Posts Tagged ‘VECO’

DARK HORSE HEDGE – What I Like About You, VECO

DARK HORSE HEDGE – What I Like About You, VECO

By Scott Brown at Sabrient, and Ilene, at Phil’s Stock World

Dancing Scotsmen waving money

What I like about you, you really know how to dance
When you go up, down, jump around,
think about true romance, yeah

That’s what I like about you

What I like about you, you keep me warm at night
Never wanna’ let you go, know you make me feel alright, yeah
 

Veeco Instruments Inc. (Veeco) (VECO) designs, manufactures, markets and services enabling solutions for customers in the high brightness light emitting diode (HB LED), solar, data storage, scientific research, semiconductor and industrial markets. In its LED and Solar segment, Veeco designs and manufactures metal organic chemical vapor deposition systems that are used to make HB LEDs or solar cells made of III-V compound semiconductors. In its Data Storage segment, Veeco designs and manufactures equipment used in the production of thin film magnetic heads that read and write data on hard disk drives. In its Metrology segment, the Company designs and manufactures atomic force microscopes, scanning probe microscopes, stylus profilers and fast three-dimensional (3D) optical microscopes… (Sabrient’s Ratings Report)

Sabrient rates VECO a Strong Buy for its superior value and growth profiles, which indicates a stock that should outperform the market.  

Read Sabrient’s full report here.

We liked a lot about VECO when we added it to the Dark Horse Hedge virtual portfolio at $31.93 on August 25, 2010. Using Phil Davis’s Buy/Write strategy, we bought half a position in the stock and sold October $32 calls and puts against it (1 put and 1 call per 100 shares of stock).  

With option expirations on Friday, October 15, it’s time to decide if we "never wanna let you go," for now, or if we want to close the trade and take profits.  

VECO closed at $36.51 yesteday. We could keep the $6.20 option premium and let VECO get called away for $32. But why do that when there is so much to like about…
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DARK HORSE HEDGE – Any way the wind blows, doesn’t really matter

Housing-keeping note: Thanks to WordPress’s destruction of Phil’s Favorites site (and replacement with an invite to sign up for its service!), I’ve been relocating my blog to TypePad.  Benefits: it looks better, is very user friendly and offers an easy way to search archives for any topic. One unique feature is that while exploring the internet, I can simply click on a button to post an excerpt of an interesting article with a link to the full article. That ability allows me to post links to articles that are worth reading when I do not have reprinting permission, such as articles from major news sources. 

The new Favorites site is here.  I’ve also created a website for Dark Horse Hedge, here.  - Ilene 

DARK HORSE HEDGE – Any Way the Wind Blows, Doesn’t Really Matter

By Scott Brown at Sabrient & Ilene at Phil’s Stock World

Is this the real life? 
Is this just fantasy? 
Caught in a landslide 
No escape from reality 
Open your eyes 
Look up to the skies and see 
I’m just a poor boy (Poor boy) 
I need no sympathy 
Because I’m easy come, easy go 
Little high, little low 
Any way the wind blows 
Doesn’t really matter to me, to me

Queen, Bohemian Rhapsody

 *****

Ilene and I started the Dark Horse Hedge on July 1, 2010 with the goal of helping self-directed investors weather any storm, no matter which way the wind was blowing.  Today completes the second month of publishing the Dark Horse Hedge and we thought it would be a good time to review.  

 

September 1976:  British rock group Queen at Les Ambassadeurs, where they were presented with silver, gold and platinum discs for sales in excess of one million of their hit single 'Bohemian Rhapsody'. The band are, from left to right, John Deacon, Freddie Mercury (Frederick Bulsara, 1946 - 1991), Roger Taylor and Brian May.  (Photo by Keystone/Getty Images)

The
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Dark Horse Hedge – Don’t let the sun (profits) go down

DARK HORSE HEDGE – Don’t let the sun (profits) go down

By Scott at Sabrient and Ilene at Phil’s Stock World

3cayocostasunset0400 - Sunset on the Gulf of Mexico - Cayo Costa State Park, Florida.

Recovery in danger as firms, homebuyers cut back – AP 

Groundhog with shadow

Not exactly the kind of headline that anyone wants to wake up to, but if you simply change a few words, it is as if we have slipped into the movie Groundhog Day. Each day’s gloomy headline is much like the day before’s, with a few words changed. Fortunately, DHH began with the premise that how news is going to be headlined and short-term market moves have proven over time to be nearly impossible to predict with any consistency. 

So we seek to have long positions that are the best of the best, leveraged against short positions that are the worst of the worst.  We combine the ability to reduce beta, or market correlation, with two alpha (return) improving measures.  Our first measure is to tilt the balance of the Long/Short portfolio based on market trend, and the second is to use options for yield enhancement.

We are currently in the middle of a 5th consecutive down day for the S&P 500 and we believe in taking profits off the table when the risk/reward premise changes.  DHH recommended a short position in SunTrust Banks, Inc. on July 13, 2010 at $25.54 and following the companies $750 Million tender offer of debt on Monday, we believe it is time to cover our STI short position at these prices.  We have earned a 11.9% profit in just over a month, and so it is time to let the sun go down alone if its trend continues, but not to let our profits go down. 

