Wednesday, August 13, 2014
Windy Morning At Cape Cod
Woke up to a beautiful sunrise again this morning. Frankly, it may be all we see of the sun today as the weather report is calling for heavy rain. So probably a good thing we spent yesterday at the pool and taking a little harbor cruise.
Yesterday was essentially a flat day for me, which was actually better than the market. I did sell my TTOO to raise $ for adding to MFI on Friday. I sold at $14.10, which was a small loss. I should have been more patient as the stock went up another $1 after I sold it - but that is an attribute of these post IPO stocks. They swing crazily all over the place. Very hard (as an investor) to know when to sell (or buy). Probably another good reason to stay away from these stocks.
A sweetheart on recent MFI lists has been KING, maker of the Candy Crush game. The stock is down about 20% based on poor earnings last night. To me, investing in these one hit wonders of free iphone games is very dangerous. A key element in successful companies is a recurring earnings stream. I believe there is a big difference between ATVI and KING. When Call of Duty comes out with a new version (or Grand Theft Auto), sales skyrocket. That is not true for Candy Crush.
VRTV Part Deux
Yesterday I bemoaned not buying VRTV (the IP spinoff) in early July. Yesterday, it popped another 10% and is now up 35% since I placed on my watch list. I suspect it has gone up way too fast and will pull back, but it is still interesting to watch and gnash my teeth.
CSCO announces earnings after the bell. They went up very nicely (about 10%) post their May earnings release. We will see what happens this time. Recall they are on my short list for my August MFI tranche. Also, I am strongly considering ITRN. They announced earnings on Monday (Ituran Location And Control Ltd. Presents Results For The Second Quarter 2014). I thought they were very, very solid - but oddly they sold off slightly on Tuesday. I suspect there is a good chance I will add on Friday.
Posted by Marsh_Gerda at 7:14 AM