In my effort to keep this blog up to date with my trade activity, I have something I need to report. This week, on the 13th of November, I rolled over my SAND option position. The action of rolling simply means that I swapped one position for another with a later expiration, sometimes also changing the strike price and/or direction.
Prior to this change, I held the SAND Nov 17 2012 15.00 Call. I rolled it over into the SAND Dec 22 2012 15.00 Call. This was at a cost to me of an additional $46.32 after all fees and commissions were applied. So I will be looking for a brake-even point of $1.52 per contact share or better.
That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
SAND - Sandstorm Gold Ltd.
Thursday, November 15, 2012
Friday, November 9, 2012
Portfolio Update: Long Over Due
It has, once again, been too long since my last post. In the time that has passed there have been seven changes to my portfolio. I have made 5 purchases, 1 sale, and had an option position expire on me. The 4 of the 5 purchases and the one sale were strategic moves to my portfolio. The remaining 1 purchase and option expiration are my speculation plays.
To start I BTO additional shares in my ETP position. This purchase added to my dividend payout for the second phase of each quarter. This was done on the 3rd of October.
On the 8th of October, I BTO a SAND Nov 17 2012 $15 Call option position. This was done as my speculation play. Unfortunately, I have to admit that the decision to get in was poorly timed and selected. I should have waited for the pull back and then choose an expiration further out. As of this post, it is in the red but seems to be showing signs of improvement. I will be holding it until my profitable sale trigger is hit or it's expiration, which is a week away from this post.
On the 19th of October, my speculation play for FB Oct 20 2012 $15 Put options locked and expired. This was again an unfortunate speculation gone wrong. In hinds sight I should have taken my profits when I had them or probably should have chosen to purchase one option closer to the money instead of three so far out of the money. I still think FB is over-priced, but it seems that they are finally accepting that they have to make revenue in order to attract investors and are making changes that will actually create revenue even at the expense of loosing some of there ~1 billion users.
On the 31st of October, I STC my entire position of DE. I made this decision because DE did not fit the minimum yield requirement of my strategy of holding high dividend yielding stocks. Fortunately, I was able to get out with a very small profit.
On the 2nd of November, I BTO additional shares in two of my existing positions, T and VZ. These purchases added to my dividend payout for the second phase of each quarter. As a result I am almost 70% of my phase one dividend payouts, which are currently the largest.
Finally on the 7th of November, I BTO additional shares in my MCD position. This purchase added to my dividend payout for the third phase of each quarter. As a result I am almost 50% of my phase one dividend payouts.
Despite the fact that falling over the "Fiscal Cliff" will result in an increase of the dividend tax rate, I am not going to change my core strategy of building a portfolio of dividend paying stocks. My portfolio is not currently generating enough income to alter my effective tax rate significantly. I will, however, use the fear in the market to build up my positions.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
DE - Deere & Co.
ETP - Energy Transfer Partners LP
FB - Facebook CL A
MCD - McDonalds Corp
SAND - Sandstorm Gold LTD
STC - sell-to-close/sold-to-close
T - AT&T, Inc
VZ - Verizon Communications
To start I BTO additional shares in my ETP position. This purchase added to my dividend payout for the second phase of each quarter. This was done on the 3rd of October.
On the 8th of October, I BTO a SAND Nov 17 2012 $15 Call option position. This was done as my speculation play. Unfortunately, I have to admit that the decision to get in was poorly timed and selected. I should have waited for the pull back and then choose an expiration further out. As of this post, it is in the red but seems to be showing signs of improvement. I will be holding it until my profitable sale trigger is hit or it's expiration, which is a week away from this post.
On the 19th of October, my speculation play for FB Oct 20 2012 $15 Put options locked and expired. This was again an unfortunate speculation gone wrong. In hinds sight I should have taken my profits when I had them or probably should have chosen to purchase one option closer to the money instead of three so far out of the money. I still think FB is over-priced, but it seems that they are finally accepting that they have to make revenue in order to attract investors and are making changes that will actually create revenue even at the expense of loosing some of there ~1 billion users.
On the 31st of October, I STC my entire position of DE. I made this decision because DE did not fit the minimum yield requirement of my strategy of holding high dividend yielding stocks. Fortunately, I was able to get out with a very small profit.
On the 2nd of November, I BTO additional shares in two of my existing positions, T and VZ. These purchases added to my dividend payout for the second phase of each quarter. As a result I am almost 70% of my phase one dividend payouts, which are currently the largest.
Finally on the 7th of November, I BTO additional shares in my MCD position. This purchase added to my dividend payout for the third phase of each quarter. As a result I am almost 50% of my phase one dividend payouts.
Despite the fact that falling over the "Fiscal Cliff" will result in an increase of the dividend tax rate, I am not going to change my core strategy of building a portfolio of dividend paying stocks. My portfolio is not currently generating enough income to alter my effective tax rate significantly. I will, however, use the fear in the market to build up my positions.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
DE - Deere & Co.
ETP - Energy Transfer Partners LP
FB - Facebook CL A
MCD - McDonalds Corp
SAND - Sandstorm Gold LTD
STC - sell-to-close/sold-to-close
T - AT&T, Inc
VZ - Verizon Communications
Wednesday, September 26, 2012
Portfolio Update
In this post, I only have one thing to add. My position in CNK has been added to. This addition increases my dividend payouts for the third phase of each quarter (i.e. March, June, September, and December). This is in line with my current, and most self-relevant, investing strategy.
This strategy quite simple. It is to have a portfolio of dividend paying stocks from well run companies. The dividend payout of each of these stocks have generally predictable payout dates which allow me to spread my picks out into the three phases of each quarter so that I can eventually equalize my expectations.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CNK - Cinemark Holdings Inc.
This strategy quite simple. It is to have a portfolio of dividend paying stocks from well run companies. The dividend payout of each of these stocks have generally predictable payout dates which allow me to spread my picks out into the three phases of each quarter so that I can eventually equalize my expectations.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CNK - Cinemark Holdings Inc.
Real Economical Solutions Based on Basic Economic Principles
Republicans and Democrats still can't agree on how to fix the economy. As a result, nothing gets done so the Federal Reserve, caught in the middle, ends up doing the only thing they can do, print currency and then lend it to banks for free and use it to buy up the bad mortgage backed securities (MBS) the banks themselves created. The result is that unemployment is still high, the housing market is still lethargic, and home prices are finally going up, but slowly.
The problem I see is that the majority of the politicians are self-serving to their own party so that they can get re-elected verses focusing on the final objective. That objective being to support an economic environment that allows for companies to grow in both financial and employee numbers while protecting the common good of the employees by expecting companies to provide a safe work environment at fare wages. Government has no other duty to perform in this situation at this time.
To accomplish this there is no one simple answer, but there is a list of simple solutions that, when put together, will see results. You will see things that might have benefited you in the past taken away, but you will see others things that will benefit you in the future. Before going any further you must remove yourself from the equation and let all of it sink in.
First, put all the pre-Clinton financial regulations back in place. They were there for what should be, now, obvious reasons. To put it simply, protect the markets up-side bias. The principle of supply and demand will take care of the rest.
Second, simplify the income tax code. A single tax rate, no matter the number, is all that is needed to get those who earn more to pay more. For example, 10% of $100,000 ($10,000) is already 10 times more than 10% of $10,000 ($1,000). Let me put this simply. There is only one reason you shouldn't pay tax. You didn't earn any income to start with.
Third, all taxes should be collected by the state you live in. The states responsibility is to pay their tax to the union. That is the constitutional way according to the general interpretation of the line, "no taxation without representation." A copy of your taxes should go to both the state and federal IRS as a matter of accountability and auditing between your state and the union so that national expenses that serve and protect the public good can get paid, like defence, infrastructure, and routine medical services (antibiotics and band-aids to vaccinations and x-rays; emergency surgery for accidents that created a life-n-death situation is an exception that should also be included). The rest is up to the individual to pay for. Get your own insurance or suffer the consequences. Government medical care is something that should be, and will have to be, weaned off of.
Forth, only charge import tax on non-raw materials. Raw materials still require man hours to make into a final product. And because of that, jobs will have to be created here in the US. Also, the tax can then be collected from the new worker as income tax. As regards to exports, I currently have no solution but I am open to suggestions.
Fifth, and probably one of the most important for individuals and tax revenue, is to increase minimum wage. If lower income wage earners have more income they will be less inclined to need assistance and more inclined to spend more. They see what the "Jones'" have next door, and by default they will try to "keep up." They will be able to feed themselves and still have enough to buy more.
Sixth, and only as minimum wage gets increased, restrict entitlements slowly but drastically. This includes "Obamacare." Now that the "playing field" is leveled, there is incentive not to be sitting at home collecting a check. People will know that if they want something they will have to work for it. People will know that they will have to be responsible for themselves.
The answers to these problems are literally elementary. Essentially, everything is fair and balanced. Everyone pays a fair tax for every dollar they earn. Companies are allowed to hire knowing that their only burden is to pay a fair wage to their employees and all employees know they are to be responsible for themselves. If you think I say this as some self-entitled rich person with a silver spoon in my mouth, you'd be wrong. As of this writing I'm a lower middle-class wage earner that paid, in 2011, an effective tax rate of around 15.3%.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
The problem I see is that the majority of the politicians are self-serving to their own party so that they can get re-elected verses focusing on the final objective. That objective being to support an economic environment that allows for companies to grow in both financial and employee numbers while protecting the common good of the employees by expecting companies to provide a safe work environment at fare wages. Government has no other duty to perform in this situation at this time.
To accomplish this there is no one simple answer, but there is a list of simple solutions that, when put together, will see results. You will see things that might have benefited you in the past taken away, but you will see others things that will benefit you in the future. Before going any further you must remove yourself from the equation and let all of it sink in.
First, put all the pre-Clinton financial regulations back in place. They were there for what should be, now, obvious reasons. To put it simply, protect the markets up-side bias. The principle of supply and demand will take care of the rest.
