KEEPMYDOLLAR.COM

Jamie Dimon buys 500K of JPM common

admin — Sat, 21 Jul 2012 11:51:06 +0000

According to SEC filings Jamie Dimon just picked up 500K shares of JPMC over the last couple of days. It appears he did this by selling quite a bit of preferred JPMC stock he and his wife had in several trusts.

Is he signaling that JPMC has finally liquidated the entire bad trade and the remaining downside is limited. I find it very interesting that he would sell the safer and less volatile preferred shares and convert them to the common which falls lower in the capital structure. If you look at the JPM price chart it appears to have a trading range of between 30 and 45 over the last two years, since it recovered from the liquidity crisis of 2008. So if the shares return to their pre-trading loss notification price of 45 he is looking at approximately a 30% gain on the common shares. So at the $17 million dollar purchase price he could make $5 million if the price returns to the prior high.

To add to it the stock is now paying a yield of 3.5% at the current price so with his new 500,000 shares he has picked up income of approximately $600K per year while he waits for the price to appreciate.

I do not own any shares of JPM directly.

Looks like JPM is at the low end of valuation.

S&P rolling over

admin — Tue, 26 Jun 2012 04:34:37 +0000

To anyone who hasn’t had a chance to look recently the S&P has rolled over. It appears to have made a double top and broken thru support in early May. After that it dropped down to the 200 day moving average and then bounced off and retraced back up to the 50 day moving average. This rebound stalled at the old support level of 1360 which was also the 61% Fibbonacci retracement level.

Now it appears headed back down to the retest the 200 day moving average. Given what is going on in Europe and everyone reducing their GDP numbers for the US if we break down below the 200 day moving average we will be headed toward the recent low of 1280. If we break thru that we can be headed straight for 1200 on the S&P which is approximately 10% down from here.

1280 is the support level you need to watch for.

Hello world!

admin — Wed, 04 Jan 2012 00:54:03 +0000

Hello world. I had this site up about a year ago, but I received a new job and began traveling and didn’t have time to update it. To make a long story short about a month ago I came back to the US and my old site was hacked and my backup files were gone so I am starting over.

This site is mostly articles about investing and my opinion on what I think is going on in the economy and various markets. Look for more updates soon.