DOW Dupont Chemical: Value play (6% yield)

8 oct. 2019

Graph says all. PE = NMF, they're losing money and stock's been in down channel for quite a while; but the dividend yield at $44 is 6.4%; analyst expectations estimates agree DOW is going to earn more next year in FY 2020 with resizing and trimming, efficiency improvements &tc. Revenue is growing; From $3.4 RPS FY 2019 is expected to go to $4.4 RPS next year and may become profitable again thereafter. Mean target price = $54 based on these estimates. Still paying the >6% dividend; they pay you to wait, and you can sell weekly or monthly calls every month forever. I did a buy-write on just 200 shares/2 Oct calls.

Will add more if we get a full correction; support is around $40, so you can sleep at night holding these over long-term. It's a "Dogs of the Dow" theory value play!

This is not investment advice, just a pretty darn good trade idea IMO; trade at your own risk and consult a certified financial advisor before you plunge in here; GLTA!

8 oct. 2019

Transaction en cours

I'm holding these shares for a long-term play. It's a money machine, paying divs and selling monthly calls. Shares have perhaps 10-15% downside risk but >20-25% upside IMO, R/R is good, and it's a small position!

If it gets down around $40-42 I'll pick up more. Before that happens, my bear spreads will have generated enormous wealth, so I won't cry over a few pips, can hold these for years. Been in business since 1897, not going away anytime soon.

10 oct. 2019

Trade fermée manuellement

Closed all stops out waiting on news. R/R terrible; pure gambling now.
When direction is clear then bet on the trend IMO.