What Did You Buy Today?

[kblake]

What I don't get is why do people continue to invest in a dead stock like XOM? I get the dividend but that's not nearly enough to justify me buying it. The stock has done nothing for many years. It even under performs when oil goes up LOL

History
2014 - 5.98%
2015 -12.57%
2016 - +19.62
2017 - 3.94
2018 - 14.61
2019 - +6.36%

The only reason why the stock was positive in 2016 and 2019 was because of the dividend.

I'm just trying to figure out why people continue to buy that name when there are better names out there, even in the oil sector.

Anyway added some names and bought some new ones

Added to STOR, MO, ABBV, and TXN
New positions in MPC and PSX

[fenders53]

My port was down about $25 today. Over 35 positions. That's when you know you might be too defensive in a bull market. No buys today. I need the market more than 15 minutes off the ATH to buy much of anything. I would like some starter positions so they are in my face when it dips.

[fenders53]

(01-03-2020, 06:01 PM)kblake Wrote: What I don't get is why do people continue to invest in a dead stock like XOM? I get the dividend but that's not nearly enough to justify me buying it.  The stock has done nothing for many years. It even under performs when oil goes up LOL

History
2014 - 5.98%
2015 -12.57%
2016 - +19.62
2017 - 3.94
2018 - 14.61
2019 - +6.36%

The only reason why the stock was positive in 2016 and 2019 was because of the dividend.

I'm just trying to figure out why people continue to buy that name when there are better names out there, even in the oil sector.

Anyway added some names and bought some new ones

Added to STOR, MO, ABBV, and TXN
New positions in MPC and PSX

While I don't own XOM anymore, IMO the answer is the Armageddon balance sheet, the past performance of long ago, and the dream it may happen again.  There are at least three or four super majors I find more attractive today.  If 2014 returns due to oversupply, which is very possible.  XOM should be one of the few that doesn't get crushed.  My biggest problem with it now is if it runs $10 the risk reward goes away, because they just can't execute anymore.  Like you said oil prices are decent and the SP is still about even this year.  There are other majors in the same situation though.  They are just very out of favor.

[pdaignau]

(01-03-2020, 05:26 PM)crimsonghost747 Wrote: What's up with this buying spree? I don't recall seeing this much activity here in ages!
Did everyone just win the lottery or is there another reason for this apparent higher than normal inflow of cash into ATH stock prices?

I can't speak for everyone, but I've been saving for and planning for my 2020 Roth IRA Contributions and Purchases.  Plus, in Dec. I do an in-depth review of all my financial plans and goals.  Combine these two and I have/had several trades ready to go come Jan. 2nd.

[Otter]

(01-03-2020, 05:26 PM)crimsonghost747 Wrote: What's up with this buying spree? I don't recall seeing this much activity here in ages!
Did everyone just win the lottery or is there another reason for this apparent higher than normal inflow of cash into ATH stock prices?

Those trade confirmations were accompanied by the sound of my year-end bonus check clearing. Most of it went into savings, but I deployed some into equities where I thought there was value, even in this historically high market.

[Otter]

(01-03-2020, 06:01 PM)kblake Wrote: What I don't get is why do people continue to invest in a dead stock like XOM? I get the dividend but that's not nearly enough to justify me buying it.  The stock has done nothing for many years. It even under performs when oil goes up LOL

History
2014 - 5.98%
2015 -12.57%
2016 - +19.62
2017 - 3.94
2018 - 14.61
2019 - +6.36%

The only reason why the stock was positive in 2016 and 2019 was because of the dividend.

I'm just trying to figure out why people continue to buy that name when there are better names out there, even in the oil sector.

Anyway added some names and bought some new ones

Added to STOR, MO, ABBV, and TXN
New positions in MPC and PSX

Heh. XOM was my smallest add today. Felt that I had over-trimmed the position in 2019, and the price looked reasonable.

[divmenow]

If you want to make money with XOM you need to buy 100 shares. The stock although a dead one lol will earn you $3480 over 10 years just in dividends. If your happy with those returns then the stock is for you. I hold the stock and always add to it under $68-69. I accumulated 327 shares now while holding it since 1994. I don’t mind the stock being in this range. It seems like every 5 years or so this stock will move finally lol. It’s not a get rich stock. It’s more like a bond fund now.

[fenders53]

(01-04-2020, 10:23 AM)divmenow Wrote: If you want to make money with XOM you need to buy 100 shares. The stock although a dead one lol will earn you $3480 over 10 years just in dividends. If your happy with those returns then the stock is for you. I hold the stock and always add to it under $68-69. I accumulated 327 shares now while holding it since 1994. I don’t mind the stock being in this range. It seems like every 5 years or so this stock will move finally  lol. It’s not a get rich stock. It’s more like a bond fund now.

