Rocky’s Weekly Stock Picks
This is a great week coming up. We’re rocking all sorts of debt spreads on CCXI, anticipating price to stay in the $15-20 range.
Option spreads, however, aren’t exactly an investment. LEAPS, maybe, could be considered a type of short-term investment vehicle. Without further ado, on to this week’s picks.
RIOT - We should have bought in when it hit $25, now it’s back to $27. That’s still way below our $40 max on RIOT share price. We’re not really sure what to expect, other than the price moving up. Which will be great for options IV.
PFLT - Upcoming ex-div on the 16th. We’re buying this week, however, because by next week we simply won’t care anymore. Then the cycle of disappointment will begin anew. (This equity generates a monthly interest payment). 8.8% annual return.
ET - Energy Transfer isn’t a bit south of the price we’d prefer to hold it at, but that’s just fine. Natural gas prices are allegedly skyrocketing worldwide. If true, Energy Transfer is going to benefit mildly; otherwise it’ll be safe from any unusually large moves in price.
The reasoning here is that since information in the news rarely has a lasting impact on stock prices, or even always a noticeable one. ET doesn’t really move much, regardless of what’s going on. It just keeps chugging along.EDF - Ex-div on Friday. $7.44 a share. $0.07/share dividend. This has come down over the last year, sadly. However, it’s still close to a 1% return, so something like 9.5% return annually. If the price goes much below $7, we’re going to start thinking about an exit from this fund. Not counting on that to happen, though.
FATBP - Preferred shares trading at $23.65, annual return of 8.8%. We wanted to get exposure to the restaurant industry during this time of the year.
Darden was the first choice, DRI, but we found it to be unpalatable. Not even the price at $155 per share. What we dislike is that its price history looks like a cookie-cutter ETF…. it follows the market.
