Gee thanks for the trade school lesson. I was suggesting an alternate strategy to just cashing out of the stock for anyone who thought a correction was looming, not instructing an individual on what he should do after he sold his stock.
So sell covered calls and when the correction hits, buy them back at a profit while still collecting the dividend. The profit on the call trade just adds to the yield you get on the investment ... unless you're wrong of course.
" fairly young without a lot of experience"
Not sure if age is the determining factor, but lack of experience or lack of learning from experience certainly is. Many Yahoo investors thrive on emotions rather than boring fundamentals. They want to hear things that reconfirm their "thinking" and feel traumatize if anything seems to contradict their dreams.
I hold some of both KKR and Blackstone. I think BX has a better PR department. You see people from BX on CNBC and get a boatload of news releases from them. KKR not so much. Although they both seem to be good investments and both lack some transparency as well as unpredictable dividends, BX is probably more often in the public eye.Maybe once we get past a tiny rate hike or two, KKR will be "discovered."
" as if the "thumbers" actually know something."
You do realize this is a Yahoo message board. People only like what they want to hear and dislike anything that hints at a reality that doesn't fit into their fantasies.
May also have been because of the pipe line spill in Santa Barbara, Maybe people think everyone will want to buy more super safe rail tankers.
Trading volume does not seem especially high. Could be shorts jumping ship, but almost every day the intra-day volatility in the stock seems to imply someone is manipulating it. Again, possibly the shorts or day-traders who hit on low volume stocks.
Don't mean to lecture you, but if you bought the stock because of the fundamentals ... and they have not materially changed ...you shouldn't let an irrational market reaction (or manipulation) scare you out. You're doing exactly what "they" want you to do. Eventually the fundamentals will prevail. This isn't Twitter where rationality is totally absent. It's a solid company making real things that will continue to be bought and dips are opportunities. It will trade in the $60 to $70 range and be more sensibly priced once the day traders move on to something else. Definitely more volatility ahead, but you need to work with it and not be spooked.
The same people who were buying thousands of calls that implied it would hit $54 or more after earnings release.
" ...but he won't tell his flock."
They'll need to hire even more people to screen calls into his show and/or go back to having his staff call in to ask scripted questions. His followers are probably asking themselves What The Flock just happened.?
Every time the price moves up even a little it gets pounded down. At this point I can't believe there are that many more shorts piling in or that many longs keep dumping on small moves up. This has got to be orchestrated, taken advantage of thin volume. Presumably when this has been worked as far as it will go the same deus ex machina will run things in the other direction. Call options have remained pretty resilient compared to share prices.
Unfortunately bought some more around $62 on Friday but even managed a bit more at $57.15 on Monday. Pretty sure the bottom is in and as reality dawns, it will be bid up unless there's a total market swoon ... even then patience will be rewarded.
Volatility and Chicken Little reactions can be your friend. Timing is never easy, but sometimes irrational Mr. Market plays Santa Claus. Many of those rushing to the exits will rush back in ... employing the ever popular buy-high-sell-low strategy and shorts who are playing this will recognize they're milk this to the max and have to cover.
I should add that I wanted to buy back some covered calls I had written on shares I already own, but those prices held pretty strong. Presumably the options market isn't as easily spooked.
I cleverly watched and waited until $62.20 to add some more and of course it more or less immediately dropped another dollar. Timing is something I excel at.
Anyway, in the long term the irrational reactions to uncorrelated events creates trading opportunities. I don't know if the price is driven by nervous idiots or by those who see a thinly traded stock as an easy target for manipulation. It's certainly nothing to do with company specific fundamentals. I guess the volatility will continue until it doesn't work for them anymore.
Right. Do you think L'Oreal was just taking a shot in the dark and that ONVO made the commitment as a gift from the Easter bunny? Negotiating an exclusive commercial supply agreement obviously depends on development issues, but it's as much in ONVO's interest as L'Oreal's to see where this could lead & provide direction to this phase and that still leaves open the areas of skin drug testing and transplant applications and could spark interest from a major pharmaceutical company to nail down a similar deal in those areas.
"The development and validation phases each require L'Oreal to make an upfront payment and payments for certain deliverables. The Agreement contemplates that the parties will negotiate an exclusive commercial supply agreement, which will include customary licensing and royalty terms. The parties have not disclosed the commercial terms of the Agreement."
Anyone who references "the big boys" is clearly a conspiracy theorist on a par with the flat earth proponents.
There's less than $8 million in trading volume so far today and almost zero option action. These are obviously penny-ante "big boys."
Unfortunately some people, including analysts with only a superficial understanding of the company, trade this with the ups and downs of oil as if the only thing they produced was oil tankers and as if order were placed and cancelled on a weekly basis. It's fairly thinly traded and if the "machine traders" spot momentum one way or another they buy or sell without any concern for the long term prospects of the company.
And, of course, industrials as well as the broader market have been selling off.
Yes, SDRL and SDLP are different entities. The partnership is still paying distributions.
" What if they miss on the next quarter est and stop the dividend?
The cash flow is not going to zero even if they don't meet estimates ... and at this point the market has had plenty of time to price in the pessimism regarding oil and underestimate distributable cash flow in future.
"Unlike traditional MLPs, EMES is a variable distribution MLP, which means that it pays out all available cash flow every quarter ."..