|Day Low/High||2.71 / 2.88|
|52 Wk Low/High||1.57 / 4.78|
Often when above-average volume moves into an equity, it precedes a large spike in volatility.
Shareholders of Big 5 Sporting Goods Corp looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the April 2014 covered call at the $17.50 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 12.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15% annualized rate in the scenario where the stock is not called away. Any upside above $17.50 would be lost if the stock rises there and is called away, but BGFV shares would have to advance 10.7% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 17.3% return from this trading level, in addition to any dividends collected before the stock was called.
Best Buy's (BBY) stellar share price run, a solid balance sheet for Big 5 (BGFV) and a possible 20% bump in gun sales for Cabela's (CAB) round up Monday's retailer news.
Based on our agreement with a recent downgrade, we are going to trim this retail name and move our rating on it to a Three.
We are keeping an eye out for new opportunities but we made no changes to the model portfolio this week and we remain confident in our holdings.
As volatility in the market increased this week, we did not make any adjustments to the model portfolio.
Amid this week's reports of improved global macroeconomic news, we took profits in two model portfolio names ahead of their earnings calls.
During a week that tested the market's resiliency several times, we added shares to one model portfolio position on weakness.
It was a quiet week for the model portfolio, as the market took a beating from mixed economic data, earnings disappointments and weak retail sales.
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Big 5 Sporting Goods Corp presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
We made several adjustments to the model portfolio this week, trimming three positions and adding shares to one other.
It was a quiet week for the model portfolio as we digested several earnings results and various economic data reports.
Portfolio Manager David Peltier highlights a gun-maker with a lofty dividend yield.
This retail name reported better-than-expected second-quarter results and continues to benefit from a number of drivers.
Here is what we'll be listening for when these model portfolio names report quarterly earnings later today and tomorrow.
We took advantage of the earnings season volatility to make several adjustments to the model portfolio this week.
Earnings season got off to a strong start for our model portfolio and we added shares to two positions this week.
Ahead of earnings season kicking off for the model portfolio, we closed out two positions and initiated one new holding.
We added a new position to the model portfolio this week and also built up one holding and trimmed another.
While the market's fears eased up a bit this week, we took some profits and also added to a few model portfolio names.
Shareholders of Big 5 Sporting Goods Corp looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the October covered call at the $22.50 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 24.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 26.7% annualized rate in the scenario where the stock is not called away. Any upside above $22.50 would be lost if the stock rises there and is called away, but BGFV shares would have to advance 2.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 9.7% return from this trading level, in addition to any dividends collected before the stock was called.
Due to this stock's strong move today, we are adding fewer shares than we would like. We are also bumping up our rating.
Amid churning market action this week, we added a new model portfolio position, closed another and trimmed one large holding.
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