Frequently Asked Questions
Research for Online Investors

NOTE: If you showed up here after entering your password, there is something amiss, please try again!

What is the difference between the

Long-Term Portfolio,

 Buy, Sell, Hold

 and SwingTrader?

The Long Term Portfolio is:

You receive recommendations of quality stocks to add to your long term portfolio.  You receive a new stock recommendation the first Monday of every month.  Each stock should represent 5% of your portfolio.  This portfolio follows Benjamin Graham's principals of deep value and holding for the long term.  We like stocks of solid companies that have a history of paying dividends.  We do use trailing stops to protect our hard earned gains.

• $99 per year.  You save a hundred bucks!
• We help you invest for the long term, and build your retirement or investment account.
• It takes very little time on your part.
• Just check your e-mail once per day, I monitor our positions and alert you if you need to enter an order.
• Weekly recap on all of our positions.
• Every month I send out a recommendation of a new company to buy with a specific buy price.  You just enter it and let the market fill when the price meets ours.
• Best place to start to build future wealth.
• Helps you gain experience investing your own funds.
• Get comfortable with the market.
• Each of our present positions has a recommended aggressive an conservative buy price for new subscribers.
• We actively manage our portfolio, we also recommend sales from the portfolio.

Buy, Sell, Hold is:

Our premium service that buys value stocks, then sells covered calls against them.  We own 10 stocks and keep calls sold against them.

• Weekly update on positions on Wednesday morning.
• A specific buy price on underlying stock holdings if a replacement is needed.
• Exact instructions for Option to Sell, at what price.
• Buy back prices.
• Resell prices on rollover options.
• Constant monitoring of our positions.
• Posted on website for your easy access.
• Email alerts when time to sell.
• Low risk, high reward setups.

The SwingTrader is:

We capitalize on over sold or over bought stocks and ETF's.  We send out recommendations of market action every morning before the market opens.  We recommend you play the same amount of money on each position.  Our record is good, but there will be losses, so it is important that each position is roughly equal to the others.  We look for short term trends that will play out in less than a month.  We will take profits almost immediately if we get a sharp movement.  We will cut losses if we feel the position has moved against us and holds little hope of recovering.

• You receive our Stock Alert everyday before the market opens.
• We look for technical trades with a three day to three week window.  We never hold for one year! 
• We look for trades to make 10% per month on each trade.  Some take longer, some less. Some make more, some less. 
• Minimum account size of $20,000 to take advantage of these trades.

I look forward to having you as a member of any of our premium services.

Here is a sample recommendations from each service:

Long-Term Portfolio

Research for online investors

March XX, 2009

We have been through a tough past two weeks. We saw the market drop and erase a lot of gains. Our stocks held up pretty well, and are now recovering to put us back into the black.

This week take a hard look at MarkWest Energy Partners (MWE). This is a limited partnership like Kinder Morgan Pipeline that we own. This is an important distinction because the dividends you receive will be sheltered by depreciation on the physical assets of the company. Taxes have to rise in the future for everyone, not just the few, so any favorable tax treatment we can get is not to be taken lightly.

MWE gathers, processes, transports and stores natural gas, along with some crude oil. Natural gas is down right now, but it does not matter to MWE. They don’t explore for it, they just transport it. There is some exposure to pricing, as they hedge the commodity while they are in possession of it. Producers want to be paid market price when it goes in the pipeline, buyers want to pay market price when it comes out. Add in processing time and storage, you see why they hedge the pricing. This should balance out to have no material effect, but in practice can have negative/positive results.

MarkWest contracts much of the gas before it builds a pipeline, so there is little risk of assets not being utilized. They pay out less than cash flow, and we are buying today for just a little more than 1/3 of their Enterprise Value. Ben Graham would salivate for this kind of deal.

MarkWest along with many other partnerships were unfairly punished in the market sell-off in the last year. Their stocks were held by many large institutions that had to liquidate to raise money. Pipeline partnerships were also lumped in with real estate partnerships that face a tough future. Partnerships have to pay out most of their earnings in dividends to maintain their tax favored status. This can be a hurdle for real estate partnerships because they cannot build any cushion for vacancies. Real Estate partnerships are in a liquidity crunch as the economy slows down. Pipeline companies don’t have this problem, but they were too close to the fire to avoid getting singed.

MarkWest pays $0.64 per quarter, $2.56 per year! If we can get this bought at $11, that is a 23% annual return. Better than certificates of deposit.

There is some noise about the ability of MWE to continue the present distribution. I have read the 4th quarter earnings call, and discussions were frank considering the present financial markets, and spreads on commodity pricing. As a friend of mine in Atlanta says, “Analysts are covering their behinds”. It seems an expectation of a lower distribution (cut in half) is already priced into the stock. If this happens, we are making 113/4%, not as good, but pretty dang good with tax favored status.

This MWE recommendation sent to you so you can make a decision if this stock is appropriate for your holdings. As noted below, I will watch the market, and send an Alert when to buy. If the market goes south, we may get a great opportunity.

ACTION TO TAKE: Buy MarkWest Energy Partners (MWE) under $11.00 The stock has rallied along with the general market from its lows. I will watch the market and send you an alert when I buy. If the market opens weak in the morning, we will let it. When we firm up prices, it will be time to grab it. We may be able to get it cheaper, but if you miss it, it will be gone.

The information presented in this recommendation is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions. It may contain errors and you should not make investment decisions based solely on what you believe you have read here. Do your own research, it is your money. If you lose it, it is your responsibility, not ours or your grandmothers! The editor may or may not have a position in any securities discussed. The editor may have held a position in a security earlier, or in the future.

Buy, Sell, Hold

Jan. 13, 2010

Earnings season is upon us, and Alcoa (AA) disappointed the market to start things off. We think the market still has some strength to show. All the talk of the expectation of a pull-back may actually work to drive the market higher. This seems strange, but if traders short the market, expecting a sell-off and the market moves higher they have to cover their shorts. This is like rocket fuel to a rising market.

We want to let go what gets called away, and roll over to new covered calls on those that are expiring.

Enter orders Good Till Cancelled. We will send out alerts if we need to change directions.

Recap and Action to Take:

ABC   = HOLD We sold to open the Feb. $55 call (ABCBK) We are doing fine on this position, no action to be taken this week.

DEFG= HOLD We sold to open the March $7.00 call (DEFCJ) We are doing fine on this position, no action to be taken this week.

HIJ = HOLD We sold to open the Jan. $26 (HIJAF). We are above the call price and it appears our stock will be called away. You don’t have to do anything. If HIJ closes above $26 Friday, the stock will be called away and $26 per share will be deposited in your account. We will resell the position next Wednesday, after the funds settle. This transaction will net us 7.7%

KLM   = HOLD Messy cup with handle but it will have to do. Sell to open the April 45 call (KLMJU) for $1.25 or more.

NOP   = HOLD Sold to open the Feb. $44 (NOPBA) Moved higher in last week. We are doing fine on this position, no action to be taken this week.

QRS = HOLD Sold to open the Feb. $30 call (QRSBF) Stock made strong move last week. We are fine on this position, no action to be taken this week.

TUV = HOLD Sold to open the April $25 call (TUVDE) Company has announced expansion plans and stock buy-back. We are recovering in this position, no action to be taken this week.

WXY   = HOLD Sold to open the Jan. $35 (WXYAG) We are above the call price and it appears our stock will be called away. You don’t have to do anything. If WXY closes above $35 Friday, the stock will be called away and $35 per share will be deposited in your account. We will resell the position next Wednesday, after the funds settle. This transaction will net us 6.9%

ZAB = HOLD We sold to open the Jan. $36 (ZABAJ) We are above the call price, at the moment and coming down fast with oil and a soft market today. We don’t have to do anything. If ZAB closes above $36 on Friday, the stock will be called away and $36 will be deposited in your account. We will resell the position next Wednesday, after the funds settle. This transaction will net us 13.7% If it is not called away we will resell another covered call next week.

CDE = HOLD Sold to open the March $19 (CDECS) Stock is acting well, no action is required at this time.

We may chose to rollover some of our covered calls to the next month.  We will send out an alert on Friday morning (options expiration day) with instructions.  This is simply buying back our Jan option and immediately selling a Feb or March option.

If you have any questions, please email: john@galtstock.com

If you don’t receive the Alert do to email problems, remember it is always posted on the website. You can check all of our positions and access recommendations just enter your password from the Log In page.

SwingTrader

July 28, 2009

The market keeps creeping higher; everyone expects a drop, which is probably what keeps it moving up, as shorts have to cover.  It is tempting to jump on board the momentum, but I fear we will be caught.  The best route for us is to work our way to cash.  It is best to be patient.  Resistance is at 1007

I have suggested two new positions.  A short and a long, both at extreme pricing.   We will try to play the channel for quick profits.

Key to () on each stock. Date bought, net purchase price, gain as of closing price. The net purchase price is minus the option if sold. The percentage is the gain if sold at yesterday’s closing price including buying back the option.

Action to Take:

UNG—(5/7 13.50c -7.3%) Hold.  Sold the the August $14 call (UNYHN) for $0.75  This will net 3.7% if called away.

FCX—(6/3 49.63c +7.9%) Hold Sold the August $55  This will net 10.8% if called away, if not we lower our price for bigger profits.

POT---(6/15 111.35 -14.6%) Hold  Sell to open the August $115 (PYPHC) for $1.25 or more.  This will net 4.5% if called away, and lower our cost.

AGQ---(7/6 38.25 +11.5%) Keep a trailing stop in your computer at $2.00, presently at $41.00

USO---(7/9 31.50c +10.0%)  Hold  Sold the August $36 call for $1.00  This will net 14.3% if called away.

HTM---(7/21 1.44 +3.5%) Hold  Volume is coming back.  At $1.60, enter a $0.15 trailing stop

SENEA---Buy at $23.00 or less.  This company just sold stock and punished the stock.  Look for a rebound.

DUG—Buy at $15.00

I will send out an alert if the market changes.  Remember, you can check all of our positions and today’s letter on the website, just enter your password from the HOME page

The information presented in this recommendation is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions. It may contain errors and you should not make investment decisions based solely on what you believe you have read here. Do your own research, it is your money. If you lose it, it is your responsibility, not ours or your grandmothers! The editor may or may not have a position in any securities discussed. The editor may have held a position in a security earlier, or in the future.

HOME

Back to Top