Volatility? Yes, please! This is your golden opportunity to serve yourself some great companies and stocks on sale…
Is the worst of the storm over? U-bet.
Can Jane the investor and John the trader come out and play?
As they say in my birthplace, Brooklyn, u-bet (which is also the name of a legendary, Brooklyn-born chocolate sauce).
Speaking of chocolate sauce, investors just got a big dollop of it. So did traders.
Investors are seeing some great companies and stocks on sale. Valuations have come down to be borderline ridiculous for some of them. More on that in a minute.
Market volatility is creating some great premiums for traders selling options—please don’t buy them, sell them.
Double chocolate for all who think like investors and trade like traders. Well, traders smart enough to sell options. Remember, 80-85% of all options expire worthless.
Someone makes money off of speculators, and that someone should be you.
What looks cheap?
Here’s a list. I own them all because guys from Brooklyn eat their own dog food.
Make that chocolate sauce.
Let’s take a look at five fantastic stocks on sale that you’ll want to grab now…
Blackstone (BX) is the best private equity firm in the world, with a roughly 8% yield…
… and the stock has almost been cut in half.
Three words: get in now.
Ignore the noise; China isn’t going medieval on us.
Apple (AAPL) is the only company in the world that makes money on (a.) laptops, (b.) smart phones, and (c.) tablets.
American Airlines (AAL)
American Airlines (AAL) has a P/E under 5 and earnings coming up.
Consumers now avoid cashmere sweaters and new furniture, instead choosing to travel on jets that use fuel at less than half the cost of fuel just one year ago
Yes, people from Brooklyn are contrarians.
Halliburton (HAL) won’t stay below $30 forever, so get in cheap.
Competitor Schlumberger (SLB) just beat on earnings; HAL could do the same.
Gilead Sciences (GILD)
Selling at less than half the valuation of the S&P 500, Gilead (GILD) is the best biopharma company on the planet.
There isn’t much more to say except that the doomsayers on Wall Street are so wrong about Gilead that it’s laughable.
The doom? Not enough potential hepatitis C sufferers.
My answer? The World Health Organization says there are 125-165 million of them around the world… that’s a 500-year supply.
Don’t Stop There!
One more thing about those five company/stock names that I just shared with you…
If you agree with me and you buy them, sell some calls and generate cash—right now.
You can even use the cash to buy some puts if you think the rally can’t last.
This is called hedging, and it’s something no longer done by hedge funds. Since most hedge funds lost money last year, you don’t want to do what they’re doing anyway.
Enjoy the chocolate sauce while the geniuses and lemmings on Wall Street are still looking for the ice cream parlor.
This post originally appeared in mainstreetinvestor.com.
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