Buy: RAD at $8.82

Purchased 250 shares of Rite Aid Corp. (RAD) at $8.82/share. Total cost: $2,205.

I’m back for more RAD before earnings tomorrow. I’ve made plenty off RAD in the past, so this is a risk I’m willing to take! If there’s a price jump in the morning, I’m cashing this $2,000 out within the first 10 minutes of trading.

I’m holding $5,000 in RAD for long term. I see 2 possible happy futures for RAD: they’re bought by Walgreens/CVS or continue their aggressive growth.

Buy/Sell RAD

Profit: $155.85
3% return    Sold 577 shares of Rite Aid Corp. (RAD) at $8.93/share.

I’ve been sporadically buying share of RAD the past couple months. I put $5,000 in yesterday and sold those shares for the $155 profit today.

I might try trading another $5,000 the day before (or the day of) RAD’s next quarterly earnings.

RAD, GE and SBR are the only thing keeping my current market position above water. LUV and IRWD have taken a turn for the worse and I’m losing nearly $1,000 on each of them. I would have thought the selloff of LUV would be over by now; but the airline bashing hasn’t ended yet. I’ve considered selling half of my shares for a loss, but Southwest Airlines is a great company with strong financials and is currently oversold on all the bad airline ‘price war’ news.

IRWD on the other hand is worrisome. Adding $300M worth of debt in unsecured notes has investors thinking the company is in a crunch for cash. IRWD has drastic swings and I can only hope there will be a rebound so I can finally get my $5,000 out.

RYI: A Lesson in Liquidity

Loss: -$84.67
-1.6% return    Sold 710 shares of Ryerson Holding Corp. (RYI) at $7.13/share.

I realized I’ve been using Conditional Market Orders instead of Limit Orders every trade. I also learned how crazy bid/ask spreads can get on stocks.

RYI_May_08_2015

The price of RYI was at $7.10/share. I set a conditional market order to buy RYI if it moved above $7.11/share; Scottrade bought my shares at $7.2290. The price moved up to $7.25/share. I then set another conditional order to sell if the price moved below $7.24/share. Scottrade sold mine at $7.1297/share.

A ten cent loss translated to a $85 loss and I’ve learned my lesson. The thin volume being traded on Ryerson pushed the bid/ask spread to a 15 cent gap at one point today.

The ScottStocks portfolio gained $500 today, so I took a risk and lost on RYI. I’m taking it easy and not chasing the $85 because there’s a good possibility I’ll lose more.

Sell: BPT at $69.96

Profit: $97.37
2% return    Sold 70 shares of BP Prudhoe Bay Royalty Trust (BPT) at $69.96/share.

I’m taking it easy on BPT and getting out for now; it looks like I’ll be able to buy in at a lower price in a couple weeks. It hurts going from a $500 unrealized profit to nearly breaking even (without the $69 dividend), but WTI is moving this stock quickly downward…again.

BPT_May_7_2015

The price of WTI has gone from $62/barrel to $59 this week. If oil begins moving down again, all my energy stock picks will be hurt: BPT , SBR , NOV , MDR. I’m countering this potential problem with LUV; which is up 3% today.

100th Post Review

To celebrate the 100th ScottStocks blog post, I’d like to share some thoughts on the current state of the economy.

Yellen continues to ZIRP our economy into a happy dream world where bubbles and recessions don’t exist. Occasionally raising rates .01% would have helped the inevatible problem Yellen’s monetary policy will create. I wonder if she’s crazy enough to implement NIRP.

The economic effect of low oil prices is still unclear. The past few months in Houston have seen a depreciation in home values, stemming from decreased demand; which I’m guessing is the result of layoffs in the energy industry.

The fundamental life-force of any country’s economy is derived from the natural resources taken from the Earth. Oil is one of the most important resource we can pull out of the ground. Considering its importance and how 8 out of the top 10 largest companies in the world are Oil and Gas related, I can assume low oil prices will have a negative impact on the economy.

I think the perfect storm could be brewing if oil prices remain low and contribute to an economic slowdown this year. A guaranteed crisis would be created if the Fed raises rates, but I don’t see Yellen taking that action. I can see a rate raise happening as soon as Obama’s term is up.

Buy: IRWD at $14.85

Purchased 340 shares of Ironwood Pharmaceuticals (IRWD) at $14.85/share. Total cost: $5,056.95.

I’ve been watching IRWD closely since the start of the year. As soon as the market opened this morning I bought in…at $0.20 higher than planned. Lost $100 a couple seconds after clicking buy, then down $300 within the hour. But this is how IRWD works (especially when a limit order isn’t used). I’m expecting this extremely volatile stock to hit $15/share tomorrow, then I’m out.
IRWD_April_28_2015

Sell: JNS at $18.52

Profit: $113.07
3.8% return    Sold 167 shares of Janus Capital. (JNS) at $18.52/share.

The JNS risk was worth it. Good earnings and the price jumped more than expected. I planned on selling if it hit $18.20 , a +$.30 cent gain. But it moved on up +$.75 and I got out at +$.60.

JNS_April_23_2015

I’m looking at possibly selling LUV and getting in at a better price point. Currently losing $50 even after steep gains this week.

I also sold BAC today and made an insignificant $3.

 

Lots of Buying Today

Several of my stock picks look like they’re on the upswing, so I bought today…

125 shares of RAD @ $8.08
65 shares of BAC @ $15.66
56 shares of JNS @ $17.71
111 shares of JNS @ $17.91

Janus releases quarterly earnings tomorrow; I’m expecting a good quarter. Gained $70 with today’s new purchases; I plan on selling BAC and JNS within the next week. The rest of the ScottStocks portfolio gained $160 with BPT leading the way.

April_22_2015_stock_picks_RAD_JNS_BAC