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fullyinformed

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  • McDonald's: The Powerhouse You Never Think Of, When You Think About Innovation [View article]
    A bit too long an article for sure but overall his comments actually give no solid reasons for the run-up. I did find it interesting that comments were made on CNBC a day before the rally commenced that McDonalds should possibly consider buying out Shake Shack (SHAK) and shortly after that the stock started a rise. Stranger things have happened. Overall though even with the rise, there are better strategies to use than buying and hoping the stock sails higher. I have traded in MCD Stock for more than a decade through using simple option strategies which have earned far more than the stock appreciation over that same period and with less risk to the capital in use. It's a great company for investors if a strategy is used that requires less capital than stock ownership and higher protection for capital in use and still returns more than stock ownership could ever do.
    Teddi Knight fullyinformed.com
    Mar 2, 2015. 10:59 AM | 4 Likes Like |Link to Comment
  • Tracking Carl Icahn's Portfolio - Q4 2014 Update [View article]
    Always a great read! Thanks so much for your efforts in following Ichan's portfolio. It keeps reminding me that even pros lose capital. It also reminds me why I invest through the use of options to protect my positions. Not having the required capital in my portfolio that allows me to lose a few billion dollars, I believe strongly that most investors need to establish strategies that protect capital first and grow their portfolios second. I also think this is a distinct advantage small investors have. We have more flexibility and are able to make moves quickly. Even Warren Buffett in his latest comments to shareholders warned about the problems of being "too big". Thanks again for your work. I always look forward to reading your write-ups. It keeps me focused on protecting my capital from losses.
    Teddi Knight fullyinformed.com
    Mar 1, 2015. 01:10 PM | 2 Likes Like |Link to Comment
  • Gold: Value, Re-Propositioned [View article]
    Excellent analysis both in the article and I particularly liked mikeivy1952 comments on currencies. A lot of misconception exists about paper currencies so kudos for his comments. I have been investing for 4 decades and been through at least 2 huge run-ups in gold. If I had spent $1000 in gold in 1974 and $1000 in the SPX index, which would have more value in my own lifetime? It is the SPX index. Obviously gold needs more than my lifetime.
    I thought the comment about the thirteen pounds of gold buried for a millennium under the sea was interesting. But then I wondered if the individual who lost this gold had spent it on a parcel of land in Italy, France, Germany or Israel, how much would it be worth today? Probably a lot more than the gold. I guess it depends on what parcel of land he bought. LOL.
    The problem I have always had with gold is that it would seem to me that its true value lies in future generations while my concern is with my own investments which I can then gift to my grandchildren who in their turn can grow it and gift it to their children. Just my opinion but I think gold has always been a bit overrated for the average investor's portfolio consumption.
    Teddi Knight fullyinformed.com
    Mar 1, 2015. 12:58 PM | Likes Like |Link to Comment
  • It's A Stock-Picker's Market: A Look At The S&P Through Analyst Consensus Targets [View article]
    I sometimes think it is always a stock-picker's market. I think the most important aspect of investing no matter what the charts show or the outlook, is to focus on safety of capital first and the profit second. In any market when it reaches new highs, investors and analysts fret. Instead consider using strategies that provide a high level of protection. There are dozens of strategies that even novice investors could use to provide a degree of protection to trades. The problem for a lot of investors is the ease of an approach of buy and hold and how ingrained it still is. Many investors continue to risk capital without having even the most basic of plans, like a stop-loss or a price point where they would exit a trade and look for another. Instead they place capital at risk and watch as their stocks move up, down and sideways, with no clue on how to actually invest. Recent studies show that most retail investors that continue to buy stocks are doing so with no clear plan and no idea when to exit a trade. They are basically trading through a strategy of "buy and hope". It is a shame because basic simple steps can be used by any investor to learn how to invest with safety of capital front and foremost. Thanks for your article. I very much enjoyed it.
    Teddi Knight fullyinformed.com
    Mar 1, 2015. 12:28 PM | 1 Like Like |Link to Comment
  • Apple Investors Take Note - Samsung And Xiaomi Are On The Attack [View article]
    An interesting article and well researched but there is more to profiting through investing in Apple than this article covers. When it comes to investing, it's all about the company which means its balance sheet, management, market growth, innovation and in the case of Apple, the"Wow" factor. While it is true that Samsung holds a lead over Apple, the author does not give enough credit to the continue growth of Apple iphones let alone their other products. The Apple smartwatch will never replace the iPhone market but it is another product Apple can expand market share on. The Apple smartwatch is only just being introduced and while at first glance a lot of analysts felt the whole "smartwatch" sector was not all that exciting, this now appears to not be the case with Apple's product. What is important is understanding the company when investing for profits. Apple's products command a premium price and provide a premium markup for the company. There is more to Apple than just competing with Samsung. It has an incredibly strong balance sheet built by consumers paying a premium price for their products. To profit from a company like Apple, investors need to think a bit beyond the usual buy and hold approach. I trade in options against Apple stock, through short-term strategies that "follow" the stock from "a distance" using weekly options. This allows greater flexibility of adjusting to the trend to keep trades profitable and enjoy profits from the stock as it continues to rise. Should Apple Stock turn the other way and begin a lengthy decline, my positions end and I can move elsewhere. Personally I think Apple Stock has much further to rise over the next couple of years but while I might be bullish on the stock, it is always best to invest knowing that change comes to many companies including Apple. While it has been a terrific stock for many years now, that can easily change. By staying with strategies that earn profits now but take a short-term approach, I am basically reusing the same capital each trade which put a control on possible losses while bringing in gains to grow the trade weekly. When those gains end, so does the trade. Trading does not have to be complicated.
    Teddi Knight fullyinformed.com
    Mar 1, 2015. 12:14 PM | Likes Like |Link to Comment
  • A Better Entry Point For Apple Will Become Available For Patient Investors [View article]
    Excellent article. I would be advising your friend that it is probably not ever worth actually OWNING Apple Stock as a long-term investment. They should instead consider a strategy of selling leap puts against the stock until they are finally in the stock at a price point that makes sense. For example selling the January 2015 expiry $90 put strike traded as high as $4.53 on Aug 1 2014 for a return of 5 percent for 6 months. If the stock moves lower they can adjust their position or simply roll out at the $90 strike and into April of 2015. At $90.00 their break-even would be $85.47 which was $598.00 before the split.
    To me it does not make sense to buy and tuck this type of stock away but then I tend to be conservative. For some people, just holding the naked calls at $90 and earning 5 percent makes them feel like they are invested and "doing something". Even buying stock and selling some covered calls is better than buying and hoping it all works out.
    That might be an easier way to convince your friends than trying to explain the 7 to 1 split. Personally I am doing Apple Credit Put Spreads using the biweekly options. All my trades are on my website at fullyinformed.com. This year Apple stock trades are up over 27% since January. But trading in options is not for everyone as many investors do not understand the value and protection that options provide. People think options are risky and stocks are safer. It is actually the other way around. Stocks are the risky asset and options can be used to reduce the amount of risk often through very simple trades.
    Teddi Knight fullyinformed.com
    Aug 2, 2014. 08:26 PM | 7 Likes Like |Link to Comment
  • It's Time For AT&T [View article]
    An excellent analysis but I believe for the average investor the strength of the stock is actually the dividend. By using that strength to sell options against AT&T investors can earn annual double-digit returns. Whether through selling puts or selling covered calls or combining both, nvestors can build a much stronger portfolio with a stock like AT&T. While 5% is certainly a wonderful dividend, double-digit annual returns are easy to generate with simple option strategies which provide profit as well as protect the original capital in use from losses. All my AT&T Stock trades are on my website since 2011 and show how any investor with a bit of work can more than double the annual dividend. Thanks for your article.
    Teddi Knight fullyinformed.com
    Jul 14, 2014. 12:53 AM | 6 Likes Like |Link to Comment
  • Facebook: Forget The Drop [View article]
    While I like Facebook stock and agree with most of your analysis, I do not see it as a solid stock for long-term growth. To me it is a speculative stock that still has work to do to grow its revenue base. From that perspective i much prefer earning annual double digit returns through selling options against the stock rather than buying and hoping it works out. I can see the rational behind the stock ownership and the thinking on the overall outlook, but at present I prefer earning actual capital while the stock tries to grind its way higher and to do that means using simply option strategies to keep generating profits on the stock rise or decline itself. All my Facebook stock trades are on my website at fullyinformed.com
    Thanks for the article and the analysis. They were exceptional.
