Saturday, January 31, 2009

31

Really ought to dedicate February to clearing out the clutter in this apartment. When the pressure rises to where I can't stand myself any longer, I will/ abandon these blogs until the pressure subsides to a tolerable level. - Sprintedon Migrasaurus, which now has 1021 posts, has a site map worth perusing and using. If you prefer more specific information, you will need to scroll to near the bottom of the page where the labels are. Guess I should put a link in to them, if I can. - Most of the comments at Money Rho are mine. Update stuff. Entered one at WCG, BAC, and CNO earlier. All of these companies are in trouble. Still, I wouldn't short them. A perfect upside trade situation developed at CNO beginning on November 20, 2008. That was a down day on the market. CNO closed at $1.78 that day. The stock was trading from just below $2.00 to just above $3.00 and so could be expected to move back to that price or higher. It's previous high above $3.00 was $3.16. It did move up, and when it did, it established a new trading range. On November 28, 2008, an up day on the market, it closed at $3.38. It was then the new trading range--above $2.50 and below $3.90--began. Analyst consensus had it rated a buy when it was in the old trading range, and that didn't change. In December a dividend was declared for holders of record as of December 31, 2008. Now, I had no idea how high CNO's stock would rise, but I knew dividends draw investors. I also knew that after December the price of the stock would decline. Circumstances have me sidelined. Surprisingly, and this is the salient fact, CNO rose to a high of $5.19 on December 31. Just do the math. Remember, here is a stock which is barely investment grade; yet it is outperforming the market by a huge margin. Say you bought a mere 50 shares at $2.00 a share on 11/20/08. Do you hold through December so you can get the dividend, or do you sell your 50 shares at, say, $5.00? Of course there will be a commission that will need to be paid upon the purshase and again upon the sale. Say $50.00 is that commission. The dividend was about 0.10 per share. 100 + 50 = 150. 250 - 50 = 200. 200 - 150 = 50, a gain of 25%; and 50 x 0.10 = 5, a gain of 5% ($5.00). The stock would have to be at $4.90 when you sold it in 2009 in order the get the $50.00 selling it at $5.00 on December 31 would have given you. On January 2, $4.71 was the closing price. Nonetheless, I say: Take it when you have it. - All the immediately above information should have been posted at Money Rho. Some of it is. But a surprise email arrived this morning, and it is what prompted me to make this disclosure. - At S M are the song lyrics for sl43, Dreams Edge. rho00276

No comments: