Entries from November 2006

Cha-Ching – The unwinding of the pair trade

November 30th, 2006 · 1 Comment

“I love it when a plan comes together” as Hannibal frequently mentioned on the A-Team….
It only took 2 trading days for my pair trade goal to be met with a 72% annualized return before taxes. Here is the link to my pair-trade setup post:
A Perfect Pair Trade from Down Under
As expected, the price ratio fell [...]

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Tags: Trading Ideas

A Perfect Pair Trade from Down Under

November 28th, 2006 · Comments Off

Along with my passion around finding those great long-term stock prospects, I enjoy executing various hedge and arbitrage strategies. In this post, I would like to highlight a pair trade opportunity that is too good to pass up.
Before I get started, I would like to level-set for everyone. Pair trades are one of the strategies [...]

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Tags: Trading Ideas

Walter Industries doesn’t hold much water on a value perspective

November 22nd, 2006 · 3 Comments

After selecting WLT from one of the email requests to review, I will not be adding Walter Industries (WLT) to my value portfolio mainly because of the high amount of debt in relation to the book value. My value scorecard only shows one passing mark in the dividend section with a yield of approximately 0.4% [...]

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Tags: Stock Research