Important Note: We are NOT sharing a complete portfolio, but showing you the model of our portfolio. Blue Chip Options may or may not have a current holding or position. These are simply stocks we follow.
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Here's a few more of our Shifty Fifty for your review:
Retail/Distribution
Wal Mart Symbol: WMT
Rationale: This is another company we hate. They import over 90% of their non-food products, put them in large unattractive warehouses, and sell the hell out of them. This is the greatest distribution company in the world. They’ve just opened an “all Hispanic” Wal-Mart store in Texas, testing regional ethnic distribution.
This company has revolutionized the blight of our small downtowns, while creating a distribution model that has “created the cost plus” mentality of our economics.
One cannot be part of it. We trade the stock, and options.
Berkshire Hathaway B Shares Symbol: BRKB
http://www.berkshirehathaway.com/
Rationale: This is Warren Buffet. The greatest investor of all time. It’s a superb long-term investment, at bargain prices.
Amazon Symbol: AMZN
http://finance.yahoo.com/q?s=AMZN
Rationale: Amazon is far ahead of the game with Kindle, the electronic reader. Many think Apple and Steve Jobs will do a marketing shift and soon have their own electronic reader.
Amazon just bought Zappos.com, and remains a top distribution model with Jeff Bezos, CEO, as a visionary. We trade the stocks and puts and calls.
La-Z-Boy Symbol: LZB
http:// www.la-z-boy.com
Rationale: La-Z-Boy has cut costs, and we think home redo’s, part of “cocooning” in the “new economy” will be a consumer spend. As the economy improves, LZB has great potential for earning jumps. Use a 25% trailing stop.
Computers/Software/Internet
Apple Symbol: AAPL
Rationale: Floyd has been trading Apple for over 15 years, and considers both it as a company, the products they make, and the way they market sheer brilliance.
We invest long in the position, and also buy puts and calls.
Research in Motion Symbol: RIMM
Rationale: Floyd has been trading Blackberry for over 8 years, and considers both it as a company, the products they make, and the way they market sheer brilliance.
We invest long in the position, and also buy puts and calls. RIMM is a small version of Apple, with less invention, but a strong following. They constantly surprise.
We buy this position long, and also play puts and calls on it.
Google Symbol: GOOG
http://www.google.com/finance?q=NASDAQ:GOOG
Rationale: All their money comes from advertising, a scary model, but Google is far ahead on their own version of Microsoft Office, and “Free” services that can attract even a business network. At www.bluechipoptions.com and www.oexoptions.com we often recommend Google email to subscribers having difficulty getting our bulk mail subscriptions. We advertise with this company.
Every part of doing business with this company is good, and it also trades amazingly close to the OEX projections and system. We play long on the stock at times, and often buy puts and calls. One of our traders 5 years ago made over $300,000 on one Google call. It’s one of our favorites.
Yahoo Symbol: YHOO
http://finance.yahoo.com/q?d=t&s=YHOO
Rationale: Yahoo is the underdog in the game. They never seem to get it quite right. But they are close, and have a brand name. With the right leadership we continue to believe Yahoo has great merit as an internet stock, and watch/play it long, and buy puts and calls at various times.
Agricultural
Caterpillar Symbol: CAT
http://www.cat.com/cda/layout?m=8703&x=7
Rationale: CAT is agriculture. It is the big machinery to move the world. CAT follows both agricultural and industrial development. We play it short/long, and puts and calls.
Powershares DB Agricultural Fund ETF Symbol: DBA
http://dbfunds.db.com/dba/index.aspx
Rationale: This ETF mirrors agricultural/farm products well and we trade as both put and call.
Intrepid Potash Symbol: IPI
http://www.intrepidpotash.com/
Rationale: What Potash is: http://en.wikipedia.org/wiki/Potash
We play this both long term at times, and are new to trading to this position, replacing another Potash manufacturer.
Real Estate
Proshares Ultrashort Real Estate ETF Symbol: SRS
http://www.proshares.com/funds/srs.html
Rationale: This is short on the real estate market, in an ETF fund, and one of our best investments. www.bluechipoptions.com believes we still have a huge commercial real estate bubble ready to burst. Banks/insurance companies, and many investing companies are behind the great strip and commercial mall expansion during our “years of greed”. Tenants are already requesting “price adjustments” for their declining business, and we think it’s a big surprise for America when this one bursts. We often trade this as an option.
Annaly Capital Management REIT Symbol: NLY
Rationale: Annaly Capital Management, Inc. (NYSE:NLY) manages assets on behalf of institutional and individual investors worldwide. Annaly’s principal business objective is to generate net income for distribution to investors from our investment securities and from dividends we receive from our subsidiaries. Annaly has elected to be taxed as a real estate investment trust (REIT)
Industrial
KHD Humboldt Symbol: KHD
http://www.khdhumboldt.com/phoenix.zhtml?c=92949&p=irol-irhome
Rationale: Many of our traders still own this in our speculative portfolio, bought at 7.40 range, currently at 10.79 8/7/09.
We recommend buys at any time this stock is available at 9.00 or less, long term hold.
Banking
Wells Fargo & Co. New Symbol: WFC
Rationale: The best and brightest in the banking industry. We recently played calls on this for 50% to 64% profits.
We often watch this position for put and call, around the sector.
