The Original Profit-Taker
| The Greatest Game on Earth "Why should the billionaires have all the fun?"TM The ‘Game' in a nutshell Professor Smarba supplies ‘the team’. The stock market supplies the action. The experience empowers you. ___________________________________________________________________________ #1 'LIVE' Choice (September 2010) (First posted on Tuesday, September 7, 2010. Based on closing prices of Fri., September 3, 2010.) #2 Sunpower Corporation 4.75% OF 2014 |
_______________________________________________________________________________
In a Nutshell
_________________________________________________________________________________
2010 Orders Filled Profit (Loss)
_________________________________________________________________
September 7
36 bonds at $833.60 each
455 common shares sold short at $11.47
________________________________________________________________________________
September 23
227 shares sold short at $13.48 $456.27
(Locked-in profit)
________________________________________________________________________________
2011
--------------------------------------------------------------------------------------------------------------------------------
February 7
227 shares sold short at $15.49 $912.54
(Locked-in profit)
-------------------------------------------------------------------------------------------------------------------------------
February 17
227 shares sold short at $17.50
(Locked-in profit) $1368.81
_______________________________________________________________________________
February 19
227 shares sold short at $19.50
(Locked-in profit) $1822.81
_______________________________________________________________________________
TOTAL ANNUALIZED
'LOCKED-IN' PROFIT TO DATE: 67%
(Based on our game investment of $15,000 plus a conservative 50% margin of $15,000)
_________________________________________________________________________________
THE PROFIT-TAKER GAME PLAN
(Sunpower Corporation Common Stock)
Common
Stock Price ($)
*19.50 Long-term Goal (Uptrend)
17.50 Sub Goal 3 (Uptrend)
15.49 Sub Goal 2 (Uptrend)
13.48 Sub Goal 1 (Uptrend)
11.47 Initial Purchase Price
7.65 Sub Goal 1 (Downside)
3.83 Sub Goal 2 (Downtrend)
0 Long-term Goal (Downtrend)
*Underlined blue is price of last 'filled' trade.
Gamers! To verify current price, click here.
-------------------------------------------------------------------------------
Please Note Well:
In the beginning on Sept.7,2010...
We bought 36 bonds. CALCULATION: $30,000 ($10,000 of which is margin)divided by $833.60
(price of a convertible bond) = 50 bonds.
Total investment = $ 30009
We started plan as a one third hedge. That is, we sold short 12.63 shares per convertible
bond, for a total 455 shares sold short.
CALCULATION: 36 bonds x 37.88 shares per bond = 1364 shares. So a one third hedge is 1/3 of
1364 or 455 shares sold short.
Always sell short 227 shares on each move to an upside sub goal. That is, 909 shares sold
short, divided by the 4 upside sub goals = 227.
Always cover ('buy in') 152 shares on each move to a downside goal. That is, 455 shares sold
short divided by the 3 downside sub goals = 152.
_________________________________________________________________________________
CONVERTIBLE BOND FACTS:
(Sunpower Corporation 4.75% of 2014)
CONVERTIBLE PRICE : 83.36% or $833.60
NUMBER OF SHARES: 37.88 per bond
CONVERSION VALUE : 43.45 % or $434.50
PREMIUM : 92 %
TERM CHANGE: None
MATURITY: April 15, 2014
EXCHANGE: OVER-THE-COUNTER
CURRENT YIELD : 5.70 %
ISSUE SIZE: $ 230 MILLION
INTEREST PAYMENT DATES: October 15 and April 15
CALL PRICE: No call price
_________________________________________________________________________________
UNDERLYING COMMON STOCK FACTS:
(Sunpower Corporation)
PRICE: $ 11.47
HI (52 WEEKS): $ 33.97
LO (52 WEEKS): $ 9.61
VOLATILITY (%) (52 WEEKS): 212 %
HI (LAST 3 MONTHS): $ 14.86
LO (LAST 3 MONTHS): $ 10.11
VOLATILITY (%) (LAST 3 MONTHS): 41 %
HI (PREVIOUS 10 DAYS): $ 11.21
LO (PREVIOUS 10 DAYS): $ 10.63
VOLATILITY (%) (PREVIOUS 10 DAYS): 5 %
EXCHANGE: OVER-THE-COUNTER
MARKET CAPITAL: $ 1.12 MILLION
DIVIDEND: NIL
SYMBOL: SPWRA
_________________________________________________________________________________
NATURE OF BUSINESS:
SunPower designs, manufactures and delivers high efficiency solar electric technology world
wide.
Based on more than 20 years of innovation, SunPower delivers proven solar performance to
residential, commercial and utility-scale power plant customers.
Company Official Website: http://www.sunpowercorp.com/
In a Nutshell
_________________________________________________________________________________
2010 Orders Filled Profit (Loss)
_________________________________________________________________
September 7
36 bonds at $833.60 each
455 common shares sold short at $11.47
________________________________________________________________________________
September 23
227 shares sold short at $13.48 $456.27
(Locked-in profit)
________________________________________________________________________________
2011
--------------------------------------------------------------------------------------------------------------------------------
February 7
227 shares sold short at $15.49 $912.54
(Locked-in profit)
-------------------------------------------------------------------------------------------------------------------------------
February 17
227 shares sold short at $17.50
(Locked-in profit) $1368.81
_______________________________________________________________________________
February 19
227 shares sold short at $19.50
(Locked-in profit) $1822.81
_______________________________________________________________________________
TOTAL ANNUALIZED
'LOCKED-IN' PROFIT TO DATE: 67%
(Based on our game investment of $15,000 plus a conservative 50% margin of $15,000)
_________________________________________________________________________________
THE PROFIT-TAKER GAME PLAN
(Sunpower Corporation Common Stock)
Common
Stock Price ($)
*19.50 Long-term Goal (Uptrend)
17.50 Sub Goal 3 (Uptrend)
15.49 Sub Goal 2 (Uptrend)
13.48 Sub Goal 1 (Uptrend)
11.47 Initial Purchase Price
7.65 Sub Goal 1 (Downside)
3.83 Sub Goal 2 (Downtrend)
0 Long-term Goal (Downtrend)
*Underlined blue is price of last 'filled' trade.
Gamers! To verify current price, click here.
-------------------------------------------------------------------------------
Please Note Well:
In the beginning on Sept.7,2010...
We bought 36 bonds. CALCULATION: $30,000 ($10,000 of which is margin)divided by $833.60
(price of a convertible bond) = 50 bonds.
Total investment = $ 30009
We started plan as a one third hedge. That is, we sold short 12.63 shares per convertible
bond, for a total 455 shares sold short.
CALCULATION: 36 bonds x 37.88 shares per bond = 1364 shares. So a one third hedge is 1/3 of
1364 or 455 shares sold short.
Always sell short 227 shares on each move to an upside sub goal. That is, 909 shares sold
short, divided by the 4 upside sub goals = 227.
Always cover ('buy in') 152 shares on each move to a downside goal. That is, 455 shares sold
short divided by the 3 downside sub goals = 152.
_________________________________________________________________________________
CONVERTIBLE BOND FACTS:
(Sunpower Corporation 4.75% of 2014)
CONVERTIBLE PRICE : 83.36% or $833.60
NUMBER OF SHARES: 37.88 per bond
CONVERSION VALUE : 43.45 % or $434.50
PREMIUM : 92 %
TERM CHANGE: None
MATURITY: April 15, 2014
EXCHANGE: OVER-THE-COUNTER
CURRENT YIELD : 5.70 %
ISSUE SIZE: $ 230 MILLION
INTEREST PAYMENT DATES: October 15 and April 15
CALL PRICE: No call price
_________________________________________________________________________________
UNDERLYING COMMON STOCK FACTS:
(Sunpower Corporation)
PRICE: $ 11.47
HI (52 WEEKS): $ 33.97
LO (52 WEEKS): $ 9.61
VOLATILITY (%) (52 WEEKS): 212 %
HI (LAST 3 MONTHS): $ 14.86
LO (LAST 3 MONTHS): $ 10.11
VOLATILITY (%) (LAST 3 MONTHS): 41 %
HI (PREVIOUS 10 DAYS): $ 11.21
LO (PREVIOUS 10 DAYS): $ 10.63
VOLATILITY (%) (PREVIOUS 10 DAYS): 5 %
EXCHANGE: OVER-THE-COUNTER
MARKET CAPITAL: $ 1.12 MILLION
DIVIDEND: NIL
SYMBOL: SPWRA
_________________________________________________________________________________
NATURE OF BUSINESS:
SunPower designs, manufactures and delivers high efficiency solar electric technology world
wide.
Based on more than 20 years of innovation, SunPower delivers proven solar performance to
residential, commercial and utility-scale power plant customers.
Company Official Website: http://www.sunpowercorp.com/
Suggested 100% Ideal Actual Rating
Is the premium on the bond under 20%? 10% 0%
Of the situations being considered, how does 50% 45%
the volatility of this common stock compare
with the other candidates?
Is the market price of the convertible bond 10% 10%
under $1000 (par value)?
Does the yield (%) paid by the bond, less the 5% 5%
common stock yield, at least offset the interest
paid to your broker for margin privileges?
Does the company pay dividends on the stock? 10% 10%
( The investor must pay declared
dividends on short sales).
Is there a record of convertible premiums? 5% 5%
Does the company have assets in excess of the 5% 5%
face value of the bonds?
Is the company in an industry in which there is 5% 5%
a possibility of growth?
TOTAL: 100% 85%
Is the premium on the bond under 20%? 10% 0%
Of the situations being considered, how does 50% 45%
the volatility of this common stock compare
with the other candidates?
Is the market price of the convertible bond 10% 10%
under $1000 (par value)?
Does the yield (%) paid by the bond, less the 5% 5%
common stock yield, at least offset the interest
paid to your broker for margin privileges?
Does the company pay dividends on the stock? 10% 10%
( The investor must pay declared
dividends on short sales).
Is there a record of convertible premiums? 5% 5%
Does the company have assets in excess of the 5% 5%
face value of the bonds?
Is the company in an industry in which there is 5% 5%
a possibility of growth?
TOTAL: 100% 85%
The Profit-Taker Copyright 1978, 1980,1986, 2009
All rights reserved
Permission granted for personal and educational use only. .
Any unauthorized fund management and/or investment newsletter advice or advisory service utilizing this
intellectual property/concept as their own will constitute an infringement of this copyright.
All rights are reserved to take any action available to recoup all resulting financial proceeds and damages
therefrom awarded by the appropriate court in breach of this copyright.
DISCLAIMER
This game or website is not an endorsement of any security.
Information contained in this Website and attachments is of a general nature only and is not intended to constitute
advice for any specific situation. The terms of referral bonuses may vary and are only applicable in the states and
provinces for which they are approved. Advice from a suitably qualified professional should always be sought in
relation to any particular matter or circumstance.
All rights reserved
Permission granted for personal and educational use only. .
Any unauthorized fund management and/or investment newsletter advice or advisory service utilizing this
intellectual property/concept as their own will constitute an infringement of this copyright.
All rights are reserved to take any action available to recoup all resulting financial proceeds and damages
therefrom awarded by the appropriate court in breach of this copyright.
DISCLAIMER
This game or website is not an endorsement of any security.
Information contained in this Website and attachments is of a general nature only and is not intended to constitute
advice for any specific situation. The terms of referral bonuses may vary and are only applicable in the states and
provinces for which they are approved. Advice from a suitably qualified professional should always be sought in
relation to any particular matter or circumstance.
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |