On Friday, surprisingly weak earnings from General Electric (GE) - Get General Electric Company Report set the tone and led U.S. stocks way south. GE posted an unexpected 6% drop in first-quarter profit, a huge shock considering this is the one company that always seem to beat the number.
Checking out some market news today,
( NWA) could announce a merger as soon as tomorrow that would create one of the world's largest airlines. Pilot contract issues could hold back the merger. The boards of both companies have been meeting around the clock to settle issues standing in the way of the merger. In other news
( BBI) has bid to buy
for $1.35 billion. That deal would create an $18 billion dollar global retail company and substantially improve the financial outlook of the two companies. Meanwhile, European stocks went down for the fifth session in a row, which will only add more fear to the investors at home. If the market get any kind of bounce this morning I strongly recommend to those of you who were able to do some bottom fishing to sell on strength, early and often.
Today's pick is
After closing Friday at $38.51, the stock is trading well off its 52-week high of just about $48. Its low point in the last year is $33.01, so the stock has held up relatively well, and I like their CEO, Mr. Andrew Liveris, he is a gamer.
I am placing an order to buy 10 contracts of the September $30.00 DITM calls (DOWIF) for $8.60, or better.
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."