With the caveat that is has been "wrong" to sell any stock, I am going to sell almost all Ctrip.com (CTRP) simply because our position size is not huge - less than 1%. After a stellar earnings report at the beginning of November, the stock gapped up... ran, and then came back to fill its "gap". This is where we began a position on the 19th, in the upper $66s... we were hoping it would fall even farther so we could build a bigger stake but in this market - you have to chase everything. So we decided to at least have some skin in the game.
The chart looked like this at that point...
Since then it's been a Chinese stock party, and the chart looks like this now; up 8 of the past 9 sessions (since we bought)
I've been trying to "not" take profits in things since selling anything has been a fools game, but my instincts kick in here at $78 as a 16%+ gain is offered in 2 weeks (that annualizes to >400% return). Good enough. I am exiting almost the entire stake with hopes to buy it back on a pullback to the low $70s or below.
Long Ctrip.com in fund; no personal position
Thursday, December 3, 2009
Bookkeeping: Locking in Profits in Ctrip.com (CTRP)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows