I cannot find any specific news on Dr. Reddy's Laboratories (RDY) and it was not down a material amount in India overnight, so I am not sure why it is being hit so hard in the U.S. Whatever the case, the past 2 sessions it has weakened considerably and if it closes where it is as I type, it will have broken the 50 day moving average on a closing basis for the first time since mid May. That is always a concern and the general policy when this happens is reduce exposure and then watch what it does next. Hence I am going to shoot first and ask questions fourth and cut the position back by 2/3rds and wait to see if the stock can regain its footing. (I lost under 2% on these shares - but gave up some nice unrealized gains) If the name continues to struggle in the coming week or two I'll most likely close out the remaining position; if it can quickly regain its footing I'll get back the portion I just sold at higher (but "safer") prices.
Long Dr. Reddy's Laboratories in fund; no personal position
Wednesday, July 21, 2010
Bookkeeping: Cutting Dr. Reddy's Laboratories by 2/3rds as Chart Weakens
Posted by
Mark
at
1:39 PM
Bookkeeping: Cutting Dr. Reddy's Laboratories by 2/3rds as Chart Weakens
2010-07-21T13:39:00-04:00
Mark
Dr Reddy's Laboratories|
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Labels: Dr Reddy's Laboratories
Bookkeeping: Cutting Dr. Reddy's Laboratories by 2/3rds as Chart Weakens
2010-07-21T13:39:00-04:00
Mark
Dr Reddy's Laboratories|
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