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Just a quick hit as a couple stocks in the Dog Pound were active yesterday.
First, and most important, investors saw a nice pop in Buffalo Wild Wings (BWLD, news, msgs) on better-than-expected earnings and a ratings upgrade. The stock rallied more than 22% before closing at $30.75, a gain of nearly 19%.
While I continue to think Buffalo Wild Wings is one of the best plays in the restaurant group and additional gains to the $36 area are likely over the next six months, I will place an order to sell all shares at today's open. That's due to the short-term nature of the Strategy Lab competition plus the short-term overbought condition of the stock.
I'll also exit my entire position in Clorox (CLX, news, msgs). The stock dropped sharply Wednesday to $53 -- its seventh consecutive decline -- and continues to make new lows. Not a good sign. Better to cut my losses and move on.
Finally, I want to exit my entire position in Bank of America (BAC, news, msgs). I love the stock for the long term and think that the acquisition of Countrywide Financial (CFC, news, msgs) will prove wise over time, but this week's numbers out of Countrywide were downright awful. As a result, the market is likely to approach Bank of America with caution for the foreseeable future. Consequently, I think the money can be put to better use elsewhere.
This will raise my cash holdings significantly -- leaving me positioned to take advantage of the next market dip.
That's all for now.
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