September, October Review: 3M, Citi, Micron, Vonage, Yahoo, Caterpillar and Krispy Kreme
In the investing game, it is necessary to be introspective
In the investing game, it is necessary to be introspective, whether one is writing research, managing portfolios for a living, or is an individual investor. My firm thinks it is important for all writers of the 'Ville to review their ideas and see how the concepts are holding up. My firm's last review was in September. Here is our review of our past two month's Buzz and Banter insights.
3M (MMM), Citigroup (C) and Micron (MU)
October 4th: I wrote that MMM, C and MU were long squeeze ideas in my firm's work. Long squeezes are stocks with little short interest and weak price action – and are the kind of stocks we like to sell short. These stocks closed that day at $74.87, $51.03 and $18.08 with closes last night at $78.90, $50.61 and $13.57. The thesis is correct on C and MU and my firm continues to like the concept of the long squeezes on all three names.
October 11th: I wrote that VG could return to life from the land of underperformance due to high short interest. That day the stock closed at $7.08 and closed last night at $6.71. My firm remains watching for a turn around of the technicals.
October 18th: I wrote about YHOO being capable of a short squeeze .The stock closed on the 18th at $22.99 and last night it finished at $27.45. The thesis is correct and my firm continues to like this long idea.
October 20th: I wrote that CAT had been recommended in my firm's weekly long squeeze screen on Monday the 16th and the stock tumbled on the 20th with weak guidance. The stock closed on the 20th at $59.00 and last night closed at $59.20. The thesis was correct and we will remain with a negative position here as our technical rank remains weak.
Krispy Kreme (KKD)
October 31st: I wrote that KKD was a potential short squeeze and it was time to go long. The stock closed on the 31st at $10.75 and closed last night at $10.20. This idea has just begun to pan out and my firm still like its prospects in November.
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