Bookkeeping: Closing Last of American Science & Engineering (ASEI)

I am closing the last piece of American Science & Engineering (ASEI) this morning in the mid $57s (0.9% stake). The stock has not participated at all in this rally and remains range bound since the news of a partial termination of a recent order [Feb 23: American Science & Engineering Seeks Partial Termination of Army Order] In a general sense the defense group has lost a lot of luster as the "thesis" seems to be that Obama needs to cut here to help offset all the bills he is running up elsewhere. At least that is the market perception: see AVAV, MANT.

This market is really tough for a person who enjoys fundamentals - many stocks whose earnings have been excellent have been discarded to the side as people chase the next hot thesis. [Feb 10: Selling Some American Science & Engineering on Fantastic Earnings] It's a bit frustrating.

We are going to take a 9% loss on this last batch and frankly on a run up to $60+ the chart is calling for a short from there. Stocks that do not participate in rallies are to be looked at with suspicion. We can see the same story with Research in Motion (RIMM) - completely dead action the past week. Hmmm....

No position