All things STOCKS

#15,176
#15,176
Thunder Good-Oil said:
No. A watch list with low(er) P/Es. But I do have shares of OXY, C, NUE, XOM, GE, CSX, FDX, CAT, GEHC, and RTX. FDX is my largest position in that group. I’m happy with almost all of them and might add more. Maybe throw in the towel on C. Possibly replace Citi with JPM (and add $s).

I’m looking to add more industrial/manufacturing and related companies. I think that the Inflation Reduction Act coupled with a push to not be dependent on others in the supply chain will be a significant stimulus for about a decade.
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Ok, I'm holding C also, and I'd appreciate your thoughts on them. They are the worst performer in my portfolio, I've held them for a few years. It's always difficult to admit mistakes and they just might be one I have to admit to. Thoughts....
 
#15,177
#15,177
Vol737 said:
I looked at GNRC a while back and figured I needed to wait. Just too pricey at the time. Didn’t realize they have slid so much. Needed to buy a generator last fall and came close to buying a Generac, but they were about $300 or so more than their similar counterparts. I thought Honda would be the best option, but I came really close to not recovering from that stickler shock. Honda pricing is in the stratosphere on their generators.
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Honda makes good products. Can we buy stock in them?
 
#15,178
#15,178
Jax_Vol said:
Honda makes good products. Can we buy stock in them?
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They sure do and I know I would have gotten a fantastic product, but it was just too much to justify at the time. But yes, Honda ticker symbol is HMC.

Edit: I like them so much I have three Acuras and a Honda CRV in my family.
 
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#15,179
#15,179
GoDucks349 said:
Ok, I'm holding C also, and I'd appreciate your thoughts on them. They are the worst performer in my portfolio, I've held them for a few years. It's always difficult to admit mistakes and they just might be one I have to admit to. Thoughts....
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The 4.5% dividend is about the only reason that I’ve not bailed out on C. The single digit P/E gives me hope that the shares could double. But it has been a frustrating hold. Slowly climbs up in price and then quickly falls apart. Over $80 in Jan 2020 and then lost well over half of its value within 2 months.
 
#15,180
#15,180
Vol737 said:
I looked at GNRC a while back and figured I needed to wait. Just too pricey at the time. Didn’t realize they have slid so much. Needed to buy a generator last fall and came close to buying a Generac, but they were about $300 or so more than their similar counterparts. I thought Honda would be the best option, but I came really close to not recovering from that stickler shock. Honda pricing is in the stratosphere on their generators.
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Maybe we’re more likely to having hybrid vehicles that can power up a house and do everything that a generator can do. TSLA is practically there, but they need the house to charge up the batteries. And a hybrid defeats one of the main reasons that I’d want an EV. Less mechanical **** that breaks.
 
#15,181
#15,181
Thunder Good-Oil said:
The 4.5% dividend is about the only reason that I’ve not bailed out on C. The single digit P/E gives me hope that the shares could double. But it has been a frustrating hold. Slowly climbs up in price and then quickly falls apart. Over $80 in Jan 2020 and then lost well over half of its value within 2 months.
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Thanks, I'm down about 35% in C, bought in 2019. I do typically trim stocks when the dividend gets over 4%, it's a risk factor for me. I do think I'm going to continue to hold C at this time. However, if I see something I like better it will likely be a source of funds for a new purchase.
 
#15,182
#15,182
GoDucks349 said:
Thanks, I'm down about 35% in C, bought in 2019. I do typically trim stocks when the dividend gets over 4%, it's a risk factor for me. I do think I'm going to continue to hold C at this time. However, if I see something I like better it will likely be a source of funds for a new purchase.
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The dividend is $2.12/year with earnings of $6.31. Almost covering the dividend 3x with earnings is a positive.

BTW, C goes ex-dividend tomorrow so keep today to get the $0.53 this quarter. Shares will fall by that amount tomorrow before other factors.

It’s a boring holding, but has a good chance at outperforming being long debt.

