Monday, July 7, 2008

Not exactly inspiring confidence

The markets are modestly positive thus far, on the first day of post-holiday trading. Oil is down about five dollars per barrel, and my oil drillers are mixed. Unfortunately, my tech stocks are underperforming this morning, including Avanex (3.8% of portfolio), which put out an ominous press release. They announced that the CEO has been terminated, and the CFO has resigned. While the true reasons behind the departures are unknown, this type of abrupt development never goes over well, especially in such a skittish environment for equities. So we'll have to wait for more details; I just hope that the upcoming earnings release restores a bit of confidence. Purely by luck, I had sold some Avanex in my latest batch of stock sales to raise cash, but my remaining shares are taking a hit.