RIMM slide

I have blogged about my RIMM ownership in the past so there must have been some concerns over today's $19 drop. Fortunately I sold on Wed near the all-time high, a few minutes before the close :) I still believe in RIMM (and AAPL and NOK) and smartphones in general. I just saw there were really high expectations for 2nd half of 2008, and with limited upside potential. Asymmetric risk-reward profile as these suits like to say.
Having said that, I don't know what to do with the cash. The US market seems to be re-testing the lows. Any buy suggestions?

Index Investing

DOW and S&P500 have returned only 20% and 40% over the past 10 years. That is while you need 35% cumulative return just to keep up with an inflation of 3%. In other words, these indexes have returned nothing over the past decade! Isn’t that interesting?

Lulu times

well 6% down after a "miss" is not bad for such a high beta stock. But I am concerned for other reasons. I was in S. Calif this weekend and I was in a shopping mall and the Lulu store was shutdown! Orange County is the land of soccer moms, the main demographic for their clothes. Not a good sign.

Then, the President Day talks about "higher spending on growth initiatives." That sounds like management BS to me. They are being affected by the recession like all retailers. I think we keep a close eye on this over the next quarter and look for positive guidance, along with stronger retail numbers (overall). If that doesn't happen we should sell into strength until there's signs the the US consumer is ready to spend $120 for yoga pants.

GE NOW?!

We still have some cash in our club, enough to purchase one more item. I remember we were discussing GE a while a go, when it was around $35 and before the 11% disappointing drop. Also I remember Eddie suggesting that he would consider GE if it gets closer to $30. I think now may be the time… it is trading around $30.5. Anyone in favour? At least by owning GE we can collect some dividend, which should be better than the interest from etrade;)