Manutius (< 20)

Journal 27 Oct 09

October 27, 2009 – Comments (0) | RELATED TICKERS: WASH , WCN

News:

1. Bullseye on the HTZ call: they pre-announced this morning a "good" beat with better earnings based on better than expected revenue, and upped their next quarter guidance.  Stock popped up 5% immediately, followed by a sell-off (profit taking I presume) down to about 3.5% and now again rising.  I will be more patient, waiting to see if this is a catalyst for an out-of-favor stock.

2. WCM also announced a postive quarter after market close yesterday: I listened to their conference call and will continue holding, although the beat was not really that strong. It was driven by acquisitions, increased margins, and lower diesel fuel prices, not by organic strength which is "stable at lower levels" (Jim Cramer's opening theme last night.) On the other hand, there was no change in fundamentals.

3. Cashed in my positions in HOC and CEO, both of which seem have ended their runs.  I'm nervous about this market (who isn't) and want to get money off the table.  To the same end I took some of my AMZN profits.

4. Began a position in WASH, my local favorite regional. (I bank there.)  It dropped to 15.94 or so, a good value-based buy for a bank as sound as a rock (and an attractive acquisition) an a high-yielder (5.1%) at this price. I may break my rule and hold this for a long time, as I like the coupon rate and want to be there if it is acquired.  There are some others who must think so as I got involved in a genuine "limit order auction" -- the stock is thinly traded and it is dangerous to enter market orders.