Changing Fix Income Mix

Opened Santander 10.5% preferred (Yahoo! ticker SAN-PE, Google SAN-E) today. It's a replacement for PowerShares Financial Preferred Portfolio ETF (PGF). Moving to higher risk / higher reward.

Disclosure: I am long PGF.

Additional disclosure: I am long SAN-PE. Positions can change any time.

Playing Applied Materials

Yesterday Jim Cramer offered a new breakout play: Applied Materials (AMAT). He said to buy it after company reports on Thursday, if stock drops.

I decided to buy now. I don't know how earning report is going to play out. If stock drops, I might add to position. If not, well, I have it already.

Of course, I did my own homework. Company looks solid. Future P/E around 14. There is a new cycle in semiconductors, companies are switching to 22 nm chips, and AMAT is the biggest equipment supplier. Which means that there isn't much chance of serious downside (except for unforeseen or unreported events). But in case of a break up profit may be significant.

Disclosure: I am long AMAT.

Additional disclosure: Positions can change any time.

Taking Profit In DSW

Took some profits in DSW Inc (DSW) today. For one simple reason: stock trades in range between earnings (usually) and current range is between 64 and 68. I don't know the reason for a jump today (intraday high 68.80), and I don't care. Of course, I don't know the future (nobody does), so I sold only part of my position.

Will buy back under 64.

Disclosure: I am long DSW.

Additional disclosure: Positions can change any time.