Horrible Day

Worst day in almost 2 months (June 22nd), down about 4.6%. It was a bad day to start with and then I had CHCG and CDII report sub-par earnings (China Direct Industries Reports Financial Results for the Second Quarter of 2009) and (China 3C Group Reports Second Quarter 2009 Financial Results). CDII said "The overall environment remains challenging in our two core business segments of magnesium and basic materials. Magnesium demand remained particularly weak in the second quarter of 2009 with further erosion in prices as end market usage in the automobile, steel and aluminum alloying industries remained anemic. "

Anemic. Now there is a word you don't want in association with the industry your stock is involved in. CDII ended up down 11%. Then CHCG said the following: "Net sales for the second quarter of 2009 decreased 34.9% to $51.1 million compared to $78.5 million for the same period of the prior year. Lower sales were a result of various factors, including a general slowdown in the retail markets, weaker demand for consumer and business electronics due to weakened global financial conditions, as well as the pressure of increased competition within the markets in which the Company operates"

Great, they have lots of problems to tackle, not just one. On the day, down 26%. Then UTA was also down more than 10% as well, as anything associated with China was generally trashed. In fact everyone this weekend was ashing China from Jubak (China's recovery: Is it for real?) to Barrons (Smell the Tar, See the Feathers ).

I did add SEPR and BKE mid-day at lower prices. We'll see how it works out. At least I had the fortune to sell RST back in May (Rosetta Stone Falls on Lower Full-Year Guidance) which did not have a good day