Comcast reported earnings Thursday morning with the following good news: Its net income surged 80%. In my
column on Feb. 7, I wrote that I was buying the Comcast July 35 calls (CCQGG) for $8.60 or better. At the time, Brian L. Roberts, Chairman and CEO of Comcast, had said, "2006 was simply our best year ever."
But instead of going up, Comcast's stock was pummeled and then had an uncommon 3-for-2 stock split. The operators then went to work -- and trust me, they really went to work. It was almost unbelievable what happened to a company that had just reported record results.
So I got in the trenches and did my homework so that I would have the proper buy levels when the time came to add to the position. My team decided on the next buy levels, so that I was in position to bring my overall cost down by buying at technically sound levels.
Between those additional buys and the 3-for-2 split, I now control 4,500 shares, and there is a very good chance that I, and others who hung in there, will get filled off of today's open. I am estimating at least a $5,000 win, because I followed the rules.
Also, look for Halliburton to open higher as well. King Hal blew away the number too!
Now that Comcast and Halliburton are out of the way, it's time to focus on a new deep-in-the-money, or DITM, play for today --
. Amdocs provides software and services solutions to companies throughout the world to move them toward integrated customer management. On Friday, April 20, Amdocs announced a seven-year contract with
to manage its consumer wire line wholesale business. On April 23, Robert W. Baird upgraded Amdocs, citing the AT&T deal as a source for $50 million in new annual revenue.
Amdocs, which closed at $36.94 Wednesday, reports earnings after the close today. While the AT&T deal will not be reflected in this report, look for Amdocs to post strong results. In January, Amdocs lowered its guidance for 2007, but I believe the company is in a strong position to beat its expected earnings this quarter.
Many companies took a cautious approach in providing guidance for this coming quarter, as many were unsure of the direction of the broader economy. But the slew of positive earnings data show that the cautious guidance has given way to strong results.
In order to benefit from Amdocs' earnings with DITM calls, I will place a limit order to buy 10 contracts of the October 30 calls (DOXJF) at $7.90 or better. If the stock rises before this buy order hits, it is important to exercise restraint as an investor and not chase the stock.
Game of Life
Baseball continues to march through April with little change in the standings. The Mets and Braves continue to battle for the top spot in the NL East, with the rest of the division below .500. The Brewers have created a little cushion in the NL Central, while the Dodgers and Padres are atop the NL West.
The Red Sox continue to lead the AL East, and the Yankees dropped into the cellar. The AL Central is a four-team race, with only the Royals seemingly out of touch at this point. The AL West has the A's and Angels ahead of the pack.
Despite the Yankees' swoon, A-Rod has had a remarkable April with 14 homers and 34 RBIs. His 23-game hitting streak, dating back to last season, ended on Tuesday at the hands of the Devil Rays. Nonetheless, with five more days remaining, A-Rod has an opportunity to make this an "April for the ages." Moreover, Rodriguez expressed a strong desire to remain a Yankee, stating, "I love New York. It's the greatest place for me to play."
Meanwhile, on the Western front, word has it that Barry Bonds is playing his best baseball in four to five years as he hones in on Henry Aaron's career home run record of 755.
The NBA playoffs have begun with the Bulls taking the first two games from the Heat, thereby creating the possibility that last year's champs will be eliminated in the first round. The NHL playoffs have moved onto the second round, as evidence by more prominent facial hair on the survivors.
In women's golf, the proverbial passing of the torch has officially transpired. Lorena Ochoa has supplanted Annika Sorenstam at the top of the women's world rankings. Sorenstam, beset with injuries, has been the world's No. 1 female golfer for several years. On the men's side, in a tantalizing twist of fate, Phil Mickelson will tee off today in the Byron Nelson Championship under the tutelage of Butch Harmon. Yes, Tiger's former coach, Butch Harmon, has been entrusted to resurrect Phil's game, which has fallen upon "rough" times lately, particularly in light of the fact that he ranks 131st on the PGA tour in driving accuracy.
Of course, the event that takes center stage this weekend in the world of sports is the much-anticipated, forever-hyped NFL draft. ESPN will devote a large chunk of the weekend to covering every pick as it occurs in real time. The pundits will pontificate between picks as to what the next team's needs are regarding players. They will argue about needs vs. best player available. Notably, Mel Keiper Jr. will relay his knowledge about every player who donned a uniform in college football this past year.
Undoubtedly, there will be significant discussion about football skills vs. character, especially in light of Commissioner Roger Goodell's recent crackdown on misbehaving. The Players Club encourages appropriate behavior both on and off the field. We believe that with guaranteed recurring cash flow through our strategic partner, the athlete is laying the appropriate foundation for himself or herself, as well as their families.
Always remember: Life is a journey, enjoy the ride!
At the time of publication, Dykstra was long HAL, DOX.
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.