More Dividend Trading/Investing (GGN TNK)

Are you scared to put your money back into the market with full-force.  Can't say I blame you.  As we just received our quarterly dividend from TNK this week I thought I'd introduce you to another dividend play.  Gabelli Global Gold, Natural Res &Income (GGN) This one is a for income purposes.  It pays .14/share every month.  Currently trading at 18.39, it was available around 8 and some change in 2008.  Why does this matter, the math is simple and obvious but when you break it out to monthly payments it becomes one of those ah-ha moments. 

Would 1500 or 800 a month extra income be better?  If you put a 100k in today you would receive 761/month in dividend income (taxable at 15%), if you picked it up in 2008 you would be receiving 1581/month and have 207K in your account (Taxable as a long-term holding).

As I said this is simple month and some hind-sight.  By the way GGN has paid .14/month since 2005.

So why do I show this example, TNK is at the same point, trading in the low 8s last week, now back to almost 9 with a high of just over 20 and a consistent support average of around 11.50.

Yes, riskier given it is dry-bulk shipping and you are at the mercy of spot-rates and countries desires to ship goods across the globe, but the dividend is almost 4.5% higher and we are at historically low levels.

Of Course if you put that 100k into Crox in 2008, yes we researched and discussed the potential for it to grow, especially given it's global interest.  You would have been able to pick shares up for about a buck and holding till today you could have sold for aroudn 28...  Yes, we have watched, researched and recommend several of these to inlcude F, LCC, FAS and FAZ, ATSG, ACTC.OB, ITMN (X2), GMCR... etc.. etc.. etc..

Now, we are probably past the times of long trade triples, 10X etc... but Options Trades certainly get us close and putting that hard-earned cash into dividend income equities is our new strategy to wealth.
Happy Trading...

Where the world is going and some old cyclicals + LNKD

Just some ideas to be paying attention too.

So, with the economy starting to pick up steam in the wrong direction, housing stalling and falling and food and general commodities rising where should we be looking...

We are looking back at our agriculturals, namely Potasth (POT) and Intrepid (IPI) both off there 52-week highs but holding strong, haven't pulled the technicals but I am betting they are holding there 50 and 200 day MA well...

Solar has been performing steadily as well (SOL, SOLR, FSLR).  Demand is still there for alternative energy, especially given the future of oil prices...

Look at the Diamonds, Q's and some SPYders to capture some short term gains either way depending on news.

Shorting LinkedIn (LNKD) worked as it's down about 40 bucks from the high and over 10 from our trades...  Close out the puts now as there is bound to be enough volatility to hurt you, unless you are trading intraday.

Happy Trading...

Green Mountain Coffee (GMCR)

GMCR up alomost 300% since discussed in Dec...  Technicals are indicating overbought but wouldn't be trading now at this level!

SODA is following but still not sure on that one, need to watch for some possbile Short Trades, sell some CALLS or buy some PUTS.

Happy Trading...

TNK down to new 52-wk low

Buy now!

Frontline reported poorly and is taking measure to divest itself as it faces prolonged recovery.  FRO use to be a top dividend producer and has gotten schwacked.  But FRO is not TNK.  TNK today has a13% dividend, you won't be able to lock in that kind of return in the future.

FRO downgraded has influenced the dry bulk shippers.

10 Calls in the front months is where the open interest is with about 50% PUT action...

Layer in starting now and have a steady income stream in the future...

Happy Trading

New Options Listed

We haven't talked about supporting sites in a while so here is the link to newly listed options from the Chicago Board Options Exchange (CBOE).  I recommend exploring the site, as I always say there is more than enough sites and people that are willing to sell you publically available information.  This site along with our options tab have more than enough info than you will ever need.

http://www.cboe.com/framed/PDFframed.aspx?content=/publish/TTNewLS/11-334.pdf&section=SEC_RESOURCES&title=CBOE%20-%20CBOE

Dividends! (TNK)

Teekay announced a dividend increase from .22 to .25 today payable on 27 may to shareholders of record on 20 May 2011.  This equals about a 13% return on my cost basis.  Not too bad for holding onto a stock.

Green Mountain (GMCR) has pushed to $75 and SODA is pushing $45. 

Happy Trading...

Green Mountain is Unstoppable!!!

From Schaeffers Research:
Shares of GMCR are trading fractionally lower this morning, despite a generous price-target hike to $97 from $65 at Canaccord Genuity. The brokerage firm also reiterated a "buy" rating on the Vermont-based beverage concern -- but if the shares aren't showing much response to this bullish note, it's likely because they're due to consolidate some gains. GMCR gapped higher last week after a well-received earnings report, and now sports a borderline-overbought Relative Strength Index (RSI) of 68. 

http://www.schaeffersresearch.com/commentary/content/upgrades+downgrades+anf+ccj+do+gmcr+and+sndk/trading_floor_blog.aspx?single=true&blogid=106211

GMCR is 77 in the after-hours, quite a bit higher from the 27 we were picking it up on the SEC investigation news!

Happy Trading...

Citi to Triple by 2013

Wouldn't that be awesome for our 4.50 Jan 2013 Calls!!!!!!  What's the call... the 4.50's are cheap, keep picking them up!  Remember the 10 for 1 stock split takes effect tomorrow.  Don't think you are now 450% richer than you were Friday!

Here is the coverage from CNBC...

http://www.cnbc.com/id/42937720

Happy Trading...