GE’s Financial Services

There was definitely a delayed reaction to GE’s news yesterday. Up nearly 10% this morning and quickly approaching $28/share after announcing a $30 billion sale of its real estate portfolio and $50 billion share buyback plan; one of the largest buybacks ever (Apple announced a $50 billion buyback in 2013). I was a little late buying yesterday, but the party was just getting started.

GE Stock April 9 and 10 2015

The last time GE hit $28/share was December 2013 and there hasn’t been significant movement since then. A moment like this is long awaited. Now when is the next increase in dividend payout?

GE stock 2015

Sell: RAD at $8.33

Profit: $114.76
11.5% return    Sold 135 shares of Rite Aid Corp. (RAD) at $8.33/share.

I forgot I put a limit order in to sell RAD. Glad I sold before it dropped by the close of the market today.

RAD_March_2015

It looks like I timed this last jump perfectly. I’ll be back in soon; and possibly with more than $1,000 next time around.

And here’s a look at the S&P; just as a reminder that I’m crazy for having any money in the market right now…

S&P_March_2015

BPT and Gabriel Daoud Jr.

I’ve commenced the Royalty Trust Research tonight and noticed a strange move in the BP Prudhoe Bay Royalty Trust (BPT) today.

Such a strange move, that I’m putting $3,000 in BPT immediately at market open.

This royalty trust dropped 10% today on news that JPMorgan Chase analysts have set a target price of $40/share. But looking at the background of the analyst, Gabriel Daoud Jr., making such a stunningly low valuation reveals he only has a few years experience in Oil & Gas research.

 

Gabriel Daoud Jr

 

I’m amazed how someone with 5 years experience can significantly move the market. I’m also amazed Chase would allow someone with 5 years experience to make market moving reports like this.

I wouldn’t be surprised if there’s more going on behind closed doors…hire someone to make irrational comments on a stock, wait for the swift drop in price, and a more attractive buy-in price is created…or simply make money exercising options as the price drops.

The price movement of BPT is directly correlated with WTI. With oil prices significantly down all week, I see a temporary turnaround the next few days. I’d like to keep at least $2,000 in BPT as part of the long term royalty trust holding strategy I’ll be starting soon.