Dr Fred

Dr Fred
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  • Gilead: Detailed Insight And Interpretation Behind The Headlines: Should You Be Scared?  [View article]
    Some of the comments here are knowledgeable and thoughtful, but too many just reflect opinions (stock holdings). If an article is pro-GILD and, you don't like the stock, then the author is just a "pump and dump". If an article is anti-GILD and you like the stock, then the author is "selling short". Such comments are worthless and tiring!
    Jan 30, 2016. 01:33 PM | 4 Likes Like |Link to Comment
  • Verizon: Little Dividend Growth Makes It An Overvalued Stock  [View article]
    @LAKEY Glad to hear you liked my suggestion. You do not need margin approval to sell covered calls or cash secured puts in your IRA, but you will need a step-up in your trading level from your broker. It's generally easy to get. Most firms won't allow more complex options like naked calls, strangles, collars, spreads, etc. in retirement plans.
    Jan 25, 2016. 11:02 AM | Likes Like |Link to Comment
  • Verizon: Little Dividend Growth Makes It An Overvalued Stock  [View article]
    @lakey Here's a different way to do it. If you buy 200 shares @ 47.13 (current price), if the shares go down $0.10 even, you have lost 20 bucks +commission. Why not sell a Call option on the 200 shares. The Feb 26th 48 call (about a month) gets $0.50 premium. That's about $90 bucks including commission. You won't lose money unless VZ goes below 46.65 and if it stay below 48 you keep the stock and the $90 dollars. If it goes above 48, you lose the stock but keep the $90 + $170 profit (48-47.15=.85 x 200=$170) total to $260. Most brokers will let you write covered calls and cash secured puts in an IRA
    Jan 23, 2016. 12:13 PM | 2 Likes Like |Link to Comment
  • My 2016 Portfolio Business Plan  [View article]
    WOW! Your plan is logical, thorough, and somewhat overwhelming. I wish that I could make myself follow it. I do a lot of it, but not enough. I have FastGraphs and attempt to diversify, but not as rigidly as you manage. Like you, I do my own investing and have attempted to involve my wife (with mixed results) and if I ever showed her your "Legacy"section, I would either be shot or divorced. Thanks for the article.
    Jan 16, 2016. 02:27 PM | 1 Like Like |Link to Comment
  • 5 Large Cap Dividend-Focused Companies Worthy Of Owning For Decades  [View article]
    @ Uncle Pie --Your sarcasm is well received by me as a physician (pediatric oncologist) with regards to tobacco. I have always been puzzled that people of decent character somehow manage to rationalize investing in tobacco stocks.
    Regarding your comments on junk food, I disagree. There is no creditable evidence that junk food causes cancer. Sure it can cause obesity if you eat enough of it, but so can lots of so-called wholesome foods. CMG has made "natural" and local foods their mantra. How's that working our? Haven't heard of problems at MCD.
    Still I like your thoughts on smoking and I own RHHBY
    Jan 14, 2016. 05:00 PM | Likes Like |Link to Comment
  • Avoiding Early Exercise Of Covered Calls  [View article]
    A lot of good strategies mentioned here. I sell covered calls and naked puts. No rollovers and avoid Calls that expire near expiration dates. If the call goes in the money, I let it be assigned and then sell puts to get the underlying back. If the puts go below my break even price, I generally get out. Since I sell puts only on stocks I would like to own, I sometimes bend that rule. In checking my records, I would be better off if I always got out of the puts as soon as they drop below my break even. Hoping that a falling stock won't continue to fall goes against the physics law of momentum and like everyone says "hope" is not a strategy.
    Dec 11, 2015. 12:02 PM | 2 Likes Like |Link to Comment
  • Apple: The Music Will Stop Eventually  [View article]
    I thought of making a comment, but no one will ever read this deep into the
    Oh well, hurray for Apple!
    Oct 30, 2015. 08:27 PM | 2 Likes Like |Link to Comment
  • Why I Choose To Reinvest My Dividends  [View article]
    My guess would be that taking dividends in cash and as soon as you have enough cash buy one of your stocks that is closest to its ex-div date, would be financially best. A lot depends on the amt of the div, and the time to collect the dividends.
    Then too there are the transaction costs.
    Too much work for me! Just do the DRIPs
    Oct 20, 2015. 12:14 PM | Likes Like |Link to Comment
  • Kinder Morgan: Debt And Distributions  [View article]
    @Senior Sue-- Oil prices are falling (some predictions as low as $20), some companies are canceling their pipeline plans, and KMI stock has taken a bath.
    Guaranteed prices aren't worth much when your customer goes out of business.
    Sue, the sky is falling!
    @Go-4-it-- I'm with you.
    Sep 12, 2015. 11:23 AM | 2 Likes Like |Link to Comment
  • The All-Value Team: 35 Dividend Stocks With Yields Higher Than Their 5-Year Averages (Part 3)  [View article]
    I enjoy your articles, but I have a problem with PG. There is a lot to like about the company with its popular products, good name, and worldwide distribution. The problem is that it doesn't make money (in the stock market). I have owned it for 3.5 years dripping dividends and I am down 11%. Any other company that performs like that would have been kicked out of my portfolio way back. I keep hoping that the rising dividend will eventually overcome the drop in stock price. It sure hasn't happened yet.
    Aug 29, 2015. 12:43 PM | 4 Likes Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? - Part 2  [View article]
    @Izzkube, Timmie, Mike, and Chowder
    My math doesn't compute because I bought my shares at different times during that period.
    A bit like Mike I hung onto 200 shares of KMI so I would feel a bit better if the stock rebounded.
    I wasn't quite forthright about abandoning MLP pipelines. I do own some EPD, but no new money in the industry for me. The way the market is going today, there should be some pretty good places to put my KMI money, if I can get up the nerve to push the button.
    Aug 20, 2015. 10:46 AM | Likes Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? - Part 2  [View article]
    I know as a DGI I shouldn't be concerned with stock price, but I have dripped my divis and after 4 yrs, I now have red ink at the end of my brokerage report. Sure I have more shares but they are worth less. I dumped them 2 wks ago.