Here's another way to play it.  Sell a covered put and collect about 1% monthly premium until you get stuck buying the 100 shares at an attractive price.  Pick the expiration date carefully and you get forced in shortly before an X-div.  Dividend begins and sell a covered call every month or two and collect more income.  If it runs $5 quick and you lose your shares at a decent profit vs your basis, rinse and repeat.  If you're long you were just going to watch it pull back for the 20th time anyhow.  I do this with a half dozen higher div stocks in trading ranges.  Big oil is perfect for it.  Most years so are Utes and the more boring financial stocks.      

Or do it divmenow's way.  It really is about the same as a high yield bond fund these days.  You just have to watch your entry or it won't work out.

[vbin]

Exactly how I play it. Lol. I think you have mentioned this before also. Thank you for that.

[NilesMike]

(01-04-2020, 06:28 PM)fenders53 Wrote:

(01-04-2020, 10:23 AM)divmenow Wrote: If you want to make money with XOM you need to buy 100 shares. The stock although a dead one lol will earn you $3480 over 10 years just in dividends. If your happy with those returns then the stock is for you. I hold the stock and always add to it under $68-69. I accumulated 327 shares now while holding it since 1994. I don’t mind the stock being in this range. It seems like every 5 years or so this stock will move finally  lol. It’s not a get rich stock. It’s more like a bond fund now.

Here's another way to play it.  Sell a covered put and collect about 1% monthly premium until you get stuck buying the 100 shares at an attractive price.  Pick the expiration date carefully and you get forced in shortly before an X-div.  Dividend begins and sell a covered call every month or two and collect more income.  If it runs $5 quick and you lose your shares at a decent profit vs your basis, rinse and repeat.  If you're long you were just going to watch it pull back for the 20th time anyhow.  I do this with a half dozen higher div stocks in trading ranges.  Big oil is perfect for it.  Most years so are Utes and the more boring financial stocks.      

Or do it divmenow's way.  It really is about the same as a high yield bond fund these days.  You just have to watch your entry or it won't work out.

Looking at the options chain, I'd be inclined to sell an ATM (70) MAR20 put for  2.50 3.7% return for 76 days. Get put @ 70 or lower, sell the 72.50 Call for 1.20  9%+ return for 4.50 months. Not too shabby

Food for thought

[fenders53]

(01-04-2020, 08:27 PM)NilesMike Wrote:

(01-04-2020, 06:28 PM)fenders53 Wrote:

(01-04-2020, 10:23 AM)divmenow Wrote: If you want to make money with XOM you need to buy 100 shares. The stock although a dead one lol will earn you $3480 over 10 years just in dividends. If your happy with those returns then the stock is for you. I hold the stock and always add to it under $68-69. I accumulated 327 shares now while holding it since 1994. I don’t mind the stock being in this range. It seems like every 5 years or so this stock will move finally  lol. It’s not a get rich stock. It’s more like a bond fund now.

Here's another way to play it.  Sell a covered put and collect about 1% monthly premium until you get stuck buying the 100 shares at an attractive price.  Pick the expiration date carefully and you get forced in shortly before an X-div.  Dividend begins and sell a covered call every month or two and collect more income.  If it runs $5 quick and you lose your shares at a decent profit vs your basis, rinse and repeat.  If you're long you were just going to watch it pull back for the 20th time anyhow.  I do this with a half dozen higher div stocks in trading ranges.  Big oil is perfect for it.  Most years so are Utes and the more boring financial stocks.      

Or do it divmenow's way.  It really is about the same as a high yield bond fund these days.  You just have to watch your entry or it won't work out.

Looking at the options chain, I'd be inclined to sell an ATM (70) MAR20 put for  2.50 3.7% return for 76 days. Get put @ 70 or lower, sell the 72.50 Call for 1.20  9%+ return for 4.50 months. Not too shabby

Food for thought

That looks real attractive Mike.  Can't emphasize enough you have to be disciplined with your entry.  The major internet forums get Oilphoria.  So much wishful thinking predicting $100 oil several times a year.  Sure it could happen, for a minute, and you'll look better on paper if you are long.  There are just too many struggling oil companies that will wreck the supply/demand balance in a matter of months.  They have no choice with their excessive debt.  These income plays on range bound stocks look so good when the market is stuck +/-5% for quarters for years at a time.  Take the house money income and buy yourself a share or two of a true DGI stock, or your favorite fast growth story.

[Otter]

Added to ADM, F, and IBM this morning. That should close out the start of the year buying spree for me, other than the usual manual dividend reinvestment.