Comment by phil

View Single Comment

phil
December 7th, 2015 at 10:16 am

Buy list/Rexx – Still not official but, back on 11/14, I put up this WATCH (not buy) List ahead of our DC Seminar, where we talked about each one.  

Stocks I'm considering for 2016:

• AMT – Consolidating for a breakout.  LTE growth should be great for them.  Real estate is a great moat.  



• AMRN – Heart space, good pipeline. 



• ASX – Tech with a 6.5% dividend. 



• AXP – OK, we get it, they lost COST.  



• CPN – A natural gas play and a utility play.  



• CSCO – Butterfly?



• DECK – Too cheap.



• DOC – REIT for medical properties.  6.2%.



• ETP – Nat Gas MLP, 8.4%.  



• F – Cheap again. 



• FIG – Coming off a bad year.  5% dividend.  



• GiLD – Still cheap.



• GNW – Suffered enough?



• IBM – Stock of the year.



• IMAX –  Star Wars.  China IPO.  



• INTC – 



• INO – Vaccines.



• KNDI – Fun electric car play.



• LVS – 



• OHI – Nursing homes.  6.5% REiT. 



• RDS.A – Best of the worst..



• RF – Possible takeover.  Low-risk bank,



• SVU – Cheap again and A&P competition out. 



• WMT 



Mostly we want to look closely at these stocks if they either get cheaper or form a nice bottom.  WMT turned out to be our favorite at the conference but SVU is getting very appealing, as are OHI, RF, IBM (of course), IMAX (need to do now), DECK, AXP and ASX.  

For IMAX, the Star Wars story begins in 11 days so we can play that by selling 10 2017 $35 puts for $3.50 ($3,500) and buying 20 March $37 ($3.55)/42 ($1.40) bull call spreads for $2.15 ($4,300) for net $800 on up to $10,000 worth of spreads that are starting out $3.50 in the money ($7,000).  All we need is for IMAX not to go lower on this one.  STP play as we could use something bullish there.  



GMCR/Yodi – Well they are pulling back now from $90.17 but I wouldn't pay more than $5 for the puts.  Alternatively, 2017 $90 puts are $2.70 and you can sell Jan $87.50 puts for 0.75 and net $1.95 on the $2.50 spread with the assumption that either you have a cheaper long put or, if GMCR falls fast, you can roll the short puts to a better spread.  

Big wheee on the RUT Futures (/TF), by the way – all the way below 1,170, which is now the stop.  Back to tight stops on all at 17,725, 2,077.50, 4,696 and 19,775 on /NKD.  



Dow was a good call for the open: