Dykstra: Symantec Should Lock Up Profits - TheStreet

Dykstra: Symantec Should Lock Up Profits

The data storage and security company's January calls offer a compelling trade.
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Celebrating its 25th anniversary, Symantec (SYMC) - Get Report provides consumers like you and me with world-class protection against security risks, viruses and cybercrime.

It has been a longtime favorite of mine, not only as a company but as a money-making stock. In 2005 Symantec merged with its No. 1 competitor, Veritas Software. The result? The two worldwide leaders in storage software and security software came together to help people secure and manage their information. The combined entity can now deliver information across all platforms to customers of all sizes.

Symantec, which has about 17,000 employees around the world, has two main competitors, according to Yahoo! Finance:

McAfee

(MFE)

and

Microsoft

(MSFT) - Get Report

. Microsoft is so massive that it could be a competitor to a number of companies across the Internet. McAfee, on the other hand, is really Symantec's main competitor, but in my opinion it is still junior to Symantec, which I consider to be the king of security accross the Internet.

The most valuable commodity I know of is information. The market moves much too fast to go it alone, so I surround myself with good information and good people. Why do I mention this? For this simple reason: To be best at what you do, you must surround yourself with quality people.

Symantec's fair value price is $24.26, according to ValuEngine.com. Richard Suttmeier, the man who taught me what a moving average is, considers this stock to be undervalued -- by 19.14%, to be exact. Finally, my broker and good friend Paul Hollins, who is also the brother of Dave Hollins, my former Philadelphia Phillies teammate, also likes the stock. Now to today's deep-in-the-money pick.

I am going to place a limit order to buy 10 January 15s (SYQAC) at $5.10, or better. I will be paying only 48 cents in premium for this trade. Here's how I came up with this number: I started with Monday's closing price of $19.62; then I took the strike price of $15 and added $5.10, the price I am willing to pay for the deep-in-the-money call, ending up at $20.10. Next I subtract Monday's close of $19.62 from that $20.10 and arrive at 48 cents. This is a great example of the leverage one will receive when using deep in-the-money calls. I will be in control of 1,000 shares of SYMC common stock for about seven months, paying only $5,100, as opposed to $19,620.

Game of Life

This past Saturday, July 7, 2007 (07/07/07), was widely seen as the luckiest day of the century. Many individuals planned events for the "lucky sevens" day. Take a turn in Clint Eastwood's shoes and ask yourself, "Do you feel lucky? Well, do ya, punk?" Let's take a look at the significance of lucky number seven.

There are seven wonders of the ancient world, seven continents on Earth, seven days in a week, seven deadly sins and seven summits of the world. Also, the number seven has earned its renown in entertainment as well, including Marilyn Monroe's

The Seven Year Itch

, the 1995 movie

Se7en

, James Bond's 007,

Snow White and the Seven Dwarfs

and J.K. Rowling's seven Harry Potter novels.

In the sports world, we all know the seventh-inning stretch in baseball, the jersey number of Mickey Mantle, John Elway, Bill Barber, Phil Esposito, Rod Gilbert, Howie Morenz and Michael Vick, as well as the maximum number of games in an NBA, NHL and MLB playoff series. If you hadn't listened to the radio, turned on the television or logged on to the internet, then maybe you didn't hear all the hype surrounding the superstition of 07/07/07. So did anything special happen to you?

Thousands of couples chose 07/07/07 as their wedding day, while others chose to induce labor or schedule caesarian sections in order to have their children's birthdays fall on the lucky day. One bride even toasted with 7-Up at her wedding instead of champagne! Eva Longoria and Tony Parker tied the knot in Paris, while others bet big bucks in the poker room, hoping the luck would fall into their wallets. Imagine how many people bet on 7 at the roulette table!

Nonetheless, the Chinese must think we're crazy for giving the day such positive attention. In Chinese civilization, the number seven symbolizes death. Regardless of a culture's superstitions, when it comes down to it, most of us will face reality at some point and appreciate that luck and superstitions do not always find us. It's nice to believe that some special fate will overpower the whims of life, yet we are often disappointed.

The Players Club understands that in life there is too much to gamble by merely relying on luck to win us profits. By guaranteeing recurring cash flow to professional athletes through our strategic partner, we strive to deal a hand that results in a victory over and over again. We recognize the determination, perseverance and diligence contribute to a professional career, and therefore we do everything possible to keep your financial future "in the game." With this mentality, during the seventh-inning stretch, you won't need luck to come out with a victory.

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 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.