Dow Jones Industrial Average 25,463.55 (UP) Week ending 08-03-2018
I am still simmering about that CEO the other week that sold almost a Billion shares of his personal company shares of stock at an average of $210 dollars per share and then a week later announced bad news on his earnings call. It was all "legal" of course somehow because the shares had been pre-registered to sell ahead of time, but it was certainly shady. This CEO saved $38 Billion dollars when the stock dropped from the $210 range down to $174 on the earnings call and forward guidance. Oh and >>> It was the largest loss of market capitalization of a company in one day in the history of the stock market.
It tells me that the CEO of this growth company does not have the best interest of his stockholders on his mind and is only out for himself. This also points out the hazard of owning growth stocks, where 4 times a year at the earnings call, you may hit a land mine and have your portfolio hit with a large sudden loss. (In my case it was a large long term paper gain that got erased.)
All I will say is buyer beware and refer to Phillip Fisher's Point # 15 in his book "Common Stocks and Uncommon profits" : Point 15 -- "Does the company have a management of unquestionable integrity?" I think we now have our answer to that. We learn greatly in life and investing from our mistakes.
Well, now on to more pleasant thoughts of low risk value stocks.
AT&T (Symbol T, $32.37) Insiders have just purchase $8 million dollars in shares. Time Warner coming into the fold makes this a cash generating powerhouse media and telecom company.
Capital One Financial Corp. (Symbol COF, $96.68) This family run financial powerhouse just won the Walmart credit card business from it's competitor. I like that as a catalyst for the stock to trade up from here.
Crown Holdings Inc. (Symbol CCK, $45.40)
Earnings are gushing at this designer of packaging which sports a 66.80 Return of Equity. I always knew there had to be money in those bottle caps. Insiders at this one also love the stock.
Back to the normal font. I would buy all of the above companies right here in increments of 1/2 or two purchases in case the market takes an overall dip.
I wish we got to see the stock certificates of the companies we own like in the old days instead of in street accounts. We never get to see the great lithography. I am a paper guy.
Hope you have a great week and that business is good for you.
Sincere regards,
Freewilly
I am still simmering about that CEO the other week that sold almost a Billion shares of his personal company shares of stock at an average of $210 dollars per share and then a week later announced bad news on his earnings call. It was all "legal" of course somehow because the shares had been pre-registered to sell ahead of time, but it was certainly shady. This CEO saved $38 Billion dollars when the stock dropped from the $210 range down to $174 on the earnings call and forward guidance. Oh and >>> It was the largest loss of market capitalization of a company in one day in the history of the stock market.
It tells me that the CEO of this growth company does not have the best interest of his stockholders on his mind and is only out for himself. This also points out the hazard of owning growth stocks, where 4 times a year at the earnings call, you may hit a land mine and have your portfolio hit with a large sudden loss. (In my case it was a large long term paper gain that got erased.)
All I will say is buyer beware and refer to Phillip Fisher's Point # 15 in his book "Common Stocks and Uncommon profits" : Point 15 -- "Does the company have a management of unquestionable integrity?" I think we now have our answer to that. We learn greatly in life and investing from our mistakes.
Well, now on to more pleasant thoughts of low risk value stocks.
AT&T (Symbol T, $32.37) Insiders have just purchase $8 million dollars in shares. Time Warner coming into the fold makes this a cash generating powerhouse media and telecom company.
Earnings are gushing at this designer of packaging which sports a 66.80 Return of Equity. I always knew there had to be money in those bottle caps. Insiders at this one also love the stock.
Back to the normal font. I would buy all of the above companies right here in increments of 1/2 or two purchases in case the market takes an overall dip.
I wish we got to see the stock certificates of the companies we own like in the old days instead of in street accounts. We never get to see the great lithography. I am a paper guy.
Hope you have a great week and that business is good for you.
Sincere regards,
Freewilly
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