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FFH 13-F 9-30-09


Grenville
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The 13F just came out. Here is a highlight of the portfolio changes:

 

Alcoa        SOLD OUT

BCE Inc.    -91.5%       $6,592    9/30/09 value

GE            +45.2%      $435,671 9/30/09 value

GE Calls      NEW          $8,354    9/30/09 value 2,620,000 SH

INTEL         -18%        $111,748 9/30/09 value

King Pharm  SOLD OUT

Leucadia     -32.4%      $16,677  9/30/09 value

Magna        -2.3%        $224,701 9/30/09 value

Methanex    SOLD OUT

Sandridge   -29%         $11,426   9/30/09 value

Zenith        +78.3%      $30,625   9/30/09 value

 

http://www.sec.gov/Archives/edgar/data/915191/000095012309061698/o57876e13fvhr.txt

 

 

 

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Yes. I hold a good chunk of GE - Jan 2011 Leaps; I am waiting for the 2012s to come out and hoping the stock will languish until then.  These options are so liquid that the spreads are usually about 10 cents and they trade thousands per day. 

 

GE has been cleaning up the balance sheet rather rapidly by:

1) 8 billion this year from cutting the dividend

2) 30 B from the sale of NBC

3) 1.8 B from the sale of a division to UTX a couple days ago.

4) downsizing GE Capital

 

 

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"Losses" is a broad term.  Can you be more specific?

 

Here is my 2 cents.  It is tough for me to invest in GE b/c on a philosophical level, they (and Goldman Sachs) were the kings of shadow banks and leveraged the company beyond belief.  Buffett uses investment float to fund his investments - he believes it is safer than all other forms of "financing".  Over time, he has proven right (and by a country, or Omaha, mile).

 

GE owns vast amounts of commercial real estate - I would be less concern about losses in that unit if they were unrealized and the properties were cash flow positive. 

 

Overall, GE is so complicated and complex, it is tough to get your arms around pieces of GE Capital, let alone all of GE Capital and all of GE.  However, I agree with one poster that showed the moves to raise capital.

 

As a long-term investment, GE management doesn't deserve anyone's trust.  However, since it is all about making money, I do believe that over the next year (the term of the leaps) that GE can move higher. 

 

Good luck to all.

 

 

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