Thursday, April 24, 2008

Quick Update

I guess the market has decided to push higher today. I suppose the market also decided that Apple's (AAPL) quarter wasn't so bad after all, as the stock is now pushing $170. If that $170 price tag can hold for the next 3 weeks, I will be able to cash out of the spread for the full payout of +$5.85. Not sure if I will hang on until then... at current prices right now, the spread is worth $6.10 for almost 50% gain (+$1.95). Not too shabby, but as we all know, options move very quickly in response to stock prices.

I added Brookfield Infrastructure Partners (BIP) to the Long-Term portfolio at 17.69. The company was a recent spin-off IPO from Brookfield Asset Management (BAM). I have actually held (and continue to hold) BAM in my retirement accounts for a number of years. BIP has two main lines of business... electricity transmission and timber. For now, the company pays 1.06 in dividends. Here's their roadshow presentation.

Anyway, it's not a large position. The company reports earnings tomorrow, but I don't expect that much reaction either way from it. I'm mostly buying, because I believe the Brookfield management is strong, and I'm trying to diversify my holdings a bit. And, I think the 6% dividend is alright. Not really great, but it's satisfactory.

I guess I should also note that Credit Suisse is neutral on the shares, and has a $20 price target.

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