As you all know, most professions have their own language that allows the practitioners to communicate efficiently. Hence, lawyers speak legalese, doctors speak -itisese, computer technicians speak techie jargon, and financial analysts speak of P/E ratios, ROE and ROI. Similarly, baseball players speak of pitchers with filthy stuff, batters who hit ropes or bombs, and outfielders who have a gun.
Unless you follow the game, these words can be quite misleading. Nonetheless, most understand what it means when a pitcher throws some serious gas, and whether or not you know it's coming, serious gas is seriously hard to hit.
Speaking of some serious gas, my pick for today is
, which needless to say possesses some high-octane stuff.
As high volatility continues, it is increasingly important to identify companies that provide some stability. Two factors critical to stability are a strong dividend and an industry with the right conditions to make money.
With a volatile market, a high dividend provides an attractive incentive for investors to select a stock, and BP boasts a strong 4.12% annual dividend. At its present value, the company pays investors almost $2.50 a share to own the company each year. As investors worry about the growth prospects in the U.S. economy, they will continue to move their money into the stocks that can guarantee some return.
In addition to its strong dividend, the price of gasoline continues to rise, providing BP favorable conditions to make money. On Monday, the price of gasoline reached a seven-month high. U.S. gas reserves have fallen since early February and should continue to do so for the coming months.
Although the winter started off relatively mild, the long cold spell, combined with nasty winter weather, has once again helped to lift the price of oil. With summer just around the corner and the driving season about to kick off, the price of gas should continue to rise, providing additional revenue for BP.
All of which makes BP an excellent profit opportunity for investors using deep-in-the-money calls. The strike price for our deep-in-the-money calls will be the July 50s (BPGJ). I will buy 10 of these calls for $10.50 or better. The stock was at $60.10 in early Tuesday trading.
Although the stock price has struggled recently, the factors that triggered the decline should be history. The decline in the price of oil had been a major contributing factor in the decline of BP's stock price. With oil regaining its strength, BP's stock should gain strength as well.
Additionally, BP recently settled a court case dating back to 2005. The company admitted to having an unsafe culture that led to the explosion at one of its Texas refineries. This settlement has created a false sense of negativity toward BP, as the problem had already been priced into the stock. In fact, BP says it has been taking the necessary steps to ensure that safety is of the utmost importance.
Now, let's talk about the game of life and the Players Club.
In life, we often recognize others by matching a name to a face. We always seem to remember the freckle to the right of their nose, the crooked tooth behind full lips, or the sparkle within their hazel eyes. Something always stands out, which creates an image in our mind's eye. In this image game, first impressions mean everything.
We often match accomplishments with their supposed achievers, linking a World Series victory to the pileup at home plate. In life, we rely on appearance to piece together pieces of the puzzle of life. Through these stories, we create everlasting memories, all through the reflection of a face.
Last week, a couple near Denver found a new dollar coin with an identity crisis of its own. Smooth and shiny yet faceless, it somehow escaped several steps of inspection during its production at the U.S. Mint. "In God We Trust" is inscribed on the outer edge of the coin, but both sides are simply metal, with no image of George Washington or the Statue of Liberty, like the other coins produced. The dollar has been coined as "Godless."
Ironically, this outcast is worth more than the rest of those in the dollar-coin society. The seemingly unadorned dollar coin could generate a rare penny's worth of publicity and wealth as coin authenticators have estimated that the "Godless" change could merit thousands of dollars. As we are unable to match this coin with any defined figure, like George Washington, we rely on our own intuition to determine its value. It seems peculiar that the "faulty" money, in fact, rolls in the most dough.
Since when is anonymity cherished in our society?
Perhaps, those who deserve recognition are the unknown behind-the-scenes people who make everything possible. As a professional baseball player with a successful career in the major leagues, I am lucky to have cashed in. I have been in the spotlight, was awarded the riches, and received credit for all of my accomplishments.
These accomplishments extend beyond the realm of RBIs and batting averages. Out of my uniform, I am blessed with an unbelievable group of friends and family who undoubtedly play a large role in my successes. Behind the dirty "Nails" uniform lies a man with an impenetrable base, as strong as iron. While I am credited with earning the dream house, the dream car and the dream life, the reality is that the real achievers remain unrevealed to the spotlight.
The real home run is greater than any hit to the second level in center field -- it sits behind me in the dugout, next to me at work, and in front of me at my dinner table. They are the true riches.
The Players Club appreciates the importance of the story behind the face. Even if those who matter are never exposed to the publicity that professional athletes are, by guaranteeing recurring cash flow, we hope to help athletes "live the life" of riches with the teammates that play the game out of uniform: the game of life.
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 during his Major League Baseball career, Lenny Dykstra was an integral member of the powerful Mets of the mid-1980s, including the world champion 1986 squad, and the Phillies in the early 1990s.
Today, Dykstra manages his own stock portfolio and serves as president of several of his privately held companies, including car washes; a partnership with Castrol in "Team Dykstra" Quick Lube Centers; a state-of-the-art ConocoPhillips fueling facility; a real estate development company; and a new venture to develop several "I Sold It on eBay" stores throughout high-demographic areas of Southern California.