Bookkeeping: Cut Back on Ciena (CIEN)

Ciena (CIEN) remains one of my favorite names, and once it clears resistance I am going to pile back in. But for now I am cutting the stake here on the spike up in price. Talk about a stock being range bound... after tremendous earnings the stock has been listless. No major drops, no major pops. For earlier commentary on Ciena click here.

I believe with the convertible debt overhang (strike price $38.15) major institutions are shorting the common vs their holdings. Until they let up, the stock is not budging. So I am cutting the stake for now from 5.7% to 3.4%. This still makes it the 4th largest holding in the fund.

When the stock finally breaks clear and these institutions take off their shorts, we can go up. Until then, they control this stock. At this point, it's going to take a move near to $40 to convince me they let up... but Ciena is a $45-$50 stock today - if not for the convertible. Once it makes it's move I plan to be in, in even larger scale than I was of late.

Long Ciena in fund; no personal positions