Next target hit on Sequenom (SQNM) as the masses are unhappy with the name. The stock has fallen to the 200 day moving average of $17 where the next limit buy order was waiting... taking it up from a 2.8% stake to 3.8%. That's 30% down in 4 sessions for what I perceive as little to no change in the story; although management is going to have a song and dance number to explain what happened. The next support that I like is in the $14s where I'll have a larger order waiting.
Again, I am doing a different strategy with this name than others that break support since I am looking to build a sizeable position - and without knowing the ultimate bottom I will be layering in slowly. Ultimately if the stock falls low enough I'd be willing to go about 6%+, so about 60-65% of that final position is built. Willing to sustain short term losses on this one for something I plan to hold for multiple years. If the market crumbles in the coming weeks we might get some of our lower target prices. SQNM reports next Wednesday so maybe that will help alleviate the mass hysteria...
A good example of a company I am not adding to is Thoratec (THOR) which is more of a typical strategy - this also been hit but is in no man's land and I don't see an obvious reason for the weakness (poor earnings coming? who knows) - but with that name I am sitting on my hands until I see a return to strength or more information. If this name gets to $23s I'll probably dip in since it has fallen so quickly.
Long Sequenom, Thoratec in fund; long Sequenom in personal account
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