This is a condensed version of the Stocks Update. I sold PPS today at a loss of 2.8%. My actual loss was only 50 dollars. Goldman Sachs came out with a "neutral" rating on PPS two days ago. At the time, the stock was selling for around 35 dollars a share. Goldman's report established a price target of 32 dollars a share. The stock dropped to 34 dollars a share. Now, if Goldman thought the price should be 32 dollars/share, then why didn't it issue a "sell" rating? This strange rating system makes no sense. Some conspiracy theorists allege that Goldman Sachs' research arm knows that its brokerage arm has shorted certain stocks and will issue reports depressing a particular sector, allowing Goldman to cover its shorts. Maybe Tim Donaghy knows something about this. The SEC and DOJ might want to work together. I'm just sayin'.
In some semblance of sanity today, PFE went up on a down day for the market, which is what defensive pharma plays should do.
I added to my GE position, and also added 200 shares of Intel (INTC). Right now, my major positions are only in PFE and GE. See you in five years or more, while I collect my dividends. If I see some share price increase, that's just ice cream on the pie slice, as far as I'm concerned (I hate gravy, so I won't perpetuate that colloquilism).
Closed Position
PPS (-2.8%)
"And if an epitaph be my story, I'd have a short one ready for my own: I had a lover's quarrel with the world." -- Robert Frost
Showing posts with label PPS. Show all posts
Showing posts with label PPS. Show all posts
Wednesday, June 18, 2008
Friday, June 6, 2008
Stocks Update
For some reason, I have always tried to highlight the bad news rather than the good. I suppose it keeps me humble, but really, I do it to ensure a sufficient amount of fear. Mark Cuban, owner of the Mavs, was once asked why, after making billions, he kept going. His answer: "Fear." In that vein, I am going to provide a "stocks update" on a day when the Dow and Nasdaq went down over 3%:
Open Positions
CNB = 0
EQ = 0
EWM = (slightly negative; 150 shares)
GE = 0 (slightly negative; 179 shares)
IF = -2.1
PFE = -6.4
PPS = +0.1
WYE = -2.6
Total: losing/negative 2.75%
I am not worried. Except for IF, these are all good dividend plays (meaning, they have enough cash flow or cash to pay their dividend over the next year). Even if Pfizer (PFE) has to "repatriate" (bring some money to its U.S. operations from abroad, thereby taking a tax hit) some cash to pay its dividend, I am guessing it will still do whatever it takes to pay the dividend.
Here is what my friend, who is a tax lawyer, said about repatriation--and it sounds like good news, rather than the bad news the general media is making about the possibility of repatriation:
I took international tax in law school but I am fuzzy on the subject not having reviewed it in awhile. The only thing I remember about repatriation is that foreign earnings of controlled foreign corporations were not subject to tax until they were brought back into the U.S. When the funds were brought back to the U.S., or repatriated, a corporation could then file some sort of election to exclude up to 80 - 90 percent of the repatriated funds from income.
I would guess that PFE would try and take advantage of that generous tax break on repatriated earnings if they did not want to risk cutting their dividend to U.S. shareholders.
If the tax hit is only 10 to 20%, that isn't so terrible. My hunch is that Pfizer's board sees its stock as a "widows and orphans" stock and won't cut the dividend for another year a half at least.
(Today, I bought 100 GE @ 30 and change; also, on June 9, I bought 29 more shares of GE at around 30.)
Overall, I am down about 1400 dollars since I sold off almost all of my holdings earlier. Most of the 1400 dollar loss is because of my recent large buy of Pfizer. My prediction last month or so was correct; i.e., that the market would suffer a large hit. For the most part, I heeded my own advice; otherwise, the damage would have been more severe.
Closed Positions:
Daytrades: PFE (0.5%)
MMM (0.5%), MRK (0.1%), SCUR (15%) (held less than seven days; record in this category is a 5.2% average gain)
The information on this site is provided for discussion purposes only and does not constitute investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence.
Open Positions
CNB = 0
EQ = 0
EWM = (slightly negative; 150 shares)
GE = 0 (slightly negative; 179 shares)
IF = -2.1
PFE = -6.4
PPS = +0.1
WYE = -2.6
Total: losing/negative 2.75%
I am not worried. Except for IF, these are all good dividend plays (meaning, they have enough cash flow or cash to pay their dividend over the next year). Even if Pfizer (PFE) has to "repatriate" (bring some money to its U.S. operations from abroad, thereby taking a tax hit) some cash to pay its dividend, I am guessing it will still do whatever it takes to pay the dividend.
Here is what my friend, who is a tax lawyer, said about repatriation--and it sounds like good news, rather than the bad news the general media is making about the possibility of repatriation:
I took international tax in law school but I am fuzzy on the subject not having reviewed it in awhile. The only thing I remember about repatriation is that foreign earnings of controlled foreign corporations were not subject to tax until they were brought back into the U.S. When the funds were brought back to the U.S., or repatriated, a corporation could then file some sort of election to exclude up to 80 - 90 percent of the repatriated funds from income.
