Monday, July 7, 2014

Buy High and Sell Higher GLNG



Buy high and sell higher.   I have heard that strategy attributed to Value Line evaluations.  We have a real time example of that strategy.
 

GLNG

Golar National Gas, symbol GLNG is not a stranger to this blog or to my own portfolio.   Today was another opportunity.   The stock was down $1.47 to $58.95.   Buy on this dip and sell a September 20, 2014 $65 call for $3.00 and you have an income machine.    Oh, and by the way, GLNG should pay you their quarterly dividend of $.45 if you still hold it on about September 4, 2014.

GLNG Covered Call



I covered this stock before.  Here are the links.   http://www.themoneymadam.com/2014/06/in-down-market-look-for-covered-calls.html  and http://www.themoneymadam.com/2014/03/two-high-risk-income-stocks-in-lng.html.    Review these and you’ll see why this is an example of buy high and sell higher.

Proceed with caution.

TheMoneyMadam
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Tuesday, July 1, 2014

Dividends & Income Updated 2014 Model Portfolio

Today Rayonier, symbol RYN, a most recent Dividend Machine, completed their spin off of Rayonier Advanced Materials, symbol RYAM.

For every 100 shares of RYN owned, you received 33 shares of RYAM.  I profiled RYN on June 6th (http://www.themoneymadam.com/2014/06/nervous-income-investor-trade-ip-and-ryn.html)and I personally bought on June 6th.    I did not include this event in my analysis because I try to keep my posts limited to applying my Dividend Machine strategy's four stock picking criteria.


When events like this occur in the model portfolios I publish on this blog,  I keep both the original stock and the spin off.   The effect of this RYN spin off on the 2014 Dividend Machine model portfolio is presented in the table below. 



Personally, I find the comparative analysis of VIG, SDY, and 2014 DM's more interesting and I think I am going to write up that analysis.

TheMoneyMadam



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