Thursday, May 8, 2014

High Risk Income - Golar GLOG

This post is about a stock called Gaslog, symbol GLOG.  Gaslog engages in the ownership, operations and management of liquified national gas vessels.

Folks this stock is not a Dividend Machine but it is in the right "space."   Perhaps it will be another Qualcomm.  GLOG's similarities to QCOM and my rationale for buying this stock are described below

Similarities between GLOG and QCOM trades

Both of these stocks show EPS that exceed dividends paid out.   However, their yields are paltry in the 1.75% range.   Covered call income is the similarity I like most.   Over the past three years, I have written about QCOM often with emphasis on total return that includes capital gain, dividend income, and covered call income.   The tables presented below show the fundamentals of GLOG as a stock and a call I sold today.

GLOG Fundamentals


GLOG Covered Call 


This is a high risk investment.   However, if it delivers, income investors will be very happy.