Buy: GE at $26.89

Purchased 223 shares of General Electric Company (GE) at $26.89/share. Total cost: $6,004.87

Plenty of good news from the market today: China announced a cut in interest rates and the ECB is expanding its asset purchasing program to support growth. With so much great global government intervention, I felt obligated to buy more GE this morning.

GENov21-2014

I’d like to hold GE in hopes of it hitting $28/share like it did last December. GE’s quarterly dividend is also nice, and should rise to at least 24 cents/share.

The Scottstocks portfolio is still being held down by MDR and RAD. However, it’s looking better than it did 2 months ago…

Today
70%($12,600) in GE. 5% return. $650
17%($3,000) in BAC. 7% return. $200
5%($700) in MDR.   -55% loss. -$900
9%($1,500) in RAD. -27% loss. -$570

2 Months Earlier
42%($6,200) in GE.   4% return. $200
43%($6,300) in BAC. 8% return. $450
6%($900) in MDR.   -46% loss. -$780
9%($1,300) in RAD. -35% loss. -$700

To celebrate yet another record high for the market, here’s a nice article on Bollinger Bands and the S&P500.

McDermott Still Losing Money, but Future Forecast Wins

Estimates for McDermott’s losses this quarter were at -$0.11/share; they performed worse than expected at -$0.14/share. Despite continuing to be losers, the stock closed up +$0.13 today.

McDermott_11-6-2014

 

My reasoning behind this: a bright future for McDermott.

CEO, David Dickson, touted ‘good progress on the turnaround of McDermott‘. He continued the positive outlook commentary with:

“…we are on track to achieve sustainable profitability.”
 

“We believe we are on the right track to deliver shareholder returns and to return McDermott to sustainable, profitable growth.”
 

“…we have improved McDermott’s long-term competitiveness, and we continue to focus on building profitable backlog.”

A growing contract backlog will be a key factor to watch as MDR continues their turnaround strategy. The current backlog sits at $4 billion. 61% of this work being in subsea operations; 39% in offshore operations.

Another factor is how well the McDermott sales team can add new projects to the backlog. There is currently $10.5 billion in bids outstanding. The company is hoping to bid on an additional $12.5 billion in future projects to be awarded in the next five quarters.

I’m eager to see what next quarter’s contract backlog will look like…and also how long the market will keep hitting record highs. Today’s record high is provided by the European Central Bank; they are willing to take more policy action to boost the struggling euro zone.

Current loss on MDR is just under $1,000. Below is a view of MDR after buying in May 2013.

McDermott_2013

Sell: BAC at $15.84

Loss: $56.15 1.8% loss    Sold 187 shares of Bank of America (BAC) at $15.84/share.

I was looking at the amount currently invested in the market and decided it’s best to have less money in this downward trending market; especially after the EU’s outlook and James Bullard’s comment:

“When there is a mismatch between what the central bank is thinking and the market is thinking, that sometimes doesn’t end well, because there can be a surprise later on.”

MDR has continued an unreasonable drop to over -50% in 1 month; putting me at a $1,000 loss. Word on the street is Mcdermott is positioning itself for a strong rise to power again. Looks like I’ll be holding onto MDR for at least another couple years. RAD is also performing terribly; currently at a $800 loss.

The next pull out of the market will be $3,000 from GE sometime soon.

Buy: GE at $25.20

Purchased 120 shares of General Electric Company (GE) at $25.20/share. Total cost: $3,030.51

GE hit $28/share last December ($500 gain)…it hasn’t gone anywhere since then (lingering at a $200 gain).

GE-stock-december-review

I should have tried trading the GE ups and downs all year; hopefully today’s entry will help the ScottStocks portfolio.

The currents weights on individual stocks in the portfolio are keeping things looking a little brighter. Rite Aid and Mcdermott are performing horribly; bringing my total loss to $1,000.

42%($6,200) in GE.   4% return. $200
43%($6,300) in BAC. 8% return. $450
6%($900) in MDR.   -46% loss. -$780
9%($1,300) in RAD. -35% loss. -$700

Fed News Moves the Market…Again

As I occasionally glanced at the market throughout the day, I was surprised to see the ScottStocks portfolio rising significantly. First up $100, then within the hour rising further to $200. After a 2% gain during the day, I finally checked the finance news for the day. Ah yes, the Feds have once again reassured us they will maintain the ~0% interest rate policy.
fedlowrateTomorrow will be interesting to watch as Rite Aid announces quarterly earnings. I plan on buying more shares the first minute the market opens if they beat analyst’s EPS estimate of $0.06.

I’ve been using Estimize to watch earnings dates and estimates, but I also came across WhisperNumber.com today; another good source for earnings estimates .

Buy: BAC at $16.07

Purchased 187 shares of Bank of America (BAC) at $16.07/share. Total cost: $3,011.72.

Putting more in Bank of America after their $16.65 billion mortgage settlement with state and federal agencies. With the final numbers determined for fines/penalties, analysts can put aside the outstanding lawsuits and properly value the company. This valuation clarity should bring investors back in to BAC.

 

Buy: RAD at $5.97

Purchased 330 shares of Rite Aid Corp. (RAD) at $5.97/share. Total cost: $1,979.51.

Walgreens announces their acquisition of pharmacy chain Alliance Boots, and RAD drops 6%. I don’t see the acquisition directly hurting Rite Aid anytime soon, so I’m putting a little more in RAD after this unreasonable 6% nosedive.

Sell: JNS at $12.55

Loss: -$19.17
-.009% return    Sold 160 shares of Janus Capital. (JNS) at $12.55/share.

Half a year of holding JNS and it goes nowhere. Although, it did pay a couple dividends ($11.20 and $12.80) that almost made it worth holding onto.

For a future dividend paying stock, I’m watching Invesco; a stock in my price range with a nice 50 cent quarterly dividend.