Today's RAZRi announcement, Motorola's global handset powered by a 2GHz Intel Atom chip, came as no surprise to those closely following Intel's efforts in the mobile & ultra-mobile space, and should serve as confirmation that Intel's manufacturing & R&D edge are likely to bring long-term results in the competition with ARM designs.
While I believe INTC option strategies are a fantastic opportunity for investors to reap the benefits from a deeply irrational market wildly undervaluing a tremendous company, I favor 90-120 day time frames for two major reasons:
#1. Higher proportional premiums, especially if employing a dual covered call/cash-covered put strategy which I favor, and #2. The ability to close out positions with next to no penalty, which in turn opens the ability to "roll forward" options, essentially doubling the yield potential.
Could you please address the specifics as to why you prefer shorter term strategies? Thank you in advance.
While opinion pieces can sometimes be entertaining, this kind of article is big on conjecture & light on data. Using virtually any valuation metrics, BBY is cheaper than its historical baselines & outperforms virtually every other player in the retail space, & nothing here even attempts to address the potential upside, including the explosion in mobility devices & the success of Best Buy Mobile & Geek Squad brand.
You've covered the high-level financials but not the tacticals which seem to favor BBY: its highly diversified portfolio of offerings & involvement in the BBY Mobile & Geek Squad brands, both of which are extremely profitable & have shown consistent growth through the last two years.
Smaller footprint concept stores and services-centered sales strategies hold strong potential, and BBY's international plays should not be ignored at all. Short-term weakness in domestic demand may cause further opportunities in terms of immediate price action, but I agree that any and all sub $24 entry points represent a great opportunity for investors with intermediate to long-term outlooks.
Mobile Market Share: Windows Phone 7.5 Is Just the Beginning [View article]
NOK has seen a strong rebound this last week after seeing sub $5 price action, but I'm not entirely sure it's time to call a bottom quite yet. What's clear is that MSFT's decline to the $25 range represents an even more opportunity to back the truck up.
Power One, Inc: Post-Earnings Analysis and Short-Term Outlook [View article]
Dominic: Thanks for reading. Through the whirlwind turmoil abroad & domestically, Power One has shown remarkable resilience, up 6% through the most recent week while NASDAQ ended up down 1%. My bottoming-out thesis appears to play out, at least for the time being. I reiterate that being able to either purchase or place 2-3 month long cash-covered puts in the sub $8 range is a very attractive proposition.
RadioShack Separates the Long-Term From the Short-Term Investors [View article]
Retail valuations are low and could get lower before higher. RSH is undervalued, BBY has recently crashed 52 week lows, HHgregg has been beaten down as well. While I agree with the fundamental points of the article, one ought to be cautious in terms of establishing long positions in this environment. Perhaps very cautious put-selling on large drops may be a good idea to lock in a potential further discount, or else just add the capital to a future purchase.
Either way, the extreme volatility is not likely to go away until the end of summer.
Power One, Inc: Post-Earnings Analysis and Short-Term Outlook [View article]
The stock continues to show extreme volatility, with significant opportunities. Today's over 4% bounce represented another fantastic window to take advantage of short-term call-trading.
Mobile Market Share: Windows Phone 7.5 Is Just the Beginning [View article]
Thanks for reading. I believe tight integration without Apple's severe lockdown is Microsoft's true competitive advantages, as Windows8 looks to embed X-Box gaming, Skype and PC-oriented functionality in a single hand-held device, a true all-in-one mobility toolset which may be truly overtake even Android's flexibility.
The possibility and asset list is there, it comes down to execution. The signs so far, judging on the progress shown from the WP7 release to Mango, are encouraging.
Mobile Market Share: Windows Phone 7.5 Is Just the Beginning [View article]
Thanks for reading.
Ignoring the argument that Apple's products are "better" by any number of yardsticks, I don't see any information that is pertinent to what I presented in the article. I welcome contrarian perspective, but it ought to be fact-based.
Microsoft makes a marginal amount of money on every Android device sold but holds next to no market-share in the mobile space. WP7.5 is at worst competitive, at best compelling, and Windows8 looks to be a true departure for the better. ANY improvement in market-share, topline and income would reflect positively on the equity.
