Investment Idea Sharing – August 30, 2014: 

See below for my personal stock market Buys or Sells this week:

Sell Stock: CHL

Sell Covered Call: NOK

Sell Cash Secured PUT: GES

  

Last week, the world market indices were all pretty flat except Russia was down 6% due to the continued unrest in Ukraine. Brazil’s Bovespa index was up 4% this week and up 19% for all of 2014.  But the Bovespa index changed their company weighting rules in April, so some of this meteoric rise appears to be due to book keeping changes and not the underlying prices of the companies on the index. See story here: https://finance.yahoo.com/news/brazil-bourse-previews-bovespa-index-154100964.html 

The Dow Jones 30 Industrials and S&P 500 are still close to their all time highs. 

Here is an informative article I enjoyed about Charles Dow, founder of The Wall Street Journal and the Dow Jones Industrial average.  https://www.fidelity.com/viewpoints/active-trader/dow-days-of-summer?ccsource=email_monthly

I continue to look for stocks that have good fundamental financial values, but stock prices near 52 week lows.

Summary Table of Worldwide Market Index Closing values for this week:

 http://www.ultimatestockfinder.com/weekly_index_summary.GIF

Next Monthly Meeting 2^nd Tuesday of Each Month:

No meeting for September. 

Here are my Stock BUYs for This Week:

Stock Symbol:

Buy Date:

Buy Price:

Target Sell Price:

Here are my Stock SELLs for This Week:

Stock Symbol: CHL

Sell Date:  August 25, 2014

Sell Price:  $61

Buy Price:  $44.50

Buy Date:  March 19, 2014

China Mobile (CHL). In March this year, all 3 of the big Chinese phone providers (CHL, CHA, CHU) hit new 5 year lows due to a proposed change in the Chinese value added tax (VAT) that would negatively affect costs for phone service providers.  All 3 had good fundamental values and paid around a 3% dividend.  I decided I should buy one of them, and CHL looked the best to me at that time.  Since then, the VAT thing has blown over and all 3 came back very nicely. 

When CHL got back up in price to be a 35% gain for me, I decided to “Not Get Greedy” and so I sold it.

See chart showing 1 year stock prices for these 3 companies: https://finance.yahoo.com/echarts?s=CHL+Interactive#symbol=chl;range=1y;compare=cha+chu;indicator=rsi+volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

Here are my Mutual Fund BUYs for This Week:

Fund Symbol:

Buy Date: 

Buy Price: 

Target Sell Price:

Here are my Option (CALL or PUT) Sells/Buys for This Week:

Option:  Cash Secured PUT

Stock Symbol: GES

Sell to Open Date: 8/28/2014

Expiration Date: March 2015

Strike Price: $23

Option Price: $2.10

Guess (GES) reported quarterly earnings below Wall Street estimates and also a 4.8% decline in revenues.  Read story here: http://www.thestreet.com/story/12860235/1/why-guess-ges-stock-is-slumping-today.html?puc=yahoo&cm_ven=YAHOO

GES has good fundamental values, and sorts to the top of the Retail group of stocks in Stock Evaluator when I do a Ctrl-N “Sort on Red Cell count Within Industry”.  I found that the March 2015 PUT at Strike of $23 was selling for $2.10 which is an 8% return to me over about 8 months, so I sold this PUT.

See 5 year chart for GES:

https://finance.yahoo.com/echarts?s=GES+Interactive#symbol=ges;range=5y;compare=;indicator=rsi+volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

Option:  Covered CALL

Stock Symbol: NOK

Sell to Open Date: 8/29/2014

Expiration Date: April 2015

Strike Price: $9

Option Price: $.50

Nokia (NOK), I originally bought NOK in March 2011 at $8.50, and since then it went lower than $2 / share in July 2012 due to all the problems in their phone business.  NOK announced the proposed sale of their phone handset business to Microsoft in September 2013, and since then, NOK stock has been slowly recovering.  The sale finalized in April 2014.

See 5 Year chart for NOK:

https://finance.yahoo.com/echarts?s=NOK+Interactive#symbol=nok;range=5y;compare=;indicator=rsi+volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

Visit www.ultimatestockfinder.com to download our Stock Evaluator and Mutual Fund Evaluator spreadsheets, read training articles and check out all our web links for investing information.

StockEvaluator ‘Short List’

Download ‘Short List’ here: http://www.ultimatestockfinder.com/stockevaluator_short_list.xls

‘Short List’ screens using 12 fundamental value limits that I want to see in a stock before considering it as a possible buy. 

View our training video that shows how to enter your preferred values for each of these ‘Short List’ screening limits:

https://www.youtube.com/watch?v=FAwU48oEkJU

View the Stock Evaluator ‘Short List’ screening criteria and target limit values here: http://www.ultimatestockfinder.com/short_list_12_criteria.JPG

Mutual Fund Evaluator ‘Short List’

Download ‘Short List’ here: http://www.ultimatestockfinder.com/mutualfundevaluator_short_list.xls

View the Mutual Fund Evaluator ‘Short List’ screening criteria and target limit values here:

http://www.ultimatestockfinder.com/mutualfund_short_list_criteria.JPG

Please remember to send me any other investing ideas, information or questions that you want to share with the group.

Thanks,

John D.

Disclosure: The author has no positions in any of the stocks or mutual funds mentioned in this article unless clearly stated above. We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article.  Please see our full legal disclaimer at:  http://www.ultimatestockfinder.com/stockevaluator_disclaimer.html

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