After the Fed makes its big announcement, NLY and HTS should spike higher, and then the "sell on the news" reaction may quickly follow.
If you have a big position in either you might want to take half off the table on the day the good news of MQE breaks with the hope of buying back at least 10% lower.
Drug Stocks and Health Care
If you invested months ago in Big Pharmaceutical companies including
(PFE) you've had a rich and rewarding ride. Look at the chart below that compares Pfizer's multi-year price to its dividend yield.
PFE Dividend Yield data by
Pfizer has had a brilliant strategy of beefing up its product pipeline while unloading whole divisions in spin-offs and public offerings.Under CEO Ian Read, who as of Feb. 24 owns almost 879,000 shares worth nearly $20,500,000 at the Wednesday share price of $23.33, PFE has been doing some "unwinding." The company has systematically sold off some big assets it acquired through mega-mergers, including the 2009 purchase of Wyeth Pharmaceuticals for $68 billion. In April Pfizer agreed to sell its nutrition unit for $11.85 million to Nestle SA NESTLE (NSRGY), a company I believe is undervalued and attractively priced. Then, in the first week of June, Pfizer announced that it's preparing to sell a minority state in its animal-health unit as part of the drug maker's plan to sell assets and sharpen its focus on human drugs. It named the animal-health business Zoetis. PFE plans to make Zoetis a standalone company by July 2013, but first it's working on an initial public offering. So far the IPO date has not been announced. Pfizer's animal-health unit may be valued at between $15 billion and $18 billion when it separates from PFE, according to a recent Nasdaq
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV