Doctor Jack's Stock Medicine

[IIC]

No no, let there be no mistakes here.

LOL...Well...At least I finally got a dialogue w/ you...I thought I was invisible on your thread...Nice to know that you finally recognized that I do exist...Thanks.

As far as HOM...I have no idea whether or not anything Stocklemon said is true...I am not at all interested in HOM myself anymore anyway.

But that site you posted is an IR/PR site...I know them well.

So now we know each other...Let's get down to biz...I was just givin' you a hard time(Sort of an initiation process...Not that I'm in charge of it or anything)...Just my nature...Now let's forget the nonsense and make some bux...AND BTW...WELCOME JACK...Best, Doug(IIC)

[Jack Haddad]

Companies with the most cash

Based on most recent regulatory filings, industrila companies in the Standard & Poor's 500 with the most cash, in billions, are the following:

1. Exxon Mobile 36.5
2. Microsoft 34.8
3. Johnson & Johnson 17.2
4. Pfizer 15.5
5. Cisco Systems 15.0
6. Motorola 14.6
7. Aetna 14.4
8. Merck 12.4
9. IBM 12.3
10. Hewlett Packard 11.9

[Jack Haddad]

Amd

AMD is an interesting play here. The short term indicator is bearish, especially after closing below the 30.65 to 30.70 pivatol point. The 6-months chart reveals a support of 29.00. For those who are looking for a swing short trade, initiate a position on a gap up come tomorrow.

However, fundamentals are quite bullish for the long run. The company said that it will increase its capacity at its primary manufacturing center in Germany fourfold from its 2005 levels by the end of 2009. AMD now holds 26% of the lucrative U.S. server-chip business and 48% of multicore processors. Most significantly, AMD's gross margin passed Intel's for the first time last quarter -- 58.5%, vs. 55.1%.

Once could accumulate the shares and hedge with covered calls. The august and september 30.00 strikes are very premium juicy. By the time those options expire, the stock would have created a support and reverse trend to the upside.

[IIC]

FWIW...I mentioned something similar in the POTW thread over the weekend...From Briefing this morn:

9:01 ET Home Solutions responds to inquiries regarding acct receivables, guidance, stock sales (HOM) 9.71 :Co responds to investor inquiries concerning its Accounts Receivable and other matters. In executing its disaster relief work from Hurricanes Katrina and Rita, which the co classifies as recovery services, many of the receivables are paid over longer time periods due to govt agencies and insurance cos reimbursing claims for work performed. As a result, receivables have increased in absolute dollars and in DSO's, although at a more favorable rate than the restoration and recovery industry overall. The co expects the DSO's to decrease throughout the year as its business shifts to build-back work during Q2 and throughout the balance of the year. During Q2, the co has already collected insurance-backed receivables, valued at $1.5 mln that were over 150 days old. Over the past two years, the co has experienced bad debt expense related to receivables of less than 1% of revenue. The co's $10 mln credit facility remains unused. The co also says it remains confident that it will meet or exceed its recently updated outlook. Co says that "Since the conclusion of the Mayoral election, work has increased in New Orleans." Finally, the co notes that recent sales of stock by the C.E.O. were the first such sales by the executives since the co's inception. The sales were conducted for diversification and estate planning purposes. In connection with the sales, Mr. Fradella exercised options to acquire an additional 1.6 mln shares at a cost of $2.8 mln, significantly increasing the number of shares he directly owns.

[Jack Haddad]

Hov

Decided to go with HOV instead. Snatched 3 blocks at 32.90 and wrote 300 June 30 calls for 3.40 in hope that my shares will get called away. I'll take
.50/contract for a return.

Added 3 blocks at 30.73, and sold the 300 june 30.00 calls at 1.40/contract. The 30 min chart is oversold. Today's drop, though steep, is well hedged by the calls I wrote earlier on 5/26/06

[Jack Haddad]

Tso

http://www.stockta.com/cgi-bin/analy...nd=&mode=stock

The above 6-month chart on TSO is very interesting. Note the inverse head-and-shoulder pattern which spanned from Feb 15 to March 8. This has cuased the stock to propel to a a 52 week high of 75. Thereafter, the stock has recently trended down to test the intermediate term support of 65, but was noty successful in breaching the 6 months support of 60.75.

At this hour, the stock has gained strength on the hourly...and since horizontal support stands a good support at 62.50, I did the following: Purchased shares at 65.40, and wrote the June 65 strike calls for 2.85/contract. I feel this strategy provides a good hedge for the time being. I will update all changes/executions later.

Sold 3 blocks of TSO at 70.54, and bought back 300 June 65.00 calls at 6.10 for a gain of 1.85 points. I could have held until epiration. However, TSO has a habit of retreating close to its strike price 10-14 days before expiration day. Also, I needed to free some capital for other plays.

