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Eric Aceves
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Mr Aceves has been investing in the financial markets for over two decades and became involved in the financial services industry as a retail stockbroker in 2002 . His speciality was individual stocks, with an emphasis on superior service for his clients, which included being avaliable to speak... More
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  • Portfolio Update
    Its been awhile, so I thought I would give a portfolio update for those of you that read my work.

    I recently closed out my position of WAG at $34.00. This is a return of about 25% on the largest pharmacy chain in the country .

    I am selling my MSFT JAN 2011 $20.00 calls. While I still like the stock longer term, I don't want to get into a situation where I only have two months left for the idea to work itself out.

    This will show up as a small loss on my 'track record."

    I am still holding my JAN 2012 $20.00 calls. I  still like the stock,for the reasons mentioned in an earlier post .

    The market has given us another "gift" which I will be writing up this weekend, you might consider playing this stock.

    Your Friend,


    Disclosure: LONG JAN 2012 $20.00 Calls (NASDAQ:MSFT)
    Tags: MSFT, LEAPS
    Nov 20 12:46 AM | Link | Comment!
  • Microsoft: Time to "Leap?"

    After the carnage in the market , it was good to see a nice rally this past week.

    Even though that occurred , it was also nice to have the market give us an opportunity to get into one of the most successful and cash rich companies in the world .

    That would be none other than Microsoft (NASDAQ:MSFT)  I think it is pretty safe to say we have heard of them and have used their products at some time in our life .

    One of the products that did fail was the KIN mobile phone which was pulled only 50 days after being out on the market . This was obviously  not one of their better moves in their long successful history.

    This does not bode well for their next entry which would be the Windows Phone 7 which is due to come out in the next few months, but even though that might not pan out for them there are some nice positives .

    Nearly three fourths of the company's and nearly all of its profits come from the non consumer business side . This would include Windows 7, XP , and Vista .

    The company has thirty seven billion dollars in the bank , thus they have the capability to raise the small dividend if they choose to in the future .

    According to market research giant IDC, sales of software is expected to jump 3% this year as businesses start to upgrade hardware and software that was postponed during the beginning of this recession.

    In addition, Microsoft has stated they have recently shipped far more copies of Windows 7 -150 million and counting than almost anybody foreseen.

    At twenty four dollars and change , this looks like a gift that the market has bestowed upon us , and I think it is time to take advantage of buying into this world class company .

    In my opinion , this stock revisits its old 52 week high of the low thirties in the future giving an investor a gain in the neighborhood of twenty five percent .

    The other way to play it would be to purchase either the Jan 2012 20 call options that are currently in the price range of $ 6.65 per contract .

    Aggressive investors might take a look at the Jan 2011 20 call options that are currently in the $5.50 range . 

    The delta for the former is currently at .75 , while the latter is at .80 . 

    For the right investor, owning the LEAPS would allow the thesis time to develop while committing only a fraction of the cost of 100 share purchases .

    This is for informational purposes only, please consult with a licensed professional before investing .

    Investor assumes all risks .

    Disclosure: Long Jan 2011 and Jan 2012 20 call options
    Tags: MSFT
    Jul 12 5:43 PM | Link | Comment!
  • Walgreens : Time To Buy?

    Like I wrote in one of my earlier posts, the market deals the cards and you are the player .

    It looks like the market has dealt us a nice card at this time .

    That "card" would be Walgreens Co. ( WAG) the largest drug store chain in the country .

    The stock was punished due to the higher costs related to the health care rules as well as the $623 billion buyout of Duane Reade .

    In addition, the decrease of lower sales of products related to the flu were a factor.

    There were a few good points including

    1) An increase in filled prescriptions
    2) An increase in Retail Pharmacy share .
    3) Increased exposure due to the Duane Reade purchase .

    This stock has had a fall from grace since touching its 52 week high back in the fall of 2009.

    However, these are the types of stocks that can make you  money . World class companies that are taken down by  bumps in the road .

    Unlike insanity,  looking for world class companies that have been crushed in the market is a process that one can do over and expect the same result.

    What I think happens is that once the stock gets pushed into the background , the big players step in and pick up shares  looking to pad their returns.

    This is a company, unlike Blockbuster (BBI) that is in good fiscal shape . This is only the largest drug store chain in the country .

    I think this stock goes back in the $ 35.00- 40.00 price range, and you make money  by playing this stock.

    There comes a time when you throw out things like free cash flow , candle charts, and other things and just rely on  common sense .

    Walgreens is one of those examples .

    Disclosure: This is for information only . You assume all liabilities by following any action written in this article .

    Disclosure: Long Walgreens
    Tags: WAG
    Jun 22 8:01 PM | Link | Comment!
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