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Bret Kenwell

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  • We'll see if it holds, but stocks throw a mini-tantrum at the open - the S&P 500 -0.6% (compared to recent action 0.6% feels like 6%) - seemingly demanding a good word from Bernanke tomorrow at Jackson Hole. [View news story]
    And what are we going to do when we finally STOP receiving QE..

    The problem with always supplying the user (The Market), is that as they gain more and more dependency from the giver (the Fed) and can't function without it.

    Seriously, I get that Ben saved us from a total wipe out in the market, and I agree that was the right thing to do. But Jesus, we're at 4-year highs. Growth is there, albeit slow, but c'mon man how much smack are you gonna let the market inject before you take it away.

    The markets gonna have a tantrum if we don't get more QE every August from the 'Hole.
    Aug 30 02:17 PM | 2 Likes Like |Link to Comment
  • Starbucks: Would You Like That Hot Or Cold? [View article]
    I want to see $50 hold on the upside (as resistance). I would be short from there, looking to ride down to the lower $40's. I don't have an alliance to either the long or the short side. Schultz is a great CEO for a great company, which is why I would want to be long from $40 or lower.

    $32 is a great entry price, kudos to you.


    Aug 30 02:09 PM | 2 Likes Like |Link to Comment
  • Starbucks: Would You Like That Hot Or Cold? [View article]
    Is it growing? Yes. Robustly growing? No.

    The world is growing, but at a sloooow pace, squeezing companies like SBUX. I like SBUX don't get me wrong, I like them a lot. But with equities getting toppy, volatility picking up, a richly valued company like SBUX is not the one I want to own right now when I could go for high dividend stocks or growth companies with low multiples (AAPL).

    SBUX will be a buy, no doubt, I just don't think that's right now.
    Aug 30 01:36 PM | 2 Likes Like |Link to Comment
  • Why A Mini iPad Will Kill The Kindle [View article]
    Maverick (in third person apparently),

    You seem to be an Apple hater, or at the very least someone who does not prefer Apple products. Maybe it's because their the best in breed. Maybe because you like the underdog and Apple is now the top dog. Whatever your reasons may be, you can't fight the with the "Apple is a lousy product" mantra.

    Let me begin by saying, Amazon does NOT have "hundreds of millions of kindles in their users hands." Simple logic to one who has almost no knowledge of stocks or companies would know that this is not true. Hundreds of millions..You were kidding right?

    You mention Apple on a value basis, while defending the kindle. You do realize, (and perhaps your inexperienced with the mathematics behind finance) that Apple trades with a P/E ~14, while Amazon trades with a P/E of almost 300?
    To take this comment one length further, Apple on an earnings basis kills it. Amazon couldn't even beat earnings while analysts estimated a 2 CENTS per share. They missed earnings on a two cent estimate.

    Before critiquing and Apple sales model (or earnings model) it would help if Amazon could at least sell their tablet for a profit--which by the way, it does not.

    If Apple were half as bad or as inferior to its competitors as you make it sound it would not have the kind of success it has already had. They're not just a big tech name, they're the biggest company in the WORLD! With over $100 billion in the bank.

    If you don't like them, that's your opinion and totally entitled to it. By you can't build much a case against their products. This many people would not be lined up to get their hands on new Apple gadgets if they were a piece of crap. They are Goliath, and whatever grudge you have against them doesn't matter, because they're still the best in the biz.
    Aug 8 08:18 PM | 2 Likes Like |Link to Comment
  • Why A Mini iPad Will Kill The Kindle [View article]
    The mention of the Amazon prime is an interesting point. Though I can't say I have prime, in a way, I wish I did. And I agree with you to a point. It's just in my opinion, and it is just that, an opinion, if Apple were to introduce a mini tablet, and someone were on the fence on an iPad Mini vs (any other mini tablet) I would put my money on them choosing Apple.

    Thanks for the comment! And I'm with ya on diggin' Apple products! Love them myself,

    Aug 8 05:42 PM | 2 Likes Like |Link to Comment
  • Why A Mini iPad Will Kill The Kindle [View article]
    Very Curious,

    In a way, you sort of just proved you do, with all due respect. You have, about or at least $4000+ in Apple products. Clearly you love them, because they're great products. I have an iPhone and an iPad as well. I can honestly say I love them as well.

    However, I think with a new smaller tablet, Apple will be aiming at the crowd who DOESN'T have an iPad yet. While iPad users now may revert to the smaller one, I think the rationale behind creating a smaller one would be for the market they have largely left untouched.

    Please don't take my comment the wrong way. It isn't meant to be argumentative or put you on the defensive :)

    Thanks for commenting,

    Aug 8 05:12 PM | 2 Likes Like |Link to Comment
  • EU Summit Agreement Bogus: Global Bear Market To Resume [View article]

    Totally agree. While this "Euro-phoria" may stick around for longer than it should, I think next week we should see it fade, at least to an extent. But as we have seen, rationality and logic do not always have a place in this market. Either way, earnings season is around the corner. Along with expectations being way, way to high, Reported numbers and especially guidance are not going to be pretty.

    Everyone's tied up in how we're going to 1500 now, but quite honestly, as much as I want the markets to go up, up and away, won't happen. Europe is a cluster---- either way and this, nor any proposal will likely save it. And any multination stock will go down with it.

    If you've got a minute, this a pretty good article related to the EU summit:
    Jun 30 10:15 AM | 2 Likes Like |Link to Comment
  • McDonald's Approaching Dollar Menu Prices [View article]

    To your point (at which I do not necessarily disagree with) many people probably prefer to eat at MCD while NOT knowing what is in their food. It would be nice to know you were eating 100% lean angus beef, but $1 burger probably just turned into $5. Should it be higher quality? Usually that answer is always yes, however, I feel that many people eat there for the price.
    Jun 8 01:31 PM | 2 Likes Like |Link to Comment
  • McDonald's Approaching Dollar Menu Prices [View article]

    Though there is not set of rules written in stone for support/resistance, there are a few ways to find them. In your inquiries, I do not see MCD hitting those levels. 2009, America was involved with the Financial Meltdown, so most securities saw extreme lows in that time.

    To be frank with you, I do not see the 2010 low being visited either. Though should we have some sort of macro economic collapse, all of this is irrelevant. I think $80 SHOULD hold. If that's not the case, I don't see MCD going through the $70's very quickly at all. I think they should find substantial support before that.

    It's hard to know when a bottom is in. I don't think the bottom is in now, but I don't think it will visit $65 or $52. If you're investing for the long term, you don't need to pin the exact bottom!

    Hope this helps!

    Jun 8 10:58 AM | 2 Likes Like |Link to Comment
  • Using Covered Calls To Increase Your Yield: Gravy For A Dividend Growth Portfolio [View article]

    They're cheap for a reason. For instance the June 42.5 calls are selling for like .15 (or $15). Well, in 15 days they will expire and it is unlikely that it will rise that high in such a short period of time, with the stock currently at 38.80. So the seller simply collects the premium and moves on.

    Also, options are a little deeper than you may thing. For instance, you may be selling the covered call to collect the premium from it right? Well the one who is buying it, may be doing many other things with it. It could be part of a spread (either debit or credit) so they may be with you or against you (in terms of market direction). Also, they may be short POT and using the upside calls as their stop.

    So if one were short 200 shares of POT and wanted at stop loss of 42.5, then one would buy those calls, which could very well be the calls you're selling as your covered calls. You see?

    Hope this helps..ask anything else if you'd like!
    May 31 11:02 AM | 2 Likes Like |Link to Comment
  • Using Covered Calls To Increase Your Yield: Gravy For A Dividend Growth Portfolio [View article]

    Good piece. I too advise to sell covered calls, both in my articles and in conversations between myself and other investors. They have their time and place for them, but many times can act as a "second dividend" as you say.

    One edit though on your article:

    "The option expires worthless, you keep your 100 shares of POT, and get $162 in covered call premium for your trouble."

    If I am correct, it was 2 contracts sold for $81 apiece. Thus above would need to read

    "The option expires worthless, you keep your 200 shares of POT, and get $162 in covered call premium for your trouble."

    Just one contributor trying to help another! :)

    Good-buy and good luck!
    May 30 06:23 PM | 2 Likes Like |Link to Comment
  • Big Money To Be Made In Agriculture [View article]
    To everyone who has and who will say I'm using a mere 1 liner to count global population with Facebook..I'm not! I did not compare it to any of the companies, nor use it anywhere else in the article.

    If I had written "200 years ago, there were less than 800 million people on earth, today there are over 7 billion." No one would have a problem with this, all I did was a make it a little more visual so it's easier for readers comprehend. Also, it is not a measure of anything, simply showing just how rapidly we have grown over those two centuries.
    Mar 14 05:56 AM | 2 Likes Like |Link to Comment
  • ConocoPhillips: A Smart Way To Trade Oil [View article]
    Sorry Bill. What I mean is that the OPTIONS price in USO is higher, because it has a higher implied vol. The higher the implied vol, the higher the price will be, since volatility is price into a securities options price.

    Hope this helps you,

    Mar 9 11:59 AM | 2 Likes Like |Link to Comment
  • The Solution For The Eurozone Debt Crisis Is Actually Quite Simple [View article]
    as quoted above, "should be written in stone." I agree, even though the short run would be a painful bloody mess, it's what would sort out the problems the quickest in the long run. It's survival of the fittest, at least that's the way it is in the markets, and as you say the politicians always intervene, making it the survival of the richest.
    Dec 6 03:30 PM | 2 Likes Like |Link to Comment
  • Ford: $24 Is Within Reach [View article]
    I like Ford and am long, but this is spot on:

    You forget that Ford is currently trading at a fair price that is proportional to earnings for 2014, if not on the high side.
    Jul 31 01:52 PM | 1 Like Like |Link to Comment