Thursday, July 24, 2008

Bookkeeping: Cutting Baidu.com (BIDU) on Gap Up

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After so much hemorrhaging the past week and a half I am going to take profits when offered and with Baidu.com (BIDU) up nearly 17% I am going to cut most of the position and wait for a pullback. If no pullback, that is fine - I am harvesting cash as I wait out this worst of breed rally. If you haven't noticed this is not a buy and hold market... that said, stocks that have gapped up like this have a tendency to run, but in terms of portfolio management and desire to raise cash until I can figure out this "new paradigm" of selling stocks that beat earnings and buying stocks that miss, I am culling winners. Any market led by junk is not a market I trust.

Selling in the $337s and bringing Baidu.com down from 0.7% stake to 0.1% stake. If we are fortunate to get that gap filled around $300, which is 11% down from here, we'll get this stake back.

[Baidu.com, Amazon.com - Party Like It's 1999?]

Long Baidu.com in fund; no personal position


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