I guess you're implying Microsoft's efforts in the mobility space will impact the company as a net negative? That could be the case, but I'd like to be exposed to the facts which indicate so.
Power One, Inc: Post-Earnings Analysis and Short-Term Outlook [View article]
Thanks for reading.
The stock is certainly volatile, there's no question about it, and for buy-hold investors with a 2-3 year outlook, the fear permeating the solar sector & renewable energy in general represents an opportunity to back the truck up at a bargain. I believe with well-placed option strategies, one can reduce cost basis even further, especially puts in this particular PE multiple range, where there really just doesn't seem to be any more room for depreciation.
Power One Severely Undervalued Heading Into Thursday's Earnings [View article]
I can only look at position in historical P/E channel and history of reported earnings--the equity seems to have priced in a large miss on basis of warnings from SatCom, general weakness in the European market and debt jitters, domestic and abroad. A modest miss or a beat is likely to result in a move back toward the middle of the P/E price channel, closer to 8-9x fwd. P/E rather than rock bottom 6-ish.
Of course, the stock is highly volatile, and one doesn't know if channel oversupply has finally caught up with the company. Last quarter, a 1c miss vs. consesus expectations was rewarded with an immediate pop, since street whispers were factoring in significantly lower EPS than forecast. With the volatility premium it commands, and the long-term growth prospects for the company, I'm perfectly ok with accumulating shares under $6.50 even if my puts get exercised.
As for the insider sale, 9000 shares simply don't strike me as a large amount.
Advanced Micro Devices and the False Lure of the Covered Straddle [View article]
Mr. Martin: Suffice to mention that you may be attempting to carry an argument with somebody unwilling to entertain pertinent information--so you may be on the losing side regardless of how right you are. I believe you've conclusively shown the rationality of your argument, which is the best one can do.
Options and margin trading are not for everybody, but they're nothing more than tools. Nobody in their right mind would call a hammer or chainsaw morally inferior: they are objects which can be used in any number of ways. Options, margin and leverage as concepts cannot be morally inferior or superior any more than a pair of scissors can be morally inferior to a spoon simply because a child could run around with it and put his eyes out.
There are extremely risky as well as rather conservative option strategies--some significantly more conservative than buy and hold, as a matter of fact, because they very finely define the amount of risk an investor is willing to take. It's one thing to have a personal PREFERENCE for an investment STYLE but quite another to engage in ad-hominem over such STYLE PREFERENCE and resort to vague claims about moral superiority. I'd agree that participation in SA should be limited to reason-based discourse rather than exhortation of private beliefs which don't necessarily line up with reality.
Reassessing 3 Core Dow Stocks After Earnings [View article]
Worth noting, in terms of momentum & reallocation strategies when there are significant macro risks to consider:
MSFT outperformed the NASDAQ by about 8% over the last 3 months. INTC outperformed the NASDAQ by about 5% over the last 3 months. GE underperformed the DJIA by about 5% over the last 3 months.
Petrobras: Maligned Stock to Benefit From the Continuing Oil Rally - Part II [View article]
Thanks, Mr. Murphy, on these comprehensively sourced two articles--I very much appreciate the work. I reached a similar conclusion recently (the case is presented here: seekingalpha.com/artic...) and have established long positions on that basis.
After QE3, What's Next For Intel? [View article]
Today's RAZRi announcement, Motorola's global handset powered by a 2GHz Intel Atom chip, came as no surprise to those closely following Intel's efforts in the mobile & ultra-mobile space, and should serve as confirmation that Intel's manufacturing & R&D edge are likely to bring long-term results in the competition with ARM designs.
After QE3, What's Next For Intel? [View article]
While I believe INTC option strategies are a fantastic opportunity for investors to reap the benefits from a deeply irrational market wildly undervaluing a tremendous company, I favor 90-120 day time frames for two major reasons:
#1. Higher proportional premiums, especially if employing a dual covered call/cash-covered put strategy which I favor, and
#2. The ability to close out positions with next to no penalty, which in turn opens the ability to "roll forward" options, essentially doubling the yield potential.
Could you please address the specifics as to why you prefer shorter term strategies? Thank you in advance.
