2013 Articles

Bank of America (BAC) – was the most recent addition to the open portfolio. We hold 10 contracts purchased for $5.50 and the options are currently going for $5.90, showing a nice increase in the last week. The stock chart for BAC looks promising for another quick Nails DITM calls win without the need for a rebuy. The rebuy price is fine for now, however if BAC pulls back, it may go up a bit. Watch for changes listed in the open positions chart.

Microsoft Corporation (MSFT) – was added on Friday the 13^th. We have 10 contracts with an average price of $9.30 with the options currently going for $9.10. MSFT looks to be on the verge of trending back up some. Long and mid-term averages are still trending up, but the 21-day short term average has peaked and is going down reflecting the most recent drop in share price. I’d say that share price will start to trend back up without the need to rebuy or change the rebuy price.

Intel Corporation (INTC) – has been on the scorecard since Dec 11^th. We have 10 contracts with an average price of $5.00 and the options are doing nicely and currently going for $5.35. INTC seems to be peaking but we have yet to reach our target selling price. We may need to watch the share price come back down, grab additional contracts when the price is right and wait for the next peak. However, even though the profit wouldn’t be stellar – if you chose to exit now, that would be OK too.

Procter & Gamble (PG) – has been with us since December 6^th. We have 30 contracts with an average price of $13.40 which could be sold for $13.10 or so today. We try not to recommend selling for a loss though, so it would be a good idea to keep your PG options for a bit longer. The rebuy price for PG does not need to be changed at this time and since share price here also looks like it will start to trend upward, we are in great shape to take advantage of the next bounce upward.

Verizon Communications Inc. (VZ) – has been on the open portfolio list since November 27^th and we have 20 contracts with an average price of $7.80. The options are currently going for $7.20 so we will need to make up some ground with VZ before we can post a win with this position. The stock chart here too looks promising for the coming weeks. If the upside potential I am seeing in most of the charts is realized, we’ll have a very Happy New Year. In the next week or two – it may be prudent to buy more VZ options to get our price down, however – I doubt VZ will drop to the current rebuy price. I’m going to up the rebuy to $47.10.

Target Corporation (TGT) – has been on the list since November 25^th. There are now 20 contracts with an average price of $7.40 and the options are currently going for $7.10. Here again, I am seeing loads of upside potential with the slow stochastic chart which tell me that share price should soon be on the rise again. The rebuy price needs no adjustment at this time.

EMC Corporation (EMC) – was added on November 4, 2013. We have 10 contracts and the going price is about 40 cents higher than our $4.60 average. Both short term moving averages seem to be bottoming out and the long term moving average (200-day) is rather level. EMC seems to be at the start of a nice bounce. One that we’ll ride up and cash out once we reach our target GTC selling goal.

Cisco Systems, Inc. (CSCO) was added to the open portfolio on 10/07. We hold 40 contracts at $4.60 average and the options are going for about 20 cents less than our average. Cisco’s stock chart is wavering, the short term averages are finally bottoming and the long term average is still trending up ever so slightly. Overall market performance will continue to be a factor in where this one will go in the next few weeks. New support levels suggest a change in the rebuy price, however our average price will not significantly improve at that level, so I’ll be leaving it where it is for now.

Kraft Foods Group Inc. (KRFT) has been on the scorecard since 08/05 and we hold 40 contracts in our virtual portfolio at $6.60 with the options selling for $5.50. If we hit the rebuy price on this one – it would be a good opportunity to double down or buy as many as you can. Last month I recommended a double down play on the rebuy, so if you were able to get your own average price down significantly – you should be in good shape on this one really soon. If you didn’t double up – no worries, buy as many as possible to lower your average at the next rebuy, then we should see this one winning soon.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Today, I found a few nice choices I could have gone with, and decided to add Costco Wholesale Corporation (COST) to the DITM portfolio this morning as COST looked like it would offer a fast turnaround for a quick win. Quick wins are always the goal. Not always what we get, but what we strive for.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and have room for quantity. From open to close, the place is always busy, always hopping, and always clean.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop, with the exception of the Kirkland brand of products which are Costco’s own brand of merchandise.

Friends and I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 642 warehouses in the United States and nine other countries and employs 103,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $106.46 billion annually, $6.44 billion in the bank and $4.99 billion in debt. It has a return-on-equity (ROE) of 17.09% and forward price-to-earnings (P/E) ratio of 21.77, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

Last month, the company posted a new 52-week high mark of $126.12 and the stock closed yesterday, trading at $117.99 which is a sharp discount from the high water mark. So now showing a great buy opportunity.

Please note that COST options usually carry an extra buck or two in premium over the standard Nails formula because the stock price is up there and it can support it. It’s a percentage thing and rather consistent.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

BAC is the most used bank as it provides unmatched location convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,750 ATM’s and award-winning online banking with 29 million active users, serving clients in more than 150 countries.

Bank of America is once again a good buy. The stock closed yesterday at $15.18 which is still cheaper than many of the options that are recommended, and is down from the most recent high by almost a point. With the options going for cheap, and the stock priced lower, you could up the number of contracts you buy and then sell early, say at 50 cents over the average price – if you wanted to mix it up a bit. I say that because cheaper stocks have to move a bit more percentage wise to get us our win, so if you knock down your GTC target, it’s more in line with what we can expect the stock to do short term.

BAC, even though priced low, has performed as outlined in the Nails strategy many times, so if filled we will stay with our normal target exit point, unless the market pulls the rug out and we end up lowering expectations across the board.

Here are some stats to note: Forward P/E – 11.50; PEG Ratio – 1.02; Return on Equity – 3.71% (the reason for the cheapness); Revenue – $80.69 billion; Cash – $495.00 billion; Debt – $566.94 billion; and operating cash flow – $56.88 billion.

Today’s recommendation looks to be another quick score, like we have done many times with this choice and comes with a tiny premium that makes it even more attractive. Please watch the GTC that is posted if we get our fill, should I feel the need for us to cut and run on this one early.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

With the market dropping a bit from recent highs, more stocks will line up nicely with the Nails strategy. Additionally, more choices in the open portfolio will hit rebuy prices. If it ever comes down to a choice between buying a new position or rebuying an existing position, we recommend taking care of what you have first.

This morning, I am going with one of our Nails long time favorites, United Technologies Corporation (UTX). Getting a Win out of UTX isn’t as hard as getting in on the options for the right price, but with just about everything looking good and prices being soft, we should be able to get on base with UTX at the price listed. Please note that I have not priced the option anywhere near the last trade, but where it should be selling for now, as share price has dropped a few points since the option traded last.

As you know from previous columns, UTX specializes in technology products, building systems and aerospace. The options for this company have been elusive, to say the least, but it is better to go after the best companies and not get filled – over going with a so-so company that fills and ends up being a so-so choice.

There is nothing so-so about UTX. Anyone who has spent time in an elevator or used an escalator or moving sidewalk is familiar with their Otis segment, and one would be equally hard-pressed to find someone who has never heard of Carrier cooling systems, Pratt & Whitney jet engines or Sikorsky helicopters – all of which are UTX brands.

United Technologies is a mega-conglomerate that is vastly diverse and on the cutting edge on technological innovation. They employ about 218,000 people and have been around since 1934; UTX is here to stay and has been a valuable component in my DITM strategy.

In looking at the stock chart – there is really good support several points down and the option price quoted is reasonable for a stock selling at over $100.00, but please don’t overspend, the price listed is not too low.

Here are the numbers to take note of: Revenue – $62.31 billion, Forward P/E ratio – 15.72, PEG ratio – 1.32, Return on equity – 19.73%, Cash – 4.62 billion, Debt – 21.19 billion, and Operating cash flow – 6.26 billion.

Please be sure to set a GTC sell order for $1.00 more than the purchase price to lock in a $1000 gain when the price hits our sales target.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

Today I had a late start and will go with Microsoft Corporation (MSFT) and be quick. MSFT tanked in mid-July with tablet sales and Windows 8 sales as mostly the cause. Share price been going up since then, very choppily, so with the most recent drop we have a very nice Nails opportunity.

The company remains one of the strongest out there, period. You can let the numbers be your guide. MSFT has a Forward P/E ratio of 12.69, revenue remains very nice at $80.37 billion, cash in the bank at $79.93 billion, debt of only $16.52 billion in comparison with operating cash flow of over $28.55 billion which is excellent in anyone’s book. I wish my personal balance sheet looked that nice, even proportionally. Return on Equity is a strong at 30.09%.

If your order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

We’ve had a pretty good year with INTC using the Nails strategy. And, once again looking like a nice buy opportunity. Share is actually up from a recent dip in share price, but in looking at the moving averages I am seeing plenty of continued upside potential. With upside potential, there is still an opportunity to buy and get another INTC win and the options are going for a really good price too.

Here at Nails we have stated many times – Intel continues to be one of the most dominant companies in the world. It defines the term “wide moat,” meaning Intel has very few competitive disadvantages. They control the playing field with an 80% market share and this makes them one of the single best stocks in the world. And they will continue to perform.

INTC closed trading yesterday at $24.82, which is not down much from the 52-week high of $25.98 posted in June, so if you think I’m playing it too close to the high, then go ahead and sit it out. The numbers are not perfect even when the technical indicators are pointing to higher share prices ahead.  If it were my money in the pot, I’d definitely buy INTC, but maybe not 10 contracts. I’d scale it back a bit.

Let’s look to the numbers:

Revenue:  52.35 billion, Forward P/E:  13.13, Return on Equity:  18.07%, Cash:  19.22 billion, Debt:  13.70 billion, Operating Cash Flow: 20.76 billion.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

3M has been a consistent winner for Nails and the stock chart looks right, I can’t resist taking a swing. Using a basket of stocks is one of the better parts of the Nails strategy; knowing you can win with the same choice again and again. Although with 3M, it can be a challenge getting on base.

3M is a highly profitable, technologically differentiated innovation machine that is best known for everybody’s favorite reminder: the Post-It Note. I doubt you could find a home or office anywhere without a cube of the infamous sticky notes, as they are a fixture essentially anywhere and everywhere.

Beyond the Post-It, 3M has a lot to offer consumers and investors, operating in six business segments: industrial and transportation; health care; safety, security and protection services; consumer and office; display and graphics, and electro and communications.

Though they are based in Minneapolis, MN, the company spans the globe. In fact, their exposure to faster growth markets abroad is phenomenal. Two-thirds of their revenue is currently derived internationally.

Looking at the stats: Forward P/E:  17.38, Return on Equity:  25.33%, Revenue:  30.69 billion, Total Cash:  3.31 billion, Total Debt:  5.78 billion, and Operating Cash Flow:  5.56 billion.

Please remember to set a GTC (Good till Cancelled) selling order at $1.00 over your purchase price as soon as your order fills to lock in a win when the options reach the target selling price.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

PG’s stock chart is good, so I will just grab my shopping cart and head down the cleaning aisles at the grocery store for another chance to score a quick win.

Proctor & Gamble probably makes just about every household consumable supply you have. You can go to http://www.pg.com/en_US/brands/all_brands.shtml and check out how often a P&G product falls into your household shopping cart. They have 12 brands that have sales over a billion dollars each and 19 brands that top $500 million in sales each. That, my friends, is a lot of soap. Here is the alphabetical list of brands that top a billion in sales: Always, Ariel, Bounty, Braun, Charmin, Crest, Dawn, Downy, Duracell, Fusion, Gain, Gillette, Head & Shoulders, Iams, Mach 3, Olay, Oral B, Pampers, Pantene, Tide, and Wella. How many of these do you buy?

Revenues are posted at $84.63 billion, $14.15 billion in operating cash flow and $7.70 billion in cash or equivalents on the balance sheet. Debt is more than twice operational cash flow, it comes in $34.78 billion, but the company is such a staple of consumable supplies and they’ve been around since 1837 and I don’t plan to stop showering or shaving or moisturizing anytime soon.

The company has a return-on-equity (ROE) of 17.35% and forward price-to-earnings (P/E) ratio of 17.97 is a bit higher than I like. But, once again – it’s the stock chart I like today that spells out opportunity for the Nails strategy.

Please don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as we hit the target.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Share price is down from last month’s peak and there are several layers of support making this multi-national conglomerate a good deal. The option prices are excellent as well – cheaper than the Nails formula – so good news all around.

If you venture out to the GE website and look up their products and services listing – it is quite the list – as GE now covers just about everything from household appliances, aviation equipment and asset management, power generation and distribution, water processing and so on – even entertainment and banking. You could almost say you have a diversified portfolio with just this one purchase.

Here are the numbers to note:  Revenue:  144.91 billion / Forward P/E:  15.00 / Return on Equity:  11.50% / Cash:  10.20 billion / Debt:  388.10 billion / Operating Cash Flow: 28.42 billion.

Debt is outrageously high but the company has a track record of managing debt well and I have found that older companies have more of a tendency to keep a lot of debt. GE has been around since 1892, so that qualifies as not just old but quite stodgy too. The company was originally founded by Thomas Edison and funded by JP Morgan, no lightweights in American History.

Please remember that once your order is filled to set a GTC (good ’til cancelled) order at $1.00 higher than your average cost to lock in a $1000 gain.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

Today, I am looking add Best Buy (BBY) to the portfolio with Black Friday deals behind us, I’m seeing upside potential for a Nails DITM strategy win.

Best Buy is the nation’s largest consumer electronics retailer selling office products, consumer electronics, entertainment software, appliances, and related services in the United States, Canada and China.

In the past year share price has almost tripled. It has shot up like a rocket and the recommendation comes when PS4’s and Xbox One’s are going to fly out of the stores in time for a nice holiday spending spree.

Additionally, BBY is still a Major League company with a solid balance sheet.

Revenues are posted at $48.13 billion, $2.03 billion in operating cash flow and $1.67 billion in debt and total cash on hand of $2.17 billion. Current return-on-equity (ROE) is down by 6.92%, which can explain the drop in share price. They have a forward price-to-earnings (P/E) ratio of 14.61 but it’s the stock chart and technical indicators I program into the chart that show nice upside potential for this one.

Please remember to post a GTC selling price once your order is filled to automatically cash out with a win when the price is right.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

We booked eight wins in November which is another nice tally following our 10 wins in October.

To keep the streak going, we need to take a look at what we’ve got and go over our expectations for the month with those options still in the open portfolio. This morning, here is where we stand with each.

Verizon Communications Inc. (VZ) – was added to the open portfolio on Wednesday. The new position is now posted to the stat book and we are off to the races.

Amgen Inc. (AMGN) – was added to the open portfolio last Friday and needs no adjustments yet.

EMC Corporation (EMC) – was added on November 4, 2013. We have 10 contracts and the going price is right at even money. Both short term moving averages seem to be bottoming out and the long term moving average (200-day) is rather level. EMC hasn’t been moving enough up or down to change the outlook, improve the price or move off to the win column. Thankfully, it hasn’t been going sideways for long, but it’s hard to predict movement when there isn’t any.

Cisco Systems, Inc. (CSCO) was added to the open portfolio on 10/07. We are currently down about 55 cents from our average price on the 20 contract we hold. Cisco’s stock chart is wavering, the short term averages are still trending down and the long term average is still trending up ever so slightly. Overall market performance will continue to be a factor in where this one will go in the next few weeks. It is time to readjust the rebuy price to account for current support. Share price is really close and a rebuy will improve the average price quite a bit.

Kraft Foods Group Inc. (KRFT) has been on the scorecard since 08/05 and we hold 40 contracts in our virtual portfolio at $6.60 with the options selling for $5.60. I have raised the rebuy price on KRFT to adjust for the support level. Kraft is finally looking up, but if we hit the rebuy price on this one – it would be a good opportunity to double down or buy as many as you can. Last month I recommended a double down play on the rebuy, so if you were able to get your own average price down significantly – you should be in good shape on this one really soon. If you didn’t double up – no worries, buy as many as possible to lower your average at the next rebuy, then we should see this one winning soon.

Always remember: Life is a journey; enjoy the ride!

At the time of publications – Dykstra had no positions in the stocks mentioned.

Verizon is headquartered in New York and is the second largest US telecommunications services provider (after AT&T) and has taken the top spot in wireless services (ahead of AT&T).

Verizon touts itself as America’s most reliable wireless network and the most advanced fiber-optic network. The company delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500. A Dow 30 company, Verizon employs nearly 180,000.

The company’s wire-line business provides local telephone, long-distance, and Internet access services to residential and business customers. I have Verizon FIOS and you can’t get a better consumer internet provider in the home without installing a T-1 line. Their HD TV FIOS service isn’t bad either and picture quality is excellent.

However all in all, the numbers are still nice to look at – Verizon has revenue of $119.53 billion; a forward P/E of 14.24; operating cash flow of $35.12 billion; total cash on hand of $57.36 billion; making Verizon a very solid play, even with debt at $99.14 billion.

The chart for the stock tells me timing is good for another DITM calls victory dance and the recent pull back, although not much of a pullback has provided us with the right trending lines for getting another win.

This feels like a quick win for Lenny’s DITM calls strategy.

Remember, once filled – please remember to place a GTC sell order a dollar higher than the purchase price, as this will automatically capture what we set out to achieve; a really quick $1,000 dollar profit.

Remember: Life’s a journey; enjoy the ride.

At the time of publication, Dykstra had no positions mentioned.

So sorry for any inconvenience this may cause you and let me know if there is anything I can do in the meantime.

On to today’s pick…

Several times this year, I’ve been recommending and scoring quick, consistent wins with Target Corp. (TGT).

As a result, TGT has become one of my go to choices for this scoring quickness.

Additionally it’s a good model to show why we use a GTC selling price with the Nails strategy. By setting a GTC selling price, we guarantee repeat victories by not letting emotion get in the way. If we had been using a long term strategy, TGT would barely be posting any gains for us, in fact – we’d be rather disappointed with the choice as it has dived back down again after sharing disappoint news this quarter.

However, even with the missed numbers, for Nails we’ve scored multiple times.

Here are the stats to look at:

Revenue comes in at $73.81 billion, cash in the bank sits at $706.00 million and operational cash flow is measured to be $6.73 billion with total debt about twice cash flow at $14.79 billion. I do wish they would keep more cash around, but – this isn’t a new stat and the company continues to make money for us.

Please remember to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Best Buy is the nation’s largest consumer electronics retailer selling office products, consumer electronics, entertainment software, appliances, and related services in the United States, Canada and China.

In the past year share price has almost tripled. It has shot up like a rocket and the recommendation comes when PS4’s and Xbox One’s are going to fly out of the stores in time for a nice holiday spending spree.

Additionally, BBY is still a Major League company with a solid balance sheet.

Revenues are posted at $48.15 billion, $1.83 billion in operating cash flow and $1.68 billion in debt and total cash on hand of $1.91 billion. Current return-on-equity (ROE) is down by 8.43%, which can explain the drop in share price. They have a forward price-to-earnings (P/E) ratio of 14.07, which has doubled since I last recommended the options.

Please remember to post a GTC selling price once your order is filled to automatically cash out with a win when the price is right.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

AT&T is headquartered in Dallas, Texas and is the largest US telecommunications services provider with nearly 250,000 employees.

The company’s wire-line business provides local telephone, long-distance, and Internet access services to residential and business customers. The companies wireless service comes in second, after Verizon, but is perking up with offerings of the newest iPhone 5C’s at no charge with a two-year contract.

The numbers aren’t bad – revenue of $128.17 billion; a forward P/E of 13.23; operating cash flow of $37.40 billion; total cash on hand of $1.37 billion; making T a very solid play, even with debt at $76.78 billion.

However, it is the chart for the stock that has me posting the pick today, which tells me timing is good and the recent pull back has provided us with room at the top for getting a win before the need to break beyond resistance, and the option prices are good.

This feels like a quick win for Lenny’s DITM calls strategy.

Remember, once filled – please remember to place a GTC sell order a dollar higher than the purchase price, as this will automatically capture what we set out to achieve; a really quick $1,000 dollar profit.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

Of course, this little biotech company located in the affluent suburb of Los Angeles where Lenny lives once again happens to be a pretty big player in the pharmaceutical industry, with revenue posting $17.46 billion and a stock chart still showing nice upside potential.

Today’s pick is Amgen, Inc. (AMGN)

As I stated in the last column, back in 2007 – Lenny revisited Amgen (AMGN) several times. The results for Nails were staggering, not because it scored again and again, but – because it was the pick that made people start to pay attention to the Nails strategy and take Lenny’s investment acumen seriously.

Today, we are presented with opportunity to revisit AMGN.

Amgen has been a biotechnology pioneer since 1980, and was one of the first companies to realize the profit potential of bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen has literally changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. The company has collaborative projects with Pfizer, Glaxo Group, AstraZeneca and others to further the treatment of serious illness.

Here are the stats to note: Forward P/E 14.16; Return on Equity 23.29%; Quarterly Earnings Growth 23.60%; Total Cash $22.56 billion; Debt $27.19 billion; Operating Cash Flow $5.27 billion.

If your order fills, please remember to set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

Verizon is headquartered in New York and is the second largest US telecommunications services provider (after AT&T) and has taken the top spot in wireless services (ahead of AT&T).

Verizon touts itself as America’s most reliable wireless network and the most advanced fiber-optic network. The company delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500. A Dow 30 company, Verizon employs nearly 180,000.

The company’s wire-line business provides local telephone, long-distance, and Internet access services to residential and business customers. I have Verizon FIOS and you can’t get a better consumer internet provider in the home without installing a T-1 line. Their HD TV FIOS service isn’t bad either and picture quality is excellent.

However all in all, the numbers are still nice to look at – Verizon has revenue of $119.53 billion; a forward P/E of 14.41; operating cash flow of $35.12 billion; total cash on hand of $57.36 billion; making Verizon a very solid play, even with debt at $99.14 billion. If you check out the last time VZ was the Nails recommendation, both cash and debt were about $50 billion less. Even without doing the research, it’s a pretty safe bet that VZ plans on some capital expenditures, which means they are going to be buying assets, equipment, or inventory or a combination thereof.

The chart for the stock tells me timing is good and the recent pull back, although not much of a pullback has provided us with the right trending lines for getting a win and the option prices are good too.

This feels like a quick win for Lenny’s DITM calls strategy.

Remember, once filled – please remember to place a GTC sell order a dollar higher than the purchase price, as this will automatically capture what we set out to achieve; a really quick $1,000 dollar profit.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

The online auction house has been around since 1995 and has 30,000 full timers and does more than just allow you to clean out your garage or the contents of your sock drawer. It’s a household name and you can find just about anything your heart desires on eBay and of course they make their cut, but they also own PayPal, so they get another cut there. That results in over $15 billion in revenue annually.

I like eBay this morning for the stock chart. Share price sits between recent highs and lows. In the last year, the share price has moved between $45.66 and 58.04, with precision like regularity it has gone up and down several times.

Take a look at the stock chart and once again, I ask you to program in the 21-day, 50-day, and 200-day moving averages and you will see that the stock has started to head back up, giving us the means to score quickly.

Here are the stats to look at:

Revenue comes in as noted above at $15.51 billion, cash in the bank sits at $10.27 billion and operational cash flow is measured to be $4.67 billion with total debt at $4.53 billion. Share price has dropped this morning for some very nice upside potential.

I would have liked to go with the January 2015 $50’s but the premium was way too high, so I’ve gone deeper in the money to lower the premium and provide additional inartistic value to a new Nails recommendation.

Please remember to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

TGT has become one of my go to choices for the quickness we’ve scored with this choice again and again. Additionally it’s a good model to show why we use a GTC selling price with the Nails strategy. By setting a GTC selling price, we guarantee repeat victories by not letting emotion get in the way. If we had been using a long term strategy, TGT would barely be posting any gains for us. However, for Nails we’ve scored multiple times. Cha-ching!

We use a formula that allows quick spikes to score quick wins. This is especially helpful with a volatile market like we’ve been seeing.

Now, take a look at the stock chart and program in the 21-day, 50-day, and 200-day moving averages and you will see that once again, the stock in position to take aim again, so let’s give it another shot to make us another quick score. The long term average continues to move up and both short term averages have turned the corner and are going up too, with the 21-day average recently overtaking the 50-day average. That short term choppiness in the stock chart is gaining momentum and the stock is climbing back up from the drop in share price we saw in August.

Here are the stats to look at:

Revenue comes in at $73.48 billion, cash in the bank sits at $1.02 billion and operational cash flow is measured to be $6.96 billion with total debt about twice cash flow at $14.53 billion. I do wish they would keep more cash around, but – this isn’t a new stat and the company continues to make money for us.

Target’s share price has dropped just enough for some very nice upside potential, with a Forward P/E of 12.20 and Return on Equity of 16.97%.

Please remember to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

BAC is the most hated and most used bank as it provides unmatched location convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,750 ATMs and award-winning online banking with 29 million active users, serving clients in more than 150 countries.

Bank of America is once again a good buy. The stock closed yesterday at $13.93 which is cheaper than many of the options that are recommended, and is down from the most recent high by about half a point. With the options going for cheap, and the stock priced lower, you could up the number of contracts you buy and then sell early, say at 50 cents over the average price – if you wanted to mix it up a bit. I say that because cheaper stocks have to move a bit more percentage wise to get us our win, so if you knock down your GTC target, it’s more in line with what we can expect the stock to do short term.

