Seeking Alpha

John R. Conway's  Instablog

John R. Conway
Send Message
When I am not trading/investing I enjoy cooking, which is my second passion next to investing. I currently reside in St. Louis, Missouri and I am a graduate of the University of Missouri-St. Louis with a Bachelor of Liberal Studies. I also was in the US Army for eight years in the reserves/in... More
  • June Performance 0 comments
    Jul 9, 2012 12:28 PM

    The summer is generally not my favorite time to invest and historically over the last couple of years I tend to be neutral during the summer. There is still constant news about Europe and other concerns over global slowdown and with that I am still sticking to my game plan of large cap US only stocks with little or no overseas exposure. My favorite picks since the beginning of the year have been AT&T (T) and Altria (MO) and despite the mixed markets these 2 stocks have been going higher ( even on down days). Lets take a look at my June calls:

    1) Facebook (FB) = I recommended to stay away from Facebook until the hype has died off and Facebook isn't on T.V. everyday. When I wrote about Facebook the stock was at $27.72 and now the stock trades at $32.82 Looks the hype/pessimism has faded away and though I am not a Facebook user, I like the stock, but for speculation only until some financial data comes out. I currently have not position on Facebook, but would consider using OTM calls that are at least 3 months from expiration as a cheap speculation trade.

    2) XLI industrial etf= This ETF has struggled with the 35 level and I recommended the July 33/30 vertical put spread for $83. Since this date the ETF hasn't moved much and I believe the 35 level will be a level this ETF will struggle with. This is not one of my greater picks as time decay basically killed this trade as the trade is now worthless.

    3) Ritchie Bros. (RBA) Who doesn't like a auction. I wanted to focus on niche market plays or names that are not wildly known. One of the main reasons I like Ritchie Bros is that at their auctions they are mostly no reserve and everything gets sold. Their business model is simple and easy to understand. I recommended the stock at $19.85 and now the stock is at $21.51 I am still slightly bullish on the stock as the company can be described as somewhat economic resistant. No options play

    4) United Rentals (URI) Another niche play since its simply cheaper to rent large equipment than buy it. When I wrote about URI on June 22 the stock was at $33.43 an now the stock is at $34.34 Not a big gain, but if economy picks up any steam shares of URI will climb higher. No option play

    Once again thanks for the comments and for reading the articles that I have presented for you. Feel free to message me anytime with any questions/comments as I will always answer you in enough details as I can possibly provide. For July and August I am going to continue to be cautious since last year during this time the market wasn't doing so great and we could possibly repeat the past. For July and August I will be writing/trading options on what has been working for me and the market. Stay tuned and thanks again.

    Disclosure: I am long MO, T.

Back To John R. Conway's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • below $32 I'm buying more $T
    Feb 28, 2014
  • watch $MCD looks like it makes a run towards $100 haven't seen this since last July
    Feb 21, 2014
  • $Ebay looks like it wants to breakout-thinking about making a speculative play in the name
    Feb 18, 2014
More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.