Thursday, April 29, 2010

Bookkeeping: Sold Some Skyworks Solutions (SWKS) Ahead of Earnings Tonight

I usually try to cut position sizes ahead of earnings since I don't like the bipolar reactions that have little to do with how a company is doing, and everything to do with random reactions vs a bunch of analysts numbers thrown against a wall. That said, I have not done it this period simply because (a) I am underweight stocks and (b) stocks only go up ...or sideways, as the Bernanke Forcefield makes it a stock market of almost only winners. Thus far I have been lucky as almost all stocks reporting have either jumped or lost only a little. No big blowups.

However, last Friday I bought some Skyworks Solutions (SWKS) when it fell to the 50 day moving average of $15.50. I think the company will report a good number but thus far reaction to its 2 main peers have been mixed. The stock has done little until today, so I am simply going to sell the portion of the position I added about a week ago (about 40% of my stake) for a quick 4.5% gain (price was right near $16.20) which isn't bad work for 4 days.

As with TriQuint I think the stock is cheap for its growth... I continue to be boggled by the valuations people are placing in some sectors versus others based on ability to grow. Speaking of, I bought a little TriQuint to offset this sale, and keep my exposure to the sector somewhat consistent.

Aside from that, I am betting on black... no red... no black.

Long Skyworks Solutions in fund; no personal position


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