juiced markets with a half-point rate cut, stocks are once again on the move up. This has led to increasing premiums on deep in-the-money options.
As a result, we must, as always, remain patient and wait for our orders to reach us. The investors who jump the gun rather than wait for the right time are the ones who lose money.
Additionally, with President Bush and Congress promising help for housing, that sector should become more stable as time goes on. This makes for an excellent opportunity to invest in
), which is one of the leading home-improvement retailers. Lowe's is trading 10% below the 52-week high it set back in late February. The company operates 1,385 stores in the U.S., and on Wednesday it set the opening date for its first store in Canada.
I have often touched on the fact that companies with revenue streams outside of the U.S. have seen the benefits of the struggling dollar on their balance sheets. With the interest rate cut and the ever-growing budget deficit, the dollar's weakness will continue.
As a result, the benefits from foreign earnings will continue to increase. Although Lowe's will not necessarily reap these benefits instantly, the potential for a new foreign revenue stream increases my confidence in this already outstanding company.
Furthermore, the company reported outstanding second-quarter earnings with growth coming in at 9%. Lowe's managed to increase its market share during the quarter, helping boost its stock in spite of the struggling housing market. Its largest rival,
, saw its profit slip 15% for its second quarter.
This tells me that Lowe's market strength makes it an excellent purchase in spite of the housing market. The company's brand strength has been an exceptional catalyst for increased earnings. The stock closed at $31.92 Wednesday, and I will take part in Lowe's growth by placing a limit order for the 10 April 25s (LOWDE) at $7.80 or better.
Game of Life
With 10 or 11 games left in the regular season, the American League playoff participants have essentially been determined. The Angels will win the AL West, and the Indians will win the AL Central. The Tigers, last year's AL representative in the World Series, faded badly over the past several weeks, such that they will be working on their golf handicaps early this year.
The best record in the AL is still up for grabs, and, amazingly, the outcome of the AL East is suddenly in doubt. The Yankees have closed to within 1.5 games of the Red Sox, who have struggled mightily over the past two weeks. Regardless of who emerges on top, the runner-up will claim the wild-card spot.
In the NL East, the Mets have been fading, just as the Phillies have been charging. Despite the Mets' win last night, which halted a five-game losing streak, and the Phils' loss, which ended a six-game winning streak, the Mets' lead is only 2.5 games.
The Cubs enjoy a one-game lead over the Brewers in the NL Central, in a race that may well go down until the last day of the regular season. The Diamondbacks maintain a slim lead over the Padres in the NL West, with the runner-up left to battle the Mets or Phillies for the wild-card spot.
Prior to the advent of Las Vegas and Atlantic City, the premier boxing matches were held in Madison Square Garden in New York. Unequivocally, the Garden was synonymous with the biggest fights in boxing. Sadly, after 82 years as the most storied venue in the annals of pugilism, Madison Square Garden will retire its hallowed boxing ring and donate it to the Boxing Hall of Fame in Canastota, N.Y.
As the NFL enters its third week, the Redskins and Texans are surprisingly 2-0, while the Eagles and Saints are, just as surprisingly, 0-2. The Texans will most likely return to Earth this Sunday, as they entertain Peyton Manning and the defending Super Bowl champion Colts.
Across the world, the U.S. women's soccer team has advanced to the quarterfinals of the Women's World Cup, being held in China, and will play England on Saturday. The U.S. women finished first, in the toughest group of the tournament, which included three of the five top teams in the world. Although they have yet to play their best, the American women remain the favorites to bring home the cup.
A few milestones were reached as the Phoenix Mercury defeated the defending champion Detroit Shock to claim their first WNBA championship. Diana Taurasi, who won three NCAA titles at the University of Connecticut, became only the seventh woman in history to win an NCAA and WNBA championship, along with an Olympic gold medal.
Paul Westhead, the coach of the Mercury, became the first coach in history to win an WNBA title in addition to an NBA title (Westhead was the coach of the 1980 NBA champion Lakers).
The Players Club appreciates the versatility of a Diana Taurasi, who has excelled at the collegiate, professional and Olympic levels. Similarly, Westhead's racehorse style has been successful at the men's collegiate level, the NBA, and now the WNBA, proving that coaching genius can triumph at any level. By guaranteeing recurring cash flow, through our strategic partner, The Players Club endeavors to provide the sustained excellence exhibited by both Taurasi and Westhead.
Always remember: Life is a journey. Enjoy the ride!
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."