Our Long-Term, Investing For Increased Yield Strategy: Part 2

Our Long-Term, Investing For Increased Yield Strategy: Part 2
News from Seeking Alpha:

Back to Part 1

By Timour Chayipov and Mark Bern, CPA CFA

This article will conclude our detailed explanation of the strategy to remove a portion of an initial investment in an equity position systematically each year until the full amount has been recovered and re-invested. This process will increase the overall yield of your portfolio over time. This is a long-term strategy to increase yield for retirement. But, it can also be used to increase current yield as well.

In Part 1, we bought 100 shares of Cummins Incorporated (CMI) at the market price at the time (Friday, July 6, 2012 market close) for $ 96.29. We also sold one CMI January 2014 put option contract with a strike price of $ 85 to collect a premium of $ 14.10 per share ($ 1,410 less commissions). We secure the put position by keeping $ 4,250 in cash or cash equivalent funds in our margin account. Next, we sold a January call option with a strike price of $ 115 to collect a premium of $ 10.10 per share ($ 1,010 less commissions). We have collected $ 2,420 in premiums to r…………… continues on Seeking Alpha

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Frost & Sullivan Identifies ICT Solutions that Accelerate Smart Meter Return …
News from Virtual-Strategy Magazine:

LONDON, July 16, 2012 /PRNewswire/ — Most energy companies have not yet had the vision to monetise their smart meter investments, finds a recent Frost & Sullivan study. They focus more on meeting deployment timelines and do not have a strategic approach to leverage the revenue potential from smart meters in households. Straightforward solutions involving Information & Communication Technology (ICT) – introducing a user friendly web portal or exploiting the popularity of smart phones – are easy ways for energy companies to engage customers and optimise smart meter deployments.

Frost & Sullivan will hold a web conference entitled “Monetising Smart Meter Investments” on Thursday, 26 July 2012, at 14.00 BST. Senior Industry Analyst, Yiru Zhong, will discuss energy companies’ pain points on smart meter deployments as well as ICT solutions that can accelerate the Return on Investment (ROI) from smart meters.

From a retailing perspective, a smart meter allows the energy company to be more innovative in tariffing and enables customer interaction opportunities. However, innovative tariff strategies require more specialised ICT solutions such as future proof billing systems. Wider adoption of ICT that adds intelligence to the elec…………… continues on Virtual-Strategy Magazine

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