Another Saul investment was selected as a new RB stock.
Hi Gaucho Chris, thanks for noticing.
About 7 months ago I started posting a list of my approximately 25 positions for those who were interested. About 15 were MF RB or MF SA choices. About 10 were not.
After my first posting, for four months in a row (July, Aug, Sep, Oct), MF RB recommended one of the 10 stocks in my portfolio that were not yet MF recommendations. They skipped November and December but here we are with a fifth.
Since picking five out of my ten, in the huge field of 1000’s of US stocks to choose from, is way, way, WAY, beyond coincidence, and statistically probably less than a one in a billion chance of happening randomly, I have to say I’m very flattered. However, no one from the central office has ever thanked me for the recommendations.
The recommendations were:
July 24 - YHOO
Aug 28 - INVN
Sept 25 - AMBA
Oct 23 - SCTY
Nov - …
Dec -…
Jan 22 - UBNT
Best to you all,
Saul
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Saul, your picks have truly been amazing. Congratulations on having yet another very early pick now chosen as a Rule Breaker.
Imitation is the highest form of flattery.
Please know that the lords of central office are off base in not publicly thanking you. However, there are growing numbers of us little folk who quietly watch and listen to you and have for the past year. We are extremely thankful for you and your generosity in sharing profitable ideas you have come up with through hard work and DD.
I picked up some UBNT last summer and will add more to my position.
Again, for all the little people: THANK YOU.
Jim
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Hi Saul and Everyone, I would also like to echo a big THANKS to Saul for the great recommendations. I did purchase AMBA and INVN before they were TMF recommendations. I may have missed the boat on Ubiquity, but I’m going to look it over more closely now.
Thanks much Saul, not just for the great recommendations, but also the great education. You are a BIG help for me.
All the best, Brian
Ha - I just bought UBNT yesterday! I researched it this weekend and couldn’t resist - seems like a great company and they’re executing flawlessly.
Jason
Long UBNT
Oh - thanks for bringing this company to our attention Saul!
Jason
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I am late to the Saul party but very thankful I came across his posts (about 2 months ago). I smiled this afternoon when I saw Ubiquity as the new issue recommendation from David… knowing it was one of your largest positions…
Saul, regarding Ubiquity, I assume you give the nod of approval on buying in now and starting a position?
You are teaching a man how to fish instead of giving him a fish through this discussion board. As a 29 year old I want to soak up as much of your experience and wisdom as possible.
-Nate
Saul,
I too want to thank you
With your posts you have helped me and your stock picks have been truly amazing.
Thank you for willing to share with us,
Erik
Thanks everyone for all the appreciations. It does make me feel really good and I’m glad that others have profited too.
Again, remember that I make mistakes too, and not all my stocks go up. Not nearly!
Best,
Saul
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And here I am feeling like the guy who discovered Elvis.
Jeb
Thanks, Saul. I’m enjoying your wisdom!
Hi Saul -
FWIW I purchased UBNT on your recommendation (after of course I looked into it). I like their foubnder/CEO’s style.
I did buy SCTY after considering your favorable recurring revenue remarks, and grabbed INVN and AMBA when they became MF picks. I also still have QCOR, which has been recently moving back up nicely, though I know you moved away from it for the reasons you stated.
FYI I did buy normal positions in CAMP and DGII recently. They are in the SWIR space (M2M/IoT). Not sure if you ever had looked at them, but would be curious in your thoughts. There was a Fool article today on CAMP, which has been steadily rising lately. http://www.fool.com/investing/general/2014/01/22/is-calamp-c…
Sincerely,
Vic
Saul:
I’d also like to thank you for the UBNT pick - I bought on 11/26 at $39.66. I feel like we’re front running RB.
Also this board is a great idea. Now it’s easy to find what your latest thoughts are.
John
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Well I had looked at UBNT since Nov and finally bought UBNT this week and it promptly went down.
As I like the company I went for a 2nd helping by writing a $40 Put for June and collected $5.60. I think I can’t go wrong on that end.
Thank you Saul for bringing UBNT into my radar screen and John for his posts on Options
I hope you guys are enjoying this cold weather, there is more to come, Erik
Hi Eric,
I added a little to my UBNT position at about $40 as well. I already had a substantial position so I only increased it by about 10%.
To tell the truth, I felt more confident in it now that it’s a MF RB selection. I figure that way there are other guys following it as well as just me, and that some of them probably understand lots more about what the company does than I do. The discussion boards are invaluable. With all that help I felt okay adding to a position which was already really big.
Saul
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Saul
I feel the same way and if the stock comes down below $40 I will also buy more, instead of writing puts.
I have learned the hard way that put writing is not the same as owning the stock, SCTY comes to mind; I wrote the $50 Put when it was trading at $53 
I have sold recently some shares (PPG), after this stock made a long and steady climb and it had gotten too big in my portfolio. I also still have a conservative play (PAA) that I am am looking to sell, so I have money to invest.
Overall, my investment style is not as aggressive as yours, but I think that is more of a time issue than anything else. I am still a working stiff and I think I could not do what you do, or do you work with a lot of alerts, stop-loss-orders etc?
My thinking of you is that you spend a few hours every day watching and researching, I might be wrong, but your input and execution for me is a great performance and inspiration for me.
Thank you
Enjoy the Sunday, Erik
Eric, I don’t use any stop losses ever. I figure if I want to sell I should do it now, not give back 10% on a random move which hits the stop loss.
I do spend a couple of hours most days reading MF boards, doing occasional buys or sells, reading news and conference call transcripts, etc.
Best,
Saul
I have learned the hard way that put writing is not the same as owning the stock, SCTY comes to mind; I wrote the $50 Put when it was trading at $53
Erik, yes writing puts can limit your profit if the stock soars. To compensate for this I either buy the stock or write puts that are deep in the money. This allows me to invest if I am short on cash. For example, I wrote a CMG Jan14 $450 put last March for a premium of about $130 per share. The shares went above $500 so I still left some money on the table but it was far better than selling an out of the money put for a few dollars per share. I also wrote BOFI Apr14 $75 puts about 3 months ago for a premium of $16.30 per share. I definitely wouldn’t mind owning the shares at $60 but I’m also ok with the contracts expiring worthless.
Chris
OK - this is not an options board, but this thread seems to be a lot about option strategies. I’m reasonably certain I once read that Saul never uses options, I’m not sure why not.
The way I look at it, there’s always more good investment ideas than I have money to take advantage of. I try not to “fall in love” with any of the companies that I hold, but I admit that I have a few positions that I pretty much plan on being part of my estate when I pass away.
That being said, with few exceptions I almost always try to buy into a position by selling an OTM cash-covered put and exit a position via an OTM covered call. I only trade options in companies I either own (sell calls) or want to own (sell puts).
Using options is not a hard and fast rule, if I think I need to hurry up and get out of a position due to some sudden and very worrisome event, I sell the position - I sometimes buy into a position because there aren’t any options (AIOCF comes to mind).
But generally I find selling options an easy way to boost my portfolio returns by 10% - 15%. If a stock runs away and I miss it - OK, I can sell a new put or turn my attention elsewhere. If the a call expires and I still own the issue, I just sell a new call, or if I need cash sooner, I can always sell the stock.
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