Thursday, January 04, 2007

Buy TXI Texas Industries

Buy/write TXI Texas Industries
Buy the stock, sell the Feb 70 calls. TXI up on earnings. It is in the cement business (profile). TXI has a market cap of $1.6 billion--a much smaller cap stock than I often buy.

I found the stock when looking through Fidelity's small cap fund's top holdings. Traders can often piggyback on good research by seeing what fund managers are buying or holding. This means someone with a good education and significant time and resources took a close look at the stock and thought it worthy.

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