caygee

Amazon, Apple, Google: Buying on the Way Down

How about getting paid to buy a stock cheaper by 30% from today after 4 months . Take a value stock with low debt like COP at 47 and sell 30 Put for April or May 2009 and get paid 2 dollars or so for a risked capital of 30 ;

Canadian Pacific: The Benefits of a Railway Stock

yes. CP looks to be a good buy , but I am becming more pessimistic day by day and I want to take a safety margin of another 30% plus drop in the stock to near the 25 level. It is possible to "catch the falling knife"at this level for CP and get paid for it - sell the 30 March Put on CP for 1.5 $ - one gets a return of 1.5 on capital of 30 risked for 6 months , this equating to a 10% return .

More illustrations can be seen in my blog.

Are Frontline and Overseas Shipping Worth Another Look?

The shipping stocks are indeed looking cheap , but I am scared that we are now in a clear secular bear market and valuations may get very cheap, and FRO is highly leveraged . I prefer a company with no or low debt and hedge it by another 30 % assuming market will fall not more than this in next 6 months . One can get 15% p.a return on Conoco - ticker :COP by using this strategy

Valuing Stocks During a Recession

Its hard to invest even in value stocks as the earnings estimates are now totally unreliable and consumers are not going to spend money .
Best one can hope is to hope the value stock you picked is not going to lose more than another say 30% in next 6 months and try to hedge this fall.