BAC, even though priced low, has performed as outlined in the Nails strategy many times, so if filled we will stay with our normal target exit point, unless the market pulls the rug out and we end up lowering expectations across the board.

Here are some stats to note: Forward P/E – 10.40; PEG Ratio – 0.78; Return on Equity – 3.71% (the reason for the cheapness); Revenue – $80.69 billion; Cash – $495.00 billion; Debt – $566.94 billion; and operating cash flow – $56.88 billion.

Today’s recommendation looks to be another quick score, like we have done many times with this choice and comes with a tiny premium that makes it even more attractive. Please watch the GTC that is posted if we get our fill, should I feel the need for us to cut and run on this one early.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

Today’s pick is IT giant EMC Corp. (EMC). EMC is a monster company that has been providing information storage solutions for 30+ years. They provide IT solutions to every industry and to nearly every country around the globe. If you’ve got a computer network, chances are good EMC was or is involved. Their company tag line is: “where information lives,” and they aren’t kidding.

In looking at the numbers I see a forward P/E of 11.54, which is a good indicator that the stock is trading at a good price. Anything under 15 is considered to be undervalued, and that is the place we want our stocks to be priced. When they are undervalued, that’s the best time to buy.

Revenue for the company is close to $22.57 billion, total cash on hand is $10.60 billion and debt is very reasonable at $7.16 billion. The company scores big for keeping debt ratios manageable and operating cash flow of $6.63 billion is also very healthy.

EMC’s stock chart is showing a sizable drop in share price over the last several months. I see this as a clear opportunity to put more cash in the bank for the Nails strategy. For this one I say, “Lock & Load.”

Please remember to immediately set up a GTC sell order $1.00 higher to cash out a cool $1000 gain.

Always remember: Life is a journey, enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

Caterpillar Inc. (CAT) was added on Wednesday. Therefore, no changes are necessary.

Dow Chemical Company (DOW) was added on Monday and no changes are needed yet. However, in looking at the stock chart for DOW, I do expect that it will drop a tiny bit more before it starts to head back up.

Merck & Co., Inc. (MRK) was added last week. Like most recent additions, no changes are yet needed.

International Paper Co. (IP) was added to the open portfolio on 10/21. We currently need just a slight rise in share price to put us into the win column. In looking at the stock chart, IP looks as though it could be dropping a bit before it peaks, so if anyone wanted to cash out early – today would be the day. I’ll be keeping it on the scorecard until it hits the predetermined Nails exit point, but if you don’t want to wait, you’re not far from a win and cash is good.

Cisco Systems, Inc. (CSCO) was added to the open portfolio on 10/07. We are currently down about 20 cents from our original purchase price recommendation. Cisco’s stock chart is wavering, the short term averages are trending down and the long term averages are still trending up, but peaking. The overall market performance could be a factor in where this one will go in the next week or two. The rebuy price is still correct for the current share price and technical indicators, so no change is necessary – but, it’s possible that this could change before the next review.

Kraft Foods Group Inc. (KRFT) has been on the scorecard since 08/05 and we hold 30 contracts in our virtual portfolio at $7.10 with the options selling for $6.10. I have raised the rebuy price on KRFT to adjust for the new double bottom that posted in KRFT’s chart this last month. Kraft is dropping and we are down a point. When we hit the rebuy price on this one – it would be a good opportunity to double down or buy as many as you can. With us down a point at the peak – we need to get our average down so that with the next peak we can cash out.

Coca-Cola Company (KO) was added to the portfolio on 07/12 and we now have 60 contracts. Like KRFT, KO is peaking too. We are up by about 25 cents, so it really doesn’t make sense to cash out right now, you’d mostly likely lose any profits in trading fees. Although the stock is peaking and can be expected to drop a bit before it goes back up – the trending on the moving averages is very promising. Long term is trending up still and both short term averages have bottomed out and are starting to rise. That looks good for this position to go back up where we’d need it to be for a nice win.

Intel Corporation (INTC) was added to the portfolio on June 21st and we currently have 40 contracts with an average price of $4.00 with our options trading for $4.71. It too is peaking, so if you want another cash bonus – no one would blame you for pulling the plug on this one a bit early and cashing out. However, all trending averages are moving up and widening out – which is a good sign that although the stock has peaked – it could still move higher in the short term. The overall market in the next couple of weeks will be a determining factor.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Last week CAT missed the number, stemming from a decrease in mining equipment demand. However, as I stated on Monday, this isn’t expected to be a long term issue and we shouldn’t have to wait for improved demand for CAT’s share price to rally enough for a Nails win.

The 52-week high tops out at $99.70 and the low $79.49, with the stock trading a bit lower than it was on Monday at $84.07 at yesterday’s close and coming up a bit with this morning’s open. The stock chart continues to shows a lot of volatility with some nice upward potential. It almost looks like a EKG with regular spikes upward over the last several months.

CAT options always trade with a steep premium, today will be no different, but based on about a month of premium averaging, it’s consistent. I waited for the market to open before posting, so I could see where the options are priced this morning. Today’s recommendation is just shy of the current ask price.

Here are the stats to make note of: Forward P/E Ratio – 14.45 / PEG Ratio – 1.54 / Return on Equity 19.37% / Quarterly Growth – -18.40% / Revenue $57.33 billion / Debt $39.54 billion / Operating Cash Flow – $9.63 billion… all of which has been updated.

After the order is filled, set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

The stock chart is showing plenty of upside potential; I’d go far enough out there to say that it looks like predictable upside potential. Although with predictions, you can get yourself in trouble if you think you really know what’s going to happen with a stock or with the market.

However, here at Nails we seek to take advantage when solid companies see a sudden drop in share price. Remember we do want to buy low and sell high. Although the outlook for DOW may be boring to those that are writing about long term stock performance and dividend yield, for us we just want to see a drop in price followed by a bounce back up. Nothing more.

Last week, poor results led to a predictable drop in share price. However, DOW may not be changing the world with cutting edge technologies, but – they are stable, predictable and have been around almost as long as the stock market itself.

DOW manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. For a company that has been around for over a century, they do well enough with updating their methods and considering the environment in their choices going forward.

Here are the numbers to consider: Revenue:  $56.61 billion, Forward P/E Ratio: 13.82, PEG Ratio: 2.43, Total Cash: $5.27 billion, and Debt: $18.62 billion. Both the PEG Ratio and debt are higher than ideal, however the company performs for Nails over and over and the stock chart and technical charts tell me it’s a good time to buy, plus they continue to offer a consistent dividend payout to stock holders.

Please remember to set a GTC selling order once your position is filled, to lock in your win.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

The missed number stems from the decrease in mining equipment demand. However, this isn’t going to be a long term issue and should see an increase again by early next year. I doubt we’d have to wait that long for CAT’s share price to rally.

The 52-week high tops out at $99.70 and the low $79.49 which is a pretty large spread, with the stock trading a bit lower than midway at $84.53 at yesterday’s close, with the big dive on Wednesday when the stock dropped over five points. This morning the stock will drop a bit more still, stats we should try to capitalize on. The stock chart continues to shows a lot of volatility with some nice upward potential.

I am betting we can lock in a win if we can get in a position to score by getting on base this morning. CAT options always trade with a steep premium, today will be no different. However, you may think that the price I am setting is too low. It might be, but – it’s the price where the options should be, based on about a month of premium averaging.

Here are the stats to make note of: Forward P/E Ratio – 13.96 / PEG Ratio – 1.50 / Return on Equity 25.25% (very good) / Quarterly Growth – -43.50% / Revenue $60.35 billion / Debt $39.56 billion (it is a bit high) / Operating Cash Flow – $7.86 billion… all of which will be updated shortly.

After the order is filled, set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

In looking for a selection today, I looked at just about EVERY stock chart out there. The theme is up, up, up and sell, sell, sell, so there are very few selections out there I like.

I decided to go with one of Ken Fisher’s choices of last month, for the timing. First off, Fisher is seldom, if ever, wrong. Secondly, the timing is looking good for this choice to fit in with the Nails strategy.

Today’s pick is Merck & Co., Inc. (MRK)

It has been a long time since you’ve seen MRK as a choice here as I tend to look at Pfizer and Johnson & Johnson first as they have performed for us many, many times.

Merck makes prescription and non-prescription medicines, vaccines, animal health products, and a host of other pharmaceutical products. It has been around since time immortal, as it was founded over 100 years ago in 1891 and is headquartered in New Jersey, with approximately 83,000 employees.

Here are the stats to note: Forward P/E 13.12; Return on Equity 9.77%; Quarterly Earnings Growth is down by 49.50% which is why it could be one of the only choices I saw with a stock chart that says buy; Total Cash $18.10 billion; Debt $28.14 billion; Operating Cash Flow $9.63 billion.

Today, it’s the stock chart that is showing me potential for upward momentum. However, MRK will post earnings next week, so feel free to cash out your winners and let this one go until there are more choices with upside potential.

Please remember to set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win if your order is filled.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

Today’s pick is once again paper and packaging company, International Paper Co. (IP). I’m going with IP ahead of earnings which will be announced later in the week, so it’s not a perfect choice, but the stock is down nearly a point in early morning trading, so perhaps it will shed all of its pre-announcement weight and shoot right back up next week. The stock chart is looking as though that will be the case.

International Paper is a global paper and packaging company with manufacturing operations in more than 20 countries, including the United States, Europe, Latin America and Asia, and they operate 18 pulp, paper and packaging mills, 94 converting and packaging plants, and five wood products facilities. With annual sales of about $26.20 billion, they employ approximately 70,000 people worldwide, and they have a long-standing policy of using no wood from endangered forests.

They make the products that are essential for today, while sustaining millions of acres of forest for the needs of future generations; as they are the nation’s largest private landowner and seedling grower, planting more than 500 million seedlings a year.

Here are the metrics to take note of: Forward P/E – 10.18; Return on Equity – 13.71%; Revenue – $28.53 billion; total cash – $1.20 billion; operating cash flow – 2.87 billion; debt $12.16 billion (a little high, but consistent).

Please remember to post a GTC (good till cancelled) order at $1.00 higher than the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

With the market coming back up, most of the stocks in the basket we pick from are approaching resistance, making the task of making a smart choice more difficult, as the timing is better now for selling. This means we could see the open portfolio getting even lighter in the coming weeks if the market continues to be strong.

Earlier in the month, I went with United Technologies Corporation (UTX). Getting a Win out of UTX isn’t as hard as getting in on the options for the right price, but with just about everything closing in on resistance, UTX has a bit of room to score us a win before it gets there.

As you know from previous columns, UTX specializes in technology products, building systems and aerospace. The options for this company have been elusive, to say the least, but it is better to go after the best companies and not get filled – over going with a so-so company that fills and ends up being a so-so choice.

There is nothing so-so about UTX. Anyone who has spent time in an elevator or used an escalator or moving sidewalk is familiar with their Otis segment, and one would be equally hard-pressed to find someone who has never heard of Carrier cooling systems, Pratt & Whitney jet engines or Sikorsky helicopters – all of which are UTX brands.

United Technologies is a mega-conglomerate that is vastly diverse and on the cutting edge on technological innovation. They employ over 200,000 people and have been around since 1934; UTX is here to stay and has been a valuable component in my DITM strategy.

In looking at the stock chart – there is really good support several points down and the option price quoted is reasonable for a stock selling at over $100.00, but please don’t overspend.

Please be sure to set a GTC sell order for $1.00 more than the purchase price to lock in a $1000 gain when the price hits our sales target.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

BAC is the most hated and most used bank as it provides unmatched location convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,750 ATMs and award-winning online banking with 29 million active users, serving clients in more than 150 countries.

Bank of America is once again a good buy. The stock closed yesterday at $14.24 which is cheaper than many of the options that are recommended. Today’s recommendation looks to be another quick score, like we have done many times with this choice and comes with a tiny premium that makes it even more attractive.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

However, sometimes it takes a while to score a win. Those positions tend to smart a bit, even though any win is sweet – no matter how long it takes. Those names that hit rebuy after rebuy tend to bring up some of the stress that getting them to the win column caused. We have the tendency to remember the journey more than the destination. But that doesn’t mean we shouldn’t take another stab at those choices.

So, today I am going to revisit Corning Inc. (GLW) for the first time in a long time, as it now presents us with a very nice choice.

They have been around since 1851 and continue to be the world’s largest specialty glass and ceramics manufacturer creating LCD display screens used in TV’s and video displays, laptops, gaming devices and cell phones. For the telecommunications industry they make optical fiber and cable. They make ceramic substrates that are used to filter pollutants in autos. And, they make virtually all glass lab-ware including beakers, test tubes and Petri dishes.

Corning has an interesting history. The company helped Thomas Edison create a commercial success with the light bulb. And although we are more familiar with the kitchen names Corning Ware and Pyrex, these products were once part of Corning, but were sold off in 1997 to World Kitchens LLC so the company could focus on high-technology applications. They have made the windows for the Space Shuttle and other NASA applications and make nose cones for rockets and missiles, which is a long way from their beginnings which started with the manufacture of railroad lantern glass.

GLW closed yesterday at $14.45 and with an undervalued forward price-to-earnings ratio of 10.40, return on equity of 8.92%, revenue of $7.98 billion, operating cash flow of $2.89 billion which is a nice healthy percentage of income. Debt is manageable at $2.92 billion as they have more than enough cash on hand to pay all the bills, with cash on hand at about $5.47 billion. About 74.30% of its stock is owned by institutions, making this a comfortable choice as well.

Once filled, immediately place a GTC sell order $1.00 above your purchase price to automatically cash in a win when the option price hits the sell mark.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

I’d say that timing is OK (not perfect, but OK) to go with longtime Nails favorite – Proctor & Gamble Co. (PG), however buying on Wednesday would have been better. Buying just about anything on Wednesday would have been better.

PG’s stock chart is good, so I will just grab my shopping cart and head down the cleaning aisles at the grocery store for another chance to score a quick win before yesterday’s gains show up in the option prices and make the choice too expensive. One nice thing about a big day like yesterday – is that rarely do the option prices jump as far. They will jump, but it can take a day or two for them to catch up and if the market drops back down just as quickly, they might not move much at all. It’s the price we pay for all that leverage.

Proctor & Gamble probably makes just about every household consumable supply you have. You can go to http://www.pg.com/en_US/brands/all_brands.shtml and check out how often a P&G product falls into your household shopping cart. They have 12 brands that have sales over a billion dollars each and 19 brands that top $500 million in sales each. That, my friends, is a lot of soap. Here is the alphabetical list of brands that top a billion in sales: Always, Ariel, Bounty, Braun, Charmin, Crest, Dawn, Downy, Duracell, Fusion, Gain, Gillette, Head & Shoulders, Iams, Mach 3, Olay, Oral B, Pampers, Pantene, Tide, and Wella. How many of these do you buy?

Revenues are posted at $84.17 billion, $14.87 billion in operating cash flow and $5.95 billion in cash or equivalents on the balance sheet. Debt is more than twice operational cash flow, it comes in $31.54 billion, but the company is such a staple of consumable supplies and they’ve been around since 1837 and I don’t plan to stop showering or shaving or moisturizing anytime soon.

The company has a return-on-equity (ROE) of 17.18% and forward price-to-earnings (P/E) ratio of 16.68 is a bit higher than I like. But, once again – it’s the stock chart I like today even over yesterday’s gains that spell out opportunity for the Nails strategy.

Please don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as we hit the target.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

So today I am reaching into the heart of the matter and selecting one that has a strong ability to provide a bounce and a quick win for the Nails DITM calls system, but deep into the controversy and going with a healthcare choice – Johnson & Johnson (JNJ).

JNJ has come down several points off the 52-week high, dropping right along with everything else in the last few weeks, so there is lots of room for a predictable bounce if the market sees short term gains and we are worrying about the next crisis. If the price drops further – we will be on base with a good option price will have enough intrinsic and time value for a significant pull back in order to shore it up and make the strategy work.

Johnson and Johnson presents us with a very solid, safe play – despite all the craziness. They have been around since 1886 and provide us with such household names as over the counter pharmaceuticals as Tylenol, Sudifed, Zyrtec, Pepcid and Motrin IB, along with many others. They have a very wide moat.

Johnson and Johnson stock closed yesterday at $85.61. Their financials are the definition of “healthy” with a price-to-earnings ratio of 14.73, revenue of $69.99 billion, total cash in the bank of $25.13 billion, and debt comfortably less than that at $14.98 billion and operating cash flow of $15.68 billion. Quarterly earnings are up 172.2% which is much improved since I selected JNJ previously.

Once an order is filled, it’s important to remember to immediately place a GTC sell order for $1.00 higher than your purchase price to automatically cash in a win for $1000 when the option price hits the sell mark.

Always remember: Life is a journey, enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

I did get several bounce backs too, for those of you that have possibly changed your email addresses. Please update your user information if your email is out of date. Thank you.

Today’s pick is Cisco Systems, Inc. (CSCO).

The Company provides a line of products for transporting data, voice, and video within buildings, across many platforms, and around the world. Its products are designed to transform how people connect, communicate and collaborate. Cisco Systems, Inc.’s products, which include primarily routers, switches, and products that the Company refers to as its technologies, are installed at enterprises, public institutions, telecommunications companies, commercial businesses and personal residences. They have been in business since 1984 and employs over 66,000 people.

CSCO’s current price is at $23.00, down from the recent high of $26 and change. The forward P/E ratio is 10.23, PEG ratio is 1.20, and return on equity is 18.08%. Revenues are $48.61 billion, of which they have $50.61 billion in cash (such a lovely stat), and $12.89 billion in operating cash flow. The debt is quite manageable at $16.21 billion as compared to operating cash flow and the company has enough cash in the bank to pay off debt three times over, which is a very healthy cash position to be in. I sure wish I had enough liquid assets to pay off my house three times. And, institutional investors make up 74.10% of those that own the stock.

Almost all the stock charts of our favorite Nails picks are looking good for buying too, but – CSCO’s chart is looking good, beyond the metrics above for additional upside potential and another quick DITM win.

Please remember to set a GTC sell order at $1.00 higher than the purchase price once an order fills to lock in a win when the target sales price is reached.

Always Remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

International Paper is a global paper and packaging company with manufacturing operations in more than 20 countries, including the United States, Europe, Latin America and Asia, and they operate 18 pulp, paper and packaging mills, 94 converting and packaging plants, and five wood products facilities. With annual sales of about $26.20 billion, they employ approximately 70,000 people worldwide, and they have a long-standing policy of using no wood from endangered forests.

They make the products that are essential for today, while sustaining millions of acres of forest for the needs of future generations; as they are the nation’s largest private landowner and seedling grower, planting more than 500 million seedlings a year.

Here are the metrics to take note of: Forward P/E – 9.86; Return on Equity – 13.71%; Revenue – $28.53 billion; total cash – $1.20 billion; operating cash flow – 2.87 billion; debt $12.16 billion (a little high, but consistent).

Please remember to post a GTC (good till cancelled) order at $1.00 higher than the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

I won’t go into a political rant beyond saying that the unnecessary power trip going on right now can be used to our advantage. We do like buying when things are cheap, then selling again when things work out. And, they almost always work out… maybe not perfectly and maybe not quickly – but enough to make a buck here and there, and that is the goal.

It’s been a while since I have set my sights on United Technologies Corporation (UTX). Getting a Win out of UTX isn’t as hard as getting in on the options for the right price, but with just about everything taking a dive off the little platform – the timing is looking good, should we get a quick bounce.

As you know from previous columns, UTX specializes in technology products, building systems and aerospace. The options for this company have been elusive, to say the least, but it is better to go after the best companies and not get filled – over going with a so-so company that fills and ends up being a so-so choice.

There is nothing so-so about UTX. Anyone who has spent time in an elevator or used an escalator or moving sidewalk is familiar with their Otis segment, and one would be equally hard-pressed to find someone who has never heard of Carrier cooling systems, Pratt & Whitney jet engines or Sikorsky helicopters – all of which are UTX brands.

United Technologies is a mega-conglomerate that is vastly diverse and on the cutting edge on technological innovation. They employ over 200,000 people and have been around since 1934; UTX is here to stay and has been a valuable component in my DITM strategy.

In looking at the stock chart – the timing for a buy is right there. The stock price is down off a recent peak of $112.46, closing yesterday at $107.38, dropping further this morning. The stock chart is showing really good support several points down and the option price quoted is low for a fill – as insurance for everyone not to buy it unless the stock price drops down a bit more this afternoon.

Please be sure to set a GTC sell order for $1.00 more than the purchase price to lock in a $1000 gain when the price hits our sales target.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

CVS Caremark Corporation (CVS), Target Corp. (TGT), and Walt Disney Company (DIS) were recently added to the open portfolio. There are 10 contracts open for each and no changes are needed to the rebuy levels. They all look to be in good shape and are trading close to even money.

General Electric Company (GE) was added to the portfolio on 08/16 and I have readjusted the rebuy level slightly.

Kraft Foods Group Inc. (KRFT) has been on the scorecard since 08/05 and we hold 30 contracts in our virtual portfolio at $7.10 with the options selling for $6.10. The rebuy level for KRFT needs no adjustment at this time.

Coca-Cola Company (KO) was added to the portfolio on 07/12 and we now have 50 contracts. I have adjusted the rebuy level of KO to $37.70 so that if the stock falls to that level, we should take advantage of the lowered option price and add more contracts to our portfolio and lower our overall average price. Lowering the average price will make it easier to win on the bounce and put more cash in our pockets too.

Intel Corporation (INTC) was added to the portfolio on June 21st and we currently have 40 contracts with an average price of $4.00 with our options trading for $3.63. In looking at Intel’s chart last month, we could see that short term share price was coming down and long term trending bottoming out. I said I would adjust the rebuy price when the moving averages converge – they have and a new rebuy level of $22.00 has been posted.

Verizon Communications Inc. (VZ) has been in the open portfolio since May 8th. We now have 110 contracts with an average price of $6.10 with the options currently going for $4.20. Verizon’s rebuy price is fine. However, with the next rebuy, consider a double down play to get the average price down significantly. It will go a long way in putting this position in a nice place for a very nice win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

CVS’s stock chart showing me great upside potential for a win and several levels of support. Timing looks to be perfect.

CVS isn’t just your local pharmacy and drug store. The company’s pharmacy services segment offers pharmacy benefit management services, discounted drug purchase, Medicare Part D services, mail order and specialty pharmacy services, and so on. The company’s retail pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods, as well as provides film and photo finishing services. It does this with its retail drugstores as well as offering online purchasing.

As of March 31, 2012, the company operated 7,352 retail drugstores, 570 MinuteClinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, 4 mail order pharmacies, and CVS.com and Caremark.com Web sites.  CVS was founded in 1892 and is headquartered in Woonsocket, Rhode Island.

Here are the numbers to consider: Revenue:  $123.63 billion, Forward P/E Ratio: 13.01, PEG Ratio: 1.05, Total Cash: $1.18 billion, Operating Cash Flow: 5.20 billion, and Debt: $9.38 billion.

Please remember to lock in a win by setting a GTC selling price of $1.00 over your purchase price immediately after your order fills.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

We use a formula that allows quick spikes to score quick wins. This is especially helpful with a volatile market.

Now, once again, the stock has pulled back into position to take aim again, so let’s give it another shot to make us another quick score.

When it comes to shopping at a discount store, I’ll take this one – Target Corp. (TGT).

In the last week, the stats haven’t changed.

Revenue comes in at $73.48 billion, cash in the bank sits at $1.02 billion and operational cash flow is measured to be $6.96 billion with total debt about twice cash flow at $14.53 billion. I do wish they would keep more cash around, but – this isn’t a new stat and the company continues to make money for us.

This recent pull back in share price is providing us with a nice opportunity to score and Target’s share price has dropped just enough for some very nice upside potential, with a Forward P/E of 12.18 and Return on Equity of 16.97%.

The price for this option is right on target with our Nails pricing strategy if TGT doesn’t jump hugely with the bell. If filled, don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible. Anyone who didn’t use a GTC sell price, is probably still holding the original TGT purchases.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

However, the news blew the doors off what was projected. Apple sold 9MM new phones this weekend, more than twice what was being projected. Awesome, as this news will help our longest held position – Verizon Communications Inc. (VZ).

Now to today’s pick.

I am going once again with a very well known brand that has provided happiness, joy and adventure for all ages since 1955, the Walt Disney Co. (DIS).

There is probably no other company you can invest in that is guaranteed to instill some appreciation for what they do from people of all ages.

Disney is again showing a drop in share price from last week’s sell off. This is the opportunity we need to catch a quick win on the bounce. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $44.26 billion; Forward P/E is 16.58 and the PEG Ratio is 1.56; Return on Equity is 14.74%; total cash is $3.93 billion; operating cash flow is $8.25 billion and debt is a little less than twice that at $15.00 billion.

Please remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

Much has changed at the construction- and earth-moving equipment vendor over the last year or two and I have started to notice more construction in the works here in So. Cal.  – beyond freeway improvements, which seem to be everywhere. Both are good signs for CAT and the heavy equipment /construction industry.

The 52-week high tops out at $99.70 and the low $86.30 which is a pretty large spread, with the stock trading a bit lower than midway at $87.75 at yesterday’s close. This morning the stock is down over a point and that is what we should try to capitalize on. The stock chart continues to shows a lot of volatility with some nice upward potential.

There is resistance close to today’s entry point, but I am betting we can lock in a win if we can get in a position to score by getting on base. CAT options always trade with a steep premium.

Here are the stats to make note of: Forward P/E Ratio – 12.07 (nice) / PEG Ratio – 0.70 (very nice) / Return on Equity 25.25% (very good) / Quarterly Growth – -43.50% (same since picked last) / Revenue $60.35 billion / Debt $39.56 billion (it is a bit high) / Operating Cash Flow – $7.86 billion.

After the order is filled, set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

VLO operates through three segments: Refining, Retail, and Ethanol. Valero service stations in Southern California are starting to be more prevalent and they have upped the image and are starting to look less “no frills” to more mainstream gas station.

As a previous owner of a gas station and convenience store, Lenny has the experience to know that margins for the retail owner of a gas station are really small, so you have to have a first class convenience store to get and keep customers – or really competitive gas prices. Valero is doing both; their convenience stores are so much cleaner and well stocked over your average ARCO station, but the gas prices are comparable. That is a good combination for success.

In looking at the stock chart, it is a good time to make a purchase of VLO options. With the market shooting through the roof and much of our open portfolio in really nice shape for several wins across the board if the market continues its climb, it is going to be somewhat challenging to find picks that are not also posting record highs.

VLO revenue comes in at $135.96 billion; Forward P/E is 7.10 and the PEG Ratio is 1.03; Return on Equity is 16.16%; total cash is $2.40 billion; operating cash flow is $5.25 billion and debt is manageable at $6.56 billion. Timing looks good for another solid Nails play.

Please remember to lock in a win by setting a good-till-cancelled (GTC) selling order once a position is filled.

Remember: Life is a Journey; enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

Let’s not do that. If the option isn’t doable at the price listed – let it go.

A week ago, we got on base with Target and scored a quick win. The stock has pulled back into position to take aim again, so let’s give it another shot to make us another quick score.

When it comes to shopping at a discount store, I’ll take this one – Target Corp. (TGT).

In the last week, the stats haven’t changed.

Revenue comes in at $73.48 billion, cash in the bank sits at $1.02 billion and operational cash flow is measured to be $6.96 billion with total debt about twice cash flow at $14.53 billion. I do wish they would keep more cash around, but – this isn’t a new stat and the company has made money for us before.

The recent pull back in share price is providing us with a nice opportunity to score and Target’s share price has dropped just enough for some very nice upside potential, with a Forward P/E of 12.78 and Return on Equity of 16.97%.

The price for this option is right on target with our Nails pricing strategy if TGT doesn’t jump hugely with the bell. If filled, don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Wal-Mart is a Major League company and they know how to make that cash register ring 24-7 with revenues of $473.00 billion. Yes folks, that’s right OVER $470,000,000,000 in sales and that my friends is a lot of zeros and a figure that is closing in on half a trillion dollars.

The company generates $25.25 billion in operating cash flow, have $9.02 billion in the bank with a hefty debt load of $57.22 billion. Although the debt is large in comparison to cash, this is long term debt, in the stores, the buildings and the land they sit on. You can’t own that much real estate without owing a few mortgage payments and that averages out to about $5.3 million per store. When you consider the size and value of each store, considering only the real estate, it’s not a huge debt to equity position to have.

The company has a return-on-equity (ROE) of 23.45% which is good considering their profit margins are small. Forward price-to-earnings (P/E) ratio is currently at 12.90.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

The company remains one of the strongest out there, period. You can let the numbers be your guide. MSFT has a Forward P/E ratio currently of 10.81, a PEG ratio of 1.32. Revenue remains very strong at $76.21 billion, cash in the bank at $76.21 billion, debt of only $16.29 billion in comparison with operating cash flow of over $28.83 billion which is still excellent in anyone’s book. Return on Equity is a strong at 30.09%.

If your order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

Therefore, today’s recommendation is from the tried and true list – DuPont de Nemours & Company (DD).

From previous columns, you will know that this household name has been around for over 200 years and operates as a science and technology company in various areas, including biotech, electronics, materials science, safety and security, and synthetic fibers. A couple of DuPont brands everyone is familiar with are Corian, Kevlar and Teflon. For many years DuPont was one of the most sought after stocks to own for its consistent dividend payouts.

Yesterday the stock closed at $57.11 which is down several points from the recent high posted at the beginning of August. The stock chart is looking like there is room for a comfortable bounce to score us another DD win.

DD’s forward price to earnings ratio is 13.28 today and anything below 15 is considered to be undervalued by Wall Street, so DuPont is in the sweet spot with that stat. Revenue of $35.20 billion, kicking back a return on equity of 20.02 percent. They have about $14.08 billion in debt and total cash of $6.90 billion. It would be better if those numbers were reversed. However – DuPont has been around for so long, they have a track record for managing debt successfully. Lastly, the company has $3.34 billion in operating cash flow.

Please remember to set a good till cancelled sell order for $1.00 higher than the purchase price, to cash in on a win should you get your fill this morning.

Always remember: Life is a journey, enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

Revenue comes in at $73.48 billion, cash in the bank sits at $1.02 billion and operational cash flow is measured to be $6.95 billion with total debt about twice cash flow at $14.53 billion. I do wish they would keep more cash around, but – this isn’t a new stat and the company has made money for us before.

The recent pull back in share price is providing us with a nice opportunity to score and Target’s share price has dropped enough for some very nice upside potential, with a Forward P/E of 12.67 and Return on Equity of 16.97%.

The price for this option is right on target with our Nails pricing strategy if TGT moves the direction indicated this morning before the bell. If filled, don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Proctor & Gamble probably makes just about every household consumable supply you have. You can go to http://www.pg.com/en_US/brands/all_brands.shtml and check out how often a P&G product falls into your household shopping cart. They have 12 brands that have sales over a billion dollars each and 19 brands that top $500 million in sales each. That, my friends, is a lot of soap. Here is the alphabetical list of brands that top a billion in sales: Always, Ariel, Bounty, Braun, Charmin, Crest, Dawn, Downy, Duracell, Fusion, Gain, Gillette, Head & Shoulders, Iams, Mach 3, Olay, Oral B, Pampers, Pantene, Tide, and Wella. How many of these do you buy?

Revenues are posted at $84.17 billion, $14.87 billion in operating cash flow and $5.95 billion in cash or equivalents on the balance sheet. Debt is more than twice operational cash flow, it comes in $31.54 billion, but the company is such a staple of consumable supplies and they’ve been around since 1837 and I don’t plan to stop showering or shaving or moisturizing anytime soon.

The company has a return-on-equity (ROE) of 17.18% and forward price-to-earnings (P/E) ratio of 16.65 is a bit higher than I like. But, once again – it’s the stock chart I like today and the drop in price over the recent high that posted a few weeks ago that spells out opportunity for the Nails strategy.

Please don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as we hit the target.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Walt Disney Company (DIS ) was added to the open portfolio earlier in the week and no changes are needed.

Johnson & Johnson (JNJ) saw a rebuy on 08/27 which has now posted to the stat book and the rebuy adjusted accordingly. We now have 20 contracts with an average price of $17.70 with the options currently selling for $17.60, so we are in good shape for another JNJ profitable trade.

General Electric Company (GE) has been on the open portfolio list since 08/16 with 10 contracts valued at $4.40. The options are currently selling for $3.74 so no adjustment is needed at this time. The rebuy price looks good for picking up another 10 contracts.

Costco Wholesale Corp. (COST) has been with us since 08/14 and we hold 10 contracts at $22.70. These options currently sell for $20.62 and share price dropped to nice cents above the listed rebuy price. No adjustments are currently necessary.

Kraft Foods Group Inc. (KRFT) has been on the scorecard since 08/05 and we hold 30 contracts in our virtual portfolio at $7.10 with the options selling for $5.40. I am going to readjust the rebuy on KRFT to $51.60.

Home Depot (HD) was added to the portfolio on 07/31 and in the last month we have added another 20 contract bringing the total up to 30 with an average price of $15.30. These are currently selling for $14.00 so I will make a rebuy adjustment here as well.

Altria Group (MO) was added on 07/29 and here again we have 30 contracts. Our average price on MO is $5.00 and the list price for these is $4.00. No adjustments are needed to the rebuy.

Coca-Cola Company (KO) was added to the portfolio on 07/12 and we now have 40 contracts. KO needs to see a rebuy NOW, so I am adjusting the rebuy price to take advantage of the current option price.  This will help lower our average price and help us score a quicker win while bringing the win total up considerably.

Intel Corporation (INTC) was added to the portfolio on June 21st and we currently have 40 contracts with an average price of $4.00 with our options trading for $3.20. In looking at Intel’s chart, we can see short term share price coming down and long term trending bottoming out. I am not adjusting the rebuy price for Intel just yet as I’d like to see the moving averages converge – then I’ll adjust.

Verizon Communications Inc. (VZ) has been in the open portfolio since May 8^th and now represents the oldest trade on the open portfolio after clearing out the last two 2014 options. We now have 90 contracts with an average price of $6.60 with the options currently going for $4.85. Verizon’s rebuy price has been adjusted as well for a rebuy to post sooner.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

This morning’s recommendation comes from Lenny himself; his first pick in a very long time, as his last recommendation was made in March 2010. Therefore, this is something to celebrate as I know many of you signed up – just for this: You want Lenny’s choices, along with his strategy.

For all of you who wish to celebrate Lenny’s return into active involvement with Nails, please take a moment today and welcome him back by posting a comment using the contact us page.

In addition to today recommendation, I’ve asked Lenny to participate in a Nails conference call sometime soon, hopefully, tomorrow or a day next week. Please be on the lookout for an email notification of the scheduled time and phone number if you’d like to join in. It would be a great opportunity to ask Nails some Nails questions.

Going forward, I can’t say how often the recommendations will come from Lenny, but it’s safe to say that not all recommendations will be from just me any longer.

Today’s choice is Teradyne Inc. (TER).

Teradyne provides automatic test equipment for automotive, industrial, communications, consumer, computer, and electronic game applications. The company was founded in 1960 and is headquartered in North Reading, Massachusetts, employing 3600 people worldwide.

TER is down from the 52-week high, posted last month, dropping a few points in share price in the last several weeks, providing room for a predictable bounce if the market sees short term gains. If the price drops further – there are several layers of support to help lock in a win.

TER stock closed yesterday at $15.33. Their financials are looking good with a forward price-to-earnings ratio of 8.81, revenue of $1.42 billion, total cash in the bank of $728.75 million, and debt considerably lower at $179.57 million and operating cash flow of $360.25 million. Quarterly earnings are down 40.20% which is why we are seeing a pull back in price and a lowered P/E ratio.

Once an order is filled, it’s important to remember to immediately place a GTC sell order for $1.00 higher than your purchase price to automatically cash in a win for $1000 when the option price hits the sell mark.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

There is probably no other company you can invest in that is guaranteed to instill some appreciation for what they do from people of all ages.

As a company, Disney is a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures, Pixar and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Disney is showing enough of a drop in share price from earlier in the month to make this the opportunity we need to catch a quick win on the bounce. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $44.26 billion; Forward P/E is 15.79 and the PEG Ratio is 1.47; Return on Equity is 14.74%; total cash is $3.93 billion; operating cash flow is $8.25 billion and debt is a little less than twice that at $15.00 billion.

Please remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

JNJ isn’t far from the 52-week high, but it has dropped a couple points in price in the last few weeks, so there is room for a predictable bounce if the market sees short term gains. If the price drops further – we will be on base with a good option price will have enough intrinsic and time value for a significant pull back in order to shore it up and make the strategy work.

So we stay the course with our DITM calls strategy and revisit Johnson and Johnson as it currently presents us with a very solid, safe play. They have been around since 1886 and provide us with such household names as over the counter pharmaceuticals as Tylenol, Sudifed, Zyrtec, Pepcid and Motrin IB, along with many others.

Johnson and Johnson stock closed yesterday at $87.60. Their financials are the definition of “healthy” with a price-to-earnings ratio of 15.16, revenue of $69.99 billion, total cash in the bank of $25.13 billion, and debt comfortably less than that at $14.98 billion and operating cash flow of $15.68 billion. Quarterly earnings are up 172.2% which is much improved since I selected JNJ previously.

Once an order is filled, it’s important to remember to immediately place a GTC sell order for $1.00 higher than your purchase price to automatically cash in a win for $1000 when the option price hits the sell mark.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

Today, I am going back to the bank with Bank of America (BAC).

The most hated and most used bank provides unmatched location convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,750 ATMs and award-winning online banking with 29 million active users, serving clients in more than 150 countries.

Bank of America is once again a good buy. The stock closed yesterday at $14.29 which is cheaper than many of the options that are recommended. Today’s recommendation looks to be another quick score, like we have done many times with this choice and comes with a tiny premium that makes it even more attractive.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

There is probably no other company you can invest in that is guaranteed to instill some appreciation for what they do from people of all ages.

As a company, Disney is much more than the Mouse. They are a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures, Pixar and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Disney is again showing a drop in share price from earlier in the month. This is the opportunity we need to catch a quick win on the bounce. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $44.26 billion; Forward P/E is 15.90 and the PEG Ratio is 1.53; Return on Equity is 14.74%; total cash is $3.93 billion; operating cash flow is $8.25 billion and debt is a little less than twice that at $15.00 billion.

Please remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

This morning I am going back to a consistent winner, General Electric (GE) and the timing is looking favorable to putting GE in a position to win for us yet again.

Share price is down from last month’s peak and there are several layers of support making this multi-national conglomerate a good deal. The option prices are excellent as well – cheaper than the Nails formula – so good news all around.

If you venture out to the GE website and look up their products and services listing – it is quite the list – as GE now covers just about everything from household appliances, aviation equipment and asset management, power generation and distribution, water processing and so on – even entertainment and banking. You could almost say you have a diversified portfolio with just this one purchase.

Here are the numbers to note:  Revenue:  144.34 billion / Forward P/E:  13.19 / Return on Equity:  11.86% / Cash:  88.71 billion / Debt:  387.32 billion / Operating Cash Flow: 29.04 billion.

Debt is outrageously high but the company has a track record of managing debt well and I have found that older companies have more of a tendency to keep a lot of debt. GE has been around since 1892, so that qualifies as not just old but quite stodgy too. The company was originally founded by Thomas Edison and funded by JP Morgan, no lightweights in American History.

Please remember that once your order is filled to set a GTC (good ’til cancelled) order at $1.00 higher than your average cost to lock in a $1000 gain.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

In addition, we are finally looking at some green in our remaining 2014 position ArcelorMittal (MT). I have adjusted the GTC selling price to remove this one with a modest but hard fought for win. The MT stock chart looks as though it could peak really soon, so I’d not like to get caught with any profits. I believe it will be a prudent choice to exit now and leave only 2015 positions on the board.

Today, I found a few nice choices I could have gone with, and looking to add Costco Wholesale Corporation (COST) to the DITM portfolio this morning as COST looked like it would offer a fast turnaround for a quick win. Quick wins are always the goal. Not always what we get, but what we strive for.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and have room for quantity. From open to close, the place is always busy, always hopping, and always clean.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop, with the exception of the Kirkland brand of products which are Costco’s own brand of merchandise.

I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 618 warehouses in the United States and nine other countries and employs 96,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $104.89 billion annually, $6.51 billion in the bank and $4.89 billion in debt, with operating cash flow of $3.60 billion. It has a return-on-equity (ROE) of 17.30% and forward price-to-earnings (P/E) ratio of 22.72, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

Last month, the company posted a new 52-week high mark of $120.20 and the stock closed yesterday, trading at $115.65 and is dropping significantly this morning, and showing a great buy opportunity.

Please note that COST options usually carry an extra buck or two in premium over the standard Nails formula because the stock price is up there and it can support it. It’s a percentage thing and rather consistent.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Also, please drop me a note if your average cost is above the current GTC posted selling price. I would like to make sure that everyone can clear their own personal board right along with Nails, when we finally take these to the bank.

Today, I’m going back out shopping. When it comes to shopping at a discount store, I’ll take this one – Target Corp. (TGT).

Revenue comes in at $73.14 billion, cash in the bank sits at $1.82 billion and operational cash flow is measured to be $7.25 billion with total debt about twice cash flow at $14.27 billion. I do wish they would keep more cash around, but – this isn’t a new stat and the company has made money for us before.

Last week’s pull back in share price is providing us with a nice opportunity to score while many other choices are looking at testing resistance not support. Target’s share price has dropped enough for some upside potential, with a Forward P/E of 13.02 and Return on Equity of 17.29%.

The price for this option is right on target with our Nails pricing strategy if TGT moves the direction indicated this morning before the bell. If filled, don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

Much has changed at the construction- and earth-moving equipment vendor over the last year or two and I have started to notice more construction in the works here in So. Cal.  – beyond freeway improvements, which seem to be everywhere. Both are good signs for CAT and the heavy equipment /construction industry.

The 52-week high tops out at $99.70 and the low $79.49 which is a pretty large spread, with the stock trading a bit lower than midway at $83.96 at yesterday’s close. The stock chart shows a lot of volatility with some nice upward potential.

There is resistance is now around $90.00 so we can lock in a win well before resistance is tested, that is – if we can get in a position to score by getting on base. CAT options always trade with a steep premium.

Here are the stats to make note of: Forward P/E Ratio – 11.42 (nice) / PEG Ratio – 1.20 (OK) / Return on Equity 25.25% (very good, but a bit down) / Quarterly Growth – -43.50% (this has improved since picked last) / Revenue $60.35 billion / Debt $49.55 billion (it is a bit high) / Operating Cash Flow – $7.86 billion.

After the order is filled, set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

I try to be consistent with the methodology and I try not to ever be greedy. This is a quick strike system, but it has plenty of insurance for time. Because we buy our options long, we can correct when the market reacts to news. This keeps us ahead of the game and on target for win after win.

So for today’s pick, I am going back to one my favorite companies for the Nails strategy: Yahoo! (YHOO).

I not only like Yahoo! as a stock, I am a long time customer and user of their internet services. Like many small business entrepreneurs, I have several online email accounts and my Yahoo! account is always the most used. I have found that Yahoo! offers what I believe is the best online email platform you can get for free, although I’ll admit – I don’t mind paying for the additional features they have built in the system for small business users.

Yahoo! is a leader in providing Internet services, and the Yahoo! website is one of the most trafficked in the world. The company provides advertising through a distribution network of third-party entities and Internet searches. The company continues to buy up smaller companies and integrate what they find useful or spit them out later.

Yahoo marked a new 52-week high last month of $27.35, but then immediately tanked. Since then it has been trending steadily as it was before the big upsurge. The overall trend is up and the volatility will help us score another DITM win.

Right now Yahoo! sits on a bank account that has $2.63 billion in cash and cash equivalents. By comparison their debt is only $125.64 million which is a nice cash position to have. Operating cash flow is negative with the recent acquisition of Rockmelt, but that will soon correct itself.

Check out the recommendation above and as soon as your order is filled, immediately set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

Right now the numbers for Kraft are: Forward P/E ratio of 18.82, Return on Equity of 24.13%, Revenue of $18.38 billion, total cash on the balance sheet of $1.16 billion, debt of $9.97 billion.. The stock closed yesterday at $57.50, which is off the 52-week high by only a few cents over a point with short term support at about $56.50, with additional back up support at nice intervals.

Timing is looking good for a buy and the stock is expected to open low this morning so the recommendation has been adjusted accordingly.

I recommend buying 10 contracts at the price listed above and if the order fills, a GTC (good ’til cancelled) order should be set immediately at $1 above your purchase price.

Remember: Life’s a Journey, Enjoy the ride.

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

Home Depot (HD) was added to the portfolio on Wednesday and is now listed in the open portfolio.

Microsoft Corporation (MSFT) and Coca-Cola Company (KO) were added to the portfolio recently and need no adjustments. We hold 10 contracts of each.

Intel Corporation (INTC) was added to the portfolio on June 21st and we currently have 20 contracts with an average price of $4.50 with our options trading for $3.90. In looking at Intel’s chart, we can see short term share price coming down and long term trending bottoming out. I am adjusting the rebuy price for Intel just a bit.

Verizon Communications Inc. (VZ) has been in the open portfolio since May 8th. We now have 60 contracts with an average price of $7.20 with the options currently going for $6.50. Verizon’s rebuy price has been adjusted as well.

ArcelorMittal (MT) has been on the scorecard for about seven months. I’ve got the trade listed on the scorecard with an average price of $3.90. The options are currently trading for $2.87 showing much improvement from last month, although dropping in share price this last week in anticipation of MT posting earnings this morning and missing expectations.  Keep an eye on the updated rebuy price and buy as many contracts and/or double up one last time as recommended last month.

Xerox Corporation (XRX) –This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve last year, leaving us with 200 contracts, with an average price of $4.82, rounded to $4.80 for the scorecard. XRX looks ready to pop for us and jump a point or two, with the options selling now for $4.65. Look for a quick exit, should the stock make that desired move up. And, I will continue to be hopeful for this one to break even or post a win – without spending more on this recommendation.

Founded in 1978, The Home Depot, Inc. is the world’s largest home improvement specialty retailer with current revenue at $76.07 billion operating cash flow of $7.18 billion. The Home Depot has 2,257 retail stores in the United States, Canada, Mexico and China and employs about 340,000 full timers. They are based in Atlanta, Georgia.

I’m sure that each of us has been to Home Depot many, many times.

The forward P/E is 18.41 and the PEG ratio is 1.42, both a bit higher than ideal to indicate perfect timing. Total debt is $12.79 billion with cash in the bank at $4.34 billion, numbers that would make me happier if reversed, but debt is not a bad thing if managed well and operating cash flow is healthy.

If your order is filled, remember to set a good-till-cancel (GTC) sell order at $1.00 above the purchase price for a lock quick win.

Companies like Altria Group, Inc. (MO) – which is today’s choice – can be profitable for our bottom line,   even if we may not like what they sell. And, when it comes to making money, we should not let our emotions get in the way, at least not when it’s a stock choice. Although it is easier to pull the trigger when you love the products of the companies you buy – it’s not a requirement for making a profit.

As you know, MO primarily manufactures and sells cigarettes, smokeless products, with brands such as Marlboro, Copenhagen, Skoal, along with a few others. The company also maintains a portfolio of leveraged and direct finance leases in rail and surface transport, aircraft, electric power, real estate, and manufacturing. The company was founded in 1919 and is headquartered in Richmond, Virginia and employs about 9,100 people.

The stats for the company to note are: Forward P/E: 13.97; Return on Equity: 111.62%; Quarterly Earnings Growth: 3.30%; Revenue: $17.42 billion; Total Cash: $2.57 billion; Total Debt: $14.87 billion and Operating Cash Flow: $4.56 billion.

The stock chart shows upside potential, downward support at multiple levels, so timing is right for an easy DITM win.

Please remember that when the order fills, it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

There is probably no other company you can invest in that is guaranteed to instill some appreciation for what they do from people of all ages even if you feel the commercialism crowding you in more than the people when you visit one of the Disney Resort theme parks.

As a company, Disney is much more than the Mouse. They are a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures, Pixar and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Disney is again showing a drop in share price from the 52-week high posted mid-May. This is the opportunity we need to catch a quick win on the bounce. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $43.76 billion; Forward P/E is 16.35 and the PEG Ratio is 1.52; Return on Equity is 15.43%; total cash is $3.95 billion; operating cash flow is $7.72 billion and debt is a little less than twice that at $16.94 billion.

Please note that earnings for Disney are less than two weeks hence. Should that be too close for you, then sit this one out.

Please remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

In the mean time, the overall rise in share prices bodes well for the open portfolio. It’s been a long time since there have been so few open positions, which is a very good thing – especially the glimmer of sunshine we are seeing for both MT and XRX. My advice, go out and spend money if you can to keep the economy moving up.

If your order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Today I will go with Microsoft Corporation (MSFT) following a HUGE sell off after terrible earnings. Thankfully, MSFT didn’t tank across the board, tablet sales and Windows 8 sales are mostly the cause. MSFT has missed the boat before with lackluster Windows products (anyone remember Vista?), however, they seem to correct what people don’t like quickly and this drop in share price, the biggest one in years – doesn’t mean the death of a giant, for us at Nails it means opportunity.

The company remains one of the strongest out there, period. You can let the numbers be your guide. MSFT has a Forward P/E ratio currently of 10.33, a PEG ratio of 1.35. Revenue remains very strong at $77.85 billion, cash in the bank at $76.44 billion, debt of only $16.24 billion in comparison with operating cash flow of over $28.83 billion which is still excellent in anyone’s book. Return on Equity is a strong at 30.09%.

If your order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

My pick today is Abbott Laboratories (ABT), which is trending higher along with most everything else, but still has a way before it will post a new 52-week high. ABT should give us a chance to score another quick DITM win with this pharmaceutical giant

Revenue comes in at $39.97 billion, a Forward P/E ratio of 15.94. Abbott has $8.52 billion in cash with $7.10 billion in debt on $7.55 billion in operating cash flow. Further, its one-year low is only 23% off of its high making this is a very stable company to go with.

Please remember that once your order fills it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Phillips operates as an independent downstream energy company that operates in three segments: refining and marketing; midstream; and, chemicals. These are the people that refine, market, and transport the liquid gold that ends up in our fuel tanks.

