BASIC INSTINCT
HRAY
LTON's results were terrible. I am starting to have some concerns about HRAY, which reports tonight. Maybe I should peel some today if it moves up to reduce exposure. I am not too concerned about the upside, it is the downside that I am concerned. I put a limited order to sell half of HRAY at $8.50. That would have been a good trade, unfortunately, the order was not filled. HRAY's results were bad, worse than I expected. My instinct was correct, again execution was terrible. Those limited order costed me a lot of money. I should have sold at market.
Now the question is: what to do with HRAY. Clearly the company failed to grow, margin is contracting, competition is fierce. While the valuation remains compelling, I believe there are two fatal weaknesses: fierce competitive pressure and lack of pricing power. Although HRAY is doing a good job of expanding its businesses, these strategic initiatives will not be fruitful for a few years. In the meantime, we have to deal with the slow growth, contracting margin and reducing earning power. While I am incline to sell this stock, tomorrow probably is not the good time, particularly at opening. Having said that, I believe I probably should peel some tomorrow and leave a small position to close in the future.
MRGE
I think I should take profit on this one as it was a speculative trade and it worked out alright. Do not be too greedy. Same for MRGE. I put a limited order and did not get filled. This one I should close the position as soon as possible as I do not see any catalyst in near term.
LTON's results were terrible. I am starting to have some concerns about HRAY, which reports tonight. Maybe I should peel some today if it moves up to reduce exposure. I am not too concerned about the upside, it is the downside that I am concerned. I put a limited order to sell half of HRAY at $8.50. That would have been a good trade, unfortunately, the order was not filled. HRAY's results were bad, worse than I expected. My instinct was correct, again execution was terrible. Those limited order costed me a lot of money. I should have sold at market.
Now the question is: what to do with HRAY. Clearly the company failed to grow, margin is contracting, competition is fierce. While the valuation remains compelling, I believe there are two fatal weaknesses: fierce competitive pressure and lack of pricing power. Although HRAY is doing a good job of expanding its businesses, these strategic initiatives will not be fruitful for a few years. In the meantime, we have to deal with the slow growth, contracting margin and reducing earning power. While I am incline to sell this stock, tomorrow probably is not the good time, particularly at opening. Having said that, I believe I probably should peel some tomorrow and leave a small position to close in the future.
MRGE
I think I should take profit on this one as it was a speculative trade and it worked out alright. Do not be too greedy. Same for MRGE. I put a limited order and did not get filled. This one I should close the position as soon as possible as I do not see any catalyst in near term.
posted by ZIGZAG at 2/27/2006 09:23:00 AM
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