Second, simplify the income tax code. A single tax rate, no matter the number, is all that is needed to get those who earn more to pay more. For example, 10% of $100,000 ($10,000) is already 10 times more than 10% of $10,000 ($1,000). Let me put this simply. There is only one reason you shouldn't pay tax. You didn't earn any income to start with.
Third, all taxes should be collected by the state you live in. The states responsibility is to pay their tax to the union. That is the constitutional way according to the general interpretation of the line, "no taxation without representation." A copy of your taxes should go to both the state and federal IRS as a matter of accountability and auditing between your state and the union so that national expenses that serve and protect the public good can get paid, like defence, infrastructure, and routine medical services (antibiotics and band-aids to vaccinations and x-rays; emergency surgery for accidents that created a life-n-death situation is an exception that should also be included). The rest is up to the individual to pay for. Get your own insurance or suffer the consequences. Government medical care is something that should be, and will have to be, weaned off of.
Forth, only charge import tax on non-raw materials. Raw materials still require man hours to make into a final product. And because of that, jobs will have to be created here in the US. Also, the tax can then be collected from the new worker as income tax. As regards to exports, I currently have no solution but I am open to suggestions.
Fifth, and probably one of the most important for individuals and tax revenue, is to increase minimum wage. If lower income wage earners have more income they will be less inclined to need assistance and more inclined to spend more. They see what the "Jones'" have next door, and by default they will try to "keep up." They will be able to feed themselves and still have enough to buy more.
Sixth, and only as minimum wage gets increased, restrict entitlements slowly but drastically. This includes "Obamacare." Now that the "playing field" is leveled, there is incentive not to be sitting at home collecting a check. People will know that if they want something they will have to work for it. People will know that they will have to be responsible for themselves.
The answers to these problems are literally elementary. Essentially, everything is fair and balanced. Everyone pays a fair tax for every dollar they earn. Companies are allowed to hire knowing that their only burden is to pay a fair wage to their employees and all employees know they are to be responsible for themselves. If you think I say this as some self-entitled rich person with a silver spoon in my mouth, you'd be wrong. As of this writing I'm a lower middle-class wage earner that paid, in 2011, an effective tax rate of around 15.3%.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Wednesday, September 12, 2012
Mark Speaks, Facebook Jumps
Tuesday, as investors anticipated what Facebook CEO, Mark Zuckerberg, would say at his TechCrunch Disrupt appearance, the stock price for Facebook climbed and then and held on to a 3.3% gain by the close of the regular session. An hour after the close, Mark took the stage and fielded questions.
The first set of questions focused on the stock price. Mark didn't hesitate to accept that it was disappointing to see it so low, but then, in what always seems like the same breath, began to reaffirm that it doesn't change the long term mission of the company. He insisted that revenue growth is not taking a back seat to the mission of delivering great services to the users, and that he realizes the importance of balancing the two.
In his answer about generating revenue from mobile, he stated that Facebook is seeing greater revenue growth from it's sponsored stories then it ever saw from the right side ads on the desktop site. (A question about accidental clicks comes to mind but was not addressed, nor was user satisfaction.)
Mark also fielded a question about employee moral in regards to the stock price and it's effect on employee stock options. He indicated that the lower stock price provided an opportunity for potential employees who are believers in the mission of Facebook to apply now, or, if an existing employee, to double down.
As for products in the pipeline, Mark clearly stated the position that Facebook will not be going into hardware anytime soon. There is no Facebook phone is in the works. Facebook is, however, looking into other ways to monetize both desktop and mobile. They are very happy with the native Apple iOS version of the Facebook app and will be continuing to improve it, and they are currently working on building the native Andriod version. Without specifying a date, Mark said it would be out soon. When pressed, he said "when it's ready and hopefully not before." Additionally, Mark indicated that "search" as a product is something that they have beem working on, but gave only an example of how it would be used to promote Facebook's mission of openness and social connectivity.
As a point of trivial interest that illustrates Marks understanding of how importent mobile is to Facebook's future, he said that the Letter to Investors that came with the S-1 filing was writen by him on his mobile device.
Everything that I covered above, and details that I left out, resulted in an additional after hours gain of about 3.45%. Current asking price is $20.10. You would think that this would change my opinion of Facebook; hardley! In all honesty, I am not one of those people that believes that Facebook will go the way of MySpace. I believe Facebook does have a long term story. However, I do not believe that Facebook deserves it's current valuation. I am fairly certain that it will continue to move positively the next couple of days, if not longer, but my value analysis of the financials does not make me feel confident with the idea of taking a bullish stance on it just yet. That's my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
Saturday, September 1, 2012
Portfolio Update
Since my last portfolio update, I have only one change to document. On Wednesday, the 29th of August, I added to my JNJ position. This purchase occurred near the first Fibonacci extension level from it's most recent high. Since then, JNJ has already bounced back up and closed above my purchase price for this position.