The debt ratio is an important measure. But being a bank, the regulators wouldn’t allow them to over leverage.
 
#15,185
#15,185
Picked up some ITW and ELV as long-term buys over the past few trading days...so look for the 10-20% dip on those in the coming weeks.
 
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#15,186
#15,186
mrorange211 said:
I'm seeing the red as a buying opportunity the last two days.
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Yes. But it’s been crazy. How many consecutive sessions was the DJIA positive? 13? One more day and it would have broken a record going back 150 years or so?

I sold UPS puts today. They might struggle with earnings as it sounded like the union struck a favorable deal. But if I get assigned there’s a good chance that I’ll hold for several years. I’ll take a quick flip if shares jump ahead in the following couple of weeks. I’m not as concerned about Amazon going hard into delivery as I was a year or two ago.
 
#15,189
#15,189
tbh said:
Picked up some ITW and ELV as long-term buys over the past few trading days...so look for the 10-20% dip on those in the coming weeks.
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Owned ITW for a long time. One of the best performers I’ve owned.
 
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#15,190
#15,190
Vol737 said:
Owned ITW for a long time. One of the best performers I’ve owned.
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One thing that struck me about them is how diversified they are in terms of the various markets they serve. I'm most familiar with their construction and food equipment products, and they seem like a well-run company from what I can tell.
 
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#15,194
#15,194
@1RBFjr said:
It’s clear to me you like options. Do you hold on to anything for very long?

I’ve thought about options, but never done it. I rarely sell, maybe a couple of times a year. I’ve held some investments around twenty years.
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I have all sorts of long term holds.

With uninvested cash I am selling puts instead of setting limit orders to buy shares. If the stock price falls then I own shares with eigger strategy. If stock prices go up then I don’t own shares, but by selling puts there is cash added to the account. I’ve mainly been selling cash reserved puts. Stocks have been running up so I’m not selling covered calls yet.

Most options expire worthless. So IMO writing the contracts is a far better strategy than buying the options. Sometimes I’ll buy options to close out the short position.
 
#15,195
#15,195
@1RBFjr said:
It’s clear to me you like options. Do you hold on to anything for very long?
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I have one account with LMT, HD, IBM, MCD, KR, MLM, PFE, PEP, BP, KD, and VTRS. The last two were spun out of IBM and PFE and aren’t large holdings. I don’t have a compelling reason to sell any of the first 9. They all yield over 2% except for Martin Materials. I think that IBM is the only one that doesn’t have the earnings to cover their dividend (4.6%), but I anticipate that they will be growing earnings as they work through things like acquisition and reorganization costs and they are well positioned going forward with the tech, cloud, server, consulting spending by their Fortune 500 customer base. IBM was also at a huge disadvantage to the newer mega tech companies that didn’t have to fund defined benefit retirement plans (traditional pensions). They used defined contribution plans which helped them overtake IBM in the 1980s, 1990s, and 2000s. IBM no longer has the headwind to hamper growth

Home Depot is a great retailer that is somewhat insulated from Amazon (unless Amazon dot com starts selling lots of lumber, mulch, concrete mix, etc).

I wish that McDonald’s would offer vegetarian options on their menu, but they stick with what the people demand. I keep it because they might have the best commercial real estate portfolio of any company or REIT.

MLM will benefit tremendously over at least the next 10 years with the Inflation Reduction Act (IRA).

MCD, KR, PFE, PEP, and BP all benefit from the strong US consumer.

So I hold equities for the LT as well as trade options with a calculated approach.
 
