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Tom Armistead
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I'm a well-informed retail investor and post on SA in order to expose my thought process to critical examination and comment from readers. It makes me a better investor. I'm particularly proud of bullish macro articles posted in 2009 and later, in which I presented ideas that encouraged me to... More
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Tom Armistead's Instablog
  • Adding ConAgra Foods 0 comments
    Aug 1, 2013 10:45 AM | about stocks: CAG, MCHP

    Today I added ConAgra Foods (NYSE:CAG) to the Synthetic Dividend Growth Portfolio. Long Jan 2015 30 calls, short Mar 2014 39 calls.

    I rolled Microchip (NASDAQ:MCHP) long calls up from Jan 2014 30 to 35, because the stock is up around 10% and it reflects my preference to keep the strike on the long calls at about 80% of the share price.

    At this point, TXN, MCHP, JNJ and GIS are up to where the covered calls sold against the LEAPS are in the money. That limits my exposure to further upside on the stocks involved, and reduces the portfolio's market exposure.

    To compensate, I added CAG, after checking its valuation on FASTGraphs, Morningstar and S&P. It came up when running the screen that forms the basis for stock selection on the portfolio, and appears fairly valued. I'll be doing due diligence shortly, since Morningstar sees two stars and S&P sees five. It's unusual to have the two organizations publish such varying opinions.

    Disclosure: I am long CAG, MCHP.

    Themes: Dividend Investing, Options Stocks: CAG, MCHP
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