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XRX redux redux

Recs

8

January 27, 2014 – Comments (9) | RELATED TICKERS: IGN , O , RE

Xerox took a hit today based on anylist downgrades.  Ignore them.  They weren't there for the rise and won't be there again.  Expected eps in 2014 is $1.16.  So basically the stock is currently selling for less than a 10 PE with a yield 2.5ish.  This is the time to take advantage of the pullbacks.  It is a slow but steady stock, something that works well as a core holding. The thesis is still in place with the major stock buyback program.  Also sell those January $12 2016 puts.

Buy AAPL too.  Buy when they sell.  And they are selling despite the fact that its earnings increased.

Just ignore the pundits and you will make money.

9 Comments – Post Your Own

#1) On January 27, 2014 at 10:45 PM, jiltin (30.12) wrote:

It looks like a good opportunity, but I am skeptical or kind of wait and watch.

I am not bothered about AAPL, but concerned about what FED is going to do.

All the market makers/breakers are finding some reason to shed away the stocks, but they are all concerned about "Gone are those easy money day!"

They all aware that money flow is restricted and interest rate hike is imminent.

 

 

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#2) On January 28, 2014 at 8:40 AM, awallejr (79.68) wrote:

Kind of amuses me that for awihile everyone was asking for a correction and then when it happens people panic.  Fed isn't raising funds rate just yet. And with that where else is one to invest? Cash still yields virtually nothing while there are still plenty plays in the market.  Mlps, Bdcs, Reits still work.  Take advantage of the pullback.

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#3) On January 28, 2014 at 9:43 AM, lemoneater (69.98) wrote:

I got some XRX at 9.19 back in June based on your heads up. They are one of my foreys into 3-d printing investing. Also dividend re-investment really adds up quickly on a stock @ the $10 share range.Thanks!

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#4) On January 28, 2014 at 1:48 PM, awallejr (79.68) wrote:

That makes me feel good lemon that someone took advantage of one of my suggestions.  Was starting to wonder if I was benefitting anyone with them.

AINV is another one for people looking for yield.  It is inexpensive and pays over 9% and it isn't volatile which is nice.  I have pushed yield plays in my real-life portfolio and it is nice not to see steep declines on minus 300 point days.

BBEP is another one.  It is a mlp so you get unique tax treatments.  It now pays monthly distributions, and except for that shark scare last summer (which gave people a tremendous buying opportunity as I tried to urge here then) it is a low volatile stock.  

These 3 stocks are not going to double in a year.  They just grind higher paying yields you just can't get in cash.

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#5) On January 28, 2014 at 5:01 PM, lemoneater (69.98) wrote:

Probably more people consider your suggestions than will tell you, awallejr. 

When it comes to BBEP are you talking about a figurative shark or a literal shark? There was a great white shark called Mary Lee that came close to the Carolina coast last year. Co-workers of mine were vacationing in the Isle of Palms at the time. :).

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#6) On January 28, 2014 at 5:25 PM, awallejr (79.68) wrote:

"Shark attack" as in shorts trying to scare people into selling it because they are betting it would go down.  It was really the "short" attack on LINE that happened around July.  BBEP was selling at $20 and then in a ridiculous article someone said it was a $2 stock.  Stock dropped to under $15.  A lot insiders bought  with real money.  Stock is back at over $20 and paying .164 monthly.

Just remember it is a mlp which means you get schedule K-1s and your initial distributions are tax deferred so it really isn't for IRAs.

Here is another link on it:

http://caps.fool.com/Blogs/mlps-buy-buy-buy/844557

 

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#7) On January 28, 2014 at 10:25 PM, jiltin (30.12) wrote:

Kind of amuses me that for awihile everyone was asking for a correction and then when it happens people panic ==> Yes, when correction happens, cash is the king for people like me.

For experienced and risk taking people, shorts and options are the way. It depends on how much risk people want to take and how knowledgeble are. 

I have portfolio based on your suggestion and watching it so far. I started on nov 8th, added AAPL yesterday. I am just learning from your experience.

 

 

 

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#8) On January 29, 2014 at 12:07 AM, Valyooo (99.43) wrote:

Kind of amuses me that for awihile everyone was asking for a correction and then when it happens people panic.

Lol, that's how it always is.

 

I probably will buy AAPL, but there problems are real.   

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#9) On February 02, 2014 at 10:26 PM, awallejr (79.68) wrote:

Jiltin those are 5 nice picks.  Except for AAPL the others are generally low volatile.

And Val, as for AAPL I spent over $1,000 on a stupid app game of theirs.

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