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Donald Johnson

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  • Too Close To The Forest To See The Trees? [View article]
    I've reviewed Peters web site and am starting to understand his product and approach, which appeals to me. I'm now investing time in reading several of his articles to gain greater understanding of what he offers.

    I find that writing monthly covered calls helps shorten the time between decisions to act, take losses and take profits.
    Dec 25, 2014. 01:21 AM | Likes Like |Link to Comment
  • Gilead Sciences: Buy On The Drop? [View article]
    ABBV has shot itself in the foot with it's Express Script's deal. And it has sent investors in almost all other pharma stocks fleeing today. They're worried that insurers and buyers have pharmas on the run.

    I don't think so. Remember the revolt against HMOs in the 1990s? Consumers and politicians revolted against the HMOs' death panels, and the HMOs and their corporate clients caved. Consumers got their freedom to choose providers back.

    And they got higher premiums. Drugs are about 10% of health care costs.

    I'm looking for hepatitis victims, their families and the medical community to revolt against ABBV and Express Scripts as soon as they realize what the HMOs are doing to patients. Most drug companies will back GILD, not ABBV.

    Yesterday Morningstar's analyst posted a note saying that M* is holding its fair value estimates for GILD at $106 and ABBV at $61.

    On Friday, my ABBV was called because I had sold ABBV Dec 65 for $1.75. Today I bought back half as many shares for $65.19. At the moment ABBV is at $64.345. I should have sold calls on the trade immediately, but the stock was rallying. It collapsed while I was working in the basement.

    I have a 14% loss on GILD. As a result of selling covered calls, my effective loss at the moment is about 10%. I bought some more at $88.61. It's now at $88.62. I have twice as much money in GILD as in ABBV.

    BTW, GILD is a great covered call stock. The options volume in ABBV is mostly on the put side, showing the market's bearish view of the stock. ABBV's calls are close to illiquid for covered call writers, imo.
    Dec 23, 2014. 01:05 PM | 4 Likes Like |Link to Comment
  • What Would You Do With A Million Dollars? [View article]

    I put the list together with the idea that someone could live on $30k-$40k if necessary. It doesn't describe my lifestyle or life's experiences in total because I travel, own houses, contribute a little to charities and causes, and subscribe to cable and have Internet service. Just sold a car at a little over 100k miles and have been lucky to be married for decades and to be healthy. For lucky us, life is good. Thanks for the replies.
    Dec 15, 2014. 11:03 PM | 2 Likes Like |Link to Comment
  • What Would You Do With A Million Dollars? [View article]
    Don't contribute to anybody or any do good organization until you really are set for retirement and can afford to give money away.
    Dec 15, 2014. 10:57 PM | 1 Like Like |Link to Comment
  • Conducting A Robust Valuation Analysis On CBS [View article]
    Stock groupies never like disappointing assessments of the stocks they own.

    I try to invest in companies that value integrity and respect their customers. That is not CBS.
    Dec 9, 2014. 09:06 PM | Likes Like |Link to Comment
  • Kinder Morgan: Don't Throw Out The Baby With The Bathwater [View article]
    Fulfillment of KMI's dividend projections for the next five to six years depend on continuing growth in demand for its services. The market seems to be convinced that the growth rate will slow as indicated in the sharp drops in SLB, XES, etc. That doesn't bode so well for KMI, which I own.
    Dec 1, 2014. 09:59 AM | 1 Like Like |Link to Comment
  • Kinder Morgan: Don't Throw Out The Baby With The Bathwater [View article]
    I wonder why people who owe taxes on wonderful capital gains can sue the issuer? It makes no sense to me.
    Dec 1, 2014. 09:54 AM | 3 Likes Like |Link to Comment
  • How Healthy Were Hain Celestial's Q1 Results? [View article]
    PE contraction caused the stock prices of Microsoft, GE and other companies to contract sharply in response to slowing growth in earnings. Stocks that had 20 PEs and higher suddenly were growing at 5% a year, and their PEs shrank. As a result, despite still nice increases in revenues and earnings, the companies stocks fell into prolonged and depressing trading ranges before showing some signs of life this year. PEG counts.

    That is the warning that the author is making in his third bullet point summary and in his final comments.