#15,196
#15,196
Thunder Good-Oil said:
I have one account with LMT, HD, IBM, MCD, KR, MLM, PFE, PEP, BP, KD, and VTRS. The last two were spun out of IBM and PFE and aren’t large holdings. I don’t have a compelling reason to sell any of the first 9. They all yield over 2% except for Martin Materials. I think that IBM is the only one that doesn’t have the earnings to cover their dividend (4.6%), but I anticipate that they will be growing earnings as they work through things like acquisition and reorganization costs and they are well positioned going forward with the tech, cloud, server, consulting spending by their Fortune 500 customer base. IBM was also at a huge disadvantage to the newer mega tech companies that didn’t have to fund defined benefit retirement plans (traditional pensions). They used defined contribution plans which helped them overtake IBM in the 1980s, 1990s, and 2000s. IBM no longer has the headwind to hamper growth

Home Depot is a great retailer that is somewhat insulated from Amazon (unless Amazon dot com starts selling lots of lumber, mulch, concrete mix, etc).

I wish that McDonald’s would offer vegetarian options on their menu, but they stick with what the people demand. I keep it because they might have the best commercial real estate portfolio of any company or REIT.

MLM will benefit tremendously over at least the next 10 years with the Inflation Reduction Act (IRA).

MCD, KR, PFE, PEP, and BP all benefit from the strong US consumer.

So I hold equities for the LT as well as trade options with a calculated approach.
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I really appreciate you taking the time to better explain your philosophy in the above posts.

I need to find some good reading material to help me better understand your put strategy. I have a basic idea from your post. I do try to stay on top of my portfolio (and also have a professional assisting as well), but I don’t do it as nearly as much as you do. My general philosophy is to accumulate and hold. I don’t sell on bad news, and I have bought on bad news. For about two years, every time bad news came out about AAPL, a guy in my office would ask me if I was going to sell. I always told him no, and he quit asking me the same question years ago. Considering I’ve held it for at least a dozen years, I’m doing all right. I’ve had other multibaggers, but AAPL has been the best.

Thanks again for your posts.
 
#15,197
#15,197
@1RBFjr said:
I really appreciate you taking the time to better explain your philosophy in the above posts.

I need to find some good reading material to help me better understand your put strategy. I have a basic idea from your post. I do try to stay on top of my portfolio (and also have a professional assisting as well), but I don’t do it as nearly as much as you do. My general philosophy is to accumulate and hold. I don’t sell on bad news, and I have bought on bad news. For about two years, every time bad news came out about AAPL, a guy in my office would ask me if I was going to sell. I always told him no, and he quit asking me the same question years ago. Considering I’ve held it for at least a dozen years, I’m doing all right. I’ve had other multibaggers, but AAPL has been the best.

Thanks again for your posts.
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One thing that I wish I was practicing earlier is to hold the winners. Maybe sell up to a quarter of the shares, but the stock of good companies don’t stop going up. It’s kind of a comfort thing to convert a winner to cash - but that is a bad practice.

Also, bottoms are formed on time rather than price. When a good stock pulls back hard it can be hard to resist buying shares. But there is so much selling pressure from those that are underwater that sell on rallies just to get even, it usually takes FOREVER to push to new highs.

Of course, it is a different world with all of the programmed trading. The big cap names seem to bounce back more predictably than the smaller equities. But then the meme stocks can disrupt all of that.

I’m slowly migrating to bigger, better companies. They also get support from the big funds that are required to own them.

Options can be tricky. The basics are that most contracts expire worthless. Buying puts and selling calls are bets that shares don’t go up in value. Selling puts and buying calls are the opposite - stock prices are expected to rise. A large implied volatility creates s bigger premium.

Don’t ever sell calls unless they are covered calls. You need to own the shares. Selling naked calls exposes the investor to unlimited losses if the stock goes up substantially in value.

To sell puts it’s best, and brokers might require, to have the cash available to buy the underlying shares if the stock price falls.

Since option contracts are written in round lots of 100 shares, expensive stocks require a lot of cash in the account when selling a cash secured put option. If somebody writes a put option with a share strike price of $500, then $50,000 needs to be available to buy the shares if the put option is assigned. But there are put options that can be sold on lower priced stocks as well. LABU is around $5. So it would only require $500 of cash to be in an account to sell each cash reserved put option contract on that ETF.
 
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