Bought more in after hours trading-IBM--$175.10/sh
This purchase increased my stake in this account to 5% from 2% with more to follow in another account on Friday because I'm short the Oct 180 put options. Note- this account is up over 30% again this year due to my 50% position in Berkshire.
Buy "LO" and sell call options high is my motto and IBM is certainly "LO".
Bought more in after hours trading at $175.10/sh. I believe this is a first for me.
More to follow Friday if it's still priced under 180 due to put options I'm short.
My first purchase of a stock ever in extended hours trading--Bought IBM @ $175.10/sh.
I'm also short the Oct 180 put options so I'll likely be forced to buy more on Friday.
"The tropical Atlantic continues its spell of remarkable inactivity. There have been just two short-lived Category 1 hurricanes so far, and there is nothing in the long-range model guidance to suggest anything but the status quo. The only other year in recorded history in which no major hurricanes occurred in the Atlantic or the East Pacific is 1968."
BRK operating earnings both this quarter and this year should be records.
In other news I have another new great niece today-what stock to buy her? I like IBM, CF, V and PM.
I have no idea when we'll see another new high but I'll not sell any new call options against PM until we do. I'm currently short call options that expire in December and January that are well out of the money.
Buy "LO" and sell call options high is my motto.
The dividend will come after all Buffett's shares are gifted to the Gates Foundation. Why would he or we care if a dividend provides demand for the stock? I'd rather the stock traded below book value and we bought back shares in size. If BRK issued a dividend I'd be forced to pay more taxes so let's put that off until post Buffett or AB-after Buffett.
Rumor of selling IBM? That's silly. Rumors are there so GS and other firms can buy shares cheap. Thank you GS.
Stepping down? Obviously if that were true he'll disclose the information as soon as possible.
$191.99/share. It's expensive at over 20 times earnings but its free cash flow number have grown from 2.5/sh to 7.5/sh in just 5 years-what's that worth?
I plan to gift some of these shares to my nieces and nephews.
I sold some call options against LO, INTC and MSFT today in IRA #2 and bought some CF with 25% of the proceeds.
This strategy is only recommended in IRAs.
CF is up a little today trading over 206. I plan to buy 1% stakes, as this purchase was, in all my accounts and then add more if it falls. I've also recently bought some V and I'll do the same with that as soon as options expire this Friday.
As always-my motto is- buy "LO" and sell call options high.
She may have to sell some stock but what about the elderly with no alternatives, should they trade in their walkers for shotguns?
The Gray Panthers will destroy these idiots.
"Phillips 66 has a good capital deployment policy through share repurchase and payment of dividends. During the second quarter of 2013, the company returned more than $738 million to shareholders through $192 million in dividend payments and $546 million in share repurchases. Through the end of June, the company had repurchased 22.6 million shares of common stock totaling $1.3 billion as part of its previously announced $2.0 billion share repurchase program. Phillips 66 had 611 million shares outstanding as of Jun 30, 2013.
We believe that the increase in dividend and share repurchase programs will boost investor confidence in the stock, and drive shareholder value."
PSX Hikes Dividend, Shares Rise
by Zacks Equity Research
October 03, 2013
Berkshire currently owns 27,163,918 shares of PSX worth about $1.6 billion or 4.4% of the company.
"The board of directors of Phillips 66 (PSX) has declared a quarterly dividend of 39 cents per share on Phillips 66 common stock, representing an increase of approximately 25 percent from the prior quarter. The dividend is payable on Dec. 2, 2013, to shareholders of record at the close of business on Nov. 14, 2013.
“Our objective is to consistently increase shareholder distributions, while also capturing attractive opportunities to reinvest in our businesses and grow future returns," said Phillips 66 Chairman and CEO Greg Garland. “Returning capital to our shareholders remains a priority for Phillips 66, and we are pleased to deliver another increase in our quarterly dividend.”
PSX is currently 56 but I believe it will live up to its name and trade at 66 within 6.6 months. By then the dividend could also be another 20% higher.
I like your move but I'd use it as a replacement to fixed income securities and I'd sell out of the money call options to double the already generous dividend. That's how I use INTC and MSFT and a few other companies.
I bought a very small position of V/Visa in IRA #2 today and will continue to add more if it should continue its recent slide. Check out the growth of its free cash flow figures via Valueline-it's free for the Dow 30.
Amount of put premium? $3 per share sounds about right but at the time of the sell I was just concerned with a good price to add to my IBM holdings. I look elsewhere for higher paying option premiums.
Their Dow 30 stocks are free so I checked out NKE today and compared its free cash flow numbers with IBM.
NKE has about a 3.5% FCF yield whereas IBM is around 9%. In the last five years NKE has grown FCF at about 70% compared to IBM' 90%.
Which one will do better in the next year? IBM-current price 179.7 and NKE is 70.5
I reported a recent share buyback by STX.
I also just bought another small block of IBM in IRA #1, increasing my position by 10% to 4.8% of the assets in this account. Buy when they are down is my motto. I have more cash available in all of my accounts when options expire later this month.
I also have more orders to buy IBM in IRA #2 that could fill if its downward trend continues.
I'm willing to put 10% of my net assets in IBM but I'll continue to add to my holdings very slowly because I need cash on hand to sell cash secured put options. Note-I'm also short 180 put options in my personal account so I may be buying more later this month.
"Share Redemption Agreement
On October 7, 2013, Seagate Technology plc (the "Company") and Samsung Electronics Co., Ltd., a company organized under the laws of the Republic of Korea ("Samsung"), entered into a Share Redemption Agreement (the "Share Redemption Agreement") pursuant to which the Company will repurchase 32,700,000 Ordinary Shares of the Company (the "Shares") by way of redemption from Samsung at a price of $46.03 per share, for a total purchase price of $1,505,181,000 (the "Redemption Price"). A copy of the press release announcing the entry into the Share Redemption Agreement is attached hereto as Exhibit 99.1. The Shares represent approximately 9.1% of the Company's total Ordinary Shares outstanding.
The transactions contemplated by the Share Redemption Agreement (the "Share Redemption Transaction") are expected to be consummated on October 7, 2013 and no later than October 18, 2013, subject to the absence of any legal restraints prohibiting or preventing the consummation of the Share Redemption Transaction. Upon the closing of the Share Redemption Transaction, Samsung shall receive the Redemption Price payable in cash by the Company in exchange for the redemption of the Shares of Samsung. The Shares will be cancelled immediately following the Share Redemption Transaction. The Share Redemption Transaction is part of the Company's previously announced share repurchase program.
The description of the Share Redemption Agreement above is qualified in its entirety by the Share Redemption Agreement, filed as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein by reference."
Buying back another 9% of their shares from Samsung.
I'm not willing to add to my position at current prices for KO and the put premiums pay next to nothing so look elsewhere or wait for better prices.