Thursday, May 22, 2008

Momentum cuts both ways

First Marblehead (0.3% of portfolio) is up huge today off an upgrade from FBR, who have been negative on the stock for a while. This is simply because very negative scenarios for the company are already priced into the stock. In contrast, Mass Megawatts Wind Power (1.1% of portfolio) continues to sell off, and is down sharply at midday. As I mentioned earlier this week, I sold into the momentum spike, anticipating such a selloff. I'll keep a close eye on the stock to decide when I might want to add that part of the position back.

In other news, there was another press release from NutraCea (2.1% of portfolio) today. As I've stated many times in the past, investors are now completely numb to such seemingly positive developments. It's now all about proven revenue growth and profitability; any items which don't clearly support either of those are met with indifference. In contrast, True Religion (calls 4.2% of portfolio) is nicely profitable, despite the weakening economy and consumer. It is up nicely today, with another announcement of a store opening, the second such release this week.