I had an outstanding
Perfect World (PWRD) buy order at "the gap" in the chart ($27) which executed this morning, so I've locked in about a 2.2% position to begin with. That said, obviously the market is at danger of a larger correction and former high fliers won't be immune. But in the larger scope of things we have a sub 30% long exposure with core individual holdings so I'm ok with taking a flier here on a company I like fundamentally which was in the mid $30s not 2 weeks ago. That said, buying a pullback like this is best done in upward trending markets, not what we are in so this one could go badly.
I will place a stop loss below $24 (50 day moving average) - if it breaks below that, it could swoon much farther.
[
Jun 19, 2009: Perfect World Raises Guidance]
[
Nov 10, 2008: Earnings for Perfect World Solid]
[
Oct 15, 2008: Perfect World Announces Share Buyback Program]
[
Aug 18, 2008: Perfect World Earnings Mostly Inline]
[
May 20, 2008: Motley Fool on Chinese Gaming]
Long Perfect World in fund; no personal position
