I'm nowhere near exotic in my trading! Wish I was
that smart. All I meant was that I purchased, in this
case some June calls with a 17.50 strike price
(roughly "at the money", or where the stock was trading at
that time). If the stock rebounds to the 19-20 area in
the near future, and I see no intrinsic reason it
shouldn't, then I should see a nice profit out of the calls.
If it doesn't, then my risk is limited to the cost
of the options, rather than the downside risk of a
larger capital commitment to purchase more stock.
Generally, the risk/reward ratio with options is not
attractive; the cliche is that 80% of them expire worthless.
But I felt comfortable enough with FM's track record
in the considerable time I've held the stock to take
on that risk.
I hope that helps.
I spoke with the company this afternoon and went
away, as usual, feeling that everything is going well
and according to plan. I asked about margin pressure
from high lettuce prices, but was told that
fortunately there are offsetting reductions in meat and
poultry prices. Raising prices is not a slam-dunk but
they are making some progress there. Further minimum
wage hikes could hurt if pricing is inelastic but
that's an uncertainty, not an given.
company is run well. Obviously some institution decided
to bail for whatever reason. I took advantage of the
weakness and added some at-the-money calls to a full stock
Good luck to you!
The price on FM has come down lately, but some of
it was a hepatitis scare here in S.D., It should not
be a serious harm to the stock price. The earnings
came out after the market closed and they are pretty
good, even before the $ infusion from the court
decision against Von's. The stock should get back into the
20's tomarrow, or at least next week. This is a good
stock and they're growing. The jerk that wrote his
message in all caps (#31) ought to read the rules of the
board (etiquette of). Ray
Release date for quarter ending March, 98 is May 5th - Tuesday, next week. I bought a few shares in May of 95 at 5-5/8. I'll be sitting on the dock waiting for my ship Tuesday morning. Actually, I suppose the 3rd qtr - summer earnings - should be the really, really big one. I'm happy already.
take a look at a stock nyse; usv; 27.50
company is a reit that owns in excess of 600 fast food /casual dining restaurants. Usv currently pays 1.48 dividend.
usv has extremely aggressive mgt. And is currently looking to acquire 200 million in properties in 1998.
usv/shell oil recently opened a gas station/convenience store/jack in the boix outlet in houston.
usv has plans to open new/convert existing stations into convenience store/fast food outlets all over the country.
usv is basically unknown tothe general investing public. This company could double is size during the next 12-18 month period.
look for usv to have more ventures with fm, bunz, yum, ckr etc.
usv is a conservative way to play fast-food,