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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (75724)	5/31/2024 1:11:02 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78486

JWN. "However, some analysts question the aggressive Rack expansion given the banner's past underperformance relative to competitors like TJX and Ross Stores. They suggest Nordstrom should prioritize revitalizing its full-price stores to avoid further declines" This is a maybe. Abercrombie stockholders have reaped the rewards for finding what customers want. And as you've pointed out, GAP has now done that too (to my surprise), and the stockholders have seen shares really rise today. I see J Jill, LEVI (congrats to those here who're in it) hit a new high today too. JWN may be a different animal, being more upscale. I've gone through their stores -- sometimes no customers, sometimes just browsers. The Rack though, as I've mentioned here maybe a couple of times, those stores always seem busy, always with a line formed for the several checkout stations. Reason I have bought and held. (And for the potential buyout, but that is more iffy.) Why would you not give customers what they want --- open more of those Racks! If you haven't got upscale clothes that people will come into the 'regular' Nordstroms for, then consider closing more of those stores, if you can't find the key to lure customers. Relevant to upscale Nordstrom's, I'm holding upscale brands Capri at a loss. It's doing a business, but not enough. (Another upscale retailer is trying to acquire it, but fed gov't says, no. The companies are challenging fed decision.) If people are cutting back on clothing purchases, it doesn't seem to be everywhere. I also don't see overall declines in the stocks of shoe manufacturers or shoe store chains -- Some shoe mfgers (sneakers/runners) are at new highs, as are some shoe retailers (Shoe Carnival today for example).

To: E_K_S who wrote (75724)	6/4/2024 11:04:43 AM
From: Elroy	Read Replies (1) \| Respond to of 78486

Well, as I wrote earlier I'm short WMB June $37 covered calls. WMB pays a dividend Thursday night, so I figured if I do nothing they would be exercised, and the shares taken from me on Thursday night. So I've bought back the $37 calls, and sold Jan $38 calls for a profit of 40 cents on the option roll. Seems like an OK trade. I've realized I've got a large cap gain on Williams, so I'd rather hang on to them as long as the stock price is going up. This strategy (rolling forward covered calls) seems interesting. As long as the share price doesn't run away from me too much, I fget both the WMB dividend and also the call roll premium. It juices the return a decent bit. This stratgey (rolling forward covered calls) works really well with REIT O. O pays about 25 cents each month, and you can roll forward an at the money call for about 35-45 cents each month. It turns the yield into 12% rather than O's 5%. With WMB, if the share price continues higher, the rolling will eventually pay less and less, but I'll see what the share prices looks like next January, and in the meantime collect the regular dividend.