Dykstra: Tough Times Call for Manulife Options

Since 1987, Toronto-based Manulife has bolstered its market-leading role in financial protection and wealth management. Manulife's portfolio of financial products includes life insurance, pensions, mutual funds, annuities, group benefits and long-term care, and its 20,000 employees serve millions of customers in 19 countries and territories around the world.

Manulife is among the most-profitable life insurance companies in North America and was the first Canadian life insurer to top $1.5 billion in earnings. Manulife's financial performance has attracted a strong and diversified shareholder base, earning credit ratings that are among the highest in the industry.

MFC's financials are solid: A forward P/E that comes in at 13.03, return on equity near 16%, revenue totaling $31.43 billion, cash on hand at an impressive $9.75 billion, total debt to equity at a minuscule $0.268 thousand, and, to finish it off, free cash flow of $3.43 billion.

Here is the play: I am going to buy 10 DITM calls going all the way out until January (MFCAF), using the $30 strike; the stock closed Wednesday at $36.87. I will pay $7.60, or better, to control 1,000 shares of Manulife common stock.

The Game of Life

As NFL players endure two-a-days, with full pads and contact, baseball enters the dog days of August, with one-third of the regular season left to play. The Mets maintain a modest lead over the Phillies and Braves in the NL East. The Cubs are leading in the NL Central, with the Cardinals, amazingly, in the hunt. The NL West has to be considered a four-team race, with the Dodgers, Diamondbacks, Padres and Rockies all within three games of one another.

Although it is difficult to count the Yankees out, it appears as though the AL East is Boston's to lose. The Tigers and Indians continue to battle for the top spot in the AL Central, with the Twins still in contention. The Angels and Mariners are the best in the AL West.

« Previous Page

1 2 3

Next Page »