The second quarter is now behind us and for the most part it was a positive one in terms of the market pushing higher almost 40%. This is the second review of my 2009 stock picks through June 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). There was a lot of talk about green shoots this past quarter as Wall Street was looking for any small bit of optimistic data to support the market.

The federal printing presses continued to run at full speed pushing the dollar lower and oil prices higher. While the feds were printing money to cover their deficits, the States do not have that same luxury and many of them are having trouble balancing their budgets to the tune of billions of dollars.

Continue reading Chasing Value: 2009 picks 731% better than S&P -- 2nd quarter review

Chasing Value: 2009 picks 731% better than S&P -- 2nd quarter review originally appeared on BloggingStocks on Thu, 02 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

After a nifty rebound off a 52-week low of $5.73, industrial and financial services giant General Electric (NYSE: GE) is in a weird place. The company's shares are trading at around $11.75, which is well below the $15 levels achieved in early May. This would seem odd as GE appears to be well positioned for the Green Shoots Scenario. The company has a big presence in alternative energy, health care solutions, and industrial products -- all big beneficiaries of both the Obama stimulus package and a nascent economic rebound.

So why does the market seem to be scared of GE? A couple of key reasons. First, GE's investments in commercial real estate (CRE) are looking increasingly toxic as the rate of CRE failures soars and CRE debt remains difficult to roll over.

Continue reading General Electric: Up, down or sideways?

General Electric: Up, down or sideways? originally appeared on BloggingStocks on Thu, 02 Jul 2009 14:45:00 EST. Please see our terms for use of feeds.

Well, as Boorstin rightly points out, CBS (NYSE: CBS), Disney's (NYSE: DIS) ABC, General Electric's (NYSE: GE) NBC, and News Corp.'s (NASDAQ: NWS) Fox do need to worry. These DVR technologies basically translate to a drop in the economic value of advertising. Let's face it: who watches commercials when they don't have to?

Continue reading DVR and content companies: What should the broadcasters do?

DVR and content companies: What should the broadcasters do? originally appeared on BloggingStocks on Wed, 01 Jul 2009 16:20:00 EST. Please see our terms for use of feeds.

The federal government, for better or worse, has been increasing the money supply as fast as it can in an attempt to prevent a collapse of our financial system, stabilize the housing market, improve the employment outlook and rehabilitate our nations infrastructure.

Most economists have some fear of inflation as a result of this, even if the fear is not for three to five years. To combat the increase in money supply we need to balance it out with an increase in productivity.

Continue reading GE invests in Michigan, USA -- new technology center

GE invests in Michigan, USA -- new technology center originally appeared on BloggingStocks on Tue, 30 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The great day that could have been... (APOL, BRCM, ELX, GE, GERN, VICL)

Closing Bell: The great day that could have been... (APOL, BRCM, ELX, GE, GERN, VICL) originally appeared on BloggingStocks on Tue, 30 Jun 2009 16:00:00 EST. Please see our terms for use of feeds.

I found an interesting article in this morning's New York Post examining the poor performance of NBC Universal's Universal Studios of late. In fact, Jeff Zucker of NBC -- a part of General Electric (NYSE: GE) -- is "so concerned" about the unit's performance that he sent his chief financial officer to Hollywood for a month in order to "get more educated on the studio." Before I give my opinion on how to fix the studio (and you know I have one), let's take a look at how good the year has been.

Will Ferrell's Land of the Lost cost $100 million to make, but it brought in $44 million through last Friday. It is this catastrophic flop that caught the attention of Zucker and has him wanting answers from studio boss Ron Meyer. A source noted, "It's really the first time [Zucker] is asking Ron to explain things," as Meyer basically had free rein to run the studio. Zucker now wants to know Meyer's process for greenlighting movies and determining production and marketing budgets.

Continue reading Will summer flops doom Universal?

Will summer flops doom Universal? originally appeared on BloggingStocks on Mon, 29 Jun 2009 14:30:00 EST. Please see our terms for use of feeds.

This week I closed out an option on General Electric (NYSE: GE) I had discussed four months ago regarding the absolute fear in the market place that I felt had driven investors off a cliff (see Chasing Value: Will we be eating out of trash cans?).

