Investing 102

[GregWeld]

Another CLASSIC example of "fundamental change" this morning!!

Microsoft (MSFT)

They (The Board of Directors) dumped Ballmer (the CEO since 2000) and installed Nadella.... and the shares and company are responding positively.

When you look at the MSFT chart -- you'll see great things happened until a sharp peak at the end of 1999.... and then a basic MOUNTAIN top shape downward from there. They announced Ballmer would be CEO in 1999 and he began his term in January 2000.... for the next several years the stock languished. The brains of the company (many are/were friends) bailed like rats leaving a sinking ship. So many big (HUGE) mistakes were made under Ballmer's term - the company spent BILLIONS on failed acquisitions and the linchpin product (Windows) lost market share to Apple (AAPL). Windows 8 was Ballmer's undoing.... OUT!

Enter Nadella... The market cheered... he immediately said they'd fix Windows 8.... and the stock takes off.... Now only a couple quarters and his (Nadella) hands are showing and the market loves it.

That is the essence of fundamental change.

[SSLance]

Anyone else considering adding to or starting a KMI position today?

[GregWeld]

Originally Posted by SSLance

Anyone else considering adding to or starting a KMI position today?

KMI is he proverbial "throwing the baby out with the bathwater".... NOBODY wants to have anything to do with oil / oil related businesses.

They just raised their dividend... and the "problem" was their forward looking statement which stated they may "only" be able to grow the dividend 6 to 10% instead of the absolute statement of 10%.

Really?? You're only going to grow the dividend? LOL Amazing what the market fails to see sometimes. The herd mentality.

I already own 25,000 shares of KMI so probably won't add to this position just yet but will if it stays down here.

[SSLance]

Was talking with someone that has been in the Natural Gas business for a long time last night and he says anything regarding the transportation of Liquid Natural Gas overseas is the next big thing. Other countries are setting up their infrastructure to operate off of Natural Gas and they need supply once ready.

It seems a lot of people are missing this portion of what KMI does.

[Vince@Meanstreets]

Originally Posted by SSLance

Was talking with someone that has been in the Natural Gas business for a long time last night and he says anything regarding the transportation of Liquid Natural Gas overseas is the next big thing. Other countries are setting up their infrastructure to operate off of Natural Gas and they need supply once ready.

It seems a lot of people are missing this portion of what KMI does.

as do with many oil/fuel companies. revenues steady?

[Sieg]

Originally Posted by SSLance

Anyone else considering adding to or starting a KMI position today?

I did yesterday. Their funding secrecy has the talking heads speculating.....and me in the dark.

For the day KMI is down 1.71% right now and MSFT is up 11.18% with the DOW up 1.06%........

Global Central Banking industry is being credited with the market gains.

I had idle cash on hand and wanted to average down my KMI position so we'll see if I get bit.......rolled the dice vs sitting on my hands.

[GregWeld]

Apple (AAPL) is due to report earnings this week.... I do not own any of the shares - but love the products and operating system. Once again I will say that I'm not using this name for anything other than an Investing 102 "way to think" - so it's not about this particular stock.

I was reading an article about Microsoft (MSFT) opening a huge NYC retail store (My wife was a Senior Director there (@MSFT) for 19 years). I'm always interested in this company just due to the long connection with them - even though I quit using any of their products long ago.

We have discussed numerous times about beginning investing and trying to own shares in companies that you have exposure to - where you shop - industries you understand or work in etc. It helps you have some "insight" and connection to the shares you choose... I remember buying Apple (AAPL) shares years ago after seeing long lines at their store in the mall I was shopping at. It was the only store in the mall (one of the most successful malls in the country - Bellevue Square). Since I no longer live in a city with any malls - nor an Apple store - I personally have lost my ability to have any insight to this names retail outlets.... while I WAS NOT surprised by what I found in this article! I still said WOW!


<Quote>


According to a March report, Apple’s stores generate a staggering $4,798.82 in sales per square foot on annualized basis—by far the most of any retailer in the nation.

[WSSix]

What Apple has been able to do as a brand is amazing to me.

[GregWeld]

Originally Posted by WSSix

What Apple has been able to do as a brand is amazing to me.

Considering that they'd have gone out of business a few years ago had it not been for a loan from.......... Microsoft! LOL


http://www.bloomberg.com/bw/articles...ple-investment

Think Billy G is wishing he'd not made that loan now?? Oh man... I'm kidding of course because he's not that kind of guy - and everyone knows that keen competition is what keeps us all humming...

I remember this loan well -- and I was thinking - NFW I'd loan them money they're all but OOB!

[GregWeld]

I'm actually glad that many of you are seeing a whacked out market - many of you for the first time since you've become investors.

I'll be darned if I can figure out what's going to work and what's not.... but in the meantime the dividends continue to pay me to go race my cars. LOL

The account I used for examples here etc is down about half a million bucks - all due to the oil patch investments (KMI - ETP - APU) These are down and down hard. I've been buying more of them. I can take the pain and I love the increasing dividend percentage. In the meantime - they're the death of an account on paper....

Here's what I DON'T like about this market -- an earnings hiccup -- and the shares are down in what I think is a way over reactive manor... and an earnings beat is rewarded too much. Shares of Amazon (AMZN) are trading at 886 P/E ratio. Really? OMG! To me - there's too much money trying to find a home - as it's coming out of "non working" names - and trying to find a home in what appears to be "working". It's chasing anything and driving names too quickly too much. I don't like that.

Typically what happens is those names that run up fast and large... the fast money comes out of there the minute something else begins to work. That never ends well.

What we have to remember is the country had to climb out of a big hole... when the market all but collapsed. We had a housing melt down and a financial crisis... so for the last several years - we really were in the proverbial "there's nowhere to go but up" kind of market. Now it seems we're more on a plateau.... Or what's called a "sideways" market - where things just bump along. It's always hard to feel good about being an investor in a sideways market. Many times you feel you're being left behind - then in an effort to catch up - you stretch your rules and start to chase the names that have gains. Be very wary of doing that. Think more about your money long term - earning a good dividend - buying more shares at lower prices (lower prices does NOT mean you are lucky enough to buy the very bottom!).