Gold mining stocks aren't tracking with the basic metal lately ie Barrick , Kinross , Goldcorp. However ,G at 39$ may be near a current bottom. Thinking about it anyway. ????
Gold mining stocks aren't tracking with the basic metal lately ie Barrick , Kinross , Goldcorp. However ,G at 39$ may be near a current bottom. Thinking about it anyway. ????
I feel like a guy who's gotten my butt kicked and keeps returning for another bruising but I bought a little more TA. Most of the analysts don't have much good to say about the company and usually I pay more attention to them. But I can't get past the fact that TA is in the electricity business - something we need during booms, recessions and anything in-between. It is trading pretty close to book value. Debt levels seem fairly reasonable for a utility. The payout ratio is tight but still covered - compare that to many energy (gas/oil) companies with this sort of dividend. And I don't think they will cut the 7+% dividend but if they do, it would probably be in the neighborhood of 5% - I can live with that. Even if they cut it in half, which I think is highly unlikely, it would be over 3.5 % - I can still live with that.
On the sell side I took advantage of recent strength to sell my shares of SLF. SLF is very correlated to markets and any further European nonsense will probably hammer the stock. Then I figure, even in boom markets, since the federal government is one of their biggest clients all these job cuts will have to start eating into their bottom line within a year or so time (the amount of grace given to most federal employees).
Last edited by Spidey; 2012-04-28 at 09:45 AM. Reason: Clarification
Originally Posted by Spidey
often when i see an investor buying a boringoldthing for slow&steady reasons, i find myself wondering why said investor does not sell a call option on the top.
i've never held & do not follow TA, but right now i'd be selling the september 18 calls. At the close friday the market was .33-.50, but i'd be looking for .38 or perhaps .40 if lucky.
if sold, these calls would push the current yield up to roughly 9.50%. This does not include any anticipated return from future rise in share price and/or future exercise of the option.
chances are good that investor will be able to harvest more calls in september, when the september calls expire. If all goes well, such a next harvest could boost his current return north of 10%.
not bad for a downtrodden stock ...
so anyone bought CHK ?
Lame. Sell front-months and rollout. September is dead money until...well, September.
And 18 is too far OTM. Sell May 17.
50 Goldcorp. I think this is the bottom.
Sure did a couple of weeks ago when shares dropped 10%.so anyone bought CHK ?
I'm holding long-term [though I'll book some profits along the way].
“Simplicity is the ultimate sophistication.”
In addition to the 50 shares I picked up today for the longer term...
-Bought 500 G.TO @ $37.78
-Sold 500 G.TO @ $37.88
LookAtMeHumble
Bought NOK @ $3.68 earlier this morning [will trade 1/2 and average down with the other 1/2].
Wow, LUN is nearing $5 [bought at $3.86 on last trading day of 2011 & holding forever, lol].
“Simplicity is the ultimate sophistication.”
KaeJS: G : 500 / 500 ??? why ? Thanks.
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