UUP Option Trade
UUP ended the week at $21.67. The Jan 24 $21.50 call option bid price is now $0.18. That is a drop of $0.08 from last week. The option trade will continue as there is still a probability that the price of the ETF will rise due to upcoming economic reports being released in the next two weeks.
KDK Stock Fund
The plan is to make a purchase next week. The Fund will be purchasing shares of the Realty ETF Realty Income Corp.. The symbol for this ETF is O. Currently, the price of O is $38.50. Reasons for the trade include a monthly dividend and decent current valuation.
Other stocks on the future purchase list include Starbucks, Verizon, Ford, and Costco. KDK is always looking investment ideas. KDK Fund can be reached at kdkfund@gmail.com.
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing.**
Showing posts with label Costco. Show all posts
Showing posts with label Costco. Show all posts
Saturday, January 11, 2014
Saturday, December 7, 2013
KDK Weekly Report (IAU Put Trade and More) 12/7
KDK Fund once a week will write about the week's performance, the thoughts on the future trades, and other financial information thought to be relevant to the account.
- IAU December $12.00 Put Trade - During the week, IAU dropped from a close of $12.13 last Friday to a close of $11.93 this Friday. The put price stayed the same at $0.20. There was positive news on the economic, employment, and manufacturing numbers that were instrumental in this week's drop. The likelihood of the drop continuing is high as the Federal Reserve meets on the 17th and 18th of December to discuss the possibility of tapering the $85 billion monthly QE. Gold is nearing the yearly low. There has not been a large volume day to indicate that a bottom has been reached. Technicals and fundamentals are suggesting a continuation of the down trend. There is still quite a bit of interest in the trade as the time value is higher than expected. Positives for gold include buying pressure from China. KDK Fund will continue with the trade as it is. The goal is still $1.00 for the put. The trade will end by December 20. The initial post of this trade can be found here.
- The fund is gearing up to make its first trade of 2014. It will be made in either the first or second week of January. The plan is to buy Verizon, Ford, Google, United Healthcare, and Costco (not order specific) during the year.
** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**
- IAU December $12.00 Put Trade - During the week, IAU dropped from a close of $12.13 last Friday to a close of $11.93 this Friday. The put price stayed the same at $0.20. There was positive news on the economic, employment, and manufacturing numbers that were instrumental in this week's drop. The likelihood of the drop continuing is high as the Federal Reserve meets on the 17th and 18th of December to discuss the possibility of tapering the $85 billion monthly QE. Gold is nearing the yearly low. There has not been a large volume day to indicate that a bottom has been reached. Technicals and fundamentals are suggesting a continuation of the down trend. There is still quite a bit of interest in the trade as the time value is higher than expected. Positives for gold include buying pressure from China. KDK Fund will continue with the trade as it is. The goal is still $1.00 for the put. The trade will end by December 20. The initial post of this trade can be found here.
- The fund is gearing up to make its first trade of 2014. It will be made in either the first or second week of January. The plan is to buy Verizon, Ford, Google, United Healthcare, and Costco (not order specific) during the year.
** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**
Thursday, November 14, 2013
Thanksgiving Gives A Peek Into Corporate Ethos (Walmart, Costco)
There are some stores that are now opening during Thanksgiving. Wal-mart is one of these stores. Costco, one of the KDK Fund's planned purchases for 2014, is not. The focus of this article is going to be on why these actions are happening including revenue generation needs by the companies, wage needs by the employees, and profit needs by investors. It is also important to note that in reality, finding a deal and shopping is far more appealing that spending time with family and friends for a large segment of the American population.
The need for more revenue in this economic environment is taking on a new paranoia for some companies. Wal-mart is one of these companies. The recent quarter showed a slowing of growth and the guidance was not good. Needing to be open on Thanksgiving is essential for the company to increase revenue. In comparison, Costco's revenues have been steady. Even as they know they might be missing out on some sales revenue, it won't affect their guidance for the quarter. This level of leadership shown is important in running the company. Employees, customers, and investors know that they are getting a satisfactory level of performance without having to open on Thanksgiving.
