A few weeks ago we talked about the Technical Swing model on Covestor–a model that attempts to take advantage of short-term price swings—and the new positions manager Michael Arold added to the model. This week, Arold added two more.
The first was BanColombia SA (NYSE: CIB), a bank with clients in the U.S., Spain, the Cayman Islands and other areas. The company’s second quarter 2010 financial results showed an increase in net income as well as total liabilities. During the second half of this year, the stock price has been rising relatively steadily. It closed at $43.77 on May 6th, but rose to a closing price of $65.66 on September 2nd. The stock dipped again toward the end of September, closing at $62.43 on September 28th, but has since risen again, closing at $65.71 on October 4th.
Another position that Arold added to the model is BlackRock Inc (NYSE: BLK). The company’s net income increased from $786,000 in 2008 to $875,000 in 2009, but their price to earnings ratio is higher than many of their competitors. Recently, the asset management firm was replaced as manager of The California Public Employees Retirement System—which happens to be the United State’s largest public pension fund, and which has a $1 billion portfolio. On January 4th 2010, BLK closed at $238.58. The price began to decline after that and has had a bumpy year. On September 28th, when it was added to the Technical Swing model, it had a low for the day of $164.79 and has since closed at $170.91 on October 4th, 2010.
