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George Acs  

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  • Dysfunction Takes A Vacation [View article]
    I think that the market is now getting to understand that point that it is no longer the growth machine that it had been for so long. Unlike many other stocks, I don't think there is any likelihood of the realization being sudden. It's already well underway.
    Feb 18, 2014. 08:35 AM | Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    They don't have to be mutually exclusive.

    If I'm feeling bullish about shares, but still want some protection, I sometimes will split my holdings and treat them differently using what I refer to as an AC/DC strategy (Alternating Cover with Don't Cover). That is something I did with Microsoft for tomorrow's ex-dividend date using a 2/22/14 expiration at $37 and $38. Some of those shares have been assigned but still returned a good ROI and the money has now been released to be able to be put right back to work. The variation is that instead of not covering a portion of the shares I may use a higher strike.

    Strictly speaking the Double Dip Dividend involves the use of an in the money option. Generally for a short term contract if the closing price before the ex-dividend is greater than the strike price, but less than the strike price plus the dividend, the more time remaining on the contract the less likely the shares will suffer early assignment.

    So I'll look at GE and see whether I can get an opportunity to buy it as it straddles that price or better yet is closer to the strike. The lower the volatility the less the benefit, however, of trying to double dip, therefore the closer the purchase price to the strike level the greater the potential ROI whether eventually assigned early or not.
    Feb 17, 2014. 06:05 PM | Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    I went to a specialized high school for science and math and had neither aptitude nor patience for mythology, history and literature. In hindsight, there were girls, too, but mostly the trickle down of Woodstock.
    Feb 17, 2014. 08:49 AM | Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    There's not likely to be much exciting about owning GE over the longer term except for consistent returns. Share appreciation, dividends and option premiums are all going to be components of its probable over-contribution toward portfolio health. Excitement is a totally unnecessary component of ROI in the final analysis.
    Feb 17, 2014. 08:45 AM | Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    The Greek mythology metaphor has lost me, as most of 10th grade was a blur.
    Feb 16, 2014. 02:57 PM | 1 Like Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    Thank you.

    I would have preferred the trade much more had Zillow not gone up so much ahead of earnings. In general these kinds of trades are especially lower risk than what appears on the surface if the predominant move prior to earnings is lower and then the sale of puts is made..

    Still, a quick turnaround trade is nice and frequently if using the extreme strike range, at a 1% ROI, even if assigned it can often easily be rolled over to a new strike while awaiting what is often an inevitable bounce back.
    Feb 16, 2014. 12:20 PM | Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    There must be a derivative play to picking up dog poo, even if just organic and gluten free.

    I do think that Whole Foods is getting ready for that transition and is going to start becoming a more mundane kind of stock, which, for me, at least, makes it much more a regular candidate for purchase. I also think that its nationwide expansion is going to even out event driven earnings impacts.
    Feb 16, 2014. 11:28 AM | Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    Whatever it takes.

    Ultimately a strong stock market, for whatever reason, brings down that debt and has some benefit, even if trickle down isn't all it was purported to be. Imagine where we were on the flip side just a few years ago. That stock market thing rules everything. Cooperation moves us forward at the expense only of personal political ambitions.
    Feb 16, 2014. 08:58 AM | 2 Likes Like |Link to Comment
  • Dysfunction Takes A Vacation [View article]
    There's no question that sectors fall out of favor and then return because of their perceived value.

    Whether there's a concerted effort to do that isn't clear to me, although it is often fairly clear that when one downgrade comes others follow. Coincidence? Probably not, but more likley a case of not wanting to be left holding the bag.

    Your final point is pretty important. Those long term leases and low interest rates create a sort of guarantee and should also help to put a floor into the prices. I certainly don't think these companies should be trading near their lows, but never want to be in a position to ask "how much lower can they go," as justification for making a purchase of shares.

    In the case of Transocean they have lots of cushion to keep that dividend going with a 13% payout ratio. Seadrill, which has an extraordinary dividend is currently faced with a 70% payout ratio and would be faced with greater challenges if it had to ramp up capital expenditures.

    In terms of growth opportunity, I think Seadrill is a better choice, as it would likely be more responsive to any multiple expansion and is very much under-owned on an institutional level.
    Feb 16, 2014. 08:09 AM | 2 Likes Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    Thank you. I'm especially proud that this article is my first to comply with new EU standards and only feral animals were hurt during its composition
    Feb 9, 2014. 11:15 PM | 3 Likes Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    Thank you, but I really did miss football today. I found myself actually cleaning out the room that is supposed to be my office, except there's not even room for a wireless signal to get through.

    I've been a big fan of MSFT for a long, long time. Being so was never a comment on their products or strategies, but rather their stock was like an annuity for me. Between dividends and option premiums it was a delight to own.

    From a competitive perspective I give Microsoft credit for never ceding ground and for helping to make others strive to stay ahead, benefiting us all. While everyone talks of the Apple eco-system you can survive this world quite nicely with a window into Windows
    Feb 9, 2014. 06:53 PM | 2 Likes Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    Thank goodness for his tangents. I don't think he's a deep repository of economic theory or analytical insight. But at that early hour do you really want anyone preaching proprietary insights?
    Feb 9, 2014. 06:18 PM | Likes Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    I like the entertainment value from CNBC and can get enough of the salient economic news to help understand basic macro-economic issues and company specific news. I find Bloomberg to drone on if taken in large doses and I lose focus as a viewer. Of course, that's as opposed to CNBC where they frequently lose focus on their own.
    Feb 9, 2014. 05:18 PM | Likes Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    Like just about anything, Kernen may be an acquired taste. Have met a few of the on air personalities and I think they are, by and large, a nice group of people. There is actually much greater camaraderie than with news people, especially on the local level.
    Feb 9, 2014. 03:05 PM | Likes Like |Link to Comment
  • Now Everything Is Crystal Clear [View article]
    The "See the details" link leads to a spreadsheet for this week's selections and seems to be working on my end.

    Double Dip Dividend and "PEE" are explained by clicking on their respective links near the end of the article that presents a summary of the week's selections by category.

    To get a better understanding of "PEE" you may also want to read an illustrative article using Facebook as an example ( http://seekingalpha.co... and an overview of how earnings may be approached ( http://seekingalpha.co...
    Feb 9, 2014. 02:00 PM | Likes Like |Link to Comment
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