Employee wage needs are high in places like Wal-mart. Because the average associate wage is low, working on Thanksgiving affords the employee to pick up some extra hours and some extra wages. With the holiday season upon them, the employees of Wal-mart know all to well the stress of needing to get extra hours to pay for extras like gifts. This need for more wages is something that Wal-mart is banking on when staffing stores open on Thanksgiving. Most employees literally cannot say no to working on Thanksgiving. Conversely, because Costco's associate wage level is higher, the need for stores to be open so employees can make more money is lessened. This way, Costco can continue to execute their business plan as well as take time off during the Thanksgiving holiday.
Investors (you and I) are hungry for more profits. Because of this demand that we put on businesses, some have decided to be open on Thanksgiving. Wal-mart's decision to be open on Thanksgiving has been given an endorsement by investors as there has been no negative reaction within the markets. Staying open on Thanksgiving will help meet investor demands for meeting profit expectations. There are pension funds, 401K funds, other retirement funds, and other investment capital that are depending on Wal-mart to be open on Thanksgiving in order to make profit numbers. On the flip side, because Costco's business plan is clear as to profit expectations, investors are regularly satisfied with the numbers both on the revenue side and profit side. It is interesting to see how the same stakeholders do not demand the same action from Costco as they do from Wal-mart.
When Thanksgiving comes, understand that stores that are open and stores that are not open are simply projecting their business ethos. It is a peek into what drives the decision making process at these particular companies. The combination of need for more revenue, wages, and profits drives companies like Walmart to be open on Thanksgiving. It is their business model and ethos and can be considered accepted and approved by all the stakeholders (management, employees, and investors) in the company. For now, Costco's business model and ethos allows it to stay closed on Thanksgiving. The company should still make their numbers, the employees still get the day off with enough wage earnings to enjoy the day, and investors can still feel confident that profits will be solid. That ability to execute on all three levels is admirable. Managers, employees, and investors who value the meaning behind Thanksgiving should be thankful for companies like Costco and question exactly what is going on at companies like Walmart that being open on Thanksgiving is more of a necessity for management, employees, and investors than anything else.
** KDK Fund does not have any current relationship with any of the companies mentioned in this article. It does plan to purchase shares of Costco in 2014. **
The need for more revenue in this economic environment is taking on a new paranoia for some companies. Wal-mart is one of these companies. The recent quarter showed a slowing of growth and the guidance was not good. Needing to be open on Thanksgiving is essential for the company to increase revenue. In comparison, Costco's revenues have been steady. Even as they know they might be missing out on some sales revenue, it won't affect their guidance for the quarter. This level of leadership shown is important in running the company. Employees, customers, and investors know that they are getting a satisfactory level of performance without having to open on Thanksgiving.
Employee wage needs are high in places like Wal-mart. Because the average associate wage is low, working on Thanksgiving affords the employee to pick up some extra hours and some extra wages. With the holiday season upon them, the employees of Wal-mart know all to well the stress of needing to get extra hours to pay for extras like gifts. This need for more wages is something that Wal-mart is banking on when staffing stores open on Thanksgiving. Most employees literally cannot say no to working on Thanksgiving. Conversely, because Costco's associate wage level is higher, the need for stores to be open so employees can make more money is lessened. This way, Costco can continue to execute their business plan as well as take time off during the Thanksgiving holiday.
Investors (you and I) are hungry for more profits. Because of this demand that we put on businesses, some have decided to be open on Thanksgiving. Wal-mart's decision to be open on Thanksgiving has been given an endorsement by investors as there has been no negative reaction within the markets. Staying open on Thanksgiving will help meet investor demands for meeting profit expectations. There are pension funds, 401K funds, other retirement funds, and other investment capital that are depending on Wal-mart to be open on Thanksgiving in order to make profit numbers. On the flip side, because Costco's business plan is clear as to profit expectations, investors are regularly satisfied with the numbers both on the revenue side and profit side. It is interesting to see how the same stakeholders do not demand the same action from Costco as they do from Wal-mart.
