Tuesday, January 7, 2014

Cisco Systems (NASDAQ: CSCO), Intel (NASDAQ: INTC): 2 of the Most Undervalued Stocks in the Market Right Now

Many investors follow the Dogs of the Dow, a well-known trading strategy that is intended to buy value stocks. Originally, the Dogs of the Dow strategy consisted of buying the 10 highest yielding stocks in the Dow Jones Industrial Average and rebalancing the portfolio once a year.
Every January, a new list of Dogs would be compiled and changes made to the portfolio to reflect them. Most years, at least some of the stocks remain on the list and turnover is relatively low.
Once the Dogs of the Dow strategy was first published, a number of variations have been developed. One of the variations of the strategy is to buy only the five lowest priced stocks from the list of the 10 highest yielding stocks. This is the approach Amber detailed last month. She suggests using call options to lower the purchase cost and increase the potential gains from the strategy.  (more)

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