Investor’s Business Daily announces its top 100 stock picks each week using a proprietary formula. The PowerOptions weblog thought it might be interesting to take a look at the covered call possibilities.
Utilities are another sector considered to be less prone to an economic virus. When the economy is feeling ill, people still use electricity, water, gas, etc. Some utilities with a heavy emphasis on supplying industrial customers could be negatively impacted during tough economic times, but utilities supplying its wares to the general population are generally inoculated from catching an economic malady.
With the economy’s recent anemic performance, we will continue a consideration of industries tending to hold up well during an economic slowdown. Even when the economy is not doing very well consumers continue to go to the doctor, so healthcare is an industry that continues to perform ok in an economic malaise.
There is news from London this morning of US retailers’ stock futures taking a downturn in anticipation of lower than expected earnings. Many retailers will release their first quarter earnings today and experts are saying the results could be tepid because of a colder than normal April.
With the economy chugging along in first gear, maybe its time to consider covered calls for consumer staples, for example companies involved in the food industry. Everybody eats, even when the U.S. economy is not performing well. But, maybe instead of USDA prime, we eat more hamburger or even chicken. Even when the economy isn’t doing so hot, companies involved in the food industry generally continue to perform ok.
Alcoa (AA) and Alcan (AL) shares surged amid news of Alcoa’s planned takeover bid. Alcoa’s stock is up 5.2% this morning to a 52-week high of $37.50 while Alcan’s stock raced up 34% to $81.77.