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If we are to financially survive the next economic money crises, we must do ‘event trading’ (earnings announcements, acquisitions by big companies who gobble up little companies, GDP, FOMC minutes, and other significant ‘events’.)
Here you go, an Arbitrage event-driven mutual fund: AEDFX
Oh ok, I didn't realize you were speaking about a specific person. Yeah, one of the reasons why I use trading ranges and moving averages is because it gets rid of all the noise about a dollar collapse, war, economic problems etc. All of those things doesn't matter if the ETF or stock is within the trading range.
Thanks, I thought I was begining to be the ostrich with her head in the sand
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Originally Posted by mark85
Here you go, an Arbitrage event-driven mutual fund: AEDFX
I will check that out, thank you!!!!!!!
This person peddling advice sold off his Chevron not only b/c they cut the dividend, but supposedly borrowed a large amount of money.
I happened to remember that in recent years Microsoft or Apple did the same thing, borrowed a big chunk of cash.
Why did they do it? Not because they couldn't cover payroll, because of low interest rates it was cheap money that could be used to expand the business! Doh!
Thanks, I thought I was begining to be the ostrich with her head in the sand
I will check that out, thank you!!!!!!!
This person peddling advice sold off his Chevron not only b/c they cut the dividend, but supposedly borrowed a large amount of money.
I happened to remember that in recent years Microsoft or Apple did the same thing, borrowed a big chunk of cash.
Why did they do it? Not because they couldn't cover payroll, because of low interest rates it was cheap money that could be used to expand the business! Doh!
In case of AAPL, they could well afford it because of the big stock pile of cash that they have - outside the US :-). My understanding is that AAPL isn't borrowing to necessarily expand the business but to fund their buyback programs.
Thanks, TDL. Advice person sent me this article about J&J's huge buyback-in the end the shares haven't shrunk, so what's the point? J&J earnings report due out tomorrow.
Thanks, TDL. Advice person sent me this article about J&J's huge buyback-in the end the shares haven't shrunk, so what's the point? J&J earnings report due out tomorrow.
This is THE point the author is trying to hammer-in
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In other words, JNJ's buyback program isn't really intended to reduce the share count. Rather, it's intended to maintain the share count as JNJ uses its stock as currency to pay its people and to make acquisitions. This is somewhat unique and in particular, in the large cap dividend space but JNJ is making it work. I just wish it didn't dilute so heavily each year.
So, dilute shareholding through employee stock options..and when the shareholding is diluted..do a buyback (zero sum game). Use the re-garnered stock towards acquisitions..and the same game is played all over again.
Thanks, TDL. Just read another article about buybacks seem to be a good thing.......
'The biggest surprise this year might be the fact that ultra-low interest rates could spur enough mergers, buyouts and share buy-backs to (1) lower the number of available shares on the Big Board, and (2) reduce the volume of names to choose from. Buy-backs generate rising earnings per share, even if total earnings are flat, while mergers can reduce the number of available names to buy, drawing more attention to the remaining share names. In the meantime, those who hold target takeover stocks can reap windfall profits.'
Thanks, TDL. Just read another article about buybacks seem to be a good thing.......
'The biggest surprise this year might be the fact that ultra-low interest rates could spur enough mergers, buyouts and share buy-backs to (1) lower the number of available shares on the Big Board, and (2) reduce the volume of names to choose from. Buy-backs generate rising earnings per share, even if total earnings are flat, while mergers can reduce the number of available names to buy, drawing more attention to the remaining share names. In the meantime, those who hold target takeover stocks can reap windfall profits.'
All the above could/should/shall happen for companies to show YoY EPS growth given the strong dollar and the middling ground that the economy is still in.
TDL, I hate sounding like a bimbo, but can you translate that for me? Thanks.
No problem, CCc girl. The whole point of being on this forum is to educate ourselves.
Year-over-Year Earnings Per Share growth.
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happen for companies to show YoY EPS growth given the strong dollar and the middling ground that the economy is still in.
