S and P 500 14.56%
Buy List 10.24%
Covered Call List is 8.43%
No October Options bought either.
Sunday, September 30, 2012
Tuesday, September 4, 2012
August +1 Final
I realized this morning that I did not update the buy list through August. So I will do it now.
S&P 500 11.72%
Buy List 9.63%
Option List 8.62%
Do recall that the option list has rarely had more than 50% invested. Right now we are 25% invested.
S&P 500 11.72%
Buy List 9.63%
Option List 8.62%
Do recall that the option list has rarely had more than 50% invested. Right now we are 25% invested.
Saturday, September 1, 2012
Public pension funds stung by Facebook's falling stock
Really????
http://www.latimes.com/business/la-fi-0901-facebook-pensions-20120901,0,444913.story
This article is about public pension funds buying Facebook at the IPO and......(well you know the story..)
Where were the risk managers?
The California Public Employees' Retirement System, the country's largest public pension, refused to reveal how many shares it bought in the IPO. CalPERS had 557,140 Facebook shares on May 23 and more than doubled its stake to 1.3 million shares as of this week, according to a spokeswoman.
The California State Teachers' Retirement System bought about 500,000 shares in the IPO — worth about $19 million — and sold them when the price briefly popped on the first day. CalSTRS made about $250,000 on the sale, a spokesman said.
CalSTRS has since loaded up on 1.2 million Facebook shares, a stake that has cost the pension fund about $17 million in paper losses, a spokesman said.
"As a patient, long-term investor with a 30-year investment horizon we believe that over time, the stock and the company should perform well," CalSTRS spokesman Michael Sicilia said in an email.
Not only are government agencies criminals in their pension obligations, They are day-trading what they have left.
If you read the comment by CalSTRS spokesman...."with a 30 year investment horizon..." and then the paragraph that states "...and sold them when the price briefly popped on the first day. CalSTRS made about $250,000 on the sale, a spokesman said." I would like to know if they were the same spokesman?
In the paragraph regarding the stake held by CalPERS. It sounds like they are trying to dollar cost average their way out of a loss. That only works if the stock drops and then rises. If the stock drops and then keeps dropping then you just plain lose.
http://www.latimes.com/business/la-fi-0901-facebook-pensions-20120901,0,444913.story
This article is about public pension funds buying Facebook at the IPO and......(well you know the story..)
Where were the risk managers?
The California Public Employees' Retirement System, the country's largest public pension, refused to reveal how many shares it bought in the IPO. CalPERS had 557,140 Facebook shares on May 23 and more than doubled its stake to 1.3 million shares as of this week, according to a spokeswoman.
The California State Teachers' Retirement System bought about 500,000 shares in the IPO — worth about $19 million — and sold them when the price briefly popped on the first day. CalSTRS made about $250,000 on the sale, a spokesman said.
CalSTRS has since loaded up on 1.2 million Facebook shares, a stake that has cost the pension fund about $17 million in paper losses, a spokesman said.
"As a patient, long-term investor with a 30-year investment horizon we believe that over time, the stock and the company should perform well," CalSTRS spokesman Michael Sicilia said in an email.
Not only are government agencies criminals in their pension obligations, They are day-trading what they have left.
If you read the comment by CalSTRS spokesman...."with a 30 year investment horizon..." and then the paragraph that states "...and sold them when the price briefly popped on the first day. CalSTRS made about $250,000 on the sale, a spokesman said." I would like to know if they were the same spokesman?
In the paragraph regarding the stake held by CalPERS. It sounds like they are trying to dollar cost average their way out of a loss. That only works if the stock drops and then rises. If the stock drops and then keeps dropping then you just plain lose.
Wednesday, August 29, 2012
How to kill your own business model...
http://articles.marketwatch.com/2012-08-28/markets/33439500_1_lexmark-market-for-inkjet-printers-inkjet-products
Lexmark announces that they are exiting the printer business..
“It’s symptomatic of an industry that’s under a lot of pressure,” De Silva said. “It’s sort of the culmination of [Lexmark’s] strategy, to exit inkjet altogether. People are printing and printing less, and not just in the consumer space.”
Let us take a look at this...Without any scientific study except for my family I will tell you why people print less. Because ink cartridges are such a rip off. My children would print all day long...Music and pictures.
Printing is fun. Reading from pages is easier than reading from a computer. But our printer is only hooked up to one computer and only necessary work can be printed. It has long been noted that printer companies practically give away the printers to sell the ink cartridges and now people hate paying $30.00 for a $5.00 ink cartridge.
