U.S. Economy In Shambles

Excerpts from a Bloomberg article on Warren Buffett’s opinion of US Economy. Billionaire Warren Buffett said the economy will be “in shambles” this year, and perhaps longer, before recovering from the reckless lending that caused the worst “freefall” he ever saw in the financial system. Stocks and the economy will rebound, and the best days for […]

Citigroup

Citigroup is down to $1.50 a share amid an agreement with the Federal government to convert 25 billion in preferred stock to common stock. Citi also announced that they will not be paying a dividend. There is no reason whatsoever to own Citigroup stock. The stock is worthless. if you want to see Dow’s future, look at […]

GE Slashes Its Dividend

General Electric (GE) is cutting its dividend for the first time since 1940 from $1.24 per share to .40 per share. GE is cutting its dividend 68% after numerous comments from GE about how the dividend was safe  through all of 2009. The stock has since slumped to $8.50 per share. General Electric is trying to save […]

Warren Buffett’s Moves

Warren Buffett trimmed shares of Johnson & Johnson,Proctor & Gamble, US Bancorp, ConocoPhillips, UnitedHealth Group and CarMax. Buffett bought shares of Ingersoll-Rand, Eaton, Burlington Northern, NRG Energy and Nalco. Buffett seems to be moving from a defensive position selling the consumer staples to a more offensive position buying industrial and electrical companies.

CNBC: A Bunch Of Corporate Shills

Day after day CNBC hosts cry about free market capitalism, lower taxes and corporate bonuses. From Larry Kudlow to Dennis Kneale to Michelle Caruso Cabrera to Melissa Francis to Rick Santelli; they sit by and cheerlead for Wall Street excess. They are outraged when the government comes up with plans to try to keep people in […]

Metals Look Cheap

US Steel (X) is looking attractive at $22.  The steelmaker is expected to earn $5.40 per share in 2010 which means the stock is trading at 4 times next years earnings. The industry average for steel companies is 7.5 which would value US Steel at $40.50. Alcoa (AA) is interesting at $6 per share. Analysts expect .60 […]

Staying Put

I haven’t really made many moves over the past two weeks. I have only been adding to two stocks in my short term portfolio: General Electric (GE) and Aflac (AFL). I have been buying General Electric at $9 and $10. I bought Aflac in the low 20’s and believe that the insurer is severely undervalued. […]

Bank Dividend Cuts

JPMorgan Chase (JPM) cuts its annual dividend from $1.52 to 20 cents per share today. JPMorgan is preparing for a longer recession and double digit unemployment. JPMorgan has been deemed to be in the best financial shape of the other major banks. In the current marketplace that is like having the best seat on the Titanic. Banks are […]

Interesting Week

This should be an interesting week. The Dow Jones is at 7300 which is its lowest level since the mid 90’s. Financial stocks as a group are beaten down and the question is, Can they continue to go lower?  The government is reportedly thinking of taking a larger stake in Citigroup. The government is expected to […]

Jobless hit with bank fees on benefits

Interesting article by Christopher Leonard, AP Business Writer. For hundreds of thousands of workers losing their jobs during the recession, there’s a new twist to their financial pain: Even as they’re collecting unemployment benefits, they’re paying bank fees just to get access to their money. Thirty states have struck such deals with banks that include […]