At the time I had noticed that GE naked puts, a "sell to open" put option, would pay me, on the spot, 52 cents a share if I would commit to buying the shares if they dropped below $2.50 by January 2011. This meant that my break-even position was $1.98 a share when GE was selling for five times that.

Continue reading Chasing Value: GE -- maybe not eating out of trash cans after all

Chasing Value: GE -- maybe not eating out of trash cans after all originally appeared on BloggingStocks on Mon, 29 Jun 2009 13:50:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: When a loss is a win (GE, PALM, POT, NKE, MU)

Closing Bell: When a loss is a win (GE, PALM, POT, NKE, MU) originally appeared on BloggingStocks on Fri, 26 Jun 2009 16:00:00 EST. Please see our terms for use of feeds.

The Reporter article, which talks about the TMZ.com post that brought an email Bay wrote in May to the world's attention, says that Bay believes the quality of the marketing support so far on the second Transformers is way below par. He feels no buzz equity surrounding the movie. He doesn't think that an appropriate zeitgeist of support has been synthetically manufactured by the powers that be at Paramount. And he wonders if it might have to do with money: "I cannot figure if this is a cash issue with your company?" Further, he proffers: "Right now we are not an event. We are just a sequel, which is different."

Continue reading Viacom and Michael Bay: Stop whining, Mike

Viacom and Michael Bay: Stop whining, Mike originally appeared on BloggingStocks on Mon, 22 Jun 2009 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Siemens: A mega payday from government stimulus

Siemens: A mega payday from government stimulus originally appeared on BloggingStocks on Mon, 22 Jun 2009 09:20:00 EST. Please see our terms for use of feeds.

Continue reading Back to school with Jack Welch

Back to school with Jack Welch originally appeared on BloggingStocks on Mon, 22 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.

General Electric (NYSE: GE) closed at $12.15. GE is expected to report Q2 EPS on July 17. GE July option implied volatility is at 58, September is at 56, December is at 53; below its 26-week average of 65, according to Track Data, suggesting decreasing price movement.

Financial Select Sector (NYSE: XLF) overall volatility at 48; 26-week average is 64.

ISE Sentiment Index-ISEE closed at 98 on 6/17/09. ISEE 10-day moving average is 129.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: General Electric volatility near nine-month lows originally appeared on BloggingStocks on Thu, 18 Jun 2009 08:30:00 EST. Please see our terms for use of feeds.

This movie-making model is right up my alley. I've written extensively about how Tinsel Town has gotten out of control when it comes to budgets and marketing expenses. Movies simply don't need to cost as much as they do. And projects give away way too many concessions in terms of cash-flow participation. Big stars tend to receive percentages of the gross that are too significant, in my opinion.

Continue reading New studio's business plan should be a lesson to media conglomerates

New studio's business plan should be a lesson to media conglomerates originally appeared on BloggingStocks on Tue, 16 Jun 2009 15:40:00 EST. Please see our terms for use of feeds.

If this weekend's box office results say anything, it's that success in the movie business resists predictability. How else do you explain the money that Time Warner's (NYSE: TWX) The Hangover is grossing? I haven't seen the film, so I'm sure there's something to it. Nevertheless, it just didn't seem like it would be a big hit. Guess the word of mouth on it has been pretty good.

Hangover, as of early estimates at Boxofficemojo, took in $33 million at domestic theaters over the past three days, good for first place. It beat Disney's (NYSE: DIS) Pixar project Up, which took in about $30 million and came in second. Hangover actually was the number-one movie last weekend as well. So far, it's taken in more than $100 million.

Continue reading Time Warner's 'Hangover' beats Sony's new action flick

Time Warner's 'Hangover' beats Sony's new action flick originally appeared on BloggingStocks on Mon, 15 Jun 2009 08:30:00 EST. Please see our terms for use of feeds.

GE Aviation, a unit of General Electric Co. (NYSE: GE), warned that it expects orders to be cut in half this year amid the ongoing recession. Jack Lutze, the unit's vice president of sales for Europe and Africa, told Reuters that deferrals are rising as airlines postpone spending on new jets. "Everybody is looking to push back 2010," explained the VP.