    KMI, etc is supposed to have guaranteed contracts for umpteen yrs, but contracts can be renegotiated especially with a company about to go belly-up. Then where does this big dividend promised by Kinder come from? It doesn't make sense to think that with oil prices going ever lower, pipelines won't feel the pain too.

    For me it's goodbye to the pipeline industry.
    Aug 19, 2015. 08:03 PM | 2 Likes Like |Link to Comment
  • A Non-Callable 6.3% Yield From Wells Fargo  [View article]
    My rules for Preferreds:
    1.Quality company
    2. Cumulative dividends
    3.Priced below par (usually $25)
    4. Long call date (especially if you violate #3)*
    5. Be content with your yield at purchase- (it will surely calculate less as interest rates increase)

    * As mentioned in other posts, there are hidden caveats that allow banks to call many preferreds for "unusual circumstances". These never seem to occur unless the preferred coupon is above what the company can refinance for.
    P.S. I've been burned in the past.
    Aug 2, 2015. 11:10 AM | 1 Like Like |Link to Comment
  • McDonald's Turnaround Plan Is A Dud  [View article]
    I've been an MCD investor for >15 yrs. I'm sick and tired of these self appointed gourmets complaining about food quality, etc. Yesterday at the height of lunch hour (1 PM), we stopped at a Chick-fil-a. The place was loaded but did not feel crowded. Here is why: 1. The folks taking orders were polite and knowledgeable. 2. There wasn't a crowd hanging around waiting for their name to be called for their order. We sat at a table and the food was brought to us. 3. There were two older ladies circulating through the eating area picking up used items and cleaning the tables before and after you ate. 4. Hand wipes were put on the table as was a packaged mint. 5.Everyone was polite.
    And Oh yes, I almost forgot, the food was neatly packaged and delicious. Lunch cost us about a buck or so more but well worth it.
    Contrast that with your recent MCD experience. I'll hang with MCD as long as the dividend keeps growing but that will be it.
    May 15, 2015. 09:42 AM | 6 Likes Like |Link to Comment
  • McDonald's Q1: How Much Is Its Turnaround Costing?  [View article]
    This article is rubbish! It is nothing but undocumented opinion about the quality of MCD's food and loaded with bias (e.g. so-called "turnaround"). Read the profile of the lofty sounding "Corporate Accountability Intl" author(s) and you can get a pretty good idea what type of people wrote this.
    As for SA, you should be ashamed to have published it.
    Apr 22, 2015. 04:20 PM | 2 Likes Like |Link to Comment