Manoj

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    • Wed Oct 31st 21:26 PM | Rating: 0 0
      Commented on:
      Goldman Adds Dell To Buy List, Bumping HP
      I don't know what you achieve by peddling news from some other resources..Try something original.
      View article »
    • Wed Oct 31st 17:08 PM | Rating: 0 0
      Commented on:
      EMC Price Targets Too Low; Seize This Opportunity
      www.emc.com/ir/investo...

      From the EMC Q3 2007 Earnings Webcast presentation:

      EPS excluding VMW contribution and excluding one time gain on sale of VMW stock to Cisco is $0.15. VMWare contributed an <b>additional<... $0.026 per share.

      If you see slide 13 of 22, the change in EPS for the Infrastructure (i.e. excluding VMW) is about 18% YoY.

      YTD07 EMC Infrastructure EPS is $0.53. Add another $0.15 for Q42007 and you get $0.68 for 2007 EPS.

      Assuming a 18% YOY growth, 2008 Infrastructure EPS should be about $0.68*1.18 = $0.80.

      I have assumed $0.75.
      View article »
    • Thu Oct 4th 17:18 PM | Rating: 0 0
      Commented on:
      Google Shows No Sign Of Stopping
      You make a rather weak case. Just because something has gone up, does not mean it will go up in the future.

      Agreed, that Google's revenues are growing and there seems to be no stopping. But 90% of your article is looking in the rear-view mirror and only 10% looks ahead into the future.
      View article »
    • Thu Aug 23rd 15:00 PM | Rating: 0 0
      Commented on:
      Selling Bank of America Puts Is As Safe As It Gets
      Well, its August 23, 2007. Exactly two weeks since I wrote the article above.

      Bank of America stock has rallied to around $52 today morning, from the lows of around $47 around August 9th. The strategy I had suggested of Selling Jan 40 PUTs for $1.30 each has paid rewards.

      Today the PUTs are trading at $0.60. Today you can buy back the 10 contracts that you sold, for a total of $600. That gives you a profit of $700 in 14 days on your cash requirement of about $6000.

      I have closed out my position, by buying back the PUTs that I had sold on August 9th.

      The trade has yielded a 11.7% in two weeks. This is something in between "Heads I win, Tails I don't loose". Lets say the coin fell on its edge!
      View article »
    • Fri Aug 10th 14:43 PM | Rating: 0 0
      Commented on:
      Selling Bank of America Puts Is As Safe As It Gets
      Thanks everyone for the comments. Though most of you missed the gist of the article.

      The <b>primary</b... goal of this strategy is to play the option. The <b>secondary<... goal which will be forced on you, is to buy a blue chip stock at bargain basement price.

      <b>1. Cash Balance Requirements:</b>...
      Amit Choksi is correct that if BAC stock moves down, the cash balance requirement will become higher. For sake of argument, lets say the Cash Balance requirement just quadrupled. So instead of $6000 now you have to hold $24000. Getting $1300 on this amount in 164 days gives you a 12% annualized return on the investment. Not bad. If you just take a tripling of the cash balance to $18000, you get a 18% return. Not bad at all.

      <b>2. When to sell the puts:</b>
      yate6460: You will never get the exact bottom. What you have to work out is with the current play does it give you a good return and safety.

      <b>3. Al Rob</b> - Aren't we all betting on a stock going in a certain direction? Can BAC go to $20. Yes. What are the chances? Pretty negligible. Can a person get hit by a car while walking down the street? What are the chances?

      <b>4. Dividends:</b>
      slickvguy: BAC has raised their dividend by about 10% every year for the past 5 years. If you go back farther in the past, you will see the similar statistic. Is there a possibility that they may cut the dividend going forward? Yes. What are the chances? Pretty negligible. Is there a possibility that they stop increasing the dividend going forward? Yes. Chances? Pretty low.

      5. Why not sell short term $45 PUTs:
      slickvguy: In the current market scenario, in short term, BAC stock may trade lower. In that case if you have sold the short term $45 PUTs you will be obligated to buy the stock at $45 less the option premium. If you are willing to buy the stock at $45 less the option premium, then whats not to like about buying it at $40 less the option premium. And again, the primary goal is to play the option and make a good return. And not to buy the stock.

      Also selling the JAN 2008 PUT gives the market a reasonable amount of time to correct and come out of the panic and for the stock price to head up or stop falling.

      6. Last, the strategy clearly says that the unwanted outcome is you will end up buying BAC at $38.70. So if you don't think BAC is a bargain at that price, then don't play this strategy.
      View article »
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