Amazon And General Electric

[lamboguy]

today Amazon announced that Boston is in the top 20 for possible 2nd headquarters. General Electric is already in Boston and the stock looks awful. it looks like they are running out of money and i am thinking that this could be the next big target for Amazon. GE looks pretty tricky though because they are at $17 per share and they look more like the stock wants to go down to $9 to me.

Amazon overpays for their assets and this could happen with GE,

the other thing i am looking at is silver,. this is the weakest precious metal of the whole bunch. my theory on that one is that since silver is for action players, they lost a lot of those players to the crypto-currency, if crypto continues to go for the program, look for serious moves in silver so that it can catch up to the rest of the pack.

[davew]

how does GE fit into Amazon's business model?

[_______]

Or, to put it another way, WTF?

This is “Trump wins Massachusetts” delusional.

[lamboguy]

how does GE fit into Amazon's business model?applances, financial's. its just a wild guess.

the other guy that might be interested in GE could be Berkshire Hathaway. they shylocked GE money 10 years ago and may be interested in them.

this is pretty wild thinking, but not impossible.

[_______]

how does GE fit into Amazon's business model?

Amazon is all about manufacturing. You can look at their investments in oil field services, aircraft engines, and power services for examples.

I have argued with intelligent people on financial websites that although a non-profit entering your business space is never a good thing, there is very little threat to PBM’s from Amazon’s feint into pharmaceuticals.

Their entry into grocery was signaled years in advance and has been a fairly incremental process. And it’s not nearly as disruptive as everyone thinks it has been.

The idea that anyone on this planet entertains an idea this...novel. Well, it just shows that all you need is a keyboard attached to the internet.

[lamboguy]

Or, to put it another way, WTF?

This is “Trump wins Massachusetts” delusional.i still think Trump got robbed in Mass, just like he did in New Hampshire.

for that matter, i happen to have liked Trump to win the whole election as a 7-1 underdog right along. who did you happen to like?

[_______]

i still think Trump got robbed in Mass, just like he did in New Hampshire.

for that matter, i happen to have liked Trump to win the whole election as a 7-1 underdog right along. who did you happen to like?

I posted my bets on election night and won both. You can actually look mine up.

Hillary Clinton’s win in Massachusetts was the fourth in a row where the Democratic candidate for President won more than 60% of the vote in the state and the 7th in a row where they won every single county.

But sure, it was a robbery.

I’m not sure why I bother debating you. Part of it is the ease of putting you down. I’m not proud of it. It really doesn’t speak well of me.

But sometimes you just want to shoot fish in a barrel.

[Saratoga_Mike]

today Amazon announced that Boston is in the top 20 for possible 2nd headquarters. General Electric is already in Boston and the stock looks awful. it looks like they are running out of money and i am thinking that this could be the next big target for Amazon. GE looks pretty tricky though because they are at $17 per share and they look more like the stock wants to go down to $9 to me.

Amazon overpays for their assets and this could happen with GE,

the other thing i am looking at is silver,. this is the weakest precious metal of the whole bunch. my theory on that one is that since silver is for action players, they lost a lot of those players to the crypto-currency, if crypto continues to go for the program, look for serious moves in silver so that it can catch up to the rest of the pack.

Don't know about the AMZN/GE combo, but your local papers reported AMZN has/or is about to acquire a big parcel of land in Boston? Think you land AMZN HQ II?

[AndyC]

applances, financial's. its just a wild guess.

the other guy that might be interested in GE could be Berkshire Hathaway. they shylocked GE money 10 years ago and may be interested in them.

this is pretty wild thinking, but not impossible.

Berkshire has never bought businesses in the expectation to turn them around. They have always bought businesses where they will keep the management in place. I doubt that GE currently fits their criteria.

[lamboguy]

Don't know about the AMZN/GE combo, but your local papers reported AMZN has/or is about to acquire a big parcel of land in Boston? Think you land AMZN HQ II?the big parcel of land might be Sufolk Downs. Sufolk is about a mile away from the airport. i am just making a guess with what Amazon may or may not due. they seem to branch out to all different businesses.

