03-19-2019, 03:58 PM
(03-19-2019, 02:51 PM)stockguru Wrote:(03-19-2019, 10:16 AM)fenders53 Wrote: Finally picked up some Ute shares today. Very small positions in AEP- D-WEC-SO and XEL. They are all currently overpriced by 5% IMO, and paying too much for slow growing Utes rarely pays off in the short-term. Bought the shares with profits from all the puts I sold that expired worthless while trying to be forced go to long since AUG18. Yeah, I would have been a little better off just going long then, but I couldn't predict UTEs would run higher in the face of the FED tightening. That isn't normal. The put sales will continue and sometime soon I'll finish these positions out quite suddenly. Who knows when.
Utilities are over valued right now. Most are trading at high valuations and dividend yields compared to there norm. They need to come down another 15% or so before I will add new money. I bought a lot of those names in Nov-Dec of last year.
During the same time I sold and collected put contract money on every one of them, month after month. In the end, a different method to the about the same place. (I really need to get out the calculator).
Anyway, I own at least 25 shares in all of the above listed Utes now. You are right they are overvalued, and it could be many months before they pull back enough to buy large positions, which is very much my intent. They look like they are finally running out of gas lately.