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My Stock Value Strategy Starts Now (1 Viewer)

David Dodds said:
TheWalkmen said:
After considering various strategies for the $35,000 I'm going to be playing with (after I come up with a legitimate strategy), I've tentatively come up with the following, please feel free to comment:

Strategy

Hold stocks with low volatility and steady, high dividends. Enhance income by selling calls each quarter. Effectively this will be a long term covered-call strategy. I think with steady, mature companies I can rely on steady stock appreciation with limited downside while capitalizing on writing calls and receiving dividends.

Tentative Stock Selection (Quarterly Div)

ABT (.40)

WMT (.27)

JNJ (.49)

PG (.44)

MCD (.50)

I'd obviously want to look for optimal entry, and I'm not sure this is the best time, so I might ease into these positions in the next few months if I go with this strategy.

Stock & Contract Quantity

I would buy 100 shares of each stock, and sell 1 out of the money call contract per quarter. I need to do more research, but I'm estimating I can get ~$150 per contract each quarter.

100 Shares of each stock at current prices and yearly commissions (including options) is ~$29,733.

Returns

Dividend and call writing income alone should be ~$3840 or 13% return. Any stock appreciation is added.

Downside protection

I have downside protection of nearly 13% due to the dividend and call writing. Meaning if the stocks lose 13% of their value, I should at least break even, even if I don't manage my positions at all.

Managing Positions & Questions

This is where I could use some help. I need to do more research on liquidating covered calls and rolling them with long call spreads & diagonal call spreads, along with any other management methods.

Other

I figure I'll take some gambles with the additional $5,000 left in the portfolio. For example, I'll take a gamble on some Jan 11 Citigroup calls. I figure I'll be able to afford throwing down a few hundred dollars in order to have the chance to earn $30,000 or more in 1 trade.
Click to expand...
As long as these companies don't cut their dividends, I think this is a very good strategy.
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:shrug: I got hosed on IP before the crash. :kicksrock:

 
COIN has its conference call Wednesday this week. I'm ready to get out of this stock and take about a $700 loss if I can get a small run up here.

 
Oh what a glorious Monday. I am out of FEED at $4.30 and FCG at 17.00. Back to 100% cash here. Market is spiking up nicely.

Profit on FEED = 10,000 shares x .22 = $2,200 - $12 = $2,188

Profit on FCG = 500 x .32 = 160 -12 = $148

 
For those of you who care the S&P is now at a high for the year, but the USD Index has not come out of the $76-74.75 channel yet. I can't see the market going much higher (I would have said it's already to high) for what the USD index is trading at. That said, I'm a little nervous/excited right now. If the USD does break 74.75 it will be time to get back in the market and the USD index will (should) be on it's way to test the all time low of 70. That would bring the DOW back to the mid 11,000's in my estimation. At the same time the market could be overbought and my correct at this point.

Once again I find the market at a big turning point. I just don't know what way it will go - off a cliff or to the moon.

:goodposting:

I'd hold any posisitons you may have with a very watchfull eye. And get ready to take some dry powder off the shelf.

 
I bought 5,000 shares of SBLK. They confirmed their divided today and announce earnings next Monday AH.

BDI is up again so I am expecting that they will up their guidance for future earnings. Might be good for a 30-40 cents jump.

 
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The Ref said:
Reaper said:
Mose said:
The Ref said:
I posted on this ticker about a month or so ago, if some of you feel like a gamble check out North America Palladium.

http://finance.yahoo.com/q?s=PAL

In short this is a mining company that primarily operates two different palladium mines in Canada. Other then Russia, they are more or less the only primary Palladium miner around. They shut down operations last year when Palladium crossed $300. In addition to the two mines they have a huge explored area that is very Palladium rich. They also operate some gold mines so they are not 100% reliant on Palladium.

