5 Covered Writes: Priceline Our Top Choice
By Sol Palha: "If you want to study the social and political history of modern nations, study hell." Thomas Merton We selected five candidates and from this group, we have selected one as our top pick. A covered write strategy is suggested for our top pick. One can use a similar strategy on any of the other candidates if one finds them to be of interest. If you are unfamiliar with a "covered writes" strategy, see our piece "Benefits of a Covered Writes Strategy."
We like Priceline.com, Inc. (PCLN) for the following reasons:
- It has a five-year return on Investment average of 32%.
- Net income exploded from $489 million in 2009 to 1.47 billion in 2011.
- Cash flow per share is up almost 150% from $10.23 per share in 2009 to $24.52 a share in 2011.
- It sports a great 5 year sales growth rate of 30%.
- A good levered free cash flow