connorport

How Stocks Perform After Being Added to the Dow

I have to agree that AAPL would be best suited as it is one of the many that is not overpriced and the strength of this comany goes all the way back to the pioneering of an industry in this country. Google to me seems a strong but lackluster choice due to its unbalanced portfolio at this point. AAPL seems to always be pulling a rabbit out of their hats and seems more destined to have longevity. My position is none in AAPL.


On May 28 01:02 PM Andy Zaky wrote:

> Ok. I cannot comprehend for the life of me why people think Google
> should be added to the dow rather than any of these other companies
> you've listed? In fact, none of those companies ought to be added
> because they're all high beta stocks. High beta stocks would keep
> volatility high in the index and thus drive away potential investors
> who see it as uncertainty in the market. But why Google in particular?
> Google is small beans compared to some of the other companies you
> mention. Apple is a far more viable candidate than Google as Apple's
> financial are far superior on nearly every front. See for yourself:
>
>
> Apple
> Cash: $28 Billion
> 2009 Expected Revenue: $35.4 Billion
> 2010 Expected Revenue: $40.9 Billion
>
> Google
> Cash: $17 Billion
> 2009 Expected Revenue: $16.79 Billion
> 2010 Expected Revenue: $19.07 Billion
>
> As you can see. Google is small beans compared to Apple. To be a
> potential dow component, you've got to be reining in the revenue.
> Sales, beta and cash are the key metrices that determine whether
> a company is dow viable. And the key reason that revenue and net
> cash are central is because a company can always figure out a way
> to strengthen margins but its easy to produce $50 billion in sales.
> Cash is also key because it tells a story about the strength of the
> company's balance sheet. Apple does more in revenue, has a similar
> growth rate as google on net income, has more 50% more in net cash
> and is generally a larger company than Google. And both are high
> beta stocks. Google shouldn't be even mentioned at all.

10 Bullish Option Spread Strategies

My opinion is that bears should buy these stocks and sell covered calls on them. If they run then you would chase the stock value upward but if they fall a little you buy back to cover and keep the change to pay for the equity. Wait for a run back up and sell some more covered calls. I think the volatility here and the low stock price is the prime time for this play.

10 Bullish Option Spread Strategies

APWR is not a solar stock. They are Wind Energy. My call on APWR would be to buy June $12.50 or $15 calls. Earnings will be beaten severely again on June 1 earnings call and i think we see a run to nearly $17. New contracts and the completion of one of the largest Windturbine Manufacturing plants in China with support and Billions in commitment from the Chinese Govt and Superior involvement by GE i think this stock is set to sail to $30-$40 by the end of 2011 if not sooner.