What makes this company interesting is the Palladium mines are still closed and the management line has been "we will reopen the mines when PAL stays between 325-350". Well Palladium has been over 325 for quite some time and actually hit over $358 last night. They are announcing earnings after the bell today. Some are expecting that they may announce that they will reopen the mine. When this company does reopen the mine this stock is going to pop.

Not bad for a <$3 stock.

I bought it as a compliment to my Gold/Silver/Platinum as Palladium bullion is hard to come by, and it's turned into one of my favorite upside stocks because I feel like they are not going to keep the mines closed for much longer.
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well, they didn't reopen the mine. The stock is down almost 5% so far this morning. Looking at the historic prices, it seems to fluctuate between $2.70-$3.10 range. So is this a buy now around the $2.70 range even though they aren't opening the mine?
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:shrug:

I bought at the peak yesterday.
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I have 1300 at $2.79. If it trails down to $2.65 or so I'm going to double down.... So long as Palladium continues to run up.I fully expect to wake up to great news one of these days, but I'm willing to admit that it may not be till 1Q next year.
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Spiking up today. Hit $3 and pulled back a little.
 
had the sell point for PRGN at 4.78. It hadn't touched that for a while, then broke right through today. Lost out on about 0.15/share. Oh well.

100% cash now.

 
There it is folks - the USD is sitting at 74.75 again. If this corsses over and holds - the race to 12K on the down is on.

Of course Gas is going to go to $4.00 again, but lets not focus on the negative.

 
The Ref said:
There it is folks - the USD is sitting at 74.75 again. If this corsses over and holds - the race to 12K on the down is on.Of course Gas is going to go to $4.00 again, but lets not focus on the negative.
Click to expand...
Its falling. 74.69 :unsure:
 
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Random said:
The Ref said:
There it is folks - the USD is sitting at 74.75 again. If this corsses over and holds - the race to 12K on the down is on.

Of course Gas is going to go to $4.00 again, but lets not focus on the negative.
Click to expand...
Its falling. 74.69 :popcorn:
Click to expand...
If the USD does not rebound by tommorrow I'm moving some money back into the market. NEW YORK (Reuters) - The U.S. central bank is monitoring the declining value of the dollar closely as part of its commitment to both jobs growth and price stability, Federal Reserve Chairman Ben Bernanke said on Monday.

http://finance.yahoo.com/news/Bernanke-wat...set=&ccode=

Yeah - hes monitoring it all right.

 
The Ref said:
Random said:
The Ref said:
There it is folks - the USD is sitting at 74.75 again. If this corsses over and holds - the race to 12K on the down is on.

Of course Gas is going to go to $4.00 again, but lets not focus on the negative.
Click to expand...
Its falling. 74.69 :lol:
Click to expand...
If the USD does not rebound by tommorrow I'm moving some money back into the market. NEW YORK (Reuters) - The U.S. central bank is monitoring the declining value of the dollar closely as part of its commitment to both jobs growth and price stability, Federal Reserve Chairman Ben Bernanke said on Monday.

http://finance.yahoo.com/news/Bernanke-wat...set=&ccode=

Yeah - hes monitoring it all right.
Click to expand...
And just like that its back to 74.76.
 
Random said:
The Ref said:
Random said:
The Ref said:
There it is folks - the USD is sitting at 74.75 again. If this corsses over and holds - the race to 12K on the down is on.

Of course Gas is going to go to $4.00 again, but lets not focus on the negative.
Click to expand...
Its falling. 74.69 :confused:
Click to expand...
If the USD does not rebound by tommorrow I'm moving some money back into the market. NEW YORK (Reuters) - The U.S. central bank is monitoring the declining value of the dollar closely as part of its commitment to both jobs growth and price stability, Federal Reserve Chairman Ben Bernanke said on Monday.

http://finance.yahoo.com/news/Bernanke-wat...set=&ccode=

Yeah - hes monitoring it all right.
Click to expand...
And just like that its back to 74.76.
Click to expand...
Start hiding Yen.
 
