Effective this morning I will be dropping BP from further consideration for adding to the trading portfolio. This due some additional information about their liability from the Gulf oil spill coming to light. This info did not specify that there would actually be additional liability, just that the legal issues were unsettled. Therefore there remains the threat of any negative news to erode current price and valuation.
Adding to the portfolio will be HTS. I have posted on this security in the past and with the recent news that the economy is not moving forward anytime soon we feel more comfortable with this security going forward. So sometime in the next few days when the price moves in our direction we will take a position in HTS. The dividend payout is strong and since HTS has a majority of it's assets in long term ARM mortgages this should buoy the price and value of the stock.
This leaves us with 21 securities in the portfolio going forward, with 3 of these being dropped by year end, leaving 18 total. Concentration in the trading portfolio is expected in this uncertain market and slowing economy risking addition recessionary trends. I find myself seconding Steve Wynn's comments a day ago about opportunity now.
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