My Best Ideas 8 July 2018 This is a list of companies that have a very nice estimated one year return on invested capital based on the sum of the delta of the one year estimated price target plus the calculated one year dividend yield. (Full List)
New Highs 8 July 2018 This is a list of companies that are currently hitting new highs plus have an estimated 5 year earnings growth rate in excess of 25%. As this growth is recognized, these shares are pushed higher and become good swing trades. (Full List)
Dividend Increases 9-13 July 2018 This is a list of companies that have recently increased their dividends. The list includes the amount plus the per cent increase, the forward dividend yield, and the ExDividend, Record and Payment dates. (Full List)
It's Q2 Earnings Season 15 July 2018 It's earnings season once again. That should be good news but we're just not seeing it in the markets. They continue to drift sideways. In fact the DJIA is barely higher than it was at the end of 2017. Luckily the 200 dma continues to rise and provide support, but most moves higher hit resistance well before the DOW hits 26K. Tariffs and taxes are now starting to realign the world's economies, the Chinese markets are continuing to experience downward pressure, the cost of living continues to rise on both sides of the Pacific, and the yield curve is flattening. To make things even worse, we're now seeing some of this same turbulence starting to occur with our trading partners across the Atlantic Ocean. All this tells me there's just going to be more churning in the weeks ahead. Monday Close: Not a good day for technology as Amazon's Prime Day started out pretty glitchy and Netflix reported less than expected viewer growth. In addition the President's visit with Putin put a lid on things early in the day. By late afternoon things started to get better but it was too late for the SPX and NASDAQ. The DOW, however, ended up 44 points. Tuesday Close: Cross currents once again sank the markets at the open but that quickly reversed and markets headed higher. By 11am markets were once again in the black and heading even higher. At the close the DOW was up 55 points. Short term the markets remain in an up trend. Wednesday Close: The markets ended higher today but they're really looking like they want to roll over. The DJIA was up 79 points on less than normal volume. I think it's time to get a little conservative. Thursday Close: The markets opened lower and never recovered as the DJIA ended the day down 134 points. I'm getting mixed messages on which way the market is headed but I really think it's headed lower.
!pmobuyspx 16 July 2018 An interesting breadth indicator I've recently come across that seems to identify reversals in the SPX. I think this may be worth watching for awhile. The indicator is defined as the percentage of stocks in the S&P 500 that are on a PMO Buy signal. The PMO signal changes for a stock when the PMO value has passed through the 10-day EMA of the PMO.
Economic Tensions Increase 11 July 2018 The United States is once again threatening additional tariffs against Chinese goods and services and China will surely reciprocate quickly. The US is also pressuring the European Union to pay more for their defense and they're not going to be happy about doing that. Retaliation won't take long.
Potential Call Option Trades 10 July 2018 Sometimes I scan for potential Covered Call trades and come up with some desirable trade ideas. The idea is to buy the underlying shares and sell the calls with the intent of keeping the premium and losing the shares at a profit. So after I do this kind of sort I have to look deeper into the companies to see if... (Full Article)
Blue Apron 9 July 2018 Blue Apron operates an e-commerce marketplace that delivers original recipes and fresh ingredients for making home cooking accessible. It provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters. (Full Article)
Manitex International 5 July 2018 Manitex provides engineered lifting solutions. The company designs, manufactures, and distributes products used in various industries. It offers boom trucks and crane products primarily for use in industrial projects, energy exploration, and infrastructure development, including roads, bridges, and commercial construction. (Full Article)
Enphase Energy 2 July 2018 Enphase Energy delivers energy management technology for the solar industry. It increases energy production, simplifies design and installation, improves system reliability, reduces fire safety risk and provides a platform for intelligent energy management. Its microinverter system converts energy at the solar module level and brings a system based high-tech approach to solar energy generation, storage, control and management. (Full Article)
Retirement is Just One Year Away 30 June 2018 In just one year I'll be retiring. I really haven't figured out what that means yet but I'm looking forward to finding out. Things will slow, I'm sure. I'll have more time to spend at the lake or traveling around Texas. Most people my age have already retired but I've continued in my career simply because I enjoyed the work I've done and the people I've worked with all these years. But with financial freedom and security just around the corner, I look forward to taking more naps.
