Monday, August 20, 2007

BRLC and Choices!

I purchased 100 shares of BRLC at the open today for a price of $5.90 per share. I plan on waiting until mid day and then selling a call. Hopefully we see the share price rise and I can get a higher premium for the 2 calls I will be selling.

With my remaining money in the account, I am debating on what to do. I am considering a few different options. The first option is to hold the money in cash. There is over 200 dollars though and I don't want to hold that in cash unless it was in my money market account. The stocks I am considering are as follows:

COF - Capital One Financial. I believe this is a good company. I have my money market account and credit card through capital one. Capital One was trading this morning at $69.10. It has a PE of 10.5 and a Debt/Equity of 1.19. Capital one gives a ROA of 2% and a ROE of 11.7% The dividend yeild is 0.16%.

BAC - Bank of America. Bank of America is rated a buy by S&P and is the official bank of the NFL. Lots of publicity this fall and winter for NFL fans. BAC traded at $52.01 this morning with a PE of 10.8 and a D/E of 4.05. They have a ROA of 1.5% and a ROE of 16.6%. The dividend yeild is 4.95%.

AA - Alcoa is Dow Jones 30 company that I have been interested in for awhile. AA trades at $33.87 with a PE of 13.4 and DE of 0.47. The ROA is 6.9% and ROE is 14%. They return a dividend yeild of 2.04%.

I feel all three of these companies would add some stability to my portfolio. They are all companies that have been around for a long time and will pay a dividend. I will see where they trade through the day before making my decision. Stay tuned!!

Disclosure: I own shares of BRLC. I do not own shares of BAC, COF, AA yet. I am not a professional so do your own research before purchasing stocks.

No comments: