Trade: Raytheon (RTN), BP PLC (BP)
On Monday, I closed out my position on Raytheon at a price of $169.50 as I mentioned looking to do in my earnings recap, here. This close out may have been a bit premature, given the stock is another $6 higher than my sell point, but there was no way knowing that and I wanted to close out the position quickly to avoid any further losses, given the truly sad outlook the company provided for 2019.
In an effort to put money back to work that I have collected from my sales, I have purchased a 25% position in BP PLC, an oil stock yielding over 6% at the time of purchase. I've been wanting to buy this stock for a little while now, but with earnings so close, I decided it best to wait, plus I wanted to get rid of something before I added more. As a result, BP posted impressive numbers on Tuesday morning and the stock took off. My purchase price was $42.75 and while I'd like to get the stock priced more at $40, I'm not sure that will be possible any more without a significant down turn in oil prices. The stock is up more today and I may have to look into paying up for a stock I predict will be moving into the mid-50s in the course of the next 12-18 months (approximately 25-30% upside potential). I will try to be careful about doing that, but when earnings impress as much as it has, it may be inevitable, as the transformation the company is making appears to be doing better than expected and people have been excessively cautious about this stock for some time now. Should the stock pause or go stagnant, it's high yield allows me to sit back and be paid a pretty solid amount while I wait. Analysts are starting to upgrade the stock and as such we'll see some jumps over the next day or two. Whether the stock stays at those levels or comes back down afterwards will be what is in question.
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
In an effort to put money back to work that I have collected from my sales, I have purchased a 25% position in BP PLC, an oil stock yielding over 6% at the time of purchase. I've been wanting to buy this stock for a little while now, but with earnings so close, I decided it best to wait, plus I wanted to get rid of something before I added more. As a result, BP posted impressive numbers on Tuesday morning and the stock took off. My purchase price was $42.75 and while I'd like to get the stock priced more at $40, I'm not sure that will be possible any more without a significant down turn in oil prices. The stock is up more today and I may have to look into paying up for a stock I predict will be moving into the mid-50s in the course of the next 12-18 months (approximately 25-30% upside potential). I will try to be careful about doing that, but when earnings impress as much as it has, it may be inevitable, as the transformation the company is making appears to be doing better than expected and people have been excessively cautious about this stock for some time now. Should the stock pause or go stagnant, it's high yield allows me to sit back and be paid a pretty solid amount while I wait. Analysts are starting to upgrade the stock and as such we'll see some jumps over the next day or two. Whether the stock stays at those levels or comes back down afterwards will be what is in question.
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
Nothing on this site should be taken as advice, research, or an invitation to buy or sell any securities. All views expressed are solely of my own and I am not a professional money manager. Please consult with your financial adviser before taking any action in your own portfolio.
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