    Teddi Knight fullyinformed.com
    Jul 11, 2014. 02:09 AM | 2 Likes Like |Link to Comment
  • Bank Of Nova Scotia: 4 Reasons Why I Bought A Position [View article]
    I would agree with your outlook and article. BNS Stock is an exceptional stock both for long-term portfolios as well as those of us who like to trade using stock and option strategies. I have been in Bank of Nova Scotia stock for 15 years using everything from naked puts to covered calls to simply stock ownership for the dividend. On average I have earned anywhere from 10 to 15 percent annually although in the crash and the subsequent recovery the stock was so badly hammered I will not be selling the stock I bought in early 2009. That stock is tucked away for my grandkids. The beauty of a stock like BNS is every dip is an opportunity for another trade. Since Feb of this year the stock has been on a tear and above $72 it may be a little ahead of itself. It is hard to get hurt trading most Canadian Banks. Even the small National Bank of Canada (NA) which fell back to $45 recently was a definite buy at $45. The problem for a lot of investors is not understanding the Canadian Banking sector as well as Canadian real estate which seems to keep worrying investors. All my BNS articles and trades are on my website fullyinformed.com along with the latest National Bank strategy. Canadian banks are among the strongest of Canadian stocks which makes them ideal for investing and trading purposes.
    Teddi Knight
    Jul 8, 2014. 04:08 PM | 1 Like Like |Link to Comment
  • Intel: 8.7% Return On Investment [View article]
    This year has seen some of the largest buy backs undertaken by corporations in literally decades. While nice to see and certainly it can assist in stock appreciation depending on the revenue growth of the underlying company, I do not think it is the best use of available capital and not the way to invest for profits and income, capital gains or otherwise.

    Putting together strategies that take advantage of simple option trades against a trending stock like Intel will earn far more annually than any corporate buy back of shares. I have traded in Intel Stock since 2010 with double digit annual returns through simple strategies like selling puts. All my trades are on my website since 2010.

    While I applaud companies for share buybacks, there are many other uses for available capital to improve shareholder value that are aimed at growing overall revenue further through acquisitions and R&D to expand the company. This is a longer range use of capital and while the results may not decrease the stock float size they often lead to significantly more revenue and thereby increase the stock valuation, overall company size and potential.

    Just my two cents but if I have the choice between applying billions to a share buyback and applying that same capital to revenue growth streams, I prefer growing the revenue every time.
    Teddi Knight fullyinformed.com
    Jul 1, 2014. 10:04 AM | 2 Likes Like |Link to Comment
  • High-Yielding AT&T Is Making Me Anxious [View article]
    While the dividend may seem attractive, earning 5.2% on a stock that may have no capital gains worth mentioning hardly seems like a great investment. If you are still interested in AT&T stock consider buying the stock for the dividend but sell leap covered calls at a variety of strikes to boost the dividend and possibly earn a capital gain if the stock moves higher. If it doesn't move you will still have earned far more than 5.2% and probably can beat the S&P return annually. All my AT&T Stock trades are on my website since 2011 during which I have earned double digit annual returns through simple stock and option strategies. Sometimes you need to think a bit differently about a stock and look for better trading opportunities or methods.
    Teddi Knight fullyinformed.com
    Jun 30, 2014. 01:56 AM | Likes Like |Link to Comment
  • Intel Breaks Out Hard To The Upside [View article]
    Companies like Intel that are leaders in their field are worthy of investors taking time to study a variety of trading strategies to profit from what many others see as anemic growth. The trading pattern Intel has had for the past 15 years has been superb for everything from Put Selling to short-term trading. Intel has created double-digit returns in my portfolio annually through easy to apply strategies like Put Selling or credit put spreads and the odd trade when the stock got too low. The strength of trading in stocks like Intel is their staying power. When Intel was collapsing with the rest of the market in 2008 to 2009, it was obvious to buy the stock for $13 and under. All my Intel trades for the past 5 years are on my site fullyinformed.com That's the beauty of big cap blue chip stocks like Intel, PG, KO, CAT, PEP, MCD. They will outlast most investors lifetimes so you know when you buy it while others are dumping it, one day you will be vindicated as it rises again.

