I cut some DragonWave (DRWI) yesterday as it broke below the 50 day moving average, and the stock continues to look sickly. I am going to dump most of the rest of the position here in the $11.30s and take it down to a 0.1% stake to keep it on the radar. This batch will be at a 9% loss, but entering today I only had about a 0.5% allocation. The stock is now down 5 sessions in a row, and 8 of the past 9 - while the market has been up for almost all those days. This action might indicate someone "in the know" (aka the "smartest people in the room") have info I don't have ... perhaps Clearwire contracts are being spread around to new entrants.
That said, someone like Ceragon Networks (CRNT) - one of DragonWave's competitors is not doing much either so we'll see. Either way, the stock action calls for culling the position and watching for now.
Long DragonWave in fund; no personal position
Wednesday, March 3, 2010
Bookkeeping: Cutting Back DragonWave (DRWI)
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