clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 27, 2006
- Messages
- 7,733
I guess my $11 puts on GE will be exercised I got a bit more than $1 for them so I guess I am underwater on GE again...
The question is what the market's reaction will be at that time. I'd say there's a good chance it will pop up on the news. But I don't want anything to do with anything financial these days. Too much darkness lurks in the back rooms there.
Yep I basically agree about the div cut reaction, but who knows. Look what happened to the NY Times on Friday. They slashed the div and the stock was up 16%! It doesn't mean that it'll stay up of course. And it's still only at $4.07.Agreed on the last comment. As for what the stock would do on a dividend cut, I think it depends on two things: (1) how deeply it was cut and (2) whether or not the market believed that was the last shoe to drop. They could cut the dividend 50% and if the market believed that was the end of it, GE would probably rally sharply.
But more likely, as with everything containing financials, the uncertainty of what toxic waste is in the black box will likely keep it depressed.
It's being reported that GE is cutting the dividend to 10¢ per share starting in the third quarter. That's still a 4.5% yield at the current price. The question is, is there another shoe waiting to drop in a market that expects shoes to keep dropping forever?
Got to love the CNBC Pump Monkey Banshees. They are saying GE should be rewarded for "their courage" in cutting the dividend.
Jimmy Jones Cramer just said that he just bought GE for his trust and predicts from here it will be the best performing DOW stock for the rest of the year.
10 minutes of this happy talk back and forth and they never mentioned once they work for GE.
The reason that people have to state they own, work for, etc, etc, is because of Cramer pumping his company, The Street, when he worked over in 2000 and got fired for doing it. De ja vu.
I don't listen to Cramer, he's just noise. But, when Immelt said "The dividend is safe, we have $40 billion in cash, the dividend is SAFE for 2009".......Well, I guess we just saw that the GE BOARD is now calling the shots, and Immelt should be packing up his cradboard box, because he's toast...........
This cut, although not totally unexpected, was bigger than I thought the worst case cut would be. BTW, I just calculated that this will knock about $0.09 off the annual dividend of the Vanguard S&P 500 index fund (VFINX). Last year VFINX paid a dividend of $2.50 per share, so this will be a significant cut for index fund holders, as well.
Well, if you don't do anything, wouldn't this be a sign that we have hit market bottom and that we should rush out and buy things?I actually expected they would wait until the earliest possible time to cut the dividend and not make Immelt a liar, i.e the end of the year. Hopefully the .10 dividend is safe; famous last words.
My track record is starting to surpass Ziggy's as contrarian market indicator.. Unfortunately for you all I have no plans to buy or sale any securities in the immediate future, but when I do I'll let you know. Maybe I should start a clifp contrarian indicator newsletter. Each month I'll put out my stock selections and my readers will do the opposite.
Got to love the CNBC Pump Monkey Banshees. They are saying GE should be rewarded for "their courage" in cutting the dividend.
Jimmy Jones Cramer just said that he just bought GE for his trust and predicts from here it will be the best performing DOW stock for the rest of the year.
10 minutes of this happy talk back and forth and they never mentioned once they work for GE.
The reason that people have to state they own, work for, etc, etc, is because of Cramer pumping his company, The Street, when he worked over in 2000 and got fired for doing it. De ja vu.
So when is GE a buy?