Obama Jobs Commission Member Mulls Bankruptcy
Opinion/Commentary by Bill Gunderson
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October 3, 2011 (Investorideas.com Newswire) - I read the news today, oh boy: A member of the President's Jobs Commission is contemplating putting his company into bankruptcy.
So much so that trading in its stock was suspended Friday. And when it resumed, it was trading for less than a dollar. A 60 percent plunge in one day.
The company is Eastman Kodak. The other CEO's on Obama's Jobs Commission are not exactly high fliers either.
Just look at the roster. General Electric (GE), Intel (INTC),Procter & Gamble (PG), CitiGroup (C) American Express (AXP), Southwest Airlines (LUV) , Comcast (CMCSA), and the former CEO's of AOL and Time Warner.
Big. Slow. Lousy growth. If any at all.
The president picked his commission members the same way lots of people pick their stocks: He heard the big names and just assumed they were good investments. They are not.
Though I see it all the time: People feel safe with big names in their portfolios. And brokers feel safe selling them because if/when they go south, who can blame them?
These companies make money. But for the managers, not the owners.
GE, for example, has returned minus 6.6 percent per year to its investors over the last 10 years.
The commission members who used to be CEO's at AOL and Time Warner made business history by engineering the worst merger in history.
Southwest may be a good airline, but it has lost 4% a year for the last 10 years.
Eastman Kodak has been diving 20 percent a year for 10 years. And that was before today.
Citigroup received one of the biggest bailouts in history. Not sure what they are even doing on there.
These are tough times, no doubt. But some companies are thriving in tough times -- and making money for their shareholders.
How about companies such as Autozone (AZO): that gets a grade of A in my proprietary rating system.
Or Apple (AAPL) which gets an A. or CSX, A-. or Ross Stores (ROST), A, or my stock of the decade, Priceline (PCLN) A.
These are companies run by people who know who to make money and create jobs.
They are not the only ones either. Of the 2700 stocks I follow, 10% are investment grade.
That's a lot of good people, from good companies, with a lot of great advice. But none is on the president's jobs commission.
Perhaps the problem is not just who is doing the talking, but also who is listening. And that report is not any more encouraging.
Gunderson Capital Management Inc.
Host of "Positively Wall Street"
Author of "Best Stocks Now 2011"
Creator of "Best Stocks Now" app
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