Shares of junk companies such as American Airlines (AAL) and General Electric (GE) are back where they traded during the COVID doldrums. What was gained by bailing out these shit companies or the thousands of zombie companies that received COVID relief money? All of that wasted capital - trillions of dollars - that was printed … Continue reading Junk Sinks To The Bottom of The River
Tag: General Electric
Fraud always spikes during frothy markets. If it feels like we are beating you over the head as it relates to Quality CEOs and CEO Integrity it is because we are. High Quality, High Integrity CEOs are the best preventive measure against getting burned by fraudulent companies. 2020 has delivered massive equity market valuation froth … Continue reading Fraud – A Sign of The Times
It is amazing what institutional investors - especially large holders - put up with. Do Portfolio Managers communicate with CEOs any longer? PMs used to speak with management teams to provide feedback around capital allocation decisions, financial disclosures and more. My sense is that less of this interaction occurs today. Below we cover a few … Continue reading Institutional Investors Forgot They Have A Voice. PLUS – Big Tech Regulation.
CEO's need to be comfortable with some level of diversification to keep their companies relevant over the long-term. Long-time Anheuser-Busch InBev (ticker: BUD) CEO Carlos Brito was not afraid of big acquisitions. However, his most notable large acquisitions (Anheuser-Busch and SABMiller) failed to add new beverage categories to the tired product portfolio while weighting it … Continue reading Carlos Brito Is On His Way Out as BUD CEO. Did BUD’s Board Try To Help Brito?
Here is the full Excel workbook disclosure compiled by the Federal Reserve which lists the various issuers, sectors, cusips, coupons, maturity dates, par values, amortized costs and more for the fixed income securities the Federal Reserve has purchased. Among the securities purchased through June 16th, 48.1% were "AAA, AA and A" rated, 48.3% were "BBB" … Continue reading Federal Reserve Discloses Corporate Bond Purchases
We 100% disagree with Barron's that General Electric's deal to sell its BioPharma business to Danaher (tkr: DHR), for $21.4 billion (original deal announced February 2019), should close soon. This is precisely the type of large deal struck at a peak market that will either get delayed indefinitely or negotiated down. Danaher has the upper … Continue reading GE’s BioPharma Deal Is at Risk
Some years ago many insurance carriers wrote tranches of long-term care (“LTC”) life insurance policies which have proved to be toxic. These “toxic” LTC policies - primarily written between 1999-2004 - were at the heart of a scathing critique of General Electric (tkr: GE) last week which ultimately accused the company of accounting fraud. While … Continue reading Toxic Long Term Care Policies: A Bane for Many. A Boon for Some.
I’m puzzled by the mess that is GE. The Company recently removed former CEO John Flannery after only 14 months at the helm only to replace him with a Board member (Larry Culp). I was a fan of Flannery’s effort to decentralize operations and to divest non-strategic businesses. However, I did not agree with all … Continue reading Boards: Perform Due Diligence on CEO Candidates Upfront. GE Is Still Cleaning Up Its Mess.Premium