brpinion

Will Wal-Mart Growth Plans Move the Stock?

Even better way to buy WMT is to sell mid 40's puts. I have been doing this for the last year and keep collecting the money. If it ever drops below 45 i am a happy owner of the stock.

To Save Las Vegas, We'll Need a Bigger Bubble

Went to Vegas for the first and last time earlier this month. Without a doubt the most unhappy city I have ever visited. Smoke filled hotels and frowns or drunks everywhere.

Falling Option Prices Make Bottom Picking Worth a Look

last sentence should read:

I didn't know Buffet did this but it seemed logical to me.


On Mar 12 10:48 PM brpinion wrote:

> Tom
>
> I just started selling naked puts without using leverage and segregating
> enough cash to buy the stock (minus the minimal amount I need to
> keep in my trading account)in a savings account yeilding 2%. I wrote
> microsoft, csco and walmart puts and will make 10% on stocks I would
> love to own at that price. To wit: msft at 12.50, csco at 10 and
> wal-mart at 35.
>
> I didn't know Buffet did this but it seemed like a logical to me.

Falling Option Prices Make Bottom Picking Worth a Look

Tom

I just started selling naked puts without using leverage and segregating enough cash to buy the stock (minus the minimal amount I need to keep in my trading account)in a savings account yeilding 2%. I wrote microsoft, csco and walmart puts and will make 10% on stocks I would love to own at that price. To wit: msft at 12.50, csco at 10 and wal-mart at 35.

I didn't know Buffet did this but it seemed like a logical to me.

FOF: A Good Proxy for Owning the CEF Industry

forgot to mention FOF charges a management fee thus you are paying a management fee on funds that also charge a management fee. As such the expense of owning fof is to high for me for that little of a discount.

Supply and Demand: Housing Sales Increase in California and Florida

If the government lowers principal what incentive will their neighbors have to keep paying their full mortgage payment? Are we saying the less responsible should benefit at the cost of their neighbor who may be cutting way back to keep up their payments? If I knew my neighbors were getting their mortgage cut I would want the same from the bank.

Also, What about the person who put 20% down and prices drop 25%. He can keep making his payment (because it is on a smaller principal balance) but his neighbor who put nothing down and puts in a pool can get his principal cut 25%?

I cant wait to see how the people who had the audacity to make a large down payment react to principal cuts for people who bought more than they could afford with no money down. And, if you bought any house with no money down you bought more house than you could afford!

Foreclosure Moratoriums: It's Time to Get Real

If the government lowers principal what incentive will their neighbors have to keep paying their full mortgage payment? Are we saying the less responsible should benefit at the cost of their neighbor who may be cutting way back to keep up their payments? If I knew my neighbors were getting their mortgage cut I would want the same from the bank.

Also, What about the person who put 20% down and prices drop 25%. He can keep making his payment (because it is on a smaller principal balance) but his neighbor who put nothing down and puts in a pool can get his principal cut 25%?

I cant wait to see how the people who had the audacity to make a large down payment react to principal cuts for people who bought more than they could afford with no money down. And, if you bought any house with no money down you bought more house than you could afford!

Mortgage Subsidies: Arguably Useless, Likely Expensive

If the government lowers principal what incentive will their neighbors have to keep paying their full mortgage payment? Are we saying the less responsible should benefit at the cost of their neighbor who may be cutting way back to keep up their payments? If I knew my neighbors were getting their mortgage cut I would want the same from the bank.

Home Prices May Be Nearing Bottom, Bank Equities to Follow?

One big reason loans will continue to default in mass is that no one can afford to sell their home. I live in a booming area of atlanta where a hugely successful residential/retail/hot... development broke ground 4 years ago. At that time condos sold by lottery (because there were so many willing buyers) for $430,000 to $490,000 are now being sold in foreclosure between $199,000 and $235,000!

Therefore, no one can afford to sell at a quarter million dollar loss. People can't move for new jobs or if their family expands. I have watched this disaster unfold and wonder if this is happening elsewhere. If you don't believe me look up "Atlantic Station" and the condo/hotel "Twelve" in Atlanta. Check out the prices on realtor.com

Negative Equity the Driving Force Behind Subprime Defaults

One big reason loans will continue to default in mass is that no one can afford to sell their home. I live in a booming area of atlanta where a hugely successful residential/retail/hot... development broke ground 4 years ago. At that time condos sold by lottery (because there were so many willing buyers) for $430,000 to $490,000 are now being sold in foreclosure between $199,000 and $235,000!

Therefore, no one can afford to sell at a quarter million dollar loss. People can't move for new jobs or if their family expands. I have watched this disaster unfold and wonder if this is happening elsewhere. If you don't believe me look up "Atlantic Station" and the condo/hotel "Twelve" in Atlanta. Check out the prices on realtor.com.

What Will Happen to Closed End Funds?

user 276126 is right. CEF's are the only place a small investor can make buys in illiquid securities at a huge discount without driving up the price. I have now sold all my stock holdings and bought NONleveraged CEF's trading at unbelievable discounts. You can buy term CEF's like BEP and RCC at over 15% discounts and they will mature at asset value in 15 months! Including the dividends (and covered calls the funds sell) this will give you well over a 25% return (even with a cut in the dividend) assuming a flat market. The market would have to fall more than 25% before you lose money if you hold till maturity.

Also, why buy oil when you can buy IRR at a 25% discount. Just don't buy on margin and stay away from the leveraged funds. Look at EXG, ETW, EOD, JSN, JPZ for examples of tremendous opportunity.