GOING FOR THE RIDE

REI / MXT / WJX.UN / STX

Sold my REI position this morning, partially to raise some cash, partially due to some concerns of REI’s outlook for the coming quarter. Fundamentally, apparel retail is a tough business with fierce competition, tight margin and inconsistent performance. I also sold MXT as I suspect it might have some earning risk on Thursday. I replaced it with BSX($28.07), which announced a decent result, and raised guidance. The stock is very reasonable valued due to numerous litigation concerns. I think it has some decent momentum and news from here are likely positive in nature (settlement of major litigation), which will provide some catalysts for multiple expansion. My target is $40 within a year.

I also picked some WJX.UN (C$20.65), which currently carries a 10.5% yield. This, I got lucky as it went up pretty hard this morning. I would be happy with the 10.5%. Any extra would be gravy.

Picked some STX ($19.57). I am not too sure about this call. I believe it will meet or beat consensus, but outlook is uncertain. There are some risks on this call. On the other hand, it would had worked thus far in this quarter. I feel a bit of lucky and I guess I don’t mind to speculate a little at this juncture. Keep my figures crossed.

Things don’t look good after market. While earnings meet or exceed the expectations, the market sold off, including STX and MOT, which beat rather handily. Oh well, it could be worse. I could have picked YHOO, or INTC.