Stock news outlets are notorious for providing lists. Recently, Jim Cramer’s website reported on stocks with huge insider purchases and buybacks. Barron’s Magazine also routinely runs articles on this subject. Today in the PowerOptions weblog, we’ll take a look at the list and then explore option trading ideas using this information.
GE Teams with Hitachi for stake in Global Nuclear Power Market
General Electric (GE) and Hitachi (HIT), in a move anticipating the resurgence of Nuclear Power amid global environmental concerns and electricity demand, have entered into a joint operating agreement. Audio Podcast: An audio podcast of this article is available at: poweropt.com/podcasts/2007_07_11_GE.mp3
NASCAR Delivers KO and Daytona Looses its PEP
The International Speedway Corporation (ISCA) stated Monday it would end its relationship with Pepsi Cola (PEP) and enter into a 10-year deal with Atlanta-based Coca-Cola (KO). This will make Coke the official soft drink for 11 of the company’s race tracks including where the Daytona 500 is run. Pepsi has been the official beverage at Daytona 500 for 49 years. This comes somewhat cruelly, although perhaps poignantly to some, one day after the running of the Pepsi 400.
Construction Industry & Covered Calls
Even though the residential housing industry is in the dumps, the commercial/industrial construction business is on fire. The world economy is booming with developing and transitioning economies turning in GDP’s in the 5% to 6% range. Infrastructures like roads/highways, water, electric power generation/transmission, waste treatment, etc. have to be built in order to support the burgeoning growth of developing and transitioning economies.
CME Bull Put Spreads Strategy Returns +11.1% June 07
In article, “CME Buying CBOT”, we analyzed Chicago Mercantile Exchange’s (CME) purchase of CBOT (BOT) with an eye for a bullish strategy for CME. We continued the CME bull put credit spreads saga and for the month of June, the strategy returned a very nice +11.1% return. This strategy has returned over 63% in only seven months. The bidding war between CME and ICE for CBOT appears to be about over, as ICE has decided not to up the ante. Even if for some reason the CME/CBOT merger does not come to fruition, CME is looking bullish and using PowerOptions powerful stock options tools to search for potential candidates returned the following bull-put credit spreads stock options position:
4 Stocks from Warren Buffet’s Portfolio
Today on the PowerOptions blog, we will take a look at four promising companies from Warren Buffet’s stock portfolio. Buffet is known for his value hunting and his patient and long view style. In 1997, he penned the line, “Lethargy bordering on sloth remains the cornerstone of our investment style: This year we neither bought nor sold a share of five of our six major holdings.”
Advanced Medical Optics Makes Play for Bausch & Lomb
Advanced Medical Optics (EYE) has offered to take over Bausch & Lomb (BOL) for a cool $4.1 billion. This offer brings into question the $3.7 billion Warburg Pincus deal currently on the table. Warburg Pincus is a private equity firm.
Airline Sector Posts Profit for Fourth Consecutive Quarter
There are some businesses investors consider, as a rule, profitless. Airlines, passenger trains, and, at least recently, newspapers all seem to be ‘profitless pariahs.’ The airline industry, since deregulation in the late 70s, has had a hard time regularly pleasing investors. Considering it is cheaper now, in real dollars, to fly from New York to Greece than it was in 1965, it is no wonder the profits have sometimes been elusive.
Oracle Reports Fourth Quarter Profit
Oracle Corporation (ORCL) stated on Tuesday, in a public announcement, fourth-quarter profits rose 23% from a year ago. The large software producer attributed the gains to increased sales of new software contracts and from increased market share.
A look at Apple’s (AAPL) iPhone and its Competitors
As you may have heard, Apple (AAPL) is planning to launch its iPhone this week. The competition in the phone market is brutal and many have speculated how Apple can compete in such a crowded marketplace. Interestingly, there aren’t an excessive number of phones in the high-end market where Apple finds itself.