Sell Solucorp.
It's unfortunate, but we must exit this position at at 63% loss. Here's why...
We knew we would be in for a bumpy ride with SLUP, but we couldn't have anticipated how long it would take for the accounting to come out on its past performance numbers... When the audited 2005 report came available not long ago, the company posted a $14.7 million loss for the year.
And 2006 has not become available yet, but it is becoming clear that this speculation has flopped. Best to cut our losses now rather than wait for this penny stock to become a half-penny stock, which seems to be where SLUP is headed.
We didn't use a trailing stop on this position because of the volatility in the shares and our initial belief in long-term prospects for the firm's dry scrubbing technology (designed to lower coal-fired plant pollution).
Call it: SLUP, dead at 2:29 p.m. EST, April 12, 2007.
James
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