[Jack Haddad]

Pten

For those who wish to play this stock for a trade: If you want your shares unhedged, buy above the pivatol mark of of 31.10 and look for the resistance of 32.50. However, current support is at 30. I bought 3 blocks at 30.54, and wrote the June 30 calls at 1.15/contract. Energy stocks shall do great in the months to come.

http://www.stockta.com/cgi-bin/analysis.pl?symb=PTEN&num1=13&cobrand=&mode=stock

[Jack Haddad]

Tso

Bought TSO at 69.30 for a scalp

[Jack Haddad]

Tol

Bought 5 blocks at 27.30-27.40, and wrote 100 july 30 calls for .65/contract, and 400 july 25 for 3.10/contract. I believe in this stock more than ever.

[DSteckler]

Bought 5 blocks at 27.30-27.40, and wrote 100 july 30 calls for .65/contract, and 400 july 25 for 3.10/contract. I believe in this stock more than ever.

If you liked it at 50 you'll really like it at 40, and love it at 30....<g>

[Jack Haddad]

Tso

Bought TSO at 69.30 for a scalp

Wrote 35 June 30.00 calls at 1.20/contract.

[studentofthemarket]

Options Shmoptions

Folks, CEO Terry Semel has agreed on an annual salary reduction from 600,000/year to 1 dollar/year through 2008 in exchange for 6 millions of the company's stock options at an exercise price of 31.59 (last Wednesday's closing price). Also, as part of this renegotiated salary contract, Semel will be eligible to receive a bonus of up to one million stock options annually through 2008.

Aside from the bullish fundamentals and technicals, which I will be commenting on later in excruciating details, I consider this gesture very tenacious and assuring of higher share prices to come!

1 buck a year through 2008. Hmmm This is 2006, so he's giving up 3x600,000 - 6 bucks(if you consider the contract starts with the 2006 salary), of which I'd imagine he's already gotten nearly 300k because we're nearly halfway through the year) = 1.79999 etc. M in actual salary, for 6 million options. And you think this is some great thing? The stock price goes up a buck,and he's like $4M to the good. And that doesn't count the potential bonus options that could be as much as 3M total for the period. So suddenly he's $3M to the good on TOP of the $4M he gets base? And all the price has to do is go up a little bit over the next 3 years? Unless his required holding period is like 10 years. This is a joke.

Just how is this swell news for the shareholder? This guy just got one of the sweetest deals around and people think that is assuring of higher share prices? ya all it has to do is go up a buck. Hell even less than a buck and he's rolling in money. compared to what he was earning in salary over the same time period.

this is a giant warning siren! It Looks like he's going all out there. but based on the info quoted above. There's nothing tenacious or assuring about it.

Yahoo investors are more likely to BooHoo than Yahoo.

Not to mention the fact that if the Repubs bumble and the tax the INTERNET folks get into office, the whole online commerce world will get turned upside down.

anyway, that's my take.

studentofthemarket

[Jack Haddad]

1 buck a year through 2008. Hmmm This is 2006, so he's giving up 3x600,000 - 6 bucks(if you consider the contract starts with the 2006 salary), of which I'd imagine he's already gotten nearly 300k because we're nearly halfway through the year) = 1.79999 etc. M in actual salary, for 6 million options. And you think this is some great thing? The stock price goes up a buck,and he's like $4M to the good. And that doesn't count the potential bonus options that could be as much as 3M total for the period. So suddenly he's $3M to the good on TOP of the $4M he gets base? And all the price has to do is go up a little bit over the next 3 years? Unless his required holding period is like 10 years. This is a joke.

Just how is this swell news for the shareholder? This guy just got one of the sweetest deals around and people think that is assuring of higher share prices? ya all it has to do is go up a buck. Hell even less than a buck and he's rolling in money. compared to what he was earning in salary over the same time period.

this is a giant warning siren! It Looks like he's going all out there. but based on the info quoted above. There's nothing tenacious or assuring about it.

Yahoo investors are more likely to BooHoo than Yahoo.

Not to mention the fact that if the Repubs bumble and the tax the INTERNET folks get into office, the whole online commerce world will get turned upside down.

anyway, that's my take.

studentofthemarket

Let's allow time to expire and tell us something.

[Jack Haddad]

Aapl

Purchased 5 blocks at 63.33 and sold 500 June 62.50 calls for 2.60/contract. The stock has not participated in the recernt 3-day rally and is due for a pop-- all the reason to guarantee my deep in the money hedge and pocket a nice premium return upon June option expiration in three weeks.

Bought back 500 calls at .80/contract and wrote 500 June 57.50 at 3.40/contract. Testing the 59.25 os last week's low is imminent!

[Jack Haddad]

Tol

Bought 5 blocks at 27.30-27.40, and wrote 100 july 30 calls for .65/contract, and 400 july 25 for 3.10/contract. I believe in this stock more than ever.

Sold 1 block at 27.67, and covered 100 July 30.00 calls at .80/contract to take some profits off of the table.