And with slim pickings out there for a decent recommendation, I was very pleased to find a stock chart with timing opportunity. The charts along with the key stats I watch – all tell me this is a solid play for today. With Lenny’s DITM calls strategy, timing is key.

Revenue for PSX comes in at $161.37 billion; Forward P/E is 8.33; Return on Equity is 21.17%; quarterly earnings growth at 121.20%; total cash is $4.75 billion; operating cash flow is $6.87 billion and debt is just a bit higher at $6.97 billion. Those are some impressive numbers.

Remember to lock in a win with a GTC sell order $1.00 higher than the purchase price, once your contracts are filled.

Remember: Life is a Journey; enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

Although it has been a while since it was last recommended, KO is one of the favorites to the DITM strategy here at Nails and when it looks good – we need to do what we can to let it win for us.

Coca-Cola Company is the largest beverage company in the world and produces over 500 brands. They are also the No.1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffee. Even with pressure from the United Nations to limit advertising to emerging markets to restrict advertising to children under 12, there may not be a market that Coke hasn’t already sewn up the market, as it is the world’s most recognizable brand.

Founded in 1886 and headquartered in Atlanta Georgia and employing about 150,000 people worldwide, Coca-Cola represents the world’s most valuable brand and KO products are sold in over 200 countries worldwide at the rate of 1.6 billion servings per day. By selling the syrups direct to local bottlers and licensing the brand names, Coca-Cola has developed a distribution system that works beautifully. The company focuses on marketing and production and does an excellent job of keeping up with current trends in the beverage market.

The brands are so diverse- Fanta, Sprite, Nestea, vitaminwater, Odwalla, Sprite, Minute Maid, Hi-C, Powerade, and so many more…  Chances are, if it’s non-alcoholic and comes in a can or bottle, it is likely a Coca-Cola product.

Right now the numbers for Coca-Cola are as follows: Forward P/E ratio of 17.76, Return on Equity of 26.59%, Revenue at $47.92 billion, total cash on the balance sheet of $18.44 billion, debt of $35.12 billion, and operating cash of $10.63 billion. The stock closed yesterday at $41.03 with short term support trending higher.

Remember to place a GTC sell order to lock in a win if your order is filled.

Remember: Life’s a Journey, Enjoy the ride.

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 26,000.

QCOM is a monster company with revenue of $21.64 billion, debt at only $22.0 million as compared to total cash of $13.49 billion and operating cash flow of $6.52 billion making for a very solid balance sheet with a debt ratio that is truly enviable. The company’s forward P/E ratio is a modest 12.17 with a PEG Ratio of 0.73 and a return on equity of 17.87%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice and the timing is looking fantastic yet again.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Today is no different, as I will go with Microsoft Corporation (MSFT) yet again.

Microsoft has been a consistent winner in the Nails DITM calls strategy, and much of what I do all day is monitor the same winning stocks to see where opportunity is knocking. MSFT has given the Nails strategy many such opportunities and it is looking good again today.

The company remains one of the strongest out there, period. You can let the numbers be your guide. MSFT has a Forward P/E ratio currently of 11.18, a PEG ratio of 1.42. Revenue remains very strong at $76.01 billion, cash in the bank at $73.79 billion, debt of only $14.76 billion in comparison with operating cash flow of over $30.61 billion which is excellent. Return on Equity is a strong at 22.58%. Quarterly earnings growth is 18.50%.

However, earnings will post on the 18^th of the month, so we are closing in on a possible surprise. Lenny likes to stay away from picks the week of earnings. That falls next week. If the recommendation is too close for you, by all means – let it go.

Right now the stock chart is showing nice timing.

Please check out the score card page for trading details and if your order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

The market continues its EKG looking volatility, making it hard to predict what direction the day will bring.

Today’s recommendation is DuPont de Nemours & Company (DD).

From previous columns, you will know that this household name has been around for over 200 years and operates as a science and technology company in various areas, including biotech, electronics, materials science, safety and security, and synthetic fibers. A couple of DuPont brands everyone is familiar with are Corian, Kevlar and Teflon. For many years DuPont was one of the most sought after stocks to own for its consistent dividend payouts.

Yesterday the stock closed at $52.54 which is down several points from the recent high posted at the end of May. The stock chart is looking like there is room for a comfortable bounce to score us another DD win.

DD’s forward price to earnings ratio is 12.13 today and anything below 15 is considered to be undervalued by Wall Street, so DuPont is in the sweet spot with that stat. Revenue of $35.24 billion, kicking back a return on equity of 21.73 percent. They have about $13.28 billion in debt and total cash of $6.58 billion. It would be better if those numbers were reversed. However – DuPont has been around for so long, they have a track record for managing debt successfully. Lastly, the company has $4.06 billion in operating cash flow.

Please see the stat book page for the specific trading details for today’s recommendation and remember to set a good till cancelled sell order for $1.00 higher than the purchase price, to cash in on a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.
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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Once a month it is important to go over the portfolio and review each open position. This morning, here is where we stand with each.

EMC Corporation (EMC) was Friday’s pick and is the newest entry to the scorecard. We now have 10 contracts and the first rebuy level is posted with the new position.

General Electric Company (GE), Intel Corporation (INTC), and Texas Instruments Inc. (TXN) are all recent additions with only 10 contracts each and no changes necessary. With GE we are at even money, with INTC we are down about 30 cents and with TXN we are down about 25 cents. All three positions are in good shape for a market bounce.

Wal-Mart Stores Inc. (WMT) was added on the 22^nd of May. The Nails virtual portfolio now holds 40 contracts with an average price of $11.90 with the option going for $12.29. This puts our position in the green and nearly half way to our good till cancelled sell price goal. The most recent rebuy occurred a week ago and the rebuy level is just fine.

Verizon Communications Inc. (VZ) has been in the open portfolio since May 8^th. We now have 50 contracts with an average price of $7.30 with the options currently going for $7.50 putting us in good shape for a nice win. VZ is the only stock rebuy price that has been adjusted for the review. Please make a note of the new price listed.

ArcelorMittal (MT) has been on the scorecard for a little over six months. I’ve got the trade listed on the scorecard with an average price of $3.90. The options are currently trading for $2.00 and the stock is slumping yet again. With the options going for about $3.20 in early June, if we hit the next rebuy level, we should double up one more time. It would lower our cost to about $3.00 and give us an average price lower than what was seen by the options a short time ago. That would really help us clear this one out for a win as we know the option breakeven point is achievable in the short term and a win could then be up next.

Xerox Corporation (XRX) –This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve last year. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We need XRX to go up about 2.5-3points to see a win at this price. I continue to be hopeful for this one to break even or post a win – without spending more on this recommendation.

Now to today’s recommendation: The Walt Disney Co. (DIS).

Disney is a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Disney is showing a drop in share price from the 52-week high posted mid-May and is down several points. This feels like opportunity to catch a quick win on the bounce. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $43.76 billion; Forward P/E is 16.03 and the PEG Ratio is 1.47; Return on Equity is 15.43%; total cash is $3.95 billion; operating cash flow is $7.72 billion and debt is a little less than twice that at $16.94 billion.

Please see the scorecard page for trading details and remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens. Also, note that DIS option leaps go for a bit more than the usual Nails formula and the recommendation has been adjusted for that price point. It’s not overpaying if the extra premium is always there and it’s a proportional price to option thing.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today’s pick is IT giant EMC Corp. (EMC). EMC is a monster company that has been providing information storage solutions for 30+ years. They provide IT solutions to every industry and to nearly every country around the globe. If you’ve got a computer network, chances are good EMC was or is involved. Their company tag line is: “where information lives,” and they aren’t kidding.

In looking at the numbers I see a forward P/E of 11.33, which is a good indicator that the stock is trading at a good price. Anything under 15 is considered to be undervalued, and that is the place we want our stocks to be priced. When they are undervalued, that’s the best time to buy.

Revenue for the company is close to $22.01 billion, total cash on hand is $6.53 billion and debt is very reasonable at $1.70 billion. The company scores big for keeping debt ratios manageable and operating cash flow of $6.29 billion would cover all the bills and have several billion left over in a pinch.

Please check the stat scorecard page for trading details and If the order fills, remember to immediately set up a GTC sell order $1.00 higher to cash out a cool $1000 gain.

Should the stock decline in price, I will then recommend to subscribers to watch the Next Buy column on the scorecard to know when to place an order for additional contracts, which are needed to improve the position’s average price. This way – on the rebound, the stock doesn’t need to regain as much in share price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Additionally, your feedback goes a long way towards helping us achieve that goal. If you’d like, please take the time to chime in and let us know what we could do better and if there are features we don’t have, that you would like to see – well, tell us about these ideas too.

This morning I am going back to a consistent winner, General Electric (GE) and the timing is looking favorable to putting GE in a position to win for us yet again. We scored with GE last week, but now the share price is back down to where our average price was when we scored.

Share price is trending down up in both short term and long term averages. There are several layers of support making this multi-national conglomerate a good deal. The option prices are excellent as well – cheaper than the Nails formula – so good news all around.

If you venture out to the GE website and look up their products and services listing – it is quite the list – as GE now covers just about everything from household appliances, aviation equipment and asset management, power generation and distribution, water processing and so on – even entertainment and banking. You could almost say you have a diversified portfolio with just this one purchase.

Here are the numbers to note:  Revenue:  145.62 billion / Forward P/E:  12.76 / Return on Equity:  12.17% / Cash:  89.78 billion / Debt:  397.41 billion / Operating Cash Flow: 29.48 billion.

Debt is outrageously high but the company has a track record of managing debt well and I have found that older companies have more of a tendency to keep a lot of debt. GE has been around since 1892, so that qualifies as not just old but quite stodgy too. The company was originally founded by Thomas Edison and funded by JP Morgan, no lightweights in American History.

Please see the stat book page for trading details and once filled set a GTC (good ’til cancelled) order at $1.00 higher than your average cost to lock in a $1000 gain.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in the Nails Investments newsletter by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission, or with any state securities regulatory authority. The Nails Investments newsletter contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon the product for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

We currently have Intel, Qualcomm, and Texas Instruments in the open portfolio. That’s a lot of tech stocks in an open portfolio of only eight open positions. Cramer would say the portfolio isn’t diversified enough. However, I don’t make recommendations based on keeping the open portfolio diversified. I expect you to do that in your own portfolio, but it’s just one too many variables for me to fuss over, and good recommendations seem to follow market sectors. When tech is a good choice – there can be several to pick from.

Today is no different, as I will go with one of our Nails favorites and another tech giant: Microsoft Corporation (MSFT).

Microsoft has been a consistent winner in the Nails DITM calls strategy, and much of what I do all day is monitor the same winning stocks to see where opportunity is knocking. MSFT has given the Nails strategy many such opportunities and it is looking good again today.

The company remains one of the strongest out there, period. You can let the numbers be your guide. MSFT has a Forward P/E ratio currently of 10.87, a PEG ratio of 1.39. Revenue remains very strong at $76.01 billion, cash in the bank at $73.79 billion, debt of only $14.76 billion in comparison with operating cash flow of over $30.61 billion which is excellent. Return on Equity is a strong at 22.58%. Quarterly earnings growth is 18.50%. Don’t you just love these numbers?

Additionally, if anyone has caught some of the hype regarding the next Xbox to be released this fall, if you’re not impressed then perhaps you could explain why. If you haven’t seen anything yet, take the time to give it a look and then tell me what you think.

But while we wait for that to come out and see if it meets expectations, right now the stock chart is showing perfect timing and the option price is right for an easy fill today.

After the order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

You could say it was a typical overreaction.

Over the next few market days, I will take a closer look at the rebuy levels of each stock held in the open portfolio to make sure we don’t miss opportunity or buy too quickly. If you want to ease off on jumping in to rebuy while I allow the market to take a breath, feel free to join me and put the brakes on any rebuys today.

Looking at our open portfolio, Wal-Mart was the only stock in to hit a rebuy, and we also scored a win with Pfizer on Wednesday before the bottom fell out.

Now to today’s pick: Intel Corporation (INTC).

In April, we scored our single biggest win with INTC got another quick win last month. It is once again looking like a very nice buy opportunity. Share price dropped several points this week from the recent high and the 200-day moving average is finally leveling off from the big drop in share price last year. This shows me there is long term upside potential, and along with a dip in the slow stochastic chart, I see a buy opportunity.

Here at Nails we have stated many times – Intel continues to be one of the most dominant companies in the world. It defines the term “wide moat,” meaning Intel has very few competitive disadvantages. They control the playing field with an 80% market share and this makes them one of the single best stocks in the world. And they will continue to perform.

INTC closed trading yesterday at $24.18, which is down from the 52-week high of $27.75 posted last June.

Let’s look to the numbers:

Revenue:            53.02 billion

Forward P/E:      11.97

PEG Ratio:           1.18

Return on Equity:             21.06%

Cash:     17.16 billion

Debt:     13.35 billion

Operating Cash Flow:     20.20 billion

Please check the scorecard for today’s trading details.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today, I found a few nice choices I could have gone with, and looking to add Costco Wholesale Corporation (COST) to the DITM portfolio this morning as COST looked like it would offer a fast turnaround for a quick win. Quick wins are always the goal.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and have room for quantity.

It’s my favorite store. If I have any muscle memory, it will be going to Costco. I am there practically every Saturday morning at the 9:30 am open to beat the hordes that show up an hour later. From open to close, the place is always busy, always hopping, and always clean.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop, with the exception of the Kirkland brand of products which are Costco’s own brand of merchandise.

I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 618 warehouses in the United States and nine other countries and employs 96,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $104.89 billion annually, $6.51 billion in the bank and $4.89 billion in debt, with operating cash flow of $3.60 billion. It has a return-on-equity (ROE) of 17.30% and forward price-to-earnings (P/E) ratio of 22.17, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

Last month, the company posted a new 52-week high mark of $115.77 and the stock closed yesterday, trading at $112.08, with all technical indicators predicting more upward momentum. Please note that COST options usually carry an extra buck or two in premium over the standard Nails formula because the stock price is up there and it can support it. It’s a percentage thing and rather consistent.

Please check the stat book page for trading details just below the open positions chart.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

After stopping at the bank, three separate DMV offices (to find one with a short line) and grabbing some McDonalds for breakfast and In-N-Out Burgers for lunch, we made our way into LA for Lenny’s first filmed interview. After leaving him settled in at his new abode, I then made my way back through nearly three hours of Friday night traffic back home.

A long but happy day.

Now to Nails…

A week ago I went with longtime Nails favorite – Proctor & Gamble Co. (PG) and the pick didn’t fill. The stock chart is still looking good for PG, so I will just grab my shopping cart and head right back down the cleaning aisles in the grocery store.

Sometimes if we don’t get on base right away, the same stock can continue to be a good choice for several days. There used to be a time when the picks here at Nails were not let go after just a single trading day, we left the buy recommendation open for a week to fill. That was back in 2007 and 2008. When investments got a little dicey, it became prudent to shorten the time frame. However, there are times when a little patience would work out in our favor.

If a pick doesn’t get filled, but still looks like the best choice for the column, I’ll just revisit the stock instead of globally increasing the time frame for each pick to fill. At some point in the future, we may go back to having the picks open for a week, just not yet.

Proctor & Gamble probably makes just about every household consumable supply you have. You can go to http://www.pg.com/en_US/brands/all_brands.shtml and check out how often a P&G product falls into your household shopping cart. They have 12 brands that have sales over a billion dollars each and 19 brands that top $500 million in sales each. That, my friends, is a lot of soap. Here is the alphabetical list of brands that top a billion in sales: Always, Ariel, Bounty, Braun, Charmin, Crest, Dawn, Downy, Duracell, Fusion, Gain, Gillette, Head & Shoulders, Iams, Mach 3, Olay, Oral B, Pampers, Pantene, Tide, and Wella. How many of these do you buy?

Revenues are posted at $83.72 billion, $14.45 billion in operating cash flow and $5.88 billion in cash or equivalents on the balance sheet. Debt is more than twice operational cash flow, it comes in $32.22 billion, but the company is such a staple of consumable supplies and they’ve been around since 1837 and I don’t plan to stop showering or shaving or moisturizing anytime soon.

The company has a return-on-equity (ROE) of 17.53% and forward price-to-earnings (P/E) ratio of 17.48 is a bit higher than I like. But, once again – it’s the stock chart I continue to like today and the drop in price over the 52-week high that posted in April along with another peak on May 24th that spells out opportunity. It is telling me to buy along with doable option price. I do like it when that happens.

Please see the scorecard page for trading details and don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as we hit the target.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

The goal of the Nails strategy is to get in and get out with a quick win. QCOM has performed again and again.

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 26,000.

With QCOM components taking up residence in the new Galaxy S IV – hyped to take the smart phone top spot from the iPhone. For us here, it really won’t matter if they achieve that goal or not. No matter how you look at it, they are going to make millions of components for millions of phones. One article stated that Samsung has planned to sell 100 million phones over the next few months.

QCOM is a monster company with revenue of $21.64 billion, debt at only $22.0 million as compared to total cash of $13.49 billion and operating cash flow of $6.52 billion making for a very solid balance sheet with a debt ratio that is truly enviable. The company’s forward P/E ratio is a modest 12.56 with a PEG Ratio of 0.75 and a return on equity of 17.87%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice and the timing is looking fantastic.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

The market this morning is expected to open higher than the close on Friday and this morning’s pick will as well. However, it’s the stock chart that has me grabbing my shopping cart as I virtually head to the grocery store to see how many labels I can find with a Proctor & Gamble Co.(PG) logo on them again.

Proctor & Gamble makes just about every household consumable supply you have. You can go tohttp://www.pg.com/en_US/brands/all_brands.shtml and check out how often a P&G product falls into your household shopping cart. They have 12 brands that have sales over a billion dollars each and 19 brands that top $500 million in sales each. That, my friends, is a lot of soap. Here is the list of brands that top a billion in sales: Always, Ariel, Bounty, Braun, Charmin, Crest, Dawn, Downy, Duracell, Fusion, Gain, Gillette, Head & Shoulders, Iams, Mach 3, Olay, Oral B, Pampers, Pantene, Tide, and Wella. How many do you buy?

Revenues are posted at $83.72 billion, $14.45 billion in operating cash flow and $5.88 billion in cash or equivalents on the balance sheet. Debt is more than twice operational cash flow, it comes in $32.22 billion, but the company is such a staple of consumable supplies and they’ve been around since 1837 and I don’t plan to stop showering or shaving or moisturizing anytime soon.

The company has a return-on-equity (ROE) of 17.53% and forward price-to-earnings (P/E) ratio of 17.96 is a bit higher than I like. But, once again – it’s the stock chart I like today and the drop in price over the last couple of weeks that spells out opportunity. It is telling me to buy along with doable option price. I do like it when that happens.

Please see the scorecard page for trading details and don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as we hit the target.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

We like market volatility.

Today, I am going with a very well known brand that has provided happiness, joy and adventure for all ages since 1955, as well as a few rides that go up and down too. The Walt Disney Co. (DIS).

There is probably no other company you can invest in that is guaranteed to instill some appreciation for what they do from people of all ages even if you feel the commercialism crowding you in more than the people when you visit one of the Disney Resort theme parks.

I’ve even heard that they pipe the smell from the local candy making shop out onto Main Street, so the smell of sweets will instill the desire to spend money and inspire the feeling of happiness and well being. I could see how that would work. For example, most people like or feel nostalgic with the scent of freshly baking chocolate chip cookies and other goodies.

As a company, Disney is much more than the Mouse or a series of theme parks or cleverly placed aromas. They are a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Disney is showing a drop in share price from the 52-week high posted mid-May and is down by 7%. This smells like opportunity to catch a quick win on the bounce. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $43.76 billion; Forward P/E is 16.14 and the PEG Ratio is 1.47; Return on Equity is 15.43%; total cash is $3.95 billion; operating cash flow is $7.72 billion and debt is a little less than twice that at $16.94 billion.

Please see the scorecard page for trading details and remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride!

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

However, most results were between $5,000 and $20,000 which lets me know that most subscribers play the strategy a bit more conservatively, which is extremely good in avoiding risk. I didn’t find anyone who was disappointed with their results, which is my daily goal.

Making Nails a valuable service is very important to me and the best way for me to improve is by your feedback on how it works for you. Whenever you score a nice win or have questions or concerns, please pop me an email here though the comments section of the website. These requests are forwarded to both Lenny’s email and my own, and very soon now Lenny will start seeing those comments.

Now to the day’s pick.

In the morning’s research, I found several nice choices and will once again look to add Qualcomm Incorporated (QCOM) to the Nails open portfolio. QCOM has performed quite nicely for the Nails strategy this year.

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 26,000.

With QCOM components taking up residence in the new Galaxy S IV – hyped to take the smart phone top spot from the iPhone. For us here, it really won’t matter if they achieve that goal or not. No matter how you look at it, they are going to make millions of components for millions of phones. One article stated that Samsung has planned to sell 100 million phones over the next few months.

QCOM is a monster company with revenue of $21.64 billion, debt at only $22.0 million as compared to total cash of $13.49 billion and operating cash flow of $6.52 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 12.98 with a PEG Ratio of 0.78 and a return on equity of 17.98%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Intel Corporation (INTC) was added back to the open portfolio last week. We have 10 contracts and no changes to the rebuy are necessary.

Texas Instruments Inc. (TXN) was added on the 24^th of the month. We currently have 10 contracts and the stock chart is demonstrating that the rebuy level is fine, however our average is currently $9.40 and the options are currently going for $10.00. It looks as though a rebuy will hit but, in doing so, our average price would not improve at that level. I am lowering the average price to the next support level down, so that when a rebuy is necessary, it will improve our position. Please remember that the rebuy price targets when the stock share price reaches support. If buying at that level doesn’t help our position, there is no need to add more money to the position.

Wal-Mart Stores Inc. (WMT) was added on the 22^nd of the month. The stock hit a rebuy price on Friday, prompting us to pick up 10 additional contracts at $12.20. This lowers our average price from $13.60 to $12.90. The open portfolio has been updated to reflect this change.

Verizon Communications Inc. (VZ) has been in the open portfolio since May 8^th. We have 40 contracts with an average price of $7.80 with the options currently going for $6.20. The stock is right there at the rebuy price and rebuying at this level will definitely improve our average price. From there, VZ looks to be poised to start trending back up.

Pfizer Inc. (PFE) was purchased on the first of last month. We currently hold 30 contracts with an average price of $6.60 as the rebuy for this option also hit on Friday. I have updated the open portfolio to reflect this change.

General Electric (GE) has been with us since March 30^th and we have 20 contracts with an average price of $5.40. Our GE options are currently trading for $5.65, putting us slightly in the green with this position. The rebuy level here is correctly posted and no change is needed.

ArcelorMittal (MT) has been on the scorecard for almost six months. I’ve got the trade listed on the scorecard with an average price of $5.10. The options are currently trading for $3.20 and the stock rebuy price has been adjusted to account for recent gains. We do need to rebuy here while it’s low to get that average price down.  With the next rebuy, we should double up or buy as many as possible.

Xerox Corporation (XRX) –This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We need XRX to go up about 3points to see a win at this price. I continue to be hopeful for this one to break even or post a win – without spending more on this recommendation.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

And as usual – once again I am reaching back into the basket of solid stocks and selecting one that has a strong ability to provide a bounce and a quick win for the Nails DITM calls system – Johnson & Johnson (JNJ). As you know, when trading Lenny’s DITM calls, we continue to revisit the same stocks, returning to the well when market conditions and technical indicators are right.

JNJ isn’t far from the 52-week high, but it has dropped a couple points in price in the last week, so there is room for a predictable bounce if the market sees short term gains. If the price drops further – we will be on base with a good option price will have enough intrinsic and time value for a significant pull back in order to shore it up and make the strategy work.

So we stay the course with our DITM calls strategy and revisit Johnson and Johnson as it currently presents us with a very solid, safe play. They have been around since 1886 and provide us with such household names as over the counter pharmaceuticals as Tylenol, Sudifed, Zyrtec, Pepcid and Motrin IB, along with many others.

Johnson and Johnson stock closed yesterday at $85.99. Their financials are the definition of “healthy” with and undervalued forward price-to-earnings ratio of 14.85, revenue of $68.59 billion, total cash in the bank of $21.67 billion, and debt comfortably less than that at $15.89 billion and operating cash flow of $14.88 billion. Quarterly earnings saw a dip of -10.60%, and the trailing P/E ratio is high at 23.35, an indicator of why share price has dropped.

However, the stock chart shows promise for short term gains with the 21-day, 50-day and 200-day moving averages still trending up and the spaces between them still widening out, which is an indications of continued upward momentum.

Please see the scorecard for trading details and look for a very nice and healthy “W” in our future.

Once an order is filled, it’s important to remember to immediately place a GTC sell order for $1.00 higher than your purchase price to automatically cash in a win for $1000 when the option price hits the sell mark.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.
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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

You’ve been with me through all Lenny’s legal ups and downs. As he winds down the remaining days of his stint in federal custody, at some point today – we should learn what day he will be released. We are expecting it to happen one day next week on the early side or the following week if they have not gotten the paperwork completed yet. Either way, it’s down to days now.

His official release date as published by the Bureau of Prisons shows June 16, 2013. However, Lenny has been told that it will not happen on a weekend.

