Rocky’s Weekly Stock Picks

Have you finished preparing your tax return yet? Have you also been investing alongside us since late 2020?

If so, then you may owe the IRS a payment. The only reasonable response here is to buy stocks, obviously. Let’s check our screeners and see if we like any of the names we find. As we know, a great name far outweighs fundamentals.

1. CMC - $43.55 a share, ex-div on Tuesday, annualized return of over 1.38%. While this at first glance may seem entirely unreasonable, we feel that it’s not. Commercial Metals Company is involved with, among other things, the fabrication of steel.
   
   Steel is already a no-brainer, even before things like inflation or steel shortages. The dividend doesn’t particularly matter to us, though it’s nice to have. We anticipate, over the next several years, to be quite content with our shares we purchase Monday morning.

2. SNDL - $0.77 a share, options trade weekly. Which is important, because that’s the only exposure we want to this. If the price gets back to hovering at $1, we might be able to get 5-10% a week.

   
   We aren’t picking this because we like weed stocks. As a matter of fact, we strongly recommend against buying into cannabis stocks in general. They are appropriate for someone, somewhere…maybe….but not for you. Not for us. That said, it’d be hard to miss the price surge across all the marijuana stocks. Options on Tillray, for example, are looking like a potential 13%+ for ATM calls. ACB, similarly, has surged in price and volatility.
   

   We’re going to be tempted, or have a few dollars leftover for a spread or two. Might as well minimize our risk and capital investment with Sundial Growers. Check our boxes and move on.
   

3. SYY - $80.91/share, ex-div Thursday. 2.34% yield. Good things come from Sysco…but not the dividend. That part isn’t good. …. deja vu.
   
   Options trade weekly.
   
   We’re really pleased to see Sysco maintaining the $80 mark, indicating that the stock is behaving precisely as we have anticipated. No need for a dissertation here, as our studies have conclusively shown that humans continue to eat food.

4. OP - 6.9% annualized dividend, ex-div Thursday, 3/31. OceanPal Inc. is headquartered in Athens, Greece. Share price is showing at $0.72. …. It’s first dividend payment is $0.05.

   
   We saw this, almost immediately said “No”, and then just decided it might be tolerable to throw a Hail Mary. We haven’t checked on options for this security, and won’t, until tomorrow.

5. SJT - $8.47 a share, ex-div Wednesday, 13.5% annualized return. This is basically natural resource money out of the San Juan basin. Our expectation isn’t that the dividend will decrease, but rather, will stay the same as the share price increases.
   
   We make this assessment based on wishful thinking and wanting it to happen. But…it still is pretty possible, and maybe a little bit likely.