Sunday, July 17, 2011

January 22, 2015


Fw: Risk/Reward Vol. 51



 
Financial Times Article 122 11 - China Shapes the World.pdf (419KB)


 
THIS IS NOT INVESTMENT OR TAX ADVICE.  THIS IS A PERSONAL REFLECTION ON INVESTING.  RELY ON NOTHING STATED HEREIN. 

Don't you just love earnings season and visits from China?  Talk about yay-boo!

Citigroup disappoints, and drops from over $5 to a support line at 4.75.  I double down once it slips below 4.90.  I am still a believer that it makes $6.00 by year end and is paying a decent dividend in 2012.  Bank of America's report on Friday showed continued if slow progress.  I bought more of its preferred which continues to pay over 7% with a qualified dividend, well below its call/par price.  Associated Bank is showing progress in extricating itself from a mortgage mess, so I bid on some of its 7.6% exchange traded debt for below par.  It stayed above par/call price all day ($25) so I will try next week.

Jitters about Chinese inflation and its need to slow its economy sends shivers through the commodity markets---especially oil.  This provides me an opportunity to buy CononcoPhillips (COP) on a dip.  Speaking of oil, attached find an article in Friday's Financial Times----THE BEST FINANCIAL NEWS SOURCE IN THE WORLD.  If reading this does not embolden you to BUY BUY BUY oil and oil exploration stocks, nothing will.  As to the FT, I am serious.  I have subscribed to the WSJ continuously since receiving a discount in law school in 1974.  It is parochial, is a bearer of only bad tidings and contains no real insight for the individual  investor.  The FT provides a financial Weltanshauung.

On Monday, Apple shocks with the Jobs news, and then reports a blockbuster quarter.  Cramer has set $400 as the target which I believe is attainable (since it has over $60 per share in cash alone).  As AAPL fell to $326 at the end of the day, I bought more.

Speaking of Cramer, one of his favorites, F5Networks, a mainstay of the smart phone tsunami, barely meets expectations and drops 20% in one day.  This causes a drag on the entire smart phone component universe and provides me an opportunity to buy another Cramer favorite,  Skyworks Solutions, a smart chip producer, on a dip.  Unlike F5, Skyworks exceeded expectations and looks like a winner for the next few years.  This is my most speculative play, but I need more tech exposure.  AAPL alone is not enough.

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