I'll Buy Nokia If The Company Dumps Windows And Elop [View article]
First, I am long Nokia as well as long Apple. That may be a sign of schizophrenia to some people on SA, however there is a very valid reason why both companies are in my portfolio. The simple reason is that you can't build a house without a solid foundation. Both the IOS and MS operating systems are solid, and tightly controlled. I have experience with IOS on my IPad, and with WP8 on my Lumia 820. I have previously had experience with the older blackberry OS and with several versions of Android. The continuing manufacturer specific changes to the Android OS, and more importantly the customer interactions with the individual android OS is less than optimal. Android as a "free" OS is getting too fragmented and bloated to continue with the current market share. Sometimes you get what you pay for, and Android is a perfect example. I also believe that there is room for BB 10, although I have no experience with that OS. The smart phone market is expanding exponentially, and the reality is that (in the US) people own their phones for two years and move on to their next phone. Both IOS and WP8 offer a continuity of operator interface, and an ecosystem of ancillary applications that are seamless across their product lines. When I decided on WP8 for my most recent acquisition, I was impressed with the fact that once I had learned one manufacturers WP8 interface, I knew them all. I selected the 820 from Verizon, because of Nokia's sterling hardware reputation. The WP8 experience has been extremely good for both me and my wife. We both look back on our previous phones, Razr, Kyroceia, LG, BB Bold, etc., and realize what a quantum leap it was when we moved to WP8. Now if Elop could only market like Apple, I wouldn't have to wait 12 months to double my money.
George, Love your guidance, and hope you won't think it presumptuous of me to add an earnings/dividend pick to your suggestions. I do it to get your feedback on my thought process. MET currently trades at $38.53. Earnings are released 5/1 and there is a dividend of $0.275 on 5/9. I am planning on selling the $38 puts at $0.50 on Monday before earnings. If they don't get assigned I have a >1% return for 5 days "work", and if they do get assigned, I get a dividend, plus the chance to sell weekly options on a solid company with great prospects. I would value your opinion on this trade. Thanks in advance.
For Nokia, Microsoft Is Dead Weight [View article]
I am long Nokia, and have been long Apple prior to assignment of my covered calls. Basically I am agnostic when it comes to phone systems. In fact if marriage was a two year contract like phone contracts, there is no telling how many women would now be my ex. Phone buyers are notoriously fickle. I have had Treos, Razr, BB, even a Kyrocia. I recently replaced my BB with a Verizon 822. I have to say that from a performance and ease of use basis, this is the best phone I have ever had.I absolutely love the hardware and software. My wife has an LG Android, which she has absolutely hated. She is getting an 822 next Friday. So phones, like the stocks of companies who rely on phone sales, are more and more becoming a fashion statement. Two years from now, I plan on getting the best phone I can get at the best price. Last week that was a Lumia 822. Two years from now it may be an Intel based system. I doubt I will be long either Apple or Nokia for the next two years. Those folks who are married to a phone stock or outlook on a phone stock should wake up and realize that phones are fashion, and fashion changes quickly.
Just thought I would point out that BP goes ex dividend 02/13, and the dividend is quite attractive. Time to buy and sell some in the money calls IMHO. Follow your articles faithfully, and you have contributed greatly to my education in covered calls.
Thanks to supply constraints, Nokia (NOK -1.9%) only shipped 30K Lumia 920T units to China Mobile through Jan. 30, even though the world's biggest mobile carrier ordered 90K. Bloomberg reports most China Mobile outlets aren't carrying Nokia's flagship Windows Phone ahead of the Chinese New Year holidays due to the constraints - Stephen Elop has already stated Q4 920 sales were hurt by limited supplies (reportedly due to chip shortages). Nokia's Chinese sales fell 79% Y/Y in Q4. [View news story]
Nokia is moving their manufacturing to Vietnam. Unfortunately it takes a period of time in order to activate a facility like this. here is the Nokia press release http://bit.ly/KpJ6Wg
George Love your articles. A bit surprised that AAPL wasn't among your weekly dividend plays. iMHO Apple is near a low and offers some real weekly premiums and a nice dividend on Thursday.
