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For Individuals
Portfolio Management
Investment accounts are held by firms such as Schwab Institutional and TD Ameritrade Institutional. Gabriel Capital does not ever take possession of client investment assets.
Once accounts are in place and client goals and expectations have been established, Gabriel Capital provides complete portfolio management services. This includes: all investment recommendations, placement of investment orders and on-going daily management.
Stocks, no-load & load waived mutual funds, exchange traded funds (ETFs), bonds, options and money market are investments that may be used in building and managing client accounts.
Account Types
- Rollover accounts (401k, 403b, IRA & Roth IRA)
- Taxable accounts (regular brokerage, margin, trusts, custodian, etc.)
- Managed (Independent 3rd party managers)
- SEP IRAs, SIMPLE IRAs and other business retirement accounts
Asset Allocation Reviews
(Ideal for 401(k) Accounts and Variable Annuities)
Maybe you are in a situation where you just need a review of how investments are allocated between stock, bond, and money market exposure. Gabriel Capital can provide this type of review at the time and frequency you select. This type of service is generally performed for an hourly fee.
Monthly Investment Education Topic: Quality is worth it!
Do you just want something to sit on, or a piece of furniture which fits you and was made for you?
I visualize a craftsman, with years of experience working with wood and fine leather. Before the saw or sanding paper are applied to the wood, the careful worker has a lengthy conversation with the buyer.
"How tall are you?" "Let's see how long you are from hip to heel and hip to shoulder". "Do you have back pain?”
After several more questions, as well as determining the requirements for look and finish to fit in with the home it's going into, the craftsman plans out the materials and order of tasks to make the end product a success. It takes a bit longer and costs more, but the buyers end up with a pair of chairs (one for him and one for her) they are thrilled with, which last, look and feel great for a very long time.
Contrast this with the couple who purchases the low quality aluminum chairs at half the price. Who really got the better deal? Your portfolio should be like a fine chair. It fits you, lasts, and provides great satisfaction. Don't settle for a cheap version of what you really need in these challenging times.
The 10% Income Solution: It pays to be patient!
Ely Lilly & Co (LLY) is one of this nation's larger pharmaceutical and health care companies. In addition to the quality assets the company owns and longevity as a going concern through past economic downturns, (LLY) pays a cash dividend of $1.96/share annually.
(LLY) is valued at $33.73 per share as of August 24, 2009. At this price, the dividend equates to a healthy dividend yield of 5.81%. However, there is a way to further increase the income return on this stock.
An owner of (LLY) at today's price could sell a "call option" against the stock. A call option gives someone the right to purchase your stock at a pre-set price through a pre-set date. In exchange for this right, they agree to pay you a price determined by participants in the market.
For this example, the option expiring in January of 2011 will be used, giving someone the right to buy 100 shares of (LLY) at $40.00 per share. Note; this is a 16 month option.
The current price of this option is $1.75 per share as of Monday on the close of business, the 24th of August.
For the person that undertakes selling this option, they will earn a total of $4.16 per share in combined dividend and option income over the next sixteen months. This comes out to 10.0% annualized, or 12.33 for a year and four months. Not too bad in a world where most one year bank CDs are paying 1 or 2%.
In addition, if the buyer of the option purchases the stock from you at the contracted price of $40.00/share, a $6.27/share gain is realized or 18.5%.
If the owner of the option you sold purchases the stock from you, they can't apply the cost of the option towards the purchase of the stock. This means you get the full $4,000.00 for 100 shares (less applicable brokerage commission) plus you keep all of the $4.16 in dividends and option income per share. Now, one more benefit:
Since this investment will generate $416 in total income over the next 16 months, the break-even on (LLY) drops from the purchase price of $33.73 down to $29.57. That is a nice bit of cushion in an asset class that has displayed a great deal of price fluctuation.
While these numbers are all real as of the August 24, 2009, please keep in mind that this discussion in no way reflects a recommendation by Gabriel Capital LLC. Further, the owner of Gabriel Capital, LLC may, from time to time, have an ownership position in securities mentioned.
If (LLY) falls far enough in price, an investor could still lose money on this investment. Results of covered call option writing are not guaranteed and can lose money. This strategy should only be considered for a portion of a person’s overall investment allocation. Please seek the advice of a financial professional before implementing any investment strategies. Your should consult your CPA or tax professional on the likely tax treatment of option income.
Free Analysis
Would you like a complimentary technical analysis of a stock position of interest to you? Gabriel Capital provides one free review to anyone that asks. In the feedback section, please list the name of the stock, its' ticker symbol, your name, address and work number (for verification purposes only, you will not be solicited by phone at work). Within two weeks, you'll receive a complimentary review of the position you've requested. No strings attached.
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