Thursday, October 28, 2010

Bookkeeping: Selling 2/3rds of Rovi (ROVI) Ahead of Earnings

I don't like the "action" in Rovi (ROVI) of late - it has been a non participant in this ever lasting melt up rally for the entire month of October.  Granted it is not a 'fast money' type of stock - it exists in no ETF so computers could care less about it - and the typical person never heard of it.  Which is why I like it on some levels - it generally trades independent of the highly correlated market.   But it does concern me that it is not participating.    With earnings tonight, and a gap down there at $43 I don't want to push my luck - I can't remember a time so many stocks I either own or on my watch lists are jumping 10-15% ... perhaps it happened in 1999.  But eventually these things even out and I am overdue for a blowup on earnings.

I am bring down exposure from about 2.1% to 0.7% so any adverse reaction won't hurt performance too much. In fact, if the stock does not perform post earnings this is a candidate to be ushered out of the portfolio since it has become dead money lately.

Long Rovi in fund; no personal position


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