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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (31109)	6/2/2008 5:43:43 PM
From: Wallace Rivers	Respond to of 78670

I am in agreement on GE, I own some as a result of the "inevitable." I have had, over the years, my best trading results with LUV, and I am thinking about acquiring again, this time more long term, both for myself and the wife. Rationale: Trading at the lower end of its range. Overwhelmingly best in breed, by far the most sound financially of virtually all air carriers. IMHO tremendous management which has created a category killer. I also believe that SWA will be a beneficiary of the turmoil and capacity cuts in this industry. They will be able to expand route structure from other airline's castoffs, and pricing power is likely to benefit. The new boarding process is much more user friendly than earlier versions, and the "Business Select" initiative has performed well. The new commercials are clever and effective, differentiating LUV's strategy from the other airlines' strategy of nickel and diming (and that's a survival tool). LUV, once the king of discounters, has almost become, in its own way, the only full service airline in this new era of air travel. Of course LUV is hurt by higher oil, but they are probably the best hedged in the industry, most likely by a long shot. Few of the other airlines can even afford to buy hedges. As a contrarian play, I think LUV is worth a look at these levels. If oil continues to head north, LUV probably remains dead money at best. I think oil has reached an inflection point, and don't think it has too much more, if any, upside.

To: Paul Senior who wrote (31109)	6/2/2008 6:21:08 PM
From: E_K_S	Respond to of 78670

Hi Paul - RE: GE . . . It's the 35% financials which may make the stock trade below $30. The recent option activity seems to think so. The company is investing new money in areas I like. GeoResources, GE unit team up on Oklahama reserves investment bizjournals.com From the article:"...GeoResources Inc. is teaming up with GE Energy Financial Services to invest up to $90.5 million to buy and develop proven producing oil and gas reserves in Oklahoma. It's the third time the two companies have partnered. But this time, the Stamford, Conn.-based unit of GE (NYSE: GE) and GeoResources (NASDAQ: GEOI) have formally formed a new company called OKLA Energy Partners LP to acquire 82 percent of the assets from a group of unnamed sellers. A wholly owned subsidiary of GeoResources, a Houston-based exploration and production company, will buy the remaining 18 percent. They are buying the reserves for $60.5 million and plan to invest up to $30 million to develop additional proven reserves. The GE unit is investing 98 percent as limited partner in OKLA Energy Partners and GeoResources is investing two percent as general partner and operator...." EKS

To: Paul Senior who wrote (31109)	6/11/2008 4:16:05 PM
From: E_K_S	Read Replies (1) \| Respond to of 78670

Hi Paul - Got my fill today on GE for the IRA account below $30. Peeled off some shares of CVX to rebalance the account. I also started a new position in HD and added shares of GE, MOT and ULTR to the taxable account. Hope today was the final capitulation in the most recent sell off. Option expiration is next week and I saw a lot of Put buyers today. There was one buyer on the GE June $29 Puts for 15,000 contracts which indicates that the stock may go a bit lower short term but lots of buyers and expanding open interest on the GE July $33 calls which indicates the stock should move higher long term. EKS