As confirmation of my plans for future purchases, I will be focused on adding to my current positions. The speculation portion of my portfolio continues to be put positions against FB as I didn't sell when my principle was doubled at the beginning of August. Although FB didn't rebound much before starting to go down again. Because it's price is eroding so slowly, I have also watched the value of my puts erode as well. I personally believe FB has much more to go down (Facebook Not Remotely Worth 38$) so I might be able to regain some profitable value before their October expiration. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
FB - Facebook, Inc.
JNJ - Johnson & Johnson
As confirmation of my plans for future purchases, I will be focused on adding to my current positions. The speculation portion of my portfolio continues to be put positions against FB as I didn't sell when my principle was doubled at the beginning of August. Although FB didn't rebound much before starting to go down again. Because it's price is eroding so slowly, I have also watched the value of my puts erode as well. I personally believe FB has much more to go down (Facebook Not Remotely Worth 38$) so I might be able to regain some profitable value before their October expiration. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
FB - Facebook, Inc.
JNJ - Johnson & Johnson
Tuesday, August 14, 2012
Portfolio Update
I have made a few changes to my portfolio over the past, almost, two months. The first set of changes were made on the 27th of July as I STC my ZNGA position for a loss that I could not bare to see grow any further, as well as my CIM position for the same reason. I need more profitable choices in my portfolio that will pay me dividends while growing or at least hold on to their value. But since speculating keeps me attentive to the market I will do it with options. This way, while I can see more exciting gains from option trades, I can narrowly define my losses better. So for longer term purchases I will be buying stocks, and for excitement trade options.
With the cash I freed by STC my ZNGA and CIM positions, I first BTO, as a trade, Puts against FB. My reasons being that I don't see them bottoming at this current time and that I believe the lockout which expires this week will result in an even lower price. Next I BTO a position into AGNC another REIT with growth and a better dividend than CIM and it's commercial counter-part NLY. These trades were made on the same 27th of July
Finally, on the 8th of August I BTO a position in ETP. I believe the price has become low enough that the dividend yield is too attractive not to buy. I want to continue to add to this position as time goes by but the majority of my free cash is not allocated for positions in a few other stocks to balance out my monthly dividend payout strategy. I will allocate more cash to purchase ETP and the other dividend paying stocks in my portfolio as the capital gets added from my day job. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AGNC - American Capital Agency Corp.
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corporation
ETP - Energy Transfer Partners LP
FB - Facebook, Inc.
STC - sell-to-close / sold-to-close
ZNGA - Zynga Inc.
With the cash I freed by STC my ZNGA and CIM positions, I first BTO, as a trade, Puts against FB. My reasons being that I don't see them bottoming at this current time and that I believe the lockout which expires this week will result in an even lower price. Next I BTO a position into AGNC another REIT with growth and a better dividend than CIM and it's commercial counter-part NLY. These trades were made on the same 27th of July
Finally, on the 8th of August I BTO a position in ETP. I believe the price has become low enough that the dividend yield is too attractive not to buy. I want to continue to add to this position as time goes by but the majority of my free cash is not allocated for positions in a few other stocks to balance out my monthly dividend payout strategy. I will allocate more cash to purchase ETP and the other dividend paying stocks in my portfolio as the capital gets added from my day job. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AGNC - American Capital Agency Corp.
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corporation
ETP - Energy Transfer Partners LP
FB - Facebook, Inc.
STC - sell-to-close / sold-to-close
ZNGA - Zynga Inc.
Thursday, June 21, 2012
Portfolio Update
Once again, I have made changes to my portfolio, so here is my portfolio update. Since I have been adding cash to my account, I had enough to make an order. I chose to add to my CNK position in the event that it would pull back to $21.50.
Well, it did. But a little more than I had expected. Apparently the Federal Reserve statements, Existing Home Sales, and Jobless Claims reports this week didn't give the market much solace, even though the European economic scene seems to have stabilized for the moment. But that can change any day.
I will continue to add cash to my account and put in orders to add to my existing positions. I believe the market will be more bearish this summer as Congress continues to perpetrate what they can to force a presidential change this fall by doing nothing that the current president has asked them to do. This is not me saying that I support Barack Obama, nor do I support Mitt Romney. I am of the opinion that Presidents have become nothing more than figure-heads. It is congress that actually has all the real power to help the economy.That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CNK - Cinemark Holdings, Inc.
Well, it did. But a little more than I had expected. Apparently the Federal Reserve statements, Existing Home Sales, and Jobless Claims reports this week didn't give the market much solace, even though the European economic scene seems to have stabilized for the moment. But that can change any day.
I will continue to add cash to my account and put in orders to add to my existing positions. I believe the market will be more bearish this summer as Congress continues to perpetrate what they can to force a presidential change this fall by doing nothing that the current president has asked them to do. This is not me saying that I support Barack Obama, nor do I support Mitt Romney. I am of the opinion that Presidents have become nothing more than figure-heads. It is congress that actually has all the real power to help the economy.That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CNK - Cinemark Holdings, Inc.
