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Who says I don’t know how to be bullish?
Winners, winners and even more winners dominate the Thanksgiving Watch List despite the fact that the market itself has pretty much treaded water since I wrote it. There are still plenty of good entry opportunities on our original picks and, of course, I’ve found a few new stocks I like, even in this dangerous market. One big negative is the VIX fell apart on us so not as many buy/writes as we had last time…
Our last Watch List did very well but that was BECAUSE we took well-hedged positions and scaled in slowly! Keep in mind it’s a watch list and not a Buy List. Buy Lists are for clear bottoms where we need to load up on things, we haven’t had one of those since July 11th. A Watch List is for things we feel are good values so we keep our eye on them or, as I said in the previous post, a good place to start scaling in SLOWLY to new positions, so we can take full advantage of additional weakness.
All of these stocks are ones I like and they are good for any portfolio. Anytime you see one falling though, that’s the time we want to take a closer look to see if we have an opportunity to jump on something we like while it’s on sale!
AET (12/21 – $34.04)
AGNC (11/24 – $26.20, 12/21 – $27.91) is (gasp!) a REIT. But it’s a strange one that (according to them) “Invests in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government sponsored entity. The company funds its investments primarily through short-term borrowings structured as repurchase agreements.” This $27.91 pays a QUARTERLY $1.40 DIVIDEND! The next dividend is on Jan 26th for holders as of Dec 31st and we can buy the stock here and sell the June $25 puts and calls for $5.20, which puts us in for net $22.71/23.85.
ATVI (11/24 – $11.40, 12/21 – $10.98) is a good one if we are going to have a good retail season. They own WarCraft, which is the 2nd biggest monthly revenue producer behind SNE’s Everquest. Having a monthly subscription base sees them through rough times and they have had their growth halted in China as they switch distributors, which should be finished by the fall. I like selling the 2011 $10 puts for $1.20 and buying…