It reminds me a merry-go-round at the mall near my home. My children loved it, but a ride was $2.00 for about 2 minutes. We are talking about $60.00/hour for fun and that is not cheap. Usually the merry-go-round was mostly empty. They would get 1 ride only and then we stopped going near the merry-go-round because it was so expensive. Now if they lowered the price of the ride to $.50 cents, I would let the kids ride it 6 times and so would all the other parents who had some shopping to do. The ride would be filled and I would happily let my children ride the merry-go-round until they were dizzy.
It is the old reverse capitalism model. If business is slow, raise prices to make up for lost profits...
Just as I would let my children wall paper their rooms if ink did not cost so much.
Lexmark announces that they are exiting the printer business..
“It’s symptomatic of an industry that’s under a lot of pressure,” De Silva said. “It’s sort of the culmination of [Lexmark’s] strategy, to exit inkjet altogether. People are printing and printing less, and not just in the consumer space.”
Let us take a look at this...Without any scientific study except for my family I will tell you why people print less. Because ink cartridges are such a rip off. My children would print all day long...Music and pictures.
Printing is fun. Reading from pages is easier than reading from a computer. But our printer is only hooked up to one computer and only necessary work can be printed. It has long been noted that printer companies practically give away the printers to sell the ink cartridges and now people hate paying $30.00 for a $5.00 ink cartridge.
It reminds me a merry-go-round at the mall near my home. My children loved it, but a ride was $2.00 for about 2 minutes. We are talking about $60.00/hour for fun and that is not cheap. Usually the merry-go-round was mostly empty. They would get 1 ride only and then we stopped going near the merry-go-round because it was so expensive. Now if they lowered the price of the ride to $.50 cents, I would let the kids ride it 6 times and so would all the other parents who had some shopping to do. The ride would be filled and I would happily let my children ride the merry-go-round until they were dizzy.
It is the old reverse capitalism model. If business is slow, raise prices to make up for lost profits...
Just as I would let my children wall paper their rooms if ink did not cost so much.
Sunday, August 19, 2012
August/Sept Option update
S and P 500 12.77%
Buy List 11.16%
Option List 8.88%
August Options: Options Exercised on (AFL,BDX,BBBY,LUK,PG)
September, No Options sold...
We now own only 5 stocks in this account. Our cash position is $7,500,000.
and we have banked $833,000 in profits.
This August has been very strong. We may just sit on this cash until we see a correction before the election.
Buy List 11.16%
Option List 8.88%
August Options: Options Exercised on (AFL,BDX,BBBY,LUK,PG)
September, No Options sold...
We now own only 5 stocks in this account. Our cash position is $7,500,000.
and we have banked $833,000 in profits.
This August has been very strong. We may just sit on this cash until we see a correction before the election.
Friday, August 17, 2012
ETF Hell part 2
Awhile back, I wrote about my distrust of ETF's Exchange traded funds.
I pointed out UVXY as an example. At the time it was trading around $20.
It is now down to $4.97
On that point, I came across an article on ETF Deathwatch.
http://seekingalpha.com/article/804731-etf-deathwatch-august-2012-half-of-all-actively-managed-etfs-on-list
I pointed out UVXY as an example. At the time it was trading around $20.
It is now down to $4.97
On that point, I came across an article on ETF Deathwatch.
http://seekingalpha.com/article/804731-etf-deathwatch-august-2012-half-of-all-actively-managed-etfs-on-list
Thursday, August 2, 2012
Blame it on bugs....
http://news.yahoo.com/knight-seeks-financing-440-million-trading-loss-124602408--finance.html
Knight Capital Group Inc. lost $440 million in seconds yesterday after installing a new trading software.
("This issue was related to Knight's installation of trading software and resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market," Knight said. "This software has been removed from the company's systems.")
It is hard to imagine something like this not being tested and implemented on a test systems before it is rolled out.
(On July 18, Knight reported second-quarter earnings of $3.3 million, down 81 percent from a year earlier after recording a $35.4 million pretax trading loss from the Facebook initial public offering. The company has not yet filed its second-quarter report with regulators.)
I am certain someone somewhere is trying to blame Facebook on bugs too.
Knight Capital Group Inc. lost $440 million in seconds yesterday after installing a new trading software.
("This issue was related to Knight's installation of trading software and resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market," Knight said. "This software has been removed from the company's systems.")
It is hard to imagine something like this not being tested and implemented on a test systems before it is rolled out.
(On July 18, Knight reported second-quarter earnings of $3.3 million, down 81 percent from a year earlier after recording a $35.4 million pretax trading loss from the Facebook initial public offering. The company has not yet filed its second-quarter report with regulators.)
I am certain someone somewhere is trying to blame Facebook on bugs too.
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