BUY TO COVER SunTrust Bank, Inc. (STI) at the market, Wednesday, August 25, 2010

 

Chart from Finviz.

So what kind of positions do we want to add in this market?  One that I like and am recommending is VEECO Instruments Inc. (VECO) using Phil Davis’s buy/write strategy.  VECO has a strong buy rating from Sabrient, with excellent scores for growth and value.

Excerpt from Sabrient’s Ratings Report for VECO:  

Veeco Instruments Inc., together with its subsidiaries, designs, manufactures, and markets solutions for customers in the high brightness light emitting diode (HB LED), solar, data storage, scientific research, semiconductor, and industrial


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Ratio Put Spreader Tunes in to DISH Network Corp. Options

Today’s tickers: DISH, LBTYA, HGG, VECO, WBMD, VLO & TFSL

DISH – DISH Network Corp. – The implementation of a ratio put spread on the U.S. provider of direct broadcast satellite subscription television service this afternoon was perhaps put on by an investor looking to lock in recent share price gains. DISH shares, which are currently up 2.4% on the day to arrive at $20.77 by 3:40 pm ET, have rebounded nearly 17.5% since touching down to $17.75 on July 1, 2010. It looks like one trader purchased 3,000 puts at the December $20 strike for an average premium of $1.58 each, and sold 6,000 puts at the lower December $18 strike for an average premium of $0.83 a-pop. The investor responsible for the transaction receives a net credit of $0.08 per contract, and keeps the full amount at long as DISH’s shares exceed $20.00 through December expiration. The trader is perhaps utilizing the spread to protect the value of a position in the underlying shares. If this is the case, downside protection kicks in should shares reverse course to trade below $20.00 by expiration day. The decision to employ a ratio spread rather than a 1-by-1 spread or a plain-vanilla long put stance suggests this investor does not expect DISH shares to collapse ahead of expiration at the end of 2010. The firm is scheduled to report second-quarter earnings ahead of the opening bell on August 9, 2010.

LBTYA – Liberty Global, Inc. – It looks like one options strategist expects shares of the international producer of video, voice and broadband internet services to remain range-bound through October expiration. Liberty Global’s shares are currently down 0.20% to stand at $29.65 as of 3:05 pm ET. LBTYA reported an adjusted net loss of $2.42 a share for the second quarter of 2010 after the market closed on Tuesday. But, shares moved very little following earnings. Perhaps the lack of fluctuation in the price of the underlying shares during earnings season bolstered the strangle seller’s premonition that LBTYA’s shares are likely to trade within a specified range for the next couple of months. The investor appears to have sold roughly 10,000 puts at the October $27.5 strike for a premium of $0.70 each in combination with the sale of about the same number of calls at the October $32.5 strike for an average premium of $0.35 apiece. The trader pockets…
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Take-Off Tuesday Already?

Wow, this market goes from zero to sixty in record time, doesn’t it? 

Our 1,113 mark (see yesterday’s post for charts) was tested and broken on the S&P yesterday (see David Fry’s chart) on a silly stick save into the close but, seeing that, it was very obvious that "they" are looking to paint some impressive moves on the charts this week so strap yourselves in – it’s going to be a wild one.

1,120 is our next big test on the S&P along with the satanic 666 on the Russell and 10,700 is the next big test for the Dow (as 10,500 seems well in hand).  Advancers led decliners 20:1 on the Nasdaq, which shows you what a total farce the market is because we had the same ratios going down so stocks are either ALL good or ALL bad on a random daily basis.  Human beings do not trade this way my friends, this market has been totally taken over by machines and the affect of your individual trading is about the same as shotting a water gun into a wave to slow it down.  

As long as you accept this fact and "go with the flow" you can be a very happy channel surfer but fight the tide at your own peril!  We stuck to hedged plays in yesterday’s Member Chat with our bearish play on FSLR in the Morning Alert and then earnings spreads on MEE and VECO along with long-term bullish plays on LYG, GS, CHK and our beloved TBT, who are finally showing signs of life.  We also keep selling GENZ calls to overly enthusiastic buyers who think someone is going to pay more than $70 for the company – even though it was at $50 before the rumors started.  Aside from the lack of logic that a buyer with a p/e of under 10 will pay a p/e of over 20 for GENZ, it just isn’t really the right credit environment for buyers to be bidding +40% for a company.  We aren’t buying puts but we’ll certainly sell Jan $70 calls for $4 as that’s just silly! 

The markets are back in "Soar and Ignore" mode this morning as bad news is now like water off a duck’s back to the market, much the same way good news was ignored just 2 weeks ago.  The moon is full this week so I’m going to start charting that against the market as we’re still trying to find some sort of early predictor of…
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Zero Hedge

The Mainstream Media Is Asking For A Government Bailout Via Censorship

Courtesy of ZeroHedge. View original post here.

