Monday morning I cut 60% of our Rackspace Hosting (RAX) as the stock was not participating in a rally led by small and mid caps. Today, with the stock still acting as if it's in a bear market I am cutting almost all the rest. Indeed, if I had more long exposure to balance against it, I would be flipping this into a short position. If one of my other short positions stops out, I will probably replace it with RAX as the stock does not want to rally despite massive tail winds from the market.
But for now, with the stock up at $19.20 we are able to sell just 10 cents below where we sold Monday; minor losses here since the position was expanded the previous week just a tad bit higher in price. I will change my mind if the stock can get over $20 and show some life. I am keeping a 0.1% allocation just to keep it on my radar at this point.
Long Rackspace Hosting in fund; no personal position
Wednesday, March 10, 2010
Bookkeeping: Cutting Rackspace Hosting (RAX) to Holding Position
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