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.


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…


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.

Sell: GE at $25.84

Profit: $63.69
2.1% return    Sold 120 shares of General Electric (GE) at $25.84/share.

The market has hit another record high and GE moved up significantly today. I grabbed the last dividend while holding 245 shares and now it’s time to take some money out of GE temporarily. The unrealized gain in remaining shares I have are currently at $400.
S&P500 February 2015Oil is up today after hitting near $49/barrel yesterday.
Crude Oil February 25 2015

Sell: RAD at $8.34

Profit: $2,202.67
19% return    Sold 1670 shares of Rite Aid Corp. (RAD) at $8.34/share.


RAD is up 10% this morning after announcing the $2 billion purchase of EnvisionRX, a pharmacy management company. I sold today so I could hold onto the new $2,000 record for the biggest gain on a stock in the ScottStocks portfolio, but I’ll be back in RAD soon. The company is continuing to move forward at a good pace; keeping shareholders happy.

Oil prices are down again today, it’s almost time to buy…

The New Tax: Shared Responsibility Payment

I took it upon myself to sort through the new 1040 requirements for the Affordable Care Act; commonly referred to as Obamacare. Scary, I know.
With Jonathan Gruber stating Congress only passed Obamacare because of its ‘lack of transparency‘, crafty politicians have kept themselves employed by overhauling the healthcare system and further complicating my 1040 filing.

Fortunately, I already have healthcare coverage and simply check the ‘Full-year coverage’ box on line 61 and I’m done. If you’re covered and your accountant is charging $100 extra to check this new healthcare box, find a new accountant!

For those not covered as of January 1, 2014 , there are a ‘few’ exemptions to keep you from making the ‘shared responsibility payment’ for not having healthcare coverage:

  • Your annual health insurance premiums are more than 8% of your household income (so if you make less than ~$22,500/year, you’re probably exempt).
  • You have a gap in coverage for less than 3 consecutive months.
  • Other various reasons you could be exempt: member of Indian Tribe,  member of a religious sect, in prison, you’re on a nice long vacation out of the country, you’re homeless, you don’t pay your electricity/water bill, your wife/husband is violent, your family member recently died, your house burns to the ground or is flooded, you filed bankruptcy recently. You can read the ‘hardship exemptions’ here.


If you’re not exempt, you’re fined. Or in Chief Justice Roberts words, taxed:

“The Affordable Care Act’s requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax. Because the Constitution permits such a tax, it is not our role to forbid it, or to pass upon its wisdom or fairness.”

I’d say it is Roberts’ role to protect taxpayers from scheming politicians. He was the deciding factor in the 5-4 vote to pass Obamacare. So Roberts can be blamed for the thousands of new IRS agents hired to force the Obamacare tax upon us.

The sly politicians aren’t calling it a tax or penalty though; it’s a “shared responsibility payment“. This payment is either a percentage of your income or flat dollar amount, whichever is greater. For each month you aren’t covered, you pay 1/12th of the annual payment. This annual payment is either 1% of your income or $95/per adult and $47.50/per child (with a max payment of $285). If your income is $1,000,000 you don’t pay a $10,000(1%) fine, the payment is capped at the average cost for a healthcare plan, which is ~$150/month. So the max fine for an individual would be ~$1,800.

The IRS has some great examples to show you how to pay your fine/tax/shared responsibility payment

If you want to read more about exemptions, visit the IRS website here.
If you want to read more about calculating your tax/fine, visit this IRS link.

Good luck figuring out the rest of your 1040!