Sold some MRH to finance purchase. AIG trades at about 10 times earnings and a 30% discount to book value. Trade was done in IRA #1.
"Full-Year 2013 Highlights
For full-year 2013, AIG’s operating EPS stood at $4.56, comfortably exceeding both the Zacks Consensus Estimate of $4.38 and the 2012 equivalent of $3.93. Operating net income inched up 1.9% year over year to $6.76 billion. On a GAAP basis, net income soared to a whopping $9.09 billion or $6.13 per share in 2013 from $3.44 billion or $2.04 per share in 2012."
Earned over 12% on my money in one week-lucky.
Correction--AIG trades at a 30% discount to book value but it's still an excellent buy. I have more cash available Monday for investment so I may buy more Monday if the current selloff continues. AIG is trading near 48 now.
Correction-AIG only trades at a 30% discount to book value. I was using the wrong denominator for my calculation. If AIG goes up 40% it will be trading at book.
Oops, you're right I was using the wrong denominator.
AIG is trading at a 30% discount to book value.
Beach, Thanks for the SHLD suggestion, the put options I sold are looking good.
I plan to hold on to the AIG shares and sell call options against them.
Book value is currently about 69 and our stock price is 48 which gives us a discount to book of over 40%.
Bought more today at 48.59 which raises my stake in my IRA to about 4% of the account.
I sold some MRH today at 28.44/share to finance the purchase.
MRH trades at a 7% discount to book value compared to a 40% discount for AIG. If AIG drops to 47 I'll buy more.
Trade was done in IRA #1.
Sold 95% of those shares today at 28.44/share and bought AIG at 48.59/share in the same account.
AIG currently trades at a 40% discount to its book value and about 10 times earnings. The stock was down $1 today on a sell on the news earning's report. I'll add more if it drops to 47.
Looks like HC will finally get his share buyback dream come true-------In an SEC filing, Graham Holdings said it was in discussions with Berkshire Hathaway regarding a transaction in which Berkshire would use its entire $1.1 billion Graham Holdings stake (roughly 28% of the company) to acquire an "as yet unformed subsidiary" that would house an undisclosed business and other assets. Those assets could include Berkshire shares that Graham Holdings owns.
After seeing today's earnings report I'll go with a dividend of 2.32/share.
Currently the stock is trading down 3 to under 47 and I sold more put options against it because they now yield considerably more than the dividend.
Next week I may have more cash available in my IRA if IBM stays above 180. LO will also be buying back shares again next week so the drop is helpful in that respect.
Thank you Mr. Market.
Grandma is wrong again. If the price stays above 12.5 into option expiration in June, at least she'll be able to offset this long term loss using short term gains earned this year.
Current price of option--1.3/share with the stock trading at 12.75 +.64/share.
I own a ton of LO so I can't really add any more and still sleep at night.
I'm personally willing to risk the upcoming menthol decision but until the verdict is determined I'm not buying any more shares.
Very small position-- paid 47.95/share, for tracking reasons only plus the 5.5% dividend yield.
Will add more #$%$ becomes available if it drops under 45.
Also sold put options against another stock using proceeds from profits taken on GMCR options in the same account.
Will continue to hold PM and LO and add to my other tobacco holdings if prices dictate.