Aquinox Pharmaceuticals Collapses 28 June 2018 This week has been gut wrenching for holders of Aquinox Pharmaceuticals. The company stopped development on their only drug and the company is now assessing their future. While this was tough on my portfolio, it confirms the reason I normally invest with a Buy-Write strategy. While I lost money in the stock, the loss was mostly offset by premiums collected by selling covered call options.
Vital Therapies Update 27 June 2018 This continues to be a great stock for a Buy-Write. The stock has been slowly moving higher and the option premiums are generous. I have four or five companies that are great candidates for this strategy and Vital Therapies is in the top two or three.
American Superconductor Corp 26 June 2018 AMSC generates ideas, technologies and solutions that meet the demand for smarter, cleaner, better energy. Through its Windtec Solutions, AMSC enables manufacturers to launch best-in-class wind turbines quickly, effectively, profitably. Through Gridtec Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance.
Acceleron Pharma 25 June 2018 Acceleron Pharma, a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics to treat serious and rare diseases. Its therapeutic candidates include luspatercept and sotatercept for the treatment of patients with pulmonary arterial hypertension. (Full Article)
Using the Past to Predict the Future 21 June 2018 Finding great companies whose stock has done well in the past is a relatively easy exercise. Just find an easy and friendly screener, pick out the parameters you're interested in, and hit the sort button. It's that easy. I do it all the time, and most serious investors do too. It's how we find candidates for accumulation. (Full Article)
Share Buybacks Don't Benefit Investors 18 June 2018 Great companies generate more money that they currently need to execute their business. When that occurs companies need to make the decision as to what they will do with those excess profits. When the decision is made to buy back its own stock on the open market it signals that the company has no better productive use for that money. (Full Article)
Two Companies Trying to Head Higher 17 June 2018 I've been watching and investing in these two companies because based on just looking at their charts they look like they want to go higher. Perceptron has been moving higher while bouncing off its 40 wma whereas the MACD on the chart of Exellixis's is about to move higher from below the zero line. Both are usually indicators of higher moves.
China Rising 11 June 2018 Sometimes certain companies get sucked into the psyche of traders and they get pushed higher and higher without any real reason. This may have just happened to these four companies (MOMO, IQ, BILI and HUYA). I like owning these companies and I like selling options on these shares, but chasing them into the stratosphere may not be the smartest thing an investor can do.
RCI Hospitality and Bombshells 6 June 2018 Rick's Cabaret has finally starting to ramp up its expansion of its casual dining known as Bombshells Restaurant and Bar. These restaurants are known for their military decor and their "Bombshell Girls". It's a concept that should work in any town that has veterans, which is basically any town in the US. (Full Article)
Using Puts to Go Long 4 June 2018 I get a lot of questions on how the use of Puts fits into my strategy of "Buy, Write, Collect" so here's a little information on just one aspect of my multifaceted approach to investing. The overall approach is fairly simple, but the corollary offshoots can, at times, often become a little more complicated. Hopefully this explanation will help those interested in one more way I approach investing. (Full Article)
Tandem Diabetes Care 23 May 2018 Tandem is a medical device company improving the lives of people with diabetes through relentless innovation and revolutionary customer experience. The Company takes an innovative, user-centric approach to the development and commercialization of products for people with diabetes who use insulin. (Full Article)
Clearside BioMedical 22 May 2018 Clearside Biomedical, headquartered in Alpharetta, GA, is an ophthalmic biopharmaceutical company. The Company relentlessly pursues transformative, elegant, and precise solutions to restore and preserve vision. The Company is developing advanced clinical and nonclinical candidates using.... (Full Article)
Vital Therapies 21 May 2018 Vital Therapies is a clinical-stage biotech focusing on the discovery, development and sale of cell-based therapies capable of transforming life-threatening conditions. The Company's initial product candidate is a human-cell-based, bio-artificial liver which is being developed to improve rates of survival. (Full Article)
Learning to Read the Market 16 May 2018 Learning to be a good investor is learning how to read the market. It’s learning how to look at a chart and understand what the chart is trying to show you. A good investor doesn’t predict where the market is headed, he simply learns to visually read the chart and react to its movements. (Full Article)
Best Candidates for Selling Options 15 May 2018 Sometimes the trade is buying and selling shares of a company, and sometimes the trade is selling the options associated with a company's stock. When its the options, shares of the company become the insurance for calls and cash becomes the insurance for puts. All of this is the reverse of scanning companies' stock charts for great options. (Full Article)
Interesting Charts I'm Watching 14 May 2018 Scanning the markets for companies that are pretty sound financially as well as having pretty good forward estimates produces a number of companies worth considering. It's the fundamentals and forward estimates that direct me toward those companies that are doing well. But timing is everything. And that's where the charts come in. (Full Article)
Nine Companies Channeling Higher 8 May 2018 Shares of companies that move higher on increased volume tend to bring in more volume that often pushes the shares even higher. It's an example of crowd behavior and the illusion that someone knows something more than someone else and therefore needs to be followed. (Full Article)
The Fallacy of the B-School Degree 7 May 2018 Stock charts are historical records of human behavior and are beautiful works of art to someone who has studied human behavior (I have my Master’s Degree in Social Psychology from NC State University). Those charts are the visual end result of the human decision making process. If we can discover the reasoning behind those decisions and act upon that knowledge in a timely fashion, the American Dream is within our grasp. (Full Article)
Karyopharm Therapeutics 24 April 2018 Karyopharm is a clinical-stage pharmaceutical company focused on discovery and development and subsequent commercialization of novel first-in-class drugs directed against nuclear transport and related targets for the treatment of cancer and other major diseases. (Full Article)
Options as a Strategy 18 April 2018 Options are hardly ever the primary focus of investors as they begin their investing career. In fact, they’re totally ignored for the most part. Only later in their investing career do they realize that was a mistake. An error of innocence. A missed opportunity. (Full Article)
Audentes Therapeutics 16 April 2018 Audentes Therapeutics is a clinical stage biotechnology company working in the area of development and commercialization of innovative gene therapy treatments for people with serious rare diseases. They are focused, experienced and passionate about the goal of improving the lives of patients. (Full Article)
Always Have an Exit Strategy The exit strategy is always a mandatory precondition for any trade I enter. All other strategies will have disaster embedded at their core. All other strategies are simply an emotional reaction to events external to the markets. All other strategies will accentuate a reward while ignoring the damage that's incurred by accepting such an extensive implied risk. These are the strategies that I personally refuse to implement into my trading strategy. (Full Article)
The Spoils of Investing Sometimes it's good to take money out of the market and enjoy the spoils of investing. Not everything needs to be continually reinvested back into the markets. Three years ago I decided to spoil my son. So I got him this Nissan 370Z. It's been a great car. He's been a great kid!
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In 2017 the DJIA ended at 24,719
In 2016 the DJIA ended at 19,762
In 2015 the DJIA ended at 17,425
In 2014 the DJIA ended at 17,823
In 2013 the DJIA ended at 16,576
In 2012 the DJIA ended at 13,104
In 2011 the DJIA ended at 12,217
In 2010 the DJIA ended at 11,578
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My Investing Strategy I like to keep things simple when I invest because I'm a pretty simple guy. And I don't think there's a simpler or an easier way to invest than "Buy, Write, Collect". Here's the three steps in their entirety. 1. Buy the Stock, 2. Write the Option, and 3. Collect the Dividend. (Full Article)
A Basic Options Strategy If you’ve ever considered an options strategy as part of your overall investment strategy, here’s a relatively simple trade that I often execute to supplement my dividend income. (Full Article)
Reviewing Those Dividend Increases I've listed companies increasing their dividend in the Dividend Increases part of this site because I've found this to be a fertile area for finding candidates for consideration. Companies that pay an annual dividend of at least 2% and increase that dividend at a rate greater than inflation for a number of years are the kind of companies that every DGI is attracted to. And if that company has a one year estimated capital gain of 10% or more, I start to buy shares in that company.
Buying Great Companies I've posted a lot of great companies that have raised their dividend pretty consistently over the years and that's the key to becoming a successful investor. It's really not as hard as most people think. Study those companies that raise their revenues, earnings and dividends over an extended period of time. Read their history. And learn what makes a great investment.
DISCLAIMER I am not a licensed investment adviser, and I am not providing investment advice for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.
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