Bookkeeping: Closing WuXi PharamTech (WX)

I continue to like WuXi PharmaTech (WX) for the long run but for now the American (and Irish) companies in the contract research organization area seem to have the money flow [Aug 13: Creating a CRO Basket], and WuXi seems to exist in a parallel universe. Chinese stocks at this moment trade as if the country is growing slower than the U.S. rather than facing the "threat" of growth slowing from 12% down to 8%. We only had 50 shares remaining and with the # of names in the portfolio creeping up, I'm looking at some of the smaller names to cut out.

We've held WuXi since November 5th, 2007 and we are exiting with a $3700 loss. Considering the horrid performance of the stock since then, that is an acceptable result. Frankly the chart screams "short" for quarter after quarter. At some point this will reverse, and I do believe we'll be back to this name in the future, but it appears unless you have strong institutional money flow in your stock you are simply dead in the water in this market. WuXi does not have that at this time, so it's simply marking time. One of these earnings reports in the future I see it catching fire but I've been waiting 3/4 of a year for the market to catch on - no luck thus far. As I said above, we have a number of other names in the space to give us the same exposure.

[Aug 14: WuXi PharmaTech Earnings]
[Jul 15: Warburg Pincus Takes 5%+ Stake in WuXi PharmaTech]
[May 28: WuXi PharmaTech with Another Solid Quarter]
[Mar 12: WuXi PharmaTech - Very Good Earnings]
[Nov 5: Two New Foreign Positions Added Today]

No position