800. He loves chai.
I'm not afraid of taxes or gains, but I try to avoid/defer taxes if at all possible. I'm certainly NOT afraid of gains, but I strongly prefer long term over short. At my age, I can afford to wait and let my heirs take the gains at the stepped up cost basis after I die. Over more than 50 years of investing, the biggest mistake I've made over and over has been selling winners when they were just getting started and leaving tons of money on the table. I avoid "fad" stocks in favor of those with long-term staying power. (Think Y2K, solar, fuel cells, etc. Even shale oil was a huge fad back in the 1960's before there was an economical way to gather it.) I'm not sure about this latest photo technology and what might come along to replace it as the demand soars. When it comes to furious competition for market share, this strikes me as something that could turn out to be a fad. The Blackberry (RIMM) was a fad until Apple came along and crushed them with innovation and clever marketing and packaging. No matter how wonderful any technology seems today, something will come along tomorrow that is even more wonderful. When it comes to technology, nothing is forever. That said, I agree that AMBA has the lead, and their technology has lots of room for growth - until it hits a brick wall.
You seem to have changed your tune from your post on Jan 12 that said:
"Buying MMP on the dip how's that working for you
Well, in fact buying the dips has worked extremely well for me. How 'bout you?
Take a look at what the split did for EPD unit price, and perhaps you'll understand why splits are meaningless. MMP, without a split, has performed far better than EPD with a split.
I'll stick with the age-old adage to "ride your winners, and dump your losers." AMBA has been a huge winner. If you've been in for any time, you have a gonzo profit that will cost a ton of $$$ in taxes thereby leaving you with less $$$ to reinvest somewhere else. I tend to stick with whatever is working. This thing is not cheap, but it will look cheap in the future after it has gone higher.
After the euphoria of the announcement of the divestiture subsides, it will be interesting to see what follows. With rumors of Immelt's demise as CEO, it shouldn't have been a big surprise to see a move to boost the stock in a big way. The only surprise was that the announcement was actually made in the middle of the day before the biggest part of the rally took place. Anyone who was paying attention had a great opportunity to load up late on Thursday ahead of the big move. (I took advantage by canceling a big open sell order I had in for many weeks.) What happens next is anyone's guess, but GE has made dozens of false starts only to fall back in a pathetic heap. Jack Welsh was polite in his endorsement of the announcement, but he sounded less than sincere. I'm sure it irks him to see the part of the company that he put most of his time and energy into building being divested as being a drag on performance. Did Immelt take this move on his own, or did the Board force it down his throat? We'll never really know for sure. I just hope they don't squander this opportunity to get GE stock out the doldrums by going out and doing another Alstrom. In the past, such as when NBCUniversal was sold for a ton of money, the shareholders got nothing. This was clearly a move of desperation to get GE out of the mid-20's where it has languished for years. Hopefully, this time could be different, but only time will tell.
ETP is one of the weakest of the MLPs. Whatever the cause, it's disconcerting to say the least. I wanted to be out before the ex- date, but it doesn't look like that will happen. The thin market is hurting.