PRECISION DEALING?

PD

I nibbled some PD ($50.74) for a trade here. This is such an obvious trade that it’s hard to believe that it would work. Everyone on the street knows that PD will be converted into a trust. The question is: will PD get the usual pop coming with the announcement? You would think that the trust conversion is fully discounted, but I am willing to bet my small position of PD that it will pop for a few points upon announcement. I am only looking at $55 in near term and then I would have to re-evaluate depending on the yield and payout ratio of the newly-minted trust.

Energy has another run and I pretty much miss the boat. The few energy positions I hold had not worked. I made a major mistake for holding internaltional plays, and not domestic majors and it has costed me. Even though I am having a “performance anxiety� here, I will not chase the majors here. I’ll rather wait it out the summer.