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svosavvy

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  • How To Get Monthly Income By Writing Covered Calls In Your IRA [View article]
    Sorry "invaders" is trademarked by me, right here right now! lol
    Apr 30 08:23 PM | Likes Like |Link to Comment
  • JPMorgan Is Near A Buy Point [View article]
    Was talking about the demographic being sold to here. Male female smarter don't care
    Apr 30 08:20 PM | Likes Like |Link to Comment
  • How To Get Monthly Income By Writing Covered Calls In Your IRA [View article]
    As a value/growth hybrid investor, the only thing I can really offer for options strategies are 1. ignore the noise (whoops sorry 1. never lose money:) 2. don't forget either of the rule #1's 3. think deeply about how you view your world and where the puck is headed, options allow you to follow your more wild fantasies without risking the kind of capital grounded in reality. 4. 99% of the time options are overpriced just like stocks this generally benefits the margin seller, remember that. 5. selling a covered call against a good stock is generally a bad call. Your stock has a good day and instead of being a happy shareholder you get blown out if you are comfortable with that (I am) then o.k.

    Another place where where you can use options effectively in IRA's that is not spoken of much is asset allocation. You have very constraining contribution allocations in IRA's $5-6000/year. You can use long dated options as stock specific "futures" allocations, kinda like: I want a position in stock ABC because it is cheap now but can't allocate cash to it this year. Get the leap option as a way to get ABC's price action this year with the option to buy with next years money.

    To be true to rule #1 don't lose money, you need to be extremely adept at this options game which is definitely not most IRA investors. Options in IRA's are for what I call "Invaders" part INVestor part trADERS a rare breed. Something as an aside that most IRA people don't know is if you exercise an option or have an option exercised on you it most likely will generate a commission at most brokerage houses something to bear in mind if you float out a batch and they are getting exercised by people at different times.
    Apr 30 02:51 PM | 1 Like Like |Link to Comment
  • JPMorgan Is Near A Buy Point [View article]
    JPM I initiated a position around thanksgiving time, check my stocktalks for proof. JPM is a heck of a bank, they do have many "good will" chips in their corner most notably Jamie Dimon, also the fact that going into the meltdown really it was mutually assured destruction no two ways about it. In that environment you have to ask yourself what makes one bank get a monster loan to buy another bank instead of joining them at the gallows. How do you disseminate this... I mean really. You want fundamentals here you go: PE<10 of last years earnings (pretty decent) price/sales at I believe 1.68 which for a bank under 2 is pretty reasonable really once we get back to an environment where banks actually conduct banking which is not a flashy 5. Still trades less than book I believe which it is still hard to judge book here imo the world is still pretty crazy for hard and fast asset values. Strong stock buyback strategy here is good at this valuation imo, dividend is only taking about 25% of earnings give or take, strong and sustainable imo. If you want some insurance my strategy has been buy the stock collect the nice dividend, then sell the 50$ leap call against your position. If your stock dips into mid/high 30's buy calls back keep stock pocket the option proceed and dividend, wait for it to come back to mid/low 40's sell the call again. If we get a european sh@tstorm and it get into the low 30's buy more stock. If it totally tanks being that it is a correlated proxy overall bend over and enjoy the ride:)

    If you feel like you missed JPM when looking at a 9 month chart which is really how you should feel, then imo (NO CREDENTIALS WHATSOEVER!) look across the pond at BCS. You are going to find nearly the mirror image of JPM imo. Charismatic leader you got it in Bob(bestofbreed:) Diamond. Cheap fundamentals similar to JPM. Basically in the same businesses commercial banking, private client banking&investments, world presence aggressive opportunistic. From what a person can tell not as much rigor bloat on the balance sheet as their peers although I like JPM assets best. Just my 2 cents.

    Also I think JPM is marketing to a very sharp customer demographic these days which I think is really smart. That customer I think is a mid 30's professional female wielding an ipad and looking at buying a new car that is one of these low priced with a high priced badge type. If you believe in the consumer retail barbell strategy as I do, then there is milk&honey at the bottom of that top barbell. Welcome to the new middle class my friends. Grab a slate, freedom, or ink card. Laugh at the dorky young male banker in their commercials making a fool of himself and realize the statement. Bankers are not scary they are dorky young males not as smart as us young females. Have a nice day.
    Apr 30 12:39 PM | Likes Like |Link to Comment
  • There's a growing sense that "much more needs to be done" to restore confidence in Chesapeake (CHK -2%) than only letting the Founders Well Participation Program expire. Analysts say the board should separate the chairman and CEO positions or even fire the whole bunch, but "given the litany of historic indications and most recent indications, this board appears to be incapable of doing that."  [View news story]
    ask why. :)
    Apr 27 10:54 AM | 1 Like Like |Link to Comment
  • Honda (HMC) FQ4: Net profit +60% to ¥71.59B ($887M), operating profit +142% to ¥111.98B vs. consensus of ¥123.2B. Guidance: FY 2012/2013 op profit ¥620B vs. ¥231.36B and consensus of ¥645B; global car sales +38% to 4.3M units, motorbikes +10% to 16.6M. (PR)  [View news story]
    HMC long and strong
    Apr 27 09:32 AM | Likes Like |Link to Comment
  • Top 10 Corporate Bond ETFs [View article]
    Thanks for the article, something I have been looking at is while we are in a ZIRP environ, investors have to be wary of where they are parking their cash. In many instances "hiding out in cash" for the average person with a retirement account equals staying in money market where the expense ratio is most likely overcoming the pittance of yield. This would mean instead of standing still they are actually going backward not even counting the current little inflation. This has led me to move up the risk curve with my "cash" for a while now. Been using the fund VFSTX short term investment grade as my home base for undeployed capital. I like your list and my general bias is to stay shorter on my maturities and bide my time in low yield land. I like VCSH for this purpose in brokerage accounts.
    Apr 25 11:26 AM | Likes Like |Link to Comment
  • Vale Poised To Surprise Wall Street And Reward Investors In 2012 [View article]
    I agree with your thesis and thank you for the article. Long Vale leap calls jan'14 at the 25 & 30 strikes.
    Apr 13 10:59 PM | Likes Like |Link to Comment
  • GE's 2012 Proxy: Pleasing Performance? [View article]
    You really have to ask yourself why you would want to issue more shares in this environment for any reason. I think of it like this: we are awash in liquidity if you are big and can tap the debt markets which GE certainly is big. Interest rates on debt (Read bonds) are pitifully low. Share prices are historically low meaning basically you are selling low if you issue more shares here(mucho shareholder unfriendly). If you issue shares here imo you should get a nasty phone call from Buffett like the one Irene Rosenfels (KFT) got last year for selling the pizza business and issuing shares when she could have borrowed cheap money and bought cadbury outright. Imo if the board wants share compensation, why don't we give them out of the money options and plenty of them so they can be richly rewarded for achieving benchmarks, instead of paycheck mediocrity. There is a good reason why Buffett owns(ed) GE debt and warrants and not stock (same reason he owns BAC warrants and debt and not stock), because they will never go bankrupt the government will make sure of that so the debt is secure. Warrants will payoff like a lottery ticket if the mangement gets it right. By buying the shares you are rewarding the mangement and praying they will do the right thing which history may not be on their side. Yes I spelled management wrong on purpose. Long GE shares that are in the money picked up during the crisis, I don't know how long I will own them when Mr Immelt wants to pour water in my whisky.
    Apr 11 11:15 AM | 2 Likes Like |Link to Comment
  • 5 Very Good Buys For Dividend Income [View article]
    Completely agree. Sold my ECA that I have had for about 6 months down 20% I thought it was cheap back then, oh look cheaper now:) My ECA leap calls of late are up 46%. Play this one with options, it will be a good stock again someday. You may just get wiped out waiting for it though. Great company and I like Kitimat play but... Nearly 1 to 1 correlated with nat gas price, earning nil right now, bookable assets that fluctuate in value with the price of the commodity, financing dividend with debt. Don't fool yourself thinking this is a conservative dividend play. Nat gas will have a lot better visibility in a couple years and 2014 leap calls are cheap imo. Make your move before they announce next week in case they say something encouraging though I imagine it will be more of the same. These options will be your ticket to the show in a couple years, exercise them for stock or sell them outright for profit in a couple years. Or if it all ends badly then you've only lost a fraction of what you would have buying the stock. Nat gas needs demand, supply isn't going away. This demand could come from utilities, if you get a big regulatory hit in the coal industry you will get nat gas demand. This would also lead to increased nat gas infrastructure (jobs). Not trying to tick off the coal guys, but, this is a political layup you could see both sides coming together on it. The left gets to trash coal, and regulate. The right gets pipeline infrastructure, jobs, and a happy american petroleum institute. This very well could be the bottom for nat gas prices, but, you have to ask how long do we bottom for. These companies are starving everyday that we plumb the depths. Smartest player in this space imo is XOM they bought their ticket to the nat gas show and basically get the comfort of just hanging out and can ramp when it comes around. Dem's gut check time: what's worse mountaintop removal or fracking.
    Feb 3 11:41 AM | Likes Like |Link to Comment
  • This Isn't Really Just A 'Trash' Rally [View article]
    I agree with you on LUK so dip already so I can buy some. National beef acquisition=smart smart smart.
    Jan 30 03:57 PM | Likes Like |Link to Comment
  • Profiting Off The Pembina, Provident Merger [View article]
    Hawk: Have you looked into the Kitimat LNG terminal project. Given your take on the whole keystone deal it seems to fall in line with North American energy going to Asia. Korea-noc's buying lock, stock, and barrel of Harvest energy a couple years ago supports thesis as well.

