Before I discuss today's pick, I'd like to point out that my deep-in-the-money (DITM) calls on Jabil Circuit (JBL) - Get Report closed for a nice win on Friday. I had 20 December 20 contracts open at an average price of $3.43, so when the option opened on Friday at $4.50, my good-till-canceled sell order was filled at that price and banked a $2,140 win in just 21 days.
If I had purchased the stock outright, I would have needed to spend about $43,700, but by buying DITM calls, I spent only $8,850 and cashed in for a beautiful 24% gain in 21 days. Try doing that at your local bank with standard market interest rates.
It should be noted that 10,169 contracts traded on Friday, when the option price reached our prescribed sell target, as compared with Monday when only 210 contracts were traded, and Thursday when 450 of the December 20s were traded.
Now on to today's pick:
, the world's largest producer, marketer and supplier of methanol to markets in North America, Asia Pacific, Europe and Latin America.
Methanol is a liquid chemical used in a wide range of consumer and industrial products such as building materials, foams, resins and plastics. Methanol is also used to produce methyl tertiary-butyl ether (MTBE), a gasoline additive used to improve air quality. Methanol is also used to purify waste water and is a convenient fuel for fuel cells being developed for cell phones and laptop computers.
Vancouver, B.C.-based Methanex has production facilities in Chile, Trinidad and New Zealand and employs about 800 employees with $2.32 billion in sales. The stock, which closed Monday at $25.60, carries a forward
price-to-earnings ratio of 24.15 and has a mind-boggling return on equity (ROE) of 44.76%. The debt-to-equity ratio is 0.375, and free cash flow is $500 million. I like this stock and will be buying 10 October 20s (QPNJD) for $6.30 or better with a good-till-canceled limit order.
Game of Life
We are living in the age of technology.
CD books are now available for those who wish to "read" a book in transit. An Internet version of checkers is available for those who do not want to pull out the old board game. Remote-control cars are available for those who don't want to get up from their seats.
Technology seems synonymous with the time in which we live, a mechanism to make things "easier." Beyond entertainment, however, technology has advanced other aspects of life that not only make things easier but make certain things possible. Consider the advancements in everyday life over the past century.
The average life expectancy 100 years ago was 47.75 years, compared with 77.6 years today. A hundred years ago, pneumonia and influenza were the leading causes of death. A hundred years ago, only 8% of all houses in America used electricity. A hundred years ago, the population of the U.S. was 87.008 million, vs. 301.139 million today. That's almost three and a half times the amount of people.
A hundred years ago, Albert Einstein first introduced E=mc2, and the first color photography process made its debut into the national market. Imagine the possibilities beyond what exists today.
Well, the Japanese company Hitachi has developed a new technology that could replace a remote. This controller actually reads brain activity and detects changes in the brain's blood flow, which then translates into certain actions commanded by the controller. Optical fibers link the device, called a brain-interface machine, to a mapping device. In one test case, a reporter was linked to a toy train.
When the reporter was hooked up to the machine, he was asked to do some simple calculations or hum a song in his head. Upon doing so, the train sprang forward, and miraculously, upon stopping, the train stopped as well. The notion of optical topography could be revolutionary to the medical world. It could help paralyzed people communicate.
Moving forward, it may be used for more advanced purposes, but for now, the gadget still needs some more time to develop.
The incredible feature this machine possesses that differentiates it from other optical topography devices is that it does not require any internal chip; the sensors are entirely external.
While the grasp of hands-free technology is not absolute, the hopes for the future are very high. The idea of making things "easier" is certainly appealing, but the possibilities that could potentially exist with the introduction of new technology every day are astounding.
The Players Club recognizes the fast pace of the world around us and its growing technology. We provide professional athletes with a lifestyle as up to speed as their surroundings. By guaranteeing recurring cash flow through our strategic partner, The Players Club ensures that professional athletes will move forward as their financial status progresses and their lives improve.
Always remember: Life is a journey; enjoy the ride!
At the time of publication, Dykstra was long Methanex calls.
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.