Will Caterpillar's Bullish Run Last? [View article]
Pretty sure you meant "Buy the February 2013 call with a strike of "97.50' (priced at $2.34)", not the 77.50 price quoted in the article. Obviously when you submitted this article the recent fraud issues associated with the Chinese division had not been publicized. I had 1000 shares assigned at $97.50 on Saturday, and I am looking at an opening price of $96 on Tuesday so I can add this position back into my portfolio, and immediately sell a new covered call.
Going over the fiscal cliff "looks like where we're headed," says Senate Majority Leader Reid. S&P 500 losses accelerate, -0.7%. [View news story]
The reason it is the Democrats fault is simple. They are the ones who fear losing their jobs if they vote for any spending reductions. The Republicans can cut spending and not be torpedoed by the Tea Party in their primaries. The Democrats are seriously a bunch of gutless sissies who won't do what's right because they are afraid of Obama and the want more constituents.
Boehner and the Republicans may also be lacking a spine, but it is impossible for them to compromise with terrified, entrenched morons who refuses to vote for any spending decreases whatsoever.
Taxes will go up on everyone and the Democrats will refuse to make a deal, then do their best to blame Boehner . If the Democrats just do the right thing, they will cut spending at the top level, which is obvious to anyone who has a brain and isn't terrified of the idiot brigade (otherwise known as the Liberal Left ). They won' do that - their plan is to let chaos occur and blame the Republicans .
That's just rolling the dice with the nation's finances so that maybe you have a better chance of keeping your job for two more years.
Pretty disgusting. Why can't they see things the right way
George, thanks for all of the thought provoking articles you have written. I have used a number of your tips and ideas, and have achieved reasonably good results overall. I am joining this conversation to provide you with a dividend that you can not only understand, but also appreciate. It resides in the world of closed end funds. There are a number of closed end funds that describe themselves as "tax advantaged". Two that I own are ETW and ETV. All they do is trade covered calls and other options on a portfolio of primarily S&P stocks. You can see their portfolio at http://bit.ly/o4ngfR. Now here is the great part. They pay dividends in excess of 8%, but because of accounting rules, not financial reality, the majority of the dividends are considered return of capital, and are thus not taxed as income in the current year. Year after year, their NAV grows, yet they still "return capital". Your cost position is reduced every year by the "return of capital", but if you buy and hold, your heirs will inherit at the then current cost basis. Best of all worlds. Options trading in a sane and rational manner. Dividends at a higher rate than I could achieve on my own. Taxes deferred until I'm dead. I only buy these investments in my taxable account. In my 401 K, I use a methodology that at times resembles the methodology you espouse. Again, I enjoy reading your missives and I look forward to the discussions you engender.
According to www. Finviz.com, Apple has slightly over 60,000 employees. Forbes places the number of US employees at 43,000. There is no doubt that Apple accounts for the creation of numerous smaller companies that employee additional people, however the surge of Apple products have also led to job loss in competitive businesses, so the net jobs created due to Apple products is difficult to ascertain, and probably moot. IMHO Apple should be considered as a potential "long", based on rumored innovative products such as Apple TV. Smart phones are rapidly becoming commodity items. Reliance on a single product for high margins led to the demise of companies like Palm (Treo), Motorola (Razor), and now potentially Rim and Nokia.
More on GE Q3 earnings: The company - in the presentation materials for its earnings conference call - lowers its full year revenue growth estimate to about 3% from a previous 5%. Given the year's almost over, it implies GE is expecting below-forecast results for Q4. Shares -2.5% premarket. [View news story]
Becky Quick on CNBC announced she has had a conversation with GE. The 3% figure represents the planned (continuing) decrease from the financial arm of GE. The industrial output component is still factored with a 10% growth phase. Thus as GE explained to Becky, there are no changes in corporate prognostications for future growth.