I would guess that PFE would try and take advantage of that generous tax break on repatriated earnings if they did not want to risk cutting their dividend to U.S. shareholders.
If the tax hit is only 10 to 20%, that isn't so terrible. My hunch is that Pfizer's board sees its stock as a "widows and orphans" stock and won't cut the dividend for another year a half at least.
(Today, I bought 100 GE @ 30 and change; also, on June 9, I bought 29 more shares of GE at around 30.)
Overall, I am down about 1400 dollars since I sold off almost all of my holdings earlier. Most of the 1400 dollar loss is because of my recent large buy of Pfizer. My prediction last month or so was correct; i.e., that the market would suffer a large hit. For the most part, I heeded my own advice; otherwise, the damage would have been more severe.
Closed Positions:
Daytrades: PFE (0.5%)
MMM (0.5%), MRK (0.1%), SCUR (15%) (held less than seven days; record in this category is a 5.2% average gain)
The information on this site is provided for discussion purposes only and does not constitute investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence.
Thursday, June 5, 2008
Stocks Update
Today, I sold my 100 shares of MRK @ 38.57. Including the fact that a dividend will be paid, I am slightly ahead, but only by a few dollars. That lowers my averages in my closed positions.
In other news, Goldman Sachs cut Pfizer (PFE) to "neutral," with a price target of 22, causing PFE to go to 18.50 a share. I am not worried--if anything, this means the bad news is finally out of the way (and being cut by Goldman is definitely bad news). Now, value investors will enter as disenchanted stock holders exit. Plus, I only need PFE to go to 20-ish before making a decent short-term profit on the trades. I figure PFE will hit 20-ish in about a month or two, if not sooner.
I bought and sold a large position of PFE in about an hour today: bought 2000 PFE @ 18.49 and then sold at 18.57--made 200 bucks. Now, if I had held the shares for another 30 minutes, I would have made another 200 dollars in an hour and a half (400 dollars total). That's the issue with day-trading--if you blink at the wrong time, it costs you. As long as I am in the black, however, a few hundred here and there is inconsequential. Rule #1: don't be greedy. Or, as Cramer likes to say, "Bulls make money, bears make money, pigs get slaughtered." 'Tis true.
I bought some shares of PPS today at 34.37 as well. Pure value play and potential buyout target.
I bought 500 shares of CNB at $5.00/share, a little-known bank in Alabama (or, as they like to say down South, 'Bama). This one is a value and dividend play. Just two months ago or so, CNB sold 350 million dollars' worth of its stock for 8 dollars a share. I like the shares at 5 dollars, but don't ask me what I'll do if it hits $6.50.
I also bought 15 shares of YHOO so I could attend their shareholder meeting on August 1, 2008. For purposes of this blog, however, I will not report on trades consisting of positions with a cost basis (money spent to buy a company's shares) below 1,000 dollars.
Closed Positions:
Daytrades: PFE (0.5%)
MMM (0.5%), MRK (0.1%), SCUR (15%) (held less than seven days; record in this category is a 5.2% average gain)
The information on this site is provided for discussion purposes only and does not constitute investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence.
In other news, Goldman Sachs cut Pfizer (PFE) to "neutral," with a price target of 22, causing PFE to go to 18.50 a share. I am not worried--if anything, this means the bad news is finally out of the way (and being cut by Goldman is definitely bad news). Now, value investors will enter as disenchanted stock holders exit. Plus, I only need PFE to go to 20-ish before making a decent short-term profit on the trades. I figure PFE will hit 20-ish in about a month or two, if not sooner.
I bought and sold a large position of PFE in about an hour today: bought 2000 PFE @ 18.49 and then sold at 18.57--made 200 bucks. Now, if I had held the shares for another 30 minutes, I would have made another 200 dollars in an hour and a half (400 dollars total). That's the issue with day-trading--if you blink at the wrong time, it costs you. As long as I am in the black, however, a few hundred here and there is inconsequential. Rule #1: don't be greedy. Or, as Cramer likes to say, "Bulls make money, bears make money, pigs get slaughtered." 'Tis true.
I bought some shares of PPS today at 34.37 as well. Pure value play and potential buyout target.
I bought 500 shares of CNB at $5.00/share, a little-known bank in Alabama (or, as they like to say down South, 'Bama). This one is a value and dividend play. Just two months ago or so, CNB sold 350 million dollars' worth of its stock for 8 dollars a share. I like the shares at 5 dollars, but don't ask me what I'll do if it hits $6.50.
I also bought 15 shares of YHOO so I could attend their shareholder meeting on August 1, 2008. For purposes of this blog, however, I will not report on trades consisting of positions with a cost basis (money spent to buy a company's shares) below 1,000 dollars.
Closed Positions:
Daytrades: PFE (0.5%)
MMM (0.5%), MRK (0.1%), SCUR (15%) (held less than seven days; record in this category is a 5.2% average gain)
The information on this site is provided for discussion purposes only and does not constitute investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence.
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