Sold Most of Position in CEUA

Dec.18.07 | About: China Education (CEAI)

Tuesday morning I sold 98% of my position in (CEUA) at $6.30. Having glanced at the SEC filings this morning before the open, I noticed that, not surprisingly, CEUA decided to become the next in line to do a secondary offering sale by insiders. Insiders are selling a sum of shares equal to about 12% of the shares outstanding, which certainly has the potential to drag down the stock price. While I continue to like the business here, I’m up almost 30%, so I have to be conservative in this market and take the gains off the table.