Trading EXC, AEG, ADI, VALE – 03092017

Written by schattenmann

Last week the options of EXC and ADI were bought back with profit. I am out of these stock and let it go for a while, because i want to concentrate myself to quality only. Finding value according to your own parameters is not that easy nowadays. High valuation of the market with above average of P/E and other ratios makes it not easy to find discount.

I closed my position in AEG because that stock does not fit my value parameters anymore. I have mentioned it earlier this year that i want to reduce my portfolio by numbers, what i am doing for now. The stock moved about 12 % since my entry and i decided to take the profit and go away.

Vale is a stock i want to own “forever” as long as the move goes on. The Company has still a good P/E ratio of under 11 and high market cap of above 185 B USD. The BBB- rating should watched closely but the dividend yield of 9,5 % too. As long as these quality companies serve us, they should be hold.

I closed 50 % of a wonderful +38 % move and realized some profits. Will follow price action, may be sell some  options. Nex price target around 15 area.

Next week i plan to buy a stake in CSCO and sell more options on that company. I like fundamentals and technical as well.

The general market is closing near ATHs, seeming to ignore everything (valuation, N Korea), we can not know how this story goes on. I am fully aware that a small shift in the bond markets or something else can move the market for a 10 % move in each direction.  This is a risk every investor / trader has to live with and time will tell the story.

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