Corporate mergers often fail because buyers pay too much. This is due to the control premium, the need for the buyer and seller to feel they are getting a good deal, and the false promise of synergies.
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General Electric
Dividends have historically been a large part of total stock returns and represent real earnings. Low interest rates have created a cult of dividend-paying companies, and some companies have had to borrow money to pay out dividends even if it isn’t in their best interest.
Wall Street often focuses on companies that beat quarterly estimates, but this does not always lead to long-term success.
A lot of times I won’t have an insight into a business because I don’t understand it or because it’s too complex. General Electric is a great example. As a value investor I should be all over this iconic stock, which is making a generational low.
S&P 500 earnings topped out at about $84 a share in June 2007, while corporate profit margins were 44% above their average since 1980. At the time, these numbers were…
I had a fun radio/podcast interview today with Chuck Jaffe at MarketWatch, my portion of the interview starts on the 10:40 mark), we “played” hold it or fold it with…
This is an excerpt from a comment I read on Daily Speculation. It is such a common misperception that I had to write a response: “Great stocks [Google, Apple] are…
I am not a buyer of Abbott Labs(ABT) at this price, as the margin of safety has been depleted by the latest stock appreciation. But I like its latest transaction…