BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Does General Electric have an adequate fire break?]]>http://www.bloggingstocks.com/2009/03/05/does-general-electric-have-an-adequate-fire-break/http://www.bloggingstocks.com/2009/03/05/does-general-electric-have-an-adequate-fire-break/http://www.bloggingstocks.com/2009/03/05/does-general-electric-have-an-adequate-fire-break/#commentsFiled under: , , , , , , ,

My friends and colleagues have been getting an earful from me lately about establishing economic fire breaks deep into 2011. I gave one of my investment partners a large Post-it simply stating "Fire Break 2011," which is on the wall right between his phone and computer.

We have had stories about General Electric (NYSE: GE) almost daily on our site, most of them are positive about the stock being a value, mine among them. The problem is that if GE was a value two months ago, and two weeks ago, and two days ago -- is it more of a value now that it is priced lower still? More on that later...

Continue reading Does General Electric have an adequate fire break?

Does General Electric have an adequate fire break? originally appeared on BloggingStocks on Thu, 05 Mar 2009 10:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAA ratingAaaRatingcashcashfloweconomic fire stormEconomicFireStormfeaturedFirebreaksGEGeneral ElectricGeneralElectricrecessionSheldon LiberSheldonLiberThu, 05 Mar 2009 10:50:00 EST<![CDATA[Time to bottom fish AES?]]>http://www.bloggingstocks.com/2007/07/27/time-to-bottom-fish-aes/http://www.bloggingstocks.com/2007/07/27/time-to-bottom-fish-aes/http://www.bloggingstocks.com/2007/07/27/time-to-bottom-fish-aes/#commentsFiled under:

AES Corporation (NYSE: AES), the emerging-market power generation company, has had a tough few months, declining from $24 to $20.50 -- a big decline for a company with steady and large cash flow generation.

The stock's weakness began when its multi-year earnings guidance was a little lower than expected. Another reason for investor nervousness is that in the last liquidity crisis, from 2000 thru 2002, the stock got crushed as the company suffered from a seriously leveraged balance sheet with concerns about bankruptcy being high.

However, this time around, the company has considerably less debt and generates considerably more cash flow. Also, emerging markets around the world have an even greater understanding that they must place an emphasis on power generation if they want their economies to improve.

Having dropped 15% during the past month, it may be time to consider bottom fishing in AES. The stock has been trading nicely between $20 and $24.

Time to bottom fish AES? originally appeared on BloggingStocks on Fri, 27 Jul 2007 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aesaes corpAesCorpbottom fishBottomFishcash flowCashFlowrevenueFri, 27 Jul 2007 11:30:00 EST<![CDATA[Correction in UAL leads to good buying opportunity]]>http://www.bloggingstocks.com/2007/05/08/correction-in-ual-leads-to-good-buying-opportunity/http://www.bloggingstocks.com/2007/05/08/correction-in-ual-leads-to-good-buying-opportunity/http://www.bloggingstocks.com/2007/05/08/correction-in-ual-leads-to-good-buying-opportunity/#commentsFiled under: , , ,

Airlines stocks are entering the seasonally strongest period, after having a pretty good correction. It looks like a good trading opportunity.

One stock we have blogged about in the past with good success has been UAL Corporation (NASDAQ: UAUA). UAL has had a serious correction, dropping from a January 2007 high of $50 and is now around $35.50.

What is attractive about UAL is that it has a strong franchise name and a boat load of cash and little debt. Finishing up the first quarter with $4.2 billion and just $1.2 billion in balance-sheet debt.

Operating cash flow increased by 38% from the first quarter of 2006 to approximately $626 million.

While there are some capacity issues for the most recent quarter, buying a stock with $4.2 billion in cash, balance-sheet debt of $1.2 billion and generating $626 million in OCF, is just too cheap to pass up. Look for United to revisit its $50 higher.

Correction in UAL leads to good buying opportunity originally appeared on BloggingStocks on Tue, 08 May 2007 11:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cash flowCashFlowearningsopportunityUAL CorpUAL CorporationUalCorpUalCorporationUAUAUnitedUnited Air LinesUnitedAirLinesTue, 08 May 2007 11:10:00 EST<![CDATA[In support of Home Depot - my response]]>http://www.bloggingstocks.com/2006/07/03/in-support-of-home-depot-my-response/http://www.bloggingstocks.com/2006/07/03/in-support-of-home-depot-my-response/http://www.bloggingstocks.com/2006/07/03/in-support-of-home-depot-my-response/#commentsFiled under: , , , , , , ,

I recently received a comment to an article I wrote a while back questioning my favorable opinion of Home Depot (HD) where I stated that despite its poor performance this year I still felt it was a good core holding; thus I feel a "public airing" is in order.

The following was the comment I received on Thursday, June 29:
    Why would you list The Home Depot as a "solid company" and give people the impression it's a stock to buy or hold at this time?  Investors have had trouble with management, the board of directors, and the the direction the Home Depot is going.
     Price of HD stock has been declining since the first of the year. It hasn't been doing well over the last five years. This is a stock a person has to gamble on. Flip a coin, cut a deck of cards, roll the dice, then decide if you want to invest. There is no "solid" evidence that this is a "must have in my
portfolio" stock.
     Todays Home Depot is not the money maker of 5 or 10 or 15 years ago because it's not the same company.

Continue reading In support of Home Depot - my response

In support of Home Depot - my response originally appeared on BloggingStocks on Mon, 03 Jul 2006 11:36:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Cash flowCashFlowevaluating riskEvaluatingRiskHome depotHomeDepotInvestinglearningP/EP/SROEROICWarren BuffettWarrenBuffettMon, 03 Jul 2006 11:36:00 EST