So today, we're gon na be talking about one of the biggest topics in real stock land., And one thing I wan na do and I try and do on the channel is, give you the real trading opportunities and the real peak behind the curtain.. A lot of these deals happen. People don't understand the mechanics of the deal they get trapped., Especially on a longterm, investment., Hey Everyone Be sure to like share subscribe and, if you're on YouTube ring that bell to be notified. As soon as we drop a new video., That being said, I am lead trainer with StocksToTrade Tim Bohen., And today we're gon na do something a little bit, different., Always looking to experiment on the channel and reminds me of something I used to do on what was Called Market 411 and the early days of TWIST this week in stock this weekend, steady trade or stock's trade, which we kind of bounce back and forth., But anyway kind of talk a little bit more bigger picture business in real stock ideas..

Now I know most of you are probably interested in crazy low float runners.. You know we got. Lgvn went from like two bucks to eight bucks, today. Interesting., But a lot of you are also interested in real stock land.

And even if you're, more of a penny stock guy, I've seen a lot of people get for lack of a better term tricked by a Lot of these deals. And what I'm talking about is Johnson & Johnson and GE breakups. Okay.. So what you have here - and this is a little bit of a opinion piece.

So bear with me. But what we've seen, especially in the 20th century and now into the 21st century, really in that late post-war era and then going into the seventies and eighties, was this whole roll up into conglomerate corporations, where they would pick up a lot of these smaller companies roll Them up turn them into this big conglomerate. Johnson & Johnson. GE was probably the first one.

Jack. Welch was kind of the master of this.. If you go back and read into Jack Welch with what he did with GE. GE, obviously was begun by Edison started out with the electric bulb, and then you look at the eighties and the nineties with GE and its insurance jet engines., I mean medical equipment..

I mean I remember growing up. I had a GE stereo., A GE TV., I mean appliances., I mean basically, especially in the eighties and nineties. If you're old, like me, half the stuff in your house came from GE and Johnson & Johnson very similar. Mandela's I mean in the food side of things..

You've seen this happen and what happens is it sounds good., But I have always been against these deals because, oh at the end of the day, the only people that could get paid the only people that make real money on these lawyers, accountants and the suits.. I like using the suits., I'm a big fan of Dave Portnoy, but you know the executives., So the executives and the lawyers and the accountants a little obvious you know., I mean all these people are who get rewarded in these deals as they build them up, because They're paid to get the fees., The executives are like ``, Hey, I doubled sales.''. Meanwhile, all they did to double. Sales was buy more companies., They probably the profit margins was probably lower, but then they allow that they put that on the resume.

They brag about it.. They get another job., They hop. Around. You'll, see these executives, never stay anywhere..

Then what happens? Is we find out that the emperor has no clothes.? We find out that these roll-ups did not add to shareholder value over time, maybe a short blip, but typically over time. It's actually destructive to shareholder value.. You know you, actually they do. These reverse splits to pump the stock up which GE did.

And you keep looking and you'll, see. Oh well, GE, I thought was going up.. Meanwhile, I just have more shares at a lower price. And it just in your like at the end of the day, you hold these stocks for years and decades and you you make no money on them., But you keep seeing all these things happening., So you're sold This dream by the executives., Then they reach that back to that emperor has no clothes point where people start.

Finally, realizing wait a minute. You've done all this stuff.. You spent all these legal fees. All these bonuses, the executives all these accounts, got paid and me the individual shareholder, I'm still sitting here with my you know: 5,000 share position and five years later, I've got it's worth 5,010 or it's worth 49.90..

So then the shareholders start raging.. Let's we need to uncap shareholder value., That's where we get to today. Your Johnson & Johnson and GE., Because that's that age old term, when they start splitting it back up to unlock shareholder value., Okay GE is gon na get specifically jet engines, specifically insurance, specifically medical Equipment. - And this is where people fall for this stuff.

And it Drives. Me. Nuts., Because all that's happening right now November 18th. The story in the Wall Street Journal is that the reverse in that process..

So now who gets rewarded Lawyers, accountants, lobbyists, executives., You'll, end up buying the jet engine engine division, you'll end up buying the medical division. And those stocks will go. Nowhere. They'll, pretend like shareholder value, is on cap because the stocks will steadily uptrend for a little bit..

They'll take their bonuses. They'll move on.. Those divisions will eventually fade back to where they came from because they're still poorly run., Nothing changed., Nothing, changed., It's a bunch of legalese it's a bunch of crap and it's a bunch of people getting enriched off of selling you something in the Wall. Street Journal.

CNBC is the worst.. I actually have a little bit of respect for Wall Street Journal., CNBC Fox Business. They will convince you that these are good investments, probably cause they're getting paid.. I don't know.

Probably. And then you'll buy into these things. You'll hold them for years., You'll hold them for decades.. They will go nowhere or they will fade.

They'll sell you more shares., They'll dilute the stock. And then a decade from now 20 years from now. Guess what They do it all over again. They'll! Do it all over again.

And now they'll bring the GE jet engine division and the GE re-insurance division and the GE medical devices and all the the wind turbines and all the other divisions and they'll roll them up and guess who gets paid For the fifth time? I've said it in this video., Not you, the individual, shareholder. And plus the best part is somewhere along in there. There'll, probably be a government bail out because they'll botch this deal. And then they'll do it to save jobs..

Even though now no executives will lose their jobs. The working man, the guy down on the line, will lose his job., Then we'll be forced to subsidize these terribly run companies to roll them all back up again and repeat that same process.. So that being said, drop me a comment.. Do you agree with us? I got a little opinionated..

I got a lot of opinions, but have you been duped by these deals? Do you really think that splitting these huge conglomerates up that just rolled themselves, up in the seventies and eighties and nineties, is gon na do anything for any of us, the individual traders or investors Drop me a comment.. Also drop me a comment. Let me know: do you like these types of videos? I mean we didn't get into any charts.. We didn't get into any technicals, but if I can keep you out of getting duped by these things, that's trading related.

I think that would help preserve your account, or maybe your dad's account or maybe uncle's or your grandpa's account.. So that being said, drop me a comment.. Let me know seriously., I wan na know if you liked or disliked this video, because if a lot of you liked it I'll do more, because I'm always looking to help the trading community. And if you don't care and you just wan na talk, charts and you Just wan na talk indicators and you want to talk hot sectors.

That's awesome! As well. I wan na suit to you, the viewer.. All right. Have a great day, We'll see you next time.