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Strategies & Market Trends : Underexposed Technical Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Underexposed who wrote (94)4/12/2017 12:57:09 PM
From: robert b furman  Read Replies (2) | Respond to of 914
 
Hi UE,

WOW!

Thanks for the review.

Yes Cy is the chip maker the rest are equipment makers for the chip companies.

I have sold puts on CY.

Puts with a strike price of 12.00.

If Cypress close below 12.00 on January 2018 then I get to buy CY at a net price of 10.95.

That would yield just over 4.%. ( 44 cent dividend)

Cypress has morphed from a commodity memory chip maker to the third largest auto chip maker over the last 2 years. They also have a new generation 3.0 USB that is just now beginning to get engineered into future designs - confirmed to be required with the Oculus (virtual reality mask) and rumored to be adopted by both Samsung and Aapl for their new OLED phones.

A good long term buy and hold story with a dividend that pays one higher than banks do and at a favorable tax rate (20%).

A place to park money and even get a return.

I sell long term puts to maximize time premium which minimizes net price and gives a better long term dividend yield.

I only sell puts on stock I like and would not mind holding long term for a capital gain.

Cy has some debt as they just also paid cash(550 million) for Broadcom's internet of things division which has been immediately accretive and growing faster than anticipated.

I do hate debt the other two Cohu and Brks have millions in cash and NO BANK DEBT!

Thanks again UE!!

Bob