Bookkeeping: Closing Best Buy (BBY) Ahead of Earnings

I see Best Buy (BBY) is reporting earnings tomorrow, so I am going to close my position ahead of this news. Best Buy is not the typical stock I own in the fund, but I leave 10% of the portfolio open to more catalyst type of trades as opposed to secular growth sectors.

My call in Best Buy was actually very good, and timing of the buy in late November was excellent as the stock immediately broke out and made a great run, but I did not horde enough profits when the stock spiked, so now instead of a bigger gain will go home with about a 3.5% gain. Good enough, and I will sell the remaining 225 shares around $50.50s and sit on the sideline awaiting earnings. I had sold Best Buy down to a 0.95% type of position by locking in some gains earlier at a higher price. In hindsight of course I would of liked to lighten up more in the $53s, but truth be told the stock took off right after I bought and I never got the opportunity to build the position up to a level I wanted in terms of scale.

I still think consumer electronics is the place to be for Christmas, but with the market so weak and an earnings report ahead I don't really need to take the risk. The stock has support at $49 but if they breathe the wrong word in guidance the stock could break that easily - hence the risk/reward is not tilted my way at this time....

No position