Blackstone Is Volatile but Suits Our Strategy

I am going to take a second round of profits out of Blackstone Group (BX) in under a week - we had layered in new buys a week ago Friday (in the $13.40s), which were quickly capitalized on last Thursday (in the $14.80s). Now we have had another gap up on Monday's news that the company is looking to do 8 IPOs. I'm going to reduce the position by half and take it down below a 1% allocation with a sale just about at $16.

A contrarian may ask why Steve Schwarzman is so eager to dump so much equity on the market with the economy turning up roses and blue skies ahead as far as the eye can see? (ahem) But for our purposes, I am just keeping it simple - not 1 but 2 gaps in the chart as of Monday. We'll look to reacquire exposure on a nice dip, just as we did about 10 days ago. The volatility in this name suits our "core" and "trading" positions strategy perfectly. Rinse. Wash. Repeat.

*please note - pure momentum traders are buyers of this chart.... not sellers.

Long Blackstone Group in fund; no personal position

Comments

[Alan Young:]

I missed a limit-bid entry on the gap, but I sure wouldn't sell this chart. Look at this week's breakout in the context of the year-long cup-with-handle pattern. Definitely a buy; just a question of finding the entry point.

Oct 14 11:24 AM

[TraderMark:]

you can't sell anything nowadays ;)

selling is unAmerican and you lose by the next morning as stocks go up their traditional 1% hah.


On Oct 14 11:24 AM Alan Young wrote:

> I missed a limit-bid entry on the gap, but I sure wouldn't sell this
> chart. Look at this week's breakout in the context of the year-long
> cup-with-handle pattern. Definitely a buy; just a question of finding
> the entry point.

Oct 14 04:39 PM

[MrBuzz:]

Blackstone is doing things according to Steve's plan. The dividend is good for better than fair return. And the potential upside is still there. Not sure I would sell right yet. But, I am an individual and not pro investor. PS I do miss Pete Peterson as Sr Chairman and guidance dept.

Oct 14 11:01 PM

[Deborah W:]

Blackstone wins dismissal this time. I wonder about a possible blowback around the bend.
www.reuters.com/articl...

Oct 14 11:48 PM

[Deborah W:]

Blackstone has a hell of a legal paper trail
Blackstone Offshore Capital Partners II L.P., a Cayman Islands

www.usdoj.gov/atr/case...

Oct 15 12:24 AM

[TraderMark:]

Pete Peterson seems to have a higher calling. The work he is doing now is a lot more important to the country than PE.


On Oct 14 11:01 PM MrBuzz wrote:

> Blackstone is doing things according to Steve's plan. The dividend
> is good for better than fair return. And the potential upside is
> still there. Not sure I would sell right yet. But, I am an individual
> and not pro investor. PS I do miss Pete Peterson as Sr Chairman
> and guidance dept.

Oct 15 11:48 AM