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John Lounsbury

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  • How Sticky Are Wages? [View article]
    A little humor about prudentinvestor's comment regarding ineffective workers and Fed Ex making pay cuts at the top.

    Dead wood at elevations above ground in the woods is referred to as a "widow maker" because it kills when falling to the ground. Perhaps Fed Ex should consider personel cuts at the top instead of or along with pay cuts. Are there possibly any "widow makers" at Fed Ex?

    Now, a serious comment. A problem that any company has with pay cuts is that their most talented personnel may be coveted by another company. Across the board pay cuts run the risk of causing the best talent to leave for greener pastures and the ineffective and less effective personnel to hang on. I have been through these decisions in my corporate management days, and the best way to handle this is never obvious.

    Dec 19 12:44 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    tom 1234 - - -

    Why is Apple down? Try valuation. Expected 2008 earnings are $5.20; 5 year expected annual growth rate 24%; high volatility (Beta = 2.88). If I assign 5% annual growth starting in six years and continuing forever, fair value today for AAPL is $44.

    By the way, I own Apple. However, I do put short position hedges on that holding at every pullback. The potential for Apple to double keeps me an owner. The potential for Apple to go down 50-75% keeps me guarded.
    Jun 24 09:36 AM | Likes Like |Link to Comment
  • FedEx, Royal Bank of Scotland, Tell the Real Economic Story [View article]
    Facts that will change my strategy back to mostly long term investing include any one of the following:
    1. Dow below 10,000.
    2. Dow above 14,800.
    3. S&P 500 moving averages (50 day and 200 day both positive, ie moving upward).
    What kind of facts would you look at notsosmart? I certainly understand your reaction if you are referring to the opinions of others, including me.
    Jun 19 01:35 PM | Likes Like |Link to Comment
  • FedEx, Royal Bank of Scotland, Tell the Real Economic Story [View article]
    Good summary of "let's keep it real here". The probability of a trading range market (Dow 11,000 to 14,000) is very high (at least 50%) for the next 6 months or so. I feel there is at least a 25% chance of the RBS projection and less than a 25% chance of a new high in 2008. I have been following a long/short trading strategy for the past six months and will not return to longer term investing until my outlook is changed by facts.
    Jun 19 09:30 AM | Likes Like |Link to Comment
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