Monday, February 26, 2007

Our CECE Trade Is Up 77%


Since we added CECO to the portfolio just a couple months ago, it has been our star performer. The stock just keeps surging and surging, and pretty soon I'm going to start wondering... do we have another Nutrisystem on our hands here?

Nutrisystem as you may recall was the most prolific stock of 2005, soaring more than 1,000% that year.

Okay, I'm jumping the gun... CECO is merely on track to generate about 900% this year, so, well...

Today, for example, the markets are getting hammered yet again. Our Cemtrex play is once again hovering just above the trailing stop. This is the dog of the portfolio, and along with SLUP, it makes me think we are banning pink sheet stocks from this portfolio from now on... Unless there is some absolutely overwhelming reason to reconsider this, pink sheets are getting the pink slip.

No more pink sheets here... Out you devils! GO TOWARD THE LIIIIIGHT... and away from goofy little stocks that rise and fall quicker than front-month options on KEPCO.

But back to CECO...

Today, the stock rose another 5% and is trading almost 78% above our entry price... rising from $9.75 to $17.75... So to protect our profits here... what we're going to do is this...

Adjust your trailing stop here... The new stop will be $13.31...

So if CECO closes at $13.31 or below on any given day, we're selling the next morning, no questions asked. For example, if the stock craters tomorrow and drops to $13.31, we'll still have booked a solid 53% gain. The idea would be to recapitalize your account and get ready for the next addition to the Evergreen Portfolio.

I don't like the market's action lately, so I'm keeping the powder dry until we get some directional momentum.

Meanwhile, we can be heartened that we have some good exposure to a company like Bunge, which shouldn't be nearly as vulnerable to a major stock pullback because it's a commodity stock. Not that I'm calling a bear claw here... But these markets are spooky, are they not? I don't like it when Bernanke's threatening a recession... Mysteriously laying off interest rates... And the market's going down... all at once.

I ain't no economist, but I do pride myself on a close kinship with the zeitgeist (whatever the hell that is). And if the herd's lining up the way I think it is... lemmings in their starting blocks pointing straight toward the cliff... we could be in for a summer of really crappy stock returns.

And traditionally commodities zig when stocks zag... so Bunge, well, Bunge could be our friend. And it's already up 18.6% for us in about 2 months.

New trade coming later this week... I'm looking for a safe portfolio stabilizer with some upside.

ANOTHER NOTE: I'm in talks with some nice and very mathematically advanced gentlemen who are developing a computerized trailing stop software system that we might implement or at least beta test with some of our Green Investments positions... I will keep you posted.

Good trading,


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