1. Boeing- The Gang that Can Not Shoot Straight: I am just glad that I did not purchase BA at $51 after Cramer's spiel about the 787 Dreamliner taking flight at the Paris air show. Boeing said at the Paris air show that the Dreamliner, originally scheduled for its maiden flight in May 2008, would take off later this month. WSJ
Oops. Maybe they forgot about some structural problem or just found out about it, neither alternative is exactly reassuring. So, expect a maiden voyage sometime in the future- again. Maybe this Dreamliner is more of a nightmare for Boeing shareholders than a pleasant dream. Unfortunately, I did go with Cramer on his aerospace call, just a tad with a healthy dose of circumspection, by buying just 100 shares of PPA, an ETF for both the defense and aerospace sectors rather than one of Cramer's individual selections. I am down almost 10% on that one. Morning Notes 6 5 09/Unemployment: Good or Bad News?/ Cramer Hot on Aerospace-Bought 100 ETF PPA I will take the loss if and when I can sell it at $13.9 or higher, otherwise I will just go down some more with Cramer.
2. Bank of America: I saw that BAC priced its common shares at $12.7 for the equity preferred exchange offer. BofA I have no interest in this exchange other than as a suffering owner of common shares, suffering just more dilution as a result of this exchange. I sold my equity preferred positions after the conversion offer was made since I do not want another BAC common share right now, and I had a decent profit in those preferred shares, having just bought one of them a few days before the offer. Basically, the words "Ken Lewis" and "Bank of America" have a foul taste for me based on what has happened since the merger with Merrill Lynch was announced last year. Sometime, even the most rational and logical among us can not overcome an emotional response. It would have been rational to buy a 100 or so at 3 and change, but the disgust just weighed too heavy.
3. Cramer Elevates CEO of Region's Financial on his Wall of Shame: Sometimes, I do wonder how a person becomes the head of a large financial firm. Is it because of their smarts, good judgment, ability to balance risks and rewards, knowledge or something else entirely? I have concluded that it has to be something else entirely for many of these firms, certainly not because of any of those enumerated qualities. I do not disagree with Cramer's elevation of Mr. C. Dowd Ritter, CEO of Regions Financial, on his wall of shame. CNBC.com TheStreet.comI did not buy my 50 share lottery ticket in Regions at $3.47 because I had confidence in the management of the bank. Buys of DKF, AA and a Lottery Ticket in 50 shares of RF/Heinz & its Boston Market Line/ Who could, other than "professional" managers at mutual funds, other large institutional investors, and individuals who never pay much attention to what they own after buying it. I bought those shares, spending about $150, even after noting that the stock deserved its mauling. It was more a bet, a long shot given how bad this bank has been managed, that a moron could improve on the results once the economy starts to turn up. I am not saying that current management are a bunch of morons. No, no way would I say something like that. I am just saying you could randomly pick a moron to run the bank, and operations will improve with the economy. Now, once the economy starts to improve, the officers of this bank will pat themselves on the back about how well they are doing, give themselves more perks and bonuses for a "job well done" when the improvement has more to do with an uptick in the economy than anything done by them. I really can not explain why anyone would vote for the current Board of Directors at Regions. That house needs a total do over.
4. SOLD NESTLE and Bought 1 share of BRK/b: I wanted to buy another share of the baby Berkshire shares, sort of an average down after it fell more than 100 points from my last buy, and that order was filled at $2,757. That required me to sell something under my trading rules so I sold Nestle at $38.28, a good short term profit with the recently paid dividend. BOUGHT Kraft & NESTLE/ Bought Lottery Ticket in CBG at 2.39/ Bought Nestle Late Today
This actually creates a cash surplus, along with some dividends and interest payments recently received. I am still smarting from that decision that I made in 1974. I tend to remember the ones with a lot of zeros attached to them. I did make a good profit on the baby Berkshire shares, a grand total of 5, that I sold prior to 2008. So I am just inching my way back into a 5 share position, one share at a time. I do read Berkshire's annual report every year which everyone needs to do even if you do not own any shares. BERKSHIRE HATHAWAY. I also read periodically the S & P report on BRK, and the Morningstar report which has BRK rated five stars, with the report dated 5/8/09 having fair value for the B shares at $4,600. I was amused by Dennis Gartman calling Uncle Warren an idiot and BRK was a good candidate for short selling. WSJ
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| 2009 NSRGY 100 SHARES +$493.89 |
This actually creates a cash surplus, along with some dividends and interest payments recently received. I am still smarting from that decision that I made in 1974. I tend to remember the ones with a lot of zeros attached to them. I did make a good profit on the baby Berkshire shares, a grand total of 5, that I sold prior to 2008. So I am just inching my way back into a 5 share position, one share at a time. I do read Berkshire's annual report every year which everyone needs to do even if you do not own any shares. BERKSHIRE HATHAWAY. I also read periodically the S & P report on BRK, and the Morningstar report which has BRK rated five stars, with the report dated 5/8/09 having fair value for the B shares at $4,600. I was amused by Dennis Gartman calling Uncle Warren an idiot and BRK was a good candidate for short selling. WSJ
DISCLAIMER
I am not a financial advisor but an individual investor trying to navigate my way through a difficult market. I have never worked for a financial institution and never will. In these posts, I am acting as an unpaid financial journalist and an occasional political commentator. I am also aggregating financial news stories that I view as important and providing readers of these posts with links to those articles, sort of a filtered, somewhat intelligent, free search engine. Any discussion made by me of particular securities is not a recommendation to buy or to sell. Trade at your own risk. Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons. The sale may before or after the post. Before buying or selling any stock, even one recommended by a trusted financial advisor, please research it and make up your own mind which is what I always try to do. Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news. In this post, and all others by me, I am merely describing my reasons for purchasing or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale. The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile. By way of example, it is unlikely that I will ever need the funds contained in my retirement accounts. Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments. Information contained in my posts has been obtained from sources believed to be reliable but cannot be guaranteed. It is always important to follow the investment process. the investment process/links to further information on canadian energy or royalty trustsInvestment Process Part II: Bonds and Bond Like Investments NOT A RESEARCH SERVICE/Add of PWE Last Week These posts by me do not constitute investment advice, nor shall they be construed as a guarantee of future results, or as an offer of any transaction in securities. All content in these posts is provided for informational and entertainment purposes only, and it is a form of entertainment for me. Opinions are subject to change and they certainly evolve over time as information is assessed and analyzed for compatibility with prior opinions, the only process for a serious investor, and a topic of frequent discussion in this post. Everyone is responsible for their own investment decisions, and no one should ever make any decision unless they are willing to accept full personal responsibility for it.
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