Omakase

Wednesday, February 08, 2006

Five Cheap Companies that Create Value: Financial News - Yahoo! Finance

Another plug for JNJ, which I bought yesterday @ $57. (Happily, it's already up >$1.)

I also went and bought 2x Jan08 JNJ LEAPS @ $60, at a cost of $6.10 (-WJNAL).

Basically, I'm betting that JNJ will appreciate at greater than 6.6% per year for the next 2 years. If so, I win big. For instance, if JNJ hits the $76 target mentioned in my previous post, I'd nail a 167% return (vs. 33% for a regular long position (plus dividends.))

However, because LEAPs (and all options) are really just volatility plays, I'm also thinking about using this LEAP purchase to profit from the short term upward run for JNJ that I know if gonna happen sometime this year. If that's the case, I can sell the LEAP for a gain. Already since buying this morning, the JNJ LEAP has appreciated by 5% because of the ~2.5% rise in the price of JNJ.

Five Cheap Companies that Create Value: Financial News - Yahoo! Finance

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With my new friends on the Great Wall of China

With my new friends on the Great Wall of China
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Uncommon Man's Creed

"I do not choose to be a common man. It is my right to be uncommon -- if I can. I seek opportunity -- not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I wish to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole, I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence, nor my dignity for a handout. I will never cower before any master, nor bend to any threat. It is my heritage to stand erect, proud, and unafraid, to think and act for myself, to enjoy the benefit of my creations, and to face the world boldly and say, "this I have done." All this is what it means to be an American." -- Anonymous