On the plus side, Lutze reports that GE Aviation has an order backlog that should translate to years' worth of production -- leftovers from a period of expansion earlier this decade in the airline industry. "This industry lurches from boom to bust," he observed. "We lag the industry on the way down and on the way up."

Continue reading GE Aviation expects orders to plummet as airlines cut spending

GE Aviation expects orders to plummet as airlines cut spending originally appeared on BloggingStocks on Tue, 09 Jun 2009 11:20:00 EST. Please see our terms for use of feeds.

Viacom, Inc. (NYSE: VIA), a media company that competes with entities such as The Walt Disney Company (NYSE: DIS), General Electric Company's (NYSE: GE) NBC Universal, and Time Warner, Inc. (NYSE: TWX), held its annual shareholder meeting last week. An article from The Hollywood Reporter recounted a few tidbits from the gathering.

As you can imagine, the CEO, Philippe Dauman, was pretty happy about the company's stock performance. He pointed out that it has been strong against the broader market this year. While that might be comforting, the longer-term performance of Viacom shares has not been so rosy.

Continue reading Can Viacom create long-term value?

Can Viacom create long-term value? originally appeared on BloggingStocks on Mon, 08 Jun 2009 17:40:00 EST. Please see our terms for use of feeds.

Disney (NYSE: DIS) and Pixar have a great thing going with their new cartoon Up. Last weekend, the movie debuted in the top spot. This past weekend, Disney just might retain that number-one designation. And if it does, I can tell you that this is cool news.

It's very close. As of this writing, early estimates at Boxofficemojo credit Up with a take of $44 million for the past three days at domestic theaters. Time Warner's (NYSE: TWX) The Hangover is said to have grossed $43 million. If those numbers by any chance hold, then Up will be in first place and Hangover will come in second.

Continue reading Disney's 'Up' continues to reach for box-office domination

Disney's 'Up' continues to reach for box-office domination originally appeared on BloggingStocks on Mon, 08 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.

I'm always looking for a catalyst that is going to take Disney (NYSE: DIS) to the next level. The stock hasn't been a great performer over time. Just today, the Mouse issued a press release detailing its latest merchandising plans.

Merchandising falls under the consumer products division. Now, one would expect that this segment would always be rocking considering the brand equity inherent in all of Disney's intellectual properties. Well, let's remind ourselves of how the segment did during the last earnings report. In the second quarter, operating income for consumer products dipped 24%. For the six-month period, operating income was down by 13%. Double-digit declines: nobody likes them. Management commentary about the division specifically stated that lower royalty revenue from merchandise helped to drive the performance. As can be seen, Disney needs some good ideas and strategies to return this segment to growth.

Continue reading Can Disney license its way to a stock rebound?

Can Disney license its way to a stock rebound? originally appeared on BloggingStocks on Tue, 02 Jun 2009 16:30:00 EST. Please see our terms for use of feeds.

Three light plays to brighten your day (pun intended) and your portfolio -- and all are linked to rapidly-advancing light technology, including LED lights, that will save energy and reduce carbon emissions.

First, I'll reiterate a previous favorite, General Electric (NYSE: GE). I recommended it first on March 2, 2009. Now I'd raise Sell/Stop Loss to $9.25 from my original Sell/Stop Loss: $3.25. The First Call FY2009/FY2010 EPS estimates for GE are 98 cents to 94 cents.

Continue reading Light technology plays: GE, Siemens, Philips

Light technology plays: GE, Siemens, Philips originally appeared on BloggingStocks on Tue, 02 Jun 2009 12:00:00 EST. Please see our terms for use of feeds.

Disney (NYSE: DIS) soared to the number-one spot this past weekend with its new Pixar project, Up. The computer cartoon grossed roughly $68 million at domestic theaters as of early estimates, according to Boxofficemojo.

Disney took a lot of thunder away from News Corp. (NYSE: NWS) and its Ben Stiller comedy/fantasy Night at the Museum: Battle of the Smithsonian. That movie dropped to second place, taking in about $25 million.

Continue reading Disney and Pixar rule box office with 'Up'

Disney and Pixar rule box office with 'Up' originally appeared on BloggingStocks on Mon, 01 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.