Bookkeeping: Cutting Back Riverbed Technology (RVBD) By a Third

The whole networking sector has been on fire of late, with great runs in Ciena (CIEN) and Blue Coat Systems (BCSI) the past two weeks. Riverbed Technology (RVBD) has also popped here in the past 5 sessions, rising from $43 to $51, or about 19%. So I am going to take some off the table and protect some profits in (what I consider to be) an overextended market.

I had 300 shares, and am selling 100 of those to take Riverbed down to a 0.90% position. As I have stated many times, due to valuation differences I have overweighted Blue Coat Systems (BCSI) and underweight Riverbed Technology (RVBD) while loving the space both participate in; I was buying both names just a few weeks ago.

Now I do expect another great quarter out of Cisco (CSCO) and this could light a fire under this group for yet another run but with 20-35% runs in these names across the board in just a few weeks I don't want to get too greedy so I am pulling some back, and continuing to build cash. I will be happy to buy back any of these positions on any meaningful pullback. Which in theory should happen every so often (do you know that the NASDAQ has not been down for 2 consecutive days in over a month?)

Long Riverbed Technology, Ciena, and Blue Coat Systems in the fund; no personal positions