How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: J. P. who wrote (2265)	5/17/1997 2:38:00 PM
From: Herm	of 14162

Howdy No Top, That's a fair question. First, a EPS of 90% is pretty good. Anything over 70% if worth looking into according to O'Neal's CANSLIM criteria. Here is a link to IBD's web page. You may need to register (free) before you can read the education section which is FANTASTIC! You don't need to buy the book! investors.com So, basically you are talking about a company that is in the top ten percent of all profitable companies. The relative strength does not reflect the full potential of this stock. Sure, it is bottom fishing at this point. But, look at Employee Solutions (ESOL) that had a relative strength of 90+ and look at it now! Just because mutual fund managers ARE NOT buying a stock does not make it a dog! My next point is that I like stock splits. This is will be the 5th. time I owned a stock when a split came around. The other four I made a great deal of money. My stock alone made an easy forty percent (40%) between the time of the announcement and a month after the split (ROST made about that much). So, for about two months worth of time that was a good chunk of change. Now, I'm a much better investor and I have the covered calls stratergies and the PUTS/CALL weapons in my tool shed. I would expect to make over 60% in the same time! Further, the American dollar has been dropping in the past two months. That really helps companies that do business overseas. TECD is one of them. I don't believe the stock price fairly reflects that fact. Finally, No Top! 13% growth on 6.5 BILLION dollars of annual sales? Man, that not to slow in my eyes! I'm amazed they can growth at that pace. The low dollar should help that number anyway this year. They may exceed that for sure in FY97. You're last statement hit the nail on the head. No potential meltdown with TECD and it can only go up from here. Great for covered call monthly writing income and long term growth.

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