RE:Mr. Market says this Managment Team HasFULLY concur. I would add that I think rates may go even beyond this forecast, and maybe even a 1%'er next week.
Given a 6-12 month runway to stock market pain (ultimate being even a little further out than than), what's your plan for this pig?
Holding, or folding and waiting for recovery signs?
Other than energy, and a few long term holds that I'm happy to ride, I'm moving to about 60% cash by Tuesday. Not as tax friendly as dividends, but I'm following the approach you suggest, lots of options for 3.5 - 4% interest with no risk.
F@ck, I can't believe I went in on this pig AGAIN.
Malpeque2 wrote: A negative EVA, that is Economic Value Added, it's an invesment corporate finance theory.
The reason I say this is because we are trading well below Tangible Book Value or IFRS value per share. When most of that Book Value is Cash. It's hard to trade much below cash value, but it can happen IF investors percive that the Managment team is not going to do "good things" with the cash and is more likely than not to blow in on poor investments.
Mittleman's can make of for a lousy track record to date since they got involved with this compay, and that is to buy back the common, and the two issuances of preferred's at the current vary favorable prices, and hold their dry powder till the full fury of this recession is being felt.
There are at least 2 more FED raises coming, and it's 6-12 months at least before the lag effect of the Fed raises "hit" the economy.......but we have gone from a essentially "free money" policy to a fairly restrictive one already in a short amount of time, with more to come.
Home sales and auto sales are rolling over as we speak. The effect of 4% short term money has yet to be felt on the fed debt interest rates, and what that will do to the Fed budget over time. Seems very easily that a total disaster could be in the wings. CASH has been the best performing asset in the past few months, and next to Energy it has been the best performing asset this year.
I think 3-4% short term governments will give us a descent yield and we can just sit tight and buyback shares till the cows come home, or until at least the first FED rate cut, which could be a long long time.
Most of the garbage looking invesmtents that they already own don't appear to even yield 4% ROE, if they yield any ROE at all!!