I'm looking at what's cheap and attractive (with a potential catalyst) on the Buy List:
Gold prices may go up.
IBM wants to move more to the cloud, these guys are already there.
China and Japan trying to restart their economies, Europe getting in on the act and, as Ned Stark says: "Winter is coming."
I suppose I'd want to own the stock and, after they spin off PayPal - I'd dump the Ebay and keep the Paypal - that's like participating in a PayPal IPO.
These guys are 10% gold, 40% oil and gas, 5% refining and 45% copper. Their attempt to diversify over the past few years essentially led them to buy a lot of assets at the top and now they are getting hit on all fronts. Earnings are 10/28 and I'm hoping they miss and get an irrational sell-off from here - but they are getting interesting as a LONG-TERM hold below $30.
GSK is accidentally paying a 6% dividend at $2.59 with the stock down to $43.47. They are a good, solid long-term hold and I'd do a buy/write on them, buying the stock for $43.47 and selling the 2017 $40 calls for $4.75 and the $35 puts at $3 for net $35.72/37.86 so the worst case is you are assigned 2x at $37.86 (13% off) and knock another $5 off for 2 years worth of dividends while you wait. If you get called away on the 1x entry, you get $5 in dividends and $40 cash for $45 back on $35.72 between now and Jan 2017, which is a very respectable 26% back on your cash and over 50% return on margin. Let's put 5 of these in the Income Portfolio and this will be our first official Top Trade Alert!
If there is any sort of housing stimulus, they will fly.
