Stoneridge Inc. (NYSE:SRI) is one of my favorite stocks to trade around. Yesterday I sold about half my position at $12.39. The auto parts maker moves up and down drastically on relatively small news.
I think that the relative illiquidity of this Stoneridge makes move a lot when one or two fund managers decide to move in or out. I usually try to move the opposite direction. My last trade in SRI (this SRI is the New York Stock Exchange ticker and has nothing to do with Socially Responsible Investing - the other kind of SRI) was a buy in March of 2006 at $5.56. The company recently announced good earnings and much better prospects for earnings of $0.38/share for 2007. Analysts put 2008 earnings at $0.61 a share, but that rosy prospect still puts the stock at a p/e of over 20. For now, I'm selling half my position, if nothing else changes I'll probably sell the other half in March when my short term gain turns into a long term gain. I'll risk the stock falling to make up a 20% differential in tax rates.
Disclosures and Confessions: I own Stoneridge Inc. (SRI) and have traded SRI both "buy" and "sell" in the past two years. If prices stay where they are or higher, I am likely to sell more in the next month.
SRI 1-yr chart: