Friday, July 24, 2009

Review of Recent Cutback Long Positions

As I'm looking through some new names to add to the portfolio on the long side; I am similarly looking at names we cut back via "huge run" reasons or to move to the sideline ahead of earnings. Thought it would be interesting to show how they have done since - some of the moves are having me shake my head (in awe). While my strategy to cut back is cautionary in nature and you want to catch the entire move of every surge, even seeing names I sold mostly out of continue to run tells me I'm picking the right merchandise. And we've been able to compensate very nicely with more index oriented positions...

Keep in mind the market backdrop during this time has been nothing but bull... (take that as you may) ;) and as I repeat continuously it is not a stock pickers market - when we're going up, most everything goes. It's just a matter of degree of return. [pls note - I don't have trailing stops in so in some cases I would of used that in lieu of just cutting back at "market"]

I'll list them in chronological order - this is from 7/13 - Meredith Whitney Day (a week ago Monday) forward; we were looking for a bounce at that point anywhere "up to S&P 910" as we were in the S&P 870s and potentially ready to break down (head and shoulders). Obviously it's been much much more than S&P 910 as 1000 is in sight. With such a run and going into many earnings reports, we've been busy in the transaction area.

(Tue) 7/14: Sold down drybulk shipper Excel Maritime (EXM) @ $7.10 - "profit taking" reasons after 16% 1 day jump

(Fri) 7/17: Sold down private equity firm Blackstone Group (BX) around $10.20 - "profit taking" after a one week run of 25%

(Fri) 7/17: Sold down home builder Meritage Homes (MTH) around $19.00 - "profit taking" after a one week run of 30%

(Mon) 7/20: Sold down Brazilian homebuilder Gafisa (GFA) around $21.30 - "profit taking" after a run of 25% in just over a week (p.s. this one should be a good short "soon" - gap to fill and its gone parabolic!)

(Mon) 7/20: Sold down Chinese video game maker Perfect World (PWRD) in $34.30s - "profit taking" after a run of 20% in just over a week

(Tue) 7/21: Sold down miner BHP Billiton (BHP) just below $59 - "profit taking" in a very gappy chart after a run of about 20% in a week and a half (note -we were short for a very quick run, before being stopped out yesterday - still like it short)

(Tue) 7/21: Sold down Skyworks Solutions (SWKS) just below $11.20 - protection from earnings report (added a small portion back this AM)

(Wed) 7/22: Sold down Riverbed Technology (RVBD) around $24.90 - protection from earnings report


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