Wednesday, February 18, 2009

Small positives and bigger disappointments

Several of my portfolio companies have been the subject of upbeat news. These include Alvarion (3.4% of portfolio), which announced another WiMAX deal this morning, and Potash (8.5% of portfolio) which made positive comments on gross margins. On the downside, LDK Solar (common 2.3% of portfolio, calls 0.1%) lowered expectations even further, as an inventory write-off will swing the company to a loss. The stock is selling off in after-hours trading, which is disappointing since I recently added to my modest position in the stock. Such disappointments are to be expected, as we are entering a frightening new phase of the economic (and therefore profits) downturn.