    Arch: Been employing the same strategy with PVX for years in my Roth as well. DRIP'ing along the way. Mostly because I'm lazy, I knew someone who held canroy's in a straight brokerage account and was like wandering around the mulberry bush figuring out what was profit and what was actually return of capital that and being a US holder to boot. I am glad the new entity will be listed on the NYSE. This is a good thing. You will see a deeper liquidity pool and new set of buyers who can't buy pinks like certain fund managers. Who knows with this merger being billed as the start of one of the largest canadian pipeline companies I think you could see people buying this in the future who have never heard of either of these guys. I love "pipeline" "energy infrastructure" equals to me steady profits with less volatility than E&P. Maybe some fund money that goes to kinder morgan or magellan will flow this way. That and maybe a CNBC pump down the line won't be bad either.
    Jan 24 12:13 PM | 1 Like Like |Link to Comment
  • 4 Dividend Stocks To Consider And 2 To Avoid [View article]
    Agree on ECA. They are paying out that div with company fat it is higher than their current meager earnings. I think the nat gas price struggle will be quite fabian and long term this benefits ECA because they have a lot of fat to survive the winter. Companies without fat will starve in the nuclear winter that is nat gas prices. I have a small ECA stock position from when I thought they were cheap last year. Obviously they are cheaper now ha ha. I am considering playing ECA with really long dated options to the bull slant call buys put sales right now I can't throw big kid money at them too dangerous imo. Speculate with options on this one in my opinion. I would not be surprised to see a dividend cut. If it does I think you could see a whoosh with a lot of volume. After the toilet flushes I think you will get an opportunity.
    Jan 17 10:01 AM | 1 Like Like |Link to Comment
  • Today In Commodities: Thanks For The Help, Benny [View article]
    I disagree about Ben's performance today. Ben put forth the right tone IMO. Throwing his weight behind the yuan issue, giving jawbone support to the idea of further action, and calling it correct that the EU are a bunch of incompetents that have the ability to run the world off the train tracks. The EU really remind me of a failed marriage or better yet a couple that shacks up for the sex, but hits the road when the going gets tough. The husband monetists are upset because the wife got sick of their bullcrap and got a credit card behind their back and ran it up. You know my dad has a very succinct term for this conundrum, it is called "sh$t or get off the pot". Beside the fact that the US is so dynamic that you can try again if you fail, the other thing that makes us great is that we have a powerful marriage made up of 2 parties who have opposing viewpoints, but, know that the whole equals more than the sum of it's parts. Thus, despite disagreements my political counterpoint is my brother in the foxhole when times get tough. We have civil rights and civil wars under our belt we are an old hand at muddling through together. If we can maintain our civility when dealing politically we'll do well. That said, I am saddened of Mr. Christie's decision. I think he is selling himself short.
    Oct 4 06:42 PM | Likes Like |Link to Comment
  • Silver Wheaton Meets a Lot of Buffett's Core Criteria [View article]
    This article couldn't be further from the truth, but, thanks for the input. Buffett doesn't touch commodity companies with a ten foot pole. Buffett hates commodity companies with a passion, silver after all is a commodity. Every dog has its day and today is silver's. That said I am long some silver. Buffett hates commodity companies because commodity companies fight with each other for the lowest goods price to market. Buffett likes companies with strong intrinsic values that other companies cannot duplicate. Think sees candy or coke. SLW sells something that a thousand other producers can bring to market. Buffett also hates monster industrials that have huge depreciating costs (think big machinery that constantly needs to be replaced using operating earnings). Buffett likes toll bridges which are companies that deliver something no one else can duplicate therefore can control the pricing. I am not saying SLW is a bad company, let's just temper the Buffett references when we're talking commodity spec.
    Sep 13 10:15 AM | Likes Like |Link to Comment
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