10-31-2015, 11:48 PM
(This post was last modified: 10-31-2015, 11:48 PM by earthtodan.)
(10-31-2015, 06:06 PM)Dividendsrule Wrote: Tim has some high quality (as usual) articles on the subject.
http://theconservativeincomeinvestor.com...ange-work/
http://theconservativeincomeinvestor.com...financial/
I guess he suggests 25% exchange in the second article. I would recommend reading them.
I like Tim's take, and I'm thinking I'll do an exchange of 1/3 of my position. Although I will say I'm surprised at his mischaracterization of V and MA, I'd think he'd understand the difference between these companies and lenders, and their relationship to those lenders.
(10-31-2015, 08:17 PM)navyasw02 Wrote: I figure if GE doesnt want its financial arm, why should I? They know a lot more about it than I do and if it wasnt profitable they wouldnt be selling it...
This is an easy way to deal with the problem, and in fact that's how I treated the spinoff of CCP from VTR (I sold my shares of CCP and bought more VTR). However it's not quite accurate. Synchrony Financial is profitable with a net income of $2.2b, though lower valued and slower growing. GE Financial also gives the company a SIFI designation. Breaking apart the financial assets and shedding this designation means that the sum of the parts is actually worth more than the whole.