Stocks

Covered Call Trades on ConocoPhillips and Eli Lilly in our Enhanced Dividend Income Portfolio

by Glenn Busch February 6, 2012
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The end of 2011 provided a lot of opportunities to sell covered calls against our oil and energy positions. We already sold one covered call against our ConocoPhillips (COP) position that expired worthless in November of 2011 and in January of this year we had another one.

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RealD a Real Downer for Regal Entertainment Group

by Glenn Busch January 12, 2012
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Regal Entertainment Group (RGC) owns 1,222,780 shares of RealD (RLD), maker of digital 3D cinema systems. At one point, Regal’s holdings were worth $42.8 million. Now? Not so much. Shares in RealD are trading around $8.78, a 74% decline from its highs set back in May of 2011. Regal Entertainment Group’s stake in RealD is now worth around $10.7 million.

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The DNA Sequencing Revolution

by Glenn Busch January 10, 2012
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The industrial revolution was sparked by the declining cost of engines and their increasing efficiency. Soon other businesses other than mining operations, like textile manufacturing, were transformed by the application of cheap and efficient power. The same thing is happening today with our data revolution.
Cheaper and faster data is and will have profound effects on businesses other than computing, like healthcare.

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Amazon vs. the Retailers

by Glenn Busch January 6, 2012
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I hate shopping. I just want to get what I want and get out of there. I don’t want to waste my time driving, parking, wandering the store, and then having to go to another store if I can’t find what I want. I love shopping on the internet. I’m always near a computer and if I need something with just a few clicks of the mouse it is on its way. The best part is usually the things I want are cheaper online. The shipping costs may change the cost structure but I’m glad to pay the shipping costs because it keeps me away from stores and frees up my time to do something else. I’m not the only one.

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An Opportunity to Short Circuit City Again

by Glenn Busch December 29, 2011
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In the US the debate is whether the country can support one or zero highly profitable big box chains. Best Buy – the bears argue – is the showroom for Amazon. In Australia as I said we still have two chains – its as if Circuit City were still around. Moreover because Harvey Norman has a balance sheet it can survive quite a long time and Gerry Harvey is prone to say it is the competitor that will go out of business. But Harvey Norman really is losing share to JB Hi Fi and ultimately both will lose share to the internet.

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Why is Regal Entertainment Group’s Revenue Increasing When Attendance is Declining?

by Glenn Busch December 20, 2011
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The problem facing movie theaters is less people are going. As of March of this year, U.S. and Canada movie theater attendance was down 20% from 2010. The summer blockbuster season did not fare any better. About 543 million tickets were sold this summer, the lowest number since 1997 when 540 million tickets were sold. This holiday season is not off to a good start either. So how are the multiplex theater operators, who are heavily dependent on U.S. and Canada attendance like Regal Entertainment Group (RGC), increasing their revenue?

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