The 2011 Teemoney Portfolio
*positions may change at any point
GST – Natural Gas- Bought in @ 4.09 – Currently 4.75 – With oil moving up many investors will be looking to invest in alternative energy sectors. Natural gas has taken a beating in the last year. Looking to accumulate in the 4.50 range, reducing in the 5.20 range. See Michael Kudrna’s in-depth analysis for more detail.
JASO – Lagging solar sector, undervalued stock, see my in-depth options play on this stock in my instablog. Accumulating the June $6 calls. Entry initiated @ 1.75 Alternate play – Trina Solar(NYSE:TSL)
COCO- Fundamentally undervalued. This stock has been beaten to death. With Apollo posting great results, looking for this one to pop. Currently trading at a PE of 3, forward PE 15, any earnings results aside from bankruptcy should result in a strong move upward. I like the August $4 calls currently at 1.6. No price target yet, reduce in the 7-8 dollar range. I strongly believe the beating to education stocks is overkill, I have spoken to a few people who know the industry well, opinions were mixed, however it is my believe that regulation will not be as harsh as some believe and now is a prime time to invest in some of these companies that have lost 50%-100% of share value in the last year. Alternate play - Devry(ticker: DV)
CCME-China media express Holdings – There’s a ton of buzz about this company on the boards/articles. If reporting is accurate, they are Extremely undervalued. Undervalued/speculative play, investing in Chinese stocks is an art all it’s own. Accumulating $20 calls currently. I’m wary of Chinese stocks in general, however I feel this one could skyrocket if much of what they are reporting is true.(Alternate play ZOOM)
C – With Citi dropping 5% today on earnings I will be looking to accumulate in the coming months. Picking up the Jan 2012 $5 calls. Will be accumulating this all-year long. Financial laggard play.
Shorts – I mainly use these as hedges, the stock market is up a considerable amount in the last 7 months, while I have bullish plays I like to hedge indices in general against sudden drops or corrections. Many of these plays lose money, I specifically buy them with the intention of losing the money I put in. They are in essence insurance and it helps me sleep at night.
SPY – I generally buy the $110 puts about 2 months out and roll them forward. They range in value from .1-.2. I like to put 1-2% of my portfolio in these, as a 10% correction would return roughly 500%-1000%.
QID – Many of the stocks that contribute to the QQQ are trading on HUGE PE values. A pullback or correction will knock these down considerably. I like the $10 calls, I also roll these forward every 2 months or so.(usually for a loss)
VXX – Shorting the VIX is a bullish move, and the amount of time I put into playing the VXX in general requires an entirely new article(coming soon). Shorting the VXX is an art form in my opinion and requires some serious knowledge of the subject, however to this date I have yet to have a trade on the VXX that has done worse than a 50% gain. I would not recommend playing the VXX until you understand how it moves, you normally will do fine with just long term puts, however with a correction coming possibly this will skyrocket leaving you with hurt feelings and lost cash.
Disclosure: I am long COCO, JASO, C, OTCPK:CCME, GST.