We look for value priced large cap stocks that offer little risk of further downside and upside potential. However once they move up nicely we will not chase value that is no longer there due to the increased risk profile. The selections here offer good value and at or near the strike price is a good entry point. Almost all have better than average dividends too.
AFL....Low PE insurance company. Lots of cash flow. Our strike price of $60 is perfect for buying the duck.
ARCP...A triple net lease REIT. New rapidly growing company that we believe is value priced at our strike price of $12.50.
BP...We will be careful with positions in this security. There is large upside potential due to the low PE, but there is also significant downside risk if some new legal issues come forward.
CSCO...Makes lot of routers for the web. Stock price has been hit by some weak earnings of late. Strike price of $19.
HFC..Refiner with high margins from Dakota oil. Strike price of $35.
IBM...This large cap tech company has taken a beating in stock price over the last year as the growth rate has come down significantly. Add in Warren Buffet has bought shares. Strike price $170.
JCP ..We are slowing exiting this stock with a much smaller loss than we had expected. Perfect example of how hedging and options can dig one out of a deep hole.
JPM..Best run bank in country with bad PR holding price in value territory. Strike price at $50.
KO..Large consumer stock which has sold off. Strike price of $38.
NNN..Large triple net lease REIT. Solid solid solid. Strike price of $30.
O..We consider this a blue chip triple net REIT. Strike price of $35.
PM..Tobacco stock that has sold off due to currency concerns. Cash flow king strike price at $82.50.
POT..Fertilizer stock that has sold off too much. Strike price of $29.
SHLD..We like the risk reward here. Strike price of $37
SO...Blue chip utility that has sold off. Strike price of $39.
T... Blue chip big cap Telecom,. Strike price of $33.
VZ...Blue chip big cap Telecom. Strike price of $45.
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