    Because of HAIN"s strong technicals and momentum, I was considering it for a covered call trade, which could be quite rewarding. But I'll pass.

    Thanks for a very thoughtful and professional report.
    Nov 23, 2014. 01:54 PM | Likes Like |Link to Comment
  • Hain Celestial: 2 Charts The Bulls Don't Want You To See [View article]
    I think further research by investors/speculators would be a good idea. First step, look at the financials and read the footnotes. 2nd step. Evaluate the adjustments. 3rd step. Read other reports on the company. 4th step. Check the stock's technicals, which look very strong. 5th step. Look at the percentage of the stock owned by institutions and management.
    Nov 23, 2014. 01:38 PM | 1 Like Like |Link to Comment
  • Yahoo acquiring BrightRoll for $640M in cash [View news story]
    Well, we've had Yahoo mail accounts for a long time. And we're leaving Yahoo because of it's clunky mail settings which change reply addresses to and don't let you fix the problem. Actually, I stopped using my Yahoo mail accounts some time ago because they don't integrated with other mail programs very well.

    Lot of my Mac-using friends are using gmail.

    Just going to is annoying. Lots of junk news stories and stories with hard left biases, reflecting those of Yahoo's CEO.

    Bottom line: Yahoo's losing users, which makes its ad platform irrelevant as Google dominates the space.
    Nov 11, 2014. 06:02 PM | 4 Likes Like |Link to Comment
  • All Aboard The Dividend Train, Part 2 [View article]
    I recently bought NUE figuring it will profit from the rail car and infrastructure boom. It's up more than 8% in the last couple of months. Need to look at X as well, because it makes a lot of the specialty plate steel, I think. Need to check that out. X is M* 2 star. NUE is 3* with $59 est. fair value. 2.72% yield. Too late.

    Rail roads have pricing power in both energy and agriculture markets. Fuel prices are declining at the moment. Liability and insurance premiums (reinsurance for the self insured) must be soaring. Need to look on ROIC and ROA and Valuentum's dividend cushions on these stocks. Valuentum has UNP in its Best Ideas portfolio.
    Aug 27, 2014. 11:39 PM | Likes Like |Link to Comment
  • 3 Utility Stocks To Consider Now [View article]
    I dumped ED after NYC elected its new mayor. To me, the political risk is just too high.

    On point and figure charts, EXC has a price objective of $60. It closed at $32.77 today. M* gives it four stars with an estimated fair value of $40, which is down from its $42 estimate of a few months ago. EXC yields 3.7%, which can be easily doubled with covered call trading. has PPL in its Dividend Growth Portfolio for diversification purposes only.

    I'm under water on EXC.
    Aug 27, 2014. 11:18 PM | 4 Likes Like |Link to Comment
  • Expected Improvements In Subscriber Base Set To Boost CenturyLink's Top And Bottom-Lines [View article]
    What is Prism TV?
    In what neighborhoods is CTL going gigabyte? What's the plan?

    I'm a CTL customer in a gigabyte metro area, but we've seen no promotions for the new services.

    Indeed, most in our area are using Comcast.
    Aug 22, 2014. 12:11 PM | Likes Like |Link to Comment
  • Morgan Stanley: Kinder Morgan deal an overall plus but with some downside [View news story]
    I'm wondering what KMI's depreciation expenses will be and how will they affect it's effective tax rate?
    Aug 18, 2014. 02:36 PM | 1 Like Like |Link to Comment
  • Caterpillar - Investors Ignore Low Quality And Financially Engineered Earnings [View article]
    Long-term investors should tour the new Caterpillar museum in Peoria, IL. You'll see how the company develops products, engineers quality, uses robots and automation in manufacturing and wins customers with its strong dealer/service network.

    Cat is one of the most ethical companies in the U.S. and in the world. And it has been a pioneer in globalization.

    Its primary strength, I think is that all of its products are bought by customers who demand quality, high uptime's and incredible service and are willing to pay premium prices to obtain the lowest cost of ownership.

    I have owned CAT for a long time. My effective dividend yield is close to 100%. But I worry about CAT's exposure to Russia, China and the Middle East.
    Jul 25, 2014. 03:37 PM | Likes Like |Link to Comment