When A Best Buy Isn't [View article]
Best Buy: Unprecedented Value Play [View article]
You've covered the high-level financials but not the tacticals which seem to favor BBY: its highly diversified portfolio of offerings & involvement in the BBY Mobile & Geek Squad brands, both of which are extremely profitable & have shown consistent growth through the last two years.
Smaller footprint concept stores and services-centered sales strategies hold strong potential, and BBY's international plays should not be ignored at all. Short-term weakness in domestic demand may cause further opportunities in terms of immediate price action, but I agree that any and all sub $24 entry points represent a great opportunity for investors with intermediate to long-term outlooks.
Mobile Market Share: Windows Phone 7.5 Is Just the Beginning [View article]
Power One, Inc: Post-Earnings Analysis and Short-Term Outlook [View article]
RadioShack Separates the Long-Term From the Short-Term Investors [View article]
Either way, the extreme volatility is not likely to go away until the end of summer.
Power One, Inc: Post-Earnings Analysis and Short-Term Outlook [View article]
Mobile Market Share: Windows Phone 7.5 Is Just the Beginning [View article]
The possibility and asset list is there, it comes down to execution. The signs so far, judging on the progress shown from the WP7 release to Mango, are encouraging.
Mobile Market Share: Windows Phone 7.5 Is Just the Beginning [View article]
Ignoring the argument that Apple's products are "better" by any number of yardsticks, I don't see any information that is pertinent to what I presented in the article. I welcome contrarian perspective, but it ought to be fact-based.
Microsoft makes a marginal amount of money on every Android device sold but holds next to no market-share in the mobile space. WP7.5 is at worst competitive, at best compelling, and Windows8 looks to be a true departure for the better. ANY improvement in market-share, topline and income would reflect positively on the equity.
I guess you're implying Microsoft's efforts in the mobility space will impact the company as a net negative? That could be the case, but I'd like to be exposed to the facts which indicate so.
Power One, Inc: Post-Earnings Analysis and Short-Term Outlook [View article]
The stock is certainly volatile, there's no question about it, and for buy-hold investors with a 2-3 year outlook, the fear permeating the solar sector & renewable energy in general represents an opportunity to back the truck up at a bargain. I believe with well-placed option strategies, one can reduce cost basis even further, especially puts in this particular PE multiple range, where there really just doesn't seem to be any more room for depreciation.
Power One Severely Undervalued Heading Into Thursday's Earnings [View article]
Of course, the stock is highly volatile, and one doesn't know if channel oversupply has finally caught up with the company. Last quarter, a 1c miss vs. consesus expectations was rewarded with an immediate pop, since street whispers were factoring in significantly lower EPS than forecast. With the volatility premium it commands, and the long-term growth prospects for the company, I'm perfectly ok with accumulating shares under $6.50 even if my puts get exercised.
As for the insider sale, 9000 shares simply don't strike me as a large amount.
Advanced Micro Devices and the False Lure of the Covered Straddle [View article]
Options and margin trading are not for everybody, but they're nothing more than tools. Nobody in their right mind would call a hammer or chainsaw morally inferior: they are objects which can be used in any number of ways. Options, margin and leverage as concepts cannot be morally inferior or superior any more than a pair of scissors can be morally inferior to a spoon simply because a child could run around with it and put his eyes out.
There are extremely risky as well as rather conservative option strategies--some significantly more conservative than buy and hold, as a matter of fact, because they very finely define the amount of risk an investor is willing to take. It's one thing to have a personal PREFERENCE for an investment STYLE but quite another to engage in ad-hominem over such STYLE PREFERENCE and resort to vague claims about moral superiority. I'd agree that participation in SA should be limited to reason-based discourse rather than exhortation of private beliefs which don't necessarily line up with reality.
Reassessing 3 Core Dow Stocks After Earnings [View article]
MSFT outperformed the NASDAQ by about 8% over the last 3 months.
INTC outperformed the NASDAQ by about 5% over the last 3 months.
GE underperformed the DJIA by about 5% over the last 3 months.
Petrobras: Maligned Stock to Benefit From the Continuing Oil Rally - Part II [View article]