Lenny is looking forward to his release, so that he can finally put these issues behind him. He is also looking forward to being able to once again be involved with the newsletter here, among other things.

With the Nails strategy, we continue to pick winners and we do that by revisiting stocks for a short term gain. We chalk up a win and move on.

“One Win pays for the Whole Year!” That’s our tag line. It works.

We don’t lament on stocks that continue to rise after we’ve scored our win, and we protect those positions that have dropped with a rebuy strategy. It’s a simple, yet effective strategy. Additionally, we track every pick, record every move and keep score.

Now to today’s pick: Intel Corporation (INTC).

Last month we scored our single biggest win with INTC and it is once again looking like a buy opportunity. Share price has come down slightly from the recent high and the 200-day moving average is finally leveling off from the big drop in share price last year. This shows me there is long term upside potential, and along with a dip in the slow stochastic chart, I see a buy opportunity.

Here at Nails we have stated many times – Intel continues to be one of the most dominant companies in the world. It defines the term “wide moat” meaning, Intel has very few competitive disadvantages. They control the playing field with an 80% market share and this makes them the single best stock in the world. And they will continue to perform.

INTC closed trading yesterday at $23.93, which is down from the 52-week high of $27.75 posted last June.

Let’s look to the numbers:

Revenue:        53.02 billion

Forward P/E:   11.86

PEG Ratio:      1.17

Return on Equity:        21.06%

Cash:   17.16 billion

Debt:   13.35 billion

Operating Cash Flow: 20.20 billion

Please check the scorecard for today’s trading details and remember to lock in a win with a GTC sell order at $1.00 over the average purchase price.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

TI’s vision for new products is to help create self-driving cars for which my husband cannot wait for and controls for home appliances linked to your cells phones. In the future – TI and I both seem to think that our world will soon be condensed into what can be programmed into a phone app or how you can gain access to their new DLP technology for projectors using a wide array of platforms, including again – smart phones, tablets and laptops.

From previous columns about the company, you will know that Texas Instruments is a world leader in digital signal processing and analog technologies. With close over 34,000 employees worldwide, they are a monster company with a rock solid balance sheet. Revenue comes in at $12.59 billion and the company’s forward P/E ratio is still looking a bit on the high side at 17.14 and return on equity posts at 16.86%.

TXN manufactures a whole host of products, from audio, video and imaging — to medical, industrial and military products and applications. This company is all about cash management and that is a very healthy way to run a business. Debt doesn’t have to be bad, but if you can keep your cash in the bank and generate continued organic company growth – you are certainly doing something right.

Although last year, TXN added a bit of long term financing to its balance sheet– adding debt by financing the purchase of National Semiconductor. And it is through this new purchase of National Semiconductor that supplies Apple components which should do its part to rally the share price going forward. They have cash in the bank totaling $3.86 billion, debt of $5.68 billion and operating cash flow of $3.32 billion.

Looking to the chart, we see Texas Instruments has been steadily climbing since mid-October of last year and currently sits near $36. I am seeing support at several levels and room again at the top so we wouldn’t need to break resistance to see a win.  We don’t need much of a spread for a good DITM opportunity, so today offers us a good opportunity for a buy.

Please check the scorecard page for the specifics of the trade and when the order fills, remember it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Before I get to today’s pick, I’d like to say “Thank You!!!” to subscriber Richard. In yesterday’s mail I received a very nice letter with his subscription renewal and wanted to let EVERYONE know how much subscriber loyalty means to both Lenny and I. The kindness and thoughtfulness everyone has shown during these last few years is both remarkable and appreciated. It was very kind of Richard to take the time to enclose such a nice letter. Thanks Richard!

So, with that check in hand, let’s go shopping! Today we will look to once again to add Wal-Mart Stores Inc. (WMT) to the portfolio. The world’s largest retailer has the distinction of being the world’s largest, because they have successfully combined savings with a wide selection. The stock has taken a small nose dive from its recent 52-week high, dropping a few points in the last few days.

If you look at the slow stochastic chart, which can be programmed on the stock chart page on Yahoo! Finance, you will see that when Wal-Mart drops into the lower percentile of the chart, it doesn’t stay down there for long. This chart is a great technical indicator for timing. I use this to tell me when there is a good opportunity to buy and I use it to help me calculate the rebuy price.

Wal-Mart is a Major League company and they know how to make that cash register ring 24-7 with revenues of $470.34 billion. Yes folks, that’s right OVER $470,000,000,000 in sales and that my friends is a lot of zeros and a figure that is closing in on half a trillion dollars.

The company just reported earnings, missing the number by a small percentage – so the numbers here will update soon – but, numbers posted online say the company generates $25.05 billion in operating cash flow and have $8.86 billion in the bank with a hefty debt load of $57.08 billion.

Although the debt is large in comparison to cash, this is long term debt, in the stores, the buildings and the land they sit on. You can’t own that much real estate without owing a few mortgage payments and that averages out to about $5.3 million per store. When you consider the size and value of each store, considering only the real estate, it’s not a huge debt to equity position to have.

The company has a return-on-equity (ROE) of 23.62% which is good considering their profit margins are small. Forward price-to-earnings (P/E) ratio is currently at 13.18.

Please see the scorecard for today’s trading details.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Of course, this little biotech company located in the affluent suburb of Los Angeles where Lenny used to live happens to be a pretty big player in the pharmaceutical industry, with revenue posting $17.46 billion and a stock chart showing upside potential in a sea of stocks that are posting all new highs.

Today’s pick is Amgen, Inc. (AMGN)

Back in 2007 – Lenny revisited Amgen (AMGN) several times. The results for Nails were staggering, not because it scored again and again, but – because it was the pick that made people start to pay attention to the Nails strategy and take Lenny’s investment acumen seriously.

Today, we are presented with opportunity to revisit AMGN.

Amgen has been a biotechnology pioneer since 1980, and was one of the first companies to realize the profit potential of bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen has literally changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. The company has collaborative projects with Pfizer, Glaxo Group, AstraZeneca and others to further the treatment of serious illness.

Here are the stats to note: Forward P/E 12.79; Return on Equity 23.95%; Quarterly Earnings Growth 21.10%; Total Cash $21.27 billion; Debt $23.89 billion; Operating Cash Flow $5.96 billion.

Please check the stat book scorecard for trading details and if your order is filled, please remember to set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in the Nails Investments newsletter by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission, or with any state securities regulatory authority. The Nails Investments newsletter contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon the product for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Much has changed at the construction- and earth-moving equipment vendor over the last year or two and I have started to notice more construction in the works here in So. Cal.  – beyond freeway improvements, which seem to be everywhere. Both are good signs for CAT and the heavy equipment /construction industry.

The 52-week high tops out at $99.70 and the low $78.25 which is a pretty large spread, with the stock trading midway at $86.78 at yesterday’s close. The stock chart shows me a recent drop in price with overall upward momentum. This means timing is good for upward potential.

There is resistance is now around $90.00 so we can lock in a win before resistance is tested, that is – if we can get in a position to score by getting on base.

Here are the stats to make note of: Forward P/E Ratio – 10.78 (nice) / PEG Ratio – 0.93 (also nice) / Return on Equity 29.55% (very good) / Quarterly Growth – -44.50% (this has improved since picked last) / Revenue $63.10 billion / Debt $40.50 billion (it is a bit high) / Operating Cash Flow – $6.35 billion.

After the order is filled, set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in the Nails Investments newsletter by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission, or with any state securities regulatory authority. The Nails Investments newsletter contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon the product for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

All of us can sit in front of the TV and play armchair coach, and do a better job of the guys in the game. Being in the game and having a coach that knows how to play the game – all the time, means the difference between a having a winning season or a losing season.

When it comes to deep in-the-money calls, Nails acts as your coach as we have learned how to win nearly EVERY time. There are now 346 wins on the scorecard by picking solid companies and buying options that have plenty of time to go our way. We stack the odds in our favor by understanding the companies we choose and how they are affected by market conditions. Habits of investors are predictable and can be used in our favor. We watch the scoreboard every day, and plan accordingly.

Today’s pick is IT giant EMC Corp. (EMC). EMC is a monster company that has been providing information storage solutions for 30+ years. They provide IT solutions to every industry and to nearly every country around the globe. If you’ve got a computer network, chances are good EMC was or is involved. Their company tag line is: “where information lives,” and they aren’t kidding.

In looking at the numbers I see a forward P/E of 11.13, which is a good indicator that the stock is trading at a good price. Anything under 15 is considered to be undervalued, and that is the place we want our stocks to be priced. When they are undervalued, that’s the best time to buy.

The company announced earnings last month, missed the number, but reaffirmed their full year forecast.

Revenue for the company is close to $22.01 billion, total cash on hand is $6.53 billion and debt is very reasonable at $1.70 billion. The company scores big for keeping debt ratios manageable and operating cash flow of $6.29 billion would cover all the bills and have several billion left over in a pinch.

Please check the stat scorecard page for trading details and If the order fills, remember to immediately set up a GTC sell order $1.00 higher to cash out a cool $1000 gain.

Should the stock decline in price, I will then recommend to subscribers to watch the Next Buy column on the scorecard to know when to place an order for additional contracts, which are needed to improve the position’s average price. This way – on the rebound, the stock doesn’t need to regain as much in share price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

The high temperatures sort of feel like the market; sure, it can get hotter, but cooler seems more likely in the short term. Although the market could indeed continue to warm up, I see many more predictions for a cooling off period. Most stocks are continuing to test resistance and finding a good choice for the strategy remains challenging. However, the improved share prices across the board is good for those stubborn 2014 positions that are still lingering on the open scorecard.

In looking at two of our open positions, Bank of America (BAC) and Procter & Gamble Co. (PG), Bank of America is peaking, but isn’t quite up to our GTC selling target, however PG is looking like it will win any moment, but has plenty of room at the top. If you still have these positions, you may consider being a little prudent and selling BAC while it’s high, but not yet across the finish line and conversely, although PG looks like a win, you could hold it a bit longer and take more profits from the position. It looks as though PG will go up a couple more points in the next few weeks before we see it come back down, apart from the daily volatility of the market.

Today’s pick is one of my favorites – paper and packaging company, International Paper Co. (IP). The metrics are looking good for a quick win.

International Paper is a global paper and packaging company with manufacturing operations in more than 20 countries, including the United States, Europe, Latin America and Asia, and they operate 18 pulp, paper and packaging mills, 94 converting and packaging plants, and five wood products facilities. With annual sales of about $26.20 billion, they employ approximately 70,000 people worldwide, and they have a long-standing policy of using no wood from endangered forests.

They make the products that are essential for today, while sustaining millions of acres of forest for the needs of future generations; as they are the nation’s largest private landowner and seedling grower, planting more than 500 million seedlings a year.

Here are the metrics to take note of: Forward P/E – 10.06; Return on Equity – 11.70%; Revenue – $28.27 billion; total cash – $934.00 million (a little low); operating cash flow – 2.92 billion; debt $12.26 billion (a little high).

Please see the scorecard for today’s trading details and remember to post a GTC (good till cancelled) order at $1.00 higher than the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today’s pick – Eli Lilly & Company (LLY).

LLY has been in business since 1876 employing almost 40,000 and is based in Indianapolis, Indiana. They manufacture drugs that treat a wide variety of chemical disorders such as schizophrenia, bipolar disorder, bulimia nervosa, and ADHD among others. They also make several cancer and cardiovascular drugs as well, helping the medical profession treat a wide variety of conditions.

In recent news, LLY pulled the plug on a new lymphoma drug during late stage trials, costing the company an estimated $30 million or so. However, an important point of interest is that the company did not lower guidance for the remainder of the year with the news which means the company must have built in the drugs disappointing performance into financial predictions.

The stock closed yesterday at $54.56 which is down from the 52-week high by several points. Their financials are solid with a forward price-to-earnings ratio of 19.78 (higher than I will normally choose), return on equity of 31.07%, revenue of $22.60 billion, total cash in the bank of $4.75 billion, operating cash flow of $4.83 billion and debt very close to that at $5.46 billion.

Please see the scorecard for trading details. I see another very nice a healthy “W” in our future.

Once an order is filled, it’s important to remember to immediately place a GTC sell order for $1.00 higher than your purchase price to automatically cash in a win for $1000 when the option price hits the sell mark.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.
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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Verizon is headquartered in New York and is the second largest US telecommunications services provider (after AT&T) and has taken the top spot in wireless services (ahead of AT&T).

Verizon touts itself as America’s most reliable wireless network and the most advanced fiber-optic network. The company delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500. A Dow 30 company, Verizon employs nearly 182,000.

The company’s wire-line business provides local telephone, long-distance, and Internet access services to residential and business customers. I have Verizon FIOS and you can’t get a better consumer internet provider in the home without installing a T-1 line. Their HD TV FIOS service isn’t bad either and picture quality is excellent.

Verizon has spent millions promoting the Droid and the addition of the iPhone hasn’t hurt sales, although FIOS hasn’t performed financially as well for the company as would be expected for the excellent speed and service provided.

However all in all, the numbers are still nice to look at – Verizon has revenue of $117.02 billion; a forward P/E of 16.38; operating cash flow of $33.06 billion; total cash on hand of $6.14 billion; making Verizon a very solid play, even with debt at $52.88 billion.

The chart for the stock tells me timing is good and the recent pull back has provided us with room at the top for getting a win before the need to break beyond resistance, and the option prices are good.

This feels like a quick win for Lenny’s DITM calls strategy.

Remember, once filled – please remember to place a GTC sell order a dollar higher than the purchase price, as this will automatically capture what we set out to achieve; a really quick $1,000 dollar profit.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today’s pick is Cisco Systems, Inc. (CSCO).

The Company provides a line of products for transporting data, voice, and video within buildings, across many platforms, and around the world. Its products are designed to transform how people connect, communicate and collaborate. Cisco Systems, Inc.’s products, which include primarily routers, switches, and products that the Company refers to as its technologies, are installed at enterprises, public institutions, telecommunications companies, commercial businesses and personal residences. They have been in business since 1984 and employs over 66,000 people.

CSCO’s current price is approaching $21.00 and the forward P/E ratio is 9.95, PEG ratio is 1.26, and return on equity is 17.78%. Revenues are $47.25 billion, of which they have $46.38 billion in cash, and $11.87 billion in operating cash flow. The debt is quite manageable at $16.29 billion as compared to operating cash flow and the company has enough cash in the bank to pay off debt nearly three times over, which is a very healthy cash position to be in. I sure wish I had enough liquid assets to pay off my house three times. And, institutional investors make up 72.90% of those that own the stock.

Almost all the stock charts of our favorite Nails picks are looking good for buying puts over calls, but – CSCO’s chart is looking good, beyond the metrics above for additional upside potential and another quick DITM win.

Please see the scorecard page for today’s trading details and remember to set a GTC sell order at $1.00 higher than the purchase price once an order fills to lock in a win when the target sales price is reached.

Always Remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today I am going back to multi-industry conglomerate 3M (MMM).

3M has been a consistent winner for Nails and when the stock chart continues to looks right, I can’t resist taking a swing at it. Using a basket of stocks is one of the better parts of the Nails strategy; knowing you can win with the same choice again and again.

3M is a highly profitable, technologically differentiated innovation machine that is best known for everybody’s favorite reminder: the Post-It Note. I doubt you could find an office anywhere without a cube of the infamous sticky notes, as they are a fixture essentially anywhere and everywhere.

Beyond the Post-It, 3M has a lot to offer consumers and investors, operating in six business segments: industrial and transportation; health care; safety, security and protection services; consumer and office; display and graphics, and electro and communications.

Though they are based in Minneapolis, MN, the company spans the globe. In fact, their exposure to faster growth markets abroad is phenomenal. Two-thirds of their revenue is currently derived internationally.

Looking at the stats:

Forward P/E:                      14.35

Return on Equity:             25.70%

Revenue:                            30.05 billion

Total Cash:                          4.38 billion

Total Debt:                          5.94 billion

Operating Cash Flow:     5.47 billion

For today’s specific pick, please check the Current DITM Picks page.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Procter & Gamble Co. (PG), and Qualcomm Inc. (QCOM) are all relatively new positions, each with 10 contracts. No changes are necessary.

Bank of America (BAC) has been on the scorecard since April 15^th and we currently hold 20 contracts with an average price of $5.40. The options are currently selling for $5.50 which is about even money for our trouble so far. Bank of America has peaked and I am expecting share prices to scale back some before it goes back up again. The rebuy level has been adjusted slightly, as the last low was higher than the one prior to that.

General Electric (GE) has been with us since March 30^th and here too we have 20 contracts with an average price of $5.40. Unlike BAC, the GE options are currently trading for $4.77, putting us in the red with this position. The rebuy level here as well will be adjusted to the most recent low, putting that target a bit higher than previously posted.

Transocean Ltd. (RIG) – was added on March 11^th and we currently hold 50 contracts with this position. With several rebuys last month, we are now very close to our target GTC selling price target. I was hoping that this recommendation would close out for a win today, but It looks like it may need to move up a bit more to see that happen. It’s a 2015 position, so we don’t need to rush it, but if you’ve got a lot of cash in this position, feel free to pull the plug if you can cash in with a nice profit.

Caterpillar Inc. (CAT) – was added on March 4^th and there are now 80 contracts on the scorecard with this position as CAT posted several rebuys last month as well. CAT is currently down from our average by a couple points. When the next rebuy hits, do what you can to lower your average by either doubling up or buying as many as you can.

ArcelorMittal (MT) has been on the scorecard for almost five months. I’ve got the trade listed on the scorecard with an average price of $5.10. The options are currently trading for $3.05 and the stock hit all new lows last month, but I can now adjust the rebuy price to account for recent gains. We do need to rebuy here while it’s low to get that average price down enough to do it some good before the stock starts trending back up. As with CAT, with the next rebuy, we should double up or buy as many as possible.

Xerox Corporation (XRX) –This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We need XRX to go up about 3points to see a win at this price. I continue to be hopeful for this one to break even or post a win – without spending more on this recommendation.

Now, because I took a day off a while back – I’ve got a recommendation for you today as well.

For today’s recommendation I am going back to pharmaceutical giant Pfizer Inc. (PFE) once again. Pfizer has been a consistent winner for the strategy, and it doesn’t matter how many times a company wins for us or when the last win crossed over, if we can score again, that is the plan… as many times as possible.

Pfizer is a New York based company with a market cap of $208.20 billion and a current average dividend yield of approximately 4.4%. The stock chart is telling me the timing is right for a buy. There is short term support at $28 and additional support at $26 and again at $24 for the rebuy strategy. The stock closed yesterday at $29.07. The 52-week high mark is $31.15 and the stock recently pulled back from posting that new 52-week high.

Pfizer is a solid company and the January 2015 options are very affordable. Buying now means we are buying at a discount and it will be easy to get in on the day’s recommendation.

Here are the stats to make note of:

Revenue: $58.99 billion | Forward P/E: 12.17 | Return on Equity: 11.59% | Total Cash: $32.71 billion | Total Debt: $37.49 billion | Operational Cash Flow: $17.05 billion | Institutional Support: 72.60%

Please see the scorecard for trading details.

If the position fills today, I will immediately place a GTC limit order to sell the options at a point higher. This locks in a win of $1000 for the 10 contracts I am recommending today.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

This morning’s pick is expected to open low, while at the same time the options are going at a good price – so grab your shopping cart as I head to the grocery store to see how many labels I can find with a Proctor & Gamble Co. (PG) logo on them again.

Proctor & Gamble makes just about every household consumable supply you have. You can go tohttp://www.pg.com/en_US/brands/all_brands.shtml and check out how often a P&G product falls into your household shopping cart. They have 12 brands that have sales over a billion dollars each and 19 brands that top $500 million in sales each. That, my friends, is a lot of soap. Here is the list of brands that top a billion in sales: Always, Ariel, Bounty, Braun, Charmin, Crest, Dawn, Downy, Duracell, Fusion, Gain, Gillette, Head & Shoulders, Iams, Mach 3, Olay, Oral B, Pampers, Pantene, Tide, and Wella. How many to you buy?

Revenues are posted at $83.72 billion, $14.45 billion in operating cash flow and $5.88 billion in cash or equivalents on the balance sheet. Debt is more than twice operational cash flow, it comes in $32.22 billion, but the company is such a staple of consumable supplies and they’ve been around since 1837 and I don’t plan to stop showering or shaving or moisturizing anytime soon.

The company has a return-on-equity (ROE) of 17.53% and forward price-to-earnings (P/E) ratio of 17.81 is a bit higher than I like. But, once again – it’s the stock chart I like today and the drop in price last week that is showing me opportunity. It is telling me to buy along with doable option price. I do like it when that happens.

Please see the scorecard page for trading details and don’t forget to immediately place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as we hit the target.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Please pop us an email here and let me know how you did with INTC. Let me know if you sold, how much you took to the bank, or if you are still in the position because you weren’t able to average down as often as recommended. I want to know how you did – when real money was being traded.

Making Nails a valuable service is very important to me and the best way for me to improve is by your feedback on how it works for you. Next week, I’ll share your responses.

Now to the day’s pick.

Also on Wednesday, I set my sights on Qualcomm Incorporated (QCOM) to add to the Nails open portfolio, but didn’t get the fill. Yesterday QCOM tanked after earnings and today the opportunity for the pick is even more attractive and cheaper to boot. Please understand that QCOM beat earnings expectations, raised guidance for the remainder of the year – but, still tanked. When the market over reacts to news, that spells out DITM opportunity for us here at Nails.

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 26,000.

With QCOM components taking up residence in the new Galaxy S IV – hyped to take the smart phone top spot from the iPhone. For us here, it really won’t matter if they achieve that goal or not. No matter how you look at it, they are going to sell a lot of phones. One article stated that Samsung has planned to sell 100 million phones over the next few months.

QCOM is a monster company with revenue of $20.46 billion, debt at only $31 million as compared to total cash of $13.28 billion and operating cash flow of $6.19 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 13.31 with a PEG Ratio of 0.97 and a return on equity of 18.12%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Now to the day’s pick.

Once again, I’ve set my sights on Qualcomm Incorporated (QCOM) to add to the Nails open portfolio.

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 26,000.

With QCOM components taking up residence in the new Galaxy S IV – hyped to take the smart phone top spot from the iPhone. For us here, it really won’t matter if they achieve that goal or not. No matter how you look at it, they are going to sell a lot of phones. One article stated that Samsung has planned to sell 100 million phones over the next few months.

QCOM is a monster company with revenue of $20.46 billion, debt at only $31 million as compared to total cash of $13.28 billion and operating cash flow of $6.19 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 13.31 with a PEG Ratio of 0.97 and a return on equity of 18.12%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

TI’s vision for new products is to help create self-driving cars and controls for home appliances linked to your cells phones. In the future – TI and I both seem to think that our world will soon be condensed into what you can program your phone to do or how you can gain access to their new DLP technology for projectors using a wide array of platforms, including again – the smart phones, tablets and laptops.

From previous columns about the company, you will know that Texas Instruments is a world leader in digital signal processing and analog technologies. With close to 34,000 employees worldwide, they are a monster company with a rock solid balance sheet. Revenue comes in at $12.82 billion and the company’s forward P/E ratio is looking a bit on the high side at 16.77 and return on equity posts at 16.05%.

TXN manufactures a whole host of products, from audio, video and imaging — to medical, industrial and military products and applications. This company is all about cash management and that is a very healthy way to run a business. Debt doesn’t have to be bad, but if you can keep your cash in the bank and generate continued organic company growth – you are certainly doing something right. Although last year, TXN added a bit of long term financing to its balance sheet– adding debt by financing the purchase of National Semiconductor. And it is through this new purchase of National Semiconductor that supplies Apple components which should do its part to rally the share price going forward.

Looking to the chart, we see Texas Instruments has been steadily climbing since mid-October and currently sits near $34 and change. I am seeing support at several levels and room again at the top.  We don’t need much of a spread for a good DITM opportunity, so today offers us a good opportunity for a buy.

Please check the scorecard page for the specifics of the trade and when the order fills, remember it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Wednesday we got on board with Costco Wholesale (COST) and saw a lot of rebuys. Normally, I would wait for June or July to lower our GTC selling prices on all remaining 2014 positions, but I am starting to think sooner might be better. Our position in Intel Corporation (INTC) is seeing some green and many of you may consider cashing out now, as I predict there won’t be much more upward momentum before it pulls back again. It might be time to take your money and run. And, I’m very close to adjusting the GTC down by 50 cents on all 2014 positions.

Today’s recommendation is DuPont de Nemours & Company (DD).

From previous columns, you will know that this household name has been around for over 200 years and operates as a science and technology company in various areas, including biotech, electronics, materials science, safety and security, and synthetic fibers. A couple of DuPont brands everyone is familiar with are Corian, Kevlar and Teflon. For many years DuPont was one of the most sought after stocks to own for its consistent dividend payouts.

DuPont’s stock chart is back after last year’s “cliff diving” experiment that left the stock looking like it missed the water after a really disappointing earnings report. Yesterday the stock closed at $48.59, and the stock chart is looking like there is room for a comfortable bounce to score us another DD win.

