Thursday, June 02, 2005

Portfolio Update

As I said I probably would last night... I've exited EBAY completely. The last chunk of my trading position has been sold off in the 38.50s. Unfortunately, my fill was near the lows of the day thus far. It looks like I may have jumped the gun a bit, as it is now trading 30 cents or so from the intraday lows.

I need to do some serious searching, as there is now a good amount of cash to deploy.

AMAT trading up a dime this morning is not feeling so good. Markets are fairly flat to negative. I certainly believe that the weaker stocks should fall back during these sessions. Increasing my level of worry on the short position, but we're still very much near the entry point, so I am not planning on doing anything with it right now.

In Edit Mode (7:03AM): Just picked up some Dryships (DRYS) below $18 a share. This particular company is in the dry bulk shipping business, and it had an IPO price of $18 not long ago. I have been following the company ever since its debut. I had intended to purchase IPO shares, but missed my small window of opportunity when they delayed final pricing and the window for confirming final IPO participation was shortened. It has some pretty sick profit margins and is priced cheaply in terms of earnings multiples. Any earnings growth acceleration, and it should really command a stronger price to earnings multiplier. In addition to its relatively cheap valuation , it has informed the world of its intention to pay a quarterly dividend of 20 cents. At 80 cents a share, we're looking at a sizeable yield of almost 4.5%. In any case, the position is small. Bottom line is that I'm not looking for a quick trade in DRYS; I'll keep this one in the portfolio until I sense real danger.

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