Wednesday, April 12, 2006


Trying to catch the PXPL knife

Up 0.6 percent today. Well, so much for my intention to refrain from starting new positions; I started a new position in Pixelplus (PXPL) this morning. Actually, I was hoping it would turn out to be a profitable daytrade. It looked that way initially: I picked up 1500 shares at $4.19 and immediately placed a sell order at $4.91. Unfortunately, although the stock did move up from my buy point, it didn't get much past $4.35 all day.

There's a lot to dislike about PXPL (lawsuit, accounting restatement, lowered guidance, etc.) However, the company's market cap is only slightly above its cash value. Moreover, the company still has some semblance of viable business and is operating in a hot sector. I'll give this one a bit more rope; I think there is a good chance the stock will rebound to $5 within the next few tradings days.

I forgot to mention yesterday that I sold TOA for a tiny profit. I still like the company but judging from the profusion of 'for sale' signs in my neighborhood, this is definitely not the right time to be owning a housing stock.

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