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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (16273)	7/18/2013 2:45:14 PM
From: E_K_S	2 Recommendations Recommended By tjon72 Truedarkblue Read Replies (2) \| Respond to of 34328

Hi Ditchdigger Re: SFL My next move is to eventually sell the Nov $15.00 Calls for $1.65/share or higher. I already sold the Nov $15 Put for $1.25/share. Then on any sell off below $15.00/share, I will pick up more shares equivalent to the covered calls sold. My last call selling was w/ the Nov $17.5 Calls where I got $1.50/share earlier in the year and bought them back for $0.25/share. What's nice on this stock is that the dividend is pretty high generating a 10% yield, I do not mind holding the shares and collecting the dividend. I currently own a core position w/ a low cost basis (around $10.80/share) and now try to add shares below $15.00/share and write covered calls on my "new" shares when the stock trades above $16.00/share. If you check out the option premiums over the year, they really explode the week before each earnings release. This allows for buying cheap shares and/or selling Puts and/or letting the stock run higher and selling covered calls. Remember, they did a recent secondary @ $16.25/share (8mln shares and used the proceeds to buy a drilling rig) so 10% of the new shareholders are in at that price. Over the years I have followed this company (since it's original IPO in 2003 at $15.00/share), I have owned the stock w/ buys as low as $5.68/share in 4/2009 and sales as high as $ 29.50/share 7/2007. My average cost is now around $10.80/share. I am pretty comfortable owning shares at $15.00/share or lower but will write covered calls on those high priced shares. The steady dividend is what I like about this company and their exposure in the large drill rig sector. Also Fredriksen holds a lot of the shares and is a very shareholder friendly CEO. I hold other Fredriksen companies including SDRL, Marine Harvest (MNHVF) and GLNG (My favorite of the group w/ the focus on NG ships & floating NG processing barges). These NG barges may/are the solution to fixed NG export processing ports. The fuel is piped and/or moved in smaller ships to the "Mother" Processing barge, the NG is processed and compressed, stored and then off loaded to the large fleet of transporter ships. This type of offshore processing alleviates the need to build fixed local processing facilities (many in the U.S. are opposed by local communities). These huge NG processing barges also allow NG from under developed locations to get the fuel to market quicker and cheaper. My investment "theme" is Japan, Germany and even China, will move to more NG electric generation rather than nuclear and coal. Japan needs the NG now as does Germany and China is building new NG generating plants because of growing pollution issues from using coal. FWIW, I have a Fredriksen "watch list" w/ 17 companies I have identified where he sits on the board and/or his daughters and is a major shareholder and/or controls. All dividend friendly too. (FRO, NFSHF, ESV, SFL,SDLP,VLCCF, MNHVF, SDRL, ARHVF, NATDF, GLNG, PDE, GOLAF, TUIFF, DSSPF,ALY, GDOCF) Offshore Drilling and Shipping: Mapping John Fredriksen’s Holdings According to Forbes magazine, John Fredriksen is among the 100 richest people on the planet, with an estimated fortune of $7.7bn EKS