Stock Picks for All

Regal Entertainment

I now have a position in Regal Entertainment ( RGC)

As soon as I get my order filled on my Microsoft ( MSFT ) option , I will advise .

 

Thanks,

Eric

 

 

 

 

New Pick : Regal Entertainment

After taking profits today on Walgreens (WAG) its time to take some of that capital and put it to good use .

"Good Use" in this case belongs to  Regal Entertainment ( RGC)

Regal operates about 68OO movie screens in about 55o movie theatres across 39 states as well as The District of Columbia .

This company does not fit my usual criteria which is buying stocks that have been crushed in the market, in fact Barrons wrote them up this past weekend .

This is a company that currently yields a little over 5% and has had a great history of paying nice dividends . This is important for those that are looking for stocks that can provide income .

In addition, this stock has payed out special one time dividends as recently as 2007 when it payed out $5.00 per share to its owners .

Regal has about 1,000 digital screens and plans to double that by  the end of the year . This is important because one can charge a higher amount for the digital showings .

The company is worth about $ 2 billion and has very manageable debt of about $ 1.8 billion according to Barrons .

To keep things in a simple way which is my style, at the end of the day as bad as the economy is , people are still going to the movies and are still paying for those high gross margin snacks .

Regal has specials to keep pace with AMC Theatres and their price slashing . Regal offers a "Special Night for Two" that includes two tickets and a gift card to redeem for snacks.

Lets not forget that during the depression , people still needed to escape . And compared to the cost of going to a live sporting event, or some cultural events , movies still offer a great value  for the money .

At this point the stock received a "Barrons Bounce" which took the stock to $14.00 . I would pay no more than $14.25 for this great company and my target price is in the area of 17-19 dollars .

This would give me a return of about 20to 30 percent depending when I cashed in . In the meantime , I will take my quarterly dividends and buy a movie ticket and a snack or two .

Do your own research  before investing .

Your friend,

Eric

 

 

 

Walgreens Update and Microsoft Option Pick

Hello,

I closed my position this morning on Walgreens ( WAG) with a selling price of $34.00  which is a five to six point profit  depending on when you purchsed  the stock .

The stock has dropped in price the last few sessions of trading, from its high last week of $34.55

I  don't know if this is the start of a  longer term correction in the stock, but I personally don't want to wait around and find out .

I will be more than happy to take  a 23% gain on the largest drug store chain in the United States and move on to the next idea .

My next idea is based on my earlier pick of Microsoft (MSFT) which I recommended earlier this year .

To gain leverage in the stock , I am going to use LEAPS . More information on LEAPS can be found at www.cboe.com as well as simply entering the term in any large search engine .

I am interested in the Jan 2012 call options, so I am going to purchase the Microsoft  20 Jan 12 call options .

I am looking to get in at $560 per contract , right now the ask price is $580.00 .

For those of you that sign up for the email alerts , you would have received something from me last night that I was going to sell WAG at $34.00 and you will also get updates on other stock and option positions that I open or close faster than those that read this .

As always, you are responsible for you gains and losses , I am your guide .

Your Friend ,

Eric

 

 

 

 

The Return of the Service

Hello,

I am back after a personal hiatus . So after 90 days of being away, I will now move forward and continue to offer you some great stock picks to  help you make money  in this market.

Currently, I have two   positions that were open this past summer .

1. Microsoft - I recommended this in the $24.00 range , it is currently still in that price range .

I still am bullish on this one and I actually will have an  option pick on this stock in my next post .

2. Walgreens - I recommended this stock at $28.00 and watched it drop in the $26.00 range . However, this stock just did well on earnings, driving the price to its current price of just under $34.00 at  this time .

I would not commit any new money , and I will be keeping my eye on this stock and see about possibly taking profits very soon.

For my next post, I will be posting an options pick featuring Microsoft .  Please go to www.cboe.com and do some reading on LEAPS .

I ask that you do that so I can get right to the pick .

Your friend ,

Eric

Microsoft : Buy Up to $25.00

After the carnage in the market , it was good to see a nice rally this past week.

Even though that occurred , it was also nice to have the market give us an opportunity to get into one of the most successful and cash rich companies in the world .

That would be none other than Microsoft (MSFT)  I think it is pretty safe to say we have heard of them and have used their products at some time in our life .

One of the products that did fail was the KIN mobile phone which was pulled after only 50 days after being out on the market . Defiantly not one of their better moves in their long successful history .

My take on this is that as big as the mobile phone market is , it would have been very hard to compete with the "800 pound gorilla" known as Apple . Even competing with Research In Motion would have been difficult .

This does not bode well for their next entry which would be the Windows Phone 7 which is due to come out in the next few months, but even though that might not pan out for them there are some nice positives .

