"On CNBC's "Mad Dash" segment, Cramer pointed out analysts at Citigroup said there's risk that Union Pacific (UNP) and Norfolk Southern (NSC) could pre-announce worse-than-expected earnings results.
Why? According to Cramer, pipeline companies continue to expand their transportation of oil and natural gas, which means fewer shipments for railroad companies. That's why "the rails have been so terrible."
When I heard Cramer rail against he railroads yesterday I thought finally we have a catalyst for a bottom.
UNP was in the 95s and NSC the 87s.
Some investors may be investing the dividends they receive in their own businesses.
Some companies should be less aggressive with their share repurchase programs but what are they supposed to do when they can issue paper at 2% and buyback shares with dividend yields over 3%?
"Does PMI have a share repurchase program?"
"Yes. We announced our current $18 billion, three-year share repurchase program in August 2012. PMI spent 11.9 billion to repurchase the 135.3 million shares through September 30, 2014."
Investor FAQs---PM investor relations.
In IRA #3, I raised my position in BP by 45% to 4.8% of the assets in the account. Paid $39.76/share and it has a .60 quarterly dividend or a yield of 1.5%/quarter.
This account is now 24% cash and 16.5% BRK.
Added a 4.3% position of STX to IRA #4 today and also sold call options against it that expire after the stock goes xd in early August. I paid $48.51/share. Current dividend and yield-.54--1.1%/quarter.
This account is now down to just 14% cash. I'm looking for dividends and call options for my IRA.
This account is already 25% BRK or I would have bought more at 136 something.
Cash used for purchase came from a put option that expired last Friday. More cash available when options expire on July 17th.
Stock trading at another new yearly low.
Bought more TY for my Roth IRA, paid 21.22 for a 4.37% position.
I love closed end funds trading at deep discounts to NAV with low fees and high returns.
Initiated a new position in two IRAs today-TRI CONTL CORP--TY, IRA #4 took a 2.18% position at 21.33/share and IRA #3 took a .7% position at 21.38/share.
It trades at a 15% discount to NAV and has management fees under .5% per year.
In the same account I tripled my positions in both STX and INTC and sold call options against them. Both these companies go XD in early August. STX traded under 50 today a new yearly low. I paid 50.56 for STX and 31.23 for INTC.
This account is now out of cash until July 17 when one of my stocks should be called away.
Current price-81.65 + .86...............
My year end price is 86.68 plus you'll be paid two more dividends of 1.02/share. Business in Europe should continue to improve.
In other news- can't buy LO and sell it high any more but you can own a little RAI/LO and sell call options against your position for added income.
In IRA #2 I raised my position by about fivefold to just under 2% of the assets in this account but I also sold call options. Also sold out of the $$$ put options against it in IRA #3.
It's currently trading near KO's original purchase price. They own 16% of the outstanding shares and in my opinion will buy them out in the very near future.
The options expire in Jan of 2017 which means you only earn 2.7% in 1 year and 7 months or about 1.9% annualized.
Discover Bk 0.75% CD 01/03/2017
Low interest rates are crushing option premiums. If you could earn 4% on two year CDs I'm sure the returns for selling puts against BRK would be much higher. If we live another 10 years perhaps we'll see interest rates go up a few 100 basis points.
Crapola. It was too good to be true.
When the price reaches 18.33 and trades on or above there for a month my shares can be forced to convert. In essence, my maximum return is 6% per year unless the stock gets a buyout offer or goes up dramatically.
Maybe I'll get lucky.
How is it that they could force conversion? The equity is non callable.
"A preferred stock or bond that cannot be redeemed whenever desired by the issuer."
KEYCORP NEW PFD 7.75% Convertible. KEY is currently priced in the 15s and the conversion strike price is in the 18s. Current yield is just under 6%.
All buys were done in IRA #1. I increased COP and WMT by about 200% and sold call options against them and raised KEY to about 2.45% or about 50%.
IRA #1 is now down to about 29% cash which is used to sell cash secured put options.