Thursday, September 23, 2010

Bookkeeping: Short Plantronics (PLT)

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I have no idea what is so appealing about a company that is essentially a glorified maker of headphones.  But this is completely for technical reasons.  I normally would say "the stock is overextended" ... but that appears to not be an issue anymore.  The new stock market - volume doesn't matter, and massive overbought status does not matter.  No wonder anyone who uses the old rules is bewildered by the action.

Simple game plan here - it either is about to break out over over late July highs.  Or not.  A low risk entry.



Shorting a 2.3% exposure in $33.10s; I'll stop out over $33.70 or so which limits loss to sub 2% (assuming it doesn't rocket up on the traditional Monday morning gap up).  Top risk: Hewlett Packard decides it wants to get into the headphone market and buys it Sunday.  Is there any anti trust function in America anymore or will every tech company be owned by Cisco, HPQ, Apple, Microsoft, IBM, Intel, or Dell by 2012?  I know competition is old fashioned and American corporate oligarchy is "cool" but I'm just asking.

I am going to keep throwing these shorts on one at a time with the belief that one day the stock market can go down again.  I have plenty of room for more eggs on my face.

Short Plantronics in fund; no personal position

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