Comments on: Large Caps on New Low List http://www.peridotcapitalist.com/2008/06/large-caps-on-new-low-list.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sun, 05 Feb 2012 15:45:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rubens http://www.peridotcapitalist.com/2008/06/large-caps-on-new-low-list.html/comment-page-1#comment-909 Rubens Mon, 16 Jun 2008 16:01:00 +0000 http://www.peridotcapitalist.com/?p=600#comment-909 I totally agree with you on Microsoft and disagree on Verizon and GE. Having negotiated with GE and known some of their inner workings, I wouldn't touch that stock now. There should have been billions of write-offs in their consumer and specialty finance divisions (part of GE Capital). I think they are still in denial and smoothing earnings, very slow to recognize losses. I also find it tough to make a long-term investment in Verizon at a time people are dropping their landlines in masses and companies are switching from conventional telephone to VOIP. I couldn't believe when I read more than 25% of the people under 30 years old have dropped their landlines and rely only on cell phones, but apparently it's true. Verizon is probably the best U.S. cell phone operator, but that market is mature and not growing either. I totally agree with you on Microsoft and disagree on Verizon and GE. Having negotiated with GE and known some of their inner workings, I wouldn’t touch that stock now. There should have been billions of write-offs in their consumer and specialty finance divisions (part of GE Capital). I think they are still in denial and smoothing earnings, very slow to recognize losses. I also find it tough to make a long-term investment in Verizon at a time people are dropping their landlines in masses and companies are switching from conventional telephone to VOIP. I couldn’t believe when I read more than 25% of the people under 30 years old have dropped their landlines and rely only on cell phones, but apparently it’s true. Verizon is probably the best U.S. cell phone operator, but that market is mature and not growing either.

]]> By: Chad Brand http://www.peridotcapitalist.com/2008/06/large-caps-on-new-low-list.html/comment-page-1#comment-901 Chad Brand Wed, 11 Jun 2008 13:37:00 +0000 http://www.peridotcapitalist.com/?p=600#comment-901 I upped the posts on the main page from 3 to 8 per your suggestion.<br/><br/>As for Sears. my last comment was after they decided to split the management of the company into a holding company structure. My take home message was that such a move would hopefully allow for faster decision making and unlocking some shareholder value, but we would have to wait and see if that actually was the result.<br/><br/>Since then, very little has changed. The retail environment remains very weak and yet the company has made no meaningful moves to unlock value or diversify its business. They just keep buying back stock, which is fine with me, but more needs to be done with the core business.<br/><br/>I have not been adding shares of SHLD and in some cases have actually been cutting back the position. With the weak retail market, stocks like TGT have gotten cheap enough that new money might be better served going there until SHLD shows signs they really are more than just a sub-par retailer.<br/><br/>Until they show some life in that regard, I likely will not become more bullish on the stock. There is value there, but if management does not unlock it adequately, Wall Street won't take notice. I upped the posts on the main page from 3 to 8 per your suggestion.

As for Sears. my last comment was after they decided to split the management of the company into a holding company structure. My take home message was that such a move would hopefully allow for faster decision making and unlocking some shareholder value, but we would have to wait and see if that actually was the result.

Since then, very little has changed. The retail environment remains very weak and yet the company has made no meaningful moves to unlock value or diversify its business. They just keep buying back stock, which is fine with me, but more needs to be done with the core business.

I have not been adding shares of SHLD and in some cases have actually been cutting back the position. With the weak retail market, stocks like TGT have gotten cheap enough that new money might be better served going there until SHLD shows signs they really are more than just a sub-par retailer.

Until they show some life in that regard, I likely will not become more bullish on the stock. There is value there, but if management does not unlock it adequately, Wall Street won’t take notice.

]]> By: Anonymous http://www.peridotcapitalist.com/2008/06/large-caps-on-new-low-list.html/comment-page-1#comment-900 Anonymous Wed, 11 Jun 2008 00:36:00 +0000 http://www.peridotcapitalist.com/?p=600#comment-900 Haven't heard anything about Sears for a while. Still bullish?<br/><br/>Also, I don't read your blog as much because there aren't enough posts per page. You're losing pageviews you used to get from me, and probably others. Haven’t heard anything about Sears for a while. Still bullish?

Also, I don’t read your blog as much because there aren’t enough posts per page. You’re losing pageviews you used to get from me, and probably others.

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