Friday, June 8, 2012
Portfolio Update
I am a little behind schedule on reporting my portfolio updates. Since my last update, I have changed some of my opinions a little. I have also added to my account so that I have some additional cash to invest.
First, I have restarted auto deposits into my investing account and my IRA. Both of which are under-funded. I especially have a lot of catching up to do in my IRA. However, further information about that is outside the scope of this post.
Second, I STC my puts against FB. The result was that I raked in ~37% profit on that short trade.
Lastly, I then took the profit and the capital that I had pending for one of my other dividend paying stock picks, CNK, and added to my already existing positions of JNJ and PG. I then re-evaluated the chart for CNK and decided to buy a third of the shares I was planning on at the higher price it was currently around. Unfortunately, CNK has declined a little since I BTO the position today. I am still currently satisfied with my positions. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open / bought-to-open
CNK - Cinemark Holdings Inc
FB - Facebook Inc.
IRA - Individual Retirement Account
JNJ - Johnson & Johnson
PNG - Proctor & Gamble Co
STC - sell-to-close / sold-to-close
First, I have restarted auto deposits into my investing account and my IRA. Both of which are under-funded. I especially have a lot of catching up to do in my IRA. However, further information about that is outside the scope of this post.
Second, I STC my puts against FB. The result was that I raked in ~37% profit on that short trade.
Lastly, I then took the profit and the capital that I had pending for one of my other dividend paying stock picks, CNK, and added to my already existing positions of JNJ and PG. I then re-evaluated the chart for CNK and decided to buy a third of the shares I was planning on at the higher price it was currently around. Unfortunately, CNK has declined a little since I BTO the position today. I am still currently satisfied with my positions. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open / bought-to-open
CNK - Cinemark Holdings Inc
FB - Facebook Inc.
IRA - Individual Retirement Account
JNJ - Johnson & Johnson
PNG - Proctor & Gamble Co
STC - sell-to-close / sold-to-close
Wednesday, May 30, 2012
Portfolio Update
Since my last update where I purchased shares in ZNGA, it has tragically declined. However, as one of my few speculation plays, I intend on adding to my position if there next earnings report, indicates improvements I can believe as reasonable expectations.
Also, since my last update I purchased shares of YUM, as it finally came down enough to trigger my limit order. Now I only have one more stock to buy that rounds out my dividend strategy. It, however, seems to be resisting the market pressures better than I expected.
In the mean time I have taken advantage of the opening of FB on the option market to buy put options against it. I am extremely disappointed in its extreme over-valuation. I am expecting continued declines into the low 20s, if not further. That is my opinion, you can take it, or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
FB - Facebook Inc
YUM -YUM Brands Inc
ZNGA - Zynga Inc
Also, since my last update I purchased shares of YUM, as it finally came down enough to trigger my limit order. Now I only have one more stock to buy that rounds out my dividend strategy. It, however, seems to be resisting the market pressures better than I expected.
In the mean time I have taken advantage of the opening of FB on the option market to buy put options against it. I am extremely disappointed in its extreme over-valuation. I am expecting continued declines into the low 20s, if not further. That is my opinion, you can take it, or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
FB - Facebook Inc
YUM -YUM Brands Inc
ZNGA - Zynga Inc
Wednesday, May 23, 2012
Facebook Not Remotely Worth 38$
On Friday, FB IPO'd at 38$. The thing is that they only earned 43¢ per share last year. That puts their current P/E ratio at over 88. Even if we look at foward looking estimates. They are still over priced to a P/E of about 55.
Now lets look at GOOG. They only have a P/E of about 18. So if we do the math of using FB earnings times GOOG P/E we have a relative price for FB of less than 8$. So far, the market agrees as FB price dropped to 31$ and is struggling to not drop any more.
My opinion? I'm putting it to practice. I've put an order in for under 8$. That is my opinion, you can take it, or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
FB - Facebook, Inc.
GOOG - Google Inc
IPO - initial public offering
P/E - price-to-earnings ratio
Now lets look at GOOG. They only have a P/E of about 18. So if we do the math of using FB earnings times GOOG P/E we have a relative price for FB of less than 8$. So far, the market agrees as FB price dropped to 31$ and is struggling to not drop any more.
My opinion? I'm putting it to practice. I've put an order in for under 8$. That is my opinion, you can take it, or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
FB - Facebook, Inc.
GOOG - Google Inc
IPO - initial public offering
P/E - price-to-earnings ratio
Sunday, April 29, 2012
Portfolio Update
In my last post I mentioned having two more positions I wanted to open but who's limits were much lower, and that I didn't want to raise the limits any higher with out good reason. That hasn't changed. However, I did make a purchase.
On the 27th I purchased sharers of ZNGA. The position I have now is strill small and only used up the small amount of cash I did not have already allocated for the two other positions. I am still looking for my last two orders to execute later on, possibly during the summer months.
Also, on the 27th, I received a dividend payout from my holding of CIM. This payout makes me feel very positive about the strategy I am using. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp
ZNGA - Zynga Inc.
