Monday, March 24, 2008

Bookkeeping: Exiting KHD Humbolt Wedag (KHD)

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I am closing my very small (100 shares remaining) position in Hong Kong infrastructure play KHD Humbolt Wedag (KHD). The stock is up around 13% today, reversing some very bad action of late; this allows me to exit with a very minor loss - about $800. I've never made this a large position and frankly it's valuation has puzzled me - it could simply be a case of a stock no one knows about or cares about, but when its not standing in place it's falling.... despite some very good fundamentals. [Dec 1: New Position in KHD Humbolt Wedag (KHD)]

I've added quite a few new names to the portfolio the past week, and I'm starting to get "portfolio creep" (too many names), so this was a logical name to go due to the small exposure and poor technical action. Again, I am completely perplexed by the stock action in light of the fundamentals, but I've noticed most of my small cap stocks have suffered no matter what the fundmentals are as people flee to the relative safety of large cap (multinationals especially). When the "real" rally begins in the stock market, I do expect small caps to rally hard since they've been beaten so hard, but I don't have any clear indication yet that this is the "real" rally - but even today I am seeing some great action in small cap stocks on my watch lists that have been beaten to a pulp, regardless of industry or prospects. I still like this company, especially since it gives me exposure to Eastern European growth. I'd just like the market to like it half as much as me.

No position

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