CONSOLIDATION? - Week 6 Review
With Friday's selloff, I ended up this week flat. For year todate, I am up by approximately 3.8%.
I have to sold my entire position of EICU this week. While the Q4 results decent, it lowered its 2007 guidance from $0.3 to $0.27. With rather higher valuation as it is, this would not do. The stock has since fallen by approximately 15%. I still like the stock, but multiple has to contract further before I will be interested.
One of my tiny stocks, QST.V, which I bought at 24 cents in early December, went up dramatically this week, on a piece of positive news. When I first took the position, my target is 50 cents in three years. It went through it on a single day with tremendous volume. I was more than happy to feed into it a bit, and sold half my position. Now my cost is negative, I will hold the position and let it run. The jump may attract some attention from institutions, which would not be a bad thing at all.
I also took a small position in SVC.TO on Friday, a small technology play in network equipment. Timing may not be optimal though. There appears to be a lot of institutional interests, judging from volumes in the last few sessions. The company has some competitive advantages and a good market share position, although it is questionable how sustainable when CSCO is right behind it, with its vast resources. Target is $4.0 for the year, and I am willing to let it go a bit earlier.
My view of the market remains cautious, and I would view Friday's sell-off positive. A lot of momentum names have fallen hard (GOOG, AAPL, MA, NYX to name a few). But I believe we need a bit of more from here to make it more attractive. I have a list of names ready, and a fair good cash position. I'll say, "LET THE SELL-OFF BEGINS".
Positions: Long: SVC.TO, QST.V.
I have to sold my entire position of EICU this week. While the Q4 results decent, it lowered its 2007 guidance from $0.3 to $0.27. With rather higher valuation as it is, this would not do. The stock has since fallen by approximately 15%. I still like the stock, but multiple has to contract further before I will be interested.
One of my tiny stocks, QST.V, which I bought at 24 cents in early December, went up dramatically this week, on a piece of positive news. When I first took the position, my target is 50 cents in three years. It went through it on a single day with tremendous volume. I was more than happy to feed into it a bit, and sold half my position. Now my cost is negative, I will hold the position and let it run. The jump may attract some attention from institutions, which would not be a bad thing at all.
I also took a small position in SVC.TO on Friday, a small technology play in network equipment. Timing may not be optimal though. There appears to be a lot of institutional interests, judging from volumes in the last few sessions. The company has some competitive advantages and a good market share position, although it is questionable how sustainable when CSCO is right behind it, with its vast resources. Target is $4.0 for the year, and I am willing to let it go a bit earlier.
My view of the market remains cautious, and I would view Friday's sell-off positive. A lot of momentum names have fallen hard (GOOG, AAPL, MA, NYX to name a few). But I believe we need a bit of more from here to make it more attractive. I have a list of names ready, and a fair good cash position. I'll say, "LET THE SELL-OFF BEGINS".
Positions: Long: SVC.TO, QST.V.
posted by ZIGZAG at 2/10/2007 10:20:00 AM
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