The Ref said:
Reaper said:
Mose said:
The Ref said:
I posted on this ticker about a month or so ago, if some of you feel like a gamble check out North America Palladium.

http://finance.yahoo.com/q?s=PAL

In short this is a mining company that primarily operates two different palladium mines in Canada. Other then Russia, they are more or less the only primary Palladium miner around. They shut down operations last year when Palladium crossed $300. In addition to the two mines they have a huge explored area that is very Palladium rich. They also operate some gold mines so they are not 100% reliant on Palladium.

What makes this company interesting is the Palladium mines are still closed and the management line has been "we will reopen the mines when PAL stays between 325-350". Well Palladium has been over 325 for quite some time and actually hit over $358 last night. They are announcing earnings after the bell today. Some are expecting that they may announce that they will reopen the mine. When this company does reopen the mine this stock is going to pop.

Not bad for a <$3 stock.

I bought it as a compliment to my Gold/Silver/Platinum as Palladium bullion is hard to come by, and it's turned into one of my favorite upside stocks because I feel like they are not going to keep the mines closed for much longer.
Click to expand...
well, they didn't reopen the mine. The stock is down almost 5% so far this morning. Looking at the historic prices, it seems to fluctuate between $2.70-$3.10 range. So is this a buy now around the $2.70 range even though they aren't opening the mine?
Click to expand...
:lmao:

I bought at the peak yesterday.
Click to expand...
I have 1300 at $2.79. If it trails down to $2.65 or so I'm going to double down.... So long as Palladium continues to run up.I fully expect to wake up to great news one of these days, but I'm willing to admit that it may not be till 1Q next year.
Click to expand...
Wish I doubled up - gold and silver were up big today, but they had nothing on Palladium. Lots of excited PAL stockholders out there today. I reafirm that this will double by the end of 1Q, I'm assuming they reopen the Palladium mine by then.
 
I'm hoping for a drop today.

I want to buy the following at the following prices:

SBLK @ $3.25

PAL @ $2.75

FEED @ $4.05

 
USD got off the canvas and is in the corner getting a standing 10 count. Rallied all the way back to 75.46 at one point. I would think that means we are going to have a big sell off this AM. Funny thing is it was the overseas markets that started the sell off back to cash, you would think they would be short the dollar more then we would.

 
Gadfly said:
springroll said:
Gadfly said:
David Dodds said:
Oh what a glorious Monday.
Click to expand...
As long as you never heard of the letters COIN. So much for hoping to get out of this with a $700 loss. I love how the market can spike up more than a percent and my account goes down.
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coin earnings are out.
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COIN earnings? Where do you see this?
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http://www.pinksheets.com/edgar/GetFilingH...ilingID=6897476edited to add when I searched the edgar system I did not find it for some reason and pinksheets seems to be the only place I see it.

 
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PRGN :wub:

I gotta figure out if this is the typical $4- $5.50 bounce and will come back down. Or is this the real rally everyone has been waiting for. This was a $20 stock 18 months ago.

Im thinking of just taking a small position in case.

 
Wow. It's been a perfect storm for PAL the past few days.

Tue Nov 17, 2009 8:07am EST

* Palladium sales to fall as Norilsk (GMKN.MM) output drops

"Russia, the world's leading producer of platinum group metal palladium, will cut sales to foreign markets due to lower output by its sole producer, Norilsk Nickel, Johnson Matthey (JMAT.L) said on Tuesday."

http://www.reuters.com/article/hotStocks...

Russia has been the main provider of Palladium for decades and there has been speculation that they are slowly running out and that any new areas they have tested for the metal has been to low to open a mine on. This may push Palladium prices even higher, and if so PAL will open the very rich mines they currently have on stand down and cause them to open mines on land very high in Palladium content. Mix in the Gold mines they own - and I think PAL is going to surge over the next 6 months.

Do your own DD, but I really like this company medium term. Your obviously geting on a moving car if you buy now, but there is still room to run here.

 
The Ref said:
Wow. It's been a perfect storm for PAL the past few days.

