Friday, October 16, 2009

Bookkeeping: Restarting E-House Holdings (EJ) Post Spinoff

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I was busy writing a post and didn't see E-House Holdings (EJ) fall right to support; should of had a limit order waiting there near $20.50. Instead we will pay up a bit here around $21.10 and get the position we sold off earlier in the week back. The position size is similar to what we let go, about a 1.5% allocation and as mentioned earlier today this is a very simple set up from a technical perspective - the 50 day moving average sits below us and we'll stop out a good portion of this position on any break below it.

This actually worked out pretty well for us in terms of lowering our cost basis, but it had nothing to do with strategy - just plain luck in this case.

EJ's spinoff - China Real Estate Information (CRIC) is off to a solid start this morning, up 13% as I type.
  • China Real Estate Information Corp (CRIC) shares started trading at $12.32, up 2.7 percent from the price in its initial public offering, and quickly jumped to $14.19, or up 18.25 percent, in their debut on Nasdaq.
  • The company, a Shanghai-based unit of real estate services company E-House China Holdings Ltd (EJ), raised $216 million in its IPO on Thursday after selling 18 million American depositary shares for $12 each, within the estimated range of $11.80 to $13.80.
  • Shanghai-based China Real Estate operates a database that held information on about 38,200 developments or buildings and 24,200 parcels of land for development in 56 cities in China as of June 30
Long E-House Holdings in fund; no personal position

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