    Teddi Knight
    Jun 13, 2014. 10:30 AM | 2 Likes Like |Link to Comment
  • Bristol-Myers Squibb Should Be In Your Retirement Portfolio [View article]
    Good analysis and certainly fair. I don't think BMY stock though is best for a retirement portfolio if the goal is to build a dividend paying portfolio with stock price appreciation. The dividend growth is unimpressive, as you say. Instead I prefer trading the stock through selling put options when the stock tumbles such as it is at present. This is what presents some exceptional profit making opportunities and the trades are simple to implement. That way, even if assigned shares, the cost basis of those shares is reduced and it allows for covered calls to be exercised back out of the shares. Then it is a matter of watching for the next pull back before repeating the cycle. All my BMY Stock trades are on my website fullyinformed.com. BMY has provided double-digit returns annually through this simple but effective strategy. I prefer that to the meager dividend payout.
    Teddi Knight fullyinformed.com
    Jun 9, 2014. 01:21 PM | 1 Like Like |Link to Comment
  • Facebook And Twitter: Which One Should Be In Your Portfolio? [View article]
    I guess because both of these companies are social networking entities they are often grouped together and compared but Facebook seems to hold the edge when it comes to future growth potential. The biggest concern I see with Twitter, Facebook and others like Linked In, Yelp, etc., is competition against each other and against newcomers. For that reason I think these companies are meant purely for trading and not for long-term core holdings. That said I remember when Google first came out and I could not figure out how they were going to make enough revenue to grow to what they have become today. So you never know where some of these companies are heading. Two things though always tell you whether to "stay at the party" or pack it in and that is revenue and user numbers. Earnings can be fudged but revenue is much clearer. As long as Twitter and Facebook continue to grow their revenue the stock's valuation should rise. User numbers are the same. If the number of users continues to grow then revenue should follow. Once either of those diverge or decrease it is time to exit. I prefer trading within the companies through simple option strategies like credit spreads with the focus primarily on credit put spreads. Facebook and Twitter both have exceptional option premiums making credit put spreads profitable and if placed around support levels, there is some protection of capital in use. All my trades are on line at fullyinformed.com but I prefer keeping Facebook as a speculative trade only rather than consider it for long-term stock appreciation possibilities.
    Teddi Knight
    May 17, 2014. 10:43 AM | 4 Likes Like |Link to Comment
  • How Will Apple's Stock Split Impact Its Shareholders? [View article]
    Excellent article. Nicely detailed and good supportive details. I would agree that the stock split will probably enhance the price of the stock especially if Apple can continue to increase revenues. The only problem I have is that Apple primarily is making the bulk of their revenue from the iPhone. While still holding a command lead, this is a highly competitive industry and for actual stock buying I prefer a company that has more than one leading product to rely on for exceptional growth. This is why for stock holders I believe companies like JNJ and PG offer better quality simply because their revenue stream is not focused on one or two products. Even Microsoft has a lot of products generating significant income, not just Windows. I prefer trading in the options (which you mentioned) than ever holding stock. I am interested to see how well the options perform after the stock split. Right now the option premiums have been excellent and allowed for exceptionally good returns. All my trades in Apple Stock are online in my website fullyinformed.com but I question whether the returns many investors have achieved can be dupllicated through options after the split. Part of the volatility of the stock has been its trading price. The stock can easily move five to ten dollars in a day and often more than that between the high and low from 9:30 to 4:00. This makes options simply terrific in this type of stock. I would not expect the same level of volatility. It will be an interesting stock to watch going forward but I think I will be sticking with simple Apple Stock option strategies to grow my portfolio rather than own actual stock. Thanks for the great article. Well worth the read.
    Teddi Knight fullyinformed.com
    Apr 26, 2014. 11:43 AM | 2 Likes Like |Link to Comment
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