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Itıs
always a good time to sell!
Lighten
up on some profitable positions as we head into the Autumn
months
by
Brain Hicks
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Optimal Robotics (OPMR:NASDAQ)
has gone nuts—pushing to a high of US$47 a share, a
new 52-week high. In July, the company announced it sold
a record 315 U-Scan systems in the second quarter of this
year.
The announcement spurred a massive rally that day—pushing
the stock up US$5 a share on volume of 2 million shares.
The breakout to a new 52-week high is very bullish on a
technical basis.
But the bullish technical development is a prime opportunity
to sell into strength.
Over the years, the stock is up more than 327% in the Taipan
portfolio. I recommend selling into the rally and locking
in the profit. Sell Optimal Robotics at current levels.
Another
FDA Disappointment For Aviron… Another Buying Opportunity
For You?
Perhaps.
I’m writing this on August 8, days after the FDA voted
10-4 to not approve Aviron’s FluMist. The non-approval
decision was based on safety concerns, not efficacy.
The way I read the advisory team’s explanation is that
it doesn’t necessary think FluMist is unsafe. Rather,
Aviron didn’t provide enough evidence that FluMist
isn’t unsafe.
There’s a big difference.
And that might explain why the stock—after the negative
advisory meeting—didn’t sell off that much.
I’ve been in biotechs that have been shot down by the
FDA… and the stock lost 50% to 75% in one day.
 As
I write this, Aviron (AVIR:NASDAQ) is trading at
US$29 a share.
Not bad. Not bad at all.
Now, I’ve always made money on Aviron. In fact, I’ve
played it on several separate occasions.
But I want to sell it.
Taipan
entered Aviron at about US$22 a share. Even after the negative
review by the FDA, we’re still up 32%, which is a blessing.
Don’t
ask any questions—just sell.
But
keep an eye on it. I may re-enter the stock if it pulls
back to levels I feel are compelling.
Three times is the charm, right?
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I have one more stock I want to sell—Sensormatic
(SRM:NYSE).
Taipan
entered Sensormatic in October of 1999 at a price of US$12.50.
I recommended the stock based on very compelling valuations.
In other words, it was cheap as hell.
Well, Tyco International just announced it’s going
to acquire Sensormatic for US$24 a share. This is roughly
92% over our entry price.
But I recommend you sell now. Don’t wait for the buyout.
Take the money and run.
Sometimes a deal will fall through… and the shareholder
is left holding the bag.
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