Tue Nov 17, 2009 8:07am EST

* Palladium sales to fall as Norilsk (GMKN.MM) output drops

"Russia, the world's leading producer of platinum group metal palladium, will cut sales to foreign markets due to lower output by its sole producer, Norilsk Nickel, Johnson Matthey (JMAT.L) said on Tuesday."

http://www.reuters.com/article/hotStocks...

Russia has been the main provider of Palladium for decades and there has been speculation that they are slowly running out and that any new areas they have tested for the metal has been to low to open a mine on. This may push Palladium prices even higher, and if so PAL will open the very rich mines they currently have on stand down and cause them to open mines on land very high in Palladium content. Mix in the Gold mines they own - and I think PAL is going to surge over the next 6 months.

Do your own DD, but I really like this company medium term. Your obviously geting on a moving car if you buy now, but there is still room to run here.
Click to expand...
I just trippled down. Bought 2600 @ 3.11. I now own 3,900 at $3.00.
 
Mose said:
COIN = worse stock ever....
Click to expand...
Yeah, COIN and FUQI. I don't even know what to do here. Was its report that bad? I can't make heads or tails of it. They have the conference call tomorrow. When the call was first reported, the stock shot up 10 cents. But now it has lost all of that and more. I just wanted it to go up to 82 cents this week so I could sell it at a little less than $700 loss. Instead, it hits 80 cents early yesterday and plummets to 66 cents. I don't know what to do on this one. I'd like to cut my losses, but not at $1,700.
 
Gadfly said:
Mose said:
COIN = worse stock ever....
Click to expand...
Yeah, COIN and FUQI. I don't even know what to do here. Was its report that bad? I can't make heads or tails of it. They have the conference call tomorrow. When the call was first reported, the stock shot up 10 cents. But now it has lost all of that and more. I just wanted it to go up to 82 cents this week so I could sell it at a little less than $700 loss. Instead, it hits 80 cents early yesterday and plummets to 66 cents. I don't know what to do on this one. I'd like to cut my losses, but not at $1,700.
Click to expand...
I had 2500 @ $1.05 and sold off 1500 today @ 0.67I'll let the other 1000 shares rot.
 
Gadfly said:
Mose said:
COIN = worse stock ever....
Click to expand...
Yeah, COIN and FUQI. I don't even know what to do here. Was its report that bad? I can't make heads or tails of it . They have the conference call tomorrow. When the call was first reported, the stock shot up 10 cents. But now it has lost all of that and more. I just wanted it to go up to 82 cents this week so I could sell it at a little less than $700 loss. Instead, it hits 80 cents early yesterday and plummets to 66 cents. I don't know what to do on this one. I'd like to cut my losses, but not at $1,700.
Click to expand...
:lmao:
 
itriple said:
PRGN :excited: I gotta figure out if this is the typical $4- $5.50 bounce and will come back down. Or is this the real rally everyone has been waiting for. This was a $20 stock 18 months ago.Im thinking of just taking a small position in case.
Click to expand...
Same here ... I admit I'm tempted to unload my priciest shares ($5.00 basis) here only, but continue holding everything else for a while ...This is another decent move in pps, despite today's down market ... gotta think these guys are going to use their cash to 1.) buy more ships (low-cost market; spot rates improving) and/or 2.) pay down debt (which is already at low levels within their industry). These guys are strong.
 
Boulder Toads said:
Same here ... I admit I'm tempted to unload my priciest shares ($5.00 basis) here only, but continue holding everything else for a while ...
Click to expand...
I probably would unload the higher priced one's at this time. As good as PRGN is and has been, we all know it is due for a totally unwarranted pullback.
 
The USD Index has rallied up .8%. Yet the Metals market has remains relatively unchanged. This is fascinating in that the metals market has recently decoupled from the USD Index on positive days and is directionally in line with the USD on down days. They should be moving in the same direction either way, but nobody wants to sell when the USD is up.

 
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