Nearly three fourths of the company's and nearly all of its profits come from the non consumer business side . This would include Windows 7, XP , and Vista .

The company has thirty seven billion dollars in the bank , thus they have the capability to raise the small dividend if they choose to in the future .

According to market research giant IDC, sales of software is expected to jump 3% this year as businesses start to upgrade hardware and software that was postponed during the beginning of this recession.

At twenty four dollars and change , this looks like a gift that the market has bestowed upon us , and I think it is time to take advantage of buying into this world class company .

The company reports earnings the week of July,19 so  I will be following up this story at that time .

I believe that this stock revisits its price range of the low thirties , which gives you a twenty to twenty five percent gain . Again this is how we are going to make money in the market , by buying into these great companies over and over again after they have been washed out by  the street .

This is for informational purposes only , consult a licensed professional before investing .

Your Friend,

Eric

Option Pick Updates

Hello,

After watching the carnage in the market, here is an update on the most recent trade ideas.

Silver Wheaton (SLW) July 18 put : I have sold it today at $85.00 per contract . This is a gain in the area of sixty percent .

This has been a very volatile market to say the least , and it has taken down many a good idea.

My  next pick was Coca Cola (KO) July 52.50 call  I was taken out at $ 14.00 . My price was $ 28.00 per contract .  This is a loss of  50%

My next pick was Exxon Mobil (XOM) July 62.50 call. The price is currently $ 12.00 per contract . My price purchased was $ 73.00 per contract .

I  am going to continue to hold the position in this case, since it is so far down. I normally would have sold this already , but this is not a normal market . 

I am currently looking at three or four ideas that I  hope to post on soon. ( If it makes sense!)

Your Friend,

Eric

Coca Cola Option Update

Hello,

My  order for the Coca Cola (KO) July 50 call options were filled this morning at $28.00.

My target price is $42.00 my "mental" stop loss will be if the options drop to $14.00 per contract .

I will have further updates on this pick as well as the other open positions in the next  day or two .

Your Friend,

Eric

Option Positions Updates and New Pick

The following is the update for my  two open positions  as we head into a new week .

Silver Wheaton (SLW) July 19 put . The contract was down over 50% at the market close of 06-25-10.

My original price paid was $ 53.00 per contract . Current value is $ 20.00 per contract .

I will continue to hold the position with the goal of paring the loss down . With three weeks left, I believe there is ample time for a pullback in the stock to justify holding this position longer .

My new selling target price will be $ 35.00 per contract . Stay tuned .

Exxon Mobil (XOM) July put . Current Price is $42.00 per contract . My original price paid was $ 58.00

I see the Dow making a nice one ot two day rally this week , with XOM being one of the companies that benefits . Again because this stock has been volatile lately , the price of the option and stock can turn on a dime.

My strategy on this is to hold with the initial goal of getting back to my original price paid of $ 58.00 , and then reevaluate at that time .

Some people may criticize this, but my strategy is to avoid losses first and foremost .

I am looking to take a position in the Coca Cola (KO) July 52.50 call options . The current price of the stock is $50.26 and the options are priced at $27.00 .

Just like Exxon Mobil, I believe that the stock will benefit from the market rally that I anticipate this week .

If I can get in at a price of $33.00 or better per contract , then I will go ahead and take a position .

This is the same contract that produced a nice 27% move just a couple of weeks ago .

In this day and age, you stick with whats working and Coke is working for me .

Your Friend,

Eric

Disclosure: This is for information only , you assume all risks if you follow my lead .

Exxon Mobil : Part Deux

Hello,

With the market getting beat up today due to the worries of a possible double dip recession, I have decided to take another position on Exxon Mobil ( XOM) .

This time I will take a bullish side , and buy the July 62.50 calls at a price of no more that $ 59.00 per contract .

I have been filled just moments ago , this contract would be a good purchase up to $65.00 in my opinion.

I am going to put a mental stop loss , if it drops down to $ 30.00 . I am setting a target of $90.00 to $120.00 per contract .

I am looking for a market rally of some sort within the next week or two that can propel XOM back up near the $62.50 range, which will be good for holders of the call options .

As always, do your homework!!!  I assume no responsibility for your actions.

Your Friend,

Eric

Exxon Mobil : Break Even

Hello,

Today I was stopped out of my Exxon Mobil July 60 put position . I placed an order to sell at $75.00, and I was filled earlier today .

With my purchase price of $73.00 , you have to figure that this trade is a wash considering commissions have to be figured in.

I will be watching the stock  to see if  I can get back in at some point in the next few trading sessions.

It was not a "win" but it was not a loss either . Thus I now can get a fresh set of cards from the dealer . ( Mr .Market)

Your Friend,

Eric P.