I had let go almost our entire AeroVironment position last Thursday on the "Cramer pump" as his followers pile into a stock - we exited most of the position around $36 - I said at the time
I am cutting the vast majority of the position and selling to Cramer nation and taking it down from a 1.0% stake to 0.1% near $36. So as much as I like AVAV I am going to hand off our shares to the Cramer lemmings and then try to get them back lower. In this market, I'm sure it won't take too long.
Today the stock is down near 8% and in the mid $32s so I am slowly going to rebuild the position - the 50 day moving average is at $32 so normally this would be a nice entry point but Cramer nation lemmings made the stock gap up from $30.60s or so - and usually these gaps fill. And there is no reason to be aggressive in this market. But even at this price we are getting back part of our stake for a 10% discount - in under a week. Typical of this casino environment we now live in.
I'm only going to increase the stake from 0.1% to 0.8% today and then put a limit order in the mid $30s range. Downside potential is to the 200 day moving average down at $27, but this has been one of the few stocks to not close below its 200 day moving average during the entire October meltdown - so we want this type of name. Plus that whole government as the customer thing ....
We're adding here in the $32.30s - hoping for a larger purchase about $2 lower ....
Long AeroVironment in fund; no personal position