On the 27th I purchased sharers of ZNGA. The position I have now is strill small and only used up the small amount of cash I did not have already allocated for the two other positions. I am still looking for my last two orders to execute later on, possibly during the summer months.
Also, on the 27th, I received a dividend payout from my holding of CIM. This payout makes me feel very positive about the strategy I am using. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp
ZNGA - Zynga Inc.
Tuesday, April 24, 2012
Portfolio Update
Since my last post I've BTO more positions. On April 10th, after I had already posted, I BTO a position into VZ. On April 17th I BTO a position into JNJ. And on April 23rd I BTO a position into PG. Also, on April 16th I received interest for the cash sitting in my account.
My entering into the PG position was partially a result of me tightening the limit of the order to less than a dollar of its Friday close. The other part was an unexpected reaction to the European and Chinese economic news. Today, however, PG rose back above my entry point. (As of the publishing of this article, PG is below my entry but up for the day.) My current concern is that the market cliche of 'as goes the month of January, so goes the market' will not be true this coming summer after PG earnings this coming Friday. If my concern is realized, I will look for an opportunity to average down my cost basis by adding to the position as close to the lows as I can. I may then STC the first PG position if it recovers.
I still have two more positions I want to open in order to balance out my monthly dividend payout strategy. However, I don't want to tighten my limit orders any further without good reason. I will be leaving them as is for now. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
JNJ - Johnson & Johnson
PG - The Procter & Gamble Co.
STC - sell-to-close/sold-to-close
VZ - Verizon Communications Inc.
My entering into the PG position was partially a result of me tightening the limit of the order to less than a dollar of its Friday close. The other part was an unexpected reaction to the European and Chinese economic news. Today, however, PG rose back above my entry point. (As of the publishing of this article, PG is below my entry but up for the day.) My current concern is that the market cliche of 'as goes the month of January, so goes the market' will not be true this coming summer after PG earnings this coming Friday. If my concern is realized, I will look for an opportunity to average down my cost basis by adding to the position as close to the lows as I can. I may then STC the first PG position if it recovers.
I still have two more positions I want to open in order to balance out my monthly dividend payout strategy. However, I don't want to tighten my limit orders any further without good reason. I will be leaving them as is for now. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
JNJ - Johnson & Johnson
PG - The Procter & Gamble Co.
STC - sell-to-close/sold-to-close
VZ - Verizon Communications Inc.
Tuesday, April 10, 2012
Portfolio Update
The last portfolio update I made covered a stock purchase of DE. Since then I have added another equity to my account. On April 5th, I BTO a position into T. As of that date, I now have a quarterly dividend being payed to me every month. This does not include the fact that the TLT seems to pay me a dividend every month, I say seems as I have received a deposit of interest from this bond fund every month last quarter.
Outside of the new position that I have opened, I have adjusted my limit order prices for the remaining five equities I have in my plan to purchase. These five equities may change as I compare them against their competitors, looking for the ones I believe fit my criteria of paying good dividends, have relative growth potential, and are priced in at a level I can afford. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
DE - Deere & Co.
T - AT&T Inc.
TLT - iShares Trust Barclays 20+Year Treasury Bond Fund
Outside of the new position that I have opened, I have adjusted my limit order prices for the remaining five equities I have in my plan to purchase. These five equities may change as I compare them against their competitors, looking for the ones I believe fit my criteria of paying good dividends, have relative growth potential, and are priced in at a level I can afford. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
DE - Deere & Co.
T - AT&T Inc.
TLT - iShares Trust Barclays 20+Year Treasury Bond Fund
Tuesday, March 27, 2012
Portfolio Update
Since my last update, I bought more shares of DE. In that same time period I received a dividend payout from MCD and interest from my cash sweep account. Minor gains, but in line with the new slower paced plan I've decided to use. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
DE - Deere &Co.
MCD - McDonalds Corp
Thursday, March 15, 2012
Portfolio Update
In my last update I posted that I added DE, ETP, and PEP to my portfolio in accordance with the investing strategy of buying share in strong companies with sustainable dividends with the goal of being paid every month. I have since then added MCD to my portfolio. MCD has not held its value as well, but the decline does not yet seem to be justified as anymore than profit taking.
My position in the TLT has paid out again this month. Unfortunately, the volume in the bond market is now reversing. As a result of the recent decline, I have lowered my limit order even more. No point in over paying.
I have also made adjustments to my other orders. Some of them I have increased the limit and reduced the number of shares I will purchase because they have moved higher recently. Others I have lowered because I think I see better entries at lower prices based on my technical analysis. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
DE - Deere & Co.
ETP - Energy Transfer Partners, LP
MCD - McDonalds Corp
PEP - Pepsico Inc.
TLT - iShares Trust Barclays 20+ Year Treasury Bond
Sunday, March 4, 2012
Portfolio Update
This post covers a few new changes to my portfolio. On March 1st, I made two purchase for my investing account. The first of my two purchases was for a pair of DE shares. The second of my two purchases was for a pair of PEP shares. On March 2nd, I made a purchase of an additional pair of ETP shares to add to my portfolio's existing shares.
