Rocky’s Weekly Stock Picks
This week we want to look towards recent events and position ourselves to profit.
While generally the news cycle is entirely meaningless, we can assume there’s about to be a strong demand for new housing construction over a wide geographic area.
Ka-ching!
AG - $6.46/share, 0.28% yield, options trade weekly. We saw a spike in share price this morning and capitalized on the opportunity to sell calls at a juicy premium.
Even better, we’re holding stock that we acquired through a Put assignment. A glorious wheel.
We’re all about buying this stock under $7. Oh, it’s silver. They do silver stuff. In Mexico (from Canada).AGNC - $10.25/share, 13.96% yield, options trade weekly. This is a REIT we hadn’t previously noticed before. We’re taking a risk-averse approach and not buying a lot.
While it does seem to be a pretty standard REIT, with a lot of money in government-backed mortgage securities, we do see a decades-long downward trend.
This security appears to have hit the market in 2007 or 2008, with a huge spike around 2012, and it’s been trending down ever since. We’re not too worried overall, but we generally like to see price preservation, if not appreciation, so as to have an easy exit strategy.WOOD - $85.42/share, 1.45% yield. This ETF is isShares Global Timber and Forestry. We don't expect any great increase in share price, but timber in general is always a solid resource to have our hands in. Distributions paid annually.
LPX - $105.52/share, 0.975% yield paid quarterly, options trade monthly. This security shows consistent price appreciation. Here’s a partial copy/paste from Fidelity regarding this company.
Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets.
It goes on in greater detail, specifying all the house stuff they make. As far as we’re concerned, they make house stuff. Yaayy, building homes, yaayy!
Long-term blue chip with a predictable short-term price gain. Hard Buy.BMI - $221.36/share, 0.62% yield paid quarterly, options trade monthly.
This company is involved in water infrastructure, but not so much piping, pumps, and towers. Instead, they focus on instrumentation such as valves and meters. They also have some segment that offers a form of cellular technology, for (we think) radio communications at the infrastructure level. Obviously very important to be able to monitor your water networks during consumer power/telecom outages.
Here’s a portion of the copy/paste from Fidelity.
The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system…
It doesn’t get much more blue chip than this, folks. And if $220 a share is a bit much, just buy fractional. Even $1, though it may feel insignificant, is still $1 more invested than you had previously!