When Thanksgiving comes, understand that stores that are open and stores that are not open are simply projecting their business ethos. It is a peek into what drives the decision making process at these particular companies. The combination of need for more revenue, wages, and profits drives companies like Walmart to be open on Thanksgiving. It is their business model and ethos and can be considered accepted and approved by all the stakeholders (management, employees, and investors) in the company. For now, Costco's business model and ethos allows it to stay closed on Thanksgiving. The company should still make their numbers, the employees still get the day off with enough wage earnings to enjoy the day, and investors can still feel confident that profits will be solid. That ability to execute on all three levels is admirable. Managers, employees, and investors who value the meaning behind Thanksgiving should be thankful for companies like Costco and question exactly what is going on at companies like Walmart that being open on Thanksgiving is more of a necessity for management, employees, and investors than anything else.
** KDK Fund does not have any current relationship with any of the companies mentioned in this article. It does plan to purchase shares of Costco in 2014. **
Tuesday, October 29, 2013
Long Term Investments For 2014
Hello all
The fund has spent the last couple of months looking at what to invest in for 2014 and has come away with 5 companies. As of right now, the list includes Ford, Verizon, Costco, Google, and United Healthcare. The feeling is that this group of stocks provide a mix of strong dividend and stock price appreciation.
The fund is looking to invest in Ford primarily for its growth prospects. North American sales are good and Europe seems to be bottoming out. Ford also continues to be led by a very good management team and gives a 2%+ dividend (annual) in the third month of the quarter.
The fund is looking to invest in Verizon because of its leadership in the communications sector. It gives a 4%+ dividend (annual) in the second month of the quarter.
The fund is looking to invest in Costco because of its outstanding leadership and steady stock price growth. Costco gives a 1%+ dividend (annual) on the second month of the quarter.
The fund is looking to invest in Google because of its growth prospects in most of its product areas. Their innovative processes combined with their business plan execution shows a large promise of profit.
The fund is looking to invest in United Healthcare because of its growth prospects. The Affordable Care Act should help with new enrollment. The company gives a 1.5%+ dividend (annual) on the third month of the quarter.
All five of these companies have at least what can be considered strong balance sheets.
The trailing PE ratios are 11 for Ford, 20 for Verizon, 29 for Google, 13 for United Healthcare, and 26 for Costco.
Purchases will begin in January of next year. Purchases and sales of stock will go through Sharebuilder.
The fund has spent the last couple of months looking at what to invest in for 2014 and has come away with 5 companies. As of right now, the list includes Ford, Verizon, Costco, Google, and United Healthcare. The feeling is that this group of stocks provide a mix of strong dividend and stock price appreciation.
The fund is looking to invest in Ford primarily for its growth prospects. North American sales are good and Europe seems to be bottoming out. Ford also continues to be led by a very good management team and gives a 2%+ dividend (annual) in the third month of the quarter.
The fund is looking to invest in Verizon because of its leadership in the communications sector. It gives a 4%+ dividend (annual) in the second month of the quarter.
The fund is looking to invest in Costco because of its outstanding leadership and steady stock price growth. Costco gives a 1%+ dividend (annual) on the second month of the quarter.
The fund is looking to invest in Google because of its growth prospects in most of its product areas. Their innovative processes combined with their business plan execution shows a large promise of profit.
The fund is looking to invest in United Healthcare because of its growth prospects. The Affordable Care Act should help with new enrollment. The company gives a 1.5%+ dividend (annual) on the third month of the quarter.
All five of these companies have at least what can be considered strong balance sheets.
The trailing PE ratios are 11 for Ford, 20 for Verizon, 29 for Google, 13 for United Healthcare, and 26 for Costco.
Purchases will begin in January of next year. Purchases and sales of stock will go through Sharebuilder.
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