About Me

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Interested in saving and investing for financial freedom. Mid to late career IT worker with 20+ years in the state retirement system seeking alternate income through dividend growth investments. Final goal is to pass it down to my children and that they do the same for their children-a continuing generational wealth transfer.

Sunday, October 28, 2012

Other assett classes

We don't want to neglect the fact that stocks are not the only investment choice. Many other options exist-plain savings accounts, CD's, bonds, real estate, precious metals and gems, collectibles, and even basic materials such as basic metals and lumber. I own several I-bonds and CD's. Corporate and municipal bonds are interesting. What are your investment choices? Why?

Sunday, October 21, 2012

Valuation

Another technique used in valuation is the chart-my weakest area. Supposedly if the 200 day moving average and the 50 day moving average are both above the current stock price, this is a favorable buy condition. Its just one condition though. If another is that the earnings are about to disappear because the company manufactures pet rocks, then it doesn't matter about the moving averages-don't buy! As with any stock purchase decision, research is most important and money is made or lost on the buy side more than the sell side.

Wednesday, October 17, 2012

Arena Pharmaceuticals

ARNA is my most speculative holding and what a roller coaster its been. They have a new obesity drug recently approved by the FDA. Up 6.71% today, I hope it dips so I can buy more. Its about to break through to higher levels and I have a covered call on it for $11. Its going to get called away, but why get off now? Lets see how high it can go.

Sunday, October 14, 2012

Valuation, valuation, valuation

I will post early and often about this topic. How to value a company? A common, fast and easy indicator is PE ratio. It is the price we pay for a dollars worth of earnings in a share of company stock. If PE=12, we are paying $12 for $1 worth of earnings-and earnings mean everything especially earnings growth, past and projected future. We want this number low, preferrably below 15. Why pay more for a company's ability to make money and return value to shareholders? Its like buying when there is a sale-waiting for a dip in the share price while the earnings are still the same. This is only the tip of the valuations iceberg. Please post your thoughts on other factors affecting valuation.

Saturday, October 13, 2012

AT+T - buy or sell after the dip?

Seeking Alpha has a few articles on att's recent 6% dip. Is it a buy now or will there be a further beating? I have a cash secured put in, strike price 35 for Nov 17. Split the difference, get paid to wait either way!

Friday, October 12, 2012

Welcome to jcinvestor

Hi and welcome to my investing blog. I am a dividend growth investor with a small portfolio-my intent is to share my experiences with anyone who is interested. Thanks for viewing..