Thursday, April 23, 2009

Bookkeeping: Cutting Back Myriad Genetics (MYGN)

Strange action in Myriad Genetics (MYGN) - I am conflicted over what to do here. The cynic in me says with the company reporting earnings the first week of May, with 3 days in a row of huge volume and terrible price action someone with inside information is getting out. (not that this ever happens on Wall Street). On the plus side, a gap from early February just got filled today (they almost always do eventually!)... and if this were not within a week and a half of earnings I'd actually be interesting in buying on that gap fill.

But with such high volume out of the blue... and knowing how Wall Street works with the asleep at the wheel SEC - this level of drop on this much volume has me going the 'better safe than sorry' route especially with such an expensive stock. So I'm going to reduce the position from a 1.6% stake to 0.6% with a sale here in the $37.30 range. If I'm wrong, all we lost was some opportunity at profit - with a forward PE >40 and a chart "talking" like this, I will err on the side of caution. Capital preservation is job 1 even as Kool Aid and green shoots surround us. Still a bear market.

Once again this shows you how quickly stocks fall, versus go up... we just erased nearly 3 months of work for the bulls in ... 3 sessions. Buy and hold? Yeh right.

Long Myriad Genetics in fund; no personal position

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