Why I am Closing My Position in KHD Humbolt Wedag
I closed my very small (100 shares remaining) position in Hong Kong
infrastructure play KHD Humbolt Wedag (KHD). The stock is up
around 13% on Monday, reversing some very bad action of late; this allows me to exit
with a very minor loss - about $800. I've never made this a large position and
frankly it's valuation has puzzled me - it could simply be a case of a stock no
one knows about or cares about, but when its not standing in place it's
falling.... despite some very good fundamentals. [Dec
1: New Position in KHD Humbolt Wedag (KHD)]
I've added quite a few
new names to the portfolio the past week, and I'm starting to get "portfolio
creep" (too many names), so this was a logical name to go due to the small
exposure and poor technical action. Again, I am completely perplexed by the
stock action in light of the fundamentals, but I've noticed most of my small cap
stocks have suffered no matter what the fundmentals are as people flee to the
relative safety of large cap (multinationals especially).
When the "real" rally
begins in the stock market, I do expect small caps to rally hard since they've
been beaten so hard, but I don't have any clear indication yet that this is the
"real" rally - but even on Monday I saw some great action in small cap stocks
on my watch lists that have been beaten to a pulp, regardless of industry or
prospects. I still like this company, especially since it gives me exposure to
Eastern European growth. I'd just like the market to like it half as much as
me.
Disclosure: No position
- Terex, IBM: Do We Really Want a Stronger Dollar? »
- DXP Enterprises, Inc. Singular Research's Annual "Best of the Uncovereds" Conference Presentation »
- Potash Corp. Update: Time To Buy? »
- More on Fundamentals and Stock Prices: The Case of Potash Corp. »
- Why Commodities May Be Nearing a Turning Point »
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- ETF Insights: The New Hard Assets Producers ETF
- Why Airline Stocks Are So Often Bad Investments
- The Chinese Oil Problem
- Wildfires, Financial Crises, and Type Conversions in Markets
- The Most Important Fact To Know About Oil Investing
- New Currency ETN from Barclays
- Full list of Editor's Picks »
- Three Reasons the Solar Sell-off May Be in the Early Innings »
- Five Reason Steve Ballmer Thinks Apple's a Buy »
- What's in Store for the Fertilizer Industry? »
- Apple to Reveal Mysterious Product Transition on September 9th »
- Wall Street Breakfast: Must-Know News »
- Wall Street Breakfast: Must-Know News »
- Precious Metals Manipulation: Lawyers Prepare for Battle »
- Why Commodities May Be Nearing a Turning Point »
- Oil: The Inconvenient Truth »
- Sarah Palin: Wall Street's Candidate »
- 2 Top Energy Sector Bets »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- China Natural Gas: Growth Appears Certain
- Can TRW Automotive Escape the Michigan Mess?
- Things Aren't Good - Fast Money Recap (9/4/08)
- ETFs That Help You Sleep Better at Night
- ETF Update: Alternative Energy and the Power Grid
- ETF Update: Healthcare Has a Heartbeat; A Good Time for Muni-Bond ETFs?
- Hansen Natural: Amazing Growth Stock Now Attractive to Value Investors
- MasterCard: Driven by Global Growth
- U-turn: Uranium Begins Recovery Phase
- Guru Picks: Five Blue Chips
- Full list of Long Ideas »
- Short Interest Rising in Tesoro; Shorts Covering Airline Positions
- Harbinger Capital: Cut Short
- Not Much Meat on Pilgrim's Pride's Bones
- Salesforce.com: Demystifying the Force
- Should We Listen to Boone Pickens on Oil?
- Energy Conversion Devices: Ridiculously High Valuation
- Three Reasons the Solar Sell-off May Be in the Early Innings
- Is the Market Rolling Over?
- Solar and Oil, Part Deux
- Financial vs. International ETFs: Which Bear is Grizzlier?
- Full list of Short Ideas »
- Cramer Sees the Light - Cramer's Mad Money (9/4/08)
- Keep Buying Big Brown - Cramer's Lightning Round (9/4/08)
- Don't Buy These Bonds - Cramer's Stop Trading! (9/4/08)
- Loss of Integrity - Cramer's Mad Money Recap (9/3/08)
- Not Off the RIMM - Cramer's Lightning Round (9/3/08)
- Unbelievable Moves - Cramer's Stop Trading! (9/3/08)
- The Rally was the Real Deal - Cramer's Mad Money (9/2/08)
- Crushed Unnecessarily - Cramer's Lightning Round (9/2/08)
- A Chance to Sell - Cramer's Stop Trading! (9/2/08)
- Faith Doesn't Cut It - Cramer's Mad Money (8/29/08)
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »



This article has 5 comments:
r123
r123
r123