Another day, another dollar.
GE Sell Off Is Overdone
The Stock Market had another sell-off kind of day. On the bright side closing well off its lows for the day. One of the biggest losers of the day was GE. Why? Because of Japan’s nuclear power plant situation and the fact that GE was one who supplied the reactors at the stricken nuclear plants.
All of this though has no real impact on GE as a hold because GE itself is so massive. The company has its hand in everything imaginable. The sell-off today and what may continue into tomorrow with the recent worsening of the nuclear situation, is not going to effect GE as much as investors are making it seem.
GE’s last quarter was much better than the analysts predicted and gave really optimistic outlook. To me, nothings really changed. All of GE’s other business are getting more than enough orders to cover any slow down in its nuclear reactor segment. I plan on adding to my long position tomorrow with the selling that is likely to continue tomorrow morning.
Having said that, I’m hoping for the best. The country been through more than enough the past few days and doesn’t need to add a nuclear meltdown to the equation.
Update: GE’s nuclear business is only 0.66% of its total revenue and has no liability to the nuclear reactors in Japan under Japanese law.
Book Review: Confessions of a Street Addict
I have a part-time obsession with investing. I will watch countless hours of CNBC, read various articles on Bloomberg, and pine through stocks all day just to find one that could make me money. Do I do all for the purpose of making money? A little, but mainly because I can’t get enough of it. The complexity, the rapidly changing environment, and the appeal of it all just interests me. So natural I tend to read various books on the subject. As an avid watcher of Mad Money on CNBC, I stumbled on a book that Jim Cramer wrote called Confessions of a Street Addict. Its an autobiography of his life up until he quit his hedge fund in early 2000.
The book to me was very well written. It was obvious that he wanted to be a writer before he became the stock guru that he is known for today just by the words that he uses throughout the book. Luckily I read the eBook version my iPad so I easy access to a dictionary. Otherwise I would of definitely needed one next me the entire time. What I found the most interesting about the book was how he described everything in detail. He would emphasize and explain why he would dump certain stocks based on a notion he from meeting with the CEO or something that was said in the quarter earnings report. The thing I liked most about the book was the humility he had when describing his pitfalls. Whether it was getting plastered at his birthday party and throwing up on the guests, going behind his oldest friends back, or just making a wrong trade; he owned up to it. He didn’t blame anything on anyone else except himself.
This is a good book for anyone who is interested in investing and how hedge funds work. Its also good to read about others experiences in life and to learn from both their success’ and their failures. Knowledge is power and the only way to get it is to expose yourself to information that you didn’t know or weren’t aware of before. So if your like me and either like investing or a good non-fiction book, this should be one of your next reads.
My Rating: 4 out of 5
