March 05, 2009 –
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RELATED TICKERS: USB
, PNC
, WFC
US Banks are finally cutting dividends to acceptable levels to conserve capital. [more]
March 05, 2009 –
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RELATED TICKERS: BBI
Blockbuster (BBI) shares ended the day at 22 cents per share and trading was halted today. The shares dropped over 77% today amid news that the company is consulting with advisers about raising capital and restructuring massive debt obligations. Blockbuster is saddled with debt due to the spin off from Viacom. I have believed for awhile now that the company is headed for bankruptcy. Blockbuster continues to claim that the company is not going to file bankruptcy under any circumstances. This appears to be wishful thinking. [more]
February 27, 2009 –
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RELATED TICKERS: GE
General Electric (GE) is cutting its dividend from $1.24 per share to .40 per share. GE is cutting its dividend 68% after numerous comments from GE about how the dividend was safe through all of 2009. The stock has since slumped to $8.50 per share. General Electric is trying to save about 9 billion dollars through its dividend cut. The stock was already trading at a level that seemed to expect a dividend cut. GE will probably have a huge loss from GE Capital when earnings are announced on April 17th. CNBC continues to defend Immelt and is describing the dividend cut as a wise move. The truth is that GE is going to lose its AAA credit rating and the dividend will likely be slashed further. Based on the company’s performance over the last 7 years; Immelt should be let go. [more]
February 25, 2009 –
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RELATED TICKERS: X
, AA
, AKS
US Steel (X) is looking attractive at $22. The steelmaker is expected to earn $5.40 per share in 2010 which means the stock is trading at 4 times next years earnings. The industry average for steel companies is 7.5 which would value US Steel at $40.50. [more]
February 24, 2009 –
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RELATED TICKERS: WFC
, USB
, PNC
JPMorgan Chase (JPM) cuts its annual dividend from $1.52 to 20 cents per share today. JPMorgan is preparing for a longer recession and double digit unemployment. JPMorgan has been deemed to be in the best financial shape of the other major banks. In the current marketplace that is like having the best seat on the Titanic. Banks are hemorrhaging and need every bit of capital that they can get their hands on. If JPMorgan is cutting their dividend then other major banks dividends are in trouble as well. Now that JPMorgan has cut its dividend, it will be easier for the following major banks to follow suit. [more]
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