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Wizkid

Wizkid
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  • Will Frontier Communications Go To Zero? [View article]
    Using Enterprise Value per access line pre acquisition, or for the VZ acquisition, or post acquisition is a meaningless analysis. Using a industry average for market cap per access line for a rolling 1-2 year period (for a comparable rual telephone company) might have some meaning - but even that is flawed.

    Why not use some other meaningless analysis like Enterprise Value per employee.

    Your conclusion might be right - but your anlaysis is flawed.
    May 20, 2012. 10:49 PM | 1 Like Like |Link to Comment
  • Dividend Investors: Improve Your Annual Yield [View article]
    Assuming this strategy inside an IRA is both an important and very sensitive to the ultimate rate of return.

    For non-IRA investors, selling Covered calls is a "taxee beware" strategy. Since there is always the probability the underlying stock will be called, and consequently your portfolio will continue to "mark to market". Also your dividends may move from qualified to non-qualified for tax preference. As always, ask your tax advisor for help.

    Given today's political environment of likely increases in capital gains tax and or qualified dividends, the covered call strategy in taxable accounts may actually be a good one to follow.

    As always - make sure you cover your taxes carefully :)
    Nov 30, 2011. 09:17 PM | Likes Like |Link to Comment
  • Dividend Investors: Improve Your Yield-On-Cost [View article]
    For those serious about selling naked puts I recommend the book by Dennis Eisen - "Using Options to Buy Stocks: Build Wealth with Little Risk and No Capital"

    I don't agree with the title completely (little risk and no capital) however It may convince you to take even more risk with LEAP puts.

    Good luck collecting nickels
    Nov 14, 2011. 08:30 AM | Likes Like |Link to Comment
  • Dividend Investors: Improve Your Yield-On-Cost [View article]
    A college buddy of mine repeated a quote he had heard about the strategy of selling naked puts -" It is like collecting nickels in front of a bull dozer".

    Always understand the risk and reward you are taking. Understand exactly how you would feel on days like May 6, 2010 when the Bull Dozer accelerated to 50 mph.

    Finally - understand that the put premium differs based on the yield of the dividend stock being considered. A key variable in the strategy of selling naked puts.

    Nov 11, 2011. 09:04 AM | 1 Like Like |Link to Comment
  • Dividend Investors: Improve Your Yield-On-Cost [View article]
    A college buddy of mine repeated a quote he had heard about the strategy of selling naked puts - It is like collecting nickels in front of a bull dozer. Always understand the risk and the reward ratio.

    Nov 11, 2011. 08:57 AM | 1 Like Like |Link to Comment
  • Short Interest in Management Consultants et al [View article]
    For those with limited understanding of short interest - what is your conclusion? Define Utilisation.
    May 14, 2008. 10:28 AM | Likes Like |Link to Comment
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