Could not have asked for a better outcome in DragonWave (DRWI). We mentioned late yesterday we were looking for the gap at $12.42 to fill; I placed a limit order for 2.25% exposure at $12.44. The stock fell to $12.37 this AM and is now bouncing back to $12.60.
Our exposure was increased from 1.75% to about 4% on that dip, I am wondering if I should have bought more...
Our cost basis has now increased from just a tad over $11 to $12.10, but since we began the position, the stock has become cheaper based on the earnings beat, and raised guidance. Unlike the bevy of stocks that will be reporting in the next 5 weeks, we already have the earnings roulette out of the way, and now just have to worry about the greater market as a whole rather than individual stock. If the stock makes a new high, we'll probably add more exposure - I still find the stock cheap anywhere below $15.
Author's Disclosure: Long DragonWave in fund and personal account