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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (25136)	5/24/2012 10:53:20 PM
From: robert b furman	1 Recommendation Read Replies (1) \| Respond to of 25522

I sold some puts that if Amat is below 10.00 in January 2013,I buy Amat for a net of 9.00. Now I'm aware it could be at 7.00 and not the best deal. Amat is just fine @ 9.00. With guidance doing fine and I believe a 40 cent dividend by next March. I've got my account out of margin, but if AMAT'S PRICE GETS TO $9.00 via puts or otherwise- I'm going to go in margin. After taxes my margin expense is covered by the dividend revenue. At some point Amat is a double and the dividend pays us to wait for the double. So I ask myself are there fewer photovoltaic cells in the future ,fewer display glass panels and fewer semi chips. I think Amat is in some fine businesses all of them cyclical. Then on top of that they bought Varian and I have dreamed about buying some of that great company for years. What needs to happen is the SEC needs to grow some balls and stop naked shorting and High frequency trading. All the slick advantages that give Wall Street types: JPM traders, and GS traders an advantage over the little guy needs to go, or these jerks will choke the goose that lays the golden egg. These are great values and I'm excited to see them paying better and growing dividends. The yields beat treasuries and CD's.Plus they offer doubles and triples over the long run - These are the best investments compared to anything out there I know of. Perhaps at some locations real estate is better, but real estate has fixed costs and now that I'm turning 60 in July - I'm looking for fixed income - not fixed expense. These are deals and I'm sure in the not too distant future, we'll be kicking ourselves for not being more aggressive and doubling down.. So far I've been selling 10-20 puts and they have been put to me. My initial out right purchase was @ 11.84 averaged. Then I was put some more at 10.93 last month. This month I'll be put some more at 10.63. My last put went out in time and has a net price of 9.00.I may be way off here ,but I'm thinking I'll end up having the money and not the stock. Hoping to be able to add some July or august stock at a net of 9.00 I also sold some Cohu August 10 that yield a net price of 9.00.I'm thinking earnings will determine if Cohu is above or below 10.00 when the announced in July.They and Amat have an increasing B to B for sequential quarters via guidance. Both companies have conservative guidance and UPOD always. Klic Amat and Cohu all within a buck. I have noticed Amat hanging in there better - I believe it is the better dividend yield. A BIG HINT to all semi stock CEO's. Intel has been the poster child for what an incresed dividend can do. I hate the depression that being upside down in a stock gives you. That being said I love buying these great stocks cheap and living off of the dividends for the future. If you are short - get long. If you are long get more!!! Bob