Trade updates

By: ispeculatornew
Date posted: 01.29.2009 (4:00 am) | Write a Comment  (0 Comments)

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Hello everyone,

Today I just wanted to give an update on the current trades and positions:

LONG AAPL (-2,67%): I almost got stopped out of this position (if it had reached -20%) but it is rallying back thanks to strong earnings and seems to have survived the news about Steve Job’s health, which was the major negative in the stock. I’m still confident that AAPL’s strong product base and growing popularity in the world as well as its growing influence and power in the cell phone market will bring great things for the company.

Long BIDU/Short YHOO (8,60%): I had initially closed off half of this trade which was a great thing because the trade started going against me big time for a while with a lot of speculation surrounding Yahoo. Yesterday’s overperformance announcements on YHOO would have hurt except BIDU was rated as a BUY by Bernstein today so it raised more. BIDU is announcing its results February 6th and I’ll be hoping that it can overperform as YHOO had did but also clear up a lot of speculation about the accusations that they have been at the centre of for a few months regarding non-explicit advertisements, especially in the area of pharmaceutical products.

Long GOOG/Short IACI (14,44%): Very happy with how this trade has been going so far, it has been less than a week and it’s 75% done from its target. Interactive is announcing its results very soon and that could be a very interesting day if I still have the position in.

So overall, picks (including closed ones) since I started computing (October 2008) are up 2.79% on average and overperforming the S&P500 by 6.18% so far.

My 2 picks of 2009 so far have averaged about 17% against a flat market.

I am tempted to take a position into Amazon because to me, the stock looks expensive again on a valuation basis but it is a bit risky because AMZN is actually announcing its results in a few hours and you never know what to expect when that happens. They have given indications of very strong results for the 2008 holiday season and so to be certain, I will wait a bit longer to look in more details into their results before taking a new position. Always seems like a gamble to me to take a new position right before earnings announcements. I know some investors love to do it when anticipating results or when there are rumors of under or overperformance, but it’s just not what I’m into. It might happen on Friday but I’ll probably give it more thought over the weekend so we’ll see how that goes.

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