Happy Monday to all. I hope you had a great weekend. We are looking to get things off on the right foot this week after we had a tough first week of July. On Friday, we closed out three positions. We sold off shares of Alcoa we had picked up on Thursday for a Midterm Trade. We bought in at 10.54 and sold on Friday at 10.91 for a 3.5% gain. The stock is all the way up to over 11 in pre-market this morning, so it will be interesting to see how much higher it can go before the company reports key earnings in after hours. We also had a successful Short Sale of the Day on Friday in PriceSmart Inc. (PSMT). We got involved at 25.35, and we were able to exit at 24.85 for a 2% gain. Our Buy Pick of the Day in Ultrashort Proshares Financials, however, was a dud. We got involved at 21.65, and I took an early exit at 21.33 for a 1.5% loss.
This week is very significant because it is time for earnings. They will really shape the entire market over the next four weeks and whether we have a great rally out of the market’s best week in over a year or do we finally have the financials out of companies to match the doom and gloom of economic reports as of late. We will have to wait and see…
Buy Pick of the Day: Weyerhauser Inc. (WY)
Analysis: Typically when I see a stock is up 7-8% in pre-market, I think short sale. Today, however, that 7-8% could be just the beginning of gains for Weyerhauser Inc. (WY). The company, which is currently a timber and wood producer that manages forestlands for wood products and build homes, is planning a conversion in 2011 to a REIT on their tax forms. The conversion is something the company has been working on for quite some time, but today, the company made one step even closer by announcing that they would be doling out a special dividend to shareholders of $5.6 billion. Yes that
says billion not million. With just over 200 million shares, that is a payout of $26 per share. Rules state that dividends cannot be more than 10% of price, so the company will be handing out share for free to shareholders.
$26 per share, and the stock has jumped just over $2 this…
