During my tenure at BloggingStocks I have expressed my opinion often about the contribution that dividends make to your overall return. Most shrewd investors, and especially "my pal Warren," know this and understand why I re-emphasize the point when I make my annual selections.

By now I hope you have had a chance to peruse my picks for 2010. If not the links below will give you another opportunity.

Continue reading Chasing Value: 2010 Dividends for Ten Stock Picks

Chasing Value: 2010 Dividends for Ten Stock Picks originally appeared on BloggingStocks on Thu, 31 Dec 2009 16:30:00 EST. Please see our terms for use of feeds.

For the first time my annual picks will include a stock option. I have written numerous blogs this year about something called "naked puts" -- that is a sell to open put position -- committing me to buy a certain number of shares by a certain date if the closing price is less than the strike price.

In this case I have selected the E*TRADE (ETFC) January 2011, $2.50 puts last traded on December 28, 2009 at $0.97 for a 39% return. If it expires, as I am betting it will, by the third Friday of that month I have no further obligation.

This type of option transaction is not available to most investors. It is marginable, but you pay no interest.

Continue reading Chasing Value: 2010 -- #10 E-Trade 'Naked Put'

Chasing Value: 2010 -- #10 E-Trade 'Naked Put' originally appeared on BloggingStocks on Thu, 31 Dec 2009 14:00:00 EST. Please see our terms for use of feeds.

The Olympics are coming! The Olympics are coming to Brasil Telecom (BTM) -- well actually to Rio de Janeiro, where BTM is headquartered, in the summer of 2016.

This company came to my attention while screening mid-caps for yield, currently a healthy 7.81% (not distributed quarterly) and a very low price-to-sales ratio of 0.52. This first glance was followed by more scrutiny with an interest in Brazilian companies for potential growth and diversification.

Continue reading Chasing Value: 2010 -- #9 Brasil Telecom

Chasing Value: 2010 -- #9 Brasil Telecom originally appeared on BloggingStocks on Thu, 31 Dec 2009 13:20:00 EST. Please see our terms for use of feeds.

If you are in the right place at the right time, then you have the most opportunity. That pretty much explains why I recently bought shares of the Raytheon Company (RTN) -- and why it is one of my picks for 2010.

Raytheon (whose name means "light of the gods") is a top 10 prime contractor to the Pentagon. The list of critical systems it makes include reconnaissance, targeting, and navigation systems. It is a leader in missile defense systems, which include the Patriot, Sidewinder, and Tomahawk systems. Raytheon also makes radios, air traffic control systems and radars, satellite communications systems and provides commercial electronics products and services as well.

Continue reading Chasing Value: 2010 -- #8 Raytheon Company

Chasing Value: 2010 -- #8 Raytheon Company originally appeared on BloggingStocks on Thu, 31 Dec 2009 12:00:00 EST. Please see our terms for use of feeds.

How hungry are you? The world is becoming hungrier all the time and Archer-Daniels-Midland (ADM) seeks to fill that need.

It is one of the world's largest processors of oilseeds, corn, and wheat. It turns corn into syrups, sweeteners, citric and lactic acids, and ethanol to fill your tank too. ADM also produces wheat flour for bakeries and pasta makers; cocoa and chocolate products for confectioners; animal-feed ingredients for farmers, and malt for brewers. It operates one of the world's largest crop origination and transportation networks, through which it connects crops and their markets across the globe.

Continue reading Chasing Value: 2010 -- #7 Archer Daniels Midland

Chasing Value: 2010 -- #7 Archer Daniels Midland originally appeared on BloggingStocks on Wed, 30 Dec 2009 17:00:00 EST. Please see our terms for use of feeds.

Many retail investors have been shrieking as General Electric (GE) hovers around ten year lows and has gone nowhere all year while almost everything else has appreciated. GE is on hot lists and not lists for 2010.

It is one of my holdover picks from 2009 and if it does not improve in the next few days will be my only loser -- for the other, a winner, see: Chasing Value: 2010 -- #3 EZCORP.

Continue reading Chasing Value: 2010 -- #6 General Electric

Chasing Value: 2010 -- #6 General Electric originally appeared on BloggingStocks on Wed, 30 Dec 2009 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: 2010 -- #4 Home Depot

Chasing Value: 2010 -- #4 Home Depot originally appeared on BloggingStocks on Wed, 30 Dec 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: 2010 -- #3 EZCORP

Chasing Value: 2010 -- #3 EZCORP originally appeared on BloggingStocks on Tue, 29 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: 2010 -- #2 Grubb & Ellis

Chasing Value: 2010 -- #2 Grubb & Ellis originally appeared on BloggingStocks on Tue, 29 Dec 2009 17:40:00 EST. Please see our terms for use of feeds.

The 5 data points were price-to-sales (P/S), price-to-book (P/B), price-to-cash flow (P/CF), dividend yield and return-on-equity (ROE). I did look at other things but these were the subject of my initial focus.

Continue reading Chasing Value: 10 Stock Picks for 2010

Chasing Value: 10 Stock Picks for 2010 originally appeared on BloggingStocks on Tue, 29 Dec 2009 16:40:00 EST. Please see our terms for use of feeds.

The march toward year end continues as three more stocks are reviewed in a search for the eventual 2010 stock picks. This year there will be nine stocks with a new wrinkle, I will add one naked put.

These options have contributed to a mind-boggling return on my 2009 portfolio, exceeding 200% to date. This has been a very unusual year, and I bet against the rampant fear in the market. I will not pretend for a moment that this is repeatable. What I will do is share my opinions and investing adventure, hoping to stimulate investor interest and dialog.

Continue reading Chasing Value: Ten stocks for 2010 -- Part 5

Chasing Value: Ten stocks for 2010 -- Part 5 originally appeared on BloggingStocks on Mon, 23 Nov 2009 13:00:00 EST. Please see our terms for use of feeds.