DD’s forward price to earnings ratio is 11.33 today and anything below 15 is considered to be undervalued by Wall Street, so DuPont is in the sweet spot with that stat. Revenue of $35.04 billion kicks back a return on equity of 25.91 percent of which both these figures are down from the last time I picked the company. They have about $11.74 billion in debt and total cash of $4.41 billion. It would be better if those numbers were reversed. However – DuPont has been around for so long, they have a track record for managing debt successfully. Lastly, the company has $4.85 billion in operating cash flow.

Next week DD will post earnings. Normally, I’d recommend staying away from a company the week before earnings, and if you are hesitant to pull the trigger because of that event, no one will blame you – go ahead and sit it out. If we do get on board with the recommendation, I plan to set the rebuy low enough to make the necessary adjustment to the position, should earnings be disappointing.

Please see the stat book page for the specific trading details for today’s recommendation.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.
————————–
At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and don’t mind volume. It’s my favorite store. I am there practically every Saturday morning at the 9:30 am open to beat the hordes that show up an hour later. From open to close, the place is always busy, always hopping and always clean.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop, with the exception of the Kirkland brand of products which are Costco’s own brand of merchandise.

I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 618 warehouses in the United States and nine other countries and employs 96,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $103.13 billion annually, $5.65 billion in the bank and $4.87 billion in debt, with operating cash flow of $3.34 billion. It has a return-on-equity (ROE) of 17.33% and forward price-to-earnings (P/E) ratio of 20.84, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

Earlier this month, the company posted a new 52-week high mark of $107.75 and the stock closed yesterday, trading at $105.55 and all technical indicators are predicting more upward momentum. Please note that COST options usually carry an extra buck or two in premium over the standard Nails formula because the stock price is up there and it can support it. It’s a percentage thing and rather consistent.

Please check the stat book page for trading details just below the open positions chart.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Now to today’s pick:

If the market continues to pull back, then the morning task of finding a stock that is not testing resistance won’t be quite as challenging as it has been. Once again, I looked at stock chart after stock chart and most of the stocks in the Nails basket of choices are still up and not right for a buy. Upward momentum is good for the open positions on the scorecard, but not so good for finding a stock that still has room at the top for a nice win. A continued pull back will provide opportunity for buying, but – it hurts the current positions.

However, unlike Friday, I have found several stocks that we can add this week and today I am going back to the bank with Bank of America (BAC).

BofA (as we call it, sometimes fondly and sometimes not, depending on how much you account was just charged) is a bank holding and financial holding company, which through its subsidiaries, provides banking and non-banking financial services and products throughout the United States and in selected international market, and is one of the world’s largest financial institutions. They serve individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.

In an article I read recently, it stated that Bank of America ranks number one in customer dissatisfaction in the world. I guess I’m not the only one who’s not a fan of all the fees and the instant pouncing that now happens when you walk into the bank. I know they are having people greet you to improve customer service, but it feels like they are trying too hard. They should help the customer where it counts – their accounts. However, that “take everything you can, as often as you can” from their customers pays off if you want to share in those profits. It’s like investing with Altria (MO), I don’t always agree how they are making their money, but if I can profit from it, I will.

The company might be fee driven, but for those fees they provide unmatched convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,750 ATMs and award-winning online banking with 29 million active users.

Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to more than 4 million small business owners through a suite of online products and services. The company serves clients in more than 150 countries.

Bank of America is once again a good buy. The stock closed yesterday at $12.17 which is cheaper than many of the options that are recommended. Today’s recommendation looks to be another quick score, like we have done many times with this choice.

Please see the stat book page for the specific trading details for today’s recommendation.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.
————————–
At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

I didn’t find ONE stock I’d spend my own money on, so why would I tell anyone else to consider doing differently? Besides – we do tell you to research the pick before you spend the cash. I’d feel like I was sending you on a fool’s errand to research something that wouldn’t fill. I’d rather not waste your time.

However, in my research this morning, I kept going back to one of our Nails favorites: Microsoft Corporation (MSFT). Microsoft has been a consistent winner in the Nails DITM calls strategy, and much of what I do all day is monitor the same winning stocks to see where opportunity is knocking. We just got out of MSFT on a nice bounce earlier this week and yesterday – bam, down it went like a rock. Usually that means opportunity is knocking once again, but the stock chart is not really supporting a buy beyond the spike up and drop down. And the bad news, well I have a feeling that will have more traction in the short term than the bounce we saw.

However, I kept looking at it again and again. It’s like my gut is saying it’s a good choice, but the numbers are saying to wait. So instead of going with an emotional choice – which MSFT would be, I’m going to tell you NOT to do it. If the Jan 2015 $25.00’s jump up again from today – then you will know my gut was right. I just don’t want you to spend any money on a gut decision.

If you want to put your money anywhere, a rebuy in Caterpillar, Inc (CAT) is a technically better choice. I am going to reset the rebuy level to $84.20. If buying before that level will significantly improve your average price – it’s a better choice than going with my gut.

Also, it looks as though many of you had better averages than the scorecard with Intel Corporation (INTC) and were able to exit on Wednesday with even money or a bit of cash. In my own trade account I very nearly hit the sell button early to exit with a modest profit. But, I saw plenty of upside potential in the technical analysis, so I stayed my hand.

With yesterday’s news sending the top tech stocks to their respective rooms, I may have to lower our GTC selling price to help us exit this position with a modest win over the grand slam I have been anticipating.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Now, for this morning’s recommendation – I am going back to a company that has won for Nails several times before: Forest Laboratories Inc. (FRX).

FRX was doing quite well until last July. With Lexapro – FRX’s top selling antidepressant going generic, the stock saw a large pull back, on fears that all cash would evaporate completely. However, by mid December the stock started to gain momentum and come back, only to tank, then peak, than tank yet again. The company has several new drugs in the pipeline and a couple of these are doing very well in trial, but investors don’t quite seem to know what to do with it. We are seeing quite a bit of sharp ups and downs.

It is that volatility that will make us money once again with FRX.

Forest Labs is a pharmaceutical company that specializes in developing, manufacturing, and selling many kinds of drugs. Its drugs help treat depression, anxiety, Alzheimer’s, and hypertension, to name a few. FRX has ranked sixth among the top pharmaceutical and biotech companies, according to Pharmaceutical Executive’s annual strategic industry audit.

It is a very solid company. I have confidence in the stock chart that they will again rebound with new drugs in the pipeline, along with the fact that they have zero debt – all are great signs in my book for a good play once again. They have $1.72 billion in cash and NO debt. Overall, the stats on this company tell me again and again that this continues to be a solid pick.

Trading the same companies over and over again as the technical indicators point to the correct buy and sell numbers is the best way to make money trading Lenny’s DITM picks. It removes all the emotional factors that can lead an investor to trouble. One of the rules here at Nails is to never get attached to a trade or a company. Only be attached to the numbers.

Please check the Stat Book page for the specifics of today’s recommendation. Remember to post a GTC limit order to sell your call at the target sale price of $1.00 higher than the purchase price as soon as the order is filled in order to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today I am going up to the plate to take another swing at Lowe’s Companies, Inc. (LOW) this morning. It has been a while since LOW has been featured here and the stock chart is looking like there is opportunity for a quick win.

Lowe’s has grown from a small hardware store in North Carolina to the second largest home improvement retailer worldwide and the 7^th largest retailer in the U.S. The company was founded in 1952 and is based in Mooresville, North Carolina and has been helping customers improve home improvement for more than 60 years and has been paying out dividends since the company went public in 1961.

Revenue is posted at $50.52 billion; forward P/E is 15.31 and the PEG ratio is 1.06. Total debt is $9.08 billion with operating cash flow at $3.76 billion, numbers that would make me happier if reversed, but debt is not a bad thing if managed well and operating cash flow is healthy. I wish I could pay off all long term and short term personal liabilities with just a little over two years of disposable income.

The market is down this morning, but LOW is up, so please do not overpay for the days recommendation. It’s better to let the price come to you.

Please check the stat book page for trading details and if your order is filled, remember to set a good-till-cancel (GTC) sell order at $1.00 above the purchase price for a lock quick win.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

I don’t mind answering all the email – but, it’s much easier to be able to give everyone what they want.

Today’s pick is Texas Instruments Inc. (TXN), creators of the first computer using integrated circuits and the first handheld calculator. TXN has an excellent track record here at Nails and one of my personal favorites.

TI’s vision for new products is to help create self-driving cars and controls for home appliances linked to your cells phones. In the future – TI and I both seem to think that our world will soon be condensed into what you can program your phone to do or how you can gain access to their new DLP technology for projectors using a wide array of platforms, including again – the smart phones, tablets and laptops.

From previous columns about the company, you will know that Texas Instruments is a world leader in digital signal processing and analog technologies. With close to 35,000 employees worldwide, they are a monster company with a rock solid balance sheet. Revenue comes in at $12.82 billion and the company’s forward P/E ratio is looking a bit on the high side at 16.99, and return on equity posts at 16.05%.

TXN manufactures a whole host of products, from audio, video and imaging — to medical, industrial and military products and applications. This company is all about cash management and that is a very healthy way to run a business. Debt doesn’t have to be bad, but if you can keep your cash in the bank and generate continued organic company growth – you are certainly doing something right. Although last year, TXN added a bit of long term financing to its balance sheet– adding debt by financing the purchase of National Semiconductor. And it is through this new purchase of National Semiconductor that supplies Apple components which should do its part to rally the share price going forward.

Looking to the chart, we see Texas Instruments has been steadily climbing since mid-October and currently sits near $34 and change. I am seeing support at several levels and room at the top.  We don’t need much of a spread for a good DITM opportunity, so today offers us a good opportunity for a buy.

The market is supposed to open down this morning, so I’ve calculated the anticipated drop into the recommendation and am posting a lower buy recommendation.

Please check the scorecard page for the specifics of the trade and when the order fills, remember it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Also, please note – since it’s now April – I’ll be going with 2015 Leaps and no longer recommending any January 2014 positions. It’s time to move all future trades to 2015 and work to close all open 2014 positions.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Our last successful swing at DOW was a nice $2000 win in 33 days that we just cashed out on March 13^th and have won many times with this stock.

Once again the stock chart is showing plenty of upside potential. At Nails we seek to take advantage when solid companies see a sudden drop in share price. Remember we do want to buy low and sell high.

DOW manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. For a company that has been around for over a century, it wouldn’t be difficult to imagine a lot of outdated processes. However, Dow was recognized with four 2010 American Chemistry Council (ACC) Responsible Care Energy Efficiency Awards for programs that improved energy efficiency at three of its U.S. facilities and in previous articles, I noted that the company had announced its plan to invest in projects to reduce greenhouse gas emissions and improve energy efficiency, which when implemented would cut nearly eight-trillion BTU’s of energy use and eliminate over 400 thousand metric tons of carbon emissions.

Here are the numbers to consider: Revenue:  $56.79 billion, Forward P/E Ratio: 10.57, PEG Ratio: 2.05, Total Cash: $4.17 billion, Operating Cash Flow: 4.08 billion, and Debt: $21.11 billion. Both the PEG Ratio and debt are higher than ideal, however the company performs for Nails over and over and the stock chart and technical charts tell me it’s a good time to buy, plus they continue to offer a consistent dividend payout to stock holders.

For today’s specific pick, please check the Current DITM Picks page.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Walt Disney Company (DIS), Home Depot (HD), Cisco Systems Inc. (CSCO), General Electric Co. (GE), and Altria Group Inc. (MO) are all relatively new positions, each with 10 contracts. No changes are necessary.

Transocean Ltd. (RIG) – was added on March 11^th and we currently hold 20 contracts with this position. It looks like the rebuy level may need to move up in the next few days. I will keep an eye on the stock movement and momentum and adjust accordingly if the previous support level is reached without dropping further down.

Caterpillar Inc. (CAT) – was added on March 4^th and there are now 30 contracts on the scorecard with this position. CAT is currently down from our average by a couple points. I am expecting to see at least one more rebuy with this position before it starts to gain ground for us.

Microsoft Corporation (MSFT) – was purchased on February 20^th and we still hold only 10 contracts at $8.30. The contracts are now selling for $8.70 with our average of $8.30, so if the market continues to inch upward – we will see this move to the win column.

ArcelorMittal (MT) has been on the scorecard for about ten weeks. I’ve got the trade listed on the scorecard with an average price of $5.50. The options are currently trading for $3.55 and the stock has hit a new 52-week low, 2-year low and 5-year low and beyond. I am going to put a hold on the rebuy price so we don’t hit rebuy after rebuy with no recent support levels to guide me. I am going to wait for stock price to demonstrate where the bottom is first, before resetting the rebuy again.

Intel (INTC) – We’ve had INTC for about 11 months now and hold 850 contracts. Our average price on Intel is now $2.70 and the current option price is $2.55. With our position as it stands – INTC needs to approach $24 for us to see a win unless we lower our GTC selling price. I have faith that we don’t need to do that so we will have a really sweet win when we cross the finish line. The rebuy level of $20.20 is still the correct level for any additional rebuy.

Xerox Corporation (XRX) –This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We need XRX to go up about 3points to see a win at this price. I am hopeful for this one to break even or post a win – without spending more on this recommendation.

Lastly, over the weekend, I read Chris Frankie’s book – Nailed!: The Improbable Rise and Spectacular Fall of Lenny Dykstra. For the most part, Chris did a good job in sharing his perspective of what it was like working for Lenny for the nine months he was employed for him. However, like any unauthorized biography, it shares what other people think and believe and does not really share the perspective of the person he is writing about. I don’t think Lenny will be able to find fault in the excerpts and stories that Frankie relayed while he was working with him. At the time he had Lenny’s ear and his input is candid and honest. It is only when Chris continues the story after he quit that Lenny may find some issues with what is told in the book.

While Chris worked for Lenny – he was able to see and present both sides – whereas, after he left – it becomes a bit one sided. The story moves from insider status to an outsider’s point of view where there is no longer even a glimmer of Lenny’s perspective in the mix. As such Lenny side of the story is absent from that point forward.

For example – when Chris was employed for Lenny and the press took off with a bad story or two about Lenny – Frankie was able to defend Lenny’s perspective somewhat because he was there and understood both sides of the story. He saw what the press overlooked and failed to report and he writes about the missing bits of the story in the book.

However, similar to the reviews about the book itself – they fail to report anything nice Frankie had to say about Lenny and instead continue to focus on the most heinous things in the book they could find.  It’s like one guy read the book and wrote an article – reported the worst of the worst – and everyone from that point only read that guys review and have been repeating it over and over.

Chris falls into the same trap in the later chapters. He only reports what has been written about Lenny since and although he interviewed several people to get a bit better perspective than just regurgitating the news, it is still missing Lenny’s point of view. It reports what others have said and what they think and believe, but does not present Lenny’s side of the story.

There are always two sides and nothing is just black and white. No one is all bad. And, of course I’d be remiss if I didn’t say that I found out a few things about myself in the story that I hadn’t previously known in those later chapters. In other words – Chris wrote about what other people think of me and what they think I did – that really didn’t happen. That he believes them and that others believe them – doesn’t make them true. And he never asked me.

No one can stop others from thinking badly of them, not me, and not Lenny. However, I am thankful that he ended the book with a really nice quote attributed to Ron Darling saying, “Let’s hope when Lenny pays his debts to society that we judge him hopefully on his future good acts.”

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

We currently have 331 wins, as Forest Laboratories Inc. (FRX), Coca-Cola Company (KO), Costco Wholesale Corp. (COST), Dow Chemical Company (DOW),Bank of America Corp. (BAC), Pfizer Inc. (PFE) and Qualcomm Incorporated (QCOM)  have all crossed the finish line and rang the cash register bell for us since it was last updated.

Today’s pick is a consistent winner and one of those on the list of recent winners above: Dow Chemical Company (DOW). Our last successful swing at DOW was another nice $2000 win in 33 days, that we just cashed out on March 13^th.

Once again the stock chart is showing plenty of upside potential. At Nails we seek to take advantage when solid companies see a sudden drop in share price. Remember we do want to buy low and sell high.

DOW manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. For a company that has been around for over a century, it wouldn’t be difficult to imagine a lot of outdated processes. However, Dow was recognized with four 2010 American Chemistry Council (ACC) Responsible Care Energy Efficiency Awards for programs that improved energy efficiency at three of its U.S. facilities and in previous articles, I noted that the company had announced its plan to invest in projects to reduce greenhouse gas emissions and improve energy efficiency, which when implemented would cut nearly eight-trillion BTU’s of energy use and eliminate over 400 thousand metric tons of carbon emissions.

Here are the numbers to consider: Revenue:  $56.79 billion, Forward P/E Ratio: 10.94, PEG Ratio: 2.11, Total Cash: $4.17 billion, Operating Cash Flow: 4.08 billion, and Debt: $21.11 billion. Both the PEG Ratio and debt are higher than ideal, however the company performs for Nails over and over and the stock chart and technical charts tell me it’s a good time to buy, plus they continue to offer a consistent dividend payout to stock holders.

For today’s specific pick, please check the Current DITM Picks page.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Buy averaging down at support levels – we put our open portfolio in a better position to not just win, but win bigger. The strategy here at Nails is to increase our profit potential with every buy in. It’s a plan that only works with this type of methodology. You won’t see that kind of profit potential by using a margin account.

Today, I am going with a very well known brand that has provided happiness, joy and adventure for all ages since 1955. I am talking of course of Walt Disney Co. (DIS). There is probably no other company you can invest in that is guaranteed to instill some appreciation for what they do from people of all ages even if you feel the commercialism crowding you in more than the people when you visit one of the Disney resorts.

As a company, Disney is much more than the Mouse or a series of theme parks. They are a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Disney is showing continued upward momentum, but the week of volatility has given us the opportunity to catch a quick win on the bounce. Share price is right at support – a perfect time to buy. Plus there are several layers of support should the stock not bounce right away.

Company stats are as follows: Revenue comes in at $42.84 billion; Forward P/E is 14.60 and the PEG Ratio is 1.38; Return on Equity is 14.71%; total cash is $3.21 billion; operating cash flow is $7.38 billion and debt is a little less than twice that at $17.46 billion.

Please see the scorecard page for trading details and remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride! (Especially the “E” ticket rides).

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Founded in 1978, The Home Depot, Inc. is the world’s largest home improvement specialty retailer with current revenue at $74.75 billion operating cash flow of $6.98 billion. The Home Depot has 2,256 retail stores in the United States, Canada, Mexico and China and employs about 300,000 people. They are based in Atlanta, Georgia.

I’m sure that each of us has been to Home Depot many, many times.

The forward P/E is 17.05 and the PEG ratio is 1.35, both a bit higher than ideal to indicate perfect timing. Total debt is $10.80 billion with cash in the bank at $2.49 billion, numbers that would make me happier if reversed, but debt is not a bad thing if managed well and operating cash flow is healthy.

I looked at a lot of stock charts this morning and not many were showing even the tiniest hint of timing opportunities. This one is – barely. The stock has been climbing steadily all year and has just recently pulled back enough to show me enough room at the top for a stock that is trending higher over all ranges.

Please check the stat book page for trading details and if your order is filled, remember to set a good-till-cancel (GTC) sell order at $1.00 above the purchase price for a lock quick win.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Yesterday afternoon, I received a letter in the mail from Lenny confirming this.

I’m very grateful that Lenny’s case worker was persuaded to call me and save me the trip up.

The good news is that there really isn’t much time left on his federal sentence and he may have a few more privileges once he is settled in, such as phone and email access. By this time next week, we should be able to communicate more often and more timely. And, when the time finally arrives – I’ll only have to travel to LA to pick him up, a much more civilized distance to go.

So, we’ve had a couple of disappointing days – but, I did have time to research a recommendation for today’s column.

Today’s pick is Cisco Systems, Inc. (CSCO).

The Company provides a line of products for transporting data, voice, and video within buildings, across many platforms, and around the world. Its products are designed to transform how people connect, communicate and collaborate. Cisco Systems, Inc.’s products, which include primarily routers, switches, and products that the Company refers to as its technologies, are installed at enterprises, public institutions, telecommunications companies, commercial businesses and personal residences. They have been in business since 1984 and employ over 66,000 people.

CSCO’s current price is approaching $21.00 and the forward P/E ratio is 9.95, PEG ratio is 1.25, and return on equity is 17.78%. Revenues are $47.25 billion, of which they have $46.38 billion in cash, and $11.87 billion in operating cash flow. The debt is quite manageable at $16.29 billion as compared to operating cash flow and the company has enough cash in the bank to pay off debt nearly three times over, which is a very healthy cash position to be in. I sure wish I had enough liquid assets to pay off my house three times. And, institutional investors make up 72.90% of those that own the stock.

Almost all the stock charts of our favorite Nails picks are looking good for buying puts over calls, but – CSCO’s chart is looking good, beyond the metrics above for additional upside potential.

Please see the scorecard page for today’s trading details and remember to set a GTC sell order at $1.00 higher than the purchase price once an order fills to lock in a win when the target sales price is reached.

Always Remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Hopefully all goes well and I am there in time to watch him step out into the world as a free man once again. Although his release is scheduled to be in the early morning, he has a series of obligations that will send us all over Southern California to make sure he checks in with each parole office within 24 hours. One office is in Ventura and another in Pomona (about 100 miles apart). Apart from the grueling day of driving, I’m very excited and happy to be picking him up, even if it means leaving the house tomorrow morning at 2:00 am to get there on time and putting about 500 miles on my odometer in a single day.

Due to the time restraints of these appointments and conditions of his parole (that are currently unknown), I may not be home until sometime on Friday afternoon. Should the time get away from me – please forgive me if I don’t post a recommendation on Friday morning. I’ll have my computer with me of course – but, I’m not expecting much time available for stock research – as once I’m done with the driving all over – I have a new phone for him I’ll need to activate and set up, a new computer to load files onto and a new residence to settle him into. Of course, I could set these things up for him before I pick him up – but, I want him to be able to open all the boxes for the first time and be the first one to touch them. He likes that sort of thing.

This morning I am going back to a consistent winner, General Electric (GE) and the timing is looking favorable to putting GE in a position to win for us yet again.

Share price is trending up in both short term and long term averages. There are several layers of support making this multi-national conglomerate a good deal. The option prices are excellent as well – cheaper than the Nails formula – so good news all around.

If you venture out to the GE website and look up their products and services listing – it is quite the list – as GE now covers just about everything from household appliances, aviation equipment and asset management, power generation and distribution, water processing and so on – even entertainment and banking. You could almost say you have a diversified portfolio with just this one purchase.

Here are the numbers to note:  Revenue:  146.78 billion / Forward P/E:  12.68 / Return on Equity:  12.09% / Cash:  77.36 billion / Debt:  414.06 billion / Operating Cash Flow: 31.33 billion.

Debt is outrageously high but the company has a track record of managing debt well and I have found that older companies have more of a tendency to keep a lot of debt. GE has been around since 1892, so that qualifies as not just old but quite stodgy too. The company was originally founded by Thomas Edison and JP Morgan, no lightweights in American History.

Please see the stat book page for trading details and once filled set a GTC (good ’til cancelled) order at $1.00 higher than your average cost to lock in a $1000 gain.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in the Nails Investments newsletter by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission, or with any state securities regulatory authority. The Nails Investments newsletter contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon the product for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today I am going back to the well with Valero Energy Corporation (VLO). Valero, the largest independent oil refiner in the country is a relatively small company as compared to the big guns in the oil industry and with gas prices so high at the pump – especially here in Southern California – it’s especially nice when I can score with an oil company – and get a little back. It takes the sting out of it.

VLO operates through three segments: Refining, Retail, and Ethanol. Valero service stations in Southern California are starting to be more prevalent and they have upped the image and are starting to look less “no frills” to more mainstream gas station.

As a previous owner of a gas station and convenience store, Lenny has the experience to know that margins for the retail owner of a gas station are really small, so you have to have a first class convenience store to get and keep customers – or really competitive gas prices. Valero is doing both; their convenience stores are so much cleaner and well stocked over your average ARCO station, but the gas prices are comparable. That is a good combination for success.

In looking at the stock chart, it is a good time to make a purchase of VLO options. The stock has really shot up this year and has doubled its share price in less than a year and currently sits just below the 52-week high, but with enough room at the top to score us a win without needing to post a new high.

Revenue comes in at $138.29 billion; Forward P/E is 7.63 and the PEG Ratio is 0.71; Return on Equity is 12.04%; total cash is $1.72 billion; operating cash flow is $5.27 billion and debt is a bit high at $7.05 billion, but not too bad – and, with good news on the horizon we won’t need them to pay off the debt before we cash in.

Please check the stat book scorecard for today’s trading details.

Remember: Life is a Journey; enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Lenny is scheduled for release this next week. His state sentence will conclude on Thursday, and it is starting to look like he is being paroled early on the federal side as well, (not 100% sure on that just yet). If all goes well, next Thursday I’ll be picking him up and taking him in to two parole offices to check in.

From there, as long as he keeps himself out of trouble going forward, there will be no more court dates to prepare for, no more lawyer appointments to stress over, and no waiting hours to talk through a glass partition in germ central.

For Lenny though, he has a lot of work ahead of him to come back from all this. I have faith that he can raise from the ashes; I’ve never met anyone more willful or more determined than our Lenny. It’s what got him into trouble in the first place and it will be what carries him forward.

If you’d like to wish Lenny the best upon his release – please send a note through the website here. All comments posted pop into both his email account and mine. He will see them all.

Now to the day’s pick.

Once again, I’ve set my sights on Qualcomm Incorporated (QCOM) to add to the Nails open portfolio.

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 26,000.

With QCOM components taking up residence in the new Galaxy S IV – hyped to take the smart phone top spot from the iPhone. For us here, it really won’t matter if they achieve that goal or not. No matter how you look at it, they are going to sell a lot of phones. One article stated that Samsung has planned to sell 100 million phones over the next few months.

QCOM is a monster company with revenue of $20.46 billion, debt at only $31 million as compared to total cash of $13.28 billion and operating cash flow of $6.19 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 13.61 with a PEG Ratio of 1.01 and a return on equity of 18.12%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today’s recommendation is a favorite of Lenny’s and one we have done quite well with here at Nails. As a non-smoker and one of those people who really dislikes everything having to do with cigarettes, today’s choice would never be an emotional favorite. However, there are still plenty of people in the world who seem to enjoy smelling bad and continue to waste their money buying the nasty little cancer sticks – so, why not make a buck off their poor judgment.

Companies like Altria Group, Inc. (MO) – which is today’s choice – can be profitable for our bottom line,   even if we may not like what they sell. And, when it comes to making money, we should not let our emotions get in the way, at least not when it’s a stock choice. It’s no different from not particularly liking the taste of beer and not ever buying it, but not having any qualms against buying Budweiser.

Although it is easier to pull the trigger when you love the products of the companies you buy – it’s not a requirement for making a profit.

As you know, Mo primarily manufactures and sells cigarettes, smokeless products, with brands such as Marlboro, Copenhagen, Skoal, and a few others. The company also maintains a portfolio of leveraged and direct finance leases in rail and surface transport, aircraft, electric power, real estate, and manufacturing. The company was founded in 1919 and is headquartered in Richmond, Virginia and employs about 9,000 people.

The stats for the company to note are: Forward P/EZ: 13.24; Return on Equity: 120.91%; Quarterly Earnings Growth: 31.90%; Revenue: $17.50 billion; Total Cash: $2.90 billion; Total Debt: $13.88 billion and Operating Cash Flow: $3.90 billion.

The stock chart shows upside potential, downward support at multiple levels, so timing is right for an easy DITM win.

Please check the scorecard page for the specifics of the trade and when the order fills, remember it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

However, when the market has more stocks posting high numbers, it becomes more difficult to find stocks that have the option prices we want or the metrics that say buy.

Finding stocks with visible upside potential (haven’t topped out yet) becomes more of a challenge for the new picks each week – but, those same high numbers really helps convert those open positions into winners.

Readers constantly question me on the prices I am willing to pay for a new position. The short answer is that Lenny developed the formula we use here at Nails and I stick with it because it works. It is: Stock Price + $1.00 – Strike Price = Option Price. There are times when we can add more in premium cost, but I try to stick within the formula as much as possible.

If I let my emotional side kick in and buy because I like a stock, I might make my decisions on the wrong criteria. When we do that, we set ourselves up to becoming emotional traders. That isn’t something we can do and remain successful. Human nature kicks in and we will start selling low and buying high. We want to make money so we try to buy low and sell high – or high enough to take our profits and keep the hits rounding the bases for a score.

Today I am going to see if I can get my feet wet with Transocean Ltd. (RIG).

The company operates contract drilling services for oil and gas worldwide, with an emphasis in deep water and harsh environment drilling. They own and operate about 82 mobile offshore drilling units, a number significantly less than before the BP disaster.

RIG shares dropped with news of the gulf oil spill and shares fell more than 50% from trading in the $90’s down to the $40’s. From there the stock hasn’t fully recovered. It looked like it was going to march right back up, as news of its liability was minimal. However, that wasn’t the case and shares have been up and down. They are currently down from a recent pull back, closing yesterday at $53.22.

This makes RIG still a good value with its Forward price-to-earnings ratio of 9.11.

Transocean also has reinstituted it’s very nice dividend payout and is demonstrating to investors that it has the financial backbone to be the front runner in this arena.

Please check the stat book page for today’s trading details and if the order is filled, a good-till-cancel (GTC) sell order needs to be set $1.00 above the purchase price for a quick win.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

So, let me get right to it – today’s recommendation: Qualcomm Incorporated (QCOM).

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 21,000 full timers.

QCOM is a monster company with revenue of $20.46 billion, debt at only $31 million as compared to total cash of $13.28 billion and operating cash flow of $6.19 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 13.79 with a PEG Ratio of 1.01 and a return on equity of 18.12%. About 80.40% of the stock is held by institutional traders.

All in all, the stats tell me this continues to make a nice choice that I keep going back to because of their solid cash position. Big companies don’t usually have that much cash in the bank. Cash reserves will carry a company through market corrections and overall decline in share price. It can also fund acquisitions, R&D and other ventures that will lead to more revenue.

As many times as this stock looks good to buy – it will be a top recommendation as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

With the market pushing higher and testing resistance, we will see short term options getting more expensive and longer term options getting cheaper – relative to the stock price. This will help us get on base with more and more 2015 Leaps – as during March and April, I like to transition from buying 2014 positions and move completely into 2015 Leaps.

With that in mind, today’s pick is Cisco Systems, Inc. (CSCO).

The Company provides a line of products for transporting data, voice, and video within buildings, across many platforms, and around the world. Its products are designed to transform how people connect, communicate and collaborate. Cisco Systems, Inc.’s products, which include primarily routers, switches, and products that the Company refers to as its technologies, are installed at enterprises, public institutions, telecommunications companies, commercial businesses and personal residences. They have been in business since 1984 and employ over 70,000 people.

CSCO’s current price is $16.41 and the forward P/E ratio is 10.06, PEG ratio is 1.24, and return on equity is 17.78%. Revenues of this monster company are $47.25 billion, of which they have $46.38 billion in cash, and $11.87 billion in operating cash flow. The debt is quite manageable at $16.29 billion as compared to operating cash flow and the company has enough cash in the bank to pay off debt nearly than three times over, which is a very healthy cash position to be in. I sure wish I had enough liquid assets to pay off my house three times. And, institutional investors make up 72.90% of those that own the stock.

Almost all the stock charts of our favorite Nails picks are looking good for buying puts over calls, but – CSCO’s chart is looking good, beyond the metrics above for additional upside potential.

Please see the scorecard page for today’s trading details and remember to set a GTC sell order at $1.00 higher than the purchase price once an order fills to lock in a win when the target sales price is reached.

Always Remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Lenny developed the Nails strategy in 2003-04 so we are approaching almost ten years of consistent performance using his exclusive method for picking one winner after another, by picking solid stocks again and again – as the opportunity to make money cycles around over and over.

Today, I will go for Caterpillar (CAT). We have stepped up to the plate on this name several times and today the stock chart is showing me lots potential upside for another solid Nails win.

Much has changed at the construction- and earth-moving equipment vendor over the last year or two. The 52-week high tops out at $114.25 and the low $78.25 which is a pretty large spread, with the stock trading midway at $91.36 at Friday’s close. The stock chart and the slow stochastic show me there is a good timing opportunity and plenty of upward potential.

There is resistance around $97.00 so we can lock in a win before resistance is tested, that is – if we can get in a position to score by getting on base.

Here are the stats to make note of: Forward P/E Ratio – 9.60 (nice) / PEG Ratio – 0.82 (this is excellent) / Return on Equity 36.94% (fabulous) / Quarterly Growth – -54.90% (improvement would be nice) / Revenue $65.88 billion / Debt $40.15 billion (it is a bit high) / Operating Cash Flow – $5.24 billion.

After the order is filled, set a good-till-cancel (GTC) order $1.00 above the average purchase price to cash out for a quick win.

Always remember: Life is a journey, enjoy the ride!

(At the time of publication, Dykstra had no positions in the stocks mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in the Nails Investments newsletter by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission, or with any state securities regulatory authority. The Nails Investments newsletter contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon the product for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Microsoft Corporation (MSFT) – was purchased on February 20^th and we hold 10 contracts at $8.30. The contracts are now selling for $8.05 so we’ll need to see the market come back to us to get back into the green on this one. Tuesday’s market tanking pulled a lot of value out of the open portfolio, while at the same time – illustrating where support is now. I’ve adjusted MSFT accordingly.

Pfizer Inc. (PFE) – has been listed on the open portfolio for about two weeks. We hold 10 contracts at $7.50 and the options are currently going for $7.55. Here too, support has risen and the rebuy has been adjusted for this.

Dow Chemical Company (DOW) – was added to the portfolio about three weeks ago. We’ve had one rebuy on this position and now hold 20 contracts with an average price of $5.80. These options are selling for $5.05, so we are down on this position. Support for DOW is more than what was posted as the rebuy price and it too has been adjusted for this.

Bank of America Corporation (BAC) has been on the scorecard for about five weeks. We currently show 10 contracts with an average price of $6.40 per share. The options are currently trading for $6.45 so we are about even money with this position. The stock needs to push up a point for us to see a win. If the market continues to inch up – we will see this position close out quickly. We came close to a win on February 20^th but, the peak was just 20 cents shy of a win. The stock chart is saying buy again for BAC, but adding to the portfolio now – would only increase our average, not lower it. Next time the stock peaks, even if we are short on the GTC selling price – you may see a green light to cash out, especially since this is a $5.00 option and a large percentage gain in share price doesn’t equate to a large dollar increase in share price.

ArcelorMittal (MT) has been on the scorecard for about six weeks. I’ve got the trade listed on the scorecard at $7.65. With MT – our average price is down quite a bit and the stock price seems to be bottoming out. It would be a good time to double up on MT to lower our average price so we can get a nice win on the bounce. A double-down play here will significantly improve our position and give us a better chance to win.

Coca-Cola Company (KO) – actually scored a win on February 7^th. The trading range hit the GTC selling price – but I was skeptical that anyone holding it would have been able to sell at that price as it was the ask price and should have been the highest price you could buy it for, not sell it for. However, I’ve gotten a few emails telling me that their GTC at $6.60 was filled to close out the position for a win. It is still listed in the open portfolio with 80 contracts that are trading about $0.20 below our listed GTC selling recommendation. For anyone still holding KO – it is down slightly this morning, but the chart is looking like it is peaking again. My recommendation is to sell now at the lower price, as it is still a very healthy win.

Intel (INTC) – We’ve had INTC for about ten months now and hold 850 contracts. Our average price on Intel is now $2.70 and the current option price is $2.04. With our position as it stands – INTC needs to approach $24 for us to see a win. Our lowered average is going to make this a really sweet win – when we cross the finish line. I am readjusting the rebuy level back to $20.20, as that is once again the correct level for the rebuy.

Xerox Corporation (XRX) -This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We needed XRX to go up about 5 points to see a win at this price. In the last month – we’ve seen XRX close the gap on that goal and shoot up two points, so a win here without any additional rebuys is starting to seem more likely. XRX will have to post a new 52-week high – which is happening across the board for many stocks and then continue to top out. I am getting more hopeful for this one to break even or post a win – without spending more on this recommendation. I am going to raise the rebuy level here too.

The market took a heavy hit on Tuesday. However, we didn’t see any rebuys. This mean support for most companies is on the rise. That’s a good indicator for our bullish strategy.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Market volatility is good for the Nails strategy. It might also be good for a bit of indigestion – as you wonder on a daily basis which way it will swing and if it swings too far down, it might just continue, as the bottom seems to fall out with a bit more velocity than any surge will have. Even so, here at Nails we are a bullish strategy and prefer one that can make money in any market – but favors upward trends – as that is when we get paid. The downward trends are necessary to provide us opportunity to buy – but there’s just something about tucking those profits away that brings out the sun.

So, let me get right to it – today’s recommendation: Qualcomm Incorporated (QCOM).

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 21,000 full timers.

QCOM is a monster company with revenue of $20.46 billion, debt at only $31 million as compared to total cash of $13.28 billion and operating cash flow of $6.19 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 13.46 with a PEG Ratio of 0.99 and a return on equity of 18.12%. About 80.40% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice.

As many times as this stock looks good to buy – it will be a top recommendation – as we have been able to count on it over and over again.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and don’t mind volume. It’s my favorite store. I am there practically every Saturday morning at the 9:30 am open to beat the hordes that show up an hour later. From open to close, the place is always busy, always hopping and always clean.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop. I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 612 warehouses in the United States and nine other countries and employs 96,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $101.22 billion annually, $5.58 billion in the bank and only $1.38 billion in debt, with operating cash flow of $3.50 billion. It has a return-on-equity (ROE) of 14.72% and forward price-to-earnings (P/E) ratio of 20.15, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

About two months ago the company posted a new 52-week high mark of $105.97 and the stock closed Friday, trading at $101.16. Please note that COST options usually carry an extra buck or two in premium because the stock price is up there and it can support it. It’s a percentage thing and rather consistent.

Please check the stat book page for trading details just below the open positions chart.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

But, we will look to once again to add Wal-Mart Stores Inc. (WMT) to the portfolio. The world’s largest retailer has the distinction of being the world’s largest, because they have successfully combined savings with a wide selection. The stock rallied yesterday ahead of earnings – which would have been nice for a Wednesday buy in. However, there is still plenty of upside potential with this choice.

Wal-Mart is a Major League company and they know how to make that cash register ring 24-7 with revenues over $464.41 billion. Yes folks, that’s right OVER $464,000,000,000 in sales and that my friends is a lot of zeros and a figure that is closing in on half a trillion dollars. They just reported earnings – so the numbers here will update soon – but, numbers posted online say the company generates $27.25 billion in operating cash flow and have $8.64 billion in the bank with a hefty debt load of $57.91 billion. Although the debt is large in comparison to cash, most of it is in the stores, the buildings and the land they sit on. You can’t own that much real estate without owing a few mortgage payments.

The company has a return-on-equity (ROE) of 22.96% which is good considering their profit margins are small. Forward price-to-earnings (P/E) ratio is currently at 11.84. The stock chart continues to look promising and there is still plenty of room at the top as it isn’t yet closing in on a new 52-week high. With a lot of stocks peaking out – we need to find a choice or two that have upward momentum and a point or two before we see resistance.

Please see the scorecard for today’s trading details.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

—————————————————————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

In the meantime, today I will go with one of our Nails favorites: Microsoft Corporation (MSFT). Microsoft has been a consistent winner in the Nails DITM calls strategy, and much of what I do all day is monitor the same winning stocks to see where opportunity is knocking. MSFT has given the Nails strategy many such opportunities and it is looking good again today.

Microsoft is such a wide moat player and today we have the right option price for a 2015 leap to get on board.

I was thinking of going with Wal-Mart Stores Inc. (WMT) today, which is down in anticipation of earnings coming up on Friday. The largest retailer has seen a sizable drop in share price as February sales have been less than stellar. The company blames the payroll tax increases as the cause of lackluster numbers. I’m anticipating WMT to be a better choice for Friday’s pick.

Now back to MSFT.

The company remains one of the strongest out there, period. You can let the numbers be your guide. MSFT has a Forward P/E ratio currently of 8.91, a PEG ratio of 1.17. Revenue remains very strong at $72.93 billion, cash in the bank at $68.01 billion, debt of only $14.22 billion in comparison with operating cash flow of over $30.54 billion which is excellent. Return on Equity is a strong at 22.62%. Quarterly earnings growth is a negative 3.70% – but, that number gives us timing opportunity. Overall, I love these numbers.

Also, the stock chart is not showing perfect timing, but the option price is right for an easy fill today. For this one I say, put your new Halo4 disc into your Xbox and lock and load.

After the order is filled, don’t forget to set a good-till-cancel (GTC) sell order $1.00 above the purchase price.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Thanks guys – for keeping me on target.

The positions has been corrected – but, if anyone out there has the BAC 2014’s – please let me know and I will post both positions on the scorecard going forward to accommodate everyone.

For today’s recommendation I am going back to pharmaceutical giant Pfizer Inc. (PFE) once again. Pfizer has been a consistent winner for the strategy, and it doesn’t matter how many times a company wins for us or when the last win crossed over, if we can score again, that is the plan… as many times as possible.

Pfizer is a New York based company with a market cap of $201.81 billion and a current average dividend yield of approximately 4.4%. The stock chart is telling me the timing is right for a buy. There is short term support at $25 and additional support at $24 and again at $22 for the rebuy strategy. The stock closed yesterday at $27.06. The 52-week high mark is $27.41.

Pfizer is a solid company and the January 2014 options are once again very affordable. Buying now means we are buying at a discount and it will be easy to get in on the day’s recommendation.

Here are the stats to make note of:

Revenue: $58.99 billion | Forward P/E: 11.60 | Return on Equity: 11.56% | Total Cash: $22.98 billion | Total Debt: $38.89 billion | Operational Cash Flow: N/A | Institutional Support: 69.80%

Please see the scorecard for trading details.

If the position fills today, I will immediately place a GTC limit order to sell the options at a point higher. This locks in a win of $1000 for the 10 contracts I am recommending today.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Of our open positions, we are in the green with BAC, TGT & KO.  If anyone wants to sell these positions while they are peaking, but not quite at our target sales price – just do it. The market could continue to edge higher and I am predicting it will – but, current volatility could be signaling a change of overall direction.

It may not be worth the risk to hang on to something for 10-20 cents – if the market drops and takes several months to come back to this point, when the last time the DJI hit 14,000 points – it was followed by complete market devastation – that took two years to tank completely followed by four years of recovery. You could say that was a bit of a market correction.

Although I don’t see that particular scenario emerging again – it was the perfect storm of financial markets and real estate markets blowing up at that same time to cause such a global economic meltdown.

I do see the market continuing to trend up – but, I do see it inching its way – not exploding forward. With the strategy here at Nails – we don’t ride things all the way to the top – we cash out at predetermined points. Most often the predetermined exit price is reached before the stock hits resistance, but there are times when resistance needs to be breached before we will score. When this happens, it can be the better strategy to cash out while things are at the top.

So, take a look at what you’ve got – and feel free to pull the plug on those that are up – just not up enough.  Of the three – personally – I’d keep BAC & sell TGT & KO. For the column though – we’ll keep them all and follow the strategy by the book.

Today’s pick is CVS Caremark Corporation (CVS). It’s been a while since CVS was a pick here and don’t think it has ever made it on base. It’s been a pick, but never filled. Today could be a first for Nails.

Once again it’s the stock chart showing me enough upside potential for a win before the stock hits resistance, although it will be close.

CVS isn’t just your local pharmacy and drug store. The company’s pharmacy services segment offers pharmacy benefit management services, discounted drug purchase, Medicare Part D services, mail order and specialty pharmacy services, and so on. The company’s retail pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods, as well as provides film and photo finishing services. It does this with retail drugstores and online

As of March 31, 2012, the company operated 7,352 retail drugstores, 570 MinuteClinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, 4 mail order pharmacies, and CVS.com and Caremark.com Web sites.  CVS was founded in 1892 and is headquartered in Woonsocket, Rhode Island.

Here are the numbers to consider: Revenue:  $123.13 billion, Forward P/E Ratio: 11.65, PEG Ratio: 1.02, Total Cash: $1.38 billion, Operating Cash Flow: 6.67 billion, and Debt: $9.83 billion.

For today’s specific pick, please check the Current DITM Picks page.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Once again the stock chart is showing plenty of upside potential. At Nails we seek to take advantage when solid companies see a sudden drop in share price. Remember we do want to buy low and sell high.

DOW manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. For a company that has been around for over a century, it wouldn’t be difficult to imagine a lot of outdated processes. However, Dow was recognized with four 2010 American Chemistry Council (ACC) Responsible Care Energy Efficiency Awards for programs that improved energy efficiency at three of its U.S. facilities and in previous articles, I noted that the company had announced its plan to invest in projects to reduce greenhouse gas emissions and improve energy efficiency, which when implemented would cut nearly eight-trillion BTU’s of energy use and eliminate over 400 thousand metric tons of carbon emissions.

Here are the numbers to consider: Revenue:  $56.79 billion, Forward P/E Ratio: 11.16, PEG Ratio: 1.59, Total Cash: $4.17 billion, Operating Cash Flow: N/A, and Debt: $20.99 billion. Both the PEG Ratio and debt are higher than ideal, however the company performs for Nails over and over and the stock chart and technical charts tell me it’s a good time to buy, plus they continue to offer a consistent dividend payout to stock holders.

For today’s specific pick, please check the Current DITM Picks page.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

In the last couple of weeks, five picks have scored and Verizon Communications Inc. (VZ) is right there flirting with another win. On Wednesday I recommended Wal-Mart Stores Inc. (WMT), which filled with the market tanking that morning and WMT opening up a point lower than Tuesday’s close. Then yesterday, the market rallied and reversed that loss.

We saw a single day win for WMT. Nice! Sure wish it was that easy every time.

Now, for this morning’s recommendation – I am going back to a company that has won for Nails several times before: Forest Laboratories Inc. (FRX).

FRX was doing quite well until last July. With Lexapro – FRX’s top selling antidepressant going generic, the stock saw a large pull back, on fears that all cash would evaporate completely. However, by mid December the stock started to gain momentum and come back, only to tank, then peak, than tank yet again. The company has several new drugs in the pipeline and a couple of these are doing very well in trial, but investors don’t quite seem to know what to do with it. We are seeing quite a bit of sharp ups and downs.

The company is in the process of battling out a contest of wills against investor Carl Icahn – but where Icahn is involved there is usually a conflict happening. And, there are still hints and rumors around that Eli Lilly & Co. (LLY) may be in the market to buy them out, but those rumors are getting harder to find.

Forest Labs is a pharmaceutical company that specializes in developing, manufacturing, and selling many kinds of drugs. Its drugs help treat depression, anxiety, Alzheimer’s, and hypertension, to name a few. FRX has ranked sixth among the top pharmaceutical and biotech companies, according to Pharmaceutical Executive’s annual strategic industry audit.

It is a very solid company. I have confidence in the stock chart that they will again rebound with new drugs in the pipeline, along with the fact that they have zero debt – all are great signs in my book for a good play. They have $2.12 billion in cash and NO debt. Overall, the stats on this company tell me again and again that this continues to be a solid pick.

Trading the same companies over and over again as the technical indicators point to the correct buy and sell numbers is the best way to make money trading Lenny’s DITM picks. It removes all the emotional factors that can lead an investor to trouble. One of the rules here at Nails is to never get attached to a trade or a company. Only be attached to the numbers.

Please check the Stat Book page for the specifics of today’s recommendation. Remember to post a GTC limit order to sell your call at the target sale price of $1.00 higher than the purchase price as soon as the order is filled in order to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today reality is back with the market basically skipping Friday’s rally and opening more in line with where things left off on Thursday, as though Friday was a fluke.

Today I’m looking to once again to add Wal-Mart Stores Inc. (WMT) to the portfolio. The world’s largest retailer has the distinction of being the world’s largest, because they have successfully combined savings with a wide selection.

Wal-Mart is a Major League company and they know how to make that cash register ring 24-7 with revenues over $464.41 billion. Yes folks, that’s right OVER $464,000,000,000 in sales and that my friends is a lot of zeros and a figure that is closing in on half a trillion dollars. They generate $27.25 billion in operating cash flow and have $8.64 billion in the bank with a hefty debt load of $57.91 billion. Although the debt is large in comparison to cash, most of it is in the stores, the buildings and the land they sit on. You can’t own that much real estate without owing a few mortgage payments.

The company has a return-on-equity (ROE) of 22.96% which is good considering their profit margins are small. Forward price-to-earnings (P/E) ratio is currently at 12.94. The stock chart looks promising with the stock down a point this morning. Since the change of calendar, WMT has been inching upwards steadily. There is still plenty of room at the top as it isn’t yet closing in on a new 52-week high. With a lot of stocks peaking out – we need to find a choice or two that have upward momentum and a point or two before we see resistance.

Please see the scorecard for today’s trading details.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Bank of America Corporation (BAC) has been on the scorecard for a week. We currently show 10 contracts with an average price of $6.40 per share. The options are currently trading for $6.30 so we are about even money with this position. The stock needs to push up a point for us to see a win. If the market continues to inch up – we will see this position close out quickly.

ArcelorMittal (MT) has been on the scorecard for almost two weeks. I’ve got the trade listed on the scorecard at $7.65. Normally I round up the share price for the scorecard to the nearest 10¢ – but on the day this  filled – the option only traded at this price. With MT – our average price is down about 35¢ and the stock price seems to be adjusting down a bit. I’d expect this one to hit a rebuy at least once before we see it rebound for a win. However, long term trending is bottoming out and short term trending is rising. Both good signs for a price turnaround and a DITM win.

Texas Instruments (TXN) has been on the stat book since January 11^th and looks like it will be the next pick to cross the finish line of those listed here in our open positions. The options are currently trading for $8.60 and our average price is $7.90. We need just a couple good days or one great day to push this one into the winners circle. Support levels for TXN have moved up too – so look for the rebuy change from $31.60 to $32.50.

Verizon Communications (VZ) has been on the scorecard since January 7^th. We have 20 contracts and an average price of $4.20 with the options currently going for $4.40 as of yesterday’s close. We are up, just not enough to trigger an automatic win with a GTC sell order. The stock chart is looking good and the stock is jumping nicely today. It might even beat out TXN to the checkered flag and score another win for Nails today. Here too support is up – so with it goes the rebuy price. With 20 contracts on the board, if you wanted to cash in today – a little off the $1.00 target – go for it. Cash is good.

Target Corp. (TGT) has been on the open portfolio since December 10, 2012. We’ve added two rebuys to the original purchase and now hold 30 contracts with an average price of $12.30 with the current positions going for $11.26 which is down from our holdings a point. The next buy level has been adjusted to reflect the newest level of support at $60.10. Although the market is having a great morning so far – it won’t be enough for this position. TGT will need to see another couple point increase to see a win. The best we can hope for is that the market surge will change the direction and help boost upward momentum.

Coca-Cola Company (KO) – has been in the portfolio since August 13th. We have 80 contracts that are trading about $0.30 below our listed average. The rebuy price needs no adjustment. The stock chart is showing higher support – but, we’d be buying too close to our average price for it to really help much. Therefore, I’m going to leave the rebuy alone.

Intel (INTC) – We’ve had INTC for about nine months now and hold 840 contracts after the double-down recommendation on Wednesday. Our average price on Intel is now $2.70 and the current option price is $2.08. With our position as it stands – INTC needs to approach $24 for us to see a win. Our lowered average is going to make this a really sweet win – when we cross the finish line. I am leaving the rebuy level at $20.20, but if the market keeps going up – we will not need to rebuy this one again.

Xerox Corporation (XRX) -This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We needed XRX to go up about 5 points to see a win at this price. In the last month – we’ve seen XRX close the gap on that goal and shoot up two points, so a win here without any additional rebuys is starting to seem more likely. XRX will have to post a new 52-week high – which is happening across the board for many stocks and then continue to top out. I am getting more hopeful for this one to break even or post a win – without spending more on this recommendation. I am going to raise the rebuy level here too.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Back in December, Lenny was transferred from federal custody, back into state custody. He is currently spending his days at Wasco State Prison, which is about an hour and a half north of LA, just past Bakersfield if you were heading north up Interstate 5.

Lenny’s release date from state custody is March 21, 2013. He has just a couple months left. From there he will again be transferred back into federal custody to complete the 2.5 months that will be remaining on his federal sentence. By the mid-to-end of June, his Southern California prison bus tour will conclude and he will have completed both sentences.

His time at Wasco has been very hard on the guy. He is not allowed any phone calls; the visiting application process takes 6-8 weeks for approval, so he has not had any visitors yet. He no longer has email privileges and our only method of communication is handwritten letters mailed through the US Postal Service.

Since the move, I’ve sent him letters, books, stamps, paper, pens… etc. I’ve also sent money for him to spend on hygiene products and other sundry items that make life somewhat bearable. He’s finally getting the supplies I’ve mailed directly – but, the money on his account they can hold for 30 days and they take half of it for restitution and another 10% of balance towards processing fees.

Thankfully, I’ve figured out the payment system quirks and finally managed to get enough on his account so that when he can finally go shopping next month – he’ll have the means to do so.

If anyone would like to say hi to Lenny – you can do so by mailing him a letter. Please send to:

Lenny Dykstra AN1414

FAC H4-112 L

Wasco State Prison

P.O. Box 9900

Wasco, CA 93280

And, if you’re feeling generous – please send a book of stamps in your letter. Prison currency used to be cigarettes. Now it’s stamps. Money on his books takes a long time for him to get, but he can trade stamps for other items and is allowed to receive letters and each letter can have up to 40 stamps in it. A book of stamps costs $9.20 and means the difference between a really bad day and one more tolerable.

If you choose to write – you can tell him what a fabulous job I’m doing… but, in all honesty – what he would really like to hear about – is how you are doing with the Nails strategy and if his system is working for you. It’s always nice to know when you’re helping others. Please tell him good news if you have some to report.

Although, if you have any recommendations for improving things here at Nails, sending those tips to me or through the “contact us” page works better. Constructive criticism is my department, accolades is his.

Now to today’s pick:

In checking all our open positions – today’s pick is one of my most reliable purchases and already on the scorecard with 420 contracts. I am referring to Intel Corporation (INTC).

Although INTC dropped in price – it didn’t drop as far as expected for a rebuy – but, still looks like a buy opportunity and close to where I will readjust the rebuy price.

The option price has come down, way down and we need to double up and lower the average. I recommend another double-down on this position or an “add as many contracts to your position as possible” recommendation. Back in November, with the last double-down recommendation, I was looking at 2-year and 5-year lows for the rebuy price. Since then support for INTC has been inching up, as each new low is higher than the one previously.

Now is a good time to buy if you don’t hold the position, or lower your average by adding more options to your open position.

In my opinion, as I have stated many times – Intel continues to be one of the most dominant companies in the world. It defines the term “wide moat” meaning, Intel has very few competitive disadvantages. They control the playing field with an 80% market share and this makes them the single best stock in the world. And they will continue to perform.

INTC closed trading yesterday at $21.28, which is way down from the year’s high of $29.27 posted in May. The stock chart looks like there is an excellent buy or rebuy opportunity for our DITM calls strategy. We need to take advantage of the lower price while we can.

Let’s look to the numbers:

Revenue:        53.34 billion

Forward P/E:   10.18

PEG Ratio:      0.81

Return on Equity:        22.66%

Cash:   18.16 billion

Debt:   13.45 billion

Operating Cash Flow: N/A

Please check the scorecard for today’s trading details.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

So, let me get right to it – today’s recommendation: Qualcomm Incorporated (QCOM).

QUALCOMM Incorporated makes digital telecommunications products. The company develops and supplies integrated circuits and system software for voice and data communications, networking, application processing, multimedia, and global positioning systems. QCOM is headquartered in San Diego, California and employs about 21,000 full timers.

QCOM is a monster company with revenue of $19.12 billion, debt at only $60 million as compared to total cash of $12.37 billion and operating cash flow of $6.00 billion making for a very solid balance sheet. The company’s forward P/E ratio is a modest 13.23 with a PEG Ratio of 1.00 and a return on equity of 17.46%. About 81.50% of the stock is held by institutional traders. All in all, the stats tell me this continues to make a nice choice.

I am jumping in early, so if you want to wait until Friday on this one – it’s ok to be a bit more cautious… as it is the rules that say wait, but my instincts are saying now.

Please check the scorecard for trading details and if the order fills, immediately place a GTC limit order to cash out the position for a win should the option price per share increase by $1.00 to lock in a win.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

————————–

At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and don’t mind volume. It’s my favorite store. I am there practically every Saturday morning at the 9:30 am open to beat the hordes that show up an hour later. From open to close, the place is always busy, always hopping and always clean.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop. I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 612 warehouses in the United States and nine other countries and employs 96,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $101.22 billion annually, $5.58 billion in the bank and only $1.38 billion in debt, with operating cash flow of $3.50 billion. It has a return-on-equity (ROE) of 14.72% and forward price-to-earnings (P/E) ratio of 20.50, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

A month ago the company posted a new 52-week high mark of $105.97 and the stock closed yesterday, trading at $102.89. There is a 2014 call that are selling rather cheap, even cheaper than the Nails formula would call for – normally, they carry an extra premium because the stock price is up there and it can support it. It’s a percentage thing. I’m hoping it’s a case of the stock moving up without the options following and we can perhaps get in before the price difference is noticed. If I’m reading the stock chart correctly and the stock pushes up even further – we will see a quick win with this choice. But, please note the option recommended is for an odd amount $90.50, not $90.00 – so it could be a missprint or a fluke, and not really available so cheap. Research this one & make sure you don’t put in a market order. Use only a GTC order. Be sure.

Please check the stat book page for trading details just below the open positions chart and please note – the I need to update the open positions page and will do that this weekend. Sorry for the delay in posting new buys.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Today, I am going back to the bank with Bank of America (BAC).

BofA (as we call it, sometimes fondly and sometimes not, depending on how much you account was just charged) is a bank holding and financial holding company, which through its subsidiaries, provides banking and non-banking financial services and products throughout the United States and in selected international market, and is one of the world’s largest financial institutions. They serve individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.

The company provides unmatched convenience in the United States, serving approximately

53 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,750 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries.

Bank of America is once again a good buy. The stock closed yesterday at $11.35 which is cheaper than many of the options that are recommended. Today’s recommendation looks to be another quick score, like we have done many times with this choice.

Please see the stat book page for the specific trading details for today’s recommendation and notice that I have gone really long with the 2015 leap positions.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.
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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails on the Numbers by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails on the Numbers contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails on the Numbers for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

When most stocks in our little basket of picks are all testing the top, it makes harder to find one we should be buying, not holding or selling. It would be a good time to venture forth into the other side of options and recommend a put or two.

However, it’s good when the overall outlook is bullish. This is after all a bullish strategy. But, it means that we have to resist the urge to overspend to get in on the right options. Going in at the right time and for the right price is what makes money. We do have to do both.

Today’s Pick:

Today I am going once again with steel producer ArcelorMittal (MT) that hails from a quaint little Luxemburg, that boasts a minuscule population of less than half a million and approximately 999 square miles in area. The country is nestled between France and Germany, just south of Belgium. As far as size goes, the whole country has fewer residents than Albuquerque, New Mexico, which ranks 34^th in population in US cities and is about two-thirds the size of Rhode Island, our smallest state.

However, from previous articles regarding this company – you may remember that Luxemburg’s economy is reinforced by the strength of steel that comes from our pick, MT. In or about 1850, iron ore was discovered in the southwestern corner of the country and today steel remains responsible for 25% of Luxemburg’s export trade.

From such a tiny place we have ArcelorMittal, the world’s largest producer of steel, generating about 8% of the world’s output and reports revenues of $87.35 billion. They are said to employ over 250,000 people worldwide and production capacity is approximately 130,000,000 tons of steel; primarily carbon and stainless steel products. The company enjoys a massive economy of scale, with globally diversified operations. When the price is right, they make a very solid DITM play.

The stock has been just hammered and hammered over the last couple years and it’s been about 18 months since it was a good choice for us.

Please see the stat book page for trading details and if the order fills, immediately submit a GTC order at $1.00 above the entry price to get an auto-fill for a $1000 win should the options increase to the target sale price.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

As a company, Disney is much more than the Mouse. They are a well rounded entertainment company, owning the television network ABC and others, the entire ESPN franchise and several other cable networks, Hyperion Books, Radio Disney, Touchstone Pictures and many additional bottom line enhancers. They have merchandise licensing like no other company and a brand that spans the globe with the Disney Resorts and cruise lines that all cross promote everything.

Company stats are as follows: Revenue comes in at $42.28 billion; Forward P/E is 13.35 and the PEG Ratio is 1.31; Return on Equity is 15.17%; total cash is $3.39 billion; operating cash flow is $7.97 billion and debt is a little less than twice that at $14.60 billion.

Please see the scorecard page for trading details and remember that as soon as an order fills, it is always a good idea to place your limit order for the sell at a $1.00 higher than the purchase price, to lock in a win – as soon as it happens.

Remember: Life is a Journey; enjoy the ride! (Especially the “E” ticket rides).

Note: Dykstra held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Wal-Mart is a Major League company and they know how to make that cash register ring 24-7 with revenues over $464.41 billion. Yes folks, that’s right OVER $464,000,000,000 in sales and that my friends is a lot of zeros and a figure that is closing in on half a trillion dollars. They generate $27.25 billion in operating cash flow and have $8.64 billion in the bank with a hefty debt load of $57.91 billion. Although the debt is large in comparison to cash, most of it is in the stores, the buildings and the land they sit on. You can’t own that much real estate without owing a few mortgage payments.

The company has a return-on-equity (ROE) of 22.96% which is good considering their profit margins are small. Forward price-to-earnings (P/E) ratio is currently at 12.76. The stock chart looks promising for a quick win and getting on board with the options is not going to be the challenge this morning.

As the market pushes up, call options will move up more slowly than the stock and buying calls is a bit cheaper then when the market is dropping.

Please see the scorecard for today’s trading details.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

The good news is that he is expected to be completely done by the end of March. Originally, we had been thinking it would be a July release – but, now that’s been moved up a few months.

Today’s pick is Texas Instruments Inc. (TXN), creators of the first computer using integrated circuits and the first handheld calculator. TXN has an excellent track record here at Nails.

TI’s vision for new products is to help create self-driving cars and controls for home appliances linked to your cells phones. In the future – TI and I both seem to think that our world will soon be condensed into what you can program your phone to do or how you can gain access to their new DLP technology for projectors using a wide array of platforms, including again – the smart phones, tablets and laptops.

From previous columns about the company, you will know that Texas Instruments is a world leader in digital signal processing and analog technologies. With close to 35,000 employees worldwide, they are a monster company with a rock solid balance sheet. Revenue comes in at $13.27 billion and the company’s forward P/E ratio is looking a bit on the high side at 18.17, and return on equity posts at 15.99%.

TXN manufactures a whole host of products, from audio, video and imaging – to medical, industrial and military products and applications. This company is all about cash management and that is a very healthy way to run a business. Debt doesn’t have to be bad, but if you can keep your cash in the bank and generate continued organic company growth – you are certainly doing something right. Although last year, TXN added a bit of long term financing to its balance sheet- adding debt by financing the purchase of National Semiconductor. And it is through this new purchase of National Semiconductor that supplies Apple components which should do its part to rally the share price going forward.

Looking to the chart, we see Texas Instruments has been steadily climbing since mid-October and currently sits at $32 and change. I am seeing support at several levels and room at the top.  We don’t need much of a spread for a good DITM opportunity, so today offers us a good opportunity for a buy.

Please check the scorecard page for the specifics of the trade and when the order fills, remember it is important to set a good-till-cancel (GTC) sell order $1.00 above the purchase price to lock in a win.

Always remember: Life is a journey, enjoy the ride!

Note: I held no positions in any of the stocks mentioned in this column at the time of publication.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Share price is trending down in the short term and going up long term due to the peak in early October. There are several layers of support making this multi-national conglomerate a good deal. The option prices are excellent as well – cheaper than the Nails formula – so good news all around.

If you venture out to the GE website and look up their products and services listing – it is quite the list – as GE now covers just about everything from household appliances, aviation equipment and asset management, power generation and distribution, water processing and so on – even entertainment and banking. You could almost say you have a diversified portfolio with just this one purchase.

Here are the numbers to note:  Revenue:  142.31 billion / Forward P/E:  12.51 / Return on Equity:  11.27% / Cash:  85.46 billion / Debt:  431.48 billion / Operating Cash Flow: 29.21 billion.

Debt is high but the company has a track record of managing debt well and I have found that older companies have more of a tendency to keep a lot of debt. GE has been around since 1892, so that qualifies as not just old but quite stodgy too. The company was originally founded by Thomas Edison and JP Morgan, no lightweights in American History.

Please see the stat book page for trading details and once filled set a GTC (good ’til cancelled) order at $1.00 higher than your average cost to lock in a $1000 gain.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in the Nails Investments newsletter by Lenny “Nails” Dykstra (the “Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission, or with any state securities regulatory authority. The Nails Investments newsletter contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon the product for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading. The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Verizon is headquartered in New York and is the second largest US telecommunications services provider (after AT&T) and has taken the top spot in wireless services (ahead of AT&T).

Verizon touts itself as America’s most reliable wireless network and the most advanced fiber-optic network. The company delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500. A Dow 30 company, Verizon employs nearly 190,000.

The company’s wire-line business provides local telephone, long-distance, and Internet access services to residential and business customers. I have Verizon FIOS and you can’t get a better consumer internet provider in the home without installing a T-1 line. Their HD TV FIOS service isn’t bad either and picture quality is excellent.

Verizon has spent millions promoting the Droid and the addition of the iPhone hasn’t hurt sales, although FIOS hasn’t performed financially as well for the company as would be expected for the excellent speed and service provided.

However all in all, the numbers are still nice to look at – Verizon has revenue of $114.24 billion; a forward P/E of 15.54; operating cash flow of $33.03 billion; total cash on hand of $10.32 billion; making Verizon a very solid play, even with debt at $52.80 billion.

The chart for the stock tells me timing is good and there is still room at the top for getting a win before the need to break beyond resistance, and the option prices are good.

This feels like a quick win for Lenny’s DITM calls strategy.

Remember, once filled – please remember to place a GTC sell order a dollar higher than the purchase price, as this will automatically capture what we set out to achieve; a really quick $1,000 dollar profit.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Proctor & Gamble (PG) is our most recent purchase. We hold 10 contracts with an average cost of $9.60 per share and the current cost of the options are selling for $9.20 leaving us short 40 cents per share. In looking at the stock chart, support has gone up and our rebuy level will be adjusted to $67.20 to reflect that market change.

DuPont de Nemours and Company (DD) has been in the open portfolio since December 19, 2012. We have ten contracts at $6.40 and the January 2014 $40.00 options are going for $6.49 which is slightly up from our buy in. The stock seems to be at the top of the current up trend. I estimate that the stock will adjust back down a bit before going back up. The rebuy level is correct for the current trading trends.

Target Corp. (TGT) has been on the open portfolio since December 10, 2012. We’ve added two rebuys to the original purchase and now hold 30 contracts with an average price of $12.30 with the current positions going for $10.35 which is down from our holdings a couple points. The next buy level has been adjusted to reflect the newest level of support at $58.90. The price for these options is low enough from our current position – that if you wanted to add more now, and not wait for the rebuy – it’s really not a bad idea as the options have traded NO volume since that target price was reached. You could get a break if trading is light in volume and rebuy at a lower rate than what the stock should be supporting.

Microsoft Corporation (MSFT) – has been in the portfolio since November 14th. We have ten contracts with an average price of $7.50 and the options are currently going for $7.30, slightly down from our buy in price. The rebuy level needs to come up to $26.60 to reflect really nice support levels near that price. Resistance for MSFT is also quite firm at $27.70 (rounding), which isn’t high enough to see a win at $1.00 more than our average. We will need to either adjust our GTC sell target price and take a smaller win, or wait for MSFT to break free of resistance and head back up to its normal price range.  In looking at the stock chart, the higher price range is very doable. We’ll stick it out.

Pepsico Inc. (PEP) – was added to the open portfolio on September 7, 2012 and we currently hold 50 contracts with an average cost of $10.80 with the options currently going for $9.45. The stock hit a rebuy level over the holiday break, but no volume traded that day, so no adjustment was made to the portfolio.  I am going to leave the rebuy level at $68.40.

Coca-Cola Company (KO) – has been in the portfolio since August 13th. We have 80 contracts that are trading about $0.10 below our listed average. The rebuy price needs no adjustment.

Intel (INTC) – We’ve had INTC for about eight months now and hold 420 contracts. Our average price on Intel is $3.10 and the current option price is $2.45. With our position as it stands – INTC needs to see upwards of $24 for us to see a win. I see INTC peaking by the time our position is looking at even money. The stock will need to get past this and continue higher, a doable goal for the share price in the next couple months. To get a win, we need to lower our average or wait for a increase in share price, or a combination of both. I am increasing the rebuy level to $20.20 to adjust for the current increase in support.

Applied Materials Inc. (AMAT) – We’ve had for almost nine months now and we are up about 20 cents when you compare our average to the current option price. Resistance is still at $12.00. The stock needs to break this level for us to see a win as recommended and it is strong resistance.  The rebuy price has not been changed and remains at $10.20. The price range to AMAT doesn’t seem to support a win a point higher, so I am lowering the GTC price on this one to sell at $0.50 higher over $1.00, which is doable the next time the stock peaks at $12.00.

Xerox Corporation (XRX) -This position has been on the open portfolio since May 2011 and instructions for rolling this one out were published on Christmas Eve. For the roll out – we sold the 4920 contracts we had for $0.05 and took a loss per share of $0.11 which equates to carrying $54,120 into the new position as excess baggage. We recommended buying at market the January 2014 $5.00 options which sold that day for $2.12. The net cost to roll this position was $17,800 which is about the same as purchasing 3M as a new position. This leaves us now with a top heavy position with 200 contracts with an average price of $4.82, rounded to $4.80 for the scorecard. We will need XRX to go up about 5 points to see a win at this price. That doesn’t see likely, as the stock hasn’t broken $9.00 in the last year. Therefore, count on additional rebuys to lower the average – so a win at about $8.00 can be achieved.

Remember: Life’s a Journey, Enjoy the ride.

(At the time of publication, Dykstra had no positions in the stock mentioned.)

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.

Happy New Year!

Over the last few weeks, Lenny has been bouncing around from one facility to another. He is currently at Wasco State Prison – which has an inmate reception center – which means the facility is used to assess where inmates should be ultimately going, by providing physical and mental evaluations. Additionally, his federal attorneys are working to have him placed back into federal custody – which was a condition of his agreement to plead guilty in federal court and would mean additional moves. He’s not quite done with the Southern California prison bus tour.

All the moves make it very difficult to communicate with him. No more phone calls, no more email. I’ve sent postcards – to different locales, but he hasn’t stayed long enough to get them. I’ve set up a prepaid phone account so he can call, but – none of his attempts to do so were connected. The system cuts off before we can say hello. One day he tried calling 28 times – not one call was connected. Very frustrating.

However, on New Year’s Day he finally showed up in the system online and I was able to send him some spending money. Hopefully, he’ll buy supplies so he can write me a letter – to let me know how he’s doing. If he stays at Wasco for a few weeks, I might have enough time to process a visiting authorization and make the four hour drive up to see him. It would be kinda nice to say hi in person.

Now to Nails and today’s pick –

Today, I am going to try once again to add Costco Wholesale Corporation (COST) to the DITM portfolio. Timing is looking good for another quick pop.

As we all know, Costco operates membership warehouses and offers discounts on brand and private label goods and services – with no frills stores and high quality merchandise, usually packaged for mega consumers. It’s a great place to shop if you have a few kids, own a business or like quality with competitive prices, and don’t mind volume. It’s my favorite store. I am there practically every Saturday morning at the 9:30 am open to beat the hordes that show up an hour later.

The company sells just about everything, except for the item you bought last week; those will be gone. This “here today, gone tomorrow” situation with inventory sets up a consumer attitude where there is always a spending frenzy, as consumers never know if the items that seem like a good buy and in stock today will be there the next time they shop. I call it the $200 club, as you never seem to get out without giving up at least that much cash.

Costco operates 612 warehouses in the United States and nine other countries and employs 96,000 people.

Along with most of the merchandise they sell, the company has an extra large balance sheet too. Revenues are posted at $101.22 billion annually, $5.58 billion in the bank and only $1.38 billion in debt, with operating cash flow of $3.50 billion. It has a return-on-equity (ROE) of 14.72% and forward price-to-earnings (P/E) ratio of 19.71, which is a bit higher than what I like to see for bargain shopping, but they support a higher P/E ratio on a consistent basis.

A month ago the company posted a new 52-week high mark of $105.97 and the stock closed yesterday, trading at $98.73. The 2014 calls are selling with a higher premium than the usual Nails formula – but, like most of our consistent winners that have share prices over $70 – they carry that extra premium around all the time. We will pay it to get in, and it will still be there when we cash out.

Please check the stat book page for trading details just below the open positions chart.

If the order is filled, don’t forget to place a good-till-cancel (GTC) sell order $1.00 higher than the fill price in order to grab a $1,000 victory as soon as possible.

Always remember: Life is a journey, enjoy the ride!

At the time of publication, Dykstra had no positions in the stocks mentioned.

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At the time of publication, Mr. Dykstra will not, directly or indirectly, have a position in any security that he discusses in Nails Investments by Lenny “Nails” Dykstra (the”Product”). HOWEVER, MR. DYKSTRA MAY ENTER ORDERS TO PURCHASE OR SELL SECURITIES MENTIONED IN THE PRODUCT AFTER 10:30 A.M. ON THE TRADING DAY FOLLOWING THE DATE ON WHICH THE SECURITY IS MENTIONED IN THE PRODUCT. IF YOU ENTER ORDERS TO BUY OR SELL SECURITIES AFTER 10:30 A.M., IT IS POSSIBLE THAT MR. DYKSTRA MAY HAVE PURCHASED OR SOLD THE SECURITY AT A PRICE MORE ADVANTAGEOUS THAN THE PRICE YOU WILL OBTAIN.

Mr. Dykstra is not registered as a securities broker-dealer or an investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Nails Investments contains Mr. Dykstra’s own opinions and is provided for informational purposes only. You should not rely solely upon Nails Investments for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained herein constitutes, or is intended to constitute a recommendation by Lenny Dykstra of any particular security or trading strategy or a determination by Lenny Dykstra or Nails Investments that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

IMPORTANT RISK DISCLOSURE: Options trading carries substantial monetary risk and may not be suitable for all investors. Unlike stock trading, there are different levels of risk associated with various options positions, and you should familiarize yourself with the type of options (i.e., put or call) you contemplate trading.

The Product includes a list of stocks chosen by Mr. Dykstra in accordance with his stated investment strategy. Your actual results may differ from results reported for the list for many reasons, including, without limitation: (i) performance results for the list do not reflect actual trading commissions that you may incur; (ii) performance results for the list do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (iii) the price of stocks chosen for the list may change in a short period of time, and although the “purchase” or “sale” of a stock on the list will not be affected on the list until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iv) the prices of stocks on the list at the point in time you begin subscribing to the Product may be higher than such prices at the time such stocks were chosen for inclusion on the list. Past results are not necessarily indicative of future performance. All suggested trading ideas involve the purchase of 10 options contracts, unless otherwise noted.