Portfolio TradesMore YHOO and More Johnson and Johnson.

Doubled Positions in Yahoo (YHOO) Buy Write exactly as yesterday (now at 1/3 position)

Added to my position in Johnson and Johnson  (JNJ).  I’m now up to a 2/3 position.  The whole drug sector is still beat up. I think investment managers and small investors are still reeling from buying so much stock at really high valuations over the last few years and afraid to step in again.  At some point they will wake up and drive this sector up.  This stock still has growing earnings and at a forward price earnings ratio of 15.5 JNJ is a bargain.  JNJ also has the lowest dividend of the group at 2.3% (but with a low 37% payout ration JNJ has plenty of room to raise that dividend).  I’m thinking of selling some of my Merck or Pfizer to make room for JNJ but have not done so yet.

Disclosure:  I own Yahoo YHOO with July 32.5 calls written against it.

I own Johnson and Johnson (and other majors drug companies, Bristol Myers (BMY), Pfizer(PFE) and Merck(MRK))

Disclaimer:  Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.