Not so quietly GE has fallen from the low 30’s into the low 20’s with SPX and INDU making all-time highs. Massive asset sales could be on the block and the equally massive 4.4% TTM dividend could be on the block too. I think most of the weakness in GE is centered on those issues. Option Pit is giving a free credit spread webinar tonight so this is an inkling of that. And no GE will not be the topic.
One of the interestings stories coming out of the Fiscal Cliff is the juggling of cash positions that is occuring amoung many of the high market cap companies that produce a lot of cash. We have seen ORCL accelorate their dividend, and we have seen nearly 100 other companies on the S&P 500 adjust their dividend schedule, announce a special dividened, or speed up dividend payments ahead of the cliff. Today, our COO Mark was asked about another major name, DELL, and how one might play Dell options. You can watch the video here:
Today, for The Street, I wrote an article pointing out the list of companies I think could be next in line for a special dividend. On that list was ORCL, who just announced after the bell that theirs could be a special dividend. The companies I looked for were super stable, high market cap, low PE, and loaded with cash. Naturally, at the top of my list: AAPL