I cut some DragonWave (NASDAQ:DRWI) yesterday as it broke below the 50-day moving average, and the stock continues to look sickly. I am going to dump most of the rest of the position here in the $11.30s and take it down to a 0.1% stake to keep it on the radar. This batch will be at a 9% loss, but entering today I only had about a 0.5% allocation.
The stock is now down 5 sessions in a row - and 8 of the past 9 - while the market has been up for almost all those days. This action might indicate someone "in the know" (a.k.a. the "smartest people in the room") have info I don't have ... perhaps Clearwire (CLWR) contracts are being spread around to new entrants. (Click to enlarge)
That said, someone like Ceragon Networks (NASDAQ:CRNT) - one of DragonWave's competitors - is not doing much either, so we'll see. Either way, the stock action calls for culling the position and watching for now.
Disclosure: Long DragonWave in fund; no personal position