[lamboguy]

Berkshire has never bought businesses in the expectation to turn them around. They have always bought businesses where they will keep the management in place. I doubt that GE currently fits their criteria.
they owe Berkshire a ton of money that i never thought they could pay back, now they are in trouble.

Goldman Sachs got the same type of loan from Berkshire, but it looks like they have survived it.

[AndyC]

they owe Berkshire a ton of money that i never thought they could pay back, now they are in trouble.

Goldman Sachs got the same type of loan from Berkshire, but it looks like they have survived it.

There is a big difference between being a secured lender and owning the company.

[lamboguy]

There is a big difference between being a secured lender and owning the company.i agree, its just easier to take someone over if you hold the paper. someone else may not be able to make a deal.

like i said i have no idea, but looking at the GE stock is not a pretty thing.

[JustRalph]

GE is a mess. Oil services division is bleeding executives. Aircraft engines is ok, but disorganized as hell.

They lost their ass last year in their power generation business and are selling off lots of contracts. It’s just plain gotten away from management.

They have over 50 multi million dollar power generators in the field that failed within 2 years and they have had to extend warranties and buy the units back in some cases. Loss from those units may top 200 million.

[lamboguy]

GE is a mess. Oil services division is bleeding executives. Aircraft engines is ok, but disorganized as hell.

They lost their ass last year in their power generation business and are selling off lots of contracts. It’s just plain gotten away from management.

They have over 50 multi million dollar power generators in the field that failed within 2 years and they have had to extend warranties and buy the units back in some cases. Loss from those units may top 200 million.somebody smart will take them over and re-organize the debt. that's why i suggested maybe Berkshire, because they owe them the money.

one thing for sure, Trump not going to bail them out

[plainolebill]

A little more salt in the wound - GE sold the appliance division the Haier about two years ago.

[Saratoga_Mike]

somebody smart will take them over and re-organize the debt. that's why i suggested maybe Berkshire, because they owe them the money.
one thing for sure, Trump not going to bail them out

I took a little closer look. Berkshire sold their GE stock last summer, and they haven't re-purchased any shares, according to their latest qtr'ly filing (9/30/17). Berkshire did buy GE's railcar leasing biz a few years ago.

Berkshire's entire fixed-income (corporate) portfolio is very, very modest. Even if GE debt constituted 25% of it, that would represent around 2% to 3% of Berkshire's equity base.

Anyway, how do you know Berkshire has GE debt? I assume Berkshire owns GE commercial paper and perhaps some bonds, but what's your source? And why do you view it as material (implied) to Berkshire?

[chadk66]

I don't know this for sure but I don't think appliances make up much of GE's income.

[lamboguy]

I took a little closer look. Berkshire sold their GE stock last summer, and they haven't re-purchased any shares, according to their latest qtr'ly filing (9/30/17). Berkshire did buy GE's railcar leasing biz a few years ago.

Berkshire's entire fixed-income (corporate) portfolio is very, very modest. Even if GE debt constituted 25% of it, that would represent around 2% to 3% of Berkshire's equity base.

Anyway, how do you know Berkshire has GE debt? I assume Berkshire owns GE commercial paper and perhaps some bonds, but what's your source? And why do you view it as material (implied) to Berkshire?i remember them lending GE money back in 2008, i don't know if GE refinanced at a better rate or not when their share price was higher. around the same time Berkshire lent Goldman Sachs money as well. my guess is that Goldman has paid back already.

[Saratoga_Mike]

i remember them lending GE money back in 2008, i don't know if GE refinanced at a better rate or not when their share price was higher. around the same time Berkshire lent Goldman Sachs money as well. my guess is that Goldman has paid back already.

Right, I think Berkshire did preferred deals with both companies at that time. I just don't think Berkshire has material exposure to GE at this point, but I suppose that could change if GE needs a new capital injection.