GE gave Warren Buffet a deal, then again there are not that many people who will invest 3-5 billion quickly.
Warren gets 3 billion of preffered stock payiing 10%.
he also gets a 3 billion in warrants at $22.25.
there is also a 10% premium if GE wants to buy them back.
the average GE shareholder gets a yield of 5%.
GE also announced plans to dilute shareholders to the tune of 12 billion. the shares will be priced at $22.25.
though managment is talking about playing offense, by (destorying their shareholders) , they did this since the price of their debt would, was soaring.
GE should have done years ago what CP did, many times heard this brought up and most "experts " thought they were not close for a comparision.
they were correct CP had excellent managment that reduced debt, only paid divs, they could afford, and planned over just a year (18 months) to split the company, CP Rail, CP Hotels then Farimount, Fording Coal (now taken over by TCK, this year), Pan Canadian (merged with Alberta Energy to create a little natural gas/oil company called Encana.
the return eveyone has been merged or taken over except CP rail, the overall return was over 450% in less than 5 years.
guess they are correct, there is no comparison.
GE has done basically nothing for 10 years.
they should when things recover begin to break the company up, fianancials, enertainment, and infastructure. good chance Warren may encourage the process, to try to get value of those warrants.
last time I owned GE common was 1999-2000, got rid of the howling dog. actually only loss a small amount and found better places to put the money.
have often heard and believe GE often tracks the market, if that is the case why not just buy the index than one company,...especially after it flatlines.
avoid jr. resource stocks, they are cheap but also hated, and if there is even a hint they will need money in six months, avoid. just make a list, you do not need to buy them at the lowest price. some are extremely cheap...just wait....and start making your list.
thanks
selkirk
Warren gets 3 billion of preffered stock payiing 10%.
he also gets a 3 billion in warrants at $22.25.
there is also a 10% premium if GE wants to buy them back.
the average GE shareholder gets a yield of 5%.
GE also announced plans to dilute shareholders to the tune of 12 billion. the shares will be priced at $22.25.
though managment is talking about playing offense, by (destorying their shareholders) , they did this since the price of their debt would, was soaring.
GE should have done years ago what CP did, many times heard this brought up and most "experts " thought they were not close for a comparision.
they were correct CP had excellent managment that reduced debt, only paid divs, they could afford, and planned over just a year (18 months) to split the company, CP Rail, CP Hotels then Farimount, Fording Coal (now taken over by TCK, this year), Pan Canadian (merged with Alberta Energy to create a little natural gas/oil company called Encana.
the return eveyone has been merged or taken over except CP rail, the overall return was over 450% in less than 5 years.
guess they are correct, there is no comparison.
GE has done basically nothing for 10 years.
they should when things recover begin to break the company up, fianancials, enertainment, and infastructure. good chance Warren may encourage the process, to try to get value of those warrants.
last time I owned GE common was 1999-2000, got rid of the howling dog. actually only loss a small amount and found better places to put the money.
have often heard and believe GE often tracks the market, if that is the case why not just buy the index than one company,...especially after it flatlines.
avoid jr. resource stocks, they are cheap but also hated, and if there is even a hint they will need money in six months, avoid. just make a list, you do not need to buy them at the lowest price. some are extremely cheap...just wait....and start making your list.
thanks
selkirk
