drbubb Posted July 27, 2013 Report Share Posted July 27, 2013 PAIRS Portfolio(s) : "Hedged" using Long, vs. Short positions Let's start with this Pair, as a Trial trade: (Another sign of the emerging slowdown in earnings in the US?): Amazon Reports Small Loss as It Focuses on Investments SEATTLE - Amazon's razor-thin profits turned to razor-thin losses in the last quarter, as the Internet commerce giant continued to plow money into warehouses, digital content and other big investments that it says will pay off down the line. = = = (in edit) : SEE also : post # 234 below, confirming the slowdown Amazon vs. Goldcorp: The Stock I Would Buy Friday, July 26th, 2013 / By Michael Lombardi, MBA If I were Carlo, the first thing I would recognize is that the greatest investor fortunes of our lifetime have been made by getting into investments when they are the most depressed and holding on until they come back. Today, investors can go out and buy a share of : Amazon.com, Inc. (AMZN / NASDAQ) at $300.00 a share. ... update : 1yr-wBB The company lost money in the most recent quarter. It trades at 100-times expected earnings for 2014 and doesn’t pay a dividend. There is huge demand for Amazon.com shares, which explains why the price has hit a new record high. Also, today, investors can go out and buy the shares of : Goldcorp Inc. (GG / NYSE) at $28.00 a share. ... update : 1yr-wBB Goldcorp is down 50% from its 2011 high, the stock trades at 14-times earnings, and it pays a dividend equal to a yield of 2.13%. The company produces about 600,000 ounces of gold a quarter at a cost of between $1,000 and $1,200 an ounce. Demand is falling for Goldcorp shares as gold prices have fallen and the company has taken some write-offs to recognize the lower price of gold. By the way, the shares of gold companies relative to earnings are selling at the lowest level in decades. Sure, there is risk if gold prices fall below $1,000 an ounce. But there is also a huge reward if gold prices go to $2,000 an ounce. Hence, the risk/reward play is always there for an investor like Carlo to act upon. He just needs to eventually take action on one of those plays when the opportunity is presented. === /more : http://www.profitcon...ck-i-would-buy/ Total $20,000 position : ==== Long : $10,000 : GG--- : $28.74 : x +348 shs : +$10,002 Short : $10,000 : AMZN : 312.01 : x - 032 shs : ($ 9,984) DrB PORTFOLIO-0 : 26-July (SPX at $xxx.xx) ========= : Ov'all Value : $100,000 ============================== PERFORMANCE : Portfolio-01 Date-- : $Net Asset : Week% : Overall : Prof/Loss : Marg./Prem : Cash - As Pct. : --SPX-- ===== 02-Aug : $100,000 : - 0.00% : - 00.0% :$-00,000 : $ 08,020 : $ 91,980 : 91.9% : 1690.91 09-Aug : $100,832 : +0.83% : +00.8% : $ 00,832 : $ 20,807 : $ 79,193 : 78.5% : 1691.42 16-Aug : $108,084 : +7.19% : +08.1% : $ 08,084 : $ 20,807 : $ 79,193 : 73.2% : 1655.83 23-Aug : $106,135 : - 1.80% : +06.1% : $ 06,135 : $ 20,171 : $ 79,829 : 73.2% : 1663.50 30-Aug : $105,952 : - 0.17% : +06.0% : $ 05,952 : $ 14,618 : $ 85,382 : 80.6% : 1632.97 06-Sep : $103,869 : - 1.97% : +3.87% : $ 03,869 : $ 14,608 : $ 85,392 : 82.2% : 1655.17 13-Sep : $102,770 : - 1.06% : +2.77% : $ 02,770 : $ 14,608 : $ 85,392 : 83.1% : 1687.99 =============== Link to comment Share on other sites More sharing options...
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