Comment by phil

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phil
March 11th, 2013 at 10:29 am

WPRT/Jet – I don't know if they are particularly good at making those engines.   Once FDX gets involved, you can bet that the truck makers will be happy to tool up nat gas engines for them at that volume.  WPRT works because they serve a small niche in the market but it's a new ballgame one we start talking about large-scale projects.  In any case, how can you get excited about a company trading at 6x SALES with no profits at all (-10%) when CMI, for example, trades at 1.25x sales and MAKES 10%?  So, how do we value this – purely speculative, like a biotech and, unless you have a really compelling reason that this one has THE answer and others do not – there's no point in trying to be the first guy on board.  Also, think about it, if you are FDX, with your 90,000 trucks, looking to buy $1Bn worth of engines, do you go to WPRT, who do $226M in annual sales or CMI, who do $17Bn?  Sure, it would be great if FDX handed WPRT a fat contract and trusted the Future of their fleet to a company that has to quintuple in 3 years (after taking 10 to get this big) just to fill their order – but is it likely?  

Laptop/Jfaw – Yes, as noted yesterday, I would appreciate more details.  

AGNC/Sgh – The dividend is $1.25 and you are right, why spend $1.25 to roll the short calls?  If they take the stock from you, you are in for net $26.85 so you make $1.15 plus whatever dividends you collected already and your worst case is you get back in if your puts are re-assigned at $25.  I'd just sell more 2015 $30 puts ($6) if you get called away as that's not much less than the Dividend anyway and then you don't have to worry about the stock again until Jan 2015, when you'll just see how much stock you get to own for net $24.50 average (or just keep your $7.25+ collected against whatever total margin).  

WU/Yodi – I like them more on that premise as it looks like our Government is finally realizing immigration is not such a bad thing.  

CIM/Albo – Not too strong but safer-looking now and still an 11.6% dividend.  CIM is not, for some reason, in our Income Portfolio so let's grab 5,000 for $3.13 and sell 50 2015 $3 puts and calls for .95 for a net 2.18/2.59 entry and I believe we already have those in Opesbridge at a better entry (which I think I had mentioned before) – just so you know.  

What I said/Dennis – I usually worries me when Cramer agrees with me but when he simply seems to be reading off the morning post – I assume some intern just handed him a summary and he didn't have any ideas of his own so, hopefully, it's not that he actually believes the market will go up – or that WOULD worry me!  8)  

Single payer/1020 – That will take a new Congress.  

FAS Money – Wow, up 300% from Friday – that's great!  LOL….