NOV...this stock has run up over $20 per share and we are no longer comfortable with any possible downside. Still a good company with excellent prospects. We will be dropping it as of this Friday's options expiration.
IBM...We have been warming up to IBM for some time since it keeps selling off and reporting weak quarters. IBM still has significant advantages in it's business and we believe they will get their operations back growing shortly. A single digit PE and a $170 strike price are a good entry point.
KO..Has had some bad quarters of late, but has enormous leverage and reach in it's stable of businesses. The stock seems to have settled in here around $39, so we will make our strike price $37.50.
CSCO.. Sooner or later the upgrade cycle will commence and Cisco makes components required for almost any upgrade in technology. A stable price that is not overvalued at around 11 PE and little downside risk. Our strike price will be $21.
JCP...Housekeeping note. We will likely be called out of half of our position in this stock this Friday with a sizable loss. However we have been able to mitigate about half our expected loss with the use of options.
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