Friday, November 10, 2006

Quick Trade Update

Just for fun, I'm in on a piece of NVDIA (NVDA) at 34.75. Their earnings were good and they are trading lower today after spiking up in the afterhours yesterday. Part of this might have to do with some cautious comments and a downgrade by a smaller firm (Stifel). ThinkEquity also had negative things to say about NVDA. This is balanced out by positive comments coming from CIBC and Thomas Weisel. Maybe part of this sell-off could be due to profit-taking after a heated run-up. And, then again, there's always the chance that I don't know what I've gotten myself into. Hah.

Anyway, this is mostly a fun trade following a decent night of poker. So, I will probably go ahead and close this trade out before the day is over. Also, wanted to note that some analysts believe NVDA is eating AMD's lunch (recall that AMD bought ATI Technologies), which isn't too good for my current AMD trading position.

*** Edit #1 ***

Well, since I decided not to go back to bed right away I might as well give some quick updates on the Long-Term Portfolio holdings.

First Marblehead (FMD) declared a 3 for 2 stock split. Doesn't really mean too much to me other than a potential blip (stock split effect). For companies with small floats, stock splits do matter in the sense that it improves trading liquidity. Sometimes that's an issue for larger firms to get into a stock. For companies like FMD, stock split really doesn't mean much. Along with the stock-split announcement, they also announced a 20% increase in the dividend. Previous quarterly dividend was 0.15, and the new dividend on a post-split share basis is 0.12. Good stuff.

Kongzhong (KONG) was downgraded by Susquehanna from Positive to Neutral. They believe that the recent better than expected earnings was due to overly conservative guidance, and not any true improvement in the fundamentals of the company.

*** Edit #2 ***

Took the loss on the NVDA daytrade at 34.20. Smallish position so the 1.6% loss isn't horrible. But, it probably means I won't eat anything too nice for lunch today... did somebody say McDonald's?

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