Two conservative stocks I bought thurs & fri

[SBR_John]

Stock buy ideas anyone? Give one you actually bought late last week or will buy Monday.

JGT is a very short term mostly foreign bond fund hedged against the dollar. The avg maturity is only 7 months so we are talking foreign T bills with an avg credit rating of A to AA. The fund is selling at a 15%+ discount to NAV with a historical discount of only 4%.

RBS-PS is a preferred issue of RBS. The UK preferreds have stabilized as has RBS. This preferred pays quaterly and currently yields 12%. The worse is over for RBS. If they were going to default on their preferreds I think they would have already done so.

Both stocks open lower Friday but rallied to end the day with small gains.

[RealSlimShady]

John, what do you think of BP, RIG, FCX and commodity names like MOS or POT? Especially if you do a covered write strategy?

[pavyracer]

Not a good idea to buy stocks on the way down or in May because in May you sell and go Away.

[SBR_John]

John, what do you think of BP, RIG, FCX and commodity names like MOS or POT? Especially if you do a covered write strategy?

Mos dont follow.. POT its too late would sell..fcx dont follow. BP is a no brainer to do well especially with a covered write and a decent dividend. I've looked at rig... those earnings were not too impressive and now they have the black cloud following them. Look at them after they break 60 and they will probably be ripe.

[RealSlimShady]

Thanks, John. What about GS? Tempting to do a buywrite there....but again, another stock with a possible dark cloud looming.

[SBR_John]

I love GS here but could be cloudy for a while with the banks. I bought GS at 147 and sold the Oct 170 call at 9+. Looking at a GS book value of $130 per share this year and $150 next. Fines to the US will not be more than $1-2 per share so that will soon pass. By the end of next year this stock will hit $200 for sure and it may be by the end of this year. This stock would not really be over priced at $350 per share so to buy GS in the $140s is as good as it gets.