3 Dirt Cheap Business Development Companies [View article]
I agree with you on the potential for BDC's to provide future income and potential capital gains. I am also long on ACAS and MCGC. My question is why go long on GAIN when the companion stock GLAD has the same board, a higher insiders ownership and a higher dividend? Am I missing something in my analaysis?
I'll Buy Nokia If The Company Dumps Windows And Elop [View article]
Schadenfreude Suits Me Just Fine [View article]
Love your guidance, and hope you won't think it presumptuous of me to add an earnings/dividend pick to your suggestions. I do it to get your feedback on my thought process. MET currently trades at $38.53. Earnings are released 5/1 and there is a dividend of $0.275 on 5/9. I am planning on selling the $38 puts at $0.50 on Monday before earnings. If they don't get assigned I have a >1% return for 5 days "work", and if they do get assigned, I get a dividend, plus the chance to sell weekly options on a solid company with great prospects. I would value your opinion on this trade. Thanks in advance.
For Nokia, Microsoft Is Dead Weight [View article]
Gloom Of Night [View article]
Thanks to supply constraints, Nokia (NOK -1.9%) only shipped 30K Lumia 920T units to China Mobile through Jan. 30, even though the world's biggest mobile carrier ordered 90K. Bloomberg reports most China Mobile outlets aren't carrying Nokia's flagship Windows Phone ahead of the Chinese New Year holidays due to the constraints - Stephen Elop has already stated Q4 920 sales were hurt by limited supplies (reportedly due to chip shortages). Nokia's Chinese sales fell 79% Y/Y in Q4. [View news story]
http://bit.ly/KpJ6Wg
Rolling With The Punches [View article]
Love your articles. A bit surprised that AAPL wasn't among your weekly dividend plays. iMHO Apple is near a low and offers some real weekly premiums and a nice dividend on Thursday.
Will Caterpillar's Bullish Run Last? [View article]
Going over the fiscal cliff "looks like where we're headed," says Senate Majority Leader Reid. S&P 500 losses accelerate, -0.7%. [View news story]
Boehner and the Republicans may also be lacking a spine, but it is impossible for them to compromise with terrified, entrenched morons who refuses to vote for any spending decreases whatsoever.
Taxes will go up on everyone and the Democrats will refuse to make a deal, then do their best to blame Boehner . If the Democrats just do the right thing, they will cut spending at the top level, which is obvious to anyone who has a brain and isn't terrified of the idiot brigade (otherwise known as the Liberal Left ). They won' do that - their plan is to let chaos occur and blame the Republicans .
That's just rolling the dice with the nation's finances so that maybe you have a better chance of keeping your job for two more years.
Pretty disgusting. Why can't they see things the right way
The Myth Of Dividends [View article]
I am joining this conversation to provide you with a dividend that you can not only understand, but also appreciate. It resides in the world of closed end funds. There are a number of closed end funds that describe themselves as "tax advantaged". Two that I own are ETW and ETV. All they do is trade covered calls and other options on a portfolio of primarily S&P stocks. You can see their portfolio at http://bit.ly/o4ngfR. Now here is the great part. They pay dividends in excess of 8%, but because of accounting rules, not financial reality, the majority of the dividends are considered return of capital, and are thus not taxed as income in the current year. Year after year, their NAV grows, yet they still "return capital". Your cost position is reduced every year by the "return of capital", but if you buy and hold, your heirs will inherit at the then current cost basis. Best of all worlds. Options trading in a sane and rational manner. Dividends at a higher rate than I could achieve on my own. Taxes deferred until I'm dead. I only buy these investments in my taxable account. In my 401 K, I use a methodology that at times resembles the methodology you espouse.
Again, I enjoy reading your missives and I look forward to the discussions you engender.
Cramer And Apple [View article]
More on GE Q3 earnings: The company - in the presentation materials for its earnings conference call - lowers its full year revenue growth estimate to about 3% from a previous 5%. Given the year's almost over, it implies GE is expecting below-forecast results for Q4. Shares -2.5% premarket. [View news story]
3 Dirt Cheap Business Development Companies [View article]