Long Updates: Opnext, Gymboree and FreightCar America
skepticllc submits:
It’s been a good first few months for the recommendations I have posted, but the entire market has been in a sharp rally mode. Sometimes it’s better to be lucky than good. A brief update on each of the long positions I have outlined is as follows:
- Opnext Inc. (OPXT): Up 24% since 2/4/10
A big part of this gain has come in the past couple of trading days, seemingly in reaction to news about a successful test of their technology, coupled with a similar announcement by Cisco (CSCO). (I believe these were two different tests, but the timing of the announcements on the same day was puzzling.) Volume has been very large on the increase, leading me to believe that people are looking at this as a derivative play on Cisco’s new products. All good news, but I haven’t seen anything about how soon this translates into sales/profits, so I’d look for an exit around $3 when the gap to fair value is closer to the 25%.
Investing, Long Term Investment, stock market | admin March 10, 2010
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