The purpose behind my most recent purchases were based on the following facts. These are dividend paying stocks. These stocks have shown to be strong earners. The dividend payouts of these stocks increase my monthly income for eight of the twelve months of the year. I am however, still missing four months of payouts; January, April, July, and October. I have orders for stocks that cover these months and I am waiting and watching for them to be executed. This all falls in line with my current strategy. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
DE - Deere & Co.
ETP - Energy Transfer Partners, LP
PEP - Pepsico Inc.
The purpose behind my most recent purchases were based on the following facts. These are dividend paying stocks. These stocks have shown to be strong earners. The dividend payouts of these stocks increase my monthly income for eight of the twelve months of the year. I am however, still missing four months of payouts; January, April, July, and October. I have orders for stocks that cover these months and I am waiting and watching for them to be executed. This all falls in line with my current strategy. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
DE - Deere & Co.
ETP - Energy Transfer Partners, LP
PEP - Pepsico Inc.
Friday, February 17, 2012
Portfolio Update
This week I have an update to make about my portfolio. I have added a position with a company I use to trade in the past. Instead of trading this security I will be adding it to my standard list of stocks that I hold for the dividend.
The symbol for this security is ETP. I only have a small position it it at this time, but as I add funds to my account I will be extending my position with this security as well as others that I have on my watch list and have open orders for. Other than the new position, I also received a dividend payout for my position in TLT.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
ETP - Energy Transfer Partners, LP
TLT - IShares Trust Barclays 20+Year Treasury Bond Fund
The symbol for this security is ETP. I only have a small position it it at this time, but as I add funds to my account I will be extending my position with this security as well as others that I have on my watch list and have open orders for. Other than the new position, I also received a dividend payout for my position in TLT.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
ETP - Energy Transfer Partners, LP
TLT - IShares Trust Barclays 20+Year Treasury Bond Fund
Friday, February 3, 2012
Portfolio Update
As mentioned in my last post, I will be buying high dividend paying stocks. I will specifically be targeting stocks that have PEG ratios that are under 2.0. One of them I just BTO today is MCD. With a yields of 2%
I wanted to open a MCD position with a cost basis of no more than $500 as I spread my equity exposure across several stocks, so I only purchased 2 shares today with another order to buy 2 more at $90. I am not anticipating it to drop that much but I am attempting to not over pay for my position. I am aiming low with the assumption that some totally irrelevant news will temporarily drag the stock down like the news in Europe did last year.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
MCD - Mc Donalds Inc.
I wanted to open a MCD position with a cost basis of no more than $500 as I spread my equity exposure across several stocks, so I only purchased 2 shares today with another order to buy 2 more at $90. I am not anticipating it to drop that much but I am attempting to not over pay for my position. I am aiming low with the assumption that some totally irrelevant news will temporarily drag the stock down like the news in Europe did last year.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
MCD - Mc Donalds Inc.
Wednesday, February 1, 2012
Portfolio Update
It has been about a month since my last post. Since them I made a few portfolio changes. This post covers them and a few thoughts.
On January 12th, I STC my IWM position to get my cash back in my trading account. I did this because I want the equity percentage of my trading account to be heavier with high dividend paying stocks and not just the general market. I opened BTO orders for these high dividend paying stocks on steep pull backs since they are running to strong for me to chase them. I am adjusting this BTO prices every night as they make new highs.
Since I STC 99% of my ZNGA position, it has rebounded, dived and bounced back with a vengeance to and above the price I originally bought my position. This is despite them being outed for their copycat strategy of taking the idea of an already existing game, re-skinning the interface with only slight changes, and calling it their own. (http://tinyurl.com/7rpxgq7) Now, I don't know if they copied the code also, but the game-play is reported to be the same as well. I speculate that this could become a cause for a class-action suite against them for theft of intellectual property. This make's me hesitant to get back into it since I don't have the time to watch the stock all day. I decided to sell a Cash-Secured Put to buy back in if it falls below $9 by Feb 18th. I certainly don't want to buy back in at this time after losing out on all the upside it has already had.
Over the past month I also received dividends for CIM, IWM, and TLT. With the sale of IWM I am no longer qualified for any more IWM dividends after this point. CIM still continues to pay out the mass majority of it's earnings, unfortunately the earnings are still quite small at this time and it's price is below where I BTO. I will not be buying any more CIM until I see it promise better earnings. My TLT position is slightly dropping in cash value, reducing my portfolios position in treasury bonds. However, I will not be BTO more TLT until it drops even more.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
CIM - Chimera Investment Corp.
IWM - iShares Russel 2000 Index Fund
STC - sell-to-close/sold-to-close
TLT - iShares Barclays 20+ Year Treasury Bond Fund
ZNGA - Zynga, Inc.
On January 12th, I STC my IWM position to get my cash back in my trading account. I did this because I want the equity percentage of my trading account to be heavier with high dividend paying stocks and not just the general market. I opened BTO orders for these high dividend paying stocks on steep pull backs since they are running to strong for me to chase them. I am adjusting this BTO prices every night as they make new highs.
Since I STC 99% of my ZNGA position, it has rebounded, dived and bounced back with a vengeance to and above the price I originally bought my position. This is despite them being outed for their copycat strategy of taking the idea of an already existing game, re-skinning the interface with only slight changes, and calling it their own. (http://tinyurl.com/7rpxgq7) Now, I don't know if they copied the code also, but the game-play is reported to be the same as well. I speculate that this could become a cause for a class-action suite against them for theft of intellectual property. This make's me hesitant to get back into it since I don't have the time to watch the stock all day. I decided to sell a Cash-Secured Put to buy back in if it falls below $9 by Feb 18th. I certainly don't want to buy back in at this time after losing out on all the upside it has already had.
Over the past month I also received dividends for CIM, IWM, and TLT. With the sale of IWM I am no longer qualified for any more IWM dividends after this point. CIM still continues to pay out the mass majority of it's earnings, unfortunately the earnings are still quite small at this time and it's price is below where I BTO. I will not be buying any more CIM until I see it promise better earnings. My TLT position is slightly dropping in cash value, reducing my portfolios position in treasury bonds. However, I will not be BTO more TLT until it drops even more.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
CIM - Chimera Investment Corp.
IWM - iShares Russel 2000 Index Fund
STC - sell-to-close/sold-to-close
TLT - iShares Barclays 20+ Year Treasury Bond Fund
ZNGA - Zynga, Inc.
Wednesday, January 4, 2012
Portfolio Update
Again, it has been too long since my last post. It is now 2012. So here is the good and the bad for the end of November 2011 and all of December 2011.
In November, while looking over my losers of the past year, I came to accept that with the macro-economical news causing such aggravating swings, I can not play the trader game while still holding down a J.O.B. for 8 hours a day. So with that I decided that I will start applying a variation of the Asset Allocation Strategy of 4 cycle diversification. So with that I increased the gold position of my portfolio with the cash I liquidated from my losers. I BTO additional shares of GLD on November 21, 2011 and again on December 13, 2011 to dollar cost average my position down. As of the close of the market on January 3, 2012, GLD is at $155.92.
While making the transition to an Asset Allocation Strategy based portfolio, I took a short term gamble on the IWM ETF continuing to tank on December 9th after already tanking on the 8th. So I BTO a Jan 21 2012 72.00 Put. However, it reversed and I closed it out for a loss. To make things worse, the follow days saw IWM go back down again before bouncing back up.
Furthering along the transition into an Asset Allocation Strategy based portfolio, I BTO my position into the TLT ETF on December 9th. I then purchased again on December 14th and 20th. Since then, TLT has declined.
As one last gamble for 2011 I BTO a position into the ZNGA IPO. Unfortunately I BTO too high and closed out 99% of my position for a loss. Since then, ZNGA has bee trading above my close out price.
For the coming year, I will only be buying shares of GLD, TLT, and dividend paying stocks. All other positions I currently hold will be held until I am able to collect a profit or collect premiums through options.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open / bought-to-open
GLD - SPDR Gold Shares
ETF - Exchange Traded Funds
IPO - initial public offering
IWM - iShares Russell 2000 Index Fund
TLT - iShares Barclays 20+ Year Treasury Bond Fund
ZNGA - Zynga Inc.
In November, while looking over my losers of the past year, I came to accept that with the macro-economical news causing such aggravating swings, I can not play the trader game while still holding down a J.O.B. for 8 hours a day. So with that I decided that I will start applying a variation of the Asset Allocation Strategy of 4 cycle diversification. So with that I increased the gold position of my portfolio with the cash I liquidated from my losers. I BTO additional shares of GLD on November 21, 2011 and again on December 13, 2011 to dollar cost average my position down. As of the close of the market on January 3, 2012, GLD is at $155.92.
While making the transition to an Asset Allocation Strategy based portfolio, I took a short term gamble on the IWM ETF continuing to tank on December 9th after already tanking on the 8th. So I BTO a Jan 21 2012 72.00 Put. However, it reversed and I closed it out for a loss. To make things worse, the follow days saw IWM go back down again before bouncing back up.
Furthering along the transition into an Asset Allocation Strategy based portfolio, I BTO my position into the TLT ETF on December 9th. I then purchased again on December 14th and 20th. Since then, TLT has declined.
As one last gamble for 2011 I BTO a position into the ZNGA IPO. Unfortunately I BTO too high and closed out 99% of my position for a loss. Since then, ZNGA has bee trading above my close out price.
For the coming year, I will only be buying shares of GLD, TLT, and dividend paying stocks. All other positions I currently hold will be held until I am able to collect a profit or collect premiums through options.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open / bought-to-open
GLD - SPDR Gold Shares
ETF - Exchange Traded Funds
IPO - initial public offering
IWM - iShares Russell 2000 Index Fund
TLT - iShares Barclays 20+ Year Treasury Bond Fund
ZNGA - Zynga Inc.
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