Grandma buys more CF at 27.27/share which lowers her average cost per share to 31.6/share.
It makes up 2.46% of her assets.
And now the stock is almost even though pre market it was down over 3.
Also the DNKN earnings are now being considered a big miss. Buy it under 33.33 and buy a dozen donuts.
Down under 87 on bad earnings.
Thank you call options!
In other news-DNKN reported good quarter and raised dividend 13%--coffee, donuts and cigs go together.
Sold more call options today in account #3 with PM trading at or near 90. Earnings are tomorrow.
CALL (PM) PHILIP MORRIS INTL JUN 17 16 $95
I was paid $1.53/share and if called I'll miss out on the June dividend.
I also have an order in to buy two stocks using the cash I received from the SYA buyout.
Once bit, twice shy--meaning--
an unpleasant experience induces caution
"Be sure you put your feet in the right place and then stand firm."
Bought 320 shares in my new IRA using proceeds from the PCP deal. I also sold the June 31 call options giving me an option adjusted cost of 27.48/share which gives me a quarterly dividend yield of 1.4%
GM makes up 8.06% of the assets in this account.
"Excluding special items, GM earned $5.02 per share for the year, beating Wall Street estimates of $4.82. Profits were fueled by strong SUV and truck sales largely in North America. GM benefited from gas prices at or below $2 per gallon for much of the year, which pushed buyers toward larger, more profitable vehicles.
Full-year revenue fell just over 2 percent to $152.4 billion, but still beat analyst estimates of $144.9 billion.
Earnings were so strong that most of GM's 49,600 hourly workers will get $11,000 profit-sharing checks on Feb. 26. The checks were based on North American pretax earnings, which hit a record of just over $11 billion for the year.
Investors reacted favorably to the news. GM shares were up 40 cents to $30.05 in premarket trading Wednesday about an hour ahead of the market open."
Bill Miller likes it at only 6 times earnings and Grandma likes the 5% dividend yield.
Not only is the PCP deal done but so is SYA--"Symetra Financial Corporation (NYSE: SYA) ("Symetra") today announced that Sumitomo Life Insurance Company ("Sumitomo Life") has received all necessary approvals from regulatory authorities in the United States and Japan for the previously announced proposed acquisition of Symetra pursuant to the Agreement and Plan of Merger entered into on Aug. 11, 2015 (the "Merger Agreement").
Subject to the satisfaction of customary closing conditions, the parties to the Merger Agreement intend to close the acquisition transaction with an effective date of Feb. 1, 2016. On the effective date, each outstanding share of Symetra common stock will be converted into the right to receive $32.00 in cash, without interest, and less any applicable withholding taxes."
What to do with all this new cash?
Due to the selloff in IBM, WFC, BAC and AXP our book value is now under $100/share on the "B" shares.
The buyback would start at around 115/share.
Earnings Per Share Growth Analysis Chart
Current Quarter vs. Prior Year:
"For the fourth quarter 2015, analysts estimate IBM will earn $4.81 non-GAAP per share, a decrease of 17.15% over the prior year fourth quarter non-GAAP results"
All in IRA #1. GSK joins my top ten-it's currently ranked #5 a 4% position.
This account is still 19% cash which is used to sell put options. More put options will be sold next week.
and she also sold call options against half her shares. Current dividend yield is 7% and the July 10 $$ strike price pays another 10% premium.
VAVI- current price 9.07/share.
Her new top 10--BRK 13.84%, PM--11.5%, PCP--9.2%, MSFT--5%, AIG--4.67%, WFC--4.1%, GE--3.8%, MO--3.22%, USB---2.88% and VZ--2.7%
Also not included are her preferred holdings currently standing at 5.75% and bonds and CDs--7.33%of her assets.
Last year-2015, her account value was up 3.8% and since Jan of 2009 her account has compounded at 11.4% but year to date it's down 4.3% as of yesterday.
Yes not only would I sell them but I'm already short calls ranging in price from 92.5-97.5 for June.
I'm also short the above 87.5 calls in an IRA that if called will be invested in a few stocks I've been buying. If not called I'll continue to sell call options until it trades under 85.
In IRA #1, sold--GM Jun 2016 28.000 puts, for a 5% premium.
GM currently priced at 30.5/share.
I'll sell more puts or buy more of the stock next week,