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

The current controversy is different. Many people in Washington are irate over Wikileaks — not because the email were untrue but because they proved what many had long suspected . . . that Washington is a highly corrupt place full of truly despicable people. For pe...



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Phil's Favorites

Naked Capitalism Threatens Lawsuit Over Washington Post Over "Fake News" Story; Obama Starts Russia Witch Hunt

Courtesy of Mish.

Earlier today, president Obama started a witch hunt based on Russia hacking claims.

In the second Russia-related story of the day, Yves Smith, author of Naked Capitalism, considers a lawsuit against the Washington Post for an extremely sloppy article on “Fake News”, primarily about Russia that mentioned her website.

The article listed Naked Capitalism, Zero Hedge, and 200 other sites for “spreading fake news”. Included in the list were Counterpunch, the Drudge Report, Truthdig, and Truth-out.

I failed to make the grade and almost feel slighted.

Please consider Washington Post on the ‘Fake News’ Hot Seat.

The...



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ValueWalk

Aswath Damodaran Session 24: Acquisition Valuation

By VW Staff. Originally published at ValueWalk.

Acquisitions are exciting and fun to be part of but they are not great value creators and in today’s sessions, I tried to look at some of the reasons. While the mechanical reasons, using the wrong discount rate or valuing synergy & control right, are relatively easy to fix, the underlying problems of hubris, ego and over confidence are much more difficult to navigate. There are ways to succeed, though, and that is to go where the odds are best: small targets, preferably privately held or subsidiaries of public companies, with cost cutting as your primary synergy benefit. If you get a chance, take a look at a big M&A deal and see if you can break it down into its components.

]]> Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Re...



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Biotech

The Medicines Company: Insider Buying

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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Kimble Charting Solutions

Stocks & Bonds testing 20-year inflection points, says Joe Friday!

Courtesy of Chris Kimble.

Below looks at the patterns on the S&P 500 and the Yield on the 10-year note (Inverted to look like bond prices), since the late 1980’s. A rare test of support and resistance by stocks and bonds, is in play right now!

CLICK ON CHART TO ENLARGE

The S&P 500, has remained inside of rising channel (1), for the majority of the past 20-years.

The 10-year yield (Inverted) has remained inside of rising channel (2), for the major...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Uncertainty Looms as Triple-Leveraged Oil Bets Go Dark (The Wall Street Journal)

Thursday is the final day of ordinary trading for a pair of popular exchange-traded products that deliver turbo-charged returns on the price of crude oil.

China warns WTO members not to use non-market economy clause after December 11 (Reuters)

China's Commerce Ministry said on Friday it would take "necessary measures" if World Trade Organization members continue to use a non-market economy clause in its to WTO deal to assess dumping duties against it after Dec. 11.

...



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Members' Corner

How To Poop At A Party?

Courtesy of Nattering Naybob.

Once again, it's "Toilet Thursday" or "Thursday in the Loo", so we follow up on Second Hand Stink with How to Poop At A Party. 

This hilarious video demonstrates how to control the Shituation when needing to Poopulate at a gathering, in no uncertain terms. 

We hope this recurring bathroom humor theme "shits" well with our readers. So please do relax, drop the cursor below, click and enjoy.

...

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Chart School

Dow Jones Gann Angle Update

Courtesy of Read the Ticker.

When the Dow Jones moves the media must have an explanation for it. However the insiders have the nod to what is going on.

The media story so far is that since the TRUMP win, managers have been rotating their portfolios to represent TRUMP trends (lower taxes, go easy on the 'too big to fail' Wall Street banks, more jobs for Americans). Prior the election the stock market was set up for a HILLARY win, due to more of the same, status quo, FED support. But....

Using Richard Ney logic, the short answer is, stocks were always going up and the election results do not matter nor would a higher 10 yr bond or lackluster fundamentals. The real story is the marke...

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Promotions

Phil's Stock World's Las Vegas Conference!

 

Come join us for the Phil's Stock World's Conference in Las Vegas!

Date:  Sunday, Feb 12, 2017 and Monday Feb 13, 2017.            

Beginning Time:  8:00 am Sunday morning

Location: Caesar's Palace in Las Vegas

Notes

Caesar's has tentatively offered us rooms for $189 on Saturday night and $129 for Sunday night. However, we have to sign the contract ASAP. We need at least 10 people to pay me via Paypal or we may lose the best rate for the rooms. (Once we are guaranteed ten attendees, I will put up instructions to call the hotel for individual rooms.)

The more people who sign up,...



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OpTrader

Swing trading portfolio - week of December 5th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Largest US Bitcoin Exchange Is "Extremely Concerned" With IRS Crackdown Targeting Its Users

Courtesy of ZeroHedge. View original post here.

Last Thursday we reported that in a startling development seeking to breach the privacy veil of users of America's largest bitcoin exchange, the IRS filed court papers seeking a judicial order to serve a so-called “John Doe” summons on the San Francisco-based Bitcoin platform Coinbase.

The government’s request is part of a bitcoin tax-evasion probe, and se...



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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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