The markets bounce this morning and near the DJIA 12k pivot point once again. We’ve got some nice gains in the portfolio today and let’s run through a few of the positions that are moving with the most magnitude –
VC – I’ve been steadily adding to Visteon and got more aggressive about buying it as noted throughout this week. That decision is being nicely rewarded today, as the stock rallies 4% and we’re seeing nice profits there now. I’m looking for more than a double or so on this name over the next two years as auto sales revert towards their mean after 2008/2009’s collapse.
Ciena – Still not stabilized. I’ve said that I don’t want to add to this now very small position until we see this stock stabilize and even turn up a little bit. Today it’s down another 2% and while it is starting to get very tempting considering that the company should earn much more than a $1 next year (current analyst estimates are at 89 cents for next year) if the company can attain what those same anlysts expect should be 15% topline growth. We are going to maintain our discipline and not add to this one just yet though. You know I’ll let you know when I do pull the trigger.
Celestica – This stock has traded terribly of late and I’ve been scaling into some common on this one as it’s given us the opportunity to do so down here again. I’m likely to look at some longer-dated, out-of-the-money calls in this one while it’s below $9 and I’ll let you know which ones I pick up when I do so.
LPS – This stock’s within a couple of dimes of its 52-week lows and as I’ve said repeatedly about this, my largest short and biggest put position with huge gains in it already, I’d make it even larger on rallies. That said, this thing can’t find a bid it for weeks and the bad news here just keeps flowing. Stay tuned for more LPS debacle links from me later.
Back in a bit, let’s make some money out there.