No. of Recommendations: 14
I dunno, June DG $120 puts bid $13.60?
About 19%/year rate of cash return, or you get an entry price of $106.40.
I think they'll be making around $11 within a year or two, so that would be an entry price at a forward P/E at/under 10.
But of course I'm crazy in thinking they aren't about to go broke.
Sign me up to the Crazy Club - eps in the last 4 quarters has been $2.34, $2.97, $2.35 and $2.14, so $9.80 over the last 4 quarters, or, if you annualize their 'terrible' results of the last 2 quarters, $8.98. Is buying back shares. Pays a dividend (although that won't help you with the put). Does well in recessions. Made >$10 eps in each of the previous 3 years. Has doubled revenues and earnings over the last 8 years (9% p.a.) while tripling eps (15% p.a.) because of share repurchases.
Nahh, I think we're better off with Apple at 30